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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09253

Wells Fargo Funds Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: June 30

Registrant is making a filing for 15 of its series:

Wells Fargo California Limited-Term Tax Free Fund, Wells Fargo California Tax-Free Fund, Wells Fargo Colorado Tax-Free Fund, Wells Fargo High Yield Municipal Bond Fund, Wells Fargo Intermediate Tax/AMT-Free Fund, Wells Fargo Minnesota Tax-Free Fund, Wells Fargo Municipal Bond Fund, Wells Fargo North Carolina Tax-Free Fund, Wells Fargo Pennsylvania Tax-Free Fund, Wells Fargo Short-Term Municipal Bond Fund, Wells Fargo Strategic Municipal Bond Fund, Wells Fargo Ultra Short-Term Municipal Income Fund, Wells Fargo Wisconsin Tax-Free Fund, Wells Fargo Alternative Strategies Fund and Wells Fargo Global Long/Short Fund.

Date of reporting period: December 31, 2015

ITEM 1. REPORT TO STOCKHOLDERS

Semi-Annual Report

December 31, 2015

Wells Fargo Global Long/Short Fund

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	7
Portfolio of investments	8
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	19
Other information	26
List of abbreviations	29

The views expressed and any forward-looking statements are as of December 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 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 Global Long/Short Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

During 2015, crosscurrents in the U.S. economy tended to restrain investor sentiment.

During the summer of 2015, the Hang Seng Index² in Hong Kong experienced a dramatic decline.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Global Long/Short Fund for the six-month period that ended December 31, 2015. Equity and bond investors endured concerns about slowing global growth; continued low prices for oil, natural gas, and other commodities; currency volatility; and the incidence of terrorist violence globally. The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net),¹ a proxy for stock performance in developed and emerging markets, recorded a -4.9% return in U.S. dollar terms for the period. Returns suffered substantially early in the period when investors grew concerned about debt negotiations between Greece and its lenders. Dramatic reversals in China’s stock market followed during the summer. Emerging markets suffered as global growth slowed and commodity prices declined. In the meantime, U.S., European, and Japanese economic performance trended positively but at an uneven pace. Investor concerns extended beyond the reporting period into the new year as global markets experienced sharp sell-offs in early January 2016.

Globally, central bank policies diverged.

In December 2015, the Federal Open Market Committee increased the federal funds rate from a near-zero range to a range of 0.25% to 0.50%, the first interest-rate increase since 2006. Because the U.S. Federal Reserve consistently had signaled that an interest-rate increase was in the offing, investment markets exhibited little reaction to the move, with most analysts expecting more definitive responses to be seen in 2016. During 2015, crosscurrents in the U.S. economy tended to restrain investor sentiment. Annualized gross domestic product growth fell to 2.0% in the third quarter and was estimated by the U.S. Bureau of Economic Analysis to be 0.7% in the fourth quarter. Corporate results, as measured by profits from current production, decreased in the third quarter, according to the U.S. Bureau of Economic Analysis. On a more positive note, unemployment remained at 5.0% in December 2015 as the economy added more than 290,000 jobs to nonfarm payrolls. In addition, consumer spending was generally steady as housing and automobile sales improved.

Meanwhile, central bank actions abroad diverged from those of the U.S. as policymakers sought to spark economic growth and address volatility in their markets. The European Central Bank continued to encourage lending and investing by making funds available to banks at low interest rates, imposing a negative interest rate on bank deposits, and purchasing bonds through its quantitative easing program. During the summer of 2015, the Hang Seng Index² in Hong Kong experienced a dramatic decline. In response, the People’s Bank of China demonstrated its willingness to intervene in its financial and currency markets to advance the government’s stated intention of integrating its economy more fully with its global counterparts: the U.S., Europe, and Japan. In Japan, while broad economic growth has not yet demonstrated sustainable improvement as a result of Prime Minister Shinzo Abe’s Abenomics policies, selected corporate results have shown progress as a result of operational and governance reforms under Abenomics. The trend holds the potential of yielding future investment opportunities in that country. Slowing economic growth in China reduced its importing activity, which, combined with continued low prices for many commodities, negatively affected China’s trading partners, particularly in developing markets that rely on commodity exports.

The S&P 500 Index³ recorded just a 0.2% return for the period. Bond investors in the U.S. fared somewhat better, with the Barclays U.S. Aggregate Bond Index⁴ returning 0.7% for the period. Developed European and Asian equity markets returned -6.0% for the period, as measured by the MSCI EAFE Index (Net).⁵ The

¹  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

Letter to shareholders (unaudited) Wells Fargo Global Long/Short Fund 3

MSCI Emerging Markets Index⁶ declined -17.4% during the same period as the effects of China’s slowdown were most severely felt in developing markets. International bond investors experienced losses, as measured by the Barclays Global Aggregate ex U.S. Dollar Bond Index,⁷ which recorded a -0.6% return. U.S. equity and bond investors in overseas markets saw the values of their investments fall as the U.S. dollar strengthened in comparison with other currencies.

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 Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Notice to shareholders

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

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

²  The Hang Seng Index is a free-float-adjusted market-capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong. You cannot invest directly in an index.

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

⁴  The Barclays U.S. Aggregate Bond Index is composed of the Barclays U.S. Government/Credit Index and the Barclays U.S. Mortgage-Backed Securities Index, and includes Treasury issues, agency issues, corporate bond issues, and mortgage-backed securities. You cannot invest directly in an index.

⁵  The MSCI Europe, Australasia, Far East (EAFE) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index (Net) consists of the following 21 developed markets country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. You cannot invest directly in an index.

⁶  The MSCI Emerging Markets Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging markets country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. You cannot invest directly in an index.

⁷  The Barclays Global Aggregate ex U.S. Dollar Bond Index tracks an international basket of government, corporate, agency, and mortgage-related bonds. You cannot invest directly in an index.

4 Wells Fargo Global Long/Short Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Dale A. Winner, CFA^®

Average annual total returns (%) as of December 31, 2015

		Including sales charge						Excluding sales charge						Expense ratios1 (%)
	Inception date	1 year			Since inception			1 year			Since inception			Gross		Net2
Class A (WGLAX)	11-28-2014		(7.98	)		(7.67	)		(2.35	)		(2.51	)		5.38		2.85
Class C (WGLCX)	11-28-2014		(4.09	)		(3.28	)		(3.09	)		(3.28	)		6.13		3.60
Administrator Class (WGLDX)	11-28-2014		–			–			(2.21	)		(2.39	)		5.30		2.75
Institutional Class (WGLSX)	11-28-2014		–			–			(2.05	)		(2.24	)		5.05		2.55
Global Long/Short Composite Index3	–		–			–			(0.96	)		(1.76	)		–		–
Barclays U.S. Treasury Bill 1-3 Month Total Return Index4	–		–			–			0.03			0.03			–		–
MSCI ACWI Index (Net)5	–		–			–			(2.36	)		(3.90	)		–		–

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, wellsfargofunds.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 5.75%. 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.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. A Fund that purchases options, which are a type of derivative, is subject to the risk of a loss of premiums without offsetting gains. A Fund that writes options receives a premium that may be small relative to the loss realized in the event of adverse changes in the value of the underlying instruments. Borrowing money to purchase securities or cover short positions magnifies losses and incurs expenses. Short selling is generally considered speculative, has the potential for unlimited loss, and may involve leverage. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 6.

Performance highlights (unaudited) Wells Fargo Global Long/Short Fund 5

Ten largest long position holdings (%) as of December 31,  20156
Mitsubishi UFJ Financial Group Incorporated	2.98
Compagnie de Saint-Gobain SA	2.68
Nomura Holdings Incorporated	2.33
Hitachi Limited	2.31
Vodafone Group plc	2.28
Yaskawa Electric Corporation	2.11
Alphabet Incorporated Class C	2.10
Akzo Nobel NV	2.08
American International Group Incorporated	2.02
Invesco Limited	1.95

Ten largest short position holdings (%) as of December 31,  20156
iShares MSCI EAFE ETF	(3.83)
Peugeot SA	(1.90)
Nestle SA	(1.46)
Wisdomtree Japan Hedged Equity ETF	(1.37)
iShares MSCI Switzerland Capped ETF	(1.12)
Unilever NV	(1.06)
iShares MSCI EMU ETF	(0.99)
Schindler Holding AG	(0.92)
iShares MSCI Thailand Capped ETF	(0.82)
Lawson Incorporated	(0.60)

Sector allocation as of December 31, 20157
	Gross exposure (%)	Net exposure (%)
Consumer Discretionary	10	8
Consumer Staples	7	3
Energy	4	6
Financials	34	47
Health Care	4	5
Industrials	17	20
Information Technology	14	20
Materials	5	7
Telecommunication Services	5	7
Other	0	(23)
	100	100

Country allocation as of December 31, 20157
	Gross exposure (%)	Net exposure (%)
Australia	0	1
Canada	3	4
China	8	10
France	4	2
Germany	9	13
Hong Kong	4	6
Ireland	1	1
Italy	7	10
Japan	29	36
Netherlands	3	2
Philippines	0	(1)
South Korea	2	2
Sweden	0	(1)
Switzerland	3	(1)
United Kingdom	11	17
United States	16	(1)
	100	100

Please see footnotes on page 6.

6 Wells Fargo Global Long/Short Fund Performance highlights (unaudited)

¹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.05% in acquired fund fees and expenses and 1.05% in dividend and interest expenses on securities sold short. 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.

²  The manager has contractually committed through October 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 1.75% for Class A, 2.50% for Class C, 1.65% for Administrator Class, and 1.45% for Institutional 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, prime broker fees, dividend and interest expenses on securities sold short, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The Global Long/Short Composite Index is weighted 50% in the MSCI ACWI Index (Net) (measures the equity market performance of developed and emerging markets) and 50% in the Barclays U.S. Treasury Bill 1-3 Month Total Return Index (tracks the performance and attributes of recently issued 1-3 month U.S. Treasury bills using Barclays’ monthly rebalancing conventions). You cannot invest directly in an index.

⁴  The Barclays U.S. Treasury Bill 1–3 Month Total Return Index includes all publicly issued zero-coupon U.S. Treasury bills that have a remaining maturity of less than three months and more than one, are rated investment grade, and have $250 million or more of outstanding face value. You cannot invest directly in an index.

⁵  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI Index (Net) consists of 46 country indexes comprising 23 developed and 23 emerging markets country indexes. The developed markets country indexes included are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The emerging markets country indexes included are Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

⁶  The ten largest long and short position 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.

Fund expenses (unaudited) Wells Fargo Global Long/Short Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	939.73	$	11.46		2.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,013.32	$	11.89		2.35	%
Class C
Actual	$	1,000.00	$	935.24	$	14.98		3.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,009.65	$	15.56		3.08	%
Administrator Class
Actual	$	1,000.00	$	940.16	$	10.88		2.23	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,013.93	$	11.29		2.23	%
Institutional Class
Actual	$	1,000.00	$	940.78	$	9.90		2.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.93	$	10.28		2.03	%

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

8 Wells Fargo Global Long/Short Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Common Stocks: 60.08%
Australia: 0.25%
BHP Billiton Limited (Materials, Metals & Mining)		1,947	$	25,065
Brazil: 0.05%
Cosan Limited Class A (Energy, Oil, Gas & Consumable Fuels)		1,386		5,114
Canada: 1.94%
Cameco Corporation (Energy, Oil, Gas & Consumable Fuels)		7,366		90,823
Lundin Mining Corporation (Materials, Metals & Mining) †		19,731		54,186
Valeant Pharmaceuticals International Incorporated (Health Care, Pharmaceuticals) †		499		50,723
				195,732
China: 4.10%
Biostime International Holdings Limited (Consumer Staples, Food Products)		32,000		65,557
Dongfeng Motor Group Company Limited H Shares (Consumer Discretionary, Automobiles)		80,000		105,977
Industrial & Commercial Bank of China Limited H Shares (Financials, Banks)		163,000		97,705
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health Care, Pharmaceuticals)		26,700		57,549
YY Incorporated (Information Technology, Internet Software & Services) †		1,377		86,021
				412,809
France: 2.68%
Compagnie de Saint-Gobain SA (Industrials, Building Products)		6,224		269,719
Germany: 5.34%
Hugo Boss AG (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		2,247		185,398
Metro AG (Consumer Staples, Food & Staples Retailing)		4,629		147,467
Rheinmetall AG (Industrials, Industrial Conglomerates)		671		44,603
Siemens AG (Industrials, Industrial Conglomerates)		1,655		160,114
				537,582
Hong Kong: 2.39%
China Everbright Limited (Financials, Capital Markets)		40,000		91,361
China Mobile Limited (Telecommunication Services, Wireless Telecommunication Services)		8,000		90,049
Xinyi Glass Holdings Limited (Consumer Discretionary, Auto Components)		102,000		59,602
				241,012
Ireland: 0.60%
King Digital Entertainment plc (Information Technology, Software)		3,355		59,987
Italy: 4.27%
Anima Holding SpA (Financials, Capital Markets)		6,061		52,349
Eni SpA (Energy, Oil, Gas & Consumable Fuels)		10,356		153,871
Intesa Sanpaolo SpA (Financials, Banks)		22,014		73,108
Prysmian SpA (Industrials, Electrical Equipment)		6,920		151,196
				430,524
Japan: 17.42%
Coca-Cola East Japan Company Limited (Consumer Staples, Beverages)		9,000		144,933
Daiwa House Industry Company Limited (Financials, Real Estate Management & Development) (b)		4,000		114,985

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Global Long/Short Fund 9

Security name			Shares		Value
Japan (continued)
Daiwa Securities Group Incorporated (Financials, Capital Markets)				28,000	$	171,183
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components) (b)				41,000		232,321
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks) (b)				48,500		300,421
Mitsui Fudosan Company Limited (Financials, Real Estate Management & Development) (b)				7,000		175,685
Nomura Holdings Incorporated (Financials, Capital Markets) (b)				42,100		234,499
Toyota Motor Corporation (Consumer Discretionary, Automobiles) (b)				1,600		98,526
West Holdings Corporation (Consumer Discretionary, Household Durables)				11,300		68,870
Yaskawa Electric Corporation (Information Technology, Electronic Equipment, Instruments & Components) (b)				15,600		212,264
						1,753,687
Netherlands: 2.08%
Akzo Nobel NV (Materials, Chemicals) (b)				3,128		209,009
South Korea: 0.88%
Hana Financial Group Incorporated (Financials, Banks)				4,449		88,904
Switzerland: 1.81%
ABB Limited (Industrials, Electrical Equipment)				4,672		83,825
Zurich Insurance Group AG (Financials, Insurance)				382		98,136
						181,961
United Kingdom: 6.47%
Capita plc (Industrials, Professional Services)				5,367		95,492
Man Group plc (Financials, Capital Markets)				31,991		82,297
Smiths Group plc (Industrials, Industrial Conglomerates)				12,262		169,570
United Business Media Limited (Consumer Discretionary, Media)				1,437		11,137
Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services)				70,899		229,909
Wolseley plc (Industrials, Trading Companies & Distributors) (b)				1,171		63,600
						652,005
United States: 9.80%
Agilent Technologies Incorporated (Health Care, Life Sciences Tools & Services) (b)				1,574		65,809
Alphabet Incorporated Class C (Information Technology, Internet Software & Services) †				279		211,728
American International Group Incorporated (Financials, Insurance) (b)				3,278		203,138
Coach Incorporated (Consumer Discretionary, Textiles, Apparel & Luxury Goods) (b)				3,364		110,104
Invesco Limited (Financials, Capital Markets)				5,855		196,025
KKR & Company LP (Financials, Capital Markets) (b)				4,417		68,861
Mead Johnson Nutrition Company (Consumer Staples, Food Products)				314		24,790
Merck & Company Incorporated (Health Care, Pharmaceuticals) (b)				1,087		57,415
QUALCOMM Incorporated (Information Technology, Communications Equipment) (b)				977		48,835
						986,705
Total Common Stocks (Cost $6,459,390)						6,049,815
	Expiration date
Participation Notes: 0.70%
China: 0.70%
HSBC Bank plc (Kweichow Moutai Company Limited Class A) (Consumer Staples, Beverages) †		9-2-2020		2,090		70,235
Total Participation Notes (Cost $53,236)						70,235

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

10 Wells Fargo Global Long/Short Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Yield			Shares			Value
Short-Term Investments: 36.90%
Investment Companies: 36.90%
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33	%		3,716,019		$	3,716,019
Total Short-Term Investments (Cost $3,716,019)								3,716,019
Securities Sold Short: (18.42%)
Common Stocks: (8.64%)
France: (1.90%)
Peugeot SA (Consumer Discretionary, Automobiles) †					(10,936	)		(191,696	)
Japan: (2.00%)
Isetan Mitsukoshi Holdings Limited (Consumer Discretionary, Multiline Retail)					(1,200	)		(15,649	)
Lawson Incorporated (Consumer Staples, Food & Staples Retailing)					(750	)		(60,878	)
Marubeni Corporation (Industrials, Industrial Conglomerates)					(10,700	)		(55,010	)
McDonalds Holdings Company (Consumer Discretionary, Hotels, Restaurants & Leisure)					(1,000	)		(21,747	)
Odakyu Electric Railway Company (Industrials, Road & Rail)					(2,000	)		(21,534	)
Takashimaya Company Limited (Consumer Discretionary, Multiline Retail)					(3,000	)		(27,016	)
								(201,834	)
Netherlands: (1.06%)
Unilever NV (Consumer Staples, Household Products)					(2,453	)		(106,912	)
Philippines: (0.25%)
Philippine Long Distance Telephone Company SP ADR (Telecommunication Services, Diversified Telecommunication Services)					(580	)		(24,795	)
Sweden: (0.45%)
Electrolux AB Series B (Consumer Discretionary, Household Durables)					(1,891	)		(45,625	)
Switzerland: (2.38%)
Nestle SA (Consumer Staples, Food Products)					(1,986	)		(147,431	)
Schindler Holding AG (Industrials, Machinery)					(553	)		(92,516	)
								(239,947	)
Thailand: (0.19%)
Charoen Pokphand Foods PCL (Consumer Staples, Food & Staples Retailing)					(37,300	)		(18,969	)
United States: (0.40%)
Eaton Vance Corporation (Financials, Diversified Financial Services)					(1,018	)		(33,014	)
Franklin Resources Incorporated (Financials, Capital Markets)					(208	)		(7,657	)
								(40,671	)
								(870,449	)
Exchange-Traded Funds: (9.78%)
United States: (9.78%)
iShares Europe ETF					(1,470	)		(58,962	)
iShares MSCI EAFE ETF					(6,562	)		(385,518	)
iShares MSCI EMU ETF					(2,850	)		(99,864	)

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Global Long/Short Fund 11

Security name	Shares			Value
United States (continued)
iShares MSCI Philippines ETF		(1,782	)	$	(60,125	)
iShares MSCI Singapore ETF		(4,502	)		(46,281	)
iShares MSCI Switzerland Capped ETF		(3,633	)		(112,768	)
iShares MSCI Thailand Capped ETF		(1,414	)		(82,917	)
WisdomTree Japan Hedged Equity ETF		(2,762	)		(138,321	)
					(984,756	)
Total Securities Sold Short (Proceeds $(1,961,528))					(1,855,205	)

Total investments in securities (excluding securities sold short) (Cost $10,228,645) *	97.68	%		9,836,069
Total securities sold short	(18.42	)		(1,855,205	)
Other assets and liabilities, net	20.74			2,088,331
Total net assets	100.00	%	$	10,069,195

† Non-income-earning security

(b) All or a portion of this security is segregated as collateral for securities sold short.

(l) The issuer of the security is an affiliated person 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 $10,245,754 and unrealized gains (losses) consists of:

Gross unrealized gains	$	424,332
Gross unrealized losses		(834,017	)
Net unrealized losses	$	(409,685	)

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

12 Wells Fargo Global Long/Short Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $6,512,626)	$	6,120,050
In affiliated securities, at value (cost $3,716,019)		3,716,019
Total investments, at value (cost $10,228,645)		9,836,069
Segregated cash for securities sold short		2,018,582
Foreign currency, at value (cost $6,189)		5,981
Receivable for investments sold		42,561
Receivable for dividends		10,207
Unrealized gains on forward foreign currency contracts		8,215
Receivable from manager		10,878
Prepaid expenses and other assets		45,137
Total assets		11,977,630
Liabilities
Dividends payable on securities sold short		287
Payable for investments purchased		11,236
Unrealized losses on forward foreign currency contracts		21,202
Payable for securities sold short, at value (proceeds $1,961,528)		1,855,205
Distribution fee payable		97
Administration fees payable		1,253
Accrued expenses and other liabilities		19,155
Total liabilities		1,908,435
Total net assets	$	10,069,195
NET ASSETS CONSIST OF
Paid-in capital	$	10,459,550
Accumulated net investment loss		(13,187	)
Accumulated net realized losses on investments		(77,497	)
Net unrealized losses on investments		(299,671	)
Total net assets	$	10,069,195
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	348,076
Shares outstanding – Class A1		36,224
Net asset value per share – Class A		$9.61
Maximum offering price per share – Class A2		$10.20
Net assets – Class C	$	138,622
Shares outstanding – Class C1		14,523
Net asset value per share – Class C		$9.54
Net assets – Administrator Class	$	97,362
Shares outstanding – Administrator Class1		10,114
Net asset value per share – Administrator Class		$9.63
Net assets – Institutional Class	$	9,485,135
Shares outstanding – Institutional Class1		984,750
Net asset value per share – Institutional Class		$9.63

¹ The Fund has an unlimited number of authorized shares.

² Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo Global Long/Short Fund 13

Investment income
Dividends (net of foreign withholding taxes of $3,926)	$	59,109
Income from affiliated securities		3,432
Total investment income		62,541
Expenses
Management fee		68,220
Administration fees
Class A		353
Class C		154
Administrator Class		66
Institutional Class		6,442
Shareholder servicing fees
Class A		420
Class C		183
Administrator Class		127
Distribution fee
Class C		550
Custody and accounting fees		13,063
Professional fees		28,605
Registration fees		46,515
Shareholder report expenses		14,301
Trustees’ fees and expenses		8,801
Dividends on securities sold short		17,289
Prime broker fees		13,323
Other fees and expenses		7,042
Total expenses		225,454
Less: Fee waivers and/or expense reimbursements		(117,375	)
Net expenses		108,079
Net investment loss		(45,538	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(105,152	)
Securities sold short		38,918
Forward foreign currency contract transactions		26,544
Written options		(25,240	)
Capital gain distributions from securities sold short		(6,143	)
Net realized losses on investments		(71,073	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(675,545	)
Securities sold short		146,675
Forward foreign currency contract transactions		15,825
Net change in unrealized gains (losses) on investments		(513,045	)
Net realized and unrealized gains (losses) on investments		(584,118	)
Net decrease in net assets resulting from operations	$	(629,656	)

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

14 Wells Fargo Global Long/Short Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 20151
Operations
Net investment loss				$	(45,538	)				$	(38,262	)
Net realized gains (losses) on investments					(71,073	)					192,602
Net change in unrealized gains (losses) on investments					(513,045	)					213,374
Net increase (decrease) in net assets resulting from operations					(629,656	)					367,714
Distributions to shareholders from
Net investment income
Class A					(499	)					0
Administrator Class					(76	)					0
Institutional Class					(23,095	)					0
Net realized gains
Class A					(3,385	)					0
Class C					(1,462	)					0
Administrator Class					(1,017	)					0
Institutional Class					(98,879	)					0
Total distributions to shareholders					(128,413	)					0
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		8,555			86,327			29,360			299,099
Class C		116			1,183			14,590			147,995
Administrator Class		0			0			10,965			110,000
Institutional Class		0			0			972,067			9,721,435
					87,510						10,278,529
Reinvestment of distributions
Class A		406			3,884			0			0
Class C		154			1,462			0			0
Administrator Class		114			1,093			0			0
Institutional Class		12,710			121,974			0			0
					128,413						0
Payment for shares redeemed
Class A		(1,274	)		(12,712	)		(823	)		(8,482	)
Class C		(337	)		(3,343	)		0			0
Administrator Class		0			0			(965	)		(10,106	)
Institutional Class		(27	)		(259	)		0			0
					(16,314	)					(18,588	)
Net increase in net assets resulting from capital share transactions					199,609						10,259,941
Total increase (decrease) in net assets					(558,460	)					10,627,655
Net assets
Beginning of period					10,627,655						0
End of period				$	10,069,195					$	10,627,655
Undistributed (accumulated) net investment income (loss)				$	(13,187	)				$	56,021

¹  For the period from November 28, 2014 (commencement of operations) to June 30, 2015

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

Financial highlights Wells Fargo Global Long/Short Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151
CLASS A
Net asset value, beginning of period		$10.35			$10.00
Net investment loss		(0.06	)		(0.04	)2
Net realized and unrealized gains (losses) on investments		(0.57	)		0.39
Total from investment operations		(0.63	)		0.35
Distributions to shareholders from
Net investment income		(0.01	)		0.00
Net realized gains		(0.10	)		0.00
Total distributions to shareholders		(0.11	)		0.00
Net asset value, end of period		$9.61			$10.35
Total return3		(6.03	)%		3.50	%
Ratios to average net assets (annualized)
Gross expenses		4.62	%4		5.40	%4
Net expenses		2.35	%4		2.96	%4
Net investment loss		(1.14	)%		(0.59	)%
Supplemental data
Portfolio turnover rate		19	%		62	%
Net assets, end of period (000s omitted)		$348			$295

¹  For the period from November 28, 2014 (commencement of class operations) to June 30, 2015.

²  Calculated based upon average shares outstanding.

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

⁴  Ratios include prime broker fees and dividend expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.60	%
Year ended June 30, 20151	1.21	%

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

16 Wells Fargo Global Long/Short Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151
CLASS C
Net asset value, beginning of period		$10.31			$10.00
Net investment loss		(0.10	)		(0.07	)
Net realized and unrealized gains (losses) on investments		(0.57	)		0.38
Total from investment operations		(0.67	)		0.31
Distributions to shareholders from
Net realized gains		(0.10	)		0.00
Net asset value, end of period		$9.54			$10.31
Total return2		(6.48	)%		3.10	%
Ratios to average net assets (annualized)
Gross expenses		5.34	%3		6.12	%3
Net expenses		3.08	%3		3.54	%3
Net investment loss		(1.89	)%		(1.64	)%
Supplemental data
Portfolio turnover rate		19	%		62	%
Net assets, end of period (000s omitted)		$139			$150

¹  For the period from November 28, 2014 (commencement of operations) to June 30, 2015

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Ratios include prime broker fees and dividend expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.58	%
Year ended June 30, 20151	1.04	%

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

Financial highlights Wells Fargo Global Long/Short Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30,  20151
ADMINISTRATOR CLASS
Net asset value, beginning of period		$10.36			$10.00
Net investment loss		(0.05	)		(0.05	)
Net realized and unrealized gains (losses) on investments		(0.57	)		0.41
Total from investment operations		(0.62	)		0.36
Distributions to shareholders from
Net investment income		(0.01	)		0.00
Net realized gains		(0.10	)		0.00
Total distributions to shareholders		(0.11	)		0.00
Net asset value, end of period		$9.63			$10.36
Total return2		(5.98	)%		3.60	%
Ratios to average net assets (annualized)
Gross expenses		4.52	%3		5.22	%3
Net expenses		2.23	%3		2.70	%3
Net investment loss		(1.04	)%		(0.83	)%
Supplemental data
Portfolio turnover rate		19	%		62	%
Net assets, end of period (000s omitted)		$97			$104

¹  For the period from November 28, 2014 (commencement of operations) to June 30, 2015

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

³  Ratios include prime broker fees and dividend expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.58	%
Year ended June 30, 20151	1.05	%

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

18 Wells Fargo Global Long/Short Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30,  20151
INSTITUTIONAL CLASS
Net asset value, beginning of period		$10.37			$10.00
Net investment loss		(0.04	)		(0.04	)
Net realized and unrealized gains (losses) on investments		(0.58	)		0.41
Total from investment operations		(0.62	)		0.37
Distributions to shareholders from
Net investment income		(0.02	)		0.00
Net realized gains		(0.10	)		0.00
Total distributions to shareholders		(0.12	)		0.00
Net asset value, end of period		$9.63			$10.37
Total return2		(5.92	)%		3.70	%
Ratios to average net assets (annualized)
Gross expenses		4.27	%3		4.95	%3
Net expenses		2.03	%3		2.49	%3
Net investment loss		(0.84	)%		(0.63	)%
Supplemental data
Portfolio turnover rate		19	%		62	%
Net assets, end of period (000s omitted)		$9,485			$10,078

¹  For the period from November 28, 2014 (commencement of operations) to June 30, 2015

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

³  Ratios include prime broker fees and dividend expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.58	%
Year ended June 30, 20151	1.04	%

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

Notes to financial statements (unaudited) Wells Fargo Global Long/Short 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 Global Long/Short 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).

Equity securities and options 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.

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

The values of securities 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.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On December 31, 2015, such fair value pricing was used in pricing foreign securities.

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. 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

20 Wells Fargo Global Long/Short Fund Notes to financial statements (unaudited)

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 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.

Forward foreign currency contracts

The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contract transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.

Options

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.

The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment, the value of which is subsequently adjusted based on the current market value of the option. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

Options traded on an exchange are regulated and terms of the options are standardized. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Short sales

The Fund may sell a security it does not own in anticipation of a decline in the market value of that security (short sale). When the Fund makes a short sale, it must borrow the security sold short and deliver it to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement.

Notes to financial statements (unaudited) Wells Fargo Global Long/Short Fund 21

The Fund records the proceeds as a liability which is marked-to-market daily based upon quotations from an independent pricing service or from brokers, which use prices provided by market makers, and any change in value is recorded as an unrealized gain or loss. Any interest or dividends accrued on such borrowed securities during the period of the loan are recorded as an expense on the Statement of Operations. To borrow the security, the Fund may be required to pay a premium, which would decrease the proceeds of the security sold. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the closing of a short sale if the market price at the closing is less than or greater than, respectively, the proceeds originally received. Until the short sale is closed or the borrowed security is replaced, the Fund maintains a segregated account of cash or liquid securities, the dollar value of which is at least equal to the market value of the security at the time of the short sale.

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.

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and 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 fiscal years since commencement of operations 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.

22 Wells Fargo Global Long/Short Fund Notes to financial statements (unaudited)

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Australia	$	0	$	25,065	$	0	$	25,065
Brazil		5,114		0		0		5,114
Canada		195,732		0		0		195,732
China		86,021		326,788		0		412,809
France		0		269,719		0		269,719
Germany		0		537,582		0		537,582
Hong Kong		0		241,012		0		241,012
Ireland		59,987		0		0		59,987
Italy		0		430,524		0		430,524
Japan		0		1,753,687		0		1,753,687
Netherlands		0		209,009		0		209,009
South Korea		0		88,904		0		88,904
Switzerland		0		181,961		0		181,961
United Kingdom		0		652,005		0		652,005
United States		986,705		0		0		986,705
Participation notes
China		0		70,235		0		70,235
Short-term investments
Investment companies		3,716,019		0		0		3,716,019
		5,049,578		4,786,491		0		9,836,069
Forward foreign currency contracts		0		8,215		0		8,215
Total assets	$	5,049,578	$	4,794,706	$	0	$	9,844,284
Liabilities
Securities sold short
Common stocks
France	$	191,696	$	0	$	0	$	191,696
Japan		201,834		0		0		201,834
Netherlands		106,912		0		0		106,912
Philippines		24,795		0		0		24,795
Sweden		45,625		0		0		45,625
Switzerland		239,947		0		0		239,947
Thailand		18,969		0		0		18,969
United States		40,671		0		0		40,671
Exchange-traded funds
United States		984,756		0		0		984,756
Forward foreign currency contracts		0		21,202		0		21,202
Total liabilities	$	1,855,205	$	21,202	$	0	$	1,876,407

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade 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 December 31, 2015, fair value pricing was used in pricing certain foreign securities and securities valued at $4,562,903 were transferred from Level 1 to Level 2. The Fund did not have any transfers into/out of Level 3.

Notes to financial statements (unaudited) Wells Fargo Global Long/Short Fund 23

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 1.30% and declining to 1.13% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 1.30% 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 1.00% and declining to 0.90% 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	0.21%
Administrator Class, Institutional Class	0.13

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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.75% for Class A shares, 2.50% for Class C shares, 1.65% for Administrator Class shares and 1.45% 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. Prime broker fees and dividend expense on securities sold short are excluded from the expense caps.

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 six months ended December 31, 2015, Funds Distributor received $72 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 Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

24 Wells Fargo Global Long/Short Fund Notes to financial statements (unaudited)

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $2,315,225 and $1,718,330 respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended December 31, 2015, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At December 31, 2015, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty	Contracts to receive		U.S. value at December 31, 2015		In exchange for U.S. $		Unrealized gains
2-29-2016	Morgan Stanley		269,000 EUR	$	292,734	$	285,899	$	6,835

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver		U.S. value at December 31, 2015		In exchange for U.S. $		Unrealized gains (losses)
2-29-2016	Morgan Stanley		65,042,000 JPY	$	541,748	$	531,792	$	(9,956	)
2-29-2016	Morgan Stanley		538,000 EUR		585,468		574,222		(11,246	)
3-16-2016	Morgan Stanley		90,000 EUR		97,983		99,363		1,380

The Fund had average contract amounts of $466,753 and $1,640,848 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended December 31, 2015.

During the six months ended December 31, 2015, the Fund entered into written options for economic hedging purposes.

During the six months ended December 31, 2015, the Fund had written call option activities as follows:

	Number of contracts			Premiums received
Options outstanding at June 30, 2015		0		$	0
Options written		20			4,391
Options expired		(20	)		(4,391	)
Options closed		0			0
Options exercised		0			0
Options outstanding at December 31, 2015		0		$	0

As of December 31, 2015, the Fund did not have any open written options. The Fund had an average of 11 written option contracts during the six months ended December 31, 2015.

During the six months ended December 31, 2015, the Fund entered into purchased options contracts for speculative purposes and had an average of 24 purchased options contracts.

The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the appropriate financial statements.

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, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, 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

Notes to financial statements (unaudited) Wells Fargo Global Long/Short Fund 25

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
Forward foreign currency contracts	Goldman Sachs	$8,215*	$	(8,215	)	$	0	$	0

* Amount represents net unrealized gains.

	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of liabilities
Forward foreign currency contracts	Goldman Sachs	$21,202**	$	(8,215	)	$	0	$	12,987

** Amount represents net unrealized losses.

7. BANK BORROWINGS

The Fund has an uncommitted credit facility to provide leverage for investment purposes or to meet unanticipated redemptions. The Fund’s borrowings under the Facility are charged at a rate to be determined at the time of the borrowing.

During the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

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.

26 Wells Fargo Global Long/Short Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available at each fiscal quarter end on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. As of each month end other than a month end that coincides with a fiscal quarter end, the Fund makes publicly available on the Fund’s website, on a one-month delayed basis (i) all portfolio holdings held long other than any put options on equity securities; (ii) portfolio holdings held short other than short positions in equity securities of single issuers; and (iii) the aggregate dollar value of equity securities of single issuers held short, and any put options on equity securities held long. In addition, top ten holdings information (excluding derivative positions and short 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 Global Long/Short 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Intiative 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 Global Long/Short Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012; 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.
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.

¹  Jeremy DePalma acts as Treasurer of 72 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 wellsfargofunds.com.

List of abbreviations Wells Fargo Global Long/Short Fund 29

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  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.

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398833 02-16 SA268/SAR268 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo
California Limited-Term Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	24
Statement of operations	25
Statement of changes in net assets	26
Financial highlights	27
Notes to financial statements	31
Other information	35
List of abbreviations	38

The views expressed and any forward-looking statements are as of December 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 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 California Limited-Term Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo California Limited-Term Tax-Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 3

bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo California Limited-Term Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and California individual income tax, consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Terry J. Goode

Adrian Van Poppel

Average annual total returns (%) as of December 31, 2015¹

		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 (SFCIX)	11-18-1992		(0.37	)		2.44		2.87		1.65		2.85		3.08		0.83		0.80
Class C (SFCCX)	8-30-2002		(0.11	)		2.08		2.32		0.89		2.08		2.32		1.58		1.55
Administrator Class (SCTIX)	9-6-1996		–			–		–		1.85		3.05		3.31		0.77		0.60
Institutional Class (SFCNX)	10-31-2014		–			–		–		1.95		3.07		3.32		0.50		0.50
Barclays Municipal Bond 1-5 Year Blend Index4	–									1.46		2.08		3.19		–		–
Barclays California Municipal 1-5 Year Blend Index5	–									1.49		2.21		3.25		–		–

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, wellsfargofunds.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 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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to California municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 5

Credit quality distribution (%) as of December 31, 2015⁶

Effective maturity distribution as of December 31, 2015⁷

¹  Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator 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.

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 October 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 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 Municipal Bond 1–5 Year Blend Index is the 1–5 Year Blend component of the Barclays Municipal Bond Index. The Barclays Municipal Bond Index is an unmanaged index composed of tax-exempt bonds with maturities between six and eight years and a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays California Municipal 1-5 Year Blend Index is the 1-5 Year Blend Component of the Barclays California Municipal Bond Index. You cannot invest directly in an index.

⁶  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.

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

6 Wells Fargo California Limited-Term Tax-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,014.35	$	4.05		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.11	$	4.06		0.80	%
Class C
Actual	$	1,000.00	$	1,010.54	$	7.83		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.86		1.55	%
Administrator Class
Actual	$	1,000.00	$	1,015.47	$	3.04		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,015.99	$	2.53		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.62	$	2.54		0.50	%

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—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 94.12%
California: 90.29%
ABAG Financial Authority For Nonprofit Corporations Children’s Hospital (Health Revenue)		4.25	%		12-1-2016	$	1,305,000	$	1,349,654
ABAG Financial Authority For Nonprofit Corporations Episcopal Senior Community (Housing Revenue)		5.00			7-1-2016		1,045,000		1,064,050
ABAG Financial Authority For Nonprofit Corporations Jackson Laboratory (Miscellaneous Revenue)		5.00			7-1-2019		730,000		816,534
ABAG Financial Authority For Nonprofit Corporations O’Connor Woods (Health Revenue)		4.00			1-1-2019		955,000		1,032,680
ABAG Financial Authority For Nonprofit Corporations Sharp Healthcare Series A (Health Revenue)		5.00			8-1-2019		500,000		567,410
Acalanes CA Union High School Refunding (GO Revenue) %%		5.00			8-1-2022		2,685,000		3,190,317
Adelanto CA School District CAB Series B (GO Revenue, National Insured) ¤		0.00			9-1-2018		1,800,000		1,619,424
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		3,000,000		2,809,170
Alameda County CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		4.00			12-1-2019		1,000,000		1,105,320
Alameda County CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		5.00			12-1-2021		1,000,000		1,194,880
Albany CA Limited Obligation Improvement Bond Act of 1915 (Miscellaneous Revenue, Ambac Insured)		4.75			9-2-2019		1,305,000		1,313,417
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured) ±		0.00			8-1-2017		155,000		161,285
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured) ±		0.00			8-1-2018		475,000		514,729
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured) ±		0.00			8-1-2020		1,605,000		1,870,483
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2016		305,000		303,789
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2018		3,245,000		3,131,717
Anaheim CA PFA Refunding Bond Series A (Miscellaneous Revenue)		5.00			5-1-2017		1,250,000		1,319,713
Anaheim CA Redevelopment Agency Merged Project Area Series A (Tax Revenue, AGM Insured)		4.50			2-1-2018		875,000		932,286
Antelope Valley CA Health Care District Series A (Health Revenue, AGM Insured)		5.20			1-1-2017		145,000		145,590
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2019		420,000		475,121
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2021		550,000		651,112
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2023		725,000		881,310
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series B (Transportation Revenue) ±		1.50			4-1-2047		14,000,000		14,089,320
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.02			4-1-2045		5,000,000		5,016,800
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.88			4-1-2047		10,500,000		10,643,955
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series E (Transportation Revenue) ±		2.00			4-1-2034		5,000,000		5,111,350
Brentwood CA Infrastructure Financing Authority Sub Series A (Miscellaneous Revenue, AGM Insured)		4.00			9-2-2017		3,825,000		3,985,191

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

8 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		3.00	%		9-2-2017	$	995,000	$	1,020,193
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		3.00			9-2-2018		1,030,000		1,067,121
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		4.00			9-2-2021		1,135,000		1,234,222
California (GO Revenue) ±		4.00			12-1-2027		9,015,000		9,419,142
California (GO Revenue, Ambac Insured)		5.00			10-1-2016		10,000		10,041
California (GO Revenue)		5.00			10-1-2021		6,795,000		8,145,914
California (Miscellaneous Revenue)		5.00			9-1-2022		2,240,000		2,730,784
California (GO Revenue)		5.00			11-1-2022		2,500,000		3,057,100
California (GO Revenue)		5.00			9-1-2023		10,730,000		13,209,918
California (GO Revenue)		5.00			10-1-2023		8,400,000		10,353,168
California (GO Revenue)		5.25			10-1-2022		2,750,000		3,401,640
California Communities Transportation Total Road Improvement Certificate of Participation Series B (Tax Revenue)		3.00			6-1-2016		370,000		373,426
California Communities Transportation Total Road Improvement Certificate of Participation Series B (Tax Revenue)		3.00			6-1-2017		380,000		388,539
California Communities Transportation Total Road Improvement Certificate of Participation Series B (Tax Revenue)		4.00			6-1-2018		390,000		412,222
California Community College Financing Authority Shasta-Tehama-Trinity Joint District Series A (Miscellaneous Revenue)		2.00			5-1-2016		420,000		421,987
California Community College Financing Authority Shasta-Tehama-Trinity Joint District Series A (Miscellaneous Revenue)		2.25			5-1-2017		435,000		441,351
California Department of Transportation Certificate of Participation Series A (Miscellaneous Revenue, National Insured)		5.25			3-1-2016		65,000		65,280
California Department of Veterans Affairs Home Purchase Series A (Housing Revenue)		3.50			12-1-2021		1,795,000		1,967,751
California DWR Central Valley Project Water System Series AM (Water & Sewer Revenue)		5.00			12-1-2017		6,595,000		7,136,120
California Economic Recovery Prerefunded Refunding Series A (Tax Revenue)		5.00			7-1-2018		2,950,000		3,246,033
California Economic Recovery Unrefunded Refunding Series A (Tax Revenue)		5.00			7-1-2018		850,000		935,298
California HFA AMT Home Mortgage Series E (Housing Revenue)		5.00			2-1-2042		65,000		67,183
California HFA AMT Home Mortgage Series G (Housing Revenue)		5.50			8-1-2042		380,000		389,983
California HFA AMT Home Mortgage Series H (Housing Revenue, FGIC Insured)		5.75			8-1-2030		225,000		226,017
California HFA AMT Home Mortgage Series J (Housing Revenue)		5.75			8-1-2047		65,000		65,294
California HFA Home Mortgage Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		3.75			8-1-2020		845,000		914,070
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.00			3-1-2019		700,000		783,335
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.25			3-1-2023		4,000,000		4,716,160
California HFFA Chinese Hospital Associates (Health Revenue)		5.00			6-1-2019		200,000		223,192
California HFFA Fellowship Homes Incorporated (Health Revenue)		5.00			9-1-2019		1,135,000		1,234,006
California HFFA Memorial Health Services Series A (Health Revenue)		5.00			10-1-2023		2,475,000		2,971,856
California HFFA St. Joseph Health System Series B (Health Revenue) ±		5.00			7-1-2043		2,000,000		2,145,300
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		6.00			8-1-2023		805,000		897,132
California Municipal Finance Authority Community Medical Centers Series A (Health Revenue)		5.00			2-1-2023		735,000		853,710
California Municipal Finance Authority Community Medical Centers Series A (Health Revenue)		5.00			2-1-2024		500,000		585,900

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Municipal Finance Authority Mobile Senior Caritas Affordable Housing Incorporated Projects Series A (Housing Revenue)		5.00	%		8-15-2019	$	515,000	$	575,373
California Municipal Finance Authority Northbay Healthcare Series A (Health Revenue) ±		2.11			11-1-2027		5,000,000		5,004,650
California Municipal Finance Authority Peppertree Senior Apartments Series A (Housing Revenue, FHLMC Insured, FHLMC LIQ)		2.80			6-1-2023		2,500,000		2,643,575
California Municipal Finance Authority Village Grove Apartments Series A (Housing Revenue, FHLMC Insured, FHLMC LIQ)		3.10			12-1-2021		1,000,000		1,067,420
California PCFA Republic Services Incorporated Project Series C (Resource Recovery Revenue) ±		5.25			6-1-2023		3,245,000		3,435,157
California PFOTER Series DCL-011 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.19			8-1-2027		10,000,000		10,000,000
California Public Works Board Capital Project Series G (Miscellaneous Revenue)		5.00			11-1-2020		3,000,000		3,511,650
California Public Works Board Department of Corrections & Rehabilitation Series A (Miscellaneous Revenue)		6.50			9-1-2017		835,000		888,223
California Public Works Board Department of Corrections & Rehabilitation Series C (Miscellaneous Revenue)		4.00			6-1-2018		1,625,000		1,741,431
California Public Works Board Department of Corrections & Rehabilitation Series C (Miscellaneous Revenue)		5.00			10-1-2022		1,500,000		1,825,575
California Public Works Board Judicial Council Projects Series B (Miscellaneous Revenue)		5.00			10-1-2022		500,000		608,525
California Public Works Board Judicial Council Projects Series D (Miscellaneous Revenue)		5.00			12-1-2019		1,000,000		1,144,120
California Public Works Board Refunding Department General Service Series F (Miscellaneous Revenue)		5.00			5-1-2023		1,595,000		1,947,463
California Public Works Board Various Capital Projects Series I (Miscellaneous Revenue)		5.00			11-1-2020		1,250,000		1,463,188
California Refunding Bond (GO Revenue)		5.25			9-1-2022		4,000,000		4,939,560
California School Finance Authority Coastal Academy Project Series A (Education Revenue)		5.00			10-1-2022		375,000		411,611
California Series E (GO Revenue) ±		1.00			12-1-2029		5,000,000		5,013,200
California Statewide CDA Adventist Health Systems West Series A (Health Revenue)		5.00			3-1-2024		800,000		951,232
California Statewide CDA American Baptist Homes West Series B-3 (Health Revenue)		2.10			10-1-2019		2,930,000		2,930,557
California Statewide CDA California Baptist University Series A (Education Revenue)		5.13			11-1-2023		715,000		766,358
California Statewide CDA California Baptist University Series B (Education Revenue)		3.50			11-1-2018		705,000		710,661
California Statewide CDA Episcopal Communities and Services (Health Revenue)		4.00			5-15-2017		450,000		467,964
California Statewide CDA Eskaton Properties Incorporated Obligated Group (Health Revenue)		4.00			11-15-2016		1,000,000		1,021,570
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.40			7-1-2040		1,000,000		1,000,000
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2021		500,000		580,120
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2022		395,000		463,335
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2023		500,000		590,355
California Statewide CDA Kaiser Permanente Series E (Health Revenue) ±		5.00			4-1-2044		4,000,000		4,224,200
California Statewide CDA Monterey Community Hospital (Health Revenue)		3.25			6-1-2016		415,000		419,478
California Statewide CDA Redwoods Project (Health Revenue)		3.00			11-15-2018		400,000		420,848
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2019		250,000		284,310
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2020		210,000		243,844
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2021		200,000		236,458

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

10 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00	%		11-15-2022	$	200,000	$	239,374
California Statewide CDA School Facilities (Education Revenue)		5.88			7-1-2022		1,970,000		2,173,737
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series B (Health Revenue)		3.00			8-1-2021		5,200,000		5,266,768
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series D (Health Revenue)		4.75			8-1-2020		2,000,000		2,006,700
California Statewide CDA St. Joseph Hospital (Health Revenue, AGM Insured)		4.50			7-1-2018		580,000		605,938
California Statewide CDA University of California Irvine East Campus Apartments Phase I (Housing Revenue)		5.00			5-15-2017		1,000,000		1,050,700
California Statewide CDA University of California Irvine East Campus Apartments Phase II (Education Revenue)		5.00			5-15-2016		380,000		386,205
California Statewide HFFA Casa Colina Obligated Group (Health Revenue)		4.00			4-1-2016		400,000		402,636
California Statewide HFFA Casa Colina Obligated Group (Health Revenue)		4.00			4-1-2017		400,000		410,444
California Statewide HFFA Casa Colina Obligated Group (Health Revenue)		5.00			4-1-2018		400,000		425,032
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2017		415,000		425,508
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2018		300,000		310,812
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2019		540,000		561,114
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2020		775,000		888,538
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2021		855,000		997,691
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2022		600,000		710,406
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2020		2,295,000		2,635,188
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2021		2,425,000		2,838,244
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2022		2,550,000		3,028,176
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2023		1,735,000		2,076,604
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue, AGM Insured)		5.00			8-1-2024		1,770,000		2,134,425
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series B (Tax Revenue)		4.00			8-1-2017		435,000		455,536
Central California Unified School District Refunding (GO Revenue, AGM Insured)		4.00			7-1-2020		500,000		558,130
Central California Unified School District Refunding (GO Revenue, AGM Insured)		5.00			7-1-2021		400,000		474,696
Central California Unified School District Refunding (GO Revenue, AGM Insured)		5.00			7-1-2022		750,000		906,848
Centralia CA School District (GO Revenue, AGM Insured)		4.00			8-1-2018		375,000		401,970
Chino CA PFA Local Agency Series A (Tax Revenue, AGM Insured)		5.00			9-1-2022		1,830,000		2,159,309
Chino CA PFA Local Agency Series A (Tax Revenue, AGM Insured)		5.00			9-1-2024		660,000		793,327
Chula Vista CA Certificate of Participation Refunding Bond Police Facility Project (Miscellaneous Revenue)		5.00			10-1-2021		720,000		841,867
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2020		2,455,000		2,742,014
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2021		2,230,000		2,523,156
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2022		1,000,000		1,142,620
Colton CA PFA Series A (Utilities Revenue)		4.00			4-1-2019		415,000		451,093
Commerce CA RDA CAB Project #1 (Tax Revenue) ¤		0.00			8-1-2021		2,110,000		1,609,445
Compton CA Community College District (GO Revenue)		5.00			7-1-2017		1,225,000		1,289,864
Compton CA Solid Waste Management Facilities (Resource Recovery Revenue)		4.80			8-1-2020		115,000		114,667
Compton CA Tax and RAN (GO Revenue)		2.20			6-1-2016		5,000,000		4,999,450

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Compton CA Unified School District CAB Election of 2002 Series D (GO Revenue, Ambac Insured) ¤		0.00	%		6-1-2017	$	3,075,000	$	3,017,713
Corcoran CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured) ±		2.70			12-1-2039		4,500,000		4,518,000
Corona Norco CA Unified School District Junior Lien Series B (Tax Revenue)		2.50			9-1-2016		445,000		448,662
Cotati-Rohnert Park CA Unified School District Series B (GO Revenue, AGM Insured)		5.00			8-1-2020		2,275,000		2,630,105
Culver City CA Redevelopment Agency CAB Tax Allocation Series A (Tax Revenue) ¤		0.00			11-1-2019		2,575,000		2,328,083
Cypress CA Elementary School District (Miscellaneous Revenue)		2.00			5-1-2017		335,000		339,352
Cypress CA Elementary School District (Miscellaneous Revenue)		2.25			5-1-2018		455,000		464,869
Delano CA Certificate of Participation Delano Regional Medical Center (Health Revenue)		4.00			1-1-2017		1,305,000		1,338,317
Delano CA Financing Authority Police Station Project Series A (Miscellaneous Revenue)		4.00			12-1-2016		1,040,000		1,068,434
Desert Sands CA Unified School District Certification of Participation (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2024		1,500,000		1,812,780
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			9-1-2019		210,000		228,341
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2021		250,000		294,135
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2022		250,000		298,535
Dixon CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2021		1,210,000		1,436,004
Dixon CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2022		1,285,000		1,550,648
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2016		460,000		465,621
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2017		475,000		484,077
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2018		485,000		496,621
El Cerrito CA Redevelopment Agency Tax Allocation Series A (Tax Revenue, National Insured)		5.00			7-1-2019		465,000		465,818
El Dorado CA Community Facilities District #19-1 (Tax Revenue)		4.00			9-1-2018		1,000,000		1,066,520
El Dorado CA Community Facilities District #92-1 (Tax Revenue)		4.00			9-1-2017		1,135,000		1,184,565
El Monte CA Union High School Refunding (GO Revenue) %%		5.00			6-1-2021		1,315,000		1,522,823
Encinitas CA Community Facilities District Ranch Public Improvements Project (Tax Revenue)		4.00			9-1-2017		1,180,000		1,234,799
Escondido CA Union High School District CAB (GO Revenue, National Insured) ¤		0.00			5-1-2016		3,335,000		3,326,029
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2020		1,000,000		1,156,860
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2021		3,170,000		3,735,718
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2022		2,395,000		2,856,493
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2023		1,025,000		1,233,967
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2019		1,000,000		1,115,650
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2020		1,000,000		1,137,450
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2021		1,250,000		1,444,838
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2022		1,250,000		1,465,313
Foothill-Eastern CA Transportation Corridor Agency Series B1 (Transportation Revenue) ±		5.00			1-15-2053		8,750,000		9,197,825
Fowler CA Unified School District School Facilities Improvement District #1 (GO Revenue, National Insured)		5.20			7-1-2020		1,520,000		1,622,874
Fremont CA Community Facilities District (Tax Revenue)		5.00			9-1-2024		1,000,000		1,169,590

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

12 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Fresno County CA Financing Authority Lease Series A (Miscellaneous Revenue, AGM Insured)		3.00	%		8-1-2019	$	970,000	$	1,022,884
Fullerton CA Community Facilities District (Tax Revenue)		3.50			9-1-2017		565,000		585,035
Fullerton CA Community Facilities District (Tax Revenue)		4.00			9-1-2018		610,000		649,260
Fullerton CA Community Facilities District (Tax Revenue)		4.00			9-1-2019		665,000		720,109
Fullerton CA School District Financing Authority Series A (Tax Revenue, AGM Insured)		4.00			9-1-2018		400,000		426,608
Fullerton CA School District Financing Authority Series A (Tax Revenue, AGM Insured)		3.00			9-1-2017		450,000		463,064
Garden Grove CA CDA Community Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		770,000		872,133
Garden Grove CA CDA Community Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2022		3,015,000		3,625,025
Goleta CA Water District Certificate of Participation Series A (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2019		125,000		143,084
Goleta CA Water District Certificate of Participation Series A (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2020		140,000		164,009
Grossmont CA Deutsche Bank SPEAR/LIFER Trust Series DBE 649 (GO Revenue, National Insured, Deutsche Bank LIQ) 144Aø		0.21			6-1-2031		2,000,000		2,000,000
Hawthorne CA School District CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2016		155,000		154,039
Hawthorne CA School District CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2017		165,000		161,187
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2016		300,000		302,955
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2017		705,000		723,690
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2018		725,000		752,521
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2019		750,000		786,135
Hayward CA Unified School District Certificate of Participation (GO Revenue, AGM Insured)		5.00			8-1-2022		500,000		594,410
Hayward CA Unified School District Certificate of Participation (GO Revenue, AGM Insured)		5.00			8-1-2023		805,000		967,755
Hemet CA Unified School District Certificate of Participation (Miscellaneous Revenue) ±		0.66			10-1-2036		4,905,000		4,904,460
Huntington Beach CA City School District Election of 2002 (GO Revenue)		4.00			8-1-2019		2,875,000		3,168,020
Huntington Beach CA City School District Election of 2002 (GO Revenue)		4.00			8-1-2021		505,000		575,937
Huntington Beach CA City School District Election of 2002 (GO Revenue)		5.00			8-1-2020		3,150,000		3,676,995
Imperial Beach CA RDA Palm Avenue Commercial Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2020		775,000		849,950
Imperial CA PFA Wastewater Facility (Water & Sewer Revenue)		4.00			10-15-2016		265,000		271,315
Inglewood CA PFA (Miscellaneous Revenue)		5.00			8-1-2016		1,000,000		1,024,210
Inland Valley CA Development Agency Series C (Tax Revenue) ±		4.50			3-1-2041		3,000,000		3,021,180
Irvine CA Limited Obligation Improvement Bonds Reassessment District #12-1 (Miscellaneous Revenue)		4.00			9-2-2018		1,325,000		1,417,657
Irvine CA Limited Obligation Improvement Bonds Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2023		800,000		932,696
Irvine CA Limited Obligation Improvement Bonds Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2024		850,000		996,600
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2020		320,000		369,283
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2021		340,000		400,622

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00	%		7-15-2022	$	365,000	$	437,288
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2023		375,000		456,795
Jurupa CA PFA Series A (Tax Revenue)		5.00			9-1-2020		550,000		627,446
Keyes CA Unified School District CAB (GO Revenue, National Insured) ¤		0.00			8-1-2016		155,000		153,665
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2019		950,000		1,077,243
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2020		1,045,000		1,215,262
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2021		805,000		956,429
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2019		1,150,000		1,293,037
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2020		1,045,000		1,196,180
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2021		565,000		670,005
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2022		615,000		738,234
Lake Elsinore CA School Financing Authority (Tax Revenue)		3.00			9-1-2016		1,420,000		1,432,950
Lee Lake CA Public Financing Authority Senior Lien Series A (Tax Revenue)		4.00			9-1-2017		1,620,000		1,690,745
Los Alamitos CA Unified School BAN School Facilities Improvement (GO Revenue) ¤		0.00			9-1-2016		1,000,000		996,670
Los Angeles CA Convention & Exhibit Center Authority Series A (Miscellaneous Revenue)		5.00			8-15-2020		2,000,000		2,209,000
Los Angeles CA Municipal Improvement Corporation Series A (Miscellaneous Revenue)		5.00			3-1-2022		3,000,000		3,580,860
Los Angeles CA Municipal Improvement Corporation Series A (Miscellaneous Revenue)		5.00			5-1-2023		475,000		577,049
Los Angeles CA Municipal Improvement Corporation Series B (Miscellaneous Revenue)		5.00			5-1-2021		300,000		353,289
Los Angeles CA Municipal Improvement Corporation Series B (Miscellaneous Revenue)		5.00			5-1-2022		350,000		420,161
Los Angeles CA Municipal Improvement Corporation Series B (Miscellaneous Revenue)		5.00			5-1-2023		350,000		425,194
Los Angeles CA Unified School District Certificate of Participation Headquarters Building Projects Series B (Miscellaneous Revenue)		5.00			10-1-2025		1,875,000		2,237,288
Los Angeles CA Unified School District Election of 2004 Series F (GO Revenue, FGIC Insured)		5.00			7-1-2020		2,500,000		2,557,900
Los Angeles CA Unified School District Refunding Bond Series D (GO Revenue)		5.00			7-1-2023		6,180,000		7,625,255
Los Angeles County CA Capital Asset Leasing Corporation Series B (Miscellaneous Revenue, Ambac Insured)		6.00			12-1-2016		3,285,000		3,444,290
Los Angeles County CA Certificate of Participation CAB Disney Package Project (Miscellaneous Revenue) ¤		0.00			3-1-2017		675,000		668,075
Los Angeles County CA Community Facilities District #5 Rowland Heights Area (Tax Revenue, AGM Insured)		5.00			9-1-2019		615,000		619,828
Los Angeles County CA Metropolitan Transportation Authority Series A (Tax Revenue)		5.00			7-1-2017		7,880,000		8,392,042
Los Angeles County CA Public Works Financing Authority Master Project Series B (Miscellaneous Revenue, National Insured)		5.00			9-1-2018		400,000		412,188
Los Angeles County CA Public Works Multiple Capital Projects II (Miscellaneous Revenue)		5.00			8-1-2020		500,000		580,600
Los Angeles County CA Redevelopment Refunding Authority Hollywood Redevelopment Project (Tax Revenue)		5.00			7-1-2019		1,780,000		2,011,151
Los Angeles County CA Redevelopment Refunding Authority Series D (Tax Revenue)		5.00			9-1-2018		2,570,000		2,820,241
Los Angeles County CA Redevelopment Refunding Authority Series D (Tax Revenue)		5.00			9-1-2019		2,545,000		2,861,547
Los Angeles County CA Regional Financing Authority MonteCedro Incorporated Project (Health Revenue)		3.00			11-15-2021		2,750,000		2,755,610
Los Angeles County CA Schools Regionalized Business Services Corporation Series A (Miscellaneous Revenue, AGM Insured)		3.00			9-1-2017		595,000		612,273
Los Angeles County CA Schools Regionalized Business Services Corporation Series B (Miscellaneous Revenue, National Insured)		5.00			6-1-2016		1,000,000		1,017,970
Los Angeles County CA Schools Regionalized Business Services Corporation Series B (Miscellaneous Revenue, National Insured)		5.00			6-1-2017		1,010,000		1,065,873
Lynwood CA Unified School District BAN Series A (GO Revenue)		5.00			8-1-2017		3,000,000		3,195,840

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

14 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Mendocino County CA Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		3.25	%		6-1-2018	$	1,115,000	$	1,171,363
Mendocino County CA Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2017		1,085,000		1,118,342
Merced CA Union High School CAB Series A (GO Revenue, National Insured) ¤		0.00			8-1-2019		2,190,000		2,052,337
Merrill Lynch PFOTER Series PT-4211 (GO Revenue, Dexia Credit Local SPA) 144Aø		0.20			2-1-2025		7,790,000		7,790,000
Modesto CA Community Facilities District #2004-1 Village One #2 (Tax Revenue)		4.00			9-1-2018		595,000		634,579
Modesto CA Community Facilities District #2004-1 Village One #2 (Tax Revenue)		4.50			9-1-2019		605,000		665,851
Modesto CA Irrigation District Electric Refunding Bond Series A (Utilities Revenue)		5.00			7-1-2020		500,000		581,800
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2016		725,000		739,297
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2017		755,000		790,319
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2018		785,000		836,111
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2019		815,000		882,441
Montclair CA PFA Public Facilities Projects (Miscellaneous Revenue, AGM Insured)		4.00			10-1-2017		500,000		525,185
Mountain View Whisman CA Refunding (GO Revenue) %%		5.00			9-1-2019		1,000,000		1,110,410
Mountain View Whisman CA Refunding (GO Revenue) %%		5.00			9-1-2020		1,600,000		1,820,672
Murrieta CA PFA (Tax Revenue)		5.00			9-1-2017		870,000		923,870
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2017		955,000		989,647
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2018		1,025,000		1,077,398
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2019		1,000,000		1,064,480
Newhall CA School District BAN School Facilities Improvement (GO Revenue) ¤		0.00			8-1-2017		9,000,000		8,889,660
Newhall CA School District CAB BAN (Miscellaneous Revenue) ¤		0.00			8-1-2018		14,680,000		14,281,438
North City CA West School Facilities Financing Authority Series C (Tax Revenue, Ambac Insured)		5.00			9-1-2018		1,125,000		1,226,689
Norwalk CA Community Facilities Financing Series A (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2019		280,000		302,772
Norwalk CA Community Facilities Financing Series A (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2020		350,000		383,849
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2018		610,000		650,156
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2019		625,000		675,831
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2020		650,000		712,862
Oak Valley CA Hospital District Refunding (GO Revenue)		4.00			7-1-2020		500,000		548,595
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2021		950,000		1,107,178
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2022		750,000		885,518
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2023		755,000		896,140
Oakland CA Joint Powers Financing Authority Series A1 (Miscellaneous Revenue, AGC Insured)		5.25			1-1-2017		1,885,000		1,970,315
Oakland CA Redevelopment Agency Refunding Sub Housing Set-Aside Series A (Tax Revenue, Ambac Insured)		5.00			9-1-2018		2,000,000		2,059,420
Oakland CA Successor Agency Refunding Sub Lien Central District Redevelopment Project (Tax Revenue)		4.00			9-1-2018		3,215,000		3,444,037
Oakland CA Unified School District Alameda County Election of 2006 Series A (GO Revenue)		3.00			8-1-2016		540,000		546,923
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2016		3,425,000		3,508,673
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2017		2,250,000		2,379,105
Oakland CA Unified School District Alameda County Election of 2012 Series A (GO Revenue)		5.00			8-1-2022		750,000		875,955

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Oakland CA Unified School District Alameda County Election of 2012 Series A (GO Revenue)		5.00	%		8-1-2024	$	600,000	$	713,898
Orange County CA Community Facilities #2015-1 Esencia Village Series A (Tax Revenue)		5.00			8-15-2023		375,000		438,356
Orange County CA Community Facilities #2015-1 Esencia Village Series A (Tax Revenue)		5.00			8-15-2025		335,000		396,908
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2018		200,000		220,326
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2019		1,085,000		1,228,394
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			3-1-2020		1,110,000		1,265,145
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2020		1,140,000		1,313,588
Orange Cove CA Irrigation District (Water & Sewer Revenue)		3.15			2-1-2019		660,000		660,462
Oxnard CA Financing Authority Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			6-1-2021		735,000		855,452
Oxnard CA Harbor District Series A (Airport Revenue)		5.00			8-1-2018		2,275,000		2,466,123
Pacifica CA Certificate of Participation City of Pacifica Financing Authority (Miscellaneous Revenue, Ambac Insured)		4.50			1-1-2016		365,000		365,000
Palm Springs CA Financing Authority Convention Center Project Series A (Miscellaneous Revenue)		3.00			11-1-2017		1,280,000		1,319,821
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		2.50			9-2-2016		330,000		333,346
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		3.00			9-2-2018		415,000		429,517
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		4.00			9-2-2021		450,000		494,442
Palo Verde CA Unified School District FlexFund Program (Education Revenue)		4.80			9-1-2027		760,184		821,995
Palomar CA Palomar County CAB Election of 2006 Series B (GO Revenue) ¤		0.00			8-1-2016		250,000		249,135
Palomar CA Palomar County CAB Election of 2006 Series B (GO Revenue) ¤		0.00			8-1-2017		880,000		866,158
Palomar Pomerado CA Health System CAB (GO Revenue, National Insured) ¤		0.00			8-1-2017		2,000,000		1,962,400
Perris CA Community Facilities District Refunding #01-2 Series A (Tax Revenue)		2.00			9-1-2016		635,000		638,067
Perris CA Community Facilities District Refunding #01-2 Series A (Tax Revenue)		2.00			9-1-2017		670,000		671,246
Pioneers CA Memorial Healthcare District (GO Revenue)		4.00			10-1-2017		810,000		844,757
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2021		1,885,000		2,217,005
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2022		1,305,000		1,556,460
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2023		780,000		940,485
Placentia CA Redevelopment Agency Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2019		580,000		629,863
Placentia CA Redevelopment Agency Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		600,000		685,704
Pomona CA Public Financing Authority Unrefunded Balance Merfed Redevelopment - Series AH (Tax Revenue, Ambac Insured)		5.25			2-1-2018		725,000		727,342
Pomona Valley CA Educational Joint Powers Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2016		805,000		820,520
Pomona Valley CA Educational Joint Powers Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2017		1,635,000		1,707,790
Poway CA Unified School District PFA (Tax Revenue)		3.00			9-15-2017		625,000		642,350
Poway CA Unified School District PFA (Tax Revenue)		3.00			9-15-2018		755,000		784,181
Poway CA Unified School District PFA (Tax Revenue)		4.00			9-15-2020		335,000		367,418
Poway CA Unified School District PFA (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2020		300,000		330,918

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

16 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Poway CA Unified School District PFA (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00	%		10-1-2021	$	185,000	$	205,850
Poway CA Unified School District PFA Series B (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2024		1,120,000		1,337,224
Poway CA Unified School District PFA Series B (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2025		775,000		933,294
Poway CA Unified School District Special Community Facilities District #6-4S Ranch (Tax Revenue)		4.00			9-1-2017		500,000		521,835
Poway CA Unified School District Special Community Facilities District #6-4S Ranch (Tax Revenue)		4.00			9-1-2018		450,000		478,962
Rancho Santa Fe CA Community Services District Superior Lien Series A (Tax Revenue)		3.50			9-1-2016		725,000		737,811
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2016		225,000		224,132
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2018		345,000		331,721
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2020		460,000		421,696
Riverside CA Community College District Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2020		535,000		494,030
Riverside CA PFA Local Measure A Certificate of Participation Riverside Pavement Rehabilitation Project (Tax Revenue, AGM Insured)		5.00			6-1-2023		845,000		1,000,117
Riverside CA Unified School District Financing Authority Superior Lien Series A (Miscellaneous Revenue)		4.00			9-1-2018		1,735,000		1,846,665
Riverside County CA Asset Leasing Corporation County Administrative Center Refunding Project (Miscellaneous Revenue)		4.00			11-1-2016		640,000		658,086
Riverside County CA Asset Leasing Corporation County Administrative Center Refunding Project (Miscellaneous Revenue)		4.00			11-1-2017		490,000		516,994
Riverside County CA Asset Leasing Corporation Riverside Hospital Project (Miscellaneous Revenue, National Insured) ¤		0.00			6-1-2016		2,395,000		2,386,282
Riverside County CA Asset Leasing Corporation Riverside Hospital Project (Miscellaneous Revenue, National Insured) ¤		0.00			6-1-2019		1,000,000		937,960
Riverside County CA PFA Indian Wells Project Series A (Tax Revenue, AGM Insured)		5.00			9-1-2020		1,610,000		1,864,847
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		4.00			5-1-2018		810,000		860,034
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		4.00			5-1-2020		795,000		870,954
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		5.00			5-1-2019		840,000		936,390
Robla CA School District Series B (GO Revenue, National Insured) ¤		0.00			8-1-2018		480,000		457,622
Romoland CA School District Community Facilities District #2004-1 (Tax Revenue)		4.00			9-1-2019		850,000		913,954
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		4.00			9-1-2019		875,000		934,413
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		5.00			9-1-2020		1,050,000		1,180,158
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		5.00			9-1-2021		500,000		571,510
Sacramento CA City Financing Refunding Master Lease Program Facilities (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2022		800,000		961,488
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2019		1,050,000		1,167,600
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2020		1,185,000		1,350,627
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2021		830,000		961,812
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2022		775,000		914,027

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 17

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00	%		3-1-2023	$	815,000	$	972,507
Sacramento CA Regional Transportation District Farebox Revenue (Transportation Revenue)		5.00			3-1-2019		500,000		553,970
Sacramento County CA Certificate Prerefunded Public Facilities Projects (Miscellaneous Revenue, Ambac Insured)		4.50			2-1-2016		155,000		155,550
Sacramento County CA Certificate Unrefunded Balance Public Facilities Projects (Miscellaneous Revenue, Ambac Insured)		4.50			2-1-2016		285,000		285,932
Salinas CA Union High School District CAB (GO Revenue) ¤		0.00			8-1-2020		5,000,000		4,583,000
San Bernardino County CA Certificate of Participation Arrowhead Project Series A (Miscellaneous Revenue)		5.50			8-1-2020		1,000,000		1,144,510
San Bernardino County CA Certificate of Participation Justice Center Airport Improvements (Miscellaneous Revenue, National Insured)		5.00			7-1-2016		430,000		437,839
San Bernardino County CA Certificate of Participation Medical Centre Financing Project (Miscellaneous Revenue, National Insured)		5.50			8-1-2017		590,000		613,523
San Buenaventura CA Community Mental Health System (Health Revenue)		6.00			12-1-2019		2,000,000		2,261,040
San Buenaventura CA Community Mental Health System (Health Revenue)		6.50			12-1-2021		2,585,000		3,101,405
San Diego CA Community Facilities District 3 (Tax Revenue)		5.00			9-1-2016		415,000		426,541
San Diego CA PFFA Ballpark Series A (Miscellaneous Revenue, Ambac Insured)		5.00			2-15-2016		1,825,000		1,835,932
San Diego CA RDA CAB Tax Allocation Center Series A (Tax Revenue, AGM Insured) ¤		0.00			9-1-2018		635,000		607,663
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		4.00			9-1-2016		380,000		388,166
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		4.50			9-1-2017		345,000		363,527
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		3.00			8-1-2016		400,000		405,352
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		3.00			8-1-2017		205,000		210,336
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		4.00			8-1-2017		885,000		922,250
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		5.00			8-1-2018		500,000		546,010
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		5.00			8-1-2019		555,000		619,669
San Francisco CA City & County RDFA Mission Bay North Redevelopment Series C (Tax Revenue)		4.50			8-1-2016		310,000		316,805
San Francisco CA City & County RDFA Mission Bay South Redevelopment Series A (Tax Revenue)		5.00			8-1-2020		500,000		567,875
San Francisco CA City & County RDFA Mission Bay South Redevelopment Series A (Tax Revenue)		5.00			8-1-2022		375,000		435,034
San Francisco CA City & County RDFA San Francisco Redevelopment Project Series B (Tax Revenue, National Insured)		5.25			8-1-2018		2,000,000		2,017,540
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2021		275,000		320,048
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2022		500,000		589,105
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2023		1,000,000		1,188,230
San Joaquin Hills County CA Transportation Corridor Agency Series A (Transportation Revenue)		5.00			1-15-2017		1,000,000		1,044,330
San Jose CA Airport Series A (Airport Revenue, Ambac Insured)		5.50			3-1-2018		4,350,000		4,738,412
San Jose CA Airport Series A (Airport Revenue, AGM/Ambac Insured)		5.50			3-1-2019		5,220,000		5,493,528
San Jose CA Convention Center Expansion & Renovation Project (Tax Revenue)		5.25			5-1-2023		1,465,000		1,708,483
San Jose CA Libraries & Parks Project (GO Revenue)		5.00			9-1-2017		715,000		717,910
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		4.36			8-1-2016		400,000		401,308

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

18 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		4.54	%		8-1-2018	$	1,035,000	$	1,038,519
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		5.00			8-1-2017		2,000,000		2,007,860
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		5.25			8-1-2019		1,125,000		1,129,601
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A-1 (Tax Revenue)		5.00			8-1-2022		800,000		901,544
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series D (Tax Revenue, Ambac Insured)		5.00			8-1-2021		2,635,000		2,786,592
San Jose CA Union Elementary School District Series B (GO Revenue)		3.00			9-1-2017		1,000,000		1,037,180
San Luis & Delta-Mendota CA Water Authority Delta Habitat Conservation & Conveyance Program Development Project Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2019		100,000		110,663
San Luis & Delta-Mendota CA Water Authority Delta Habitat Conservation & Conveyance Program Development Project Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2020		100,000		113,320
San Marcos CA PFA Series B (Tax Revenue)		3.00			9-1-2016		445,000		451,608
San Marcos CA PFA Series B (Tax Revenue)		3.00			9-1-2017		455,000		468,209
San Marcos CA PFA Series B (Tax Revenue)		4.00			9-1-2018		1,000,000		1,064,360
San Marcos CA Unified School District Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2020		220,000		255,004
San Marcos CA Unified School District Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2021		270,000		319,213
San Marcos CA Unified School District Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2022		250,000		300,268
San Mateo County CA Transportation Authority Series A (Tax Revenue, National Insured) ¤		0.00			12-1-2018		270,000		257,129
San Mateo Foster City CA School District (GO Revenue)		5.00			8-15-2020		2,000,000		2,339,880
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2021		1,775,000		2,089,637
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2022		1,865,000		2,233,953
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2023		1,945,000		2,352,594
Santa Ana CA Community Redevelopment Agency Merged Project Area Series A (Tax Revenue)		5.25			9-1-2019		1,000,000		1,131,730
Santa Ana CA Unified School District CAB Election of 2008 Series A (GO Revenue) ¤		0.00			8-1-2020		1,815,000		1,670,689
Santa Clara County CA Financing Authority Capital Projects Series A (Miscellaneous Revenue)		4.00			2-1-2024		6,000,000		6,696,120
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		4.00			8-1-2020		150,000		165,818
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2021		125,000		147,016
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2022		165,000		196,794
Santa Cruz County CA Redevelopment Agency Live Oak Soquel Community Series A (Tax Revenue, National Insured)		5.25			9-1-2016		495,000		509,474
Santa Cruz County CA Redevelopment Agency Live Oak Soquel Community Series A (Tax Revenue, National Insured)		5.25			9-1-2017		495,000		528,452
Santa Cruz County CA Redevelopment Successor Agency Tax Allocation Refunding (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2019		625,000		706,556
Santa Cruz County CA Redevelopment Successor Agency Tax Allocation Refunding (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2020		1,000,000		1,157,310

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 19

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Santa Fe Springs CA Community Development Commission Consolidated Redevelopment Project Series A (Tax Revenue, National Insured)		5.00	%		9-1-2017	$	750,000	$	796,440
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2016		215,000		218,588
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2017		220,000		228,540
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2018		230,000		242,990
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2019		225,000		240,750
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2021		345,000		374,542
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2022		425,000		461,635
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2023		405,000		439,360
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2024		420,000		455,650
Signal Hill CA Redevelopment Project #1 (Tax Revenue)		4.13			10-1-2016		550,000		564,146
Simi Valley CA Unified School District Refunding and Capital Improvement Project (Miscellaneous Revenue, Ambac Insured)		5.25			8-1-2017		380,000		395,854
Solana Beach CA School District Special Tax PFA (Tax Revenue)		3.00			9-1-2016		450,000		456,584
Solana Beach CA School District Special Tax PFA (Tax Revenue)		4.00			9-1-2018		330,000		351,239
Solana Beach CA School District Special Tax PFA (Tax Revenue)		4.00			9-1-2019		735,000		795,909
South Monterey County CA Joint Union High School District (GO Revenue)		3.00			8-1-2016		1,345,000		1,363,117
South Monterey County CA Joint Union High School District (GO Revenue)		3.00			8-1-2017		1,485,000		1,527,887
South San Francisco CA Unified School District BAN Series D (GO Revenue) ¤		0.00			5-15-2017		3,000,000		2,963,520
South Western CA Community College District Refunding Bond (GO Revenue)		5.00			8-1-2020		1,250,000		1,457,900
South Western CA Community College District Refunding Bond (GO Revenue)		5.00			8-1-2021		2,710,000		3,218,179
Southern CA Mono Healthcare District (GO Revenue)		3.00			8-1-2016		615,000		620,873
Southern CA Mono Healthcare District (GO Revenue)		3.00			8-1-2017		300,000		306,024
Southern CA Mono Healthcare District (GO Revenue)		4.00			8-1-2019		845,000		900,525
Stanislaus County CA Schools Infrastructure Financing Agency (Tax Revenue, AGM Insured)		5.00			9-1-2021		1,300,000		1,526,174
Stanton CA Redevelopment Agency Consolidated Project Series A (Tax Revenue, AGM Insured)		4.00			12-1-2017		400,000		420,384
Stanton CA Redevelopment Agency Consolidated Project Series A (Tax Revenue, AGM Insured)		4.00			12-1-2018		410,000		439,118
Successor Agency to the Morgan Hill CA Redevelopment Agency Series A (Tax Revenue)		5.00			9-1-2021		1,055,000		1,251,483
Successor Agency to the Rancho Mirage CA Redevelopment Agency Refunding Sub Lien Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			4-1-2017		460,000		476,394
Successor Agency to the Rancho Mirage CA Redevelopment Agency Refunding Sub Lien Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2018		400,000		432,056
Successor Agency to the Rancho Mirage CA Redevelopment Agency Refunding Sub Lien Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2019		580,000		643,365
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			4-1-2018		750,000		793,545
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2018		550,000		594,077
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2019		850,000		942,863
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2019		600,000		665,550
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		4.50			9-1-2025		160,000		182,691
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2021		310,000		361,206
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2022		300,000		354,804

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

20 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00	%		9-1-2023	$	265,000	$	315,085
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2025		150,000		177,173
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2020		405,000		464,333
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2022		445,000		526,884
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2023		470,000		561,894
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2020		365,000		418,473
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2022		240,000		284,162
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2023		460,000		549,939
Successor Agency to the Vacaville CA Redevelopment Agency Projects (Tax Revenue)		5.00			9-1-2020		600,000		691,362
Successor Agency to the Vacaville CA Redevelopment Agency Projects (Tax Revenue)		5.00			9-1-2021		600,000		704,388
Successor Agency to the Vacaville CA Redevelopment Agency Projects (Tax Revenue)		5.00			9-1-2022		1,050,000		1,249,742
Sulphur Springs CA Unified School District Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2016		150,000		152,228
Sulphur Springs CA Unified School District Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2017		300,000		308,709
Sulphur Springs CA Unified School District Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2018		555,000		577,455
Sulphur Springs CA Unified School District Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2019		595,000		623,233
Sulphur Springs CA Union School CAB Anticipation Notes Series A (Miscellaneous Revenue) ¤		0.00			1-1-2018		2,750,000		2,696,760
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2023		1,280,000		1,543,155
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2024		715,000		870,033
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2025		1,575,000		1,929,816
Sweetwater CA Union High School District Public Financing Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2018		2,500,000		2,750,825
Sweetwater CA Union High School District Public Financing Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2019		1,000,000		1,130,490
Sweetwater CA Union High School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2021		620,000		734,557
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2016		380,000		385,643
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2017		395,000		406,467
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2018		405,000		421,386
Temecula CA PFA Wolf Creek Community Facilities District #3-3 (Tax Revenue)		3.00			9-1-2018		870,000		899,023
Temecula Valley CA Unified School District Community Facilities District #89-1 (Tax Revenue)		3.00			9-1-2016		1,185,000		1,202,017
Temecula Valley CA Unified School District Community Facilities District #89-1 (Tax Revenue)		3.00			9-1-2017		1,250,000		1,284,063
Tender Option Bond Trust Receipts for Semitropic CA Improvement District Water Storage Series A (Water & Sewer Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.26			6-1-2017		9,595,000		9,595,000
Torrance CA RDA Referendum Senior Lien Series C (Tax Revenue, National Insured)		5.45			9-1-2018		845,000		847,772

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 21

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Tustin CA Community Facilities District Refunding #06-1 Legacy Columbus Villages Series A (Tax Revenue)		5.00	%		9-1-2024	$	1,145,000	$	1,359,550
Twin Rivers CA Unified School District Facility Bridge Funding Program (Miscellaneous Revenue, AGM Insured) ±		3.20			6-1-2027		4,150,000		4,155,478
Twin Rivers CA Unified School District Series A (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2019		385,000		422,930
Twin Rivers CA Unified School District Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		510,000		592,212
Union City CA Community Redevelopment Agency Sub Lien (Tax Revenue)		4.38			12-1-2016		475,000		490,119
University of California Series AK (Education Revenue) ±		5.00			5-15-2048		10,000,000		12,270,400
Upland CA Successor Agency Merged Project Tax Allocation (Tax Revenue, AGM Insured)		5.00			9-1-2023		1,000,000		1,197,030
Vacaville CA Unified School District Series C (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2022		675,000		810,581
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2020		350,000		385,399
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		375,000		417,263
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2022		665,000		787,367
Val Verde CA Unified School District BAN (GO Revenue)		3.00			8-1-2018		5,000,000		5,076,000
Vallejo CA Unified School District Series A (GO Revenue, National Insured)		5.60			2-1-2016		1,080,000		1,084,633
Vallejo CA Unified School District Series A (GO Revenue, National Insured)		5.90			2-1-2018		2,065,000		2,256,962
Vallejo CA Water Revenue Refunding Bond (Water & Sewer Revenue, National Insured)		5.00			5-1-2019		790,000		800,333
Vallejo CA Water Revenue Refunding Bond (Water & Sewer Revenue, National Insured)		5.00			5-1-2021		1,500,000		1,517,820
Ventura County CA Public Financing Authority Series B (Miscellaneous Revenue)		5.00			11-1-2019		375,000		427,714
Ventura County CA Public Financing Authority Series B (Miscellaneous Revenue)		5.00			11-1-2020		250,000		291,655
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		4.00			12-1-2020		250,000		278,268
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		4.00			12-1-2021		250,000		281,205
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		5.00			12-1-2022		335,000		401,163
Walnut CA Energy Center Authority Refunding Series A (Utilities Revenue)		5.00			1-1-2021		500,000		585,310
Walnut CA Improvement Agency Refunding Walnut Improvement Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			3-1-2017		850,000		878,535
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2017		1,125,000		1,186,976
Washington Township CA Health Refunding Series A (Health Revenue)		5.00			7-1-2023		600,000		691,158
West Contra Costa CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2016		1,055,000		1,083,960
West Covina CA Unified School District (GO Revenue, AGM Insured)		4.00			8-1-2017		325,000		341,396
West Covina CA Unified School District (GO Revenue, AGM Insured)		4.00			8-1-2018		575,000		618,338
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.25			9-1-2016		265,000		268,050
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.25			9-1-2017		270,000		275,967
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.50			9-1-2018		275,000		284,202
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.75			9-1-2019		285,000		298,905
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		5.00			9-1-2020		290,000		334,158
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2016		560,000		571,754
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2017		570,000		594,892
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2019		1,830,000		1,981,652

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

22 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Windsor CA Redevelopment Successor Agency Windsor Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		3.00	%		9-1-2017	$	615,000	$	635,344
Yuba City CA Redevelopment Agency Refunding (Tax Revenue, AGM Insured)		5.00			9-1-2025		750,000		903,188
									731,049,172
Colorado: 0.12%
Colorado Health Facilities Authority Deutsche Bank SPEAR/LIFER Trust Series 1131 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.15			12-1-2042		1,000,000		1,000,000
Guam: 0.23%
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2019		1,640,000		1,854,906
Indiana: 0.37%
JPMorgan Chase PUTTER/DRIVER Trust Series 3888 Indianapolis IN Industry Local Public Improvement (Miscellaneous Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.29			2-1-2019		3,000,000		3,000,000
New York: 0.63%
New York NY Transitional Finance Authority Sub Series 2A (Tax Revenue, Dexia Credit Local LIQ) ±		0.24			11-1-2022		5,130,000		5,130,000
Puerto Rico: 1.11%
Puerto Rico HFA Capital Funding Program (Housing Revenue, HUD Insured)		5.00			12-1-2016		1,815,000		1,842,751
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2016		2,440,000		2,521,667
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2017		2,045,000		2,186,882
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2018		1,250,000		1,377,075
Puerto Rico HFA Unrefunded Balance Capital Funding Program (Housing Revenue)		5.00			12-1-2019		1,000,000		1,036,790
									8,965,165
Texas: 1.36%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.27			12-1-2039		11,000,000		11,000,000
Wisconsin: 0.01%
Wisconsin PFA Senior Living 50 Rose Villa Project Series B-3 (Health Revenue)		3.75			11-15-2019		65,000		65,203
Total Municipal Obligations (Cost $740,600,766)									762,064,446
Other: 0.31%
Nuveen California AMT-Free Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A§		0.48			7-1-2018		2,500,000		2,479,525
Total Other (Cost $2,500,000)									2,479,525
	Yield					Shares
Short-Term Investments: 5.91%
Investment Companies: 5.91%
Wells Fargo California Municipal Money Market Fund, Institutional Class (l)(u)##		0.01					47,874,663		47,874,663
Total Short-Term Investments (Cost $47,874,663)									47,874,663

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 23

			Value
Total investments in securities (Cost $790,975,429) *	100.34	%	$	812,418,634
Other assets and liabilities, net	(0.34	)		(2,734,073	)
Total net assets	100.00	%	$	809,684,561

%% The security is issued on a when-issued basis.

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

± 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.

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.

(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.

§ The security is subject to a demand feature which reduces the effective maturity.

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $790,976,002 and unrealized gains (losses) consists of:

Gross unrealized gains	$	21,937,703
Gross unrealized losses		(495,071	)
Net unrealized gains	$	21,442,632

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

24 Wells Fargo California Limited-Term Tax-Free Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $743,100,766)	$	764,543,971
In affiliated securities, at value (cost $47,874,663)		47,874,663
Total investments, at value (cost $790,975,429)		812,418,634
Receivable for investments sold		385,390
Receivable for Fund shares sold		3,699,888
Receivable for interest		7,905,588
Prepaid expenses and other assets		44,808
Total assets		824,454,308
Liabilities
Dividends payable		542,769
Payable for investments purchased		7,573,804
Payable for Fund shares redeemed		6,145,986
Management fee payable		238,225
Distribution fee payable		24,844
Administration fees payable		82,302
Accrued expenses and other liabilities		161,817
Total liabilities		14,769,747
Total net assets	$	809,684,561
NET ASSETS CONSIST OF
Paid-in capital	$	788,844,246
Undistributed net investment income		408,545
Accumulated net realized losses on investments		(1,011,435	)
Net unrealized gains on investments		21,443,205
Total net assets	$	809,684,561
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	200,481,438
Shares outstanding – Class A1		18,395,594
Net asset value per share – Class A		$10.90
Maximum offering price per share – Class A2		$11.12
Net assets – Class C	$	36,070,408
Shares outstanding – Class C1		3,310,278
Net asset value per share – Class C		$10.90
Net assets – Administrator Class	$	276,626,613
Shares outstanding – Administrator Class1		25,776,314
Net asset value per share – Administrator Class		$10.73
Net assets – Institutional Class	$	296,506,102
Shares outstanding – Institutional Class1		27,643,790
Net asset value per share – Institutional Class		$10.73

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 25

Investment income
Interest	$	9,530,098
Income from affiliated securities		757
Total investment income		9,530,855
Expenses
Management fee		1,583,676
Administration fees
Class A		161,766
Class C		28,397	��
Administrator Class		150,563
Institutional Class		108,694
Shareholder servicing fees
Class A		252,760
Class C		44,371
Administrator Class		376,102
Distribution fee
Class C		133,112
Custody and accounting fees		23,794
Professional fees		20,868
Registration fees		28,865
Shareholder report expenses		15,141
Trustees’ fees and expenses		11,947
Other fees and expenses		8,653
Total expenses		2,948,709
Less: Fee waivers and/or expense reimbursements		(285,677	)
Net expenses		2,663,032
Net investment income		6,867,823
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		135,739
Net change in unrealized gains (losses) on investments		5,014,042
Net realized and unrealized gains (losses) on investments		5,149,781
Net increase in net assets resulting from operations	$	12,017,604

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

26 Wells Fargo California Limited-Term Tax-Free Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	6,867,823					$	14,078,386
Net realized gains on investments					135,739						364,309
Net change in unrealized gains (losses) on investments					5,014,042						(3,311,723	)
Net increase in net assets resulting from operations					12,017,604						11,130,972
Distributions to shareholders from
Net investment income
Class A					(1,570,372	)					(3,064,591	)
Class C					(142,300	)					(256,497	)
Administrator Class					(2,636,716	)					(8,823,966	)
Institutional Class					(2,518,435	)					(1,933,332	)1
Total distributions to shareholders					(6,867,823	)					(14,078,386	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,781,382			19,374,752			6,964,431			75,889,938
Class C		436,288			4,743,689			553,959			6,036,972
Administrator Class		4,860,853			52,099,940			32,948,716			353,805,157
Institutional Class		8,093,610			86,648,664			36,280,587	1		389,651,041	1
					162,867,045						825,383,108
Reinvestment of distributions
Class A		126,848			1,380,528			244,994			2,670,137
Class C		11,703			127,342			21,405			233,181
Administrator Class		204,734			2,193,602			408,698			4,385,625
Institutional Class		11,864			127,150			4,520	1		48,377	1
					3,828,622						7,337,320
Payment for shares redeemed
Class A		(1,835,625	)		(19,960,616	)		(7,599,782	)		(82,821,193	)
Class C		(277,844	)		(3,017,628	)		(649,944	)		(7,074,821	)
Administrator Class		(8,280,090	)		(88,683,807	)		(55,804,196	)		(599,212,171	)
Institutional Class		(6,740,497	)		(72,076,919	)		(10,006,294	)1		(107,468,540	)1
					(183,738,970	)					(796,576,725	)
Net increase (decrease) in net assets resulting from capital share transactions					(17,043,303	)					36,143,703
Total increase (decrease) in net assets					(11,893,522	)					33,196,289
Net assets
Beginning of period					821,578,083						788,381,794
End of period				$	809,684,561					$	821,578,083
Undistributed net investment income				$	408,545					$	408,545

¹  For the period from October 31, 2014 (commencement of class operations) to June 30, 2015

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

Financial highlights Wells Fargo California Limited-Term Tax-Free Fund 27

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.83			$10.86			$10.66			$10.70			$10.51			$10.51
Net investment income		0.09			0.16			0.18			0.21			0.27			0.27
Net realized and unrealized gains (losses) on investments		0.07			(0.03	)		0.20			(0.04	)		0.19			0.00
Total from investment operations		0.16			0.13			0.38			0.17			0.46			0.27
Distributions to shareholders from
Net investment income		(0.09	)		(0.16	)		(0.18	)		(0.21	)		(0.27	)		(0.27	)
Net asset value, end of period		$10.90			$10.83			$10.86			$10.66			$10.70			$10.51
Total return1		1.44	%		1.22	%		3.61	%		1.59	%		4.41	%		2.52	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.82	%		0.83	%		0.83	%		0.84	%		0.84	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		1.55	%		1.49	%		1.70	%		1.95	%		2.51	%		2.58	%
Supplemental data
Portfolio turnover rate		6	%		31	%		31	%		32	%		56	%		54	%
Net assets, end of period (000s omitted)		$200,481			$198,402			$203,306			$156,366			$162,381			$126,570

¹  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

28 Wells Fargo California Limited-Term Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.83			$10.86			$10.65			$10.70			$10.51			$10.51
Net investment income		0.04			0.08			0.10			0.13			0.19			0.19
Net realized and unrealized gains (losses) on investments		0.07			(0.03	)		0.21			(0.05	)		0.19			0.00
Total from investment operations		0.11			0.05			0.31			0.08			0.38			0.19
Distributions to shareholders from
Net investment income		(0.04	)		(0.08	)		(0.10	)		(0.13	)		(0.19	)		(0.19	)
Net asset value, end of period		$10.90			$10.83			$10.86			$10.65			$10.70			$10.51
Total return1		1.05	%		0.47	%		2.94	%		0.73	%		3.63	%		1.85	%
Ratios to average net assets (annualized)
Gross expenses		1.58	%		1.57	%		1.58	%		1.58	%		1.59	%		1.60	%
Net expenses		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%
Net investment income		0.80	%		0.74	%		0.95	%		1.19	%		1.77	%		1.82	%
Supplemental data
Portfolio turnover rate		6	%		31	%		31	%		32	%		56	%		54	%
Net assets, end of period (000s omitted)		$36,070			$33,996			$34,920			$35,309			$33,414			$28,089

¹  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo California Limited-Term Tax-Free Fund 29

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.66			$10.70			$10.49			$10.53			$10.34			$10.35
Net investment income		0.10			0.18			0.20			0.23			0.29			0.29
Net realized and unrealized gains (losses) on investments		0.07			(0.04	)		0.21			(0.04	)		0.19			(0.01	)
Total from investment operations		0.17			0.14			0.41			0.19			0.48			0.28
Distributions to shareholders from
Net investment income		(0.10	)		(0.18	)		(0.20	)		(0.23	)		(0.29	)		(0.29	)
Net asset value, end of period		$10.73			$10.66			$10.70			$10.49			$10.53			$10.34
Total return1		1.55	%		1.33	%		3.95	%		1.79	%		4.65	%		2.72	%
Ratios to average net assets (annualized)
Gross expenses		0.77	%		0.76	%		0.77	%		0.77	%		0.77	%		0.79	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.75	%		1.69	%		1.90	%		2.14	%		2.72	%		2.77	%
Supplemental data
Portfolio turnover rate		6	%		31	%		31	%		32	%		56	%		54	%
Net assets, end of period (000s omitted)		$276,627			$309,120			$550,156			$388,872			$269,980			$209,794

¹  Returns for periods of less than one year are not annualized.

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

30 Wells Fargo California Limited-Term Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

INSTITUTIONAL CLASS	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151
Net asset value, beginning of period		$10.66			$10.75
Net investment income		0.10			0.13
Net realized and unrealized gains (losses) on investments		0.07			(0.09	)
Total from investment operations		0.17			0.04
Distributions to shareholders from
Net investment income		(0.10	)		(0.13	)
Net asset value, end of period		$10.73			$10.66
Total return2		1.60	%		0.35	%
Ratios to average net assets (annualized)
Gross expenses		0.50	%		0.50	%
Net expenses		0.50	%		0.50	%
Net investment income		1.85	%		1.82	%
Supplemental data
Portfolio turnover rate		6	%		31	%
Net assets, end of period (000s omitted)		$296,506			$280,061

¹  For the period from October 31, 2014 (commencement of class operations) to June 30, 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 (unaudited) Wells Fargo California Limited-Term Tax-Free 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 California Limited-Term Tax-Free 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.

32 Wells Fargo California Limited-Term Tax-Free Fund Notes to financial statements (unaudited)

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 and tax-exempt 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 June 30, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $999,254 with $888,898 expiring in 2018 and $110,356 expiring in 2019.

As of June 30, 2015, the Fund had $147,347 of current year deferred post-October capital losses, which was recognized on the first day of the current fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	762,064,446	$	0	$	762,064,446
Other		0		2,479,525		0		2,479,525
Short-term investments
Investment companies		47,874,663		0		0		47,874,663
Total assets	$	47,874,663	$	764,543,971	$	0	$	812,418,634

Notes to financial statements (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 33

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.39% of the Fund’s average daily net assets.

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

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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.80% for Class A shares, 1.55% for Class C shares, 0.60% for Administrator Class shares, and 0.50% 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 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 six months ended December 31, 2015, Funds Distributor received $1,474 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 Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

34 Wells Fargo California Limited-Term Tax-Free Fund Notes to financial statements (unaudited)

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $46,661,995 and $110,581,070, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $595 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

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.

Other information (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 35

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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.

36 Wells Fargo California Limited-Term Tax-Free 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

Other information (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 37

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

38 Wells Fargo California Limited-Term Tax-Free 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

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398830 02-16 SA248/SAR248 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo California Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	17
Statement of operations	18
Statement of changes in net assets	19
Financial highlights	20
Notes to financial statements	25
Other information	29
List of abbreviations	32

The views expressed and any forward-looking statements are as of December 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 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 California Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo California Tax-Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo California Tax-Free Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo California Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and California individual income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Terry J. Goode

Robert J. Miller

Adrian Van Poppel

Average annual total returns (%) as of December 31, 2015¹

		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 (SCTAX)	10-6-1988		(1.42	)		5.84		4.40		3.26		6.83		4.88		0.83		0.75
Class B (SGCBX)*	12-15-1997		(2.43	)		5.72		4.34		2.57		6.04		4.34		1.58		1.50
Class C (SCTCX)	7-1-1993		1.57			6.04		4.10		2.57		6.04		4.10		1.58		1.50
Administrator Class (SGCAX)	12-15-1997		–			–		–		3.55		7.05		5.11		0.77		0.55
Institutional Class (SGTIX)	10-31-2014		–			–		–		3.63		7.06		5.12		0.50		0.48
Barclays Municipal Bond Index4	–		–			–		–		3.30		5.35		4.72		–		–
Barclays California Municipal Bond Index5	–		–			–		–		3.51		6.31		4.98		–		–

* 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, wellsfargofunds.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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to California municipal securities risk and high-yield securities risk and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo California Tax-Free Fund 5

Credit quality distribution (%) as of December 31, 2015⁶

Effective maturity distribution as of December 31, 2015⁷

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.

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 October 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 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 Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays California Municipal Bond Index is the California component of the Barclays Municipal Bond Index. You cannot invest directly in an index.

⁶  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.

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 California Tax-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,034.99	$	3.84		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.37	$	3.81		0.75	%
Class B
Actual	$	1,000.00	$	1,032.41	$	7.66		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.61		1.50	%
Class C
Actual	$	1,000.00	$	1,031.57	$	7.66		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.61		1.50	%
Administrator Class
Actual	$	1,000.00	$	1,036.85	$	2.82		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.37	$	2.80		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,037.21	$	2.46		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.72	$	2.44		0.48	%

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 97.38%
California: 94.15%
ABC California Unified School District CAB Election of 1997 Series B (GO Revenue, National Insured) ¤		0.00	%		8-1-2018	$	1,500,000	$	1,449,555
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		3,895,000		3,728,995
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		3,000,000		2,809,170
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured)		5.25			10-1-2021		3,000,000		3,206,580
Alameda CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		5.00			12-1-2034		1,005,000		1,164,092
Alhambra CA Unified School District Election of 2008 Series B (GO Revenue, AGM Insured)		6.00			8-1-2029		4,100,000		5,011,348
Alisal CA Unified School District CAB Election of 2006 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2017		1,105,000		1,082,381
Alvord CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.25			8-1-2037		1,620,000		1,871,489
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2018		4,455,000		4,299,476
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2025		10,000,000		7,541,700
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2039		3,000,000		3,427,500
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		3,000,000		3,406,020
Antelope Valley CA Health Care District Series A (Health Revenue, AGM Insured)		5.20			1-1-2017		480,000		481,954
Banning CA Financing Authority Refunding Bond Electric System Project (Utilities Revenue, AGM Insured)		5.00			6-1-2037		5,000,000		5,713,500
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2027		1,050,000		1,268,558
Bay Area CA Toll Authority Toll Bridge Revenue Series S-4 (Transportation Revenue)		5.00			4-1-2030		2,000,000		2,341,900
Bay Area CA Water Supply & Conservation Agency Series A (Water & Sewer Revenue)		5.00			10-1-2034		6,000,000		7,058,400
Belmont CA Community Facilities Special Tax District #2000-1 Library Project Series A (Tax Revenue, Ambac Insured)		5.75			8-1-2030		3,190,000		4,161,770
Brea CA PFA Tax Allocation Series A (Housing Revenue)		7.00			9-1-2023		1,000,000		1,060,630
Cabrillo CA Unified School District CAB Series A (GO Revenue, Ambac Insured) ¤		0.00			8-1-2021		1,500,000		1,328,130
California (GO Revenue)		5.25			8-1-2038		1,925,000		2,127,895
California (GO Revenue)		5.25			11-1-2040		3,000,000		3,501,210
California AMT Department of Veterans Affairs Series BZ (GO Revenue, National Insured)		5.35			12-1-2021		5,000		5,015
California Association of Bay Area Governments Finance Authority for Nonprofit Corporations O’Connor Woods Project (Health Revenue)		5.00			1-1-2043		5,000,000		5,756,650
California Association of Bay Area Governments Finance Authority for Nonprofit Corporations Odd Fellows Home Project Series A (Health Revenue)		5.00			4-1-2042		1,100,000		1,262,415
California Department of Transportation Certificate of Participation Series A (Miscellaneous Revenue, National Insured)		5.25			3-1-2016		830,000		833,569
California HFA AMT Home Mortgage Series E (Housing Revenue)		5.00			2-1-2042		310,000		320,413
California HFA AMT Home Mortgage Series G (Housing Revenue)		5.50			8-1-2042		1,020,000		1,046,795
California HFA AMT Home Mortgage Series H (Housing Revenue, FGIC Insured)		5.75			8-1-2030		345,000		346,559
California HFA AMT Home Mortgage Series J (Housing Revenue)		5.75			8-1-2047		55,000		55,249
California HFA AMT Home Mortgage Series K (Housing Revenue)		5.30			8-1-2023		2,520,000		2,586,226

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

8 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California HFA AMT Home Mortgage Series M (Housing Revenue)		5.00	%		8-1-2037	$	145,000	$	145,286
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.25			3-1-2023		3,000,000		3,537,120
California HFFA Catholic Healthcare West Series A (Health Revenue)		6.00			7-1-2029		4,000,000		4,591,040
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2030		1,830,000		2,189,083
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2035		1,000,000		1,168,770
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2045		4,500,000		5,147,145
California HFFA Prerefunded Bond Providence Health Services Series C (Health Revenue)		6.50			10-1-2038		100,000		114,850
California HFFA Sutter Health Series A (Health Revenue)		5.00			8-15-2043		1,250,000		1,444,000
California HFFA Sutter Health Series D (Health Revenue)		5.25			8-15-2031		3,100,000		3,675,081
California Infrastructure & Economic Development King City Joint Union High School (Miscellaneous Revenue)		5.75			8-15-2029		2,150,000		2,478,972
California Municipal Finance Authority California Baptist University Series A (Education Revenue) 144A		5.00			11-1-2025		1,025,000		1,089,596
California Municipal Finance Authority Charter School Revenue Albert Einstein Academies Project Series A (Miscellaneous Revenue)		6.75			8-1-2033		1,525,000		1,745,957
California Municipal Finance Authority Charter School Revenue Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		1,000,000		1,162,490
California Municipal Financing Authority Certificate of Participation Community Hospitals of Central California (Health Revenue)		5.00			2-1-2020		415,000		434,434
California Municipal Financing Authority Certificate of Participation Community Hospitals of Central California (Health Revenue)		5.00			2-1-2020		585,000		607,177
California PFOTER PT-2802 (GO Revenue, National Insured, Dexia Credit Local SPA) ø		0.20			2-1-2025		10,015,000		10,015,000
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.19			8-1-2027		24,410,000		24,410,000
California PFOTER Series DCL-010 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.19			8-1-2027		27,305,000		27,305,000
California PFOTER Series DCL-011 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.19			8-1-2027		10,555,000		10,555,000
California Public Works Board California State University Projects Series B-1 (Miscellaneous Revenue)		5.70			3-1-2035		2,210,000		2,572,020
California Public Works Board Judicial Council Projects Series A (Miscellaneous Revenue)		5.00			3-1-2038		7,000,000		7,988,540
California Public Works Board Judicial Council Projects Series D (Miscellaneous Revenue)		5.25			12-1-2025		4,000,000		4,891,200
California Public Works University of California Board of Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		9,850,000		11,887,670
California Public Works Board Various Capital Projects Series A (Miscellaneous Revenue)		5.00			4-1-2037		4,925,000		5,599,577
California Public Works Board Various Capital Projects Series G (Miscellaneous Revenue)		5.00			11-1-2037		23,000,000		26,419,180
California Public Works Board Various Capital Projects Series I (Miscellaneous Revenue)		5.50			11-1-2033		2,000,000		2,454,700
California Refunding Bond (GO Revenue)		5.00			8-1-2025		5,000,000		5,226,550
California School Finance Authority School Green Dot Public Schools Projects (Education Revenue) 144A		4.00			8-1-2025		475,000		490,661
California School Finance Authority School Green Dot Public Schools Projects (Education Revenue) 144A		5.00			8-1-2035		2,525,000		2,713,870

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California School Finance Authority School KIPP Louisiana Projects Series A (Education Revenue) 144A		5.00	%		7-1-2035	$	1,000,000	$	1,090,780
California Special District Association Finance Corporation Program Series MM (Miscellaneous Revenue)		5.50			6-1-2021		720,000		722,146
California Statewide CDA Adventist Health System Series A (Health Revenue)		5.00			3-1-2045		2,500,000		2,813,800
California Statewide CDA Catholic Healthcare West Series A (Health Revenue)		5.50			7-1-2030		2,960,000		3,148,197
California Statewide CDA Certificate of Participation Internext Group (Health Revenue)		5.38			4-1-2017		290,000		291,206
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2033		1,650,000		1,955,184
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2035		1,000,000		1,178,230
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2038		3,000,000		3,500,370
California Statewide CDA Loma Linda University Medical Center Refunding Bond Series A (Health Revenue)		5.25			12-1-2044		5,150,000		5,428,976
California Statewide CDA Poway Retirement Housing Foundation Housing Incorporated Series A (Housing Revenue)		5.25			11-15-2035		1,500,000		1,790,700
California Statewide CDA Redwoods Projects (Health Revenue)		5.13			11-15-2035		1,500,000		1,768,020
California Statewide CDA School Facility Alliance for College-Ready Public Schools (Education Revenue)		6.75			7-1-2031		1,625,000		1,820,276
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.00			7-1-2020		1,550,000		1,616,573
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.20			7-1-2020		350,000		360,129
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series D (Health Revenue)		4.75			8-1-2020		1,000,000		1,003,350
California Statewide CDA St. Joseph Health System (Health Revenue, AGM Insured)		5.25			7-1-2021		1,775,000		1,944,690
California Statewide CDA Water & Wastewater Pooled Financing Program Series B (Water & Sewer Revenue, AGM Insured)		5.25			10-1-2027		1,040,000		1,044,326
California Various Purposes (GO Revenue)		5.00			10-1-2029		7,000,000		8,023,190
California Various Purposes (GO Revenue)		5.25			4-1-2035		12,640,000		14,863,123
California Various Purposes (GO Revenue)		6.00			4-1-2035		2,140,000		2,477,542
California Various Purposes (GO Revenue)		5.00			9-1-2029		1,475,000		1,727,299
California Various Purposes (GO Revenue)		5.00			9-1-2032		5,100,000		6,066,603
California Various Purposes (GO Revenue)		5.00			6-1-2037		4,215,000		4,458,922
California Various Purposes (GO Revenue)		5.00			2-1-2038		5,000,000		5,782,150
California Various Purposes (GO Revenue)		5.13			4-1-2033		6,735,000		7,319,935
California Various Purposes (GO Revenue)		5.25			9-1-2028		5,000,000		5,946,000
California Various Purposes (GO Revenue)		5.25			10-1-2029		800,000		922,264
California Various Purposes (GO Revenue)		5.25			3-1-2038		2,300,000		2,503,780
California Various Purposes (GO Revenue)		5.60			3-1-2036		8,715,000		10,175,895
California Various Purposes (GO Revenue)		5.75			4-1-2029		1,600,000		1,843,520
California Various Purposes (GO Revenue)		5.75			4-1-2031		3,380,000		3,892,070
California Various Purposes (GO Revenue)		6.00			4-1-2038		23,465,000		27,166,134
Cathedral City CA Redevelopment Agency Successor Agency Tax Allocation Merged Redevelopment Project Area Series A (Tax Revenue, AGM Insured)		5.00			8-1-2032		1,450,000		1,666,804
Cathedral City CA Redevelopment Agency Successor Agency Tax Allocation Merged Redevelopment Project Area Series A (Tax Revenue, AGM Insured)		5.00			8-1-2033		880,000		1,009,422
Center California Unified School District CAB Series C (GO Revenue, National Insured) ¤		0.00			9-1-2021		5,000,000		4,399,650
Centinela Valley CA Union High School District Election of 2008 Series B (GO Revenue)		6.00			8-1-2036		2,500,000		3,164,125

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

10 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Centinela Valley CA Union High School District Election of 2008 Series C (GO Revenue)		5.00	%		8-1-2035	$	2,000,000	$	2,308,840
Central Valley CA School District Financing Authority Series A (Miscellaneous Revenue, National Insured)		6.45			2-1-2018		1,080,000		1,130,393
Cerritos CA Community College CAB Election of 2004 (GO Revenue) ¤		0.00			8-1-2029		1,750,000		1,112,948
Cerritos CA Community College CAB Election of 2004 (GO Revenue) ¤		0.00			8-1-2033		1,500,000		794,100
Chico CA PFA Redevelopment Project Area (Tax Revenue, National Insured)		5.13			4-1-2021		3,000,000		3,008,340
College of the Sequoias Tulare Area Improvement District #3 California CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2024		1,000,000		789,350
Compton CA Community College CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2035		3,445,000		1,441,147
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		5.00			8-1-2020		1,140,000		1,240,753
Compton CA Solid Waste Management Facilities (Resource Recovery Revenue)		4.80			8-1-2020		155,000		154,551
Compton CA Tax and RAN (GO Revenue)		2.20			6-1-2016		4,000,000		3,999,560
Contra Costa County CA Community College District Election of 2006 (GO Revenue)		5.00			8-1-2038		3,250,000		3,776,338
Contra Costa County CA Home GNMA Mortgage-Backed Securities Program (Housing Revenue, GNMA Insured)		7.75			5-1-2022		170,000		204,258
Delano CA Union High School Election of 2010 Series B (GO Revenue, AGM Insured)		5.75			8-1-2035		4,510,000		5,340,471
Dinuba CA Redevelopment Agency Merged City Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2033		1,500,000		1,717,545
Duarte CA RDA CAB Sub-Merged Redevelopment Project (Tax Revenue) ¤		0.00			12-1-2016		460,000		455,625
El Dorado CA Irrigation District Revenue Refunding Bond Series A (Water & Sewer Revenue, AGM Insured)		5.25			3-1-2039		2,000,000		2,339,500
Elk Grove CA Financing Authority Special Tax Refunding Bond (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2038		1,500,000		1,705,530
Emeryville CA PFA Assessment Distribution Refinancing (Miscellaneous Revenue)		5.90			9-2-2021		1,750,000		1,754,008
Escondido CA Union High School CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2027		8,385,000		5,852,059
Florin CA Resource Conservation Refunding Bond Second Senior Lien Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2032		2,000,000		2,280,260
Fontana CA RDA Jurupa Hills Redevelopment Project Series A (Tax Revenue)		5.50			10-1-2017		1,295,000		1,311,110
Fontana CA RDA Jurupa Hills Redevelopment Project Series A (Tax Revenue)		5.60			10-1-2027		4,785,000		4,843,233
Foothill-Eastern Corridor CA Transportation Agency Sub Series B-3 (Transportation Revenue) ±		5.50			1-15-2053		8,000,000		9,220,400
Fremont CA Community Facilities District #1 Refunding Bond (Tax Revenue)		5.00			9-1-2040		2,700,000		2,986,011
Fullerton CA Joint Union High School Project Certificate of Participation (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2035		1,385,000		1,607,057
Garden Grove CA Unified School District Election of 2010 Series C (GO Revenue)		5.25			8-1-2037		2,000,000		2,349,060
Gilroy CA Unified School District Election of 2008 Series A (GO Revenue, AGC Insured)		6.00			8-1-2027		1,000,000		1,174,190
Golden State Tobacco Securitization Corporation Series A (Tobacco Revenue)		5.00			6-1-2040		22,100,000		25,331,020
Golden State Tobacco Securitization Enhanced Asset Backed Refunding Bond Series A (Tobacco Revenue)		5.00			6-1-2045		10,500,000		11,961,810
Hayward CA Unified School District Refunding Bond (GO Revenue)		5.00			8-1-2038		6,000,000		6,785,580
Imperial CA Irrigation District Electric Refunding Bond System Series A (Utilities Revenue)		5.00			11-1-2040		3,715,000		4,336,631
Imperial CA Irrigation District Electric Refunding Bond System Series A (Utilities Revenue)		5.00			11-1-2045		1,060,000		1,227,586
Imperial CA Irrigation District Electric Refunding Bond System Series C (Utilities Revenue) %%		5.00			11-1-2037		2,500,000		2,973,400
Imperial CA Irrigation District Electric Refunding Bond System Series C (Utilities Revenue) %%		5.00			11-1-2038		1,800,000		2,135,556

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Independent Cities California Finance Refunding Bond Sanitary Juan Mobile Estates (Housing Revenue)		5.00	%		8-15-2030	$	1,000,000	$	1,133,850
Inland Valley CA Development Agency Series A (Tax Revenue)		5.25			9-1-2037		4,000,000		4,551,160
Inland Valley CA Development Agency Series C (Tax Revenue) ±		4.50			3-1-2041		3,750,000		3,776,475
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District Number 15-2 (Miscellaneous Revenue)		5.00			9-2-2025		725,000		853,891
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District Number 15-2 (Miscellaneous Revenue)		5.00			9-2-2026		400,000		468,532
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District Number 15-2 (Miscellaneous Revenue)		5.00			9-2-2042		1,500,000		1,639,365
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2033		7,000,000		2,355,640
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2034		6,915,000		2,187,629
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2034		2,990,000		925,285
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2036		11,130,000		2,987,069
JPMorgan Chase PUTTER/DRIVER Trust Series 3797Z (GO Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.23			8-1-2016		1,000,000		1,000,000
Lafayette CA Redevelopment Agency Refunding Bond Lafayette Redevelopment Project (Tax Revenue, AGM Insured)		5.00			8-1-2033		1,500,000		1,731,630
Lafayette CA Redevelopment Agency Refunding Bond Lafayette Redevelopment Project (Tax Revenue, AGM Insured)		5.00			8-1-2038		1,635,000		1,859,584
Lake Elsinore CA Unified School TRAN Series A (Miscellaneous Revenue)		2.00			6-30-2016		4,000,000		4,019,800
Lancaster CA RDA Tax Allocation Combined Redevelopment Project Areas (Tax Revenue)		6.50			8-1-2029		2,000,000		2,316,640
Lodi CA Unified School District School Facility Election of 2006 (GO Revenue, AGM Insured)		5.00			8-1-2030		2,000,000		2,114,880
Long Beach CA Financing Authority Refunding Bond (Miscellaneous Revenue, Ambac Insured)		6.00			11-1-2017		490,000		506,346
Long Beach CA Unified School District CAB Election of 2008 Series A (GO Revenue)		5.50			8-1-2026		1,530,000		1,758,643
Long Beach CA Unified School District CAB Election of 2008 Series B (GO Revenue) ¤		0.00			8-1-2035		2,000,000		941,100
Los Angeles CA Certificate of Participation Sonneblick del Rio Project (Miscellaneous Revenue, Ambac Insured)		6.00			11-1-2019		2,000,000		2,009,800
Los Angeles CA Community Redevelopment Vermont Manchester Social Services Project (Miscellaneous Revenue, Ambac Insured)		5.00			9-1-2025		2,310,000		2,318,593
Los Angeles CA Department of Airports Ontario International Series A (Airport Revenue, National Insured)		5.00			5-15-2024		1,565,000		1,590,056
Los Angeles CA Department of Airports Ontario International Series A (Airport Revenue, National Insured)		5.00			5-15-2025		3,425,000		3,478,533
Los Angeles CA Department of Water & Power System Series E (Utilities Revenue)		5.00			7-1-2044		12,475,000		14,548,470
Los Angeles CA Harbor Department (Airport Revenue)		7.60			10-1-2018		45,000		49,903
Los Angeles CA Public Works Financing Authority Series A (Miscellaneous Revenue)		5.00			12-1-2039		2,860,000		3,297,294
Lynwood CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2033		5,000		5,728
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		7.00			11-1-2034		4,000,000		5,737,560
M-S-R California Energy Authority Gas Series C (Utilities Revenue)		6.13			11-1-2029		1,060,000		1,382,081
Merced CA City School District Election 2014 (GO Revenue)		5.00			8-1-2045		1,000,000		1,145,750
Merced CA Community College School Facilities Improvement Project District #1 (GO Revenue, National Insured)		5.00			8-1-2031		1,635,000		1,678,883
Merced CA Irrigation District Water & Hydroelectric System Series A (Water & Sewer Revenue, AGM Insured)		5.00			10-1-2038		4,000,000		4,658,320
Merced CA Union High School District CAB Series A (GO Revenue, National Insured) ¤		0.00			8-1-2018		2,135,000		2,052,824
Merced CA Union High School District CAB Series C (GO Revenue) ¤		0.00			8-1-2032		3,380,000		1,846,257
Merrill Lynch PFOTER Series PT-4211 (GO Revenue, Dexia Credit Local SPA) 144Aø		0.20			2-1-2025		12,925,000		12,925,000

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

12 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Modesto CA Irrigation District Financing Authority Series A (Utilities Revenue)		5.00	%		10-1-2040	$	3,500,000	$	3,989,300
Montclair CA PFA Lease Revenue Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2035		2,400,000		2,748,984
Morongo Band of Mission Indians California Enterprise Casino Series B (Miscellaneous Revenue) 144A		6.50			3-1-2028		2,100,000		2,309,412
Mount San Antonio CA Community College District CAB Election of 2008 Series A (GO Revenue) ¤		0.00			8-1-2024		1,610,000		1,300,252
Natomas CA Unified School District Series 1999 (GO Revenue, National Insured)		5.95			9-1-2021		1,000,000		1,087,750
Northern California Power Agency Public Power Prerefunded Bond (Utilities Revenue, Ambac Insured)		7.50			7-1-2023		50,000		61,554
Norwalk-La Mirada CA Unified School District CAB Election of 2002 Series D (GO Revenue, AGM Insured) ¤		0.00			8-1-2023		1,500,000		1,239,015
Oakland CA Redevelopment Successor Refunding Subordinated Series TE (Tax Revenue, AGM Insured)		5.00			9-1-2035		2,545,000		2,948,433
Oakland CA Redevelopment Successor Refunding Subordinated Series TE (Tax Revenue, AGM Insured)		5.00			9-1-2036		4,000,000		4,612,400
Oakland CA Unified School District Election of 2012 (GO Revenue)		5.50			8-1-2023		500,000		600,125
Oakland CA Unified School District Election of 2012 (GO Revenue)		6.63			8-1-2038		7,750,000		9,493,285
Oakland CA Unified School District Election of 2012 Series A (GO Revenue)		5.00			8-1-2040		3,500,000		3,927,245
Orange County CA Community Facilities District #2015-1 Esencia Village Series A (Tax Revenue)		5.25			8-15-2045		2,000,000		2,226,680
Oxnard CA School District Election of 2012 Series D (GO Revenue, AGM Insured)		5.00			8-1-2034		1,695,000		1,983,184
Pajaro Valley CA Unified School District Election of 2012 Series A (GO Revenue)		5.00			8-1-2038		1,700,000		1,922,887
Palm Springs CA Palm Springs International Airport (Airport Revenue)		6.00			7-1-2018		180,000		181,688
Palm Springs CA Palm Springs International Airport (Airport Revenue)		6.40			7-1-2023		500,000		505,150
Palo Verde CA Unified School District FlexFund Program (Education Revenue)		4.80			9-1-2027		1,443,796		1,561,192
Palomar CA Community College District Election of 2006 Series C (GO Revenue)		5.00			8-1-2044		15,120,000		17,649,425
Paramount CA Unified School District CAB Election of 2006 (GO Revenue) ¤		0.00			8-1-2033		2,500,000		1,245,950
Pasadena CA Old Pasadena Parking Facilities Project (Miscellaneous Revenue)		6.25			1-1-2018		385,000		403,522
Pico Rivera CA Water Authority Series A (Water & Sewer Revenue, National Insured)		5.50			5-1-2019		1,640,000		1,742,648
Pico Rivera CA Water Authority Series A (Water & Sewer Revenue)		6.25			12-1-2032		4,830,000		4,838,936
Pioneer CA Union Elementary School District Certificate of Participation (Miscellaneous Revenue, National Insured)		5.00			8-1-2029		1,635,000		1,702,182
Pomona CA Unified School District Series A (GO Revenue, National Insured)		6.55			8-1-2029		1,480,000		1,965,795
Poway CA Unified School District CAB Election of 2008 Improvement District 07-1-A (GO Revenue) ¤		0.00			8-1-2024		1,800,000		1,437,768
Rancho Cucamonga CA Redevelopment Agency Rancho Redevelopment Project Area (Tax Revenue, AGM Insured)		5.00			9-1-2032		1,870,000		2,179,878
Redding CA Joint Powers Financing Authority Election System Series A (Utilities Revenue)		5.00			6-1-2032		440,000		515,812
Redwood City CA RDA CAB Redevelopment Project Area 2-A (Tax Revenue, Ambac Insured) ¤		0.00			7-15-2030		3,505,000		2,021,894
Rialto CA Unified School District CAB Election of 2010 Series A (GO Revenue, AGM Insured) ¤		0.00			8-1-2026		3,320,000		2,327,320
Richmond CA Joint Powers Financing Authority Civic Center Project Series A (Miscellaneous Revenue, AGC Insured)		5.88			8-1-2037		5,000,000		5,643,100
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		7,500,000		8,619,000
Riverside County CA Asset Leasing Corporation Riverside County Hospital Project (Miscellaneous Revenue, National Insured) ¤		0.00			6-1-2026		10,000,000		7,195,400
Riverside County CA Palm Desert Financing Authority Series A (Miscellaneous Revenue)		6.00			5-1-2022		4,105,000		4,539,720

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Roseville CA Natural Gas Financing Authority (Utilities Revenue)		5.00	%		2-15-2025	$	1,930,000	$	2,227,664
Sacramento CA Airport System AMT Senior Series B (Airport Revenue, AGM Insured)		5.75			7-1-2024		2,000,000		2,207,360
Sacramento CA Certificate of Participation Animal Care & Youth Detention Facilities (Miscellaneous Revenue, Ambac Insured)		5.00			10-1-2025		1,085,000		1,151,142
Sacramento CA City Financing Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.40			11-1-2020		2,135,000		2,340,003
Sacramento CA City Financing Refunding Bond Master Lease Program Facilities (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2035		1,300,000		1,517,919
Sacramento CA City School Joint Refunding Bond Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2040		2,165,000		2,410,100
Sacramento CA Unified School District Election of 2012 Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.25			8-1-2033		1,000,000		1,174,530
Sacramento CA Unified School District Election of 2012 Series C (GO Revenue, AGM Insured)		5.00			8-1-2033		2,735,000		3,232,579
San Bernardino CA Community Election of 2008 Series D (GO Revenue)		5.00			8-1-2045		2,000,000		2,321,920
San Bernardino City CA Unified School District Election of 2012 Series C (GO Revenue, AGM Insured)		5.00			8-1-2040		8,000,000		9,220,000
San Bernardino County CA Certificate of Participation Arrowhead Project Series A (Miscellaneous Revenue)		5.50			8-1-2020		6,000,000		6,867,060
San Bernardino County CA Certificate of Participation Medical Center Financing Project (Miscellaneous Revenue, National Insured)		5.00			8-1-2028		5,815,000		5,830,235
San Buenaventura CA Public Facilities Financing Authority Water Revenue Series B (Water & Sewer Revenue)		5.00			7-1-2042		4,000,000		4,565,600
San Clemente CA Special Tax Community Facilities District #2006-1 (Tax Revenue)		5.00			9-1-2040		1,000,000		1,088,950
San Clemente CA Special Tax Community Facilities District #2006-1 (Tax Revenue)		5.00			9-1-2046		1,200,000		1,302,372
San Diego CA Community College Election of 2002 (GO Revenue)		5.00			8-1-2031		4,000,000		4,759,800
San Diego CA PFFA Ballpark Project Series A (Miscellaneous Revenue, Ambac Insured)		5.25			2-15-2026		4,950,000		5,162,751
San Diego CA PFFA Ballpark Project Series A (Miscellaneous Revenue, Ambac Insured)		5.25			2-15-2032		3,825,000		3,987,639
San Diego CA RDA CAB Tax Allocation Centre (Tax Revenue, AGM Insured) ¤		0.00			9-1-2023		885,000		725,258
San Diego CA RDA Centre City Sub Parking Series B (Transportation Revenue)		5.30			9-1-2020		1,060,000		1,062,205
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		5.00			9-1-2025		575,000		646,921
San Diego CA Unified School District Election 2012 Series F (GO Revenue) %%		5.00			7-1-2045		5,000,000		5,842,950
San Francisco CA City & County Certificate of Participation Multiple Capital Improvement Projects Series A (Miscellaneous Revenue)		5.20			4-1-2026		3,000,000		3,349,020
San Francisco CA City & County Redevelopment Agency Mission Bay North Redevelopment Project Series C (Tax Revenue)		4.50			8-1-2016		250,000		255,488
San Francisco CA City & County Redevelopment Agency Mission Bay South Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2043		2,500,000		2,773,925
San Francisco CA Municipal Transportation (Transportation Revenue)		5.00			3-1-2039		3,000,000		3,478,710
San Gorgonio CA Memorial Healthcare (GO Revenue)		5.00			8-1-2032		1,750,000		1,987,563
San Gorgonio CA Memorial Healthcare (GO Revenue)		5.50			8-1-2028		2,525,000		3,059,947
San Gorgonio CA Memorial Healthcare Election of 2006 Series B (GO Revenue)		5.63			8-1-2038		5,000,000		5,152,400
San Gorgonio CA Memorial Healthcare Election of 2006 Series C (GO Revenue)		7.10			8-1-2033		3,000,000		3,300,330
San Joaquin Delta CA Community College District Election of 2004 Series C (GO Revenue)		5.00			8-1-2033		3,195,000		3,778,727
San Joaquin Delta CA Community College District Election of 2004 Series C (GO Revenue)		5.00			8-1-2034		3,315,000		3,906,694
San Jose CA Libraries & Parks Project (GO Revenue)		5.13			9-1-2031		2,040,000		2,048,303
San Jose CA RDA Tax Allocation Refunding Bond Merged Area Redevelopment Project Series C (Tax Revenue, National Insured)		5.00			8-1-2025		1,845,000		1,947,545

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

14 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
San Jose CA RDA Tax Allocation Refunding Bond Merged Area Redevelopment Project Series C (Tax Revenue, National Insured)		5.00	%		8-1-2026	$	950,000	$	1,000,958
San Jose CA Unified School District CAB (Miscellaneous Revenue, AGM Insured) ¤		0.00			1-1-2021		1,205,000		1,109,950
San Jose CA Unified School District CAB (Miscellaneous Revenue, AGM Insured) ¤		0.00			1-1-2026		3,175,000		2,525,967
San Marcos CA Unified School District Special Tax Community Facilities District #4 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2034		1,725,000		1,989,356
San Marcos CA Unified School District Special Tax Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2028		1,290,000		1,520,755
San Marcos CA Unified School District Special Tax Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2029		1,345,000		1,578,411
San Rafael City CA High School District CAB Election of 2002 Series B (GO Revenue, National Insured) ¤		0.00			8-1-2023		1,260,000		1,050,953
Sanger CA Unified School District Refunding Bond (GO Revenue, National Insured)		5.60			8-1-2023		2,000,000		2,193,520
Santa Ana CA Community Redevelopment Merged Project Area Series A (Tax Revenue)		6.00			9-1-2022		2,000,000		2,392,580
Santa Ana CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGC Insured) ¤		0.00			8-1-2038		15,000,000		6,106,950
Santa Cruz County CA RDA Live Oak Soquel Community Improvement Project (Tax Revenue)		6.63			9-1-2029		2,100,000		2,448,957
Santa Rosa CA High School District (GO Revenue)		5.00			8-1-2024		1,005,000		1,198,412
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2028		1,000,000		1,147,010
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2032		1,500,000		1,681,815
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2037		1,750,000		1,932,105
Simi Valley CA Unified School District Capital Improvement Projects (Miscellaneous Revenue, Ambac Insured)		5.25			8-1-2022		1,970,000		2,199,682
Sonoma CA Community Development Agency Successor Agency Tax Allocation Sonoma Redevelopment Project (Tax Revenue, National Insured)		5.00			6-1-2033		1,325,000		1,560,532
Sonoma Valley CA Community RDA The Springs Redevelopment Project (Tax Revenue, AGC Insured)		6.50			8-1-2028		3,000,000		3,014,910
Sonoma Valley CA Unified School District CAB Election of 2010 Series A (GO Revenue) ¤		0.00			8-1-2027		1,020,000		682,941
South Pasadena CA Unified School District Series A (GO Revenue, FGIC Insured)		5.55			11-1-2020		500,000		563,190
Southern California Public Power Authority Natural Gas Project #1 Series A (Utilities Revenue)		5.25			11-1-2025		1,000,000		1,202,610
Southwest Community California Finance Authority Riverside County (Miscellaneous Revenue)		6.38			5-1-2033		3,065,000		3,417,291
Stockton CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2038		1,025,000		1,169,925
Sutter Butte CA Flood Control Agency (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2040		3,545,000		4,046,937
Torrance CA Certificate of Participation (Miscellaneous Revenue)		5.25			6-1-2039		5,385,000		6,202,335
Tracy CA Operating Partnership Joint Powers Authority Capital Improvement Projects (Miscellaneous Revenue, AGC Insured)		6.25			10-1-2033		1,000,000		1,129,930
Tulare CA PFFA Capital Facilities Project (Miscellaneous Revenue, AGC Insured)		5.25			4-1-2027		3,000,000		3,270,000
Tulare CA Sewer Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			11-15-2041		1,500,000		1,736,580
Turlock CA Irrigation District Revenue Refunding Bond Subordinated First Priority (Utilities Revenue)		5.50			1-1-2041		2,000,000		2,301,680
Tustin CA Community Facilities District Special Tax #2014-1 Legacy/Standard Pacific Series A (Tax Revenue)		5.00			9-1-2040		750,000		817,133
Tustin CA Community Facilities District Special Tax #2014-1 Legacy/Standard Pacific Series A (Tax Revenue)		5.00			9-1-2045		1,000,000		1,087,830
Union City CA Community RDA (Tax Revenue, AGC Insured)		5.25			10-1-2033		8,000,000		9,489,360

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo California Tax-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Union City CA Community Redevelopment Agency Successor Agency Tax Allocation Community Redevelopment Project Series A (Tax Revenue)		5.00	%		10-1-2035	$	1,250,000	$	1,472,663
Union City CA Community Redevelopment Agency Successor Agency Tax Allocation Community Redevelopment Project Series A (Tax Revenue)		5.00			10-1-2036		1,000,000		1,173,480
University of California General Revenue Bonds Series AI (Education Revenue)		5.00			5-15-2038		2,000,000		2,321,520
University of California Regents Medical Center Series J (Health Revenue)		5.00			5-15-2033		2,265,000		2,633,425
University of California Regents Medical Center Series J (Health Revenue)		5.25			5-15-2038		10,000,000		11,754,200
Vacaville CA Unified School District (Miscellaneous Revenue, AGC Insured)		6.50			12-1-2034		1,260,000		1,459,483
Vallejo CA Unified School District Refunding Bond Series A (GO Revenue, National Insured)		5.90			2-1-2017		1,000,000		1,052,710
Vallejo CA Water Revenue Refunding Bond (Water & Sewer Revenue)		5.25			5-1-2031		1,000,000		1,176,590
Ventura County CA PFA Series A (Miscellaneous Revenue)		5.00			11-1-2038		4,250,000		4,889,115
Walnut CA Energy Center Authority Series A (Utilities Revenue)		5.00			1-1-2034		3,115,000		3,635,322
Washington Township Health Care District Election of 2004 Series B (GO Revenue)		5.50			8-1-2038		1,500,000		1,798,200
Washington Township Health Care District Series A (Health Revenue)		5.00			7-1-2026		1,190,000		1,367,453
West Contra Costa CA Unified School District (GO Revenue, AGM Insured)		5.25			8-1-2024		1,350,000		1,607,661
West Contra Costa CA Unified School District CAB Election of 2005 Series B (GO Revenue)		6.00			8-1-2027		1,080,000		1,463,400
West Contra Costa CA Unified School District CAB Election of 2005 Series C-1 (GO Revenue, AGC Insured) ¤		0.00			8-1-2021		6,000,000		5,332,620
Wiseburn CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2027		1,525,000		1,064,328
Yorba Linda CA RDA CAB Series A (Tax Revenue, National Insured) ¤		0.00			9-1-2019		2,010,000		1,762,569
									943,847,085
Guam: 0.28%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,110,810
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2033		1,500,000		1,683,405
									2,794,215
Illinois: 0.55%
Illinois (GO Revenue, AGM Insured)		5.00			2-1-2027		5,000,000		5,551,750
New York: 1.15%
New York NY Municipal Water Finance Authority Series AA3 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.24			6-15-2032		5,000,000		5,000,000
New York NY Transitional Finance Authority Sub Series 2A (Tax Revenue, Dexia Credit Local LIQ) ø		0.24			11-1-2022		6,500,000		6,500,000
									11,500,000
Texas: 0.80%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.27			12-1-2039		6,500,000		6,500,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.26			12-1-2039		1,500,000		1,500,000
									8,000,000
Virgin Islands: 0.45%
Virgin Islands PFA Matching Fund Revenue Bonds Senior Lien (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2029		4,000,000		4,519,760
Total Municipal Obligations (Cost $892,411,181)									976,212,810

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

16 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Other: 0.25%
Nuveen California AMT-Free Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A§		0.48	%		7-1-2018	$	2,500,000	$	2,479,525
Total Other (Cost $2,500,000)									2,479,525
	Yield					Shares
Short-Term Investments: 2.51%
Investment Companies: 2.51%
Wells Fargo California Municipal Money Market Fund, Institutional Class (l)(u)##		0.01					25,177,860		25,177,860
Total Short-Term Investments (Cost $25,177,860)									25,177,860

Total investments in securities (Cost $920,089,041) *	100.14	%		1,003,870,195
Other assets and liabilities, net	(0.14	)		(1,398,062	)
Total net assets	100.00	%	$	1,002,472,133

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

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.

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.

± 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 subject to a demand feature which reduces the effective maturity.

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $920,183,600 and unrealized gains (losses) consists of:

Gross unrealized gains	$	83,826,727
Gross unrealized losses		(140,132	)
Net unrealized gains	$	83,686,595

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

Statement of assets and liabilities—December 31, 2015 (unaudited) Wells Fargo California Tax-Free Fund 17

Assets
Investments
In unaffiliated securities, at value (cost $894,911,181)	$	978,692,335
In affiliated securities, at value (cost $25,177,860)		25,177,860
Total investments, at value (cost $920,089,041)		1,003,870,195
Receivable for investments sold		640,000
Receivable for Fund shares sold		6,341,072
Receivable for interest		11,261,406
Prepaid expenses and other assets		75,317
Total assets		1,022,187,990
Liabilities
Dividends payable		811,567
Payable for investments purchased		17,368,695
Payable for Fund shares redeemed		884,321
Management fee payable		259,607
Distribution fees payable		38,228
Administration fees payable		118,169
Accrued expenses and other liabilities		235,270
Total liabilities		19,715,857
Total net assets	$	1,002,472,133
NET ASSETS CONSIST OF
Paid-in capital	$	927,977,190
Undistributed net investment income		63,315
Accumulated net realized losses on investments		(9,349,526	)
Net unrealized gains on investments		83,781,154
Total net assets	$	1,002,472,133
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	497,954,989
Shares outstanding – Class A1		41,411,516
Net asset value per share – Class A		$12.02
Maximum offering price per share – Class A2		$12.59
Net assets – Class B	$	135,226
Shares outstanding – Class B1		11,022
Net asset value per share – Class B		$12.27
Net assets – Class C	$	55,373,410
Shares outstanding – Class C1		4,515,548
Net asset value per share – Class C		$12.26
Net assets – Administrator Class	$	280,974,472
Shares outstanding – Administrator Class1		23,319,505
Net asset value per share – Administrator Class		$12.05
Net assets – Institutional Class	$	168,034,036
Shares outstanding – Institutional Class1		13,946,048
Net asset value per share – Institutional Class		$12.05

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 California Tax-Free Fund Statement of operations—six months ended December 31, 2015 (unaudited)

Investment income
Interest	$	17,741,580
Income from affiliated securities		951
Total investment income		17,742,531
Expenses
Management fee		1,835,552
Administration fees
Class A		390,532
Class B		129
Class C		43,199
Administrator Class		120,523
Institutional Class		64,611
Shareholder servicing fees
Class A		610,206
Class B		202
Class C		67,499
Administrator Class		301,307
Distribution fees
Class B		606
Class C		202,496
Custody and accounting fees		27,755
Professional fees		27,491
Registration fees		46,198
Shareholder report expenses		7,656
Trustees’ fees and expenses		11,749
Other fees and expenses		8,449
Total expenses		3,766,160
Less: Fee waivers and/or expense reimbursements		(478,795	)
Net expenses		3,287,365
Net investment income		14,455,166
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		1,124,262
Net change in unrealized gains (losses) on investments		17,731,607
Net realized and unrealized gains (losses) on investments		18,855,869
Net increase in net assets resulting from operations	$	33,311,035

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

Statement of changes in net assets Wells Fargo California Tax-Free Fund 19

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	14,455,166					$	27,212,446
Net realized gains on investments					1,124,262						2,254,786
Net change in unrealized gains (losses) on investments					17,731,607						(760,677	)
Net increase in net assets resulting from operations					33,311,035						28,706,555
Distributions to shareholders from
Net investment income
Class A					(7,333,548	)					(15,140,747	)
Class B					(1,826	)					(7,112	)
Class C					(608,918	)					(1,189,812	)
Administrator Class					(3,862,287	)					(8,899,925	)
Institutional Class					(2,648,586	)					(1,974,850	)1
Total distributions to shareholders					(14,455,165	)					(27,212,446	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,401,278			40,481,663			4,711,161			56,157,629
Class C		617,284			7,479,228			775,910			9,442,120
Administrator Class		7,057,200			84,126,813			11,314,902			135,638,547
Institutional Class		3,063,485			36,469,187			13,920,921	1		167,143,717	1
					168,556,891						368,382,013
Reinvestment of distributions
Class A		555,545			6,617,442			1,156,627			13,795,754
Class B		129			1,572			546			6,640
Class C		43,748			531,553			87,749			1,067,361
Administrator Class		277,481			3,313,796			487,746			5,829,813
Institutional Class		16,211			193,822			6,023	1		71,726	1
					10,658,185						20,771,294
Payment for shares redeemed
Class A		(2,456,012	)		(29,172,161	)		(5,715,891	)		(68,058,187	)
Class B		(3,086	)		(37,448	)		(28,490	)		(345,266	)
Class C		(371,119	)		(4,488,799	)		(477,683	)		(5,795,267	)
Administrator Class		(1,821,086	)		(21,638,957	)		(17,223,780	)		(206,068,914	)
Institutional Class		(1,782,553	)		(21,217,314	)		(1,278,039	)1		(15,297,220	)1
					(76,554,679	)					(295,564,854	)
Net increase in net assets resulting from capital share transactions					102,660,397						93,588,453
Total increase in net assets					121,516,267						95,082,562
Net assets
Beginning of period					880,955,866						785,873,304
End of period				$	1,002,472,133					$	880,955,866
Undistributed net investment income				$	63,315					$	63,314

¹  For the period from October 31, 2014 (commencement of class operations) to June 30, 2015

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

20 Wells Fargo California Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.79			$11.73			$11.21			$11.37			$10.53			$10.69
Net investment income		0.18			0.38			0.42			0.40			0.45			0.46
Net realized and unrealized gains (losses) on investments		0.23			0.06			0.52			(0.16	)		0.84			(0.16	)
Total from investment operations		0.41			0.44			0.94			0.24			1.29			0.30
Distributions to shareholders from
Net investment income		(0.18	)		(0.38	)		(0.42	)		(0.40	)		(0.45	)		(0.46	)
Net asset value, end of period		$12.02			$11.79			$11.73			$11.21			$11.37			$10.53
Total return1		3.50	%		3.74	%		8.58	%		2.06	%		12.46	%		2.89	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.83	%		0.83	%		0.83	%		0.83	%		0.82	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		3.00	%		3.17	%		3.71	%		3.46	%		4.08	%		4.36	%
Supplemental data
Portfolio turnover rate		9	%		30	%		41	%		23	%		41	%		23	%
Net assets, end of period (000s omitted)		$497,955			$470,368			$466,411			$506,770			$512,957			$483,091

¹  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo California Tax-Free Fund 21

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS B				2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.02			$11.97			$11.44			$11.60			$10.74			$10.91
Net investment income		0.14	1		0.30	1		0.34	1		0.32	1		0.38	1		0.39	1
Net realized and unrealized gains (losses) on investments		0.25			0.04			0.53			(0.16	)		0.86			(0.17	)
Total from investment operations		0.39			0.34			0.87			0.16			1.24			0.22
Distributions to shareholders from
Net investment income		(0.14	)		(0.29	)		(0.34	)		(0.32	)		(0.38	)		(0.39	)
Net asset value, end of period		$12.27			$12.02			$11.97			$11.44			$11.60			$10.74
Total return2		3.24	%		2.87	%		7.76	%		1.33	%		11.66	%		2.06	%
Ratios to average net assets (annualized)
Gross expenses		1.58	%		1.58	%		1.58	%		1.58	%		1.58	%		1.56	%
Net expenses		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Net investment income		2.26	%		2.45	%		2.97	%		2.72	%		3.37	%		3.57	%
Supplemental data
Portfolio turnover rate		9	%		30	%		41	%		23	%		41	%		23	%
Net assets, end of period (000s omitted)		$135			$168			$502			$966			$1,618			$2,566

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

22 Wells Fargo California Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.02			$11.96			$11.43			$11.59			$10.74			$10.90
Net investment income		0.14			0.29			0.34			0.32			0.38			0.39
Net realized and unrealized gains (losses) on investments		0.24			0.06			0.53			(0.16	)		0.85			(0.16	)
Total from investment operations		0.38			0.35			0.87			0.16			1.23			0.23
Distributions to shareholders from
Net investment income		(0.14	)		(0.29	)		(0.34	)		(0.32	)		(0.38	)		(0.39	)
Net asset value, end of period		$12.26			$12.02			$11.96			$11.43			$11.59			$10.74
Total return1		3.16	%		2.96	%		7.77	%		1.33	%		11.56	%		2.16	%
Ratios to average net assets (annualized)
Gross expenses		1.58	%		1.58	%		1.58	%		1.58	%		1.58	%		1.57	%
Net expenses		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Net investment income		2.26	%		2.42	%		2.96	%		2.70	%		3.31	%		3.61	%
Supplemental data
Portfolio turnover rate		9	%		30	%		41	%		23	%		41	%		23	%
Net assets, end of period (000s omitted)		$55,373			$50,787			$45,934			$46,050			$44,920			$33,772

¹  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo California Tax-Free Fund 23

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.81			$11.75			$11.23			$11.39			$10.55			$10.71
Net investment income		0.20			0.40			0.44			0.43			0.48			0.48
Net realized and unrealized gains (losses) on investments		0.24			0.06			0.52			(0.16	)		0.84			(0.16	)
Total from investment operations		0.44			0.46			0.96			0.27			1.32			0.32
Distributions to shareholders from
Net investment income		(0.20	)		(0.40	)		(0.44	)		(0.43	)		(0.48	)		(0.48	)
Net asset value, end of period		$12.05			$11.81			$11.75			$11.23			$11.39			$10.55
Total return1		3.68	%		3.95	%		8.79	%		2.27	%		12.67	%		3.10	%
Ratios to average net assets (annualized)
Gross expenses		0.77	%		0.77	%		0.77	%		0.77	%		0.76	%		0.75	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		3.20	%		3.39	%		3.91	%		3.65	%		4.26	%		4.54	%
Supplemental data
Portfolio turnover rate		9	%		30	%		41	%		23	%		41	%		23	%
Net assets, end of period (000s omitted)		$280,974			$210,265			$273,026			$231,383			$179,670			$118,170

¹  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 California Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151
INSTITUTIONAL CLASS
Net asset value, beginning of period		$11.81			$11.99
Net investment income		0.20			0.27
Net realized and unrealized gains (losses) on investments		0.24			(0.18	)
Total from investment operations		0.44			0.09
Distributions to shareholders from
Net investment income		(0.20	)		(0.27	)
Net asset value, end of period		$12.05			$11.81
Total return2		3.72	%		0.72	%
Ratios to average net assets (annualized)
Gross expenses		0.50	%		0.50	%
Net expenses		0.48	%		0.48	%
Net investment income		3.28	%		3.35	%
Supplemental data
Portfolio turnover rate		9	%		30	%
Net assets, end of period (000s omitted)		$168,034			$149,368

¹ For the period from October 31, 2014 (commencement of class operations) to June 30, 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 (unaudited) Wells Fargo California Tax-Free 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 California Tax-Free Fund (the “Fund”) which is a non-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.

26 Wells Fargo California Tax-Free Fund Notes to financial statements (unaudited)

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 and tax-exempt 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.

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of June 30, 2015, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

	No expiration
2018	Short-term
$1,227,211	$7,857,297

As of June 30, 2015, the Fund had $1,294,721 of current year deferred post-October capital losses, which was recognized on the first day of the current fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 (unaudited) Wells Fargo California Tax-Free Fund 27

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	976,212,810	$	0	$	976,212,810
Other		0		2,479,525		0		2,479,525
Short-term investments
Investment companies		25,177,860		0		0		25,177,860
Total assets	$	25,177,860	$	978,692,335	$	0	$	1,003,870,195

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.39% of the Fund’s average daily net assets.

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

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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class A shares, 1.50% for Class B shares, 1.50% for Class C shares 0.55% for Administrator Class shares, and 0.48% 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.

28 Wells Fargo California Tax-Free Fund Notes to financial statements (unaudited)

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 six months ended December 31, 2015, Funds Distributor received $14,788 from the sale of Class A shares and $1,784 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 are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $181,726,941 and $71,982,811, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $651 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

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.

Other information (unaudited) Wells Fargo California Tax-Free Fund 29

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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 California Tax-Free 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

Other information (unaudited) Wells Fargo California Tax-Free Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

32 Wells Fargo California Tax-Free 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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398831 02-16 SA249/SAR249 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Colorado Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	17
Other information	21
List of abbreviations	24

The views expressed and any forward-looking statements are as of December 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 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 Colorado Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Colorado Tax-Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 in billion municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Colorado Tax-Free Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Colorado Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and Colorado individual income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Terry J. Goode

Adrian Van Poppel

Average annual total returns (%) as of December 30, 2015¹

		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 (NWCOX)	7-31-1995		(1.32	)		4.71		3.74		3.33		5.67		4.22		0.93		0.85
Class C (WCOTX)	3-31-2008		1.56			4.91		3.43		2.56		4.91		3.43		1.68		1.60
Administrator Class (NCOTX)	8-23-1993		–			–		–		3.59		5.94		4.48		0.87		0.60
Barclays Municipal Bond Index4	–		–			–		–		3.30		5.35		4.72		–		–
Barclays Colorado Municipal Bond Index5	–		–			–		–		3.54		6.11		5.14		–		–

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, wellsfargofunds.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 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 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 Fund is exposed to Colorado municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Colorado Tax-Free Fund 5

Credit quality (%) as of December 31, 2015⁶

Effective maturity distribution as of December 31, 2015⁷

¹  Historical performance shown for Class C shares prior to their inception reflects the performance of Class A shares, adjusted to reflect the higher expenses applicable to Class C shares.

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 October 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 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 Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays Colorado Municipal Bond Index is the Colorado component of the Barclays Municipal Bond Index. You cannot invest directly in an index.

⁶  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.

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

6 Wells Fargo Colorado Tax-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,032.93	$	4.34		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	1,029.04	$	8.16		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,034.23	$	3.07		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%

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—December 31, 2015 (unaudited) Wells Fargo Colorado Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 95.58%
Arizona: 1.16%
Phoenix AZ IDA Rowan University Project (Education Revenue)		5.25	%		6-1-2034	$	1,000,000	$	1,120,500
California: 2.57%
Inglewood CA Unified School District (Tax Revenue, AGM Insured)		5.25			10-15-2021		1,000,000		1,167,580
Norco CA Redevelopment Agency Project Area #1 (Tax Revenue)		6.00			3-1-2036		1,120,000		1,307,925
									2,475,505
Colorado: 86.76%
Adams County CO Certificate of Participation Refunding Bonds (Miscellaneous Revenue)		5.00			12-1-2034		500,000		582,880
Adams County CO Rangeview Library District Certificate of Participation Series 2015 (Miscellaneous Revenue, AGM Insured)		5.00			12-15-2029		1,000,000		1,189,190
Arapahoe County CO Centennial 25 Metropolitan District (GO Revenue)		6.38			12-1-2016		70,000		70,351
Arapahoe County CO Copperleaf Metropolitan District (GO Revenue)		5.75			12-1-2045		500,000		522,815
Arapahoe County CO Water & Wastewater Authority (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2033		500,000		532,355
Arvada CO Jefferson Center Metropolitan District (Tax Revenue)		4.75			12-1-2026		1,000,000		1,014,800
Aspen Valley CO Hospital Refunding District Bonds Series 2012 (Health Revenue)		5.00			10-15-2033		600,000		652,422
Aurora CO Certificate of Participation Refunding Bonds Series 2009A (Miscellaneous Revenue)		5.00			12-1-2027		2,000,000		2,254,700
Aurora CO E-470 Public Highway Authority Colorado CAB Series A (Miscellaneous Revenue, National Insured) ¤		0.00			9-1-2034		4,000,000		1,973,800
Aurora CO First Lien Water Improvement Bonds Series 2007A (Water & Sewer Revenue, Ambac Insured)		5.00			8-1-2039		1,000,000		1,057,050
Canon City CO Finance Authority Certificate of Participation Series 2008 (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2032		150,000		163,749
Colorado Board of Governors State University System Enterprise Bonds Series 2013C (Education Revenue)		5.25			3-1-2033		725,000		841,631
Colorado Board of Governors State University System Enterprise Bonds Series E1 (Education Revenue)		5.00			3-1-2040		2,000,000		2,318,420
Colorado ECFA Alexander Dawson School LLC Project (Education Revenue)		5.00			2-15-2040		1,000,000		1,100,200
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.25			12-1-2028		1,000,000		1,190,590
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.38			12-1-2028		1,000,000		1,194,160
Colorado ECFA Charter School Aspen Ridge School Project Series 2015A (Education Revenue) 144A		4.13			7-1-2026		625,000		634,831
Colorado ECFA Charter School Banning Lewis Ranch Academy Project (Education Revenue) 144A		6.13			12-15-2035		425,000		427,036
Colorado ECFA Charter School Collegiate Project (Education Revenue, Syncora Guarantee Incorporated Insured)		5.00			6-15-2019		855,000		857,642
Colorado ECFA Charter School Collegiate Project (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25			6-15-2024		1,140,000		1,142,964
Colorado ECFA Charter School District Montessori Charter School Project (Miscellaneous Revenue)		5.00			7-15-2037		1,150,000		1,240,264
Colorado ECFA Charter School Pinnacle High School Project (Education Revenue)		5.13			12-1-2039		500,000		528,920
Colorado ECFA Charter School Refunding and Improvement Bonds Skyview Academy Project Series 2014 (Education Revenue) 144A		4.13			7-1-2024		500,000		515,195
Colorado ECFA Charter School Refunding and Improvement Bonds University Laboratory School Project 2015 (Education Revenue) 144A		5.00			12-15-2028		600,000		630,240
Colorado ECFA Charter School Refunding and Improvement Bonds University Laboratory School Project 2015 (Education Revenue) 144A		4.00			12-15-2025		535,000		534,123

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

8 Wells Fargo Colorado Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Colorado ECFA Cheyenne Mountain Charter School Series A (Education Revenue)		5.25	%		6-15-2029	$	590,000	$	606,632
Colorado ECFA Refunding Bonds The University Corporation for Atmosphere Research Project Series 2010 (Education Revenue)		5.00			9-1-2032		1,265,000		1,415,459
Colorado ECFA Refunding Bonds The University Corporation for Atmosphere Research Project Series B (Education Revenue)		5.00			9-1-2030		1,770,000		2,012,933
Colorado ECFA Student Housing Campus Village Apartment (Miscellaneous Revenue)		5.50			6-1-2033		1,735,000		1,885,824
Colorado ECFA Twin Peaks Charter Academy (Education Revenue)		6.75			11-15-2028		750,000		869,355
Colorado Health Facilities Authority Adventist Health Sunbelt Series D (Health Revenue)		5.25			11-15-2027		1,000,000		1,040,860
Colorado Health Facilities Authority Adventist Health Sunbelt Series D (Health Revenue)		5.25			11-15-2035		1,000,000		1,040,860
Colorado Health Facilities Authority Catholic Health Initiatives Series D1 (Health Revenue)		6.25			10-1-2033		1,000,000		1,124,580
Colorado Health Facilities Authority Covenant Retirement Communities Series 2012C (Health Revenue)		5.00			12-1-2022		1,000,000		1,135,310
Colorado Health Facilities Authority Deutsche Bank SPEAR/LIFER Trust Series 1131 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.15			12-1-2042		1,185,000		1,185,000
Colorado Health Facilities Authority Evangelical Lutheran Good Samaritan Society Series 2015A (Health Revenue)		5.00			6-1-2040		1,000,000		1,085,970
Colorado Health Facilities Authority Sisters of Charity Leavenworth Health System Series 2013A (Health Revenue)		5.50			1-1-2035		1,000,000		1,184,450
Colorado Health Facilities Authority Sunny Vista Living Center Series A (Health Revenue)		5.00			12-1-2025		670,000		671,012
Colorado HFA Waste Management Incorporated Project (Miscellaneous Revenue)		5.70			7-1-2018		500,000		556,300
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		1,200,000		1,290,708
Colorado Park Creek Metropolitan District Refunding Bonds Series A (Tax Revenue)		5.00			12-1-2045		500,000		556,165
Colorado Regents of the University of Colorado Certificate of Participation Series 2013A (Education Revenue)		5.00			11-1-2028		2,000,000		2,354,920
Colorado Regional Transportation District Certificate of Participation Taxable Bonds Series 2014A (Miscellaneous Revenue)		5.00			6-1-2044		2,000,000		2,245,780
Colorado Regional Transportation District Certificate of Participation Tax-Exempt Bonds Series 2010A (Miscellaneous Revenue)		5.38			6-1-2031		2,500,000		2,853,800
Colorado Regional Transportation District Certificate of Participation Transit Vehicles Taxable Bonds Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2022		1,000,000		1,068,820
Colorado Regional Transportation District Fastracks Project Revenue Bonds Series 2013A (Tax Revenue)		5.00			11-1-2031		1,000,000		1,191,400
Colorado Springs CO Utilities System Improvement Revenue Bonds Series 2013 B-2 (Utilities Revenue)		5.00			11-15-2038		3,000,000		3,433,650
Colorado Springs CO Utilities System Sub Lien Improvement Series B (Utilities Revenue, Bayerische Landesbank SPA) ø		0.13			11-1-2036		500,000		500,000
Colorado Water Reserve Power Development Authority Clean Water Series A (Water & Sewer Revenue)		4.50			9-1-2024		900,000		903,177
Commerce City CO Sales & Use Tax Bonds Series 2014 (Tax Revenue, AGM Insured)		5.00			8-1-2044		1,250,000		1,415,675
Denver CO City & County Department of Aviation Airport System Revenue Bonds Series 2012B (Airport Revenue)		5.00			11-15-2030		2,000,000		2,356,720
Denver CO City & County Excise Tax Series A (Tax Revenue, AGC Insured)		6.00			9-1-2021		2,000,000		2,328,940
Denver CO Convention Center (Tax Revenue, Syncora Guarantee Incorporated Insured)		5.00			12-1-2030		1,205,000		1,227,160
Denver CO School District No. 1 Certificate of Participation Series B (Miscellaneous Revenue)		5.00			12-15-2035		1,000,000		1,158,880
Denver CO School District No. 1 Certificate of Participation Series B (Miscellaneous Revenue)		5.00			12-15-2045		1,200,000		1,363,164
Douglas County CO Stonegate Village Metropolitan District (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2045		525,000		593,282

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Colorado Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
East Cherry Creek Valley CO Water and Sanitation District (Water & Sewer Revenue)		5.00	%		11-15-2032	$	750,000	$	894,293
El Paso County CO School District #49 (Miscellaneous Revenue, National Insured)		5.00			12-15-2027		1,430,000		1,544,543
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		1,350,000		1,388,867
Fremont County CO Finance Corporation Certificate of Participation Series 2013 (Miscellaneous Revenue)		5.25			12-15-2038		1,265,000		1,416,964
Garfield County CO Public Library District Lease Purchase Financing Program (Miscellaneous Revenue)		5.00			12-1-2026		715,000		796,360
Glendale CO Certificate of Participation Series 2006 (Miscellaneous Revenue, Syncora Guarantee Incorporated Insured)		5.00			12-1-2025		1,000,000		1,040,800
Longmont CO Certificates of Participation Series 2014 (Miscellaneous Revenue)		5.00			12-1-2034		1,000,000		1,147,570
Park Meadows CO Business Improvement District (Tax Revenue)		5.00			12-1-2017		105,000		110,203
Platte Valley CO Fire Protection District (Miscellaneous Revenue)		5.00			12-1-2036		325,000		344,952
Thornton CO Development Authority East 144th Avenue and I-25 Project Series B (Tax Revenue)		5.00			12-1-2034		1,375,000		1,544,084
University of Colorado Enterprise System Series A (Education Revenue)		5.00			6-1-2026		1,000,000		1,158,750
University of Colorado Hospital Authority Series A (Health Revenue)		6.00			11-15-2029		2,000,000		2,302,260
Weld County CO Eaton Area Park and Recreation District Series 2015 (GO Revenue)		5.50			12-1-2038		1,075,000		1,138,242
Westminster CO Certificate of Participation Series 2015A (Miscellaneous Revenue)		5.00			12-1-2035		2,000,000		2,329,660
Wheatlands CO (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2030		500,000		583,890
									83,568,552
Guam: 1.73%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,110,810
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.75			12-1-2034		500,000		556,895
									1,667,705
Maryland: 0.49%
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00			6-1-2027		235,000		254,533
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00			6-1-2030		200,000		213,782
									468,315
Pennsylvania: 1.70%
East Hempfield Township PA IDA Student Services Incorporated Student Housing Project of Millersville University (Education Revenue)		5.00			7-1-2029		500,000		537,220
Pennsylvania Higher Education Facilities Authority Indiana University Student Housing Project Series A (Education Revenue)		5.00			7-1-2032		1,000,000		1,095,050
									1,632,270
Virgin Islands: 1.17%
Virgin Islands PFA Matching Fund Loan Note Senior Lien (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2029		1,000,000		1,129,936
Total Municipal Obligations (Cost $85,475,725)									92,062,783

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

10 Wells Fargo Colorado Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

	Yield			Shares		Value
Short-Term Investments: 3.84%
Investment Companies: 3.84%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)		0.01	%		3,702,500	$	3,702,500
Total Short-Term Investments (Cost $3,702,500)							3,702,500

Total investments in securities (Cost $89,178,225) *	99.42	%		95,765,283
Other assets and liabilities, net	0.58			555,519
Total net assets	100.00	%	$	96,320,802

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

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.

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.

(l) The issuer of the security is an affiliated person 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 $89,177,944 and unrealized gains (losses) consists of:

Gross unrealized gains	$	6,603,303
Gross unrealized losses		(15,964	)
Net unrealized gains	$	6,587,339

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

Statement of assets and liabilities—December 31, 2015 (unaudited) Wells Fargo Colorado Tax-Free Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $85,475,725)	$	92,062,783
In affiliated securities, at value (cost $3,702,500)		3,702,500
Total investments, at value (cost $89,178,225)		95,765,283
Receivable for Fund shares sold		28,916
Receivable for interest		780,207
Prepaid expenses and other assets		11,614
Total assets		96,586,020
Liabilities
Dividends payable		133,254
Payable for Fund shares redeemed		57,983
Management fee payable		19,899
Distribution fee payable		3,435
Administration fees payable		11,129
Shareholder servicing fees payable		22,266
Professional fees payable		17,252
Total liabilities		265,218
Total net assets	$	96,320,802
NET ASSETS CONSIST OF
Paid-in capital	$	90,911,698
Undistributed net investment income		298,072
Accumulated net realized losses on investments		(1,476,026	)
Net unrealized gains on investments		6,587,058
Total net assets	$	96,320,802
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	35,286,290
Shares outstanding – Class A1		3,175,123
Net asset value per share – Class A		$11.11
Maximum offering price per share – Class A2		$11.63
Net assets – Class C	$	5,021,212
Shares outstanding – Class C1		451,403
Net asset value per share – Class C		$11.12
Net assets – Administrator Class	$	56,013,300
Shares outstanding – Administrator Class1		5,040,140
Net asset value per share – Administrator Class		$11.11

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.

12 Wells Fargo Colorado Tax-Free Fund Statement of operations—six months ended December 31, 2015 (unaudited)

Investment income
Interest	$	1,843,571
Income from affiliated securities		98
Total investment income		1,843,669
Expenses
Management fee		190,215
Administration fees
Class A		28,014
Class C		3,770
Administrator Class		27,689
Shareholder servicing fees
Class A		43,772
Class C		5,891
Administrator Class		69,221
Distribution fee
Class C		17,673
Custody and accounting fees		5,411
Professional fees		22,090
Registration fees		9,121
Shareholder report expenses		1,414
Trustees’ fees and expenses		9,286
Other fees and expenses		3,711
Total expenses		437,278
Less: Fee waivers and/or expense reimbursements		(84,620	)
Net expenses		352,658
Net investment income		1,491,011
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(30,018	)
Net change in unrealized gains (losses) on investments		1,695,400
Net realized and unrealized gains (losses) on investments		1,665,382
Net increase in net assets resulting from operations	$	3,156,393

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

Statement of changes in net assets Wells Fargo Colorado Tax-Free Fund 13

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	1,491,011					$	2,765,609
Net realized gains (losses) on investments					(30,018	)					239,821
Net change in unrealized gains (losses) on investments					1,695,400						235,851
Net increase in net assets resulting from operations					3,156,393						3,241,281
Distributions to shareholders from
Net investment income
Class A					(529,740	)					(1,059,973	)
Class B					N/A						(102	)1
Class C					(53,756	)					(86,629	)
Administrator Class					(907,515	)					(1,618,905	)
Total distributions to shareholders					(1,491,011	)					(2,765,609	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		169,964			1,869,509			195,576			2,149,912
Class C		76,356			840,908			106,467			1,175,015
Administrator Class		601,574			6,606,061			1,336,343			14,710,217
					9,316,478						18,035,144
Reinvestment of distributions
Class A		45,883			505,484			92,820			1,022,854
Class B		N/A			N/A			9	1		102	1
Class C		4,417			48,716			7,438			82,034
Administrator Class		27,706			305,230			50,754			559,409
					859,430						1,664,399
Payment for shares redeemed
Class A		(129,566	)		(1,421,131	)		(433,987	)		(4,763,158	)
Class B		N/A			N/A			(1,826	)1		(20,041	)1
Class C		(11,239	)		(123,919	)		(71,751	)		(781,903	)
Administrator Class		(379,075	)		(4,163,679	)		(678,121	)		(7,490,164	)
					(5,708,729	)					(13,055,266	)
Net increase in net assets resulting from capital share transactions					4,467,179						6,644,277
Total increase in net assets					6,132,561						7,119,949
Net assets
Beginning of period					90,188,241						83,068,292
End of period				$	96,320,802					$	90,188,241
Undistributed net investment income				$	298,072					$	298,072

¹  For the period from July 1, 2014 to January 6, 2015. Class B shares of the Fund were no longer offered to shareholders effective January 7, 2015.

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

14 Wells Fargo Colorado Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.92			$10.85			$10.46			$10.72			$10.15			$10.35
Net investment income		0.17			0.34	1		0.35	1		0.34			0.38			0.44
Net realized and unrealized gains (losses) on investments		0.19			0.07			0.39			(0.26	)		0.57			(0.21	)
Total from investment operations		0.36			0.41			0.74			0.08			0.95			0.23
Distributions to shareholders from
Net investment income		(0.17	)		(0.34	)		(0.35	)		(0.34	)		(0.38	)		(0.43	)
Net asset value, end of period		$11.11			$10.92			$10.85			$10.46			$10.72			$10.15
Total return2		3.29	%		3.82	%		7.26	%		0.65	%		9.51	%		2.34	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.93	%		0.94	%		0.91	%		0.91	%		0.89	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		3.03	%		3.12	%		3.35	%		3.10	%		3.64	%		4.25	%
Supplemental data
Portfolio turnover rate		10	%		23	%		33	%		36	%		41	%		22	%
Net assets, end of period (000s omitted)		$35,286			$33,722			$35,088			$46,069			$53,185			$48,218

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo Colorado Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.93			$10.86			$10.47			$10.73			$10.16			$10.36
Net investment income		0.13			0.26			0.28			0.26			0.30			0.36
Net realized and unrealized gains (losses) on investments		0.19			0.07			0.38			(0.26	)		0.57			(0.20	)
Total from investment operations		0.32			0.33			0.66			0.00			0.87			0.16
Distributions to shareholders from
Net investment income		(0.13	)		(0.26	)		(0.27	)		(0.26	)		(0.30	)		(0.36	)
Net asset value, end of period		$11.12			$10.93			$10.86			$10.47			$10.73			$10.16
Total return1		2.90	%		3.05	%		6.46	%		(0.10	)%		8.69	%		1.57	%
Ratios to average net assets (annualized)
Gross expenses		1.67	%		1.68	%		1.69	%		1.67	%		1.66	%		1.64	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.28	%		2.35	%		2.60	%		2.34	%		2.89	%		3.50	%
Supplemental data
Portfolio turnover rate		10	%		23	%		33	%		36	%		41	%		22	%
Net assets, end of period (000s omitted)		$5,021			$4,173			$3,689			$4,460			$4,012			$3,763

¹  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

16 Wells Fargo Colorado Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.92			$10.85			$10.46			$10.72			$10.15			$10.35
Net investment income		0.18			0.37			0.38			0.36			0.41			0.46
Net realized and unrealized gains (losses) on investments		0.19			0.07			0.39			(0.26	)		0.57			(0.20	)
Total from investment operations		0.37			0.44			0.77			0.10			0.98			0.26
Distributions to shareholders from
Net investment income		(0.18	)		(0.37	)		(0.38	)		(0.36	)		(0.41	)		(0.46	)
Net asset value, end of period		$11.11			$10.92			$10.85			$10.46			$10.72			$10.15
Total return1		3.42	%		4.08	%		7.53	%		0.90	%		9.78	%		2.59	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.87	%		0.88	%		0.86	%		0.84	%		0.83	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.28	%		3.36	%		3.60	%		3.34	%		3.89	%		4.51	%
Supplemental data
Portfolio turnover rate		10	%		23	%		33	%		36	%		41	%		22	%
Net assets, end of period (000s omitted)		$56,013			$52,294			$44,272			$49,549			$43,876			$39,021

¹  Returns for periods of less than one year are not annualized.

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

Notes to financial statements (unaudited) Wells Fargo Colorado Tax-Free Fund 17

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 Colorado Tax-Free Fund (the “Fund”) which is a non-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.

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.

18 Wells Fargo Colorado Tax-Free Fund Notes to financial statements (unaudited)

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss 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.

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of June 30, 2015, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

		No expiration
2018	2019	Short-term
$548,785	$57,793	$821,856

As of June 30, 2015, the Fund had $17,856 of current year deferred post-October capital losses which was recognized on the first day of the current fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	92,062,783	$	0	$	92,062,783
Short-term investments
Investment companies		3,702,500		0		0		3,702,500
Total assets	$	3,702,500	$	92,062,783	$	0	$	95,765,283

Notes to financial statements (unaudited) Wells Fargo Colorado Tax-Free Fund 19

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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 C		0.16	%
Administrator Class		0.10

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 October 31, 2016 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 C shares, and 0.60% for Administrator 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 six months ended December 31, 2015, Funds Distributor received $4,880 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 Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

20 Wells Fargo Colorado Tax-Free Fund Notes to financial statements (unaudited)

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $19,783,302 and $8,907,498, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $65 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

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.

Other information (unaudited) Wells Fargo Colorado Tax-Free Fund 21

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 wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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.

22 Wells Fargo Colorado Tax-Free 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

Other information (unaudited) Wells Fargo Colorado Tax-Free Fund 23

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

24 Wells Fargo Colorado Tax-Free 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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398832 02-16 SA250/SAR250 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo High Yield Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	22
Other information	27
List of abbreviations	30

The views expressed and any forward-looking statements are as of December 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 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 High Yield Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo High Yield Municipal Bond Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases. In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

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

Investment objective

The Fund seeks high current income exempt from federal income tax, and capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Dennis Derby

Lyle J. Fitterer, CFA^®, CPA

Terry J. Goode

Average annual total returns (%) as of December 31, 2015

		Including sales charge					Excluding sales charge				Expense ratios1 (%)
	Inception date	1 year			Since inception		1 year		Since inception		Gross		Net2
Class A (WHYMX)	1-31-2013		(0.15	)		4.41		4.52		6.07		1.08		0.86
Class C (WHYCX)	1-31-2013		2.74			5.29		3.74		5.29		1.83		1.61
Administrator Class (WHYDX)	1-31-2013		–			–		4.62		6.17		1.02		0.76
Institutional Class (WHYIX)	1-31-2013		–			–		4.78		6.34		0.75		0.61
Barclays Municipal Bond Index3	–		–			–		3.30		3.10		–		–
Barclays High Yield Municipal Bond Index4	–		–			–		1.81		2.77		–		–

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, wellsfargofunds.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 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. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Credit quality (%) as of December 31, 2015⁵

Effective maturity distribution as of December 31. 2015⁶

¹  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.

²  The manager has contractually committed through October 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 0.85% for Class A, 1.60% for Class C, 0.75% for Administrator Class, and 0.60% for Institutional 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.

³  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁴  The Barclays High Yield Municipal Bond Index is an index consisting of all domestic and Yankee bonds, rated below investment grade, with aminimum outstanding amount of $100 million and maturing over one year. You cannot invest directly in an index.

⁵  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  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 High Yield Municipal 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,043.06	$	4.37		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	1,039.16	$	8.20		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,043.58	$	3.85		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.37	$	3.81		0.75	%
Institutional Class
Actual	$	1,000.00	$	1,044.37	$	3.08		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%

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—December 31, 2015 (unaudited) Wells Fargo High Yield Municipal Bond Fund 7

Security name						Shares		Value
Exchange-Traded Funds: 2.37%
iShares iBoxx $ High Yield Corporate Bond ETF «							33,000	$	2,659,140
Total Exchange-Traded Funds (Cost $2,681,153)									2,659,140
	Interest rate			Maturity date		Principal
Municipal Obligations: 96.19%
Alabama: 1.38%
Alabama State University General Tuition and Fee Revenue Bonds (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25	%		8-1-2032	$	1,000,000		1,000,750
Jefferson County AL Sewer Revenue Warrants CAB Senior Lien Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2027		920,000		554,990
									1,555,740
Arizona: 3.84%
Florence AZ IDA Legacy Traditional School Project Queen Creek & Casa Grande Campuses (Education Revenue)		5.00			7-1-2023		250,000		266,730
Navajo Nation Refunding Bond Series A (GO Revenue) 144A		5.50			12-1-2030		1,000,000		1,098,560
Phoenix AZ IDA Great Hearts Academies Project (Education Revenue)		5.20			7-1-2022		180,000		189,101
Phoenix AZ IDA Guam Facilities Foundation Incorporated Project (Industrial Development Revenue)		5.00			2-1-2018		1,000,000		1,040,900
Phoenix AZ IDA Legacy Traditional Schools Project Series A (Education Revenue) 144A		6.50			7-1-2034		500,000		559,500
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		500,000		492,395
Pima County AZ IDA Refunding Bond Desert Heights Charter School Facility (Education Revenue)		6.00			5-1-2024		635,000		676,459
									4,323,645
California: 4.38%
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		500,000		567,670
California CDA California Baptist University Series B (Education Revenue) 144A		5.75			11-1-2017		100,000		102,348
California Municipal Finance Authority Charter School Revenue Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		250,000		290,623
California School Finance Authority View Park Elementary & Middle Schools Series A (Education Revenue)		5.88			10-1-2044		1,000,000		1,060,950
California Statewide CDA Loma Linda University Medical Center Refunding Bond Series A (Health Revenue)		5.25			12-1-2044		1,000,000		1,054,170
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series D (Health Revenue)		4.75			8-1-2020		1,000,000		1,003,350
California Student Education Loan Marketing Corporation Series IV-D1 (Education Revenue)		5.88			1-1-2018		500,000		498,840
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		4.75			8-1-2019		225,000		240,381
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		5.00			8-1-2020		100,000		108,838
									4,927,170
Colorado: 5.83%
Arapahoe County CO Copperleaf Metropolitan District (GO Revenue)		5.75			12-1-2045		500,000		522,815
Arvada CO Jefferson Center Metropolitan District (Tax Revenue)		4.75			12-1-2026		1,280,000		1,298,944
Colorado E-470 Public Highway Authority CAB Series A (Miscellaneous Revenue, National Insured) ¤		0.00			9-1-2027		500,000		343,650
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		500,000		537,795

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

8 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Eaton CO Area Park & Recreation District (GO Revenue)		5.00	%		12-1-2023	$	810,000	$	863,533
Eaton CO Area Park & Recreation District (GO Revenue)		5.50			12-1-2030		475,000		511,718
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		1,750,000		1,800,383
Public Authority for Colorado Energy Natural Gas Purchase (Utilities Revenue, Merrill Lynch & Company Guaranty Agreement)		6.50			11-15-2038		500,000		676,975
									6,555,813
Delaware: 0.89%
Delaware EDA Odyssey Charter School Incorporated Project Series A (Education Revenue) 144A		7.00			9-1-2045		1,000,000		1,004,560
District of Columbia: 0.39%
District of Columbia Tobacco Settlement Financing Corporation (Tobacco Revenue)		6.75			5-15-2040		435,000		435,083
Florida: 3.18%
Crossings At Fleming Island Florida Community Development District Refunding Bond Senior Lien Series A-1 (Miscellaneous Revenue)		4.00			5-1-2024		1,000,000		1,012,700
Florida Development Finance Corporation Educational Facilities Revenue Renaissance Charter School Project Series A (Education Revenue)		8.50			6-15-2044		250,000		290,543
Holmes County FL Hospital Corporation Doctors Memorial Hospital Project (Health Revenue)		6.00			11-1-2038		250,000		250,438
Miami-Dade County FL IDA Youth Co-Op Charter Schools Project Series A (Education Revenue) 144A		6.00			9-15-2045		1,000,000		1,020,530
Trout Creek Florida Community Development District (Miscellaneous Revenue)		4.88			5-1-2025		1,000,000		1,002,540
									3,576,751
Georgia: 1.28%
Cobb County GA Development Authority Student Housing Refunding Bond Kennesaw State University Foundation Project Series C (Housing Revenue)		5.00			7-15-2028		800,000		884,608
Georgia Road & Tollway Authority Toll Revenue Convertible CAB I-75 South Expressway Lanes Project Series B (Transportation Revenue) 144A±		0.00			6-1-2049		1,000,000		560,000
									1,444,608
Guam: 0.27%
Guam International Airport Authority Series C (Airport Revenue)		6.38			10-1-2043		260,000		305,230
Idaho: 0.42%
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		6.50			12-1-2038		200,000		210,866
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		6.25			5-1-2043		250,000		262,705
									473,571
Illinois: 16.69%
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		500,000		342,850
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2024		1,000,000		645,210
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2025		500,000		305,060

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo High Yield Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00	%		12-1-2028	$	1,000,000	$	511,540
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.01			3-1-2032		1,000,000		999,280
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2021		250,000		250,780
Chicago IL Midway Airport Refunding Bond Second Lien Series A (Airport Revenue)		5.00			1-1-2031		1,000,000		1,113,470
Chicago IL O’Hare International Airport Revenue Bond Series B (Airport Revenue)		6.00			1-1-2041		150,000		177,005
Chicago IL Sales Tax Revenue (Tax Revenue)		5.00			1-1-2032		1,500,000		1,619,505
Chicago IL Sales Tax Revenue Series A (Tax Revenue)		5.00			1-1-2041		1,000,000		1,043,660
Chicago IL Series A (GO Revenue)		5.00			1-1-2033		310,000		310,000
Chicago IL Series A (GO Revenue)		5.25			1-1-2023		500,000		516,370
Chicago IL Series B (GO Revenue)		5.50			1-1-2032		700,000		745,472
Chicago IL Transit Authority Sales Tax Receipts Revenue Bonds (Tax Revenue, AGM Insured)		5.00			12-1-2044		1,000,000		1,103,530
Chicago IL Waste Water Transmission Second Lien Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		600,000		610,128
Chicago IL Water Revenue Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		500,000		506,785
Cook County IL School District #144 Prairie Hills CAB Refunding Bond Series C (GO Revenue, AGM Insured) ¤		0.00			12-1-2025		1,080,000		711,364
Illinois (GO Revenue)		5.00			3-1-2033		2,000,000		2,095,980
Illinois (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.50			7-1-2025		525,000		604,585
Illinois (Miscellaneous Revenue)		5.50			7-1-2025		250,000		279,255
Illinois Finance Authority Charter School Aid Intrinsic Schools Belmont School Project Series A (Education Revenue) 144A		5.25			12-1-2025		800,000		802,416
Illinois Finance Authority Charter School Refunding Bond Series A (Education Revenue)		6.88			10-1-2031		725,000		790,656
Illinois Finance Authority Educational Facility Senior Rogers Park Montessori School (Miscellaneous Revenue)		6.00			2-1-2034		680,000		711,389
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		500,000		564,095
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2025		1,000,000		682,110
Lake County IL Community Unit School District #187 North Chicago Series A (GO Revenue, AGM Insured) ¤		0.00			1-1-2023		590,000		427,962
Sangamon County IL School District #186 Certificate of Participation Hay-Edwards Elementary School Project Series A (Miscellaneous Revenue, ACA Insured)		5.88			8-15-2018		85,000		81,513
Sangamon County IL School District #186 Certificate of Participation Hay-Edwards Elementary School Project Series A (Miscellaneous Revenue, ACA Insured)		6.13			8-15-2023		250,000		224,275
									18,776,245
Indiana: 2.50%
Indiana Business Finance Authority Refunding Bond Marquette Project Series A (Health Revenue)		5.00			3-1-2030		1,100,000		1,202,201
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2034		250,000		280,465
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2040		1,000,000		1,096,110
Valparaiso IN Pratt Paper LLC Project (Industrial Development Revenue)		5.88			1-1-2024		200,000		230,260
									2,809,036
Iowa: 0.89%
Coralville IA Certificate of Participation Series D (Miscellaneous Revenue)		5.25			6-1-2026		1,000,000		1,000,320

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

10 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Kansas: 1.20%
Wyandotte County KS Kansas City Sales Tax Special Obligation Vacation Village Project Area 4 – Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00	%		9-1-2034	$	4,400,000	$	1,353,386
Kentucky: 1.87%
Kentucky EDFA Refunding Bond Rosedale Green Project (Health Revenue)		5.50			11-15-2035		1,000,000		1,015,150
Kentucky EDFA Senior Revenue Bonds Next Generation Information Highway Project Series A (Miscellaneous Revenue)		5.00			1-1-2045		1,000,000		1,091,970
									2,107,120
Maryland: 0.90%
Prince Georges County MD Charter School Chesapeake Lighthouse Obligated Group Series A (Education Revenue) 144A		6.90			8-1-2041		1,000,000		1,012,680
Michigan: 10.96%
Charyl Stockwell Academy Michigan Public School Refunding Bond (Miscellaneous Revenue)		4.88			10-1-2023		500,000		501,565
Detroit MI Distribution of State Aid (GO Revenue)		4.50			11-1-2023		275,000		297,168
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2020		285,000		221,508
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2021		170,000		124,423
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2024		20,000		12,197
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2025		470,000		268,779
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2018		1,000,000		1,001,580
Michigan Finance Authority Limited Obligation Public School Academy Cesar Chavez Academy Project (Education Revenue)		5.00			2-1-2022		250,000		250,323
Michigan Finance Authority Refunding Bond Local Government Loan Program City of Detroit Financial Recovery Series F (Tax Revenue)		4.50			10-1-2029		1,000,000		1,056,980
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D4 (Water & Sewer Revenue)		5.00			7-1-2031		1,015,000		1,153,263
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2036		1,000,000		1,113,350
Michigan Finance Authority Refunding Notes Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		1,000,000		1,081,940
Michigan Finance Authority Refunding Notes Local Government Loan Program Series C (Miscellaneous Revenue)		5.00			11-1-2020		1,000,000		1,097,970
Michigan Municipal Bond Authority CAB Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2017		300,000		291,018
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.75			5-1-2027		950,000		960,099
Michigan Public Educational Facilities Authority Chandler Park Academy (Miscellaneous Revenue)		6.35			11-1-2028		225,000		225,380
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue) 144A		6.50			9-1-2037		200,000		120,004
Michigan Public Educational Facilities Authority Limited Obligation Crescent Academy (Education Revenue)		7.00			10-1-2036		322,500		333,242
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		1,000,000		1,021,600
Oakland County MI Economic Development Corporation The Academy of The Sacred Heart Project Series A (Education Revenue)		6.50			12-15-2036		250,000		250,405
Wayne County MI Building Improvement Series A (GO Revenue)		6.75			11-1-2039		960,000		939,418
									12,322,212

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo High Yield Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Minnesota: 1.68%
Deephaven MN Charter School Eagle Ridge Academy Project Series 2015-A (Education Revenue)		5.25	%		7-1-2037	$	240,000	$	247,978
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		4.40			7-1-2025		160,000		164,278
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		4.75			7-1-2028		500,000		516,610
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		5.00			7-1-2030		195,000		203,389
Minneapolis MN Student Housing Refunding Bond Riverton Community Housing Project (Housing Revenue)		4.70			8-1-2026		335,000		344,812
Minneapolis MN Student Housing Refunding Bond Riverton Community Housing Project (Housing Revenue)		4.80			8-1-2027		400,000		412,188
									1,889,255
Missouri: 0.89%
Blue Springs MO Special Obligation Tax Refunding & Improvement Adams Farm Project Series A (Tax Revenue)		4.00			6-1-2026		985,000		995,727
New Jersey: 4.71%
Essex County NJ Improvement Authority Lease Newark Project Series A (Miscellaneous Revenue)		6.25			11-1-2030		200,000		224,564
New Jersey EDA Continental Airlines Incorporated Project (Industrial Development Revenue)		5.25			9-15-2029		250,000		273,223
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue, National Insured)		5.00			3-1-2030		1,000,000		1,065,360
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		1,000,000		457,610
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		2,000,000		2,189,740
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2027		1,000,000		1,086,730
									5,297,227
New York: 7.61%
Green Island NY Power Authority Power System (Utilities Revenue)		6.00			12-15-2020		890,000		905,673
Hempstead NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		1,000,000		1,124,900
Monroe County NY Industrial Development Agency Continuing Development Services Project (Industrial Development Revenue, Citizens Bank LOC) ø		0.28			7-1-2027		2,910,000		2,910,000
New York NY American Airlines John F. Kennedy International Airport IDA (Industrial Development Revenue, American Airlines Guaranty Agreement)		7.63			8-1-2025		300,000		313,539
New York NY Housing Development Corporation Mortgage Refunding Bond 8 Spruce Street Class F (Housing Revenue)		4.50			2-15-2048		1,000,000		1,035,330
New York NY Series A-6 (GO Revenue, AGM Insured, Dexia Credit Local SPA) ø		0.24			11-1-2026		1,000,000		1,000,000
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		1,000,000		999,990
Westchester County NY Local Development Corporation Pace University Series A (Education Revenue)		5.00			5-1-2034		250,000		271,990
									8,561,422
North Carolina: 1.40%
North Carolina Department of Transportation Private Activity Bond AMT-I-77 Hot Lanes Project (Transportation Revenue)		5.00			6-30-2054		1,500,000		1,575,810

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

12 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Ohio: 2.39%
Maple Heights OH City School District Certificate of Participation (Miscellaneous Revenue)		6.00	%		11-1-2028	$	500,000	$	539,015
Ohio Air Quality Development Authority AMT Refunding Bond Pollution Control 1st Energy Series C (Industrial Development Revenue) ±		3.95			11-1-2032		1,000,000		1,033,080
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2039		1,000,000		1,114,360
									2,686,455
Oklahoma: 0.56%
Cherokee Nation of Oklahoma Health Care System Series 2006 (Health Revenue, ACA Insured) 144A		4.60			12-1-2021		615,000		625,492
Oregon: 0.95%
Multnomah County OR Hospital Facilities Authority Refunding Bond Mirabella South Waterfront Project Series A (Health Revenue)		5.00			10-1-2019		455,000		491,223
Polk County OR Hospital Facility Authority Revenue Bond Dallas Retirement Village Project Series 2015-A (Health Revenue)		5.00			7-1-2025		550,000		578,452
									1,069,675
Pennsylvania: 4.99%
Allegheny County PA IDA Propel Charter School Sunrise Project (Education Revenue)		5.25			7-15-2023		175,000		184,338
Allegheny County PA RDA Pittsburgh Mills Project (Tax Revenue)		5.60			7-1-2023		460,000		464,080
Chester County PA Health and Education Facilities Immaculata University Project (Education Revenue)		5.50			10-15-2025		1,000,000		1,021,040
East Hempfield Township PA IDA Student Services Incorporated Student Housing Project of Millersville University (Education Revenue)		5.00			7-1-2029		500,000		537,220
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue) %%		5.00			4-1-2026		1,655,000		1,930,193
Philadelphia PA IDA Tacony Academy Charter School Project (Education Revenue)		6.88			6-15-2033		375,000		422,711
Philadelphia PA State Public School Building Authority School District Project (Miscellaneous Revenue)		5.00			4-1-2031		1,000,000		1,054,190
									5,613,772
Puerto Rico: 2.47%
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		700,000		717,087
Puerto Rico Electric Power Authority Refunding Bond Series MM (Utilities Revenue, National Insured)		5.00			7-1-2016		50,000		50,488
Puerto Rico Highway & Transportation Authority Series A (Tax Revenue, Ambac Insured) ¤		0.00			7-1-2017		1,000,000		918,350
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facility Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2018		525,000		535,243
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Tax Revenue, Government Development Bank for Puerto Rico SPA) (s)		6.00			8-1-2024		1,175,000		188,000
Puerto Rico Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016		210,000		212,598
Puerto Rico Series PA-650 (Tax Revenue, National Insured)		6.00			7-1-2016		150,000		152,225
									2,773,991
South Carolina: 1.34%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		152,230		121,766
Jasper County SC School Project (Miscellaneous Revenue)		4.00			4-1-2020		390,000		407,460

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo High Yield Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
South Carolina (continued)
Lee County SC School Facilities Incorporated Series 2006 (Miscellaneous Revenue, AGC Insured)		6.00	%		12-1-2031	$	215,000	$	229,325
South Carolina EDA York Preparatory Academy Project Series A (Education Revenue)		5.75			11-1-2023		185,000		194,500
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.25			11-1-2045		500,000		552,785
									1,505,836
Texas: 4.90%
Arlington TX Higher Education Finance Corporation Universal Academy Series A (Education Revenue)		7.00			3-1-2034		320,000		339,117
Hackberry TX Special Assessment Revenue Public Improvement District #3 Phase #13 (Miscellaneous Revenue)		6.00			9-1-2026		225,000		230,432
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		1,000,000		1,055,950
Port Arthur TX Navigation District Environmental Facilities Motiva Enterprises Series 2010 (Resource Recovery Revenue) ø		0.26			4-1-2040		1,500,000		1,500,000
Tarrant County TX Cultural Education Facilities Finance Corporation Series B (Health Revenue)		5.00			11-15-2030		1,000,000		1,087,660
Texas Gas Supply SA Energy Acquisition Public Facilities Corporation (Utilities Revenue)		5.50			8-1-2027		190,000		232,634
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2028		735,000		817,871
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		200,000		250,832
									5,514,496
Utah: 0.89%
Utah Finance Authority Charter School Revenue Spectrum Academy Project (Education Revenue) 144A		5.00			4-15-2030		1,000,000		1,006,060
Washington: 1.15%
Skagit County WA Public Hospital District #1 Skagit Valley Hospital Project (Health Revenue)		5.25			12-1-2025		250,000		272,613
Washington Housing Finance Commission Nonprofit Housing Revenue Bonds Heron’s Key Senior Living Series B3 (Health Revenue) 144A		4.38			1-1-2021		1,000,000		1,015,520
									1,288,133
West Virginia: 0.25%
West Virginia Hospital Finance Authority (Health Revenue)		6.25			10-1-2023		270,000		285,725
Wisconsin: 2.67%
Wisconsin Center District Refunding Bond Junior Dedicated Series A (Tax Revenue)		5.00			12-15-2028		1,000,000		1,128,280
Wisconsin PFA Charter School Voyager Funding Incorporated Project Series A (Education Revenue)		4.13			10-1-2024		325,000		331,123
Wisconsin PFA Coral Academy Science Las Vegas Series A (Education Revenue)		5.00			7-1-2024		500,000		536,850
Wisconsin PFA Research Triangle High School Project Series 2015-A (Education Revenue) 144A		5.63			7-1-2045		1,000,000		1,003,280
									2,999,533
Wyoming: 0.47%
Sweetwater County WY Solid Waste Disposal Refunding Bond FMC Corporation Project (Industrial Development Revenue)		5.60			12-1-2035		525,000		526,843
Total Municipal Obligations (Cost $104,982,970)									108,198,622

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

14 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Yield					Shares		Value
Short-Term Investments: 3.45%
Investment Companies: 3.36%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.39	%				1,719,025	$	1,719,025
Wells Fargo National Tax-Free Money Market Fund, Institutional Class ##(l)(u)		0.01					2,061,990		2,061,990
									3,781,015
				Maturity date		Principal
U.S. Treasury Securities: 0.09%
U.S. Treasury Bill (z)		0.09			3-17-2016	$	100,000		99,980
Total Short-Term Investments (Cost $3,880,968)									3,880,995

Total investments in securities (Cost $111,545,091) *	102.01	%		114,738,757
Other assets and liabilities, net	(2.01	)		(2,258,671	)
Total net assets	100.00	%	$	112,480,086

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

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

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.

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.

%% The security is issued on a when-issued basis.

(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.

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $111,545,091 and unrealized gains (losses) consists of:

Gross unrealized gains	$	3,367,269
Gross unrealized losses		(173,603	)
Net unrealized gains	$	3,193,666

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

Statement of assets and liabilities—December 31, 2015 (unaudited) Wells Fargo High Yield Municipal Bond Fund 15

Assets
Investments
In unaffiliated securities (including $1,683,077 of securities loaned), at value (cost $107,764,076)	$	110,957,742
In affiliated securities, at value (cost $3,781,015)		3,781,015
Total investments, at value (cost $111,545,091)		114,738,757
Receivable for investments sold		3,521,040
Receivable for Fund shares sold		136,135
Receivable for interest		1,297,575
Prepaid expenses and other assets		35,458
Total assets		119,728,965
Liabilities
Dividends payable		112,874
Payable for investments purchased		5,238,467
Payable for Fund shares redeemed		99,434
Payable upon receipt of securities loaned		1,719,025
Management fee payable		32,338
Distribution fee payable		3,620
Administration fees payable		10,765
Accrued expenses and other liabilities		32,356
Total liabilities		7,248,879
Total net assets	$	112,480,086
NET ASSETS CONSIST OF
Paid-in capital	$	109,162,152
Undistributed net investment income		310
Accumulated net realized gains on investments		123,958
Net unrealized gains on investments		3,193,666
Total net assets	$	112,480,086
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	24,733,606
Shares outstanding – Class A1		2,342,818
Net asset value per share – Class A		$10.56
Maximum offering price per share – Class A2		$11.06
Net assets – Class C	$	5,742,318
Shares outstanding – Class C1		543,887
Net asset value per share – Class C		$10.56
Net assets – Administrator Class	$	19,193,475
Shares outstanding – Administrator Class1		1,817,510
Net asset value per share – Administrator Class		$10.56
Net assets – Institutional Class	$	62,810,687
Shares outstanding – Institutional Class1		5,950,365
Net asset value per share – Institutional Class		$10.56

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 High Yield Municipal Bond Fund Statement of operations—six months ended December 31, 2015 (unaudited)

Investment income
Interest	$	2,513,371
Dividends		18,366
Income from affiliated securities		191
Total investment income		2,531,928
Expenses
Management fee		286,964
Administration fees
Class A		19,183
Class C		3,800
Administrator Class		8,257
Institutional Class		27,816
Shareholder servicing fees
Class A		29,974
Class C		5,938
Administrator Class		20,308
Distribution fee
Class C		17,814
Custody and accounting fees		6,388
Professional fees		23,985
Registration fees		43,841
Shareholder report expenses		1,745
Trustees’ fees and expenses		8,548
Other fees and expenses		6,065
Total expenses		510,626
Less: Fee waivers and/or expense reimbursements		(100,157	)
Net expenses		410,469
Net investment income		2,121,459
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		123,979
Net change in unrealized gains (losses) on investments		2,594,039
Net realized and unrealized gains (losses) on investments		2,718,018
Net increase in net assets resulting from operations	$	4,839,477

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

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

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	2,121,459					$	2,965,276
Net realized gains on investments					123,979						833,386
Net change in unrealized gains (losses) on investments					2,594,039						(372,294	)
Net increase in net assets resulting from operations					4,839,477						3,426,368
Distributions to shareholders from
Net investment income
Class A					(427,105	)					(567,578	)
Class C					(66,879	)					(103,763	)
Administrator Class					(303,304	)					(468,922	)
Institutional Class					(1,324,472	)					(1,825,014	)
Net realized gains
Class A					(78,573	)					(132,615	)
Class C					(16,949	)					(34,119	)
Administrator Class					(60,643	)					(126,197	)
Institutional Class					(205,261	)					(425,024	)
Total distributions to shareholders					(2,483,186	)					(3,683,232	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		630,933			6,553,546			2,202,847			22,891,217
Class C		186,955			1,956,500			316,623			3,299,033
Administrator Class		615,852			6,418,521			2,186,625			22,789,956
Institutional Class		633,128			6,599,206			6,997,943			73,016,661
					21,527,773						121,996,867
Reinvestment of distributions
Class A		45,928			480,203			63,922			668,808
Class C		6,874			71,939			11,333			118,567
Administrator Class		27,586			288,697			45,410			475,587
Institutional Class		96,783			1,010,752			153,261			1,603,296
					1,851,591						2,866,258
Payment for shares redeemed
Class A		(375,200	)		(3,915,113	)		(617,789	)		(6,419,871	)
Class C		(87,333	)		(905,707	)		(117,137	)		(1,215,465	)
Administrator Class		(157,485	)		(1,641,838	)		(1,220,440	)		(12,812,718	)
Institutional Class		(2,143,388	)		(22,300,879	)		(2,820,561	)		(29,381,761	)
					(28,763,537	)					(49,829,815	)
Net increase (decrease) in net assets resulting from capital share transactions					(5,384,173	)					75,033,310
Total increase (decrease) in net assets					(3,027,882	)					74,776,446
Net assets
Beginning of period					115,507,968						40,731,522
End of period				$	112,480,086					$	115,507,968
Undistributed net investment income				$	310					$	611

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

18 Wells Fargo High Yield Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			20131
Net asset value, beginning of period		$10.34			$10.25			$9.52			$10.00
Net investment income		0.19			0.34			0.40			0.13
Net realized and unrealized gains (losses) on investments		0.25			0.18			0.75			(0.49	)
Total from investment operations		0.44			0.52			1.15			(0.36	)
Distributions to shareholders from
Net investment income		(0.19	)		(0.34	)		(0.40	)		(0.12	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.22	)		(0.43	)		(0.42	)		(0.12	)
Net asset value, end of period		$10.56			$10.34			$10.25			$9.52
Total return2		4.31	%		5.06	%		12.41	%		(3.61	)%
Ratios to average net assets (annualized)
Gross expenses		1.07	%		1.07	%		1.90	%		3.45	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		3.56	%		3.26	%		3.98	%		3.21	%
Supplemental data
Portfolio turnover rate		34	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$24,734			$21,100			$4,022			$998

¹  For the period from January 31, 2013 (commencement of operations) to June 30, 2013

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo High Yield Municipal Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			20131
Net asset value, beginning of period		$10.34			$10.25			$9.52			$10.00
Net investment income		0.15			0.26			0.33			0.09
Net realized and unrealized gains (losses) on investments		0.25			0.18			0.75			(0.48	)
Total from investment operations		0.40			0.44			1.08			(0.39	)
Distributions to shareholders from
Net investment income		(0.15	)		(0.26	)		(0.33	)		(0.09	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.18	)		(0.35	)		(0.35	)		(0.09	)
Net asset value, end of period		$10.56			$10.34			$10.25			$9.52
Total return2		3.92	%		4.28	%		11.58	%		(3.89	)%
Ratios to average net assets (annualized)
Gross expenses		1.82	%		1.82	%		2.58	%		4.05	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.81	%		2.50	%		3.15	%		2.25	%
Supplemental data
Portfolio turnover rate		34	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$5,742			$4,522			$2,323			$481

¹  For the period from January 31, 2013 (commencement of operations) to June 30, 2013

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

20 Wells Fargo High Yield Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			20131
Net asset value, beginning of period		$10.34			$10.26			$9.52			$10.00
Net investment income		0.19			0.35			0.41			0.13
Net realized and unrealized gains (losses) on investments		0.25			0.17			0.76			(0.48	)
Total from investment operations		0.44			0.52			1.17			(0.35	)
Distributions to shareholders from
Net investment income		(0.19	)		(0.35	)		(0.41	)		(0.13	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.22	)		(0.44	)		(0.43	)		(0.13	)
Net asset value, end of period		$10.56			$10.34			$10.26			$9.52
Total return2		4.36	%		5.07	%		12.63	%		(3.57	)%
Ratios to average net assets (annualized)
Gross expenses		1.01	%		1.00	%		1.80	%		3.24	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		3.67	%		3.35	%		4.14	%		3.10	%
Supplemental data
Portfolio turnover rate		34	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$19,193			$13,768			$3,282			$482

¹  For the period from January 31, 2013 (commencement of operations) to June 30, 2013

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

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

Financial highlights Wells Fargo High Yield Municipal Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2015			2014			20131
Net asset value, beginning of period		$10.34			$10.25			$9.52			$10.00
Net investment income		0.20			0.37			0.42			0.13
Net realized and unrealized gains (losses) on investments		0.25			0.18			0.75			(0.48	)
Total from investment operations		0.45			0.55			1.17			(0.35	)
Distributions to shareholders from
Net investment income		(0.20	)		(0.37	)		(0.42	)		(0.13	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.23	)		(0.46	)		(0.44	)		(0.13	)
Net asset value, end of period		$10.56			$10.34			$10.25			$9.52
Total return2		4.44	%		5.33	%		12.70	%		(3.52	)%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.74	%		1.53	%		2.97	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.81	%		3.51	%		4.26	%		3.25	%
Supplemental data
Portfolio turnover rate		34	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)	$	62,811		$	76,118		$	31,105		$	8,204

¹  For the period from January 31, 2013 (commencement of operations) to June 30, 2013

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

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

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 High Yield Municipal 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 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

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

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.

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date.

Distributions to shareholders

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

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

Federal and other taxes

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

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

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	2,659,140	$	0	$	0	$	2,659,140
Municipal obligations		0		108,198,622		0		108,198,622
Short-term investments
Investment companies		2,061,990		1,719,025		0		3,781,015
U.S. Treasury securities		99,980		0		0		99,980
Total assets	$	4,821,110	$	109,917,647	$	0	$	114,738,757

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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.

Notes to financial statements (unaudited) Wells Fargo High Yield Municipal Bond Fund 25

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. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

Administration 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

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 October 31, 2016 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 C shares, 0.75% for Administrator Class shares, and 0.60% 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 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 six months ended December 31, 2015, Funds Distributor received $929 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 Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $37,367,883 and $47,090,514, respectively.

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

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $140 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. 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.

Other information (unaudited) Wells Fargo High Yield Municipal Bond Fund 27

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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.

28 Wells Fargo High Yield Municipal 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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 High Yield Municipal Bond Fund 29

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

30 Wells Fargo High Yield Municipal 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

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398834 02-16 SA264/SAR264 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Intermediate Tax/AMT-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Summary portfolio of investments*	7
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	20
Other information	24
List of abbreviations	27

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

The views expressed and any forward-looking statements are as of December 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 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 Intermediate Tax/AMT-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Intermediate Tax/AMT-Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Intermediate Tax/AMT-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks high current income exempt from federal income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Lyle J. Fitterer, CFA^®, CPA

Robert Miller

Average annual total returns (%) as of December 31, 2015¹

		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 (WFTAX)	7-31-2007		(1.01	)		3.98		3.99		2.05		4.62		4.31		0.80		0.70
Class C (WFTFX)	7-31-2007		0.29			3.84		3.54		1.29		3.84		3.54		1.55		1.45
Administrator Class (WFITX)	3-31-2008		–			–		–		2.15		4.72		4.40		0.74		0.60
Institutional Class (WITIX)	3-31-2008		–			–		–		2.42		4.93		4.55		0.47		0.45
Barclays Municipal Bond 1-15 Year Blend Index4	–		–			–		–		2.83		4.28		4.42		–		–

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, wellsfargofunds.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 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. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 5

Credit quality as of December 31, 2015⁵

Effective maturity distribution as of December 31, 2015⁶

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares (except during those periods in which expenses of Class A shares would have been higher than those of the former Investor Class shares, no such adjustment is reflected). Historical performance shown for Class C shares prior to their inception reflects the performance of the former Investor Class shares, adjusted to reflect the higher expenses applicable to Class C shares. Historical performance shown for Administrator Class and Institutional Class shares prior to their inception reflects the performance of Class A shares, and includes the higher expenses applicable to Class A shares. If these expenses had not been included, returns would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses. 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 October 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 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 Municipal Bond 1–15 Year Blend Index is the 1–15 Year Blend component of the Barclays Municipal Bond Index. The Barclays Municipal Bond Index is an unmanaged index composed of tax-exempt bonds with maturities between six and eight years and a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  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  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo Intermediate Tax/AMT-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,027.17	$	3.57		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62	$	3.56		0.70	%
Class C
Actual	$	1,000.00	$	1,023.32	$	7.37		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.85	$	7.35		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,027.67	$	3.06		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,028.54	$	2.19		0.43	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.97	$	2.19		0.43	%

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—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 7

The Summary portfolio of investments shows the 50 largest portfolio holdings in unaffiliated issuers and any holdings exceeding 1% of the total net assets as of the report date. The remaining securities held are grouped as “Other securities” in each category.

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Municipal Obligations: 98.30%
Alabama: 0.28%
Other securities								$	7,017,944		0.28	%
Alaska: 0.19%
Other securities									4,602,075		0.19
Arizona: 1.30%
Other securities									32,013,383		1.30
California: 10.36%
Bay Area CA Toll Authority Toll Bridge Revenue Series A (Transportation Revenue) ±		1.26	%		4-1-2036	$	20,000,000		19,795,600		0.80
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.19			8-1-2027		10,000,000		10,000,000		0.41
California Public Works Board University of California Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		12,110,000		14,615,196		0.59
San Jose CA MFHR Casa Del Pueblo Apartments Project Series D (Housing Revenue) ±		0.95			12-1-2017		10,000,000		9,987,700		0.40
University of California Limited Project Series G (Education Revenue)		5.00			5-15-2037		10,390,000		12,086,029		0.49
University of California Medical Center Series J (Health Revenue)		5.25			5-15-2030		15,000,000		17,995,800		0.73
Other securities									170,680,375		6.94
									255,160,700		10.36
Colorado: 0.32%
Other securities									7,831,565		0.32
Connecticut: 1.84%
Connecticut Health & HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		10,000,000		10,077,100		0.41
Other securities									35,142,742		1.43
									45,219,842		1.84
Delaware: 0.08%
Other securities									2,009,240		0.08
District of Columbia: 0.59%
Other securities									14,551,033		0.59
Florida: 5.37%
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2037		25,000,000		25,000,000		1.02
Santa Clara CA PFOTER Series 4615 (Miscellaneous Revenue, Dexia Credit Local LIQ) ø		0.28			8-1-2029		10,000,000		10,000,000		0.41
Other securities									97,213,845		3.94
									132,213,845		5.37

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

8 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Georgia: 0.67%
Other securities								$	16,429,342		0.67	%
Guam: 0.44%
Other securities									10,856,218		0.44
Illinois: 19.24%
Chicago IL Board of Education (GO Revenue) µ		0.00-5.25	%		12-1-2020 to 3-1-2036	$	44,170,000		39,819,597		1.61
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2022		20,000,000		14,618,600		0.59
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue)		5.25			1-1-2032		8,755,000		10,186,180		0.41
Chicago IL (GO Revenue) µ		4.00-5.25			1-1-2019 to 1-1-2037		25,910,000		26,633,124		1.07
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		16,865,000		17,185,772		0.70
Chicago IL Water Revenue (Water & Sewer Revenue) µ		5.00			11-1-2022 to 11-1-2033		15,875,000		17,598,490		0.71
Chicago IL Water Revenue Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		10,000,000		10,135,700		0.41
Illinois (GO Revenue) µ		4.75-5.50			9-1-2016 to 7-1-2026		18,985,000		20,765,598		0.83
Illinois (Tax Revenue)		5.00			6-15-2023		16,050,000		19,094,846		0.78
Illinois Board of Trustees of the University of Illinois Utility Infrastructure Projects (Education Revenue, BMO Harris Bank NA SPA) ø		0.24			8-15-2021		15,000,000		15,000,000		0.61
Illinois Highway Authority Series B (Transportation Revenue, AGM Insured, Landesbank Hessen-Thüringen SPA) ø		0.25			1-1-2016		9,800,000		9,800,000		0.40
Illinois Regional Transportation Authority (Tax Revenue, National Insured)		6.50			7-1-2026		7,815,000		10,187,947		0.41
Illinois Series A (Tax Revenue)		5.00			1-1-2027		10,625,000		11,326,781		0.46
Illinois Toll Highway Authority Series B (Transportation Revenue, AGM Insured, Landesbank Hessen-Thüringen SPA) ø		0.25			1-1-2017		31,650,000		31,650,000		1.29
Other securities									219,913,225		8.96
									473,915,860		19.24
Indiana: 2.58%
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.75			11-15-2031		15,000,000		15,036,450		0.61
Other securities									48,576,020		1.97
									63,612,470		2.58
Iowa: 0.37%
Other securities									9,040,250		0.37
Kansas: 0.24%
Other securities									5,866,709		0.24
Kentucky: 0.53%
Other securities									12,963,521		0.53

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Louisiana: 1.83%
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø		0.33	%		11-1-2040	$	15,000,000	$	15,000,000		0.61	%
Other securities									30,000,243		1.22
									45,000,243		1.83
Maryland: 1.28%
Maryland Series B (GO Revenue)		4.00			8-1-2024		15,000,000		17,563,650		0.71
Other securities									13,892,279		0.57
									31,455,929		1.28
Massachusetts: 2.07%
Massachusetts HEFA Various Partners Healthcare Series G-6 (Health Revenue) ±		0.89			7-1-2038		14,000,000		14,000,420		0.57
Other securities									36,900,714		1.50
									50,901,134		2.07
Michigan: 3.88%
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue)		5.00			7-1-2030		12,000,000		13,692,360		0.56
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		11,500,000		11,748,400		0.48
Other securities									70,135,914		2.84
									95,576,674		3.88
Minnesota: 0.37%
Other securities									9,095,169		0.37
Mississippi: 0.57%
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project Series A (Water & Sewer Revenue, AGM Insured)		5.00			9-1-2030		10,000,000		11,411,800		0.46
Other securities									2,614,254		0.11
									14,026,054		0.57
Missouri: 0.30%
Other securities									7,505,912		0.30
Nebraska: 0.13%
Other securities									3,144,156		0.13
Nevada: 1.17%
Other securities									28,771,584		1.17
New Hampshire: 0.09%
Other securities									2,312,089		0.09
New Jersey: 5.06%
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.61			3-1-2028		15,000,000		13,207,950		0.53
New Jersey EDA School Facilities Construction Refunding Bond Series NN (Miscellaneous Revenue)		5.00			3-1-2021		15,035,000		16,470,391		0.67

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

10 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New Jersey (continued)
New Jersey EDA School Facilities Construction Refunding Bond Series PP (Miscellaneous Revenue)		5.00	%		6-15-2026	$	8,380,000	$	9,138,725		0.37	%
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2019		9,860,000		10,855,466		0.44
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144A ø		0.19			12-15-2022		19,925,000		19,925,000		0.81
Other securities									54,967,516		2.24
									124,565,048		5.06
New Mexico: 0.68%
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2028		9,265,000		10,530,599		0.43
Other securities									6,208,093		0.25
									16,738,692		0.68
New York: 10.54%
New York Convention Center Development Corporation (Tax Revenue)		5.00			11-15-2028		8,000,000		9,736,960		0.40
New York Metropolitan Transportation Authority (Transportation Revenue) µ		5.00-5.25			11-15-2025 to 11-15-2031		20,450,000		24,742,716		1.01
New York Metropolitan Transportation Authority Series C (Transportation Revenue)		5.25			11-15-2029		11,100,000		13,619,256		0.55
New York Metropolitan Transportation Authority Series C (Transportation Revenue)		5.25			11-15-2030		8,350,000		10,202,364		0.41
New York NY Municipal Water Finance Authority Series AA-2 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.30			6-15-2032		12,475,000		12,475,000		0.51
New York NY Series J-4 (GO Revenue) ±		0.56			8-1-2025		10,000,000		10,000,300		0.41
New York NY Series J-8 (GO Revenue) ø		0.39			8-1-2021		10,000,000		10,000,000		0.41
New York NY Transitional Finance Authority Sub Series 2-B (Tax Revenue, Dexia Credit Local SPA) ø		0.24			11-1-2022		14,550,000		14,550,000		0.59
New York NY Various Sub Series H-5 (GO Revenue, Dexia Credit Local LOC) ø		0.24			3-1-2034		9,945,000		9,945,000		0.40
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		14,970,000		14,969,850		0.61
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		20,855,000		20,998,900		0.85
Other securities									108,452,490		4.39
									259,692,836		10.54
North Carolina: 0.65%
Other securities									15,945,694		0.65
North Dakota: 0.19%
Other securities									4,813,327		0.19

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Ohio: 2.62%
Ohio University Hospitals Health Systems Series B (Health Revenue) ø		0.35	%		1-15-2033	$	9,500,000	$	9,500,000		0.39	%
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series A (Water & Sewer Revenue) ±		3.75			6-1-2033		10,000,000		10,245,400		0.42
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		15,000,000		15,464,550		0.63
Other securities									29,409,725		1.18
									64,619,675		2.62
Oklahoma: 1.65%
Other securities									40,723,905		1.65
Oregon: 0.05%
Other securities									1,302,701		0.05
Pennsylvania: 6.46%
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.51			11-1-2039		10,000,000		10,080,500		0.41
Other securities									148,949,663		6.05
									159,030,163		6.46
Puerto Rico: 0.05%
Other securities									1,366,700		0.05
Rhode Island: 0.30%
Other securities									7,501,296		0.30
South Carolina: 0.86%
Other securities									21,097,185		0.86
South Dakota: 0.04%
Other securities									1,012,018		0.04
Tennessee: 0.65%
Other securities									16,076,160		0.65
Texas: 9.18%
Cypress-Fairbanks TX Independent School District Series B-2 (GO Revenue) ±		3.00			2-15-2040		11,010,000		11,513,487		0.47
Harris County TX Tax Road Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		8,445,000		10,404,409		0.42
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.26			12-1-2039		15,925,000		15,925,000		0.65
Port Arthur TX Navigation District Motiva Enterprises LLC Series B (Resource Recovery Revenue) ø		0.26			12-1-2039		15,000,000		15,000,000		0.61
Texas Transportation Commission State Highway Series B (Transportation Revenue, Banco Bilbao Vizcaya SPA) ø		0.23			4-1-2026		10,000,000		10,000,000		0.41
Other securities									163,396,196		6.62
									226,239,092		9.18

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

12 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name						Value		Percent of net assets
Utah: 0.18%
Other securities						$	4,353,573		0.18	%
Virgin Islands: 0.32%
Other securities							8,003,990		0.32
Virginia: 0.28%
Other securities							6,928,826		0.28
Washington: 1.82%
Other securities							44,771,414		1.82
West Virginia: 0.05%
Other securities							1,215,137		0.05
Wisconsin: 0.58%
Other securities							14,264,379		0.58
Total Municipal Obligations (Cost $2,319,680,337)							2,421,354,752		98.30
	Yield			Shares
Short-Term Investments: 0.93%
Investment Companies: 0.93%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)##		0.01	%		22,837,401		22,837,401		0.93
Total Short-Term Investments (Cost $22,837,401)							22,837,401		0.93
Total investments in securities (Cost $2,342,517,738) *							2,444,192,153		99.23	%
Other assets and liabilities, net							18,936,026		0.77
Total net assets						$	2,463,128,179		100.00	%

± 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.

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.

µ All or some of these obligations have credit enhancements or liquidity features that may, under certain circumstances, provide for repayment of principal and interest.

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

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $2,342,516,231 and unrealized gains (losses) consists of:

Gross unrealized gains	$	106,893,127
Gross unrealized losses		(5,217,205	)
Net unrealized gains	$	101,675,922

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

Statement of assets and liabilities—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 13

Assets
Investments
In unaffiliated securities, at value (cost $2,319,680,337)	$	2,421,354,752
In affiliated securities, at value (cost $22,837,401)		22,837,401
Total investments, at value (cost $2,342,517,738)		2,444,192,153
Cash		150,000
Receivable for investments sold		865,469
Receivable for Fund shares sold		7,694,108
Receivable for interest		24,107,174
Prepaid expenses and other assets		117,575
Total assets		2,477,126,479
Liabilities
Dividends payable		1,510,692
Payable for investments purchased		6,776,737
Payable for Fund shares redeemed		4,379,604
Management fee payable		653,687
Distribution fee payable		39,135
Administration fees payable		242,318
Accrued expenses and other liabilities		396,127
Total liabilities		13,998,300
Total net assets	$	2,463,128,179
NET ASSETS CONSIST OF
Paid-in capital	$	2,361,319,912
Overdistributed net investment income		(55,507	)
Accumulated net realized gains on investments		189,359
Net unrealized gains on investments		101,674,415
Total net assets	$	2,463,128,179
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	593,066,143
Shares outstanding – Class A1		50,897,713
Net asset value per share – Class A		$11.65
Maximum offering price per share – Class A2		$12.01
Net assets – Class C	$	56,429,474
Shares outstanding – Class C1		4,842,881
Net asset value per share – Class C		$11.65
Net assets – Administrator Class	$	749,974,511
Shares outstanding – Administrator Class1		64,323,787
Net asset value per share – Administrator Class		$11.66
Net assets – Institutional Class	$	1,063,658,051
Shares outstanding – Institutional Class1		91,164,982
Net asset value per share – Institutional Class		$11.67

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/97.00 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

14 Wells Fargo Intermediate Tax/AMT-Free Fund Statement of operations—six months ended December 31, 2015 (unaudited)

Investment income
Interest	$	35,745,703
Income from affiliated securities		1,460
Total investment income		35,747,163
Expenses
Management fee		4,445,282
Administration fees
Class A		291,645
Class C		45,980
Administrator Class		385,810
Institutional Class		388,328
Investor Class		252,894	1
Shareholder servicing fees
Class A		455,031
Class C		71,844
Administrator Class		964,526
Investor Class		332,755	1
Distribution fee
Class C		215,532
Custody and accounting fees		67,992
Professional fees		27,450
Registration fees		83,252
Shareholder report expenses		61,280
Trustees’ fees and expenses		12,144
Other fees and expenses		12,417
Total expenses		8,114,162
Less: Fee waivers and/or expense reimbursements		(1,044,024	)
Net expenses		7,070,138
Net investment income		28,677,025
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		443,510
Net change in unrealized gains (losses) on investments		35,920,169
Net realized and unrealized gains (losses) on investments		36,363,679
Net increase in net assets resulting from operations	$	65,040,704

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

Statement of changes in net assets Wells Fargo Intermediate Tax/AMT-Free Fund 15

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	28,677,025					$	51,156,829
Net realized gains on investments					443,510						6,324,555
Net change in unrealized gains (losses) on investments					35,920,169						(20,839,190	)
Net increase in net assets resulting from operations					65,040,704						36,642,194
Distributions to shareholders from
Net investment income
Class A					(4,105,873	)					(4,728,054	)
Class C					(428,538	)					(830,216	)
Administrator Class					(9,027,581	)					(16,785,583	)
Institutional Class					(12,214,189	)					(19,241,370	)
Investor Class					(2,904,150	)1					(9,569,866	)
Total distributions to shareholders					(28,680,331	)					(51,155,089	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		36,154,823			418,090,726			5,045,158			58,687,151
Class C		260,101			3,007,229			960,317			11,184,212
Administrator Class		9,627,605			111,071,508			21,365,779			248,531,364
Institutional Class		24,051,197			278,122,339			43,496,123			505,863,626
Investor Class		1,416,573	1		16,288,070	1		7,046,199			81,897,022
					826,579,872						906,163,375
Reinvestment of distributions
Class A		329,831			3,821,237			382,977			4,450,514
Class C		32,562			376,513			62,813			729,984
Administrator Class		729,807			8,444,828			1,357,124			15,782,218
Institutional Class		584,186			6,766,873			929,789			10,821,859
Investor Class		195,909	1		2,256,316	1		808,378			9,391,930
					21,665,767						41,176,505
Payment for shares redeemed
Class A		(4,313,242	)		(49,869,328	)		(9,666,672	)		(111,817,381	)
Class C		(391,276	)		(4,515,171	)		(1,075,380	)		(12,489,765	)
Administrator Class		(13,425,964	)		(154,623,669	)		(13,275,704	)		(154,374,644	)
Institutional Class		(9,936,048	)		(114,773,156	)		(19,902,760	)		(231,743,877	)
Investor Class		(39,753,597	)1		(459,096,509	)1		(8,797,973	)		(102,040,606	)
					(782,877,833	)					(612,466,273	)
Net increase in net assets resulting from capital share transactions					65,367,806						334,873,607
Total increase in net assets					101,728,179						320,360,712
Net assets
Beginning of period					2,361,400,000						2,041,039,288
End of period				$	2,463,128,179					$	2,361,400,000
Overdistributed net investment income				$	(55,507	)				$	(52,201	)

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

16 Wells Fargo Intermediate Tax/AMT-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.47			$11.53			$11.31			$11.53			$10.94			$10.81
Net investment income		0.13			0.25			0.30			0.28			0.35			0.36
Net realized and unrealized gains (losses) on investments		0.18			(0.06	)		0.29			(0.18	)		0.59			0.13
Total from investment operations		0.31			0.19			0.59			0.10			0.94			0.49
Distributions to shareholders from
Net investment income		(0.13	)		(0.25	)		(0.30	)		(0.28	)		(0.35	)		(0.36	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1		0.00
Total distributions to shareholders		(0.13	)		(0.25	)		(0.37	)		(0.32	)		(0.35	)		(0.36	)
Net asset value, end of period		$11.65			$11.47			$11.53			$11.31			$11.53			$10.94
Total return2		2.72	%		1.68	%		5.37	%		0.82	%		8.71	%		4.57	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.80	%		0.81	%		0.80	%		0.81	%		0.82	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		2.25	%		2.19	%		2.66	%		2.36	%		3.07	%		3.27	%
Supplemental data
Portfolio turnover rate		9	%		38	%		29	%		24	%		38	%		52	%
Net assets, end of period (000s omitted)		$593,066			$214,880			$264,796			$289,931			$307,991			$239,853

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo Intermediate Tax/AMT-Free Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.47			$11.53			$11.31			$11.53			$10.94			$10.81
Net investment income		0.09			0.17			0.22			0.19			0.27			0.28
Net realized and unrealized gains (losses) on investments		0.18			(0.06	)		0.29			(0.18	)		0.59			0.13
Total from investment operations		0.27			0.11			0.51			0.01			0.86			0.41
Distributions to shareholders from
Net investment income		(0.09	)		(0.17	)		(0.22	)		(0.19	)		(0.27	)		(0.28	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1		0.00
Total distributions to shareholders		(0.09	)		(0.17	)		(0.29	)		(0.23	)		(0.27	)		(0.28	)
Net asset value, end of period		$11.65			$11.47			$11.53			$11.31			$11.53			$10.94
Total return2		2.33	%		0.92	%		4.59	%		0.07	%		7.90	%		3.80	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.55	%		1.56	%		1.55	%		1.56	%		1.57	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		1.49	%		1.44	%		1.92	%		1.61	%		2.32	%		2.54	%
Supplemental data
Portfolio turnover rate		9	%		38	%		29	%		24	%		38	%		52	%
Net assets, end of period (000s omitted)		$56,429			$56,703			$57,580			$72,106			$67,598			$50,157

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

18 Wells Fargo Intermediate Tax/AMT-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.48			$11.54			$11.32			$11.54			$10.95			$10.82
Net investment income		0.14			0.27			0.31			0.29			0.36			0.37
Net realized and unrealized gains (losses) on investments		0.18			(0.06	)		0.29			(0.18	)		0.59			0.13
Total from investment operations		0.32			0.21			0.60			0.11			0.95			0.50
Distributions to shareholders from
Net investment income		(0.14	)		(0.27	)		(0.31	)		(0.29	)		(0.36	)		(0.37	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1		0.00
Total distributions to shareholders		(0.14	)		(0.27	)		(0.38	)		(0.33	)		(0.36	)		(0.37	)
Net asset value, end of period		$11.66			$11.48			$11.54			$11.32			$11.54			$10.95
Total return2		2.77	%		1.78	%		5.47	%		0.92	%		8.81	%		4.68	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.74	%		0.75	%		0.74	%		0.75	%		0.76	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		2.34	%		2.29	%		2.76	%		2.46	%		3.18	%		3.39	%
Supplemental data
Portfolio turnover rate		9	%		38	%		29	%		24	%		38	%		52	%
Net assets, end of period (000s omitted)		$749,975			$773,770			$668,517			$621,627			$494,528			$343,666

¹  Amount is less than $0.005.

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

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

Financial highlights Wells Fargo Intermediate Tax/AMT-Free Fund 19

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.49			$11.55			$11.32			$11.54			$10.96			$10.82
Net investment income		0.15			0.29			0.33			0.31			0.38			0.39
Net realized and unrealized gains (losses) on investments		0.18			(0.06	)		0.30			(0.18	)		0.58			0.14
Total from investment operations		0.33			0.23			0.63			0.13			0.96			0.53
Distributions to shareholders from
Net investment income		(0.15	)		(0.29	)		(0.33	)		(0.31	)		(0.38	)		(0.39	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1		0.00
Total distributions to shareholders		(0.15	)		(0.29	)		(0.40	)		(0.35	)		(0.38	)		(0.39	)
Net asset value, end of period		$11.67			$11.49			$11.55			$11.32			$11.54			$10.96
Total return2		2.85	%		1.97	%		5.75	%		1.10	%		8.91	%		4.86	%
Ratios to average net assets (annualized)
Gross expenses		0.47	%		0.47	%		0.48	%		0.48	%		0.49	%		0.49	%
Net expenses		0.43	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		2.52	%		2.47	%		2.94	%		2.65	%		3.32	%		3.55	%
Supplemental data
Portfolio turnover rate		9	%		38	%		29	%		24	%		38	%		52	%
Net assets, end of period (000s omitted)		$1,063,658			$878,585			$599,686			$461,403			$326,772			$129,033

¹  Amount is less than $0.005.

²  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 Intermediate Tax/AMT-Free Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 Intermediate Tax/AMT-Free Fund (the “Fund”) which is a diversified series of the Trust.

Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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 (unaudited) Wells Fargo Intermediate Tax/AMT-Free 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.

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 and tax-exempt 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 June 30, 2015, the Fund had capital loss carryforwards which consist of $97,871 in short-term capital losses.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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.

22 Wells Fargo Intermediate Tax/AMT-Free Fund Notes to financial statements (unaudited)

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	2,421,354,752	$	0	$	2,421,354,752
Short-term investments
Investment companies		22,837,401		0		0		22,837,401
Total assets	$	22,837,401	$	2,421,354,752	$	0	$	2,444,192,153

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.37% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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 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 October 31, 2016 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, 0.60% for Administrator Class shares, and 0.45% 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. Prior to November 1, 2015, the Fund’s expenses were capped at 0.42% for Institutional Class shares.

Notes to financial statements (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 23

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 six months ended December 31, 2015, Funds Distributor received $8,706 from the sale of Class A shares and $500 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 are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $443,176,733 and $179,293,463, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $1,708 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. 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 Intermediate Tax/AMT-Free Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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 Intermediate Tax/AMT-Free Fund 25

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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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 organization) (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation 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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

26 Wells Fargo Intermediate Tax/AMT-Free Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

List of abbreviations Wells Fargo Intermediate Tax/AMT-Free Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398835 02-16 SA251/SAR251 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Minnesota Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	19
Other information	23
List of abbreviations	26

The views expressed and any forward-looking statements are as of December 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 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 Minnesota Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Minnesota Tax -Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at

¹ The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Minnesota Tax-Free Fund 3

the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Minnesota Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and Minnesota individual income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Bruce R. Johns

Average annual total returns (%) as of December 31, 2015¹

		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 (NMTFX)	1-2-1988		(1.97	)		3.71		3.57		2.64		4.67		4.05		0.89		0.85
Class C (WMTCX)	4-8-2005		0.88			3.89		3.27		1.88		3.89		3.27		1.64		1.60
Administrator Class (NWMIX)	8-2-1993		–			–		–		2.90		4.93		4.31		0.83		0.60
Barclays Municipal Bond Index4	–		–			–		–		3.30		5.35		4.72		–		–
Barclays Minnesota Municipal Bond Index5	–		–			–		–		3.02		4.62		4.55		–		–

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, wellsfargofunds.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 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 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 Fund is exposed to Minnesota municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Minnesota Tax-Free Fund 5

Credit quality as of December 31, 2015⁶

Effective maturity distribution as of December 31, 2015⁷

¹  Effective July 18, 2008, Class Z was renamed Administrator Class.

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 October 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 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 Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays Minnesota Municipal Bond Index is the Minnesota component of the Barclays Municipal Bond Index. You cannot invest directly in an index.

⁶  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.

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 Minnesota Tax-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,023.47	$	4.32		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	1,019.63	$	8.12		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,025.70	$	3.06		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%

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—December 31, 2015 (unaudited) Wells Fargo Minnesota Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 93.98%
Guam: 1.31%
Guam Government Business Privilege Series D (Tax Revenue)		5.00	%		11-15-2022	$	500,000	$	584,920
Guam Government Waterworks Authority Water & Wastewater System Project Series 2013 (Water & Sewer Revenue)		5.25			7-1-2022		865,000		1,009,170
Guam International Airport Authority Series 2013A (Airport Revenue)		5.00			10-1-2017		200,000		213,858
Guam International Airport Authority Series 2013A (Airport Revenue)		5.00			10-1-2018		100,000		109,605
Guam International Airport Authority Series 2013B (Airport Revenue)		5.00			10-1-2017		300,000		320,787
									2,238,340
Illinois: 0.58%
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.01			3-1-2032		1,000,000		999,280
Minnesota: 90.96%
Anoka County MN Capital Improvement Series A (GO Revenue)		5.00			2-1-2024		500,000		538,770
Anoka County MN Charter School Series A (Education Revenue)		2.65			6-1-2016		210,000		209,744
Anoka County MN Charter School Series A (Education Revenue)		3.40			6-1-2019		225,000		225,140
Anoka County MN Charter School Series A (Education Revenue)		3.65			6-1-2020		185,000		186,123
Anoka County MN Charter School Series A (Education Revenue)		3.75			6-1-2021		245,000		247,029
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2027		510,000		533,016
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2032		300,000		310,125
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2043		1,100,000		1,122,330
Anoka Hennepin MN Independent School District #11 Certificates of Participation Series 2014A (Miscellaneous Revenue)		5.00			2-1-2034		1,000,000		1,155,010
Austin MN Housing & RDA Courtyard Residence Project Series A (Housing Revenue)		5.00			1-1-2031		1,500,000		1,598,775
Baytown Township MN St. Croix Preparatory Academy Series A (Education Revenue)		7.00			8-1-2038		2,150,000		2,221,380
Brooklyn Park MN Charter School Lease Revenue Bonds Athlos Leadership Academy Project Series 2015A (Education Revenue)		5.50			7-1-2040		750,000		747,000
Brooklyn Park MN Charter School Lease Revenue Bonds Athlos Leadership Academy Project Series 2015A (Education Revenue)		4.00			7-1-2020		245,000		245,801
Brooklyn Park MN Charter School Prairie Seeds Academy Project Series 2015A (Miscellaneous Revenue)		5.00			3-1-2034		1,500,000		1,523,055
Buffalo MN Housing & RDA Public Facility Buffalo Wild Marsh Golf Course (Miscellaneous Revenue)		4.38			5-1-2024		185,000		185,635
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2011 (Miscellaneous Revenue)		5.00			11-1-2041		1,400,000		1,487,570
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2026		750,000		887,528
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2027		500,000		588,460
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2029		300,000		349,281
Central Minnesota Municipal Power Agency Brookings Southeast Twin Cities Transmission Project Series 2012 (Utilities Revenue)		5.00			1-1-2016		875,000		875,000
Central Minnesota Municipal Power Agency Brookings Southeast Twin Cities Transmission Project Series 2012 (Utilities Revenue)		5.00			1-1-2042		1,500,000		1,654,080
Cologne MN Charter School Lease Revenue Cologne Academy Project Series 2014A (Education Revenue)		5.00			7-1-2029		590,000		623,447
Cologne MN Charter School Lease Revenue Cologne Academy Project Series 2014A (Education Revenue)		5.00			7-1-2034		500,000		519,645
Columbus MN Charter School Lease Revenue New Millennium Academy Project Series 2015A (Education Revenue)		5.50			7-1-2030		1,000,000		1,012,540

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

8 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Dakota County MN Community Development Agency SFMR (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.30	%		12-1-2039	$	59,770	$	61,860
Deephaven MN Charter School Eagle Ridge Academy Project Series 2015-A (Education Revenue)		5.25			7-1-2037		500,000		516,620
Deephaven MN Charter School Lease Revenue Eagle Ridge Academy Project Series 2015A (Education Revenue)		5.25			7-1-2040		500,000		513,930
Duluth MN Duluth Entertainment Convention Center Improvements Series A (GO Revenue)		5.00			2-1-2034		1,000,000		1,071,120
Duluth MN Housing & RDA Lease Revenue Bonds Public School Academy Series 2010A (Education Revenue)		5.60			11-1-2030		2,000,000		2,119,440
Elk River MN Independent School District #728 Series A (GO Revenue, AGM Insured)		5.00			2-1-2021		3,400,000		3,413,498
Forest Lakes MN Charter School Lease Revenue Bonds Lakes International Language Academy Project Series 2014A (Education Revenue)		5.50			8-1-2036		500,000		538,930
Glencoe MN HCFR Glencoe Regional Health Services Project Series 2013 (Health Revenue)		1.50			4-1-2016		570,000		570,986
Glencoe MN HCFR Glencoe Regional Health Services Project Series 2013 (Health Revenue)		4.00			4-1-2022		735,000		788,067
Goodhue County MN Education District #6051 Red Wing Certificates of Participation Series 2014A (Miscellaneous Revenue)		5.00			2-1-2029		750,000		864,300
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		500,000		501,785
Hugo MN Charter School Lease Revenue Bonds Noble Academy Project Series 2014A (Education Revenue)		5.00			7-1-2029		600,000		620,994
Hutchinson MN Public Utility Revenue Refunding Bonds Series 2012A (Utilities Revenue)		5.00			12-1-2026		700,000		812,833
Lakeville MN (Tobacco Revenue)		5.00			2-1-2016		180,000		180,275
Maple Grove MN Maple Grove Hospital Corporation (Health Revenue)		5.25			5-1-2024		1,735,000		1,819,755
Meeker County MN Memorial Hospital Project Series 2007 (Health Revenue)		5.63			11-1-2022		800,000		839,344
Minneapolis & St. Paul MN Housing & RDA Children’s Health Care Facilities Series A (Health Revenue)		5.25			8-15-2025		1,000,000		1,147,930
Minneapolis & St. Paul MN Housing & RDA Children’s Health Care Facilities Series A (Health Revenue)		5.25			8-15-2035		1,000,000		1,123,030
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.02			11-15-2017		1,620,000		1,603,800
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series 2014A (Airport Revenue)		5.00			1-1-2029		500,000		584,990
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series 2014B (Airport Revenue)		5.00			1-1-2026		500,000		581,075
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series B (Airport Revenue, National Insured)		5.00			1-1-2018		1,000,000		1,042,880
Minneapolis MN Charter School Yinghua Academy Project Series 2013A (Education Revenue)		5.00			7-1-2023		300,000		316,884
Minneapolis MN Development Limited Tax Supported Common Bond Series 1A (Miscellaneous Revenue)		4.80			12-1-2016		555,000		562,554
Minneapolis MN Development Limited Tax Supported Common Bond Series 2A (Miscellaneous Revenue)		5.00			6-1-2028		1,115,000		1,142,708
Minneapolis MN Development Limited Tax Supported Common Bond Series 2A (Miscellaneous Revenue)		6.00			12-1-2040		1,000,000		1,175,920
Minneapolis MN Fairview Health Services Series A (Health Revenue, AGM Insured)		6.63			11-15-2028		1,000,000		1,155,620
Minneapolis MN Health Care System Fairview Health Services Series 2015A (Health Revenue)		5.00			11-15-2033		2,000,000		2,298,960
Minneapolis MN Health Care System Revenue Prerefunded (Health Revenue, AGC Insured)		6.50			11-15-2038		345,000		397,475

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Minnesota Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Minneapolis MN Health Care System Revenue Unrefunded (Health Revenue, AGC Insured)		6.50	%		11-15-2038	$	1,890,000	$	2,139,367
Minneapolis MN Student Housing Riverton Community Housing Project Series 2014 (Housing Revenue)		5.00			8-1-2032		860,000		884,132
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series C1 (Health Revenue, AGC Insured)		4.00			2-15-2020		50,000		54,698
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series C1 (Health Revenue, AGC Insured)		5.00			2-15-2030		2,000,000		2,212,000
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series E (Health Revenue, AGC Insured)		5.00			2-15-2037		4,030,000		4,241,132
Minnesota Certificates of Participation Legislative Office Facility Project Series 2014 (Miscellaneous Revenue)		5.00			6-1-2023		435,000		528,325
Minnesota General Fund Revenue Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2027		2,000,000		2,347,060
Minnesota General Fund Revenue Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2028		2,000,000		2,340,100
Minnesota General Fund Revenue Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2029		2,000,000		2,328,340
Minnesota General Fund Revenue Appropriation Bonds Series 2014A (Miscellaneous Revenue)		5.00			6-1-2033		1,000,000		1,160,190
Minnesota HEFAR Bethel University Series 6R (Education Revenue)		5.50			5-1-2025		1,535,000		1,575,386
Minnesota HEFAR Carleton College Series 7D (Education Revenue)		5.00			3-1-2030		2,000,000		2,207,480
Minnesota HEFAR College of St. Scholastica Incorporated Series 7R (Education Revenue)		4.25			12-1-2027		400,000		418,924
Minnesota HEFAR Hamline University Series 7E (Education Revenue)		4.50			10-1-2021		300,000		327,549
Minnesota HEFAR Hamline University Series 7E (Education Revenue)		5.00			10-1-2029		500,000		542,325
Minnesota HEFAR St. Benedict College Series 7M (Education Revenue)		5.13			3-1-2036		275,000		296,711
Minnesota HEFAR St. Benedict College Series 7V (Education Revenue)		5.00			3-1-2018		635,000		680,415
Minnesota HEFAR St. Olaf College Series 7F (Education Revenue)		4.50			10-1-2030		500,000		543,185
Minnesota HEFAR St. Thomas University Series 6W (Education Revenue)		5.00			10-1-2018		1,100,000		1,136,971
Minnesota HEFAR St. Thomas University Series 6W (Education Revenue)		6.00			10-1-2025		1,030,000		1,069,459
Minnesota HEFAR St. Thomas University Series 6W (Education Revenue)		6.00			10-1-2030		1,000,000		1,033,790
Minnesota HEFAR St. Thomas University Series 6X (Education Revenue)		5.00			4-1-2029		1,000,000		1,046,160
Minnesota HEFAR St. Thomas University Series 7U (Education Revenue)		5.00			4-1-2023		750,000		894,863
Minnesota Housing Finance Agency Residential Housing Series 2007Q (Housing Revenue)		5.25			7-1-2033		745,000		761,591
Minnesota Housing Finance Agency Residential Housing Series 2009E (Housing Revenue)		4.20			7-1-2021		1,080,000		1,086,372
Minnesota Housing Finance Agency Residential Housing Series 2012D (Housing Revenue, GNMA/FNMA/FHLMC Insured)		4.00			7-1-2040		805,000		836,492
Minnesota Housing Finance Agency Series 2009B (Housing Revenue)		5.90			7-1-2028		85,000		88,045
Minnesota Housing Finance Agency Series 2015A (Housing Revenue)		5.00			8-1-2027		1,665,000		2,007,091
Minnesota Municipal Power Agency Series 2007 (Utilities Revenue)		5.00			10-1-2037		1,200,000		1,272,948
Minnesota Municipal Power Agency Series 2010A & Series 2010B (Utilities Revenue)		5.00			10-1-2025		2,335,000		2,636,425
Minnesota Prerefunded Bond (GO Revenue)		5.00			8-1-2022		100,000		106,465
Minnesota Refunded Bond (GO Revenue)		5.00			8-1-2022		2,400,000		2,555,160
Minnesota Unrefunded Bond (GO Revenue)		5.00			6-1-2020		185,000		188,567
Montgomery MN Independent School District School Building #394 Series B (GO Revenue, AGM Insured)		5.00			2-1-2025		500,000		501,975
Mounds View MN Independent School District #621 Series A (GO Revenue, South Dakota Credit Program Insured)		4.00			2-1-2022		530,000		573,958
Mower County MN Housing & RDA Facilities Project Series A (Miscellaneous Revenue)		5.75			2-1-2027		695,000		698,176

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

10 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Mower County MN Housing & RDA Facilities Project Series A (Miscellaneous Revenue)		5.90	%		2-1-2029	$	375,000	$	376,763
Northeastern Minnesota Metropolitan Intermediate School District #916 Certificates of Participation Series 2013A (Miscellaneous Revenue)		4.00			2-1-2024		1,100,000		1,215,621
Northeastern Minnesota Metropolitan Intermediate School District #916 Certificates of Participation Series 2015B (Miscellaneous Revenue)		5.00			2-1-2034		1,000,000		1,151,100
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2018		820,000		883,935
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2021		50,000		53,589
Northern Minnesota Municipal Power Agency Series 2013A (Utilities Revenue)		4.00			1-1-2028		450,000		486,491
Otsego MN Charter School Kaleidoscope Charter School Project Series 2014A (Education Revenue)		4.15			9-1-2024		600,000		616,248
Otsego MN Charter School Kaleidoscope Charter School Project Series 2014A (Education Revenue)		5.00			9-1-2034		1,100,000		1,143,846
Pine County MN Housing & RDA Public Project Series A (Miscellaneous Revenue)		5.00			2-1-2028		1,475,000		1,480,797
Plymouth MN Certificate of Participation Intermediate School District #287 Series A (Miscellaneous Revenue)		5.00			2-1-2024		250,000		278,145
Red Wing MN Senior Housing Deer Crest Project Series A (Health Revenue)		5.00			11-1-2032		660,000		695,053
Red Wing MN Senior Housing Deer Crest Project Series A (Health Revenue)		5.00			11-1-2042		560,000		584,713
Rice County MN Educational Facilities Shattuck-St. Mary’s School Project (Education Revenue) 144A		5.00			8-1-2022		1,000,000		1,038,570
Rochester MN Electric Utility Revenue Series 2007C (Utilities Revenue)		5.00			12-1-2030		1,000,000		1,034,620
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2023		815,000		1,000,763
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2025		315,000		380,407
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2026		250,000		299,528
Shakopee MN St. Francis Regional Medical Center Series 2014 (Health Revenue)		5.00			9-1-2027		700,000		822,262
Shakopee MN St. Francis Regional Medical Center Series 2014 (Health Revenue)		5.00			9-1-2029		725,000		839,702
South St. Paul MN Housing & RDA Airport Project Series 2007 (Industrial Development Revenue, AGC Insured)		4.70			9-1-2019		300,000		307,521
South St. Paul MN Housing & RDA Airport Project Series 2007 (Industrial Development Revenue, AGC Insured)		5.13			9-1-2029		500,000		512,540
Southern Minnesota Municipal Power Agency CAB Series 1994A (Utilities Revenue, National Insured) ¤		0.00			1-1-2020		5,100,000		4,758,555
Southern Minnesota Municipal Power Agency Series 2009A (Utilities Revenue)		5.25			1-1-2030		2,000,000		2,244,900
St. Cloud MN CentraCare Health System Series 2010A (Health Revenue)		5.13			5-1-2030		2,015,000		2,277,756
St. Louis Park MN Nicollett Health Services Series 2009 (Health Revenue)		5.50			7-1-2029		1,000,000		1,148,810
St. Paul MN Housing & RDA Allina Health Systems Series A1 (Health Revenue)		5.00			11-15-2024		2,350,000		2,599,758
St. Paul MN Housing & RDA Charter School Lease Revenue German Immersion School Project Series 2013A (Education Revenue)		4.00			7-1-2023		250,000		251,128
St. Paul MN Housing & RDA Charter School Lease Revenue Twin Cities Academy Project Series 2015A (Education Revenue)		5.00			7-1-2035		925,000		941,104
St. Paul MN Housing & RDA Charter School Nova Classical Academy Project Series 2011A (Miscellaneous Revenue)		6.63			9-1-2042		865,000		978,237
St. Paul MN Housing & RDA HealthEast Care Systems Project Series 2015A (Health Revenue)		4.00			11-15-2017		550,000		571,940
St. Paul MN Housing & RDA HealthEast Care Systems Project Series 2015A (Health Revenue)		5.00			11-15-2027		1,000,000		1,161,070
St. Paul MN Housing & RDA HealthPartners Obligated Group Series 2015A (Health Revenue)		5.00			7-1-2031		2,010,000		2,325,771
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		5.75			9-1-2026		650,000		655,616
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		6.00			9-1-2036		500,000		504,440
St. Paul MN Housing & RDA Hope Community Academy Project Series 2015A (Education Revenue)		5.00			12-1-2034		1,645,000		1,681,749
St. Paul MN Housing & RDA Parking Facilities Project Series A (Transportation Revenue)		5.00			8-1-2035		875,000		965,633

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Minnesota Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
St. Paul MN Housing & RDA St. Paul Academy & Summit School Project (Education Revenue)		5.00	%		10-1-2024	$	2,000,000	$	2,123,700
St. Paul MN Housing & RDA St. Paul Conservatory for Performing Artists Series A (Education Revenue)		4.00			3-1-2028		150,000		149,279
St. Paul MN Port Authority Lease Revenue Freeman Office Building Series 2 (Miscellaneous Revenue)		5.00			12-1-2024		2,000,000		2,415,680
Todd Morrison Cass & Wadena Counties MN United Hospital District Lakewood Health System Series 2004 (GO Revenue)		5.13			12-1-2024		1,000,000		1,003,550
University of Minnesota Series 2009A (Education Revenue)		5.00			4-1-2021		1,180,000		1,313,434
University of Minnesota Series 2009A (Education Revenue)		5.13			4-1-2034		1,000,000		1,117,680
University of Minnesota State Supported Biomedical Science Series 2011B (Education Revenue)		5.00			8-1-2036		1,000,000		1,159,300
University of Minnesota State Supported Stadium Debt Series 2006 (Education Revenue)		5.00			8-1-2025		5,000,000		5,131,950
Virginia MN Housing & RDA HCFR Series 2005 (Miscellaneous Revenue)		5.25			10-1-2025		2,085,000		2,089,066
Washington County MN Capital Improvement Plan Series A (GO Revenue)		5.00			2-1-2021		2,495,000		2,649,116
Western Minnesota Municipal Power Agency (Utilities Revenue, National Insured)		9.75			1-1-2016		180,000		180,000
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2027		1,565,000		1,838,961
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2030		1,000,000		1,162,420
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2032		1,250,000		1,462,475
Willmar MN Rice Memorial Hospital Project Series 2012A (GO Revenue)		5.00			2-1-2026		1,000,000		1,154,840
Winona MN Health Care Facilities Refunding Revenue Series 2012 (Health Revenue)		3.00			7-1-2018		295,000		302,086
Winona MN Health Care Facilities Refunding Revenue Series 2012 (Health Revenue)		5.00			7-1-2034		500,000		536,450
Woodbury MN Charter School Series A (Education Revenue)		3.15			12-1-2018		190,000		191,476
Woodbury MN Charter School Series A (Education Revenue)		3.90			12-1-2022		220,000		224,004
Woodbury MN Charter School Series A (Education Revenue)		5.00			12-1-2027		215,000		225,357
Woodbury MN Charter School Series A (Education Revenue)		5.00			12-1-2032		220,000		227,922
									155,663,301
Puerto Rico: 0.80%
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50			7-1-2016		1,305,000		1,320,947
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		250,000		40,000
									1,360,947
Virgin Islands: 0.33%
Virgin Islands PFA Matching Fund Loan Notes Senior Lien Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2025		500,000		560,460
Total Municipal Obligations (Cost $152,772,501)									160,822,328

Total investments in securities (Cost $152,772,501) *	93.98	%		160,822,328
Other assets and liabilities, net	6.02			10,308,437
Total net assets	100.00	%	$	171,130,765

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

12 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

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

(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.

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.

¤ 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.

* Cost for federal income tax purposes is $152,770,183 and unrealized gains (losses) consists of:

Gross unrealized gains	$	8,084,053
Gross unrealized losses		(31,908	)
Net unrealized gains	$	8,052,145

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

Statement of assets and liabilities—December 31, 2015 (unaudited) Wells Fargo Minnesota Tax-Free Fund 13

Assets
Investments in unaffiliated securities, at value (cost $152,772,501)	$	160,822,328
Cash		7,924,368
Receivable for investments sold		65,195
Receivable for Fund shares sold		488,600
Receivable for interest		2,298,823
Prepaid expenses and other assets		21,477
Total assets		171,620,791
Liabilities
Dividends payable		141,182
Payable for Fund shares redeemed		223,152
Management fee payable		36,721
Distribution fee payable		6,760
Administration fees payable		18,759
Shareholder servicing fees payable		39,320
Accrued expenses and other liabilities		24,132
Total liabilities		490,026
Total net assets	$	171,130,765
NET ASSETS CONSIST OF
Paid-in capital	$	162,212,652
Undistributed net investment income		573,849
Accumulated net realized gains on investments		294,437
Net unrealized gains on investments		8,049,827
Total net assets	$	171,130,765
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	44,631,011
Shares outstanding – Class A1		4,105,654
Net asset value per share – Class A		$10.87
Maximum offering price per share – Class A2		$11.38
Net assets – Class C	$	9,752,039
Shares outstanding – Class C1		897,146
Net asset value per share – Class C		$10.87
Net assets – Administrator Class	$	116,747,715
Shares outstanding – Administrator Class1		10,743,091
Net asset value per share – Administrator Class		$10.87

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.

14 Wells Fargo Minnesota Tax-Free Fund Statement of operations—six months ended December 31, 2015 (unaudited)

Investment income
Interest	$	3,365,970
Expenses
Management fee		342,540
Administration fees
Class A		36,907
Class C		8,116
Administrator Class		57,496
Shareholder servicing fees
Class A		57,667
Class C		12,681
Administrator Class		143,740
Distribution fee
Class C		38,042
Custody and accounting fees		5,009
Professional fees		22,200
Registration fees		18,315
Shareholder report expenses		6,352
Trustees’ fees and expenses		8,245
Other fees and expenses		5,014
Total expenses		762,324
Less: Fee waivers and/or expense reimbursements		(140,125	)
Net expenses		622,199
Net investment income		2,743,771
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		298,575
Net change in unrealized gains (losses) on investments		1,050,971
Net realized and unrealized gains (losses) on investments		1,349,546
Net increase in net assets resulting from operations	$	4,093,317

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

Statement of changes in net assets Wells Fargo Minnesota Tax-Free Fund 15

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	2,743,771					$	5,061,230
Net realized gains on investments					298,575						467,383
Net change in unrealized gains (losses) on investments					1,050,971						(1,118,830	)
Net increase in net assets resulting from operations					4,093,317						4,409,783
Distributions to shareholders from
Net investment income
Class A					(710,796	)					(1,363,496	)
Class B					N/A						(612	)1
Class C					(118,233	)					(215,214	)
Administrator Class					(1,914,742	)					(3,481,908	)
Net realized gains
Class A					(15,554	)					(138,361	)
Class C					(3,355	)					(28,745	)
Administrator Class					(39,659	)					(319,450	)
Total distributions to shareholders					(2,802,339	)					(5,547,786	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		114,034			1,234,594			469,808			5,128,940
Class C		30,768			332,769			184,666			2,013,042
Administrator Class		1,381,238			14,942,132			2,675,608			29,172,385
					16,509,495						36,314,367
Reinvestment of distributions
Class A		65,292			707,365			135,870			1,482,869
Class B		N/A			N/A			54	1		592	1
Class C		11,050			119,709			22,312			243,436
Administrator Class		120,380			1,303,826			233,860			2,551,103
					2,130,900						4,278,000
Payment for shares redeemed
Class A		(285,427	)		(3,089,744	)		(491,780	)		(5,365,514	)
Class B		N/A			N/A			(7,573	)1		(82,744	)1
Class C		(77,320	)		(836,232	)		(81,777	)		(890,891	)
Administrator Class		(1,094,913	)		(11,847,018	)		(1,644,985	)		(17,973,787	)
					(15,772,994	)					(24,312,936	)
Net increase in net assets resulting from capital share transactions					2,867,401						16,279,431
Total increase in net assets					4,158,379						15,141,428
Net assets
Beginning of period					166,972,386						151,830,958
End of period				$	171,130,765					$	166,972,386
Undistributed net investment income				$	573,849					$	573,849

¹  For the period from July 1, 2014 to December 9, 2014, Class B shares of the Fund were no longer offered to shareholders effective December 10, 2014.

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

16 Wells Fargo Minnesota Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.79			$10.86			$10.74			$11.08			$10.68			$10.75
Net investment income		0.17			0.33			0.35			0.32			0.37			0.40
Net realized and unrealized gains (losses) on investments		0.08			(0.04	)		0.20			(0.31	)		0.55			(0.05	)
Total from investment operations		0.25			0.29			0.55			0.01			0.92			0.35
Distributions to shareholders from
Net investment income		(0.17	)		(0.33	)		(0.35	)		(0.32	)		(0.37	)		(0.40	)
Net realized gains		(0.00	)2		(0.03	)		(0.08	)		(0.03	)		(0.15	)		(0.02	)
Total distributions to shareholders		(0.17	)		(0.36	)		(0.43	)		(0.35	)		(0.52	)		(0.42	)
Net asset value, end of period		$10.87			$10.79			$10.86			$10.74			$11.08			$10.68
Total return2		2.35	%		2.72	%		5.29	%		(0.01	)%		8.80	%		3.39	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.89	%		0.89	%		0.88	%		0.89	%		0.86	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		3.08	%		3.03	%		3.28	%		2.87	%		3.35	%		3.76	%
Supplemental data
Portfolio turnover rate		8	%3		20	%3		15	%3		14	%3		36	%		25	%
Net assets, end of period (000s omitted)		$44,631			$45,437			$44,499			$49,535			$52,550			$52,628

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Financial highlights Wells Fargo Minnesota Tax-Free Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.79			$10.86			$10.74			$11.08			$10.68			$10.75
Net investment income		0.13			0.25			0.27			0.24			0.28			0.32
Net realized and unrealized gains (losses) on investments		0.08			(0.04	)		0.20			(0.31	)		0.55			(0.05	)
Total from investment operations		0.21			0.21			0.47			(0.07	)		0.83			0.27
Distributions to shareholders from
Net investment income		(0.13	)		(0.25	)		(0.27	)		(0.24	)		(0.28	)		(0.32	)
Net realized gains		(0.00	)1		(0.03	)		(0.08	)		(0.03	)		(0.15	)		(0.02	)
Total distributions to shareholders		(0.13	)		(0.28	)		(0.35	)		(0.27	)		(0.43	)		(0.34	)
Net asset value, end of period		$10.87			$10.79			$10.86			$10.74			$11.08			$10.68
Total return2		1.96	%		1.96	%		4.50	%		(0.76	)%		7.99	%		2.62	%
Ratios to average net assets (annualized)
Gross expenses		1.64	%		1.64	%		1.64	%		1.63	%		1.64	%		1.61	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.33	%		2.28	%		2.53	%		2.12	%		2.58	%		3.01	%
Supplemental data
Portfolio turnover rate		8	%3		20	%3		15	%3		14	%3		36	%		25	%
Net assets, end of period (000s omitted)		$9,752			$10,061			$8,768			$8,972			$9,144			$7,670

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

18 Wells Fargo Minnesota Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.78			$10.86			$10.74			$11.07			$10.68			$10.75
Net investment income		0.18			0.36			0.38			0.35			0.39			0.43	1
Net realized and unrealized gains (losses) on investments		0.09			(0.05	)		0.20			(0.30	)		0.54			(0.05	)
Total from investment operations		0.27			0.31			0.58			0.05			0.93			0.38
Distributions to shareholders from
Net investment income		(0.18	)		(0.36	)		(0.38	)		(0.35	)		(0.39	)		(0.43	)
Net realized gains		(0.00	)2		(0.03	)		(0.08	)		(0.03	)		(0.15	)		(0.02	)
Total distributions to shareholders		(0.18	)		(0.39	)		(0.46	)		(0.38	)		(0.54	)		(0.45	)
Net asset value, end of period		$10.87			$10.78			$10.86			$10.74			$11.07			$10.68
Total return3		2.57	%		2.88	%		5.55	%		0.32	%		8.97	%		3.65	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.83	%		0.83	%		0.82	%		0.83	%		0.80	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.33	%		3.28	%		3.53	%		3.11	%		3.59	%		4.00	%
Supplemental data
Portfolio turnover rate		8	%4		20	%4		15	%4		14	%4		36	%		25	%
Net assets, end of period (000s omitted)		$116,748			$111,475			$98,483			$98,992			$109,637			$106,412

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

⁴  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Notes to financial statements (unaudited) Wells Fargo Minnesota Tax-Free 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 Minnesota Tax-Free 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 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.

20 Wells Fargo Minnesota Tax-Free Fund Notes to financial statements (unaudited)

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

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

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	160,822,328	$	0	$	160,822,328

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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.

Notes to financial statements (unaudited) Wells Fargo Minnesota Tax-Free Fund 21

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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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 C		0.16	%
Administrator Class		0.10

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 October 31, 2016 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 C shares, and 0.60% for Administrator 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 six months ended December 31, 2015, Funds Distributor received $1,136 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 Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $13,720,857 and $14,512,617, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or

22 Wells Fargo Minnesota Tax-Free Fund Notes to financial statements (unaudited)

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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $120 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

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.

Other information (unaudited) Wells Fargo Minnesota Tax-Free Fund 23

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 wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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.

24 Wells Fargo Minnesota Tax-Free 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

Other information (unaudited) Wells Fargo Minnesota Tax-Free Fund 25

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

26 Wells Fargo Minnesota Tax-Free 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

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398836 02-16 SA252/SAR252 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Summary portfolio of investments*	7
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	22
Other information	28
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.wellsfargofunds.com/assets/edocs/regulatory/holdings/municipal-bond-semi.pdf or by calling Wells Fargo Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSRS, is also available on the SEC’s website at sec.gov.

The views expressed and any forward-looking statements are as of December 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 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 Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Municipal Bond Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹ The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Municipal Bond Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Municipal Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Lyle J. Fitterer, CFA^®, CPA

Robert J. Miller

Average annual total returns (%) as of December 31, 2015¹

		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 (WMFAX)	4-8-2005		(1.37	)		5.45		4.84		3.26		6.43		5.33		0.80		0.75
Class B (WMFBX)*	4-8-2005		(2.51	)		5.31		4.78		2.49		5.64		4.78		1.55		1.50
Class C (WMFCX)	4-8-2005		1.49			5.64		4.54		2.49		5.64		4.54		1.55		1.50
Administrator Class (WMFDX)	4-8-2005		–			–		–		3.31		6.57		5.53		0.74		0.60
Institutional Class (WMBIX)	3-31-2008		–			–		–		3.55		6.73		5.57		0.47		0.47
Barclays Municipal Bond Index4	–		–			–		–		3.30		5.35		4.72		–		–

* 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, wellsfargofunds.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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to high-yield securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Municipal Bond Fund 5

Credit quality as of December 31, 2015⁵

Effective maturity distribution as of December 31, 2015⁶

¹  Historical performance shown for Institutional Class shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor 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 October 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 0.75% for Class A, 1.50% for Class B, 1.50% for Class C, 0.60% for Administrator Class, and 0.48% for Institutional 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 Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  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  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 Municipal 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,038.00	$	3.84		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.37	$	3.81		0.75	%
Class B
Actual	$	1,000.00	$	1,034.07	$	7.67		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.61		1.50	%
Class C
Actual	$	1,000.00	$	1,034.11	$	7.67		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.61		1.50	%
Administrator Class
Actual	$	1,000.00	$	1,037.76	$	3.07		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,039.51	$	2.36		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.82	$	2.34		0.46	%

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 7

The Summary portfolio of investments shows the 50 largest portfolio holdings in unaffiliated issuers and any holdings exceeding 1% of the total net assets as of the report date. The remaining securities held are grouped as “Other securities” in each category.

Security name						Shares		Value		Percent of net assets
Exchange-Traded Funds: 1.01%
iShares iBoxx $ High Yield Corporate Bond ETF							400,000	$	32,232,000		1.01	%
Total Exchange-Traded Funds (Cost $31,497,200)									32,232,000		1.01
	Interest rate			Maturity date		Principal
Municipal Obligations: 93.99%
Alabama: 1.02%
Other securities									32,633,160		1.02
Arizona: 0.82%
Other securities									26,347,655		0.82
California: 9.58%
Bay Area CA Toll Authority Toll Bridge Revenue Series A (Transportation Revenue) ±		1.26	%		4-1-2036	$	28,000,000		27,713,840		0.87
California (Miscellaneous Revenue)		5.00			8-1-2033		15,000,000		17,702,700		0.55
Golden State Tobacco Securitization Corporation California Tobacco Settlement Revenue Series A (Tobacco Revenue, AGM Insured) ¤		0.00			6-1-2026		18,150,000		13,551,153		0.42
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		6.13			11-1-2029		15,925,000		20,763,811		0.65
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		0.94			7-1-2027		27,660,000		25,847,993		0.81
Palomar CA Pomerado Health PFOTER Series 4683 (GO Revenue, National Insured, Bank of America NA LIQ) 144Aø		0.30			8-1-2037		31,250,000		31,250,000		0.98
The Regents of the University of California Limited Project Series I (Education Revenue)		5.00			5-15-2032		23,690,000		28,478,675		0.89
Other securities									141,274,712		4.41
									306,582,884		9.58
Colorado: 2.84%
Colorado Springs CO Utilities System Sub Lien Improvement Series B (Utilities Revenue, Bayerische Landesbank SPA) ø		0.13			11-1-2036		19,340,000		19,340,000		0.60
Other securities									71,656,770		2.24
									90,996,770		2.84
Connecticut: 0.41%
Other securities									13,207,886		0.41
Delaware: 0.31%
Other securities									9,934,177		0.31
District of Columbia: 1.00%
District of Columbia Population Services International (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.09			11-1-2042		25,150,000		25,150,000		0.79
Other securities									6,839,129		0.21
									31,989,129		1.00

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

8 Wells Fargo Municipal Bond Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Florida: 3.22%
Florida Development Finance Corporation Educational Facilities Revenue Renaissance Charter School Project Series A (Education Revenue)		8.50	%		6-15-2044	$	13,290,000	$	15,445,239		0.48	%
Palm Beach County FL PFOTER Series 4615 (Miscellaneous Revenue, Dexia Credit Local LIQ) ø		0.28			8-1-2029		20,245,000		20,245,000		0.63
Other securities									67,413,652		2.11
									103,103,891		3.22
Georgia: 0.52%
Other securities									16,531,671		0.52
Guam: 0.13%
Other securities									4,103,195		0.13
Hawaii: 0.10%
Other securities									3,169,989		0.10
Idaho: 0.57%
Other securities									18,372,474		0.57
Illinois: 19.41%
Chicago IL (Various Revenue) µ		0.00-5.56			1-1-2021 to 1-1-2034		79,915,000		60,449,220		1.89
Chicago IL Board of Education (GO Revenue) µ		0.00-5.25			12-1-2020 to 12-1-2031		120,905,000		64,764,316		2.03
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2027		43,365,000		23,448,323		0.73
Chicago IL CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2029		25,755,000		13,264,083		0.41
Chicago IL O’Hare International Airport (Airport Revenue)		5.00-5.75			1-1-2025 to 1-1-2044		30,290,000		34,504,011		1.08
Chicago IL Series A (GO Revenue)		5.50			1-1-2033		12,730,000		13,508,821		0.42
Cook County IL (GO Revenue) µ		5.00			11-15-2024 to 11-15-2027		6,705,000		7,442,074		0.23
Cook County IL Series G (GO Revenue)		5.00			11-15-2028		27,000,000		28,986,390		0.91
Illinois (Various Revenue) µ		5.00-6.00			4-1-2021 to 7-1-2038		68,135,000		73,665,790		2.31
Illinois Finance Authority (Various Revenue) µ		4.13-7.13			9-1-2018 to 10-1-2041		38,455,000		43,534,666		1.35
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2030 to 2-1-2031		15,000,000		17,498,450		0.55
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2032		18,000,000		20,864,880		0.65
Illinois Sports Facilities Authority (Tax Revenue) µ		0.00-5.25			6-15-2021 to 6-15-2032		50,550,000		47,304,360		1.47
Tender Option Bond Trust Receipts for Illinois Sports Facilities Authority Series 2015-XF1009 (Tax Revenue, AGM Insured, Deutsche Bank LIQ) 144Aø		0.25			6-15-2032		17,390,000		17,390,000		0.54
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue)		5.75			4-1-2038		14,000,000		16,053,240		0.50
Other securities									138,629,261		4.34
									621,307,885		19.41
Indiana: 1.10%
Other securities									35,328,803		1.10

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Iowa: 0.08%
Other securities								$	2,695,862		0.08	%
Kansas: 0.98%
Wyandotte County & Kansas City KS Sales Tax Special Obligation Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00	%		9-1-2034	$	97,000,000		29,836,230		0.93
Other securities									1,654,204		0.05
									31,490,434		0.98
Kentucky: 1.51%
Kentucky EDFA (Health Revenue)		0.00-0.33			8-15-2024 to 10-1-2028		24,605,000		20,604,548		0.65
Kentucky EDFA Catholic Health Initiatives Series B (Health Revenue) ±		1.41			2-1-2046		22,715,000		22,333,842		0.70
Other securities									5,266,206		0.16
									48,204,596		1.51
Louisiana: 1.38%
Other securities									44,005,090		1.38
Maine: 0.12%
Other securities									3,897,773		0.12
Maryland: 0.28%
Other securities									8,955,350		0.28
Massachusetts: 0.68%
Other securities									21,711,388		0.68
Michigan: 5.05%
Michigan Finance Authority (Tax Revenue) µ		4.50-8.25			10-1-2020 to 10-1-2040		52,735,000		59,516,637		1.86
Michigan Finance Authority Refunding Notes Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		12,625,000		13,659,493		0.43
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		15,500,000		15,834,800		0.49
Other securities									72,633,670		2.27
									161,644,600		5.05
Minnesota: 0.02%
Other securities									774,900		0.02
Mississippi: 0.90%
Perry County MS PCR Leaf River Forest Product Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.28			2-1-2022		19,500,000		19,500,000		0.61
Other securities									9,306,323		0.29
									28,806,323		0.90

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

10 Wells Fargo Municipal Bond Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Missouri: 0.96%
Other securities								$	30,784,796		0.96	%
Nebraska: 0.04%
Other securities									1,143,053		0.04
Nevada: 0.46%
Washoe County NV Series 2011-001 (GO Revenue, Dexia Credit Local LIQ) 144Aø		0.36	%		12-9-2030	$	13,555,000		13,555,000		0.42
Other securities									1,275,242		0.04
									14,830,242		0.46
New Hampshire: 0.06%
Other securities									1,933,266		0.06
New Jersey: 5.08%
New Jersey EDA (Various Revenue) µ		1.56-5.00			1-1-2024 to 10-1-2040		17,505,000		16,456,379		0.52
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.61			3-1-2028		40,085,000		35,296,045		1.10
New Jersey TTFA (Various Revenue) µ		0.00-6.00			12-15-2022 to 12-15-2038		86,285,000		77,235,466		2.41
Other securities							33,680,585		33,680,585		1.05
									162,668,475		5.08
New Mexico: 0.34%
Other securities									10,740,763		0.34
New York: 11.00%
New York NY Municipal Water Finance Authority (Water & Sewer Revenue)		5.00-5.75			6-15-2026 to 6-15-2044		18,055,000		20,840,437		0.65
New York NY Municipal Water Finance Authority 2nd General Resolution Series AA (Water & Sewer Revenue)		5.00			6-15-2044		17,400,000		19,761,180		0.62
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.00			6-15-2044		30,265,000		34,536,905		1.08
New York NY Municipal Water Finance Authority 2nd General Resolution Series DD (Water & Sewer Revenue)		6.00			6-15-2040		11,625,000		12,966,525		0.40
New York NY Municipal Water Finance Authority Series AA3 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.24			6-15-2032		32,440,000		32,440,000		1.01
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.00			6-15-2038		36,650,000		38,725,123		1.21
New York NY Transitional Finance Authority (Tax Revenue) µ		0.30-5.75			11-1-2022 to 1-15-2039		17,895,000		19,158,973		0.60
New York NY Transitional Finance Authority Future Tax Secured Subordinate Bonds Series A (Tax Revenue)		5.00			8-1-2031		17,075,000		20,397,454		0.64
New York NY Transitional Finance Authority Sub Series A-3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24			8-1-2022		20,500,000		20,500,000		0.64

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New York (continued)
New York NY Transitional Finance Authority Sub Series C3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24	%		8-1-2031	$	24,200,000	$	24,200,000		0.76	%
New York NY Sub Series H-5 (GO Revenue, Dexia Credit Local LOC) ø		0.24			3-1-2034		15,000,000		15,000,000		0.47
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		20,960,000		20,959,790		0.65
Other securities									72,494,515		2.27
									351,980,902		11.00
North Carolina: 0.60%
Other securities									19,246,238		0.60
Ohio: 2.44%
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2035		12,000,000		13,495,800		0.42
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		18,000,000		18,557,460		0.58
Other securities									45,997,887		1.44
									78,051,147		2.44
Oklahoma: 0.17%
Other securities									5,342,976		0.17
Oregon: 0.17%
Other securities									5,449,905		0.17
Pennsylvania: 6.11%
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.51			11-1-2039		20,000,000		20,161,000		0.63
Delaware Valley PA Regional Finance Authority Local Government Public Improvements Project (Miscellaneous Revenue)		5.75			7-1-2032		13,610,000		17,109,948		0.53
Delaware Valley PA Regional Finance Authority Local Government Series C (Miscellaneous Revenue, Ambac Insured)		7.75			7-1-2027		4,160,000		5,981,747		0.19
Delaware Valley PA Regional Finance Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		16,420,000		19,763,605		0.62
Montgomery County PA IDA Exelon Generation Company LLC Project Series A (Industrial Development Revenue) ±		2.55			12-1-2029		15,530,000		15,613,862		0.49
Pennsylvania Turnpike Commission Motor License Series B1 (Transportation Revenue)		5.00			12-1-2040		12,410,000		13,689,471		0.43
Other securities									103,288,648		3.22
									195,608,281		6.11
Puerto Rico: 0.38%
Other securities									12,073,374		0.38

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

12 Wells Fargo Municipal Bond Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Rhode Island: 0.11%
Other securities								$	3,340,803		0.11	%
South Carolina: 0.96%
Other securities									30,607,994		0.96
South Dakota: 0.31%
Other securities									9,920,650		0.31
Tennessee: 0.18%
Other securities									5,702,940		0.18
Texas: 8.87%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.27	%		12-1-2039	$	17,100,000		17,100,000		0.53
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.26			4-1-2040		16,000,000		16,000,000		0.50
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC (Industrial Development Revenue) ø		0.26-0.27			4-1-2040 to 11-1-2040		18,500,000		18,500,000		0.58
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.26			11-15-2029		13,047,210		13,047,210		0.41
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.48			9-15-2017		8,405,000		8,405,000		0.26
Texas Municipal Gas Acquisition & Supply Corporation Sub Lien Series C (Utilities Revenue) ±		1.79			12-15-2026		28,780,000		25,869,766		0.81
Texas Private Bond Activity Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		12,500,000		15,677,000		0.49
Texas Transportation Commission State Highway Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.23			4-1-2026		13,000,000		13,000,000		0.41
Other securities									156,216,895		4.88
									283,815,871		8.87
Utah: 0.48%
Other securities									15,497,219		0.48
Vermont: 1.34%
Vermont Student Assistance Corporation Education Loan Revenue Series B Class A2 (Education Revenue) ±		3.42			12-3-2035		16,800,000		16,800,000		0.53
Vermont Student Assistance Corporation Education Loan Revenue Series Class B (Education Revenue) ±		1.24			6-2-2042		25,661,650		25,950,344		0.81
									42,750,344		1.34
Virgin Islands: 0.30%
Other securities									9,477,631		0.30

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 13

Security name								Value		Percent of net assets
Virginia: 0.35%
Other securities								$	11,221,478		0.35	%
Washington: 0.24%
Other securities									7,680,200		0.24
West Virginia: 0.08%
Other securities									2,534,486		0.08
Wisconsin: 0.59%
Other securities									18,869,211		0.59
Wyoming: 0.34%
Other securities									10,893,801		0.34
Total Municipal Obligations (Cost $2,856,809,080)									3,007,961,931		93.99
	Yield					Shares
Short-Term Investments: 4.42%
Investment Companies: 4.33%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)##		0.01	%				138,723,854		138,723,854		4.33
				Maturity date		Principal
U.S. Treasury Securities: 0.09%
U.S. Treasury Bill (z) #		0.22			3-17-2016	$	2,950,000		2,949,401		0.09
Total Short-Term Investments (Cost $141,672,478)									141,673,255		4.42
Total investments in securities (Cost $3,029,978,758) *									3,181,867,186		99.42	%
Other assets and liabilities, net									18,476,338		0.58
Total net assets								$	3,200,343,524		100.00	%

± 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.

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.

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.

µ All or some of these obligations have credit enhancements or liquidity features that may, under certain circumstances, provide for repayment of principal and interest.

(l) The issuer of the security is an affiliated person 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.

# 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 $3,031,101,707 and unrealized gains (losses) consists of:

Gross unrealized gains	$	168,068,331
Gross unrealized losses		(17,302,852	)
Net unrealized gains	$	150,765,479

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

14 Wells Fargo Municipal Bond Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $2,891,254,904)	$	3,043,143,332
In affiliated securities, at value (cost $138,723,854)		138,723,854
Total investments, at value (cost $3,029,978,758)		3,181,867,186
Receivable for investments sold		1,135,915
Receivable for Fund shares sold		6,782,072
Receivable for interest		28,345,714
Prepaid expenses and other assets		260,353
Total assets		3,218,391,240
Liabilities
Dividends payable		1,682,381
Payable for investments purchased		3,367,339
Payable for floating-rate notes issued		5,025,000
Payable for Fund shares redeemed		4,787,059
Interest and fee expense payable		4,206
Payable for daily variation margin on open futures contracts		200,000
Due to custodian bank		747,668
Management fee payable		960,060
Distribution fees payable		119,445
Administration fees payable		404,206
Accrued expenses and other liabilities		750,352
Total liabilities		18,047,716
Total net assets	$	3,200,343,524
NET ASSETS CONSIST OF
Paid-in capital	$	3,057,568,909
Overdistributed net investment income		(277,519	)
Accumulated net realized losses on investments		(9,104,284	)
Net unrealized gains on investments		152,156,418
Total net assets	$	3,200,343,524
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	2,020,388,067
Shares outstanding – Class A1		193,724,060
Net asset value per share – Class A		$10.43
Maximum offering price per share – Class A2		$10.92
Net assets – Class B	$	1,097,268
Shares outstanding – Class B1		105,149
Net asset value per share – Class B		$10.44
Net assets – Class C	$	172,028,276
Shares outstanding – Class C1		16,498,167
Net asset value per share – Class C		$10.43
Net assets – Administrator Class	$	248,681,398
Shares outstanding – Administrator Class1		23,833,303
Net asset value per share – Administrator Class		$10.43
Net assets – Institutional Class	$	758,148,515
Shares outstanding – Institutional Class1		72,697,742
Net asset value per share – Institutional Class		$10.43

¹ Each Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 15

Investment income
Interest	$	61,105,626
Dividends		169,532
Income from affiliated securities		1,899
Total investment income		61,277,057
Expenses
Management fee		5,810,641
Administration fees
Class A		1,430,249
Class B		1,110
Class C		135,006
Administrator Class		153,803
Institutional Class		257,981
Investor Class		295,966	1
Shareholder servicing fees
Class A		2,234,765
Class B		1,734
Class C		210,947
Administrator Class		379,240
Investor Class		388,782	1
Distribution fees
Class B		5,201
Class C		632,841
Custody and accounting fees		84,883
Professional fees		36,888
Registration fees		61,032
Shareholder report expenses		80,568
Trustees’ fees and expenses		6,300
Interest and fee expense		15,617
Other fees and expenses		14,514
Total expenses		12,238,068
Less: Fee waivers and/or expense reimbursements		(626,680	)
Net expenses		11,611,388
Net investment income		49,665,669
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		7,689,515
Futures transactions		2,234,313
Net realized gains on investments		9,923,828
Net change in unrealized gains (losses) on:
Unaffiliated securities		57,746,249
Futures transactions		267,990
Net change in unrealized gains (losses) on investments		58,014,239
Net realized and unrealized gains (losses) on investments		67,938,067
Net increase in net assets resulting from operations	$	117,603,736

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

16 Wells Fargo Municipal Bond Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	49,665,669					$	86,557,165
Net realized gains on investments					9,923,828						29,866,649
Net change in unrealized gains (losses) on investments					58,014,239						(32,280,612	)
Net increase in net assets resulting from operations					117,603,736						84,143,202
Distributions to shareholders from
Net investment income
Class A					(27,211,806	)					(44,193,043	)
Class B					(15,956	)					(52,448	)
Class C					(1,941,300	)					(3,216,672	)
Administrator Class					(4,928,531	)					(11,782,289	)
Institutional Class					(10,774,251	)					(13,405,172	)
Investor Class					(4,799,469	)1					(13,894,674	)
Net realized gains
Class A					(9,166,267	)					(13,650,951	)
Class B					(5,119	)					(23,225	)
Class C					(776,529	)					(1,383,944	)
Administrator Class					(1,141,943	)					(3,527,595	)
Institutional Class					(3,376,986	)					(3,771,405	)
Investor Class					0	1					(4,402,074	)
Total distributions to shareholders					(64,138,157	)					(113,303,492	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		57,109,772			590,390,215			23,973,044			250,012,763
Class B		27			278			117			1,222
Class C		1,299,764			13,452,913			3,143,375			32,806,096
Administrator Class		5,324,715			54,875,730			20,246,598			211,455,411
Institutional Class		28,624,932			295,227,989			41,693,219			434,469,984
Investor Class		1,789,189	1		18,389,280	1		11,800,968			123,113,464
					972,336,405						1,051,858,940
Reinvestment of distributions
Class A		3,175,575			32,920,397			5,027,417			52,416,400
Class B		1,729			17,923			5,886			61,452
Class C		220,823			2,288,416			372,563			3,884,533
Administrator Class		559,144			5,789,106			1,393,587			14,546,594
Institutional Class		951,095			9,861,768			1,139,701			11,881,442
Investor Class		339,015	1		3,486,525	1		1,628,050			16,974,411
					54,364,135						99,764,832
Payment for shares redeemed
Class A		(23,797,317	)		(246,023,547	)		(32,551,574	)		(338,551,266	)
Class B		(59,521	)		(614,411	)		(196,214	)		(2,047,558	)
Class C		(1,089,013	)		(11,236,088	)		(2,440,156	)		(25,378,976	)
Administrator Class		(19,563,891	)		(201,048,457	)		(19,225,008	)		(200,313,517	)
Institutional Class		(7,962,553	)		(82,226,282	)		(16,438,142	)		(171,254,683	)
Investor Class		(50,409,942	)1		(520,861,783	)1		(17,852,131	)		(185,133,597	)
					(1,062,010,568	)					(922,679,597	)
Net increase (decrease) in net assets resulting from capital share transactions					(35,310,028	)					228,944,175
Total increase in net assets					18,155,551						199,783,885
Net assets
Beginning of period					3,182,187,973						2,982,404,088
End of period				$	3,200,343,524					$	3,182,187,973
Overdistributed net investment income				$	(277,519	)				$	(271,875	)

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

Financial highlights Wells Fargo Municipal Bond Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.25			$10.33			$10.00			$10.24			$9.54			$9.51
Net investment income		0.16			0.28			0.33			0.27			0.37			0.40
Net realized and unrealized gains (losses) on investments		0.23			0.01			0.40			(0.08	)		0.70			0.03
Total from investment operations		0.39			0.29			0.73			0.19			1.07			0.43
Distributions to shareholders from
Net investment income		(0.16	)		(0.28	)		(0.33	)		(0.27	)		(0.37	)		(0.39	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1		(0.01	)
Total distributions to shareholders		(0.21	)		(0.37	)		(0.40	)		(0.43	)		(0.37	)		(0.40	)
Net asset value, end of period		$10.43			$10.25			$10.33			$10.00			$10.24			$9.54
Total return2		3.80	%		2.81	%		7.60	%		1.70	%		11.45	%		4.70	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%3		0.80	%3		0.80	%3		0.80	%3		0.81	%3		0.83	%3
Net expenses		0.75	%3		0.75	%3		0.76	%3		0.75	%3		0.75	%3		0.77	%3
Net investment income		3.04	%		2.71	%		3.36	%		2.56	%		3.72	%		4.18	%
Supplemental data
Portfolio turnover rate		9	%		27	%		37	%		54	%		63	%		69	%
Net assets, end of period (000s omitted)		$2,020,388			$1,612,212			$1,661,362			$1,807,790			$1,759,128			$1,503,256

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2015 (unaudited)	0.00	%
Year ended June 30, 2015	0.00	%
Year ended June 30, 2014	0.01	%
Year ended June 30, 2013	0.00	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 2011	0.02	%

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

18 Wells Fargo Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS B				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.26			$10.34			$10.00			$10.24			$9.54			$9.51
Net investment income		0.12	1		0.20	1		0.26	1		0.19			0.29			0.33
Net realized and unrealized gains (losses) on investments		0.23			0.02			0.41			(0.08	)		0.71			0.03
Total from investment operations		0.35			0.22			0.67			0.11			1.00			0.36
Distributions to shareholders from
Net investment income		(0.12	)		(0.21	)		(0.26	)		(0.19	)		(0.30	)		(0.32	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)2		(0.01	)
Total distributions to shareholders		(0.17	)		(0.30	)		(0.33	)		(0.35	)		(0.30	)		(0.33	)
Net asset value, end of period		$10.44			$10.26			$10.34			$10.00			$10.24			$9.54
Total return3		3.41	%		2.05	%		6.90	%		0.94	%		10.62	%		3.92	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%4		1.54	%4		1.55	%4		1.54	%4		1.56	%4		1.57	%4
Net expenses		1.50	%4		1.50	%4		1.51	%4		1.50	%4		1.50	%4		1.52	%4
Net investment income		2.30	%		1.94	%		2.66	%		1.83	%		3.05	%		3.39	%
Supplemental data
Portfolio turnover rate		9	%		27	%		37	%		54	%		63	%		69	%
Net assets, end of period (000s omitted)		$1,097			$1,671			$3,650			$7,604			$14,723			$24,040

¹  Calculated based upon average shares outstanding.

²  Amount is less than $0.005.

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

⁴  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2015 (unaudited)	0.00	%
Year ended June 30, 2015	0.00	%
Year ended June 30, 2014	0.01	%
Year ended June 30, 2013	0.00	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 2011	0.02	%

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

Financial highlights Wells Fargo Municipal Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.25			$10.33			$10.00			$10.23			$9.53			$9.51
Net investment income		0.12			0.20			0.26			0.19			0.30			0.32
Net realized and unrealized gains (losses) on investments		0.23			0.01			0.40			(0.07	)		0.70			0.03
Total from investment operations		0.35			0.21			0.66			0.12			1.00			0.35
Distributions to shareholders from
Net investment income		(0.12	)		(0.20	)		(0.26	)		(0.19	)		(0.30	)		(0.32	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1		(0.01	)
Total distributions to shareholders		(0.17	)		(0.29	)		(0.33	)		(0.35	)		(0.30	)		(0.33	)
Net asset value, end of period		$10.43			$10.25			$10.33			$10.00			$10.23			$9.53
Total return2		3.41	%		2.05	%		6.80	%		1.04	%		10.63	%		3.81	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%3		1.55	%3		1.55	%3		1.55	%3		1.56	%3		1.58	%3
Net expenses		1.50	%3		1.50	%3		1.51	%3		1.50	%3		1.50	%3		1.52	%3
Net investment income		2.30	%		1.97	%		2.60	%		1.82	%		2.95	%		3.42	%
Supplemental data
Portfolio turnover rate		9	%		27	%		37	%		54	%		63	%		69	%
Net assets, end of period (000s omitted)		$172,028			$164,703			$154,863			$168,658			$168,883			$126,338

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2015 (unaudited)	0.00	%
Year ended June 30, 2015	0.00	%
Year ended June 30, 2014	0.01	%
Year ended June 30, 2013	0.00	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 2011	0.02	%

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

20 Wells Fargo Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.26			$10.34			$10.01			$10.24			$9.54			$9.50
Net investment income		0.17			0.30			0.35			0.28			0.39			0.40
Net realized and unrealized gains (losses) on investments		0.22			0.01			0.40			(0.07	)		0.69			0.06
Total from investment operations		0.39			0.31			0.75			0.21			1.08			0.46
Distributions to shareholders from
Net investment income		(0.17	)		(0.30	)		(0.35	)		(0.28	)		(0.38	)		(0.41	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1		(0.01	)
Total distributions to shareholders		(0.22	)		(0.39	)		(0.42	)		(0.44	)		(0.38	)		(0.42	)
Net asset value, end of period		$10.43			$10.26			$10.34			$10.01			$10.24			$9.54
Total return2		3.78	%		2.97	%		7.75	%		1.96	%		11.62	%		4.96	%
Ratios to average net assets (annualized)
Gross expenses		0.73	%3		0.73	%3		0.74	%3		0.74	%3		0.74	%3		0.75	%3
Net expenses		0.60	%3		0.60	%3		0.61	%3		0.60	%3		0.60	%3		0.62	%3
Net investment income		3.20	%		2.86	%		3.49	%		2.72	%		3.74	%		4.26	%
Supplemental data
Portfolio turnover rate		9	%		27	%		37	%		54	%		63	%		69	%
Net assets, end of period (000s omitted)		$248,681			$384,884			$362,896			$451,005			$227,942			$78,861

¹  Amount is less than $0.005.

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

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2015 (unaudited)	0.00	%
Year ended June 30, 2015	0.00	%
Year ended June 30, 2014	0.01	%
Year ended June 30, 2013	0.00	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 2011	0.02	%

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

Financial highlights Wells Fargo Municipal Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.25			$10.33			$10.00			$10.24			$9.54			$9.51
Net investment income		0.18			0.31			0.36			0.30			0.40			0.42
Net realized and unrealized gains (losses) on investments		0.23			0.01			0.40			(0.08	)		0.70			0.04
Total from investment operations		0.41			0.32			0.76			0.22			1.10			0.46
Distributions to shareholders from
Net investment income		(0.18	)		(0.31	)		(0.36	)		(0.30	)		(0.40	)		(0.42	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1		(0.01	)
Total distributions to shareholders		(0.23	)		(0.40	)		(0.43	)		(0.46	)		(0.40	)		(0.43	)
Net asset value, end of period		$10.43			$10.25			$10.33			$10.00			$10.24			$9.54
Total return2		3.95	%		3.11	%		7.90	%		2.00	%		11.76	%		4.99	%
Ratios to average net assets (annualized)
Gross expenses		0.46	%3		0.47	%3		0.47	%3		0.47	%3		0.47	%3		0.50	%3
Net expenses		0.46	%3		0.47	%3		0.47	%3		0.47	%3		0.47	%3		0.49	%3
Net investment income		3.34	%		3.02	%		3.58	%		2.85	%		4.15	%		4.46	%
Supplemental data
Portfolio turnover rate		9	%		27	%		37	%		54	%		63	%		69	%
Net assets, end of period (000s omitted)		$758,149			$523,736			$255,112			$143,062			$151,285			$427,525

¹  Amount is less than $0.005.

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

³ Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2015 (unaudited)	0.00	%
Year ended June 30, 2015	0.00	%
Year ended June 30, 2014	0.01	%
Year ended June 30, 2013	0.00	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 2011	0.02	%

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

22 Wells Fargo Municipal Bond Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 Municipal Bond Fund (the “Fund”) which is a diversified series of the Trust.

Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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.

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.

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Notes to financial statements (unaudited) Wells Fargo Municipal Bond Fund 23

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.

Inverse floating-rate obligations

The Fund may participate in inverse floating-rate obligation (“Inverse Floater”) structures whereby a fixed-rate bond (“Fixed-Rate Bond”) purchased by the Fund is transferred to a tender option bond trust (“TOB Trust”). The TOB Trust issues floating-rate notes (“Floating-Rate Notes”) to third-parties, which are collateralized by the Fixed-Rate Bond, and the Fund buys a residual interest in the TOB Trust’s assets and cash flows. The Inverse Floater held by the Fund gives the Fund the right (1) to cause the holders of the Floating-Rate Notes to tender their notes at par, and (2) to have the Fixed-Rate Bond held by the TOB Trust transferred back to the Fund, thereby collapsing the TOB Trust. The Fund accounts for the transaction described above as a secured borrowing by including the Fixed-Rate Bond in its Summary Portfolio of Investments, and by recording the Floating-Rate Notes as a liability in the Statement of Assets and Liabilities. The Fund also records the interest paid on Floating-Rate Notes as interest expense. The Floating-Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes for redemption at par at each reset date. Inverse Floaters held by the Fund are securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended.

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

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

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt 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 June 30, 2015, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

2016	2017	2018	2019
$5,924,646	$5,924,646	$5,924,646	$130,027

24 Wells Fargo Municipal Bond Fund Notes to financial statements (unaudited)

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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	32,232,000	$	0	$	0	$	32,232,000
Municipal obligations		0		3,007,961,931		0		3,007,961,931
Short-term investments
Investment companies		138,723,854		0		0		138,723,854
U.S. Treasury securities		2,949,401		0		0		2,949,401
Total assets	$	173,905,255	$	3,007,961,931	$	0	$	3,181,867,186
Liabilities
Futures contracts	$	0	$	200,000	$	0	$	200,000
Total liabilities	$	0	$	200,000	$	0	$	200,000

Futures contracts are reported at their variation margin at measurement date, which represents the amount due 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 December 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

Notes to financial statements (unaudited) Wells Fargo Municipal Bond Fund 25

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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.36% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management 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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class A shares, 1.50% for Class B shares, 1.50% for Class C shares, 0.60% for Administrator Class shares, and 0.48% 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 six months ended December 31, 2015, Funds Distributor received $27,924 from the sale of Class A shares and $266 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, Administrator Class and Investor Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $257,374,499 and $690,379,235, respectively.

26 Wells Fargo Municipal Bond Fund Notes to financial statements (unaudited)

6. DERIVATIVE TRANSACTIONS

During the six months ended December 31, 2015, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

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

Expiration date	Counterparty	Contracts	Type		Contract value at December 31, 2015		Unrealized gains
3-21-2016	JPMorgan	400 Short		U.S. Treasury Bonds	$	61,500,000	$	267,990

The Fund had an average notional amount of $554,968 in long futures contracts and $44,181,296 in short futures contracts during the six months ended December 31, 2015.

On December 31, 2015, the cumulative unrealized gains on futures contracts in the amount of $267,990 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, 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 liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral pledged1			Net amount of liabilities
Futures – variation margin	JPMorgan	$200,000	$	0	$	(200,000	)	$	0

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

7. BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $2,306 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

During the six months ended December 31, 2015, the Fund participated in Inverse Floaters which are accounted for as a secured borrowing. At December 31, 2015, the value of Floating-Rate Notes outstanding and the related collateral were $5,025,000 and $11,554,284, respectively. During the six months ended December 31, 2015, the Fund held Floating-Rate Notes that had an average daily balance outstanding of $5,025,000 (on an annualized basis) and incurred interest and fee expense in the amount of $15,617.

Notes to financial statements (unaudited) Wells Fargo Municipal Bond Fund 27

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 Municipal Bond Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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 Municipal Bond Fund 29

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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

30 Wells Fargo Municipal Bond Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

List of abbreviations Wells Fargo Municipal Bond Fund 31

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398837 02-16 SA253/SAR253 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo North Carolina Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	10
Statement of operations	11
Statement of changes in net assets	12
Financial highlights	13
Notes to financial statements	16
Other information	20
List of abbreviations	23

The views expressed and any forward-looking statements are as of December 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 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 North Carolina Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo North Carolina Tax-Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo North Carolina Tax-Free Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo North Carolina Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and North Carolina income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Bruce R. Johns

Robert J. Miller

Average annual total returns (%) as of December 31, 2015¹

		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 (ENCMX)	1-11-1993		(1.69	)		4.16		3.32		2.91		5.13		3.80		0.94		0.85
Class C (ENCCX)	3-27-2002		1.14			4.34		3.03		2.14		4.34		3.03		1.69		1.60
Institutional Class (ENCYX)	2-28-1994		–			–		–		3.23		5.45		4.10		0.61		0.54
Barclays Municipal Bond Index4	–		–			–		–		3.30		5.35		4.72		–		–
Barclays North Carolina Municipal Bond Index5	–		–			–		–		2.89		4.63		4.55		–		–

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, wellsfargofunds.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 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 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 Fund is exposed to North Carolina municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo North Carolina Tax-Free Fund 5

Credit quality as of December 31, 2015⁶

Effective maturity distribution as of December 31, 2015⁷

¹  Historical performance shown for all classes of the Fund prior to July 12, 2010, is based on the performance of the Fund’s predecessor, Evergreen North Carolina Municipal Bond 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 October 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 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 Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays North Carolina Municipal Bond Index is the North Carolina component of the Barclays Municipal Bond Index. You cannot invest directly in an index.

⁶  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.

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 North Carolina Tax-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,024.18	$	4.32		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	1,020.34	$	8.13		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Institutional Class
Actual	$	1,000.00	$	1,025.77	$	2.75		0.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.42	$	2.75		0.54	%

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—December 31, 2015 (unaudited) Wells Fargo North Carolina Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 94.63%
California: 1.16%
University of California Limited Project Series G (Education Revenue)		5.00	%		5-15-2037	$	1,000,000	$	1,163,240
Guam: 4.65%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,110,810
Guam Government Hotel Occupancy Series A (Tax Revenue)		6.00			11-1-2026		2,000,000		2,370,120
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2023		1,000,000		1,179,920
									4,660,850
Illinois: 1.00%
Chicago IL Board of Education Refunding Bond Series A (GO Revenue)		4.01			3-1-2032		1,000,000		999,280
Indiana: 1.17%
Indiana Finance Authority Wastewater Utilities Revenue Clean Water Act Project Series A (Water & Sewer Revenue)		5.00			10-1-2031		1,000,000		1,173,030
New York: 1.70%
New York Dormitory Authority Personal Income Tax Series B (Tax Revenue)		5.00			3-15-2042		1,500,000		1,699,830
North Carolina: 75.95%
Cape Fear NC Public Utility Authority (Water & Sewer Revenue)		5.00			8-1-2035		3,000,000		3,295,680
Charlotte NC Airport Series A (Airport Revenue)		5.50			7-1-2034		2,500,000		2,856,850
Charlotte NC AMT Series B (Airport Revenue)		5.00			7-1-2020		1,480,000		1,696,272
Charlotte NC AMT Series B (Airport Revenue)		5.50			7-1-2024		810,000		928,236
Charlotte NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			12-1-2026		1,160,000		1,361,620
Charlotte NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			6-1-2030		1,000,000		1,170,910
Charlotte NC Certificate of Participation Series E (Miscellaneous Revenue)		5.00			6-1-2023		3,650,000		4,093,147
Charlotte NC Douglas Airport Series A (Airport Revenue)		5.00			7-1-2025		1,645,000		1,899,449
Charlotte-Mecklenburg NC Hospital Authority (Health Revenue)		5.00			1-15-2027		1,885,000		2,053,708
Cumberland County NC Limited Obligation Series B (Miscellaneous Revenue)		5.00			11-1-2025		1,000,000		1,183,400
Cumberland County NC Limited Obligation Series B (Miscellaneous Revenue)		5.00			11-1-2026		1,000,000		1,180,350
Fayetteville NC Public Works Commission Series B (Utilities Revenue)		5.00			3-1-2023		600,000		664,578
Johnston NC Memorial Hospital Authority (Health Revenue, AGM/FHA Insured)		5.25			10-1-2036		1,960,000		2,146,690
Mecklenburg County NC Public Facilities Corporation (Miscellaneous Revenue)		5.00			3-1-2022		1,035,000		1,161,539
New Hanover County NC New Hanover Regional Medical Center (Health Revenue)		5.00			10-1-2026		1,000,000		1,144,030
New Hanover County NC New Hanover Regional Medical Center (Health Revenue)		5.00			10-1-2028		3,000,000		3,426,870
New Hanover County NC New Hanover Regional Medical Center (Health Revenue, AGM Insured)		5.13			10-1-2031		1,800,000		1,988,964
North Carolina Capital Improvement Limited Series A (Miscellaneous Revenue)		5.00			5-1-2026		3,000,000		3,279,690
North Carolina Department of Transportation (Transportation Revenue)		5.00			6-30-2028		1,275,000		1,398,713
North Carolina Facilities Finance Agency Student Revenue (Housing Revenue, AGC Insured)		5.00			6-1-2027		1,000,000		1,154,200
North Carolina HFA Series 25-A (Housing Revenue)		4.65			7-1-2021		1,735,000		1,750,997
North Carolina HFA Series B (Housing Revenue)		4.25			1-1-2028		2,970,000		3,068,456
North Carolina Medical Care Commission Baptist Hospital Project (Health Revenue)		5.25			6-1-2029		2,000,000		2,255,360
North Carolina Medical Care Commission Cleveland County Health Care System (Health Revenue)		5.00			1-1-2018		500,000		540,545
North Carolina Medical Care Commission Presbyterian Homes Project (Health Revenue)		5.50			10-1-2031		2,000,000		2,034,020
North Carolina Medical Care Commission Presbyterian Homes Project (Health Revenue)		5.60			10-1-2036		1,500,000		1,523,535

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

8 Wells Fargo North Carolina Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
North Carolina (continued)
North Carolina Medical Care Commission Southeastern Regional Medical Center (Health Revenue)		5.00	%		6-1-2026	$	385,000	$	431,223
North Carolina Medical Care Commission Southeastern Regional Medical Center (Health Revenue)		5.00			6-1-2032		500,000		545,760
North Carolina Medical Care Commission Stanley Memorial Hospital Project (Health Revenue)		5.00			7-1-2033		1,000,000		1,038,030
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.25			12-1-2033		1,500,000		1,725,240
North Carolina Medical Care Commission Wake Forest Baptist Medical Center (Health Revenue)		5.00			12-1-2022		1,950,000		2,310,633
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Series A (Utilities Revenue)		5.00			1-1-2021		2,720,000		3,093,946
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Series A (Utilities Revenue)		5.00			1-1-2030		1,550,000		1,703,760
North Carolina Port Authority Series B (Airport Revenue)		5.00			2-1-2025		3,540,000		3,927,524
North Carolina Raleigh-Durham Airport Authority Series B-1 (Airport Revenue)		5.00			11-1-2028		1,500,000		1,711,995
Orange County NC Public Facilities Company Limited Obligation (Miscellaneous Revenue)		5.00			10-1-2026		1,000,000		1,185,290
Raleigh NC Limited Obligiation Series A (Miscellaneous Revenue)		5.00			10-1-2033		1,000,000		1,185,850
University of North Carolina at Greensboro (Education Revenue)		5.00			4-1-2033		2,000,000		2,344,540
University of North Carolina at Greensboro (Education Revenue)		5.00			4-1-2039		1,620,000		1,857,719
University of North Carolina Wilmington Student Housing Project Certificate of Participation (Miscellaneous Revenue, National Insured)		5.00			6-1-2022		1,000,000		1,019,360
Wilmington NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			6-1-2029		2,580,000		2,789,391
									76,128,070
Tennessee: 3.50%
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2026		1,020,000		1,218,869
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2021		2,000,000		2,288,600
									3,507,469
Virgin Islands: 3.20%
Virgin Islands PFA (Miscellaneous Revenue)		6.75			10-1-2019		2,890,000		3,213,015
Washington: 1.19%
Tumwater Office Properties Washington Lease Revenue Washington Office Buildings (Miscellaneous Revenue)		5.00			7-1-2026		1,000,000		1,193,350
Wisconsin: 1.11%
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.75			8-1-2033		1,000,000		1,114,280
Total Municipal Obligations (Cost $86,860,811)									94,852,414
	Yield					Shares
Short-Term Investments: 3.91%
Investment Companies: 3.91%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)		0.01					3,920,228		3,920,228
Total Short-Term Investments (Cost $3,920,228)									3,920,228

Total investments in securities (Cost $90,781,039) *	98.54	%		98,772,642
Other assets and liabilities, net	1.46			1,465,396
Total net assets	100.00	%	$	100,238,038

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo North Carolina Tax-Free Fund 9

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 issuer of the security is an affiliated person 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 $90,781,039 and unrealized gains (losses) consists of:

Gross unrealized gains	$	8,005,917
Gross unrealized losses		(14,314	)
Net unrealized gains	$	7,991,603

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

10 Wells Fargo North Carolina Tax-Free Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $86,860,811)	$	94,852,414
In affiliated securities, at value (cost $3,920,228)		3,920,228
Total investments, at value (cost $90,781,039)		98,772,642
Receivable for investments sold		431,150
Receivable for Fund shares sold		16,760
Receivable for interest		1,289,949
Prepaid expenses and other assets		26,629
Total assets		100,537,130
Liabilities
Dividends payable		163,163
Payable for Fund shares redeemed		43,830
Management fee payable		28,359
Distribution fee payable		3,199
Administration fees payable		10,462
Professional fees payable		19,770
Accrued expenses and other liabilities		30,309
Total liabilities		299,092
Total net assets	$	100,238,038
NET ASSETS CONSIST OF
Paid-in capital	$	102,563,885
Overdistributed net investment income		(59,574	)
Accumulated net realized losses on investments		(10,257,876	)
Net unrealized gains on investments		7,991,603
Total net assets	$	100,238,038
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	35,330,125
Shares outstanding – Class A1		3,382,334
Net asset value per share – Class A		$10.45
Maximum offering price per share – Class A2		$10.94
Net assets – Class C	$	4,601,958
Shares outstanding – Class C1		440,523
Net asset value per share – Class C		$10.45
Net assets – Institutional Class	$	60,305,955
Shares outstanding – Institutional Class1		5,773,417
Net asset value per share – Institutional Class		$10.45

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo North Carolina Tax-Free Fund 11

Investment income
Interest	$	1,973,902
Income from affiliated securities		109
Total investment income		1,974,011
Expenses
Management fee		203,136
Administration fees
Class A		28,271
Class C		3,679
Institutional Class		24,652
Shareholder servicing fees
Class A		44,173
Class C		5,749
Distribution fee
Class C		17,246
Custody and accounting fees		5,284
Professional fees		24,025
Registration fees		25,121
Shareholder report expenses		4,653
Trustees’ fees and expenses		11,717
Other fees and expenses		4,123
Total expenses		401,829
Less: Fee waivers and/or expense reimbursements		(48,446	)
Net expenses		353,383
Net investment income		1,620,628
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(24,111	)
Net change in unrealized gains (losses) on investments		841,442
Net realized and unrealized gains (losses) on investments		817,331
Net increase in net assets resulting from operations	$	2,437,959

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

12 Wells Fargo North Carolina Tax-Free Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	1,620,628					$	3,380,153
Net realized gains (losses) on investments					(24,111	)					901,303
Net change in unrealized gains (losses) on investments					841,442						(448,372	)
Net increase in net assets resulting from operations					2,437,959						3,833,084
Distributions to shareholders from
Net investment income
Class A					(536,237	)					(1,066,500	)
Class C					(52,574	)					(102,579	)
Institutional Class					(1,031,817	)					(2,211,074	)
Total distributions to shareholders					(1,620,628	)					(3,380,153	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		267,214			2,778,361			66,427			692,635
Class C		24,445			254,105			53,420			558,887
Institutional Class		338,533			3,521,726			976,885			10,167,225
					6,554,192						11,418,747
Reinvestment of distributions
Class A		47,200			491,437			92,637			968,218
Class C		4,604			47,950			8,722			91,170
Institutional Class		18,832			196,097			35,923			375,472
					735,484						1,434,860
Payment for shares redeemed
Class A		(210,845	)		(2,194,971	)		(468,709	)		(4,906,152	)
Class C		(16,121	)		(167,753	)		(76,563	)		(796,737	)
Institutional Class		(456,643	)		(4,749,390	)		(2,156,709	)		(22,473,470	)
					(7,112,114	)					(28,176,359	)
Net increase (decrease) in net assets resulting from capital share transactions					177,562						(15,322,752	)
Total increase (decrease) in net assets					994,893						(14,869,821	)
Net assets
Beginning of period					99,243,145						114,112,966
End of period				$	100,238,038					$	99,243,145
Overdistributed net investment income				$	(59,574	)				$	(59,574	)

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

Financial highlights Wells Fargo North Carolina Tax-Free Fund 13

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended August 31, 20102
CLASS A				2015			2014			2013			2012			20111
Net asset value, beginning of period		$10.36			$10.33			$10.08			$10.34			$9.71			$10.12			$9.64
Net investment income		0.16			0.32			0.33			0.32			0.34			0.30			0.39	3
Net realized and unrealized gains (losses) on investments		0.09			0.03			0.25			(0.26	)		0.63			(0.41	)		0.49
Total from investment operations		0.25			0.35			0.58			0.06			0.97			(0.11	)		0.88
Distributions to shareholders from
Net investment income		(0.16	)		(0.32	)		(0.33	)		(0.32	)		(0.34	)		(0.30	)		(0.40	)
Net asset value, end of period		$10.45			$10.36			$10.33			$10.08			$10.34			$9.71			$10.12
Total return4		2.42	%		3.35	%		5.92	%		0.51	%		10.09	%		(1.05	)%		9.38	%
Ratios to average net assets (annualized)
Gross expenses		0.96	%		0.94	%		0.94	%		0.91	%		0.90	%		0.91	%		0.90	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.88	%
Net investment income		3.03	%		3.01	%		3.32	%		3.06	%		3.34	%		3.72	%		4.03	%
Supplemental data
Portfolio turnover rate		1	%		12	%		15	%		15	%		48	%		44	%		63	%
Net assets, end of period (000s omitted)		$35,330			$33,969			$37,067			$41,879			$44,082			$47,954			$56,508

¹  For the ten months ended June 30, 2011. The Fund changed its fiscal year end from August 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen North Carolina Municipal Bond Fund which became accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class A of Evergreen North Carolina Municipal Bond Fund.

³  Calculated based upon average shares outstanding

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

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

14 Wells Fargo North Carolina Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended August 31, 20102
CLASS C				2015			2014			2013			2012			20111
Net asset value, beginning of period		$10.36			$10.33			$10.08			$10.34			$9.71			$10.12			$9.64
Net investment income		0.12			0.24			0.26			0.24			0.26			0.24			0.32	3
Net realized and unrealized gains (losses) on investments		0.09			0.03			0.25			(0.26	)		0.63			(0.41	)		0.49
Total from investment operations		0.21			0.27			0.51			(0.02	)		0.89			(0.17	)		0.81
Distributions to shareholders from
Net investment income		(0.12	)		(0.24	)		(0.26	)		(0.24	)		(0.26	)		(0.24	)		(0.33	)
Net asset value, end of period		$10.45			$10.36			$10.33			$10.08			$10.34			$9.71			$10.12
Total return4		2.03	%		2.58	%		5.13	%		(0.24	)%		9.27	%		(1.66	)%		8.57	%
Ratios to average net assets (annualized)
Gross expenses		1.71	%		1.69	%		1.69	%		1.66	%		1.65	%		1.66	%		1.65	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%		1.63	%
Net investment income		2.29	%		2.26	%		2.56	%		2.31	%		2.59	%		2.96	%		3.26	%
Supplemental data
Portfolio turnover rate		1	%		12	%		15	%		15	%		48	%		44	%		63	%
Net assets, end of period (000s omitted)		$4,602			$4,431			$4,566			$5,164			$5,523			$5,789			$7,671

¹ For the ten months ended June 30, 2011. The Fund changed its fiscal year end from August 31 to June 30, effective June 30, 2011.

² After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen North Carolina Municipal Bond Fund which became accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class C of Evergreen North Carolina Municipal Bond Fund.

³ Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo North Carolina Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended August 31, 20102
INSTITUTIONAL CLASS				2015			2014			2013			2012			20111
Net asset value, beginning of period		$10.36			$10.33			$10.08			$10.34			$9.71			$10.12			$9.64
Net investment income		0.18			0.35			0.36			0.35			0.37			0.32			0.42	3
Net realized and unrealized gains (losses) on investments		0.09			0.03			0.26			(0.26	)		0.63			(0.41	)		0.49
Total from investment operations		0.27			0.38			0.62			0.09			1.00			(0.09	)		0.91
Distributions to shareholders from
Net investment income		(0.18	)		(0.35	)		(0.37	)		(0.35	)		(0.37	)		(0.32	)		(0.43	)
Net asset value, end of period		$10.45			$10.36			$10.33			$10.08			$10.34			$9.71			$10.12
Total return4		2.58	%		3.67	%		6.25	%		0.82	%		10.43	%		(0.79	)%		9.66	%
Ratios to average net assets (annualized)
Gross expenses		0.63	%		0.61	%		0.61	%		0.58	%		0.57	%		0.58	%		0.64	%
Net expenses		0.54	%		0.54	%		0.54	%		0.54	%		0.54	%		0.54	%		0.63	%
Net investment income		3.35	%		3.32	%		3.61	%		3.37	%		3.65	%		4.02	%		4.29	%
Supplemental data
Portfolio turnover rate		1	%		12	%		15	%		15	%		48	%		44	%		63	%
Net assets, end of period (000s omitted)		$60,306			$60,844			$72,479			$77,926			$90,439			$107,972			$150,184

¹ For the ten months ended June 30, 2011. The Fund changed its fiscal year end from August 31 to June 30, effective June 30, 2011.

² After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen North Carolina Municipal Bond Fund which became accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class I of Evergreen North Carolina Municipal Bond Fund.

³ Calculated based upon average shares outstanding

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

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

16 Wells Fargo North Carolina Tax-Free Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 North Carolina Tax-Free Fund (the “Fund”) which is a non-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.

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

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

Notes to financial statements (unaudited) Wells Fargo North Carolina Tax-Free Fund 17

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss 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 June 30, 2015, the Fund had current year deferred post-October capital losses consisting of $10,233,766 in short-term losses which was recognized on the first day of the current fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	94,852,414	$	0	$	94,852,414
Short-term investments
Investment companies		3,920,228		0		0		3,920,228
Total assets	$	3,920,228	$	94,852,414	$	0	$	98,772,642

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

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.

18 Wells Fargo North Carolina Tax-Free Fund Notes to financial statements (unaudited)

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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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 C		0.16	%
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 October 31, 2016 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 C shares, and 0.54% 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 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 six months ended December 31, 2015, Funds Distributor received $2,478 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 and Class C of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $1,129,400 and $3,963,168, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or

Notes to financial statements (unaudited) Wells Fargo North Carolina Tax-Free Fund 19

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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $72 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

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.

20 Wells Fargo North Carolina Tax-Free Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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 North Carolina Tax-Free Fund 21

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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

22 Wells Fargo North Carolina Tax-Free Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

List of abbreviations Wells Fargo North Carolina Tax-Free Fund 23

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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398838 02-16 SA254/SAR254 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Pennsylvania Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	18
Other information	22
List of abbreviations	25

The views expressed and any forward-looking statements are as of December 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 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 Pennsylvania Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Pennsylvania Tax-Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Pennsylvania Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and Pennsylvania individual income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Bruce R. Johns

Robert J. Miller

Average annual total returns (%) as of December 31, 2015¹

		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 (EKVAX)	12-27-1990		(1.01	)		5.04		4.05		3.66		6.01		4.54		0.90		0.74
Class B (EKVBX)*	2-1-1993		(2.20	)		4.88		3.99		2.80		5.21		3.99		1.65		1.49
Class C (EKVCX)	2-1-1993		1.89			5.22		3.76		2.89		5.22		3.76		1.65		1.49
Institutional Class (EKVYX)	11-24-1997		–			–		–		3.92		6.27		4.80		0.57		0.49
Barclays Municipal Bond Index4	–		–			–		–		3.30		5.35		4.72		–		–
Barclays Pennsylvania Municipal Bond Index5	–		–			–		–		3.54		5.53		4.91		–		–

* 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, wellsfargofunds.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. 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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to Pennsylvania municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 5

Credit quality as of December 31, 2015⁶

Effective maturity distribution as of December 31, 2015⁷

¹  Historical performance shown for all classes of the Fund prior to July 12, 2010, is based on the performance of the Fund’s predecessor, Evergreen Pennsylvania Municipal Bond 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 October 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 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 Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays Pennsylvania Municipal Bond Index is the Pennsylvania component of the Barclays Municipal Bond Index. You cannot invest directly in an index.

⁶  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.

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 Pennsylvania Tax-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,007.10	$	3.73		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42	$	3.76		0.74	%
Class B
Actual	$	1,000.00	$	1,003.33	$	7.50		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.65	$	7.56		1.49	%
Class C
Actual	$	1,000.00	$	1,003.35	$	7.50		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.65	$	7.56		1.49	%
Institutional Class
Actual	$	1,000.00	$	1,008.34	$	2.47		0.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.67	$	2.49		0.49	%

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 96.51%
Florida: 0.52%
Jacksonville FL Economic Development AMT Metropolitan Parking Solutions Project (Industrial Development Revenue, ACA Insured)		5.50	%		10-1-2030	$	1,000,000	$	1,001,810
Guam: 1.22%
Guam Government Business Privilege Series D (Tax Revenue)		5.00			11-15-2022		1,000,000		1,169,840
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.25			7-1-2025		1,000,000		1,160,320
									2,330,160
Illinois: 0.52%
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.01			3-1-2032		1,000,000		999,280
Pennsylvania: 92.02%
Allegheny County PA Higher Education Building Authority Refunding Bond Duquesne University of The Holy Spirit Series A (Education Revenue)		5.00			3-1-2029		1,135,000		1,331,945
Allegheny County PA Hospital Development Authority Health Center Series B (Health Revenue, National Insured)		6.00			7-1-2027		1,800,000		2,420,964
Allegheny County PA Port Authority Refunding Bond (Tax Revenue)		5.75			3-1-2029		3,000,000		3,552,810
Allegheny County PA Series C-65 (GO Revenue)		5.50			5-1-2024		4,675,000		5,482,419
Blair County PA (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2026		955,000		1,148,416
Bucks County PA IDA Lane Charter School Project Series A (Education Revenue) 144A		4.88			3-15-2027		1,700,000		1,711,152
Butler County PA Hospital Authority Series A (Health Revenue, Royal Bank of Scotland LOC) ø		0.13			10-1-2042		3,000,000		3,000,000
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		5.65			12-15-2017		250,000		259,743
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		6.25			12-15-2027		2,370,000		2,516,134
Chester County PA IDA Collegium Charter School Project Series A (Education Revenue)		5.00			10-15-2022		1,695,000		1,809,345
Chester County PA IDA Renaissance Academy Charter School (Education Revenue)		3.75			10-1-2024		1,000,000		1,017,150
Chester County PA IDA University Student Housing LLC Project Series A (Housing Revenue)		5.00			8-1-2030		555,000		593,600
Commonwealth of Pennsylvania Financing Authority Series B (Water & Sewer Revenue)		5.00			6-1-2026		1,000,000		1,146,870
Cumberland County PA Municipal Authority Diakon Lutheran Ministries Project (Health Revenue)		5.00			1-1-2028		2,090,000		2,316,640
Cumberland County PA Municipal Authority Diakon Lutheran Ministries Project (Health Revenue)		5.00			1-1-2036		5,000,000		5,208,250
Cumberland County PA Municipal Authority Dickinson College Series HH1 (Education Revenue)		5.00			11-1-2039		1,200,000		1,290,300
Dauphin County PA (GO Revenue, Syncora Guarantee Incorporated Insured)		5.00			11-15-2022		1,000,000		1,017,270
Delaware County PA IDA Chester Community Charter School Series A (Education Revenue)		5.00			8-15-2020		1,795,000		1,837,254
Delaware County PA Vocational & Technical School Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.25			11-1-2033		1,000,000		1,147,720
Delaware Valley PA Regional Finance Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		4,390,000		5,283,936
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Bayerische Landesbank LOC) ø		0.17			6-1-2042		3,600,000		3,600,000
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Ambac Insured)		5.60			7-1-2017		2,000,000		2,134,460

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

8 Wells Fargo Pennsylvania Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Easton Area PA Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00	%		12-1-2026	$	180,000	$	211,252
Easton Area PA Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		200,000		233,736
Easton Area PA Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2028		150,000		174,372
Easton Area PA Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2029		200,000		231,094
General Authority of South Central Pennsylvania Association of Independent Colleges & Universities (Education Revenue)		6.00			11-1-2031		2,500,000		2,943,850
Lehigh County PA General Purpose Authority Lehigh Valley Hospital Incorporated Series A (Health Revenue, National Insured)		7.00			7-1-2016		435,000		446,828
Lehigh County PA General Purpose Authority Water & Sewer CAB Allentown Project (Water & Sewer Revenue) ¤		0.00			12-1-2030		2,000,000		1,162,620
Lycoming County PA Authority Pennsylvania College of Technology (Education Revenue)		5.50			7-1-2026		3,000,000		3,463,170
McKeesport PA Municipal Authority (Water & Sewer Revenue, AGM Insured)		5.50			12-15-2027		2,405,000		2,799,324
Monroe County PA Hospital Authority Pocono Medical Center Series A (Health Revenue)		5.00			1-1-2027		840,000		922,908
Monroe County PA Hospital Authority Pocono Medical Center Series A (Health Revenue)		5.00			1-1-2032		880,000		953,850
Montgomery County PA Higher Education & Health Authority Abington Memorial Hospital Project (Health Revenue)		5.00			6-1-2031		2,000,000		2,221,980
Montgomery County PA Higher Education & Health Authority Refunding Bond Arcadia University (Education Revenue)		5.00			4-1-2030		1,500,000		1,670,775
Montgomery County PA Higher Education & Health Authority Refunding Bond Arcadia University Second Series (Education Revenue, AGC Insured)		5.00			4-1-2027		3,760,000		3,804,067
Montgomery County PA IDA ACTS Retirement Community Series B (Health Revenue)		5.00			11-15-2022		6,000,000		6,145,380
Montgomery County PA IDA Jefferson Health System Series A (Health Revenue)		5.00			10-1-2027		1,000,000		1,131,570
Montgomery County PA IDA New Regional Medical Center Project (Health Revenue, FHA Insured)		5.00			8-1-2020		980,000		1,142,798
Moon Area PA School District Series A (GO Revenue)		5.00			11-15-2029		1,445,000		1,688,844
Northampton County PA St. Luke’s Hospital of Bethlehem Series A (Health Revenue)		5.00			8-15-2033		1,500,000		1,638,840
Pennsylvania EDFA Republic Services Incorporated Project Series A (Resource Recovery Revenue) ø		0.65			4-1-2019		2,000,000		2,000,000
Pennsylvania Financing Authority Pennsylvania Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2022		1,200,000		987,792
Pennsylvania Financing Authority Pennsylvania Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2023		3,790,000		2,995,616
Pennsylvania HEFAR Association of Independent Colleges & University Series FF2 (Education Revenue, AGC Insured)		5.00			12-15-2024		3,070,000		3,117,554
Pennsylvania HEFAR La Salle University Series A (Education Revenue)		5.25			5-1-2027		5,250,000		5,466,300
Pennsylvania HEFAR Shippensburg University Project (Education Revenue)		5.00			10-1-2020		1,460,000		1,581,574
Pennsylvania HEFAR Shippensburg University Project (Education Revenue)		6.00			10-1-2031		3,000,000		3,323,130
Pennsylvania HEFAR Temple University First Series (Education Revenue)		5.00			4-1-2032		1,000,000		1,137,580
Pennsylvania Housing Finance Agency SFMR Series 106-B (Housing Revenue)		4.50			10-1-2024		5,010,000		5,329,989
Pennsylvania Housing Finance Agency SFMR Series 108-B (Housing Revenue)		4.50			10-1-2024		1,825,000		1,945,195
Pennsylvania Housing Finance Agency SFMR Series 112 (Housing Revenue)		5.00			4-1-2028		2,070,000		2,194,718
Pennsylvania Public School Building Authority Series 11396 (Miscellaneous Revenue, AGM Insured, Citibank NA LIQ) 144Aø		0.21			12-1-2023		2,500,000		2,500,000
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		1,010,000		1,187,275

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania Public School Building Authority Series DCL-016 (Miscellaneous Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.48	%		6-1-2023	$	2,995,000	$	2,995,000
Pennsylvania Turnpike Commission Motor License Series B1 (Transportation Revenue)		5.00			12-1-2040		1,500,000		1,654,650
Pennsylvania Turnpike Commission Series A (Miscellaneous Revenue, AGM Insured)		5.25			7-15-2021		2,000,000		2,372,120
Pennsylvania Turnpike Commission Series C (Transportation Revenue, AGC Insured)		6.25			6-1-2038		3,500,000		3,884,125
Philadelphia PA Airport Refunding Bond AMT Series A (Airport Revenue)		5.00			6-15-2030		1,500,000		1,729,485
Philadelphia PA IDA 1st Philadelphia Preparatory Charter School Project Series A (Education Revenue)		7.00			6-15-2033		1,000,000		1,168,820
Philadelphia PA IDA Architecture & Design Charter School Project (Education Revenue)		5.25			3-15-2023		835,000		883,121
Philadelphia PA IDA Charter School Project Series A (Education Revenue)		5.30			9-15-2027		5,150,000		5,248,932
Philadelphia PA IDA Global Leadership Academy Project (Education Revenue)		5.13			11-15-2020		1,220,000		1,280,427
Philadelphia PA IDA Global Leadership Academy Project (Education Revenue)		5.75			11-15-2030		1,000,000		1,046,520
Philadelphia PA IDA Master Charter School (Education Revenue)		5.00			8-1-2020		705,000		753,723
Philadelphia PA IDA Tacony Academy Charter School Project (Education Revenue)		6.88			6-15-2033		1,000,000		1,127,230
Philadelphia PA IDA Temple University 1st Series 2016 (Education Revenue) %%		5.00			4-1-2029		1,000,000		1,179,710
Philadelphia PA IDA West Philadelphia Achievement Charter Elementary School Project (Education Revenue)		7.50			5-1-2031		1,285,000		1,390,563
Philadelphia PA School District Refunding Bond Series A (GO Revenue, AGM/FGIC Insured)		5.00			6-1-2024		1,425,000		1,658,558
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		3,000,000		3,274,740
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2021		1,395,000		1,597,973
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2033		1,500,000		1,738,305
Pittsburgh & Allegheny Counties PA Sports & Exhibition Authority (Tax Revenue, AGM Insured)		5.00			2-1-2031		3,000,000		3,388,020
Pittsburgh PA (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2030		500,000		588,600
Reading PA School District Notes Series A (GO Revenue, AGM Insured)		5.00			2-1-2033		1,500,000		1,698,690
Southeastern Pennsylvania Transportation Authority (Miscellaneous Revenue)		5.00			6-1-2028		4,000,000		4,547,720
State Public School Building Authority Pennsylvania Chester Upland School Project Series C (Miscellaneous Revenue, AGM Insured)		5.00			9-15-2026		875,000		993,571
State Public School Building Authority Pennsylvania Northampton County Area Community College Project (Education Revenue)		5.50			3-1-2031		5,000,000		5,805,550
State Public School Building Authority Pennsylvania Northampton County Area Community College Project Series A (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			6-15-2027		1,610,000		1,840,697
University Area Joint Authority Pennsylvania Refunding Bond (Water & Sewer Revenue) ±		0.41			11-1-2028		1,500,000		1,496,820
Wilkes-Barre PA Finance Authority University of Scranton (Education Revenue)		5.00			11-1-2020		1,005,000		1,153,273
Wilkes-Barre PA Finance Authority Wilkes University Project (Education Revenue)		5.00			3-1-2027		2,600,000		2,681,250
									175,758,552
Virgin Islands: 2.23%
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		4.00			9-1-2017		600,000		625,560
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		5.00			9-1-2018		750,000		815,670
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		5.00			9-1-2019		500,000		556,005
Virgin Islands PFA Matching Fund Senior Lien (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2029		2,000,000		2,259,880
									4,257,115
Total Municipal Obligations (Cost $172,812,186)									184,346,917

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

10 Wells Fargo Pennsylvania Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Yield			Shares		Value
Short-Term Investments: 4.01%
Investment Companies: 4.01%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)##		0.01	%		7,657,053	$	7,657,053
Total Short-Term Investments (Cost $7,657,053)							7,657,053

Total investments in securities (Cost $180,469,239) *	100.52	%		192,003,970
Other assets and liabilities, net	(0.52	)		(999,696	)
Total net assets	100.00	%	$	191,004,274

± 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.

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.

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

%% The security is issued on a when-issued basis.

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $180,642,289 and unrealized gains (losses) consists of:

Gross unrealized gains	$	11,566,694
Gross unrealized losses		(205,013	)
Net unrealized gains	$	11,361,681

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

Statement of assets and liabilities—December 31, 2015 (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $172,812,186)	$	184,346,917
In affiliated securities, at value (cost $7,657,053)		7,657,053
Total investments, at value (cost $180,469,239)		192,003,970
Receivable for Fund shares sold		590,377
Receivable for interest		2,003,033
Prepaid expenses and other assets		41,509
Total assets		194,638,889
Liabilities
Dividends payable		327,391
Payable for investments purchased		3,081,340
Payable for Fund shares redeemed		82,610
Management fee payable		50,133
Distribution fees payable		10,234
Administration fees payable		18,628
Accrued expenses and other liabilities		64,279
Total liabilities		3,634,615
Total net assets	$	191,004,274
NET ASSETS CONSIST OF
Paid-in capital	$	189,807,010
Overdistributed net investment income		(245,938	)
Accumulated net realized losses on investments		(10,091,529	)
Net unrealized gains on investments		11,534,731
Total net assets	$	191,004,274
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	50,989,214
Shares outstanding – Class A1		4,288,826
Net asset value per share – Class A		$11.89
Maximum offering price per share – Class A2		$12.45
Net assets – Class B	$	579,959
Shares outstanding – Class B1		48,963
Net asset value per share – Class B		$11.84
Net assets – Class C	$	14,194,163
Shares outstanding – Class C1		1,196,111
Net asset value per share – Class C		$11.87
Net assets – Institutional Class	$	125,240,938
Shares outstanding – Institutional Class1		10,534,457
Net asset value per share – Institutional Class		$11.89

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.

12 Wells Fargo Pennsylvania Tax-Free Fund Statement of operations—six months ended December 31, 2015 (unaudited)

Investment income
Interest	$	3,696,016
Income from affiliated securities		132
Total investment income		3,696,148
Expenses
Management fee		358,286
Administration fees
Class A		39,680
Class B		501
Class C		10,966
Institutional Class		46,084
Shareholder servicing fees
Class A		62,000
Class B		783
Class C		17,134
Distribution fees
Class B		2,349
Class C		51,401
Custody and accounting fees		7,120
Professional fees		23,639
Registration fees		32,534
Shareholder report expenses		7,552
Trustees’ fees and expenses		12,254
Other fees and expenses		2,786
Total expenses		675,069
Less: Fee waivers and/or expense reimbursements		(102,503	)
Net expenses		572,566
Net investment income		3,123,582
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		282,223
Net change in unrealized gains (losses) on investments		1,786,136
Net realized and unrealized gains (losses) on investments		2,068,359
Net increase in net assets resulting from operations	$	5,191,941

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

Statement of changes in net assets Wells Fargo Pennsylvania Tax-Free Fund 13

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	3,123,582					$	6,375,933
Net realized gains on investments					282,223						966,812
Net change in unrealized gains (losses) on investments					1,786,136						627,422
Net increase in net assets resulting from operations					5,191,941						7,970,167
Distributions to shareholders from
Net investment income
Class A					(839,640	)					(1,606,030	)
Class B					(8,261	)					(20,931	)
Class C					(180,533	)					(339,975	)
Institutional Class					(2,095,148	)					(4,344,447	)
Total distributions to shareholders					(3,123,582	)					(6,311,383	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		382,983			4,528,271			605,396			7,163,115
Class B		504			5,931			94			1,089
Class C		141,655			1,671,070			299,119			3,526,413
Institutional Class		2,084,625			24,664,547			1,203,338			14,230,622
					30,869,819						24,921,239
Reinvestment of distributions
Class A		63,897			756,098			120,989			1,431,526
Class B		677			7,981			1,704			20,089
Class C		13,754			162,453			25,787			304,625
Institutional Class		42,128			498,422			81,893			968,892
					1,424,954						2,725,132
Payment for shares redeemed
Class A		(185,633	)		(2,192,724	)		(519,400	)		(6,135,536	)
Class B		(6,992	)		(82,327	)		(21,585	)		(254,079	)
Class C		(73,057	)		(860,933	)		(173,825	)		(2,051,259	)
Institutional Class		(679,343	)		(8,017,635	)		(2,438,641	)		(28,902,651	)
					(11,153,619	)					(37,343,525	)
Net increase (decrease) in net assets resulting from capital share transactions					21,141,154						(9,697,154	)
Total increase (decrease) in net assets					23,209,513						(8,038,370	)
Net assets
Beginning of period					167,794,761						175,833,131
End of period				$	191,004,274					$	167,794,761
Overdistributed net investment income				$	(245,938	)				$	(245,938	)

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

14 Wells Fargo Pennsylvania Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended March 31, 20112
CLASS A				2015			2014			2013			2012			20111
Net asset value, beginning of period		$11.75			$11.65			$11.36			$11.65			$10.93			$10.63			$10.90
Net investment income		0.20			0.42			0.43			0.42			0.44			0.11			0.44
Net realized and unrealized gains (losses) on investments		0.14			0.09			0.29			(0.29	)		0.72			0.30			(0.28	)
Total from investment operations		0.34			0.51			0.72			0.13			1.16			0.41			0.16
Distributions to shareholders from
Net investment income		(0.20	)		(0.41	)		(0.43	)		(0.42	)		(0.44	)		(0.11	)		(0.43	)
Net asset value, end of period		$11.89			$11.75			$11.65			$11.36			$11.65			$10.93			$10.63
Total return3		2.93	%		4.44	%		6.45	%		1.02	%		10.81	%		3.84	%		1.56	%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.90	%		0.91	%4		0.88	%4		0.88	%4		0.87	%4		0.84	%4
Net expenses		0.74	%		0.74	%		0.74	%4		0.75	%4		0.74	%4		0.74	%4		0.75	%4
Net investment income		3.39	%		3.54	%		3.75	%		3.55	%		3.90	%		3.98	%		3.99	%
Supplemental data
Portfolio turnover rate		3	%		15	%		15	%		14	%		21	%		10	%		46	%
Net assets, end of period (000s omitted)		$50,989			$47,323			$44,500			$43,167			$45,178			$43,188			$41,832

¹  For the three months ended June 30, 2011. The Fund changed its fiscal year end from March 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Pennsylvania Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class A of Evergreen Pennsylvania Municipal Bond Fund.

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

⁴  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 20111	0.01	%
Year ended March 31, 20112	0.01	%

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

Financial highlights Wells Fargo Pennsylvania Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended March 31, 20112
CLASS B				2015			2014			2013			2012			20111
Net asset value, beginning of period		$11.71			$11.60			$11.32			$11.61			$10.89			$10.59			$10.86
Net investment income		0.16	3		0.33	3		0.34	3		0.33	3		0.36	3		0.09	3		0.35	3
Net realized and unrealized gains (losses) on investments		0.13			0.10			0.28			(0.29	)		0.72			0.30			(0.27	)
Total from investment operations		0.29			0.43			0.62			0.04			1.08			0.39			0.08
Distributions to shareholders from
Net investment income		(0.16	)		(0.32	)		(0.34	)		(0.33	)		(0.36	)		(0.09	)		(0.35	)
Net asset value, end of period		$11.84			$11.71			$11.60			$11.32			$11.61			$10.89			$10.59
Total return4		2.46	%		3.75	%		5.58	%		0.26	%		10.01	%		3.66	%		0.80	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.65	%		1.66	%5		1.63	%5		1.62	%5		1.62	%5		1.60	%5
Net expenses		1.49	%		1.49	%		1.49	%5		1.50	%5		1.49	%5		1.49	%5		1.50	%5
Net investment income		2.64	%		2.78	%		3.00	%		2.80	%		3.15	%		3.22	%		3.23	%
Supplemental data
Portfolio turnover rate		3	%		15	%		15	%		14	%		21	%		10	%		46	%
Net assets, end of period (000s omitted)		$580			$641			$865			$1,377			$2,264			$3,956			$4,932

¹  For the three months ended June 30, 2011. The Fund changed its fiscal year end from March 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Pennsylvania Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class B of Evergreen Pennsylvania Municipal Bond Fund.

³  Calculated based upon average shares outstanding

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

⁵  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 20111	0.01	%
Year ended March 31, 20112	0.01	%

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

16 Wells Fargo Pennsylvania Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended March 31, 20112
CLASS C				2015			2014			2013			2012			20111
Net asset value, beginning of period		$11.73			$11.63			$11.34			$11.63			$10.91			$10.61			$10.88
Net investment income		0.16			0.33			0.34			0.33			0.36			0.09			0.35
Net realized and unrealized gains (losses) on investments		0.14			0.09			0.29			(0.29	)		0.72			0.30			(0.27	)
Total from investment operations		0.30			0.42			0.63			0.04			1.08			0.39			0.08
Distributions to shareholders from
Net investment income		(0.16	)		(0.32	)		(0.34	)		(0.33	)		(0.36	)		(0.09	)		(0.35	)
Net asset value, end of period		$11.87			$11.73			$11.63			$11.34			$11.63			$10.91			$10.61
Total return3		2.54	%		3.66	%		5.67	%		0.27	%		9.99	%		3.65	%		0.80	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.65	%		1.66	%4		1.63	%4		1.63	%4		1.62	%4		1.59	%4
Net expenses		1.49	%		1.49	%		1.49	%4		1.50	%4		1.49	%4		1.49	%4		1.50	%4
Net investment income		2.63	%		2.78	%		3.00	%		2.79	%		3.15	%		3.23	%		3.23	%
Supplemental data
Portfolio turnover rate		3	%		15	%		15	%		14	%		21	%		10	%		46	%
Net assets, end of period (000s omitted)		$14,194			$13,062			$11,192			$9,798			$9,815			$8,331			$8,118

¹  For the three months ended June 30, 2011. The Fund changed its fiscal year end from March 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Pennsylvania Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class C of Evergreen Pennsylvania Municipal Bond Fund.

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

⁴  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 20111	0.01	%
Year ended March 31, 20112	0.01	%

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

Financial highlights Wells Fargo Pennsylvania Tax-Free Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended March 31, 20112
INSTITUTIONAL CLASS				2015			2014			2013			2012			20111
Net asset value, beginning of period		$11.75			$11.65			$11.36			$11.65			$10.93			$10.63			$10.90
Net investment income		0.22			0.44			0.45			0.45	3		0.47			0.11			0.46
Net realized and unrealized gains (losses) on investments		0.14			0.10			0.29			(0.29	)		0.72			0.30			(0.27	)
Total from investment operations		0.36			0.54			0.74			0.16			1.19			0.41			0.19
Distributions to shareholders from
Net investment income		(0.22	)		(0.44	)		(0.45	)		(0.45	)		(0.47	)		(0.11	)		(0.46	)
Net asset value, end of period		$11.89			$11.75			$11.65			$11.36			$11.65			$10.93			$10.63
Total return4		3.06	%		4.70	%		6.72	%		1.28	%		11.08	%		3.91	%		1.82	%
Ratios to average net assets (annualized)
Gross expenses		0.58	%		0.57	%		0.58	%5		0.55	%5		0.55	%5		0.55	%5		0.54	%5
Net expenses		0.49	%		0.49	%		0.49	%5		0.50	%5		0.49	%5		0.49	%5		0.50	%5
Net investment income		3.64	%		3.78	%		4.00	%		3.79	%		4.15	%		4.22	%		4.23	%
Supplemental data
Portfolio turnover rate		3	%		15	%		15	%		14	%		21	%		10	%		46	%
Net assets, end of period (000s omitted)		$125,241			$106,769			$119,276			$148,684			$171,861			$212,341			$221,498

¹  For the three months ended June 30, 2011. The Fund changed its fiscal year end from March 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Pennsylvania Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class I of Evergreen Pennsylvania Municipal Bond Fund.

³  Calculated based upon average shares outstanding

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

⁵  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%
Year ended June 30, 20111	0.01	%
Year ended March 31, 20112	0.01	%

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

18 Wells Fargo Pennsylvania Tax-Free Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 Pennsylvania Tax-Free 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.

Notes to financial statements (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 19

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 and tax-exempt 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 June 30, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $10,200,703 with $4,324,935 expiring in 2016 and $5,875,768 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.

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

	Quoted prices (Level 1)		��	Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0		$	184,346,917	$	0	$	184,346,917
Short-term investments
Investment companies		7,657,053			0		0		7,657,053
Total assets	$	7,657,053		$	184,346,917	$	0	$	192,003,970

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

20 Wells Fargo Pennsylvania Tax-Free Fund Notes to financial statements (unaudited)

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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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	%
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 October 31, 2016 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, and 0.49% 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 six months ended December 31, 2015, Funds Distributor received $8,373 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, and Class C of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $12,101,564 and $4,824,931, respectively.

Notes to financial statements (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 21

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $123 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

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.

22 Wells Fargo Pennsylvania Tax-Free Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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 Pennsylvania Tax-Free Fund 23

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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

24 Wells Fargo Pennsylvania Tax-Free Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

List of abbreviations Wells Fargo Pennsylvania Tax-Free Fund 25

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  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.

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398839 02-16 SA255/SAR255 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Short-Term Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	34
Statement of operations	35
Statement of changes in net assets	36
Financial highlights	37
Notes to financial statements	41
Other information	45
List of abbreviations	48

The views expressed and any forward-looking statements are as of December 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 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 Short-Term Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index, ¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Short-Term Municipal Bond Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

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

Investment objective

The Fund seeks current income exempt from federal income tax consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Lyle J. Fitterer, CFA^®, CPA

Average annual total returns (%) as of December 31, 2015¹

		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 (WSMAX)	7-18-2008		(1.47	)		1.26		2.52		0.54			1.67		2.73		0.75		0.63
Class C (WSSCX)	1-31-2003		(1.21	)		0.91		1.93		(0.21	)		0.91		1.93		1.50		1.38
Administrator Class (WSTMX)	7-30-2010		–			–		–		0.46			1.65		2.68		0.69		0.60
Institutional Class (WSBIX)	3-31-2008		–			–		–		0.75			1.87		2.90		0.42		0.40
Barclays 1-3 Year Composite Municipal Bond Index4	–		–			–		–		0.90			1.34		2.56

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, wellsfargofunds.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 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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to high-yield securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Credit quality as of December 31, 2015⁵

Effective maturity distribution as of December 31, 2015⁶

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares (except during those periods in which expenses of Class A shares would have been higher than those of the former Investor Class shares, no such adjustment is reflected). If these expenses had not been included, returns would be higher. 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 Institutional Class shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor 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 October 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 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 Composite Municipal Bond Index is a blended index weighted 50% in the Barclays 1-Year Municipal Bond Index and 50% in the Barclays 3-Year Municipal Bond Index. You cannot invest directly in an index.

⁵  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  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 Short-Term Municipal 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,006.96	$	3.08		0.61	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.07	$	3.10		0.61	%
Class C
Actual	$	1,000.00	$	1,003.18	$	6.85		1.36	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.30	$	6.90		1.36	%
Administrator Class
Actual	$	1,000.00	$	1,006.19	$	2.98		0.59	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.17	$	3.00		0.59	%
Institutional Class
Actual	$	1,000.00	$	1,008.01	$	2.02		0.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.13	$	2.03		0.40	%

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—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 97.55%
Alabama: 1.10%
Alabama 21st Century Authority Tobacco Settlement Revenue Series A (Tobacco Revenue)		5.00	%		6-1-2017	$	3,000,000	$	3,168,060
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.85			11-15-2038		14,615,000		14,611,931
Jefferson County AL Sewer Revenue Warrants Series D (Water & Sewer Revenue)		5.00			10-1-2018		1,890,000		2,048,590
Jefferson County AL Warrants Series C (GO Revenue)		4.90			4-1-2021		31,160,000		33,229,959
Mobile County AL Industrial Development Board PCR Alabama Power Company Barry Plant (Industrial Development Revenue) ±		1.63			7-15-2034		12,500,000		12,560,125
									65,618,665
Alaska: 0.16%
Alaska Housing Finance Corporation Series A2 (Housing Revenue)		4.55			12-1-2020		1,120,000		1,148,370
Alaska IDA Snettisham Hydroelectric Project (Utilities Revenue)		5.00			1-1-2021		1,400,000		1,557,976
Alaska International Airport Refunding Bond Series D (Airport Revenue, National Insured)		5.00			10-1-2018		2,235,000		2,311,996
Valdez AK Marine Terminal Revenue BP Pipelines Project Series B (Industrial Development Revenue)		5.00			1-1-2016		4,550,000		4,550,000
									9,568,342
Arizona: 1.85%
Arizona Board of Regents Certificate of Participation Series A (Education Revenue)		5.00			6-1-2021		3,000,000		3,519,420
Arizona Navajo Tribal Utility Authority (Miscellaneous Revenue, Municipal Government Guaranty Insured)		4.00			1-1-2021		14,845,000		15,184,357
Gilbert AZ Water Reserve Municipal Property Corporation Sub Lien (Water & Sewer Revenue)		4.75			10-1-2032		1,105,000		1,115,089
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		3.00			7-1-2017		3,500,000		3,612,980
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2017		32,500,000		34,515,975
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2018		6,100,000		6,678,707
Maricopa County AZ PCR Series A (Utilities Revenue) ±		2.40			6-1-2043		9,300,000		9,437,454
Maricopa County AZ PCR Series B (Utilities Revenue) ±		5.20			6-1-2043		2,500,000		2,770,050
Navajo Nation AZ Refunding Bond Series A (Miscellaneous Revenue) 144A		2.90			12-1-2020		14,205,000		14,302,162
Phoenix AZ IDA Various Republic Services Incorporated Projects (Industrial Development Revenue) ±		0.60			12-1-2035		9,000,000		9,000,000
Pima County AZ IDA Constellation Schools Project Series A (Miscellaneous Revenue)		6.38			1-1-2019		1,655,000		1,688,100
Scottsdale AZ IDA Scottsdale Healthcare Series D (Health Revenue)		5.00			9-1-2017		2,000,000		2,108,380
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2016		1,280,000		1,291,571
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2017		1,365,000		1,389,488
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2018		1,245,000		1,270,610
Yavapai County AZ IDA Waste Management Incorporated Project Series A2 (Resource Recovery Revenue) ±		1.60			3-1-2028		2,500,000		2,498,950
									110,383,293
California: 6.03%
Alameda County CA Corridor Transportation Authority CAB Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2016		8,845,000		8,793,522

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

8 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series B (Transportation Revenue) ±		1.50	%		4-1-2047	$	11,900,000	$	11,975,922
California (GO Revenue) ±		4.00			12-1-2027		55,200,000		57,674,616
California Golden State Tobacco Securitization Series 2954 (Tobacco Revenue, Morgan Stanley Bank LIQ) 144Aø		0.56			6-1-2047		31,160,000		31,160,000
California HFA Home Mortgage Series G (Housing Revenue)		4.95			8-1-2023		9,000,000		9,226,620
California Infrastructure & Economic Development Bank Museum Art Project Series A (Miscellaneous Revenue) ±		2.05			12-1-2037		12,000,000		12,322,320
California Infrastructure & Economic Development Bank Series A (Education Revenue) ±		1.01			8-1-2037		25,460,000		25,450,071
California PCFA Solid Waste Disposal Waste Management Project Series A (Resource Recovery Revenue) ±144A		0.60			8-1-2023		5,000,000		5,000,000
California PCFA Solid Waste Disposal Waste Management Project Series A (Resource Recovery Revenue) ±		1.65			7-1-2031		6,000,000		6,000,720
California Refunding Bond Series B (GO Revenue) ±		0.76			5-1-2017		7,000,000		7,026,180
California Refunding Bond Series B (GO Revenue) ±		0.91			5-1-2018		6,000,000		6,046,980
California Series D (GO Revenue) ±		0.87			12-1-2028		27,000,000		27,112,590
California Series E (GO Revenue) ±		1.00			12-1-2029		18,000,000		18,047,520
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.44			7-1-2041		15,050,000		15,050,000
California Statewide CDA Health Facilities Catholic Series E (Health Revenue, AGM Insured) ±(m)		0.50			7-1-2040		5,625,000		5,625,000
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.40			7-1-2040		4,300,000		4,300,000
Chula Vista CA Elementary School Building Projects Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2017		1,765,000		1,883,802
Chula Vista CA Elementary School Building Projects Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2018		1,985,000		2,185,068
Chula Vista CA Industrial Development Revenue San Diego Gas & Electric Company Series A (Utilities Revenue)		1.65			7-1-2018		5,570,000		5,573,899
Compton CA Unified School District CAB Election of 2002 Series D (GO Revenue, Ambac Insured) ¤		0.00			6-1-2017		3,070,000		3,012,806
El Monte CA Union High School District (GO Revenue) %%		5.00			6-1-2018		5,840,000		6,301,769
Foothill-Eastern CA Transportation Corridor Agency Series B1 (Transportation Revenue) ±		5.00			1-15-2053		24,435,000		25,685,583
Inland Valley CA Development Agency Series C (Tax Revenue) ±		4.50			3-1-2041		17,000,000		17,120,020
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2018		1,000,000		1,085,240
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2019		1,000,000		1,111,890
Oakland CA Unified School District Alameda County Refunding Bond (GO Revenue, National Insured)		5.00			8-1-2016		3,030,000		3,108,810
Palomar CA Pomerado Health CAB Election of 2004 Series A (GO Revenue, National Insured) ¤		0.00			8-1-2019		2,215,000		2,082,632
Palomar CA Pomerado Health Care District Certificate of Participation Series C (Health Revenue, AGM Insured) ±(m)		0.85			11-1-2036		18,200,000		18,200,000
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.00			12-1-2016		1,730,000		1,780,879
San Ysidro CA School District (GO Revenue, AGM Insured) ¤		0.00			8-1-2047		2,010,000		261,159
South San Francisco CA Unified School District BAN Series D (GO Revenue) ¤		0.00			5-15-2017		20,000,000		19,756,800
									359,962,418

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Colorado: 0.61%
Aurora CO E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00	%		9-1-2018	$	2,000,000	$	1,904,320
Aurora CO E-470 Public Highway Authority Senior Series CD-2 (Transportation Revenue, National Insured) ±		1.76			9-1-2039		15,325,000		15,371,588
Colorado HCFR Catholic Health Initiatives Series C2 (Health Revenue) ±		1.42			10-1-2039		8,500,000		8,498,470
Colorado HCFR Catholic Health Initiatives Series C4 (Health Revenue) ±		1.42			10-1-2039		3,495,000		3,493,637
Colorado Housing & Finance Authority Traditions Englewood Project (Housing Revenue)		0.90			12-1-2017		7,000,000		7,000,840
									36,268,855
Connecticut: 3.65%
Connecticut Economic Recovery Notes Series A (Miscellaneous Revenue) ±		0.26			1-1-2017		10,210,000		10,190,193
Connecticut Economic Recovery Notes Series A (Miscellaneous Revenue) ±		0.36			1-1-2018		9,810,000		9,732,109
Connecticut Health & HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		12,515,000		12,611,491
Connecticut HEFA Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2016		2,380,000		2,431,241
Connecticut HEFA Series 2010A-4 (Education Revenue) ±		1.20			7-1-2049		33,080,000		33,022,772
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		34,000,000		33,981,300
Connecticut Securities Industry and Financial Market Association Index Refunding Notes (Miscellaneous Revenue) ±		1.11			5-15-2019		3,500,000		3,525,550
Connecticut Series A (Miscellaneous Revenue) ±		0.56			3-1-2019		3,200,000		3,172,064
Connecticut Series A (Miscellaneous Revenue) ±		0.66			3-1-2020		8,285,000		8,207,287
Connecticut Series A (Miscellaneous Revenue) ±		0.69			4-15-2017		4,700,000		4,712,455
Connecticut Series A (Miscellaneous Revenue) ±		0.78			5-15-2017		17,000,000		17,065,280
Connecticut Series A (Miscellaneous Revenue) ±		0.93			5-15-2018		17,740,000		17,828,168
Connecticut Series A (Miscellaneous Revenue) ±		1.11			4-15-2019		5,600,000		5,642,728
Connecticut Series A (Miscellaneous Revenue) ±		1.36			3-1-2019		21,500,000		21,500,000
Connecticut Series C (Miscellaneous Revenue) ±		0.66			5-15-2016		5,000,000		5,011,000
Connecticut Series D (GO Revenue) ±		0.53			9-15-2017		2,100,000		2,090,718
Connecticut State HEFA Hartford Healthcare Series G (Health Revenue) ±		1.12			7-1-2049		10,000,000		10,026,000
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2017		1,500,000		1,582,005
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2018		1,000,000		1,083,340
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2018		650,000		709,306
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2019		700,000		781,711
Hartford CT Series B (GO Revenue, AGM Insured)		5.00			10-1-2018		1,000,000		1,108,210
Mohegan Tribe of Indians of Connecticut (Miscellaneous Revenue)		2.65			12-15-2017		8,230,000		8,374,766
New Haven CT Series A (GO Revenue, AGM Insured)		3.00			11-1-2019		3,405,000		3,568,474
									217,958,168
Delaware: 0.04%
Delaware HCFR Nanticoke Memorial Hospital Project (Health Revenue)		4.00			7-1-2016		1,045,000		1,056,631
Delaware HCFR Nanticoke Memorial Hospital Project (Health Revenue)		5.00			7-1-2017		1,225,000		1,274,233
									2,330,864
District of Columbia: 0.22%
District of Columbia Income Tax Secured Refunding Bond Series E (Tax Revenue) ±		0.76			12-1-2017		13,000,000		12,908,350
Florida: 3.93%
Brevard County FL HCFR Refunding Bond Health First Incorporated Series A (Health Revenue)		5.00			4-1-2018		1,140,000		1,225,169

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

10 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Brevard County FL Space Coast Infrastructure Agency I-95 Project (Industrial Development Revenue)		4.00	%		6-15-2018	$	5,695,000	$	6,030,492
Escambia County FL Gulf Power Company Project (Resource Recovery Revenue) ±		1.40			4-1-2039		9,500,000		9,516,055
Florida Mid-Bay Bridge Authority Series C (Transportation Revenue)		5.00			10-1-2019		675,000		743,796
Florida Mid-Bay Bridge Authority Series C (Transportation Revenue)		5.00			10-1-2020		785,000		878,415
Jacksonville FL Sales Refunding Bond Better Jacksonville (Tax Revenue)		5.00			10-1-2017		2,000,000		2,142,740
Lee County FL IDA Alliance Community Project (Health Revenue)		5.00			11-15-2016		1,000,000		1,031,170
Miami Beach FL Health Facilities Refunding Bond Mount Sinai Medical Center (Health Revenue)		3.00			11-15-2016		1,995,000		2,022,731
Miami Beach FL Health Facilities Refunding Bond Mount Sinai Medical Center (Health Revenue)		4.00			11-15-2017		1,750,000		1,822,765
Miami FL Refunding Bond Homeland Defense (GO Revenue, National Insured)		5.00			1-1-2017		5,000,000		5,189,300
Miami-Dade County FL Educational Facilities Authority University of Miami Series A (Education Revenue)		5.25			4-1-2016		1,600,000		1,619,744
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) ±144A		0.60			10-13-2023		6,670,000		6,670,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) ±144A		0.65			3-8-2030		4,995,000		4,995,000
Miami-Dade County FL Miami International Airport Series C (Airport Revenue, AGM Insured)		5.25			10-1-2021		16,000,000		17,081,600
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		0.40			9-25-2024		37,705,000		37,705,000
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2037		26,735,000		26,735,000
Miami-Dade County FL School Board Certificate of Participation Series A (Miscellaneous Revenue) ±		5.00			8-1-2021		18,375,000		18,619,571
Miami-Dade County FL School Board Certificate of Participation Series B (Miscellaneous Revenue, AGC Insured)		5.00			5-1-2016		1,400,000		1,421,812
Miami-Dade County FL School Board Certificate of Participation Series B (Miscellaneous Revenue) ±		5.00			5-1-2032		17,500,000		17,754,625
Miami-Dade County FL School Board Foundation Incorporated (Miscellaneous Revenue, Dexia Credit Local LOC, National Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2031		16,530,000		16,530,000
Miami-Dade County FL School Board Master Equipment Lease 2 (Miscellaneous Revenue)		3.59			3-3-2016		1,294,769		1,299,378
Orange County FL School Board Certificate of Participation Series A (Miscellaneous Revenue)		5.00			8-1-2016		600,000		615,894
Palm Beach County FL HCFR ACTS Retirement Life Series B (Health Revenue)		5.00			11-15-2020		6,300,000		6,519,177
Palm Beach County FL HCFR Jupiter Medical Center Project Series A (Health Revenue)		4.00			11-1-2018		1,235,000		1,297,318
Palm Beach County FL PFOTER Series 4615 (Miscellaneous Revenue, Dexia Credit Local LIQ) ø		0.28			8-1-2029		10,000,000		10,000,000
Sarasota County FL Educational Facilities School Arts & Sciences Project (Education Revenue)		5.20			7-1-2017		330,000		337,102
Space Coast Infrastructure Agency I-95 Brevard County FL Project (Industrial Development Revenue)		4.00			6-15-2017		14,865,000		15,481,749
St. Johns County FL School Board Refunding Bond Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2020		2,010,000		2,310,776
St. Johns County FL School Board Refunding Bond Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2021		1,670,000		1,960,630

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Sunshine Florida Governmental Funding Commission Miami-Dade County Project Series A (Miscellaneous Revenue)		5.00	%		9-1-2016	$	3,675,000	$	3,784,772
Volusia County FL School Board (Tax Revenue, National Insured)		5.00			10-1-2016		1,000,000		1,016,990
Volusia County FL School Board (Tax Revenue, AGM Insured)		5.00			10-1-2016		10,000,000		10,265,900
									234,624,671
Georgia: 2.22%
Atlanta GA Water & Wastewater Project Series A-1 (Water & Sewer Revenue) ±		1.78			11-1-2038		21,500,000		22,040,295
Bartow County GA Development Authority Georgia Power Company Bowen Project (Utilities Revenue) ±		2.70			8-1-2043		20,000,000		20,627,000
Burke County GA Development Authority Oglethorpe Power Corporation Vogtle Project Series A (Utilities Revenue) ±		2.40			1-1-2040		17,825,000		18,115,369
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		11,000,000		11,135,960
Gainesville & Hall County GA Hospital Authority Health System Project Series B (Health Revenue) ±		0.96			8-15-2035		23,000,000		22,793,230
Georgia Private Colleges & Universities Authority Mercer University Series B (Education Revenue)		4.00			10-1-2017		3,285,000		3,436,734
Henry County GA Master State Municipal Loan (Miscellaneous Revenue)		4.09			4-24-2016		317,375		319,019
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2017		8,015,000		8,357,561
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2018		4,815,000		5,165,002
Milledgeville & Baldwin County GA Development Authority College & State University (Education Revenue, Ambac Insured) ±		0.72			10-1-2016		1,010,000		1,008,364
Monroe County GA PCR Georgia Power Company Plant Scherer Project (Utilities Revenue) ±		2.00			7-1-2025		3,255,000		3,290,642
Monroe County GA PCR Georgia Power Company Plant Scherer Project (Industrial Development Revenue) ±		2.35			10-1-2048		16,000,000		16,228,000
Pike County GA School District (GO Revenue, Ambac Insured)		5.70			2-1-2016		225,000		225,648
									132,742,824
Guam: 0.09%
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2019		450,000		507,303
Guam International Airport Authority Series B (Airport Revenue)		5.00			10-1-2018		675,000		744,269
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2018		3,560,000		3,874,740
									5,126,312
Idaho: 0.15%
Idaho Housing & Finance Association Series A (Housing Revenue, FNMA LOC) ø		0.26			1-1-2038		8,735,000		8,735,000
Idaho Housing & Finance Association Series A (Housing Revenue)		6.25			7-1-2038		100,000		100,945
									8,835,945
Illinois: 9.61%
Chicago IL Board of Education Dedicated Series C1 (GO Revenue) ±		0.96			3-1-2032		24,500,000		24,377,255
Chicago IL Board of Education Dedicated Series C2 (GO Revenue) ±		1.11			3-1-2032		33,000,000		31,755,570
Chicago IL Board of Education Dedicated Series D (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2018		1,400,000		1,474,004
Chicago IL Board of Education Lease Certificates Refunding Bond Series A (Miscellaneous Revenue, National Insured)		6.00			1-1-2020		11,990,000		12,918,745

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

12 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00	%		12-1-2019	$	895,000	$	949,094
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2020		765,000		767,387
Chicago IL Board of Education Series A2 (GO Revenue) ±		0.76			3-1-2035		24,000,000		22,898,640
Chicago IL Board of Education Series A3 (GO Revenue) ±		0.84			3-1-2036		48,000,000		43,949,280
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2019		5,335,000		5,267,726
Chicago IL Board of Education Series D (GO Revenue, AGM Insured)		5.00			12-1-2019		1,105,000		1,142,084
Chicago IL Board of Education Series G (GO Revenue) ±		4.01			3-1-2032		7,000,000		6,994,960
Chicago IL City Colleges of Chicago Capital Improvement Project CAB (GO Revenue, National Insured) ¤		0.00			1-1-2019		8,555,000		7,560,909
Chicago IL Modern Schools Across Chicago Program Series A-K (GO Revenue, Ambac Insured)		5.00			12-1-2019		1,000,000		1,018,290
Chicago IL Motor Fuel Refunding Bond (Tax Revenue)		5.00			1-1-2017		1,820,000		1,862,115
Chicago IL Motor Fuel Refunding Bond (Tax Revenue)		5.00			1-1-2018		180,000		187,366
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.00			1-1-2019		1,000,000		1,094,890	��
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.00			1-1-2020		890,000		990,704
Chicago IL O’Hare International Airport Senior Lien Series A (Airport Revenue)		5.00			1-1-2017		2,630,000		2,740,618
Chicago IL Park District Refunding Bond Series B (GO Revenue)		5.00			1-1-2019		3,555,000		3,860,801
Chicago IL Park District Refunding Bond Series D (GO Revenue)		4.00			1-1-2019		1,890,000		1,997,843
Chicago IL Park District Refunding Bond Series D (GO Revenue)		5.00			1-1-2019		1,000,000		1,086,020
Chicago IL Park District Refunding Bond Series D (GO Revenue)		5.00			1-1-2020		1,000,000		1,105,040
Chicago IL Park District Refunding Bond Series D (GO Revenue)		5.00			1-1-2021		1,000,000		1,116,320
Chicago IL Project & Refunding Bond Series A (GO Revenue, National Insured)		5.00			1-1-2019		4,465,000		4,617,748
Chicago IL Project & Refunding Bond Series C (GO Revenue, Ambac Insured)		4.00			1-1-2017		1,175,000		1,183,601
Chicago IL Project & Refunding Bond Series C (GO Revenue, National Insured)		4.00			1-1-2017		345,000		348,954
Chicago IL Project & Refunding Bond Series C (GO Revenue, Ambac Insured)		5.00			1-1-2021		10,280,000		10,470,900
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.25			1-1-2018		1,770,000		1,846,057
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.25			1-1-2020		3,765,000		4,030,734
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.50			1-1-2019		2,600,000		2,768,246
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2019		1,335,000		1,338,444
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2020		10,200,000		10,238,658
Chicago IL Refunding Bond Series A (GO Revenue, Ambac Insured)		5.00			1-1-2020		1,985,000		2,023,231
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2021		1,100,000		1,111,154
Chicago IL Refunding Bond Series B (GO Revenue, Ambac Insured)		5.13			1-1-2022		8,010,000		8,356,192
Chicago IL Refunding Bond Series C (GO Revenue)		5.00			1-1-2020		4,375,000		4,616,325
Chicago IL Refunding Bond Series C (GO Revenue)		5.00			1-1-2021		4,470,000		4,749,822
Chicago IL Revenue Recovery Zone Facility (Industrial Development Revenue)		6.13			12-1-2018		4,955,000		5,122,479
Chicago IL Series A (GO Revenue)		5.00			1-1-2018		500,000		517,990
Chicago IL Series A (GO Revenue)		5.00			1-1-2019		5,750,000		5,926,410
Chicago IL Series A (GO Revenue, National Insured)		5.53			1-1-2020		1,290,000		1,307,286
Chicago IL Series A (GO Revenue)		5.00			1-1-2019		1,350,000		1,411,115
Chicago IL Series A (GO Revenue)		5.25			1-1-2021		640,000		662,707
Chicago IL Series A2 (GO Revenue, Ambac Insured)		5.50			1-1-2018		4,805,000		5,011,759
Chicago IL Series B (GO Revenue, AGM Insured)		5.00			1-1-2019		8,090,000		8,172,033
Chicago IL Series B (GO Revenue, AGM Insured)		5.00			1-1-2020		2,860,000		2,889,000
Chicago IL Transit Authority Federal Transit Administration Section 5309 (Transportation Revenue, AGC Insured)		5.00			6-1-2018		375,000		404,018

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Transit Authority Federal Transit Administration Section 5309 (Transportation Revenue, AGC Insured)		5.25	%		6-1-2019	$	1,480,000	$	1,597,823
Chicago IL Wastewater Transmission Revenue (Water & Sewer Revenue)		5.00			1-1-2017		1,200,000		1,243,608
Chicago IL Wastewater Transmission Revenue Second Lien (Water & Sewer Revenue, National Insured)		5.50			1-1-2019		1,460,000		1,603,591
Chicago IL Water Revenue Project and Refunding Bonds (Water & Sewer Revenue, AGM Insured)		4.25			11-1-2018		1,925,000		2,035,842
Chicago IL Waterworks Revenue Second Lien Project (Water & Sewer Revenue)		5.00			11-1-2020		730,000		813,972
Cook County IL Forest Preserve District Series A (GO Revenue)		5.00			11-15-2018		1,005,000		1,097,500
Cook County IL Series 2009D (GO Revenue)		5.00			11-15-2020		2,220,000		2,433,142
Cook County IL Series A (GO Revenue)		5.00			11-15-2019		2,150,000		2,371,601
Cook County IL Series B (GO Revenue, National Insured)		5.00			11-15-2019		6,020,000		6,279,944
Cook County IL Series C (GO Revenue)		5.00			11-15-2020		21,535,000		23,602,575
Illinois (Miscellaneous Revenue)		3.00			7-1-2018		2,000,000		2,026,520
Illinois (GO Revenue)		4.00			2-1-2019		6,300,000		6,552,252
Illinois (GO Revenue)		4.00			2-1-2020		1,750,000		1,831,830
Illinois (GO Revenue)		5.00			9-1-2016		10,000,000		10,030,900
Illinois (GO Revenue)		5.00			1-1-2017		3,200,000		3,218,400
Illinois (GO Revenue)		5.00			3-1-2018		1,795,000		1,894,640
Illinois (GO Revenue, Ambac Insured)		5.00			11-1-2018		10,650,000		10,683,974
Illinois (GO Revenue)		5.00			2-1-2019		1,500,000		1,604,205
Illinois (GO Revenue)		5.00			2-1-2020		2,500,000		2,712,750
Illinois (GO Revenue)		5.00			2-1-2021		11,635,000		12,699,719
Illinois (Miscellaneous Revenue)		5.00			5-1-2021		2,000,000		2,187,500
Illinois Development Finance Authority St. Vincent De Paul Center Project Series A (Health Revenue) ±		1.88			11-15-2039		5,105,000		5,167,843
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2019		2,265,000		2,466,834
Illinois Finance Authority Provena Health Series A (Health Revenue)		5.75			5-1-2019		3,000,000		3,305,820
Illinois Finance Authority Refunding Bond Lifespace Communities (Health Revenue)		4.00			5-15-2018		700,000		739,963
Illinois Finance Authority Refunding Bond Lifespace Communities (Health Revenue)		4.00			5-15-2019		1,000,000		1,068,870
Illinois Housing Development Authority (Housing Revenue, GNMA Insured)		5.00			8-1-2028		1,440,000		1,484,366
Illinois Municipal Electric Agency Power Supply Series A (Utilities Revenue, National Insured)		5.25			2-1-2020		2,705,000		2,839,276
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2018		1,905,000		2,004,593
Illinois Refunding Bond (GO Revenue, AGM Insured)		5.00			1-1-2017		1,725,000		1,786,462
Illinois Refunding Bond (GO Revenue, AGM Insured)		5.00			1-1-2018		7,740,000		8,202,388
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2018		5,100,000		5,421,096
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2019		12,570,000		13,424,006
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2020		13,515,000		14,648,773
Illinois Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2020		5,000,000		5,563,250
Illinois Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		9,175,000		10,208,564
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2020		5,000,000		5,460,950
Illinois Refunding Bond (Tax Revenue)		5.00			1-1-2021		1,510,000		1,647,063
Illinois Refunding Bond Series B (Miscellaneous Revenue)		5.25			1-1-2018		1,430,000		1,511,710
Illinois Series A (GO Revenue)		3.75			9-1-2016		2,000,000		2,036,380
Illinois Series A (Tax Revenue)		4.00			1-1-2020		12,265,000		12,832,502
Illinois Series A (Tax Revenue)		4.00			1-1-2021		2,715,000		2,836,333

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

14 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Series A (GO Revenue)		5.00	%		4-1-2019	$	5,000,000	$	5,362,600
Illinois Series A (GO Revenue)		5.00			4-1-2020		2,500,000		2,718,850
Illinois Unemployment Insurance Series A (Tax Revenue)		5.00			12-15-2016		5,200,000		5,422,248
Illinois Unemployment Insurance Series B (Tax Revenue)		5.00			12-15-2017		4,700,000		4,895,567
Illinois Unemployment Insurance Series B (Tax Revenue)		5.00			6-15-2018		17,120,000		17,800,691
Illinois Unrefunded Balance Series A (Miscellaneous Revenue)		5.00			10-1-2016		3,965,000		3,977,252
Kane County IL School District Series B (GO Revenue)		2.00			2-1-2021		880,000		881,514
Kane McHenry Cook & DeKalb Counties IL Unit School District #300 (GO Revenue, Syncora Guarantee Incorporated Insured)		5.25			1-1-2021		920,000		920,000
Lake County IL Community Consolidated School District (GO Revenue, National Insured)		8.70			1-1-2016		1,075,000		1,075,000
Lake County IL Community High School District #117 Antioch CAB Series B (GO Revenue, National Insured) ¤		0.00			12-1-2016		4,975,000		4,927,539
Lake County IL Community Unit School District #60 Waukegan CAB Series A (GO Revenue, AGM Insured) ¤		0.00			12-1-2018		1,715,000		1,616,576
Lake County IL Forest Preservation District Series A (GO Revenue) ±		0.79			12-15-2016		1,085,000		1,084,957
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2021		1,000,000		871,920
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Project Series A (Tax Revenue, National Insured) ¤		0.00			6-15-2017		11,210,000		10,935,579
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2017		6,000,000		5,791,080
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Project Series B (Tax Revenue)		5.00			12-15-2020		1,000,000		1,123,120
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.60			6-1-2025		13,495,000		13,495,000
Southern Illinois State University Housing & Auxiliary Facilities System Series A (Education Revenue)		4.00			4-1-2016		635,000		639,509
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2018		12,000,000		12,598,080
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2019		5,900,000		6,194,056
Western Illinois University Auxiliary Facilities System (Education Revenue)		4.00			4-1-2016		855,000		862,122
Western Illinois University Auxiliary Facilities System (Education Revenue)		4.00			4-1-2017		1,135,000		1,172,432
									573,785,546
Indiana: 4.01%
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		79,215,000		82,314,683
Indiana Finance Authority Refunding Bond Series A (Miscellaneous Revenue, National Insured)		4.50			12-1-2021		5,000,000		5,181,250
Indiana Finance Authority Refunding Bond Southern Indiana Gas & Electric Company Series E (Utilities Revenue) ±		1.95			5-1-2037		3,000,000		3,029,700
Indiana HFFA Ascension Health Series A1 (Health Revenue) ±		2.80			11-1-2027		11,285,000		11,751,296
Indiana HFFA Ascension Health Series A7 (Health Revenue) ±		2.00			10-1-2026		9,425,000		9,539,797
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.75			11-15-2031		70,710,000		70,881,825
Knox County IN Economic Development Good Samaritan Hospital Series A (Health Revenue)		3.00			4-1-2016		600,000		602,628
Petersburg IN PCR Refunding Bond Industry Power & Light (Industrial Development Revenue, National Insured)		5.40			8-1-2017		1,000,000		1,068,710
Rockport IN PCR Indiana-Michigan Power Company Series B (Utilities Revenue) ±		1.75			6-1-2025		4,285,000		4,299,655
Warrick County IN Environment Import Revenue Vectren Energy Delivery of Indiana Incorporated (Utilities Revenue) ±		2.38			9-1-2055		6,450,000		6,522,563

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Indiana (continued)
Whiting IN BP Products North America Incorporated Project (Resource Recovery Revenue)		0.76	%		12-1-2044	$	45,000,000	$	44,169,300
									239,361,407
Iowa: 0.10%
Iowa Student Loan Liquidity Corporation Senior Series A1 (Education Revenue)		4.40			12-1-2018		5,660,000		5,890,588
Kansas: 0.33%
Kansas Development Finance Authority Series A (Miscellaneous Revenue)		5.00			5-1-2019		10,305,000		11,547,165
Wyandotte County & Kansas City KS Unified Government Special Obligation Second Lien CAB Series A (Tax Revenue) ¤		0.00			6-1-2021		10,505,000		7,845,344
									19,392,509
Kentucky: 1.88%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		1.76			2-1-2040		33,495,000		33,530,170
Ashland KY Ashland Hospital Corporation Medical Center Project Series B (Health Revenue)		5.00			2-1-2019		1,500,000		1,611,270
Kentucky EDFA King’s Daughters Medical Center (Health Revenue)		5.00			2-1-2017		1,000,000		1,030,900
Kentucky EDFA Series B1 (Health Revenue) ±		1.19			2-1-2046		10,720,000		10,643,245
Kentucky EDFA Series B2 (Health Revenue) ±		1.19			2-1-2046		11,220,000		11,139,665
Kentucky Higher Education Student Loan Corporation Series A (Education Revenue)		3.75			6-1-2026		1,600,000		1,659,328
Kentucky Higher Education Student Loan Corporation Series A (Education Revenue)		5.00			6-1-2018		1,200,000		1,286,064
Kentucky Municipal Power Agency Prairie State Project Series B (Utilities Revenue) ±		1.41			9-1-2042		25,000,000		24,989,000
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		25,000,000		26,388,750
									112,278,392
Louisiana: 2.76%
Desoto Parish LA PCR (Utilities Revenue)		1.60			1-1-2019		15,000,000		14,950,200
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.67			2-1-2046		43,485,000		43,247,572
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Sewer Commission Series B (Tax Revenue) ±		0.87			2-1-2049		35,500,000		35,666,140
Louisiana Local Government Environmental Facilities & Community Development Authority Series 2015 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2020		1,135,000		1,313,921
Louisiana PFA Nineteenth Judicial District Court (Miscellaneous Revenue, National Insured)		5.00			6-1-2016		1,000,000		1,019,280
Louisiana Regional Transit Authority CAB (Tax Revenue, National Insured) ¤		0.00			12-1-2021		5,000,000		3,734,100
New Orleans LA Master Lease Agreement (GO Revenue) (i)		5.25			1-1-2018		7,555,272		7,728,515
St. Bernard Parish LA Sales & Uses Tax (Tax Revenue)		4.00			3-1-2017		3,135,000		3,243,941
St. Bernard Parish LA Sales & Uses Tax (Tax Revenue)		4.00			3-1-2018		3,245,000		3,423,248
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.40			11-1-2040		35,000,000		35,000,000
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø		0.33			11-1-2040		15,300,000		15,300,000
									164,626,917

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

16 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Maryland: 1.98%
Howard County MD Housing Commission Series A (Housing Revenue) ±		1.26	%		7-1-2034	$	16,050,000	$	16,017,419
Maryland Community Development Administration Department Housing & Community Multifamily Bernard E Mason Apartments Series F (Housing Revenue)		1.17			11-1-2017		18,020,000		18,008,287
Maryland Community Development Administration Department Housing & Community Multifamily Riverwatch Apartments Series J (Housing Revenue)		1.00			4-1-2017		11,750,000		11,737,310
Maryland Health & HEFAR John Hopkins Health System Series A (Health Revenue) ±		0.76			5-15-2046		8,000,000		8,009,280
Maryland Health & HEFAR John Hopkins Health System Series B (Health Revenue) ±		0.74			5-15-2029		10,210,000		10,217,147
Maryland Health & HEFAR John Hopkins Health System Series B (Health Revenue) ±		1.31			5-15-2042		12,500,000		12,554,875
Maryland Health & HEFAR John Hopkins Health System Series C (Health Revenue) ±		0.99			5-15-2038		22,200,000		22,287,912
Maryland Health & HEFAR John Hopkins Health System Series D (Health Revenue) ±		0.99			5-15-2038		19,035,000		19,110,379
									117,942,609
Massachusetts: 2.75%
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ±		0.21			8-1-2043		82,250,000		82,096,193
Massachusetts Development Finance Agency Dominion Energy Brayton Recovery Zone Series A (Utilities Revenue)		2.25			12-1-2041		2,665,000		2,694,288
Massachusetts Development Finance Agency Southcoast Health System Obligation Series F (Health Revenue)		3.00			7-1-2016		500,000		506,035
Massachusetts Development Finance Agency Southcoast Health System Obligation Series F (Health Revenue)		3.00			7-1-2017		500,000		515,080
Massachusetts Development Finance Agency Waste Management Incorporated (Resource Recovery Revenue) ±		1.60			5-1-2027		7,000,000		7,031,080
Massachusetts Educational Financing Authority Education Loan Series I (Education Revenue)		4.00			1-1-2018		1,750,000		1,823,185
Massachusetts Educational Financing Authority Series A (Education Revenue)		3.50			1-1-2019		2,500,000		2,608,675
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2018		1,500,000		1,596,630
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2019		3,000,000		3,260,790
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2020		3,000,000		3,321,180
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2022		2,955,000		3,358,949
Massachusetts Educational Financing Authority Series K (Education Revenue)		5.00			7-1-2019		2,000,000		2,174,280
Massachusetts HEFA Partners Healthcare Series G6 (Health Revenue) ±		0.89			7-1-2038		40,000,000		40,001,200
Massachusetts Series A (GO Revenue) ±		0.53			9-1-2016		4,000,000		4,002,840
Massachusetts Various Consolidated Loans Series D (Tax Revenue) ±		0.44			1-1-2018		9,500,000		9,458,105
									164,448,510
Michigan: 4.04%
Birmingham MI City School District (GO Revenue)		5.00			11-1-2018		905,000		1,004,505
Birmingham MI City School District (GO Revenue)		5.00			11-1-2019		5,970,000		6,811,591
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		250,000		263,495
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		1,315,000		1,431,220
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		500,000		572,695
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,140,000		1,332,945
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2016		680,000		687,997

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00	%		5-1-2017	$	740,000	$	770,096
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2018		1,535,000		1,635,420
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2019		1,595,000		1,730,495
Detroit MI (GO Revenue)		5.00			11-1-2016		855,000		880,607
Detroit MI Sewage Disposal System Series A (Water & Sewer Revenue, AGM Insured)		5.25			7-1-2019		980,000		1,097,727
Detroit Wayne County MI Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2016		4,060,000		4,066,334	��
Detroit Wayne County MI Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2017		3,000,000		3,006,000
Flint MI International Academy Public School Project (Education Revenue)		5.00			10-1-2017		510,000		516,783
Flushing MI Community Schools School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		975,000		1,014,653
Flushing MI Community Schools School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2021		1,135,000		1,269,418
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2018		2,000,000		2,176,760
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2019		1,375,000		1,536,439
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2016		640,000		649,766
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,000,000		1,053,980
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,050,000		1,173,281
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,085,000		1,212,390
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,100,000		1,259,929
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,185,000		1,385,561
Grand Ledge MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		2,680,000		3,069,645
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2019		515,000		558,749
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2020		370,000		408,336
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		500,000		584,625
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		750,000		816,285
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,605,000		1,793,443
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured) %%		5.00			5-1-2019		915,000		1,019,713
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		2,325,000		2,597,978
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured) %%		5.00			5-1-2020		1,390,000		1,588,200
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,550,000		1,775,355
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured) %%		5.00			5-1-2021		1,385,000		1,615,783
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		2,500,000		2,759,450

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

18 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-7 (Water & Sewer Revenue, National Insured)		5.00	%		7-1-2020	$	3,835,000	$	4,321,623
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2021		3,095,000		3,547,706
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2016		2,000,000		2,043,980
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2017		2,500,000		2,639,650
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2018		2,000,000		2,168,560
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2020		10,000,000		11,354,200
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-3 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		7,000,000		7,726,460
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		1,500,000		1,655,670
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2020		1,800,000		2,028,402
Michigan Finance Authority Refunding Bond Senior Lien Detroit Water & Sewer Series C-3 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2021		7,500,000		8,674,950
Michigan Finance Authority Refunding Bond Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		7,000,000		7,726,460
Michigan Finance Authority Refunding Bond Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2020		8,720,000		9,826,481
Michigan Finance Authority School District (Miscellaneous Revenue)		4.00			6-1-2017		800,000		822,168
Michigan Finance Authority School District (Miscellaneous Revenue)		5.00			6-1-2016		1,575,000		1,597,507
Michigan Finance Authority School District (Miscellaneous Revenue)		5.00			6-1-2017		750,000		782,175
Michigan Finance Authority School District (Miscellaneous Revenue)		5.00			7-1-2021		2,060,000		2,263,034
Michigan Finance Authority Unemployment Obligation Assessment Series B (Miscellaneous Revenue)		5.00			1-1-2020		15,000,000		16,992,150
Michigan Hospital Finance Authority Ascension Health Series A-3 (Health Revenue) ±		1.87			11-1-2027		23,815,000		24,186,514
Michigan Housing Development Authority Limited Greenwood Villa Project (Housing Revenue, AGM Insured)		4.75			9-15-2017		1,280,000		1,312,947
Michigan Housing Development Authority Series A (Housing Revenue)		1.80			4-1-2019		7,000,000		7,031,990
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2016		415,000		419,208
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		29,250,000		29,881,800
Rochester MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		900,000		948,582
Rochester MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		900,000		1,005,669
South Lyon MI Community School District (GO Revenue) %%		4.00			5-1-2018		2,060,000		2,185,289
South Lyon MI Community School District (GO Revenue) %%		4.00			5-1-2019		1,860,000		2,010,790
South Lyon MI Community School District (GO Revenue) %%		4.00			5-1-2020		1,425,000		1,565,192
Southgate MI Community School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			5-1-2019		1,000,000		1,118,790
Southgate MI Community School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			5-1-2020		500,000		573,905
Warren Woods MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,445,000		1,523,001

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Warren Woods MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00	%		5-1-2020	$	1,445,000	$	1,655,089
Wayne County MI Airport Authority Refunding Bond Series A (Airport Revenue)		5.00			12-1-2019		19,405,000		21,436,509
Western Michigan University Refunding Bond (Education Revenue)		5.00			11-15-2020		1,000,000		1,158,550
									241,312,650
Minnesota: 0.30%
Central MN Municipal Power Agency Brookings Southeast Twin Cities Transmission Project (Utilities Revenue)		5.00			1-1-2017		1,215,000		1,219,119
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		10,410,000		10,447,164
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.02			11-15-2017		5,800,000		5,742,000
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2018		670,000		722,240
									18,130,523
Mississippi: 0.30%
Mississippi Business Finance Corporation Power Company Project 1st Series (Utilities Revenue) ±		1.63			12-1-2040		10,000,000		10,049,800
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2016		495,000		514,488
Mississippi Refunding Bond Capital Improvements Projects Series D (Miscellaneous Revenue) ±		0.54			9-1-2017		7,605,000		7,605,152
									18,169,440
Missouri: 0.39%
Jackson County MO Special Obligation Harry S. Truman Sports Complex (Tax Revenue, Ambac Insured)		5.00			12-1-2019		3,000,000		3,124,170
Kansas City MO Series A (GO Revenue)		5.00			2-1-2018		1,150,000		1,246,336
Kansas City MO Series A (GO Revenue)		5.00			2-1-2019		1,000,000		1,116,340
Kansas City MO Series A (GO Revenue)		5.00			2-1-2020		1,495,000		1,713,031
Missouri Development Finance Board Refunding Bond & Improvement Electric System Series F (Miscellaneous Revenue)		4.00			6-1-2016		500,000		506,755
Missouri Joint Municipal Electric Utility Commission (Utilities Revenue)		5.00			1-1-2016		1,910,000		1,910,000
Sikeston MO Electric System Refunding Bond (Utilities Revenue)		5.00			6-1-2019		11,625,000		12,758,205
St. Louis MO Municipal Finance Corporation (Miscellaneous Revenue)		5.00			2-15-2016		1,000,000		1,005,800
									23,380,637
Nebraska: 0.02%
Public Power Generation Agency Whelan Energy Center Unit (Utilities Revenue)		5.00			1-1-2020		1,000,000		1,126,680
Nevada: 0.52%
Clark County NV Airport Jet Aviation Fuel Tax Series A (Airport Revenue)		5.00			7-1-2019		1,000,000		1,116,370
Clark County NV Airport Jet Aviation Fuel Tax Series A (Airport Revenue)		5.00			7-1-2020		1,000,000		1,137,510
Clark County NV PCR (Industrial Development Revenue) ±		1.88			6-1-2031		750,000		758,438
Clark County NV School District Series B (GO Revenue)		5.00			6-15-2019		18,800,000		21,179,892
Clark County NV School District Series B (GO Revenue)		5.00			6-15-2021		1,400,000		1,502,760
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		3.00			6-1-2016		445,000		446,295
Nevada River Commission Hoover Upgrading Project Series E (GO Revenue)		5.00			10-1-2016		4,595,000		4,752,195
									30,893,460

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

20 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New Hampshire: 0.12%
New Hampshire HEFA Catholic Medical Center (Health Revenue)		4.00	%		7-1-2018	$	2,405,000	$	2,488,357
New Hampshire HEFA Catholic Medical Center (Health Revenue)		4.00			7-1-2019		2,635,000		2,756,763
New Hampshire HFA SFMR Series B (Housing Revenue)		5.00			7-1-2027		1,775,000		1,855,195
									7,100,315
New Jersey: 4.97%
Casino Reinvestment Development Authority New Jersey Luxury Tax Revenue (Tax Revenue)		4.00			11-1-2017		1,000,000		1,018,130
Casino Reinvestment Development Authority New Jersey Luxury Tax Revenue (Tax Revenue)		4.00			11-1-2019		1,500,000		1,530,210
Hudson County NJ Certificate of Participation (Miscellaneous Revenue, National Insured)		6.25			6-1-2016		2,000,000		2,042,320
Hudson County NJ Refunding Bond County College (GO Revenue)		4.00			7-15-2017		1,000,000		1,048,240
Hudson County NJ Refunding Bond County College (GO Revenue)		4.00			7-15-2018		1,135,000		1,218,797
Jersey City NJ Refunding Bond (GO Revenue, AGM Insured)		4.00			9-1-2017		1,620,000		1,695,605
Morris-Union Jointure Commission New Jersey Refunding Bond (Miscellaneous Revenue, AGM Insured)		4.00			8-1-2016		2,235,000		2,270,537
New Jersey Certificate of Participation Equipment Lease Purchase Agreement Series A (Miscellaneous Revenue)		5.00			6-15-2018		11,160,000		11,828,038
New Jersey EDA CAB Saint Barnabas Hospital Series A (Health Revenue, National Insured) ¤		0.00			7-1-2017		2,740,000		2,678,460
New Jersey EDA Cigarette Tax (Tobacco Revenue)		5.00			6-15-2017		18,520,000		19,279,690
New Jersey EDA Motor Vehicle Commission Series A (Miscellaneous Revenue, National Insured)		5.25			7-1-2016		2,190,000		2,221,843
New Jersey EDA Revenue Prerefunded School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2018		2,375,000		2,621,668
New Jersey EDA Revenue Prerefunded School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2020		1,650,000		1,920,089
New Jersey EDA Revenue Refunding Bond (Tobacco Revenue)		4.00			6-15-2019		2,500,000		2,615,850
New Jersey EDA Revenue Series UU (Miscellaneous Revenue)		5.00			6-15-2017		3,000,000		3,134,670
New Jersey EDA Revenue Series UU (Miscellaneous Revenue)		5.00			6-15-2018		7,355,000		7,795,270
New Jersey EDA Revenue Unrefunded School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2020		610,000		665,785
New Jersey EDA Revenue Unrefunded School Facilities School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2018		865,000		920,023
New Jersey EDA School Facilities Construction Bonds Series DD-1 (Miscellaneous Revenue)		5.00			12-15-2019		1,000,000		1,082,520
New Jersey EDA School Facilities Construction Bonds Series K (Miscellaneous Revenue, National Insured)		5.25			12-15-2021		1,040,000		1,189,001
New Jersey EDA School Facilities Construction Notes (Miscellaneous Revenue) ±		0.91			2-1-2017		20,725,000		20,458,891
New Jersey EDA School Facilities Construction Notes Series DD1 (Miscellaneous Revenue)		5.00			12-15-2018		4,690,000		5,010,890
New Jersey EDA School Facilities Construction Notes Series K (Miscellaneous Revenue) ±		0.74			2-1-2017		10,000,000		9,903,700
New Jersey EDA School Facilities Construction Project Series C (Miscellaneous Revenue) ±		1.81			2-1-2018		38,000,000		37,780,360
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series A (Education Revenue)		4.00			9-1-2017		2,425,000		2,504,807
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series B (Education Revenue)		4.00			9-1-2017		525,000		542,278

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series D (Education Revenue)		4.00	%		9-1-2016	$	540,000	$	550,665
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series D (Education Revenue)		4.00			9-1-2017		565,000		583,594
New Jersey HCFA Trinitas Hospital Obligation Series B (Health Revenue)		5.25			7-1-2023		5,000,000		5,264,850
New Jersey HCFR Series 3018 (Health Revenue, AGC Insured, Deutsche Bank LIQ) 144Aø		0.40			7-1-2038		21,805,285		21,805,285
New Jersey HFFA Greystone Park Psychiatric Hospital Project Series B (Miscellaneous Revenue)		5.00			9-15-2019		2,135,000		2,304,049
New Jersey Higher Education Assistance Authority Series A1 (Education Revenue)		3.63			12-1-2030		4,000,000		4,116,400
New Jersey Higher Education Assistance Authority Series A1 (Education Revenue)		5.00			12-1-2020		9,775,000		10,896,290
New Jersey Sports & Exposition Authority Series B (Miscellaneous Revenue)		5.00			9-1-2018		1,605,000		1,707,094
New Jersey Transit Corporation Federal Transit Administration Grants Series A (Miscellaneous Revenue, National Insured)		5.00			9-15-2017		7,265,000		7,774,349
New Jersey Transportation Program Series B (Miscellaneous Revenue, National Insured)		5.50			12-15-2016		2,205,000		2,295,251
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue)		5.00			12-15-2019		3,000,000		3,247,560
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			12-15-2018		1,000,000		1,068,420
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		33,465,000		37,030,026
New Jersey TTFA Series AA (Transportation Revenue)		5.00			6-15-2019		2,070,000		2,226,368
New Jersey TTFA Transit System Series A (Miscellaneous Revenue)		5.75			6-15-2020		4,150,000		4,587,120
New Jersey Turnpike Authority Series B-2 (Transportation Revenue) ±		0.70			1-1-2024		25,000,000		25,009,750
New Jersey Turnpike Authority Series B-3 (Transportation Revenue) ±		0.73			1-1-2024		4,700,000		4,712,267
Newark NJ Housing Authority Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.00			1-1-2016		790,000		790,000
Newark NJ Housing Authority Refunding Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.00			1-1-2016		1,070,000		1,070,000
Newark NJ Housing Authority Refunding Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.25			1-1-2020		2,170,000		2,456,787
Newark NJ Housing Authority Refunding Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.25			1-1-2021		4,570,000		5,259,247
Rutgers University Series J (Education Revenue)		4.00			5-1-2018		700,000		747,194
Rutgers University Series L (Education Revenue)		5.00			5-1-2017		600,000		633,930
Rutgers University Series L (Education Revenue)		5.00			5-1-2018		300,000		327,483
Trenton NJ Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			12-1-2017		1,710,000		1,787,412
Trenton NJ Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2020		1,675,000		1,894,325
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		3.00			8-1-2017		600,000		617,184
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		4.00			8-1-2018		425,000		452,693
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		4.00			8-1-2019		525,000		569,788
									296,763,053
New Mexico: 0.88%
Clayton NM Jail Project (Miscellaneous Revenue, CIFG Insured)		5.00			11-1-2016		2,100,000		2,178,393
Farmington NM PCR Series B (Utilities Revenue) ±		4.75			6-1-2040		5,080,000		5,305,044
Farmington NM PCR Southern California Edison Company Four Corners Project Series B (Utilities Revenue) ±		1.88			4-1-2029		4,750,000		4,795,600
New Mexico Educational Assistance Foundation Series A2 (Education Revenue) ±		1.06			12-1-2028		395,000		393,065
New Mexico Mortgage Finance Authority SFMR Class I-A-2 (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.60			1-1-2039		310,000		328,005

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

22 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New Mexico (continued)
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		0.91	%		11-1-2039	$	40,000,000	$	39,672,000
									52,672,107
New York: 10.58%
Albany NY IDA (Education Revenue) ±		0.38			7-1-2032		3,130,000		3,130,000
Branch Banking & Trust Class C (Miscellaneous Revenue, Rabobank LOC) ±144A		0.71			11-15-2017		21,065,000		20,882,788
Branch Banking & Trust Class D (Miscellaneous Revenue, Rabobank LOC) ±144A		0.81			11-15-2019		6,000,000		5,901,720
Deutsche Bank SPEAR/LIFER Trust Series DB 1087 (GO Revenue, HUD Insured, Deutsche Bank LIQ) 144Aø		0.68			12-1-2029		20,605,000		20,605,000
Deutsche Bank SPEAR/LIFER Trust Series DB 1089 (GO Revenue, HUD Insured, Deutsche Bank LIQ) 144Aø		0.68			6-1-2030		15,125,000		15,125,000
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		0.82			5-1-2033		12,000,000		11,935,320
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		1.05			5-1-2033		33,750,000		33,784,763
Metropolitan Transportation Authority New York Sub Series D2 (Transportation Revenue) ±		4.00			11-15-2034		14,365,000		15,646,214
Metropolitan Transportation Authority New York Sub Series B3 (Transportation Revenue) ±		0.91			11-1-2018		32,600,000		32,683,456
Metropolitan Transportation Authority New York Sub Series B4 (Transportation Revenue) ±		5.00			11-15-2030		12,445,000		14,106,283
Metropolitan Transportation Authority New York Sub Series C2 (Transportation Revenue) ±		4.00			11-15-2033		8,000,000		8,928,240
Metropolitan Transportation Authority New York Sub Series D2 (Transportation Revenue, AGM Insured) ±		0.77			11-1-2032		15,000,000		14,987,250
Metropolitan Transportation Authority New York Sub Series G1 (Transportation Revenue) ±		0.64			11-1-2026		31,950,000		31,648,392
Metropolitan Transportation Authority New York Sub Series G3 (Transportation Revenue) ±		0.86			11-1-2031		16,000,000		16,022,720
Metropolitan Transportation Authority New York Sub Series G4 (Transportation Revenue) ±		1.00			11-1-2030		11,655,000		11,713,508
Monroe County NY Airport Authority Greater Rochester International Airport (Airport Revenue, National Insured)		5.88			1-1-2016		3,830,000		3,830,000
Nassau County NY General Improvement Bonds Series C (GO Revenue)		5.00			10-1-2020		3,065,000		3,460,661
Nassau County NY Local Economic Assistance Winthrop University Hospital Project (Health Revenue)		4.00			7-1-2016		1,400,000		1,420,048
Nassau County NY Series F (GO Revenue)		5.00			10-1-2020		1,780,000		2,006,469
New York Dormitory Authority Non Miriam Osborn Memorial Home Association (Health Revenue)		2.00			7-1-2016		1,800,000		1,807,884
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		0.95			5-1-2018		9,795,000		9,797,743
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2017		2,250,000		2,388,960
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2018		750,000		823,335
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2019		1,000,000		1,132,400
New York IDA American Airlines JFK International Airport (Industrial Development Revenue)		7.50			8-1-2016		3,580,000		3,663,915
New York Local Government Assistance Corporation Series A9V (Tax Revenue, AGM Insured) ±(m)(n)		0.48			4-1-2017		16,675,000		16,612,469
New York Metropolitan Transport Authority Series A3 (Transportation Revenue) ±		0.51			11-15-2042		39,500,000		39,025,210

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York NY Adjusted Fiscal 2008 Sub Series A4 (GO Revenue, AGM Insured) ±(m)		0.29	%		8-1-2026	$	7,825,000	$	7,825,000
New York NY Adjusted Fiscal 2008 Sub Series C4 (GO Revenue, AGC Insured) ±(m)		0.42			10-1-2027		14,025,000		14,025,000
New York NY Adjusted Fiscal 2008 Sub Series J7 (GO Revenue) ±		0.48			8-1-2021		19,000,000		19,001,330
New York NY Health & Hospital Corporation Health System Series A (Health Revenue)		5.50			2-15-2020		5,755,000		6,281,410
New York NY IDAG Refunding Bond Senior Trips Series A (Airport Revenue)		5.00			7-1-2016		2,250,000		2,291,018
New York NY IDAG Refunding Bond Senior Trips Series A (Airport Revenue)		5.00			7-1-2017		2,000,000		2,101,300
New York NY IDAG Refunding Bond Terminal One Group Association Project (Miscellaneous Revenue)		5.50			1-1-2020		2,000,000		2,003,460
New York NY IDAG Refunding Bond Terminal One Group Association Project (Miscellaneous Revenue)		5.50			1-1-2021		6,940,000		6,952,006
New York NY John F. Kennedy International Airport Project Series B (Industrial Development Revenue) ±		2.00			8-1-2028		10,800,000		10,820,844
New York NY Refunding Bond 2015 Series A (GO Revenue)		5.00			8-1-2021		7,515,000		8,927,519
New York NY Sub Series J-11 (GO Revenue) ±		0.59			8-1-2027		18,960,000		18,915,065
New York NY Sub Series J-4 (GO Revenue) ±		0.56			8-1-2025		2,000,000		2,000,060
New York Tobacco Settlement Financing Corporation Series B (Tobacco Revenue)		5.00			6-1-2017		6,500,000		6,888,635
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		42,920,000		42,919,571
Oyster Bay NY Public Improvement Series B (GO Revenue, AGM Insured)		3.00			11-1-2018		1,140,000		1,192,087
Oyster Bay NY RAN (GO Revenue)		2.00			3-25-2016		11,000,000		11,038,170
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2018		2,475,000		2,569,397
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2019		1,830,000		1,922,854
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2020		630,000		665,601
Suffolk County NY Economic Development Corporation Catholic Health Services (Health Revenue)		5.00			7-1-2016		1,250,000		1,276,713
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2016		2,245,000		2,313,562
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2017		2,365,000		2,502,572
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2018		2,640,000		2,861,047
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2019		2,775,000		3,069,788
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2020		2,915,000		3,276,722
Suffolk County NY Public Improvement Series A (GO Revenue)		4.00			5-15-2018		1,615,000		1,720,766
Suffolk County NY Refunding Bond (GO Revenue, AGM Insured)		5.00			2-1-2016		4,185,000		4,201,782
Suffolk County NY Refunding Bond (GO Revenue, AGM Insured)		5.00			2-1-2017		1,500,000		1,569,600
Suffolk County NY Refunding Bond Series A (GO Revenue)		5.00			4-1-2018		2,700,000		2,929,257
Suffolk County NY Refunding Bond Series A (GO Revenue)		5.00			4-1-2019		1,385,000		1,545,895
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		35,000,000		35,241,500
Tobacco Settlement Financing Corporation Asset-Backed Revenue Bonds Series B (Tobacco Revenue)		5.00			6-1-2020		20,000,000		20,396,200
Triborough Bridge & Tunnel Authority New York Refunding Bond Sub Series ABCD-3 (Transportation Revenue, AGM Insured) ±		0.26			1-1-2017		3,600,000		3,597,048
Triborough Bridge & Tunnel Authority New York Refunding Bond Sub Series BE (Transportation Revenue) ±		0.81			1-1-2032		31,200,000		31,370,976

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

24 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Yonkers NY Series A (GO Revenue)		5.00	%		10-1-2016	$	2,000,000	$	2,064,720
									631,348,223
North Carolina: 0.63%
North Carolina Capital Finance Republic Services Incorporated Project (Resource Recovery Revenue) ±		0.62			6-1-2038		6,500,000		6,500,000
North Carolina Eastern Municipal Power Agency Series C (Utilities Revenue, AGC Insured)		6.00			1-1-2019		710,000		764,123
North Carolina Eastern Municipal Power Agency Series D (Utilities Revenue)		5.00			1-1-2016		5,000,000		5,000,000
North Carolina Eastern Municipal Power Agency Series D (Utilities Revenue)		5.00			1-1-2017		10,000,000		10,433,900
North Carolina Grant Anticipation Capital Improvement (Miscellaneous Revenue) ±		4.00			3-1-2023		13,130,000		13,766,017
North Carolina Medical Care Commission Novant Health Obligated Group Series A (Health Revenue)		4.00			11-1-2017		1,330,000		1,397,710
									37,861,750
North Dakota: 0.10%
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		5,000,000		4,995,600
Ward County ND HCFR Trinity Obligated Group (Health Revenue)		5.13			7-1-2018		1,000,000		1,018,500
									6,014,100
Ohio: 3.40%
Cleveland OH Municipal School District (GO Revenue, South Dakota Credit Program Insured)		5.00			12-1-2016		1,705,000		1,774,206
Crawford County OH Avita Health System Obligated Group Project (Health Revenue)		1.43			11-1-2017		10,000,000		9,976,400
Cuyahoga OH Metropolitan Housing Authority Heritage View Homes Project (Housing Revenue)		1.00			6-1-2017		5,550,000		5,549,834
Franklin County OH Hospital Facilities Refunding Bond Ohio Health Corporation Series B (Health Revenue) ±		5.00			11-15-2033		16,705,000		17,738,872
Lancaster OH Port Authority Gas Supply (Utilities Revenue) ±		0.88			5-1-2038		73,500,000		72,932,580
Lorain County OH Port Authority EDA Series A (Health Revenue)		4.00			11-15-2018		670,000		710,682
Lucas Metropolitan Housing Authority OH Certificate of Participation (Housing Revenue)		2.25			11-1-2020		1,015,000		1,019,994
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2016		750,000		753,323
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2017		1,575,000		1,624,644
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2018		1,000,000		1,054,520
Ohio Air Quality Development Authority PCR Facilities Refunding Bond FirstEnergy Generation Project (Resource Recovery Revenue) ±		3.10			3-1-2023		10,000,000		10,065,900
Ohio Air Quality Development Authority Series A (Miscellaneous Revenue) ±		3.13			7-1-2033		1,500,000		1,517,850
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75			12-1-2023		5,000,000		5,146,500
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			12-1-2033		2,000,000		2,031,500
Ohio Higher Educational Facility Commission University of Dayton Project Series B (Education Revenue) ±		1.26			7-1-2016		10,000,000		10,005,000
Ohio Portsmouth Bypass Project (Industrial Development Revenue)		5.00			12-31-2020		1,000,000		1,138,490
Ohio Portsmouth Bypass Project (Industrial Development Revenue)		5.00			12-31-2021		1,205,000		1,390,751

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Ohio (continued)
Ohio Water Development Authority First Energy Nuclear Generation Project (Water & Sewer Revenue) ±		4.00	%		12-1-2033	$	4,000,000	$	4,158,200
Ohio Water Development Authority First Energy Nuclear Generation Project Series A (Water & Sewer Revenue)		3.00			5-15-2019		31,000,000		31,518,010
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		17,950,000		18,505,912
Warren County OH HCFR Otterbein Homes Series A (Health Revenue)		5.00			7-1-2018		2,000,000		2,166,000
Warren County OH HCFR Otterbein Homes Series A (Health Revenue)		5.00			7-1-2019		2,215,000		2,450,410
									203,229,578
Oklahoma: 0.66%
Cleveland County OK Educational Facilities Authority Norman Public Schools Project (Miscellaneous Revenue)		5.00			7-1-2018		2,650,000		2,891,786
Cleveland County OK Educational Facilities Authority Norman Public Schools Project (Miscellaneous Revenue)		5.00			7-1-2019		2,000,000		2,250,940
Cleveland County OK Justice Authority Detention Facility Project (Tax Revenue)		4.00			3-1-2020		500,000		538,165
Creek County OK Educational Facilities Authority Sapulpa Public School Project (Miscellaneous Revenue)		5.00			9-1-2020		2,550,000		2,923,448
Grady County OK School Finance Authority Tuttle Public School Project (Miscellaneous Revenue)		5.00			9-1-2019		1,000,000		1,121,460
Grady County OK School Finance Authority Tuttle Public School Project (Miscellaneous Revenue)		5.00			9-1-2021		1,065,000		1,237,807
Oklahoma City OK Industrial & Cultural Facilities Series B (Health Revenue, National Insured) ±(m)(n)		0.42			6-1-2019		16,250,000		15,681,250
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2018		1,240,000		1,304,319
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2019		3,025,000		3,320,936
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2020		1,000,000		1,117,810
Tulsa OK Airports Improvement Trust Series A (Airport Revenue)		4.00			6-1-2017		2,495,000		2,547,320
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2018		530,000		570,884
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2020		695,000		776,878
Tulsa OK Airports Improvement Trust Series B (Airport Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2018		860,000		904,608
Woodward County OK PFFA Series B (Tax Revenue)		3.25			9-1-2026		2,000,000		2,014,840
									39,202,451
Other: 0.68%
Branch Banking & Trust Municipal Trust Various States Class C (Miscellaneous Revenue, Rabobank LOC) ±144A		0.61			3-1-2016		170,000		170,090
Branch Banking & Trust Municipal Trust Various States Class D (Miscellaneous Revenue, Rabobank LOC) ±		0.76			12-1-2017		12,610,000		12,610,000
FHLMC Multifamily Certificates Series M012 Class A1B (Miscellaneous Revenue)		2.70			8-15-2051		15,000,000		15,200,250
Public Housing Capital Fund Trust I (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		9,256,983		9,681,786
Public Housing Capital Fund Trust II (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		2,789,097		2,895,446
									40,557,572

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

26 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania: 6.73%
Allegheny County PA Airport Authority Pittsburgh International Airport (Airport Revenue, FGIC Insured)		5.00	%		1-1-2017	$	2,500,000	$	2,601,050
Allegheny County PA Hospital Development Authority University of Pittsburgh Medical Center Series A-1 (Health Revenue) ±		0.94			2-1-2021		3,760,000		3,755,563
Allegheny County PA IDA Carnegie Museums of Pittsburgh (Miscellaneous Revenue, Citizens Bank LOC) ±		0.07			8-1-2032		16,250,000		16,250,000
Allegheny County PA Series C-68 (GO Revenue)		5.00			11-1-2017		1,340,000		1,437,177
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		4,300,000		4,380,367
Beaver County PA IDA Pollution Control Series A (Utilities Revenue) ±		2.70			4-1-2035		1,400,000		1,402,100
Delaware County PA Authority Elwyn Project (Housing Revenue)		4.00			6-1-2016		1,650,000		1,671,054
Delaware County PA IDA Resource Recovery Facility Series A (Resource Recovery Revenue)		6.20			7-1-2019		2,010,000		2,017,196
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2018		1,270,000		1,392,504
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue)		5.75			7-1-2017		8,650,000		9,250,829
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Ambac Insured)		5.60			7-1-2017		5,015,000		5,352,158
Erie PA Higher Education Building Authority Mercyhurst College Project (Education Revenue)		5.00			3-15-2018		1,075,000		1,123,321
Hempfield PA School District (GO Revenue) ±		0.52			8-1-2017		3,770,000		3,746,475
Lackawanna County PA Riverside School District Project (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-15-2019		1,400,000		1,526,462
Lackawanna County PA Riverside School District Project (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-15-2020		1,455,000		1,601,737
Manheim Township PA School District Series A (GO Revenue) ±		0.57			5-1-2025		4,700,000		4,653,329
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2017		1,250,000		1,297,188
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2018		1,000,000		1,063,660
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2020		1,315,000		1,447,223
Montgomery County PA IDA Exelon Generation Company LLC (Industrial Development Revenue) ±		2.50			10-1-2030		40,795,000		40,925,136
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50			10-1-2030		30,000,000		30,095,700
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.60			3-1-2034		1,925,000		1,938,225
Nazareth PA Area School District (GO Revenue) ±		0.69			2-1-2031		15,055,000		15,026,546
Northampton County PA General Purpose Hospital Authority St. Luke’s Hospital Project Series C (Health Revenue) ±		4.50			8-15-2032		1,425,000		1,453,286
Penn Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2020		825,000		925,535
Penn Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2021		1,275,000		1,438,034
Pennsylvania EDFA Pennsylvania Rapid Bridge Replacement Project (Industrial Development Revenue)		4.00			6-30-2018		6,675,000		7,052,672
Pennsylvania EDFA Republic Services Incorporated Project Series A (Resource Recovery Revenue) ±		0.65			4-1-2019		6,400,000		6,400,000
Pennsylvania EDFA Solid Waste Disposal Republic Services Incorporated Project (Resource Recovery Revenue) ±		0.60			6-1-2044		79,700,000		79,700,000

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 27

Security name	Interest rate			Maturity date			Principal		Value
Pennsylvania (continued)
Pennsylvania EDFA Waste Management Incorporated Project (Resource Recovery Revenue) ±		0.55	%		8-1-2045		$	15,000,000	$	15,000,000
Pennsylvania HEFAR (Education Revenue) ø		0.53			9-1-2045			12,075,000		12,075,000
Pennsylvania HEFAR Prerefunded Temple University (Education Revenue, National Insured)		5.00			4-1-2020			175,000		177,055
Pennsylvania HEFAR Unrefunded Temple University (Education Revenue, National Insured)		5.00			4-1-2020			595,000		601,973
Pennsylvania HEFAR Foundation Indiana University PA Series A (Education Revenue, Syncora Guarantee Incorporated Insured) ±		0.67			7-1-2017			1,695,000		1,698,526
Pennsylvania Turnpike Commission Series A (Transportation Revenue) ±		0.61			12-1-2017			14,765,000		14,706,826
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		1.16			12-1-2019			18,150,000		18,255,633
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		1.28			12-1-2020			11,300,000		11,383,281
Philadelphia PA Gas Works 10th Series 1998 General Ordinance (Utilities Revenue, AGM Insured)		5.00			7-1-2019			2,500,000		2,807,275
Philadelphia PA Gas Works 17th Series 1975 General Ordinance (Utilities Revenue, AGM Insured)		5.38			7-1-2016	��		5,000,000		5,124,400
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2016			1,500,000		1,523,790
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2018			8,385,000		8,955,180
Philadelphia PA Housing Authority Series A (Housing Revenue, AGM Insured)		5.25			12-1-2017			2,335,000		2,344,527
Philadelphia PA RDA Transformation Initiative (Miscellaneous Revenue)		5.00			4-15-2016			1,370,000		1,387,646
Philadelphia PA RDA Transformation Initiative (Miscellaneous Revenue)		5.00			4-15-2017			1,500,000		1,574,145
Philadelphia PA RDA Transformation Initiative Series B (Miscellaneous Revenue)		5.00			4-15-2019			2,000,000		2,212,800
Philadelphia PA RDA Transformation Initiative Series B (Miscellaneous Revenue)		5.00			4-15-2020			1,870,000		2,107,958
Philadelphia PA School District Refunding Notes Series C (GO Revenue)		5.00			9-1-2019			5,945,000		6,621,303
Philadelphia PA School District Series A (GO Revenue)		4.00			9-1-2017			500,000		522,735
Philadelphia PA School District Series C (GO Revenue)		5.00			9-1-2017			1,500,000		1,592,880
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2018			5,300,000		5,785,374
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2017			1,000,000		1,061,060
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2018			1,000,000		1,091,660
Philadelphia PA Series A (GO Revenue, AGM Insured)		5.00			8-1-2019			4,550,000		4,802,889
Pittsburgh PA Series A (GO Revenue)		4.00			9-1-2016			600,000		613,818
Reading PA Parking Authority CAB (Transportation Revenue, National Insured) ¤		0.00			11-15-2019			1,000,000		904,730
State Public School Building Authority Pennsylvania Philadelphia School District Project (Miscellaneous Revenue)		5.00			4-1-2016			2,855,000		2,883,379
State Public School Building Authority Pennsylvania Philadelphia School District Project (Miscellaneous Revenue)		5.00			4-1-2017			2,685,000		2,795,783
Susquehanna PA Regional Airport Authority Sub Series C (Airport Revenue)		3.00			1-1-2017			1,140,000		1,157,134
Warwick PA School District (GO Revenue)		4.00			2-15-2020			1,000,000		1,102,260
West Mifflin PA School District (GO Revenue, AGM Insured)		3.00			10-1-2016			715,000		725,889
West Mifflin PA School District (GO Revenue, AGM Insured)		3.00			10-1-2017			400,000		410,492
West Mifflin PA School District (GO Revenue, AGM Insured)		4.00			10-1-2017			410,000		427,810
West Mifflin PA School District (GO Revenue, AGM Insured)		5.00			10-1-2018			605,000		657,889
West Mifflin PA School District (GO Revenue, AGM Insured)		5.00			10-1-2019			750,000		831,158
York County PA Refunding Bond (GO Revenue) ±		0.47			6-1-2033			15,130,000		15,067,059
										401,915,844
Puerto Rico: 1.03%
Puerto Rico Commonwealth Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016			3,925,000		3,973,552

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

28 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico (continued)
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50	%		7-1-2016	$	25,890,000	$	26,206,376
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		11,825,000		12,113,648
Puerto Rico Electric Power Authority Refunding Bond Series SS (Utilities Revenue, National Insured)		4.25			7-1-2017		550,000		550,083
Puerto Rico Highway & Transportation Authority Refunding Bond Series AA (Transportation Revenue, National Insured)		5.50			7-1-2017		7,500,000		7,745,100
Puerto Rico Public Buildings Authority Government Facilities Refunding Bond Series F (Miscellaneous Revenue, CIFG Insured)		5.25			7-1-2017		10,200,000		10,036,188
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		5,405,000		864,800
									61,489,747
Rhode Island: 0.42%
Rhode Island Health & Educational Building Corporation Hospital Financing Revenue Refunding Bonds Lifespan Obligated Group Issue Series A (Health Revenue, AGM Insured)		5.00			5-15-2018		4,300,000		4,361,275
Rhode Island Health & Educational Building Corporation Providence College (Education Revenue)		5.00			11-1-2018		265,000		291,712
Rhode Island Health & Educational Building Corporation Providence Public Schools Program Series A (Miscellaneous Revenue)		4.00			5-15-2016		3,015,000		3,049,612
Rhode Island Health & Educational Building Corporation Providence Public Schools Program Series A (Miscellaneous Revenue)		4.00			5-15-2017		1,500,000		1,555,695
Rhode Island Health & Educational Building Corporation Providence Public Schools Program Series A (Miscellaneous Revenue)		5.00			5-15-2019		1,000,000		1,099,320
Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		2.25			6-1-2041		14,830,000		14,810,721
									25,168,335
South Carolina: 0.08%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2016		132,758		131,748
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		179,606		143,663
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		198,490		134,949
Piedmont SC Municipal Power Agency Unrefunded Balance 2004 Series A (Utilities Revenue, FGIC Insured)		6.50			1-1-2016		1,860,000		1,860,000
Scago SC Educational Facilities Corporation Calhoun School District Project (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2021		2,500,000		2,602,000
									4,872,360
Tennessee: 1.43%
Clarksville TN Natural Gas Acquisition Corporation (Utilities Revenue)		5.00			12-15-2016		3,230,000		3,359,491
Clarksville TN Natural Gas Acquisition Corporation (Utilities Revenue)		5.00			12-15-2017		1,330,000		1,423,366
Clarksville TN Water Sewer & Gas Refunding Bond (Water & Sewer Revenue)		4.00			2-1-2017		835,000		863,891
Knox County TN Health Educational & Housing Facilities Board University Health Systems Incorporated (Health Revenue)		5.00			4-1-2019		1,450,000		1,505,680
Memphis-Shelby County TN Airport Authority Series A1 (Airport Revenue)		5.75			7-1-2019		1,500,000		1,708,875
Memphis-Shelby County TN Airport Authority Series B (Airport Revenue)		5.38			7-1-2018		1,000,000		1,095,250
Memphis-Shelby County TN Airport Authority Series B (Airport Revenue)		5.50			7-1-2019		1,505,000		1,701,824

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 29

Security name	Interest rate			Maturity date		Principal		Value
Tennessee (continued)
Memphis-Shelby County TN Nucor Steel Memphis Incorporation (Industrial Development Revenue) ø		0.42	%		9-1-2037	$	10,000,000	$	10,000,000
Nashville TN Davidson County HEFA Vanderbilt University Series B (Education Revenue) ±		0.61			10-1-2038		10,000,000		9,981,100
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.00			9-1-2016		7,330,000		7,535,240
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		5,440,000		5,806,112
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		3,300,000		3,624,060
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2019		6,225,000		6,953,014
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2017		14,000,000		14,584,640
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2018		8,895,000		9,548,249
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2019		5,110,000		5,622,482
									85,313,274
Texas: 13.95%
Central Texas Regional Mobility Authority Senior Lien (Transportation Revenue)		5.75			1-1-2017		500,000		523,905
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2017		1,500,000		1,563,015
Central Texas Regional Mobility Authority Sub Lien (Transportation Revenue)		5.00			1-1-2016		250,000		250,000
Central Texas Regional Mobility Authority Sub Lien (Transportation Revenue)		5.00			1-1-2018		250,000		265,870
Central Texas Regional Mobility Authority Sub Lien (Transportation Revenue)		5.00			1-1-2019		750,000		811,440
Clear Creek TX Independent School District Series B (GO Revenue) ±		3.00			2-15-2032		3,750,000		3,958,013
Clear Creek TX Independent School District (GO Revenue) ±		1.35			2-15-2038		12,000,000		12,035,760
Coastal Bend TX Health Facilities Development Corporation (Health Revenue, AGM Insured) ±(m)		0.42			7-1-2031		6,350,000		6,350,000
Corpus Christi TX Utility System Revenue Junior Lien Series B (Water & Sewer Revenue) ±		2.00			7-15-2045		12,585,000		12,712,360
Cypress Fairbanks TX School District (GO Revenue)		4.25			2-15-2021		2,775,000		2,882,615
Cypress Fairbanks TX School District Series B-1 (GO Revenue) ±		3.00			2-15-2036		10,000,000		10,555,000
Dallas-Fort Worth TX International Airport Facilities Series 2001-A1 (Industrial Development Revenue)		6.15			1-1-2016		3,000,000		3,000,000
Denton TX Independent School District (GO Revenue) ±		2.00			8-1-2042		10,895,000		11,111,702
Denton TX Independent School District Series B (GO Revenue) ±		2.00			8-1-2044		39,075,000		39,865,878
Eagle Mountain & Saginaw TX Independent School District (GO Revenue) ±		2.00			8-1-2050		12,150,000		12,395,916
Fort Bend Independent School District School Building Series B (GO Revenue) ±		2.00			8-1-2040		12,000,000		12,182,880
Georgetown TX Independent School District (GO Revenue) ±		2.00			8-1-2034		4,620,000		4,692,996
Goose Creek TX Consolidated Independent School District (GO Revenue) ±		1.35			2-15-2040		15,160,000		15,197,294
Harlandale TX Independent School District (GO Revenue) ±		2.00			8-15-2045		22,000,000		22,440,220
Harris County TX Health Facilities Development Corporation Series A3 (Health Revenue, AGM Insured) ±(m)		0.46			7-1-2031		19,200,000		19,200,000
Harris County TX Health Facilities Development Corporation Series A4 (Health Revenue, AGM Insured) ±(m)		0.46			7-1-2031		15,900,000		15,900,000
Houston TX Airport System Revenue AMT Series B2 (Airport Revenue)		5.00			7-15-2020		9,500,000		10,200,340
Houston TX Airport System Revenue AMT Series C (Airport Revenue)		5.00			7-15-2020		7,000,000		7,428,260
Houston TX Higher Education Finance Corporation Refunding Bonds Rice University Series B (Education Revenue) ±		0.54			5-15-2048		20,000,000		20,015,200
Houston TX Independent School District Limited Tax (GO Revenue)		4.25			2-15-2021		5,075,000		5,262,115
Houston TX Independent School District School House Series A2R (GO Revenue) ±		4.00			6-1-2039		43,000,000		44,853,300
Houston TX Utility System Revenue Series C (Water & Sewer Revenue) ±		0.61			5-15-2034		90,000,000		89,992,800
Hutto TX Independent School District Series 2015 (GO Revenue) ±		3.00			2-1-2055		23,425,000		24,921,858
Laredo TX Public Property Finance Contractual Obligation (GO Revenue)		3.88			2-15-2018		2,090,000		2,189,923

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

30 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Love Field TX Airport Modernization Corporation Southwest Airlines Company Project (Airport Revenue)		5.00	%		11-1-2016	$	5,000,000	$	5,156,550
Mansfield TX Independent School District (GO Revenue) ±		1.75			8-1-2042		8,455,000		8,550,711
North East TX Independent School District (GO Revenue) ±		2.00			8-1-2044		9,000,000		9,182,160
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		29,470,000		30,056,158
North Texas Health Facilities Development Corporation United Regional Health Care System (Health Revenue, AGM Insured)		5.00			9-1-2017		850,000		902,292
North Texas Higher Education Authority Incorporated Student Loan Series 2 Class A (Education Revenue) ±		1.33			4-1-2037		8,250,000		8,250,908
North Texas Tollway Authority Refunding Bond Series A (Transportation Revenue) ±		0.81			1-1-2050		17,250,000		17,113,725
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2020		1,050,000		1,189,976
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2021		1,860,000		2,147,240
Northside TX Independent School District Building Project (GO Revenue) ±		1.65			8-1-2045		6,250,000		6,315,688
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			8-1-2044		21,195,000		21,623,987
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		2,640,000		2,692,642
Pasadena TX Independent School District Building Project Series B (GO Revenue) ±		3.00			2-15-2044		44,870,000		47,360,285
Pflugerville TX Independent School District Series A (GO Revenue) ±		2.00			8-15-2039		27,700,000		28,262,864
Port Arthur TX Navigation District Environmental Facilities Motiva Enterprises Series 2010 (Resource Recovery Revenue) ø		0.26			4-1-2040		37,600,000		37,600,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.26			12-1-2039		14,700,000		14,700,000
San Antonio TX Electric & Gas Revenue Junior Lien Series A (Utilities Revenue) ±		2.00			12-1-2027		20,320,000		20,684,744
San Antonio TX Electric & Gas Revenue Junior Lien Series B (Utilities Revenue) ±		0.39			2-1-2033		26,700,000		26,576,112
San Antonio TX Electric & Gas Revenue Junior Lien Series B (Utilities Revenue) ±		1.75			12-1-2027		11,000,000		11,092,180
San Antonio TX Electric & Gas Revenue Junior Lien Series C (Utilities Revenue) ±		3.00			12-1-2045		12,000,000		12,714,600
San Antonio TX Electric & Gas Revenue Junior Lien Series D (Utilities Revenue) ±		3.00			12-1-2045		12,000,000		12,797,040
San Antonio TX Energy Acquisition Public Facility Corporation (Utilities Revenue)		5.25			8-1-2018		510,000		558,685
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.26			11-15-2029		1,352,790		1,352,790
Tarrant County TX ECFA Hendrick Medical Center Group (Health Revenue)		5.00			9-1-2019		655,000		727,469
Tarrant County TX ECFA Hendrick Medical Center Group (Health Revenue)		5.00			9-1-2020		920,000		1,043,087
Tarrant County TX ECFA Hendrick Medical Center Group Edgemere Project Series B (Health Revenue)		5.00			11-15-2020		1,045,000		1,157,223
Texas Municipal Gas Acquisition & Supply Corporation II Series A (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.04			9-15-2017		2,735,000		2,735,492
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.48			9-15-2017		26,595,000		26,595,000
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2016		500,000		520,045
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2017		6,450,000		6,922,269
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2018		4,500,000		4,967,415
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2019		7,000,000		7,894,320
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series A (Utilities Revenue)		5.25			12-15-2017		1,745,000		1,875,892
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series B (Utilities Revenue) ±		0.89			12-15-2017		480,000		478,723
Texas PFA Assessment Unemployment Compensation Series B (Miscellaneous Revenue)		4.00			1-1-2018		14,000,000		14,250,880
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2017		4,000,000		4,240,120

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 31

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00	%		11-1-2018	$	3,395,000	$	3,664,970
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2019		2,375,000		2,612,856
Tomball TX Independent School District Series B2 (GO Revenue) ±		3.00			2-15-2039		10,000,000		10,457,300
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		3.00			1-10-2017		405,000		413,448
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2018		640,000		674,093
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2019		1,010,000		1,085,255
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2020		500,000		545,105
									832,500,959
Utah: 0.01%
Utah Charter School Finance Authority Summit Academy Series A (Education Revenue)		5.13			6-15-2017		630,000		644,257
Vermont: 0.39%
Vermont Student Assistance Corporation Education Loan Revenue Series BCL-A1 (Education Revenue) ±		1.92			6-1-2022		23,119,642		23,139,294
Virgin Islands: 0.13%
Virgin Islands PFA Sub Lien Series C (Miscellaneous Revenue)		5.00			10-1-2016		7,500,000		7,679,475
Virginia: 1.29%
Charles City VA EDA Solid Waste Disposal Waste Management Incorporated (Resource Recovery Revenue) ±		1.60			8-1-2027		3,150,000		3,159,954
Gloucester County VA EDA Solid Waste Disposal Revenue Waste Management Services Series A (Resource Recovery Revenue) ±		1.60			9-1-2038		1,500,000		1,504,740
Greater Richmond VA Convention Center Authority Hotel Tax Revenue (Tax Revenue)		5.00			6-15-2019		1,250,000		1,405,525
Greater Richmond VA Convention Center Authority Hotel Tax Revenue (Tax Revenue)		5.00			6-15-2020		1,000,000		1,149,870
Halifax County VA IDA (Utilities Revenue) ±		2.15			12-1-2041		63,000,000		64,527,750
Marquis VA CDA CAB (Tax Revenue) 144A¤		0.00			9-1-2045		680,000		442,020
Marquis VA CDA CAB Series A (Tax Revenue) (i)		5.10			9-1-2036		2,169,000		1,694,249
Marquis VA CDA CAB Series C (Tax Revenue) ¤(i)		0.00			9-1-2041		3,493,000		454,300
Washington VA County IDA Series C (Health Revenue)		7.25			7-1-2019		2,610,000		2,874,080
									77,212,488
Washington: 0.04%
Washington Health Care Facilities Authority Series 2015 (Health Revenue)		5.00			7-1-2020		850,000		952,026
Washington Housing Financing Commission Nonprofit Revenue Wesley Home Series A (Health Revenue, AGC Insured)		5.38			1-1-2017		1,110,000		1,130,746
									2,082,772
West Virginia: 0.05%
West Virginia EDA PCR Appalachian Power Company Series D (Resource Recovery Revenue)		3.25			5-1-2019		2,745,000		2,859,302

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

32 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin: 0.94%
Franklin WI Waste Management Series A (Resource Recovery Revenue) ±		4.95	%		11-1-2016	$	1,800,000	$	1,824,516
Johnson Creek WI School District BAN (Miscellaneous Revenue)		3.00			3-1-2020		2,550,000		2,607,630
Milwaukee WI RDA Public Schools Refunding Bond Series A (Miscellaneous Revenue)		5.00			8-1-2018		4,320,000		4,720,637
Milwaukee WI RDA Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		0.95			12-1-2038		1,545,000		1,545,000
Racine WI Elderly Housing Authority Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		0.95			10-1-2042		2,200,000		2,200,000
Wisconsin Airport Facilities PFA Senior Obligation Group Series B (Airport Revenue)		5.00			7-1-2022		14,590,000		15,502,750
Wisconsin HEFA Ascension Health Alliance Series B (Health Revenue) ±		4.00			11-15-2043		13,000,000		14,152,060
Wisconsin HEFA Mercy Alliance Incorporated Project Series A (Health Revenue)		5.00			6-1-2019		3,145,000		3,281,626
Wisconsin HEFA Ministry Healthcare Series C (Health Revenue)		5.00			8-15-2016		500,000		514,085
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2016		100,000		100,525
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2017		200,000		206,098
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2018		300,000		314,199
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2019		445,000		470,908
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		5.00			3-1-2020		375,000		414,555
Wisconsin HEFA Wheaton Franciscan Healthcare (Health Revenue)		5.25			8-15-2017		8,230,000		8,457,806
									56,312,395
Total Municipal Obligations (Cost $5,803,671,283)									5,823,008,226
Other: 1.29%
Nuveen California AMT-Free Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A§		0.48			7-1-2018		3,000,000		2,975,430
Nuveen Dividend Advantage Municipal Fund 3, Institutional MuniFund Term Preferred Shares ±144A		0.76			10-1-2017		62,000,000		62,281,480
Nuveen Texas Quality Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A		1.01			11-1-2018		12,000,000		12,030,720
Total Other (Cost $77,000,000)									77,287,630
	Yield					Shares
Short-Term Investments: 1.37%
Investment Companies: 1.37%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)##		0.01					81,734,888		81,734,888
Total Short-Term Investments (Cost $81,734,888)									81,734,888

Total investments in securities (Cost $5,962,406,171) *	100.21	%		5,982,030,744
Other assets and liabilities, net	(0.21	)		(12,488,811	)
Total net assets	100.00	%	$	5,969,541,933

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 33

± 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.

¤ 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.

(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.

%% The security is issued on a when-issued basis.

(i) Illiquid security

(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.

(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.

§ The security is subject to a demand feature which reduces the effective maturity.

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $5,962,490,609 and unrealized gains (losses) consists of:

Gross unrealized gains	$	38,269,663
Gross unrealized losses		(18,729,528	)
Net unrealized gains	$	19,540,135

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

34 Wells Fargo Short-Term Municipal Bond Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $5,880,671,283)	$	5,900,295,856
In affiliated securities, at value (cost $81,734,888)		81,734,888
Total investments, at value (cost $5,962,406,171)		5,982,030,744
Cash		3,195
Receivable for investments sold		10,486,265
Receivable for Fund shares sold		16,241,906
Receivable for interest		41,973,209
Prepaid expenses and other assets		254,328
Total assets		6,050,989,647
Liabilities
Dividends payable		1,645,887
Payable for investments purchased		62,564,055
Payable for Fund shares redeemed		14,017,173
Management fee payable		1,358,180
Distribution fee payable		64,983
Administration fees payable		722,189
Accrued expenses and other liabilities		1,075,247
Total liabilities		81,447,714
Total net assets	$	5,969,541,933
NET ASSETS CONSIST OF
Paid-in capital	$	5,949,004,919
Undistributed net investment income		63,847
Accumulated net realized gains on investments		848,594
Net unrealized gains on investments		19,624,573
Total net assets	$	5,969,541,933
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	3,541,262,955
Shares outstanding – Class A1		356,278,086
Net asset value per share – Class A		$9.94
Maximum offering price per share – Class A2		$10.14
Net assets – Class C	$	93,439,346
Shares outstanding – Class C1		9,400,004
Net asset value per share – Class C		$9.94
Net assets – Administrator Class	$	95,790,368
Shares outstanding – Administrator Class1		9,631,010
Net asset value per share – Administrator Class		$9.95
Net assets – Institutional Class	$	2,239,049,264
Shares outstanding – Institutional Class1		224,851,722
Net asset value per share – Institutional Class		$9.96

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/98.00 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 35

Investment income
Interest	$	51,794,141
Income from affiliated securities		1,902
Total investment income		51,796,043
Expenses
Management fee		10,153,505
Administration fees
Class A		2,235,607
Class C		79,072
Administrator Class		124,457
Institutional Class		861,326
Investor Class		952,004	1
Shareholder servicing fees
Class A		3,493,136
Class C		123,550
Administrator Class		272,099
Investor Class		1,250,818	1
Distribution fee
Class C		370,651
Custody and accounting fees		155,394
Professional fees		32,181
Registration fees		95,265
Shareholder report expenses		141,447
Trustees’ fees and expenses		12,273
Other fees and expenses		34,756
Total expenses		20,387,541
Less: Fee waivers and/or expense reimbursements		(2,954,477	)
Net expenses		17,433,064
Net investment income		34,362,979
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		1,645
Futures transactions		954,102
Net realized gains on investments		955,747
Net change in unrealized gains (losses) on investments		10,854,081
Net realized and unrealized gains (losses) on investments		11,809,828
Net increase in net assets resulting from operations	$	46,172,807

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

36 Wells Fargo Short-Term Municipal Bond Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	34,362,979					$	59,559,572
Net realized gains on investments					955,747						4,458,534
Net change in unrealized gains (losses) on investments					10,854,081						(47,490,704	)
Net increase in net assets resulting from operations					46,172,807						16,527,402
Distributions to shareholders from
Net investment income
Class A					(14,495,412	)					(18,228,640	)
Class C					(141,343	)					(168,307	)
Administrator Class					(1,287,473	)					(4,821,365	)
Institutional Class					(13,445,088	)					(19,067,395	)
Investor Class					(4,994,406	)1					(17,268,417	)
Net realized gains
Class A					(2,591,530	)					(1,768,741	)
Class C					(67,566	)					(103,290	)
Administrator Class					(68,933	)					(424,465	)
Institutional Class					(1,635,693	)					(1,497,994	)
Investor Class					0	1					(1,714,158	)
Total distributions to shareholders					(38,727,444	)					(65,062,772	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		180,908,878			1,799,768,681			100,470,523			1,002,622,059
Class C		384,776			3,825,908			652,931			6,524,656
Administrator Class		4,368,864			43,484,928			24,472,555			245,072,969
Institutional Class		85,965,366			855,884,952			146,967,678			1,470,629,417
Investor Class		7,146,734	1		71,071,037	1		43,428,997			434,388,748
					2,774,035,506						3,159,237,849
Reinvestment of distributions
Class A		1,645,036			16,357,440			1,932,583			19,296,238
Class C		18,229			181,243			23,645			236,105
Administrator Class		134,246			1,336,361			494,039			4,945,102
Institutional Class		805,636			8,026,331			1,063,590			10,639,180
Investor Class		384,006	1		3,819,645	1		1,840,275			18,395,287
					29,721,020						53,511,912
Payment for shares redeemed
Class A		(50,791,910	)		(505,043,630	)		(81,006,886	)		(809,103,344	)
Class C		(1,391,774	)		(13,831,583	)		(3,629,431	)		(36,231,608	)
Administrator Class		(46,309,813	)		(461,165,815	)		(29,948,664	)		(300,075,428	)
Institutional Class		(52,520,307	)		(523,051,018	)		(95,400,356	)		(954,344,112	)
Investor Class		(169,667,638	)1		(1,689,668,428	)1		(108,020,090	)		(1,078,832,475	)
					(3,192,760,474	)					(3,178,586,967	)
Net increase (decrease) in net assets resulting from capital share transactions					(389,003,948	)					34,162,794
Total decrease in net assets					(381,558,585	)					(14,372,576	)
Net assets
Beginning of period					6,351,100,518						6,365,473,094
End of period				$	5,969,541,933					$	6,351,100,518
Undistributed net investment income				$	63,847					$	64,590

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

Financial highlights Wells Fargo Short-Term Municipal Bond Fund 37

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.93			$10.00			$9.97			$10.01			$9.94			$9.88
Net investment income		0.05			0.09			0.11			0.11			0.19			0.25
Net realized and unrealized gains (losses) on investments		0.02			(0.06	)		0.05			0.00	1		0.08			0.07
Total from investment operations		0.07			0.03			0.16			0.11			0.27			0.32
Distributions to shareholders from
Net investment income		(0.05	)		(0.09	)		(0.11	)		(0.11	)		(0.19	)		(0.25	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.06	)		(0.10	)		(0.13	)		(0.15	)		(0.20	)		(0.26	)
Net asset value, end of period		$9.94			$9.93			$10.00			$9.97			$10.01			$9.94
Total return2		0.70	%		0.27	%		1.55	%		1.07	%		2.77	%		3.21	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.75	%		0.76	%		0.77	%		0.78	%		0.79	%
Net expenses		0.61	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.04	%		0.89	%		1.08	%		1.10	%		1.91	%		2.48	%
Supplemental data
Portfolio turnover rate		8	%3		24	%3		28	%3		39	%3		72	%		75	%
Net assets, end of period (000s omitted)		$3,541,263			$2,228,977			$2,031,798			$1,620,994			$1,467,816			$1,027,653

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

38 Wells Fargo Short-Term Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.93			$10.00			$9.97			$10.01			$9.94			$9.89
Net investment income		0.01			0.01			0.03			0.04			0.12			0.17
Net realized and unrealized gains (losses) on investments		0.02			(0.06	)		0.05			0.00	1		0.08			0.06
Total from investment operations		0.03			(0.05	)		0.08			0.04			0.20			0.23
Distributions to shareholders from
Net investment income		(0.01	)		(0.01	)		(0.03	)		(0.04	)		(0.12	)		(0.17	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.02	)		(0.02	)		(0.05	)		(0.08	)		(0.13	)		(0.18	)
Net asset value, end of period		$9.94			$9.93			$10.00			$9.97			$10.01			$9.94
Total return2		0.32	%		(0.48	)%		0.79	%		0.32	%		2.01	%		2.34	%
Ratios to average net assets (annualized)
Gross expenses		1.50	%		1.50	%		1.51	%		1.52	%		1.53	%		1.54	%
Net expenses		1.36	%		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
Net investment income		0.29	%		0.14	%		0.34	%		0.37	%		1.18	%		1.74	%
Supplemental data
Portfolio turnover rate		8	%3		24	%3		28	%3		39	%3		72	%		75	%
Net assets, end of period (000s omitted)		$93,439			$103,146			$133,463			$172,364			$211,286			$201,870

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Financial highlights Wells Fargo Short-Term Municipal Bond Fund 39

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2015			2014			2013			2012			20111
Net asset value, beginning of period		$9.95			$10.03			$9.99			$10.03			$9.96			$9.94
Net investment income		0.06			0.09			0.11			0.11			0.19			0.23
Net realized and unrealized gains (losses) on investments		0.01			(0.07	)		0.06			0.00	2		0.08			0.03
Total from investment operations		0.07			0.02			0.17			0.11			0.27			0.26
Distributions to shareholders from
Net investment income		(0.06	)		(0.09	)		(0.11	)		(0.11	)		(0.19	)		(0.23	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.07	)		(0.10	)		(0.13	)		(0.15	)		(0.20	)		(0.24	)
Net asset value, end of period		$9.95			$9.95			$10.03			$9.99			$10.03			$9.96
Total return3		0.62	%		0.17	%		1.65	%		1.07	%		2.77	%		2.58	%
Ratios to average net assets (annualized)
Gross expenses		0.66	%		0.68	%		0.70	%		0.71	%		0.72	%		0.65	%
Net expenses		0.59	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.03	%		0.89	%		1.08	%		1.07	%		1.82	%		2.56	%
Supplemental data
Portfolio turnover rate		8	%4		24	%4		28	%4		39	%4		72	%		75	%
Net assets, end of period (000s omitted)		$95,790			$511,894			$565,737			$547,806			$201,225			$61,238

¹  For the period from July 30, 2010 (commencement of class operations) to June 30, 2011

²  Amount is less than $0.005.

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

⁴  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

40 Wells Fargo Short-Term Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.95			$10.02			$9.99			$10.02			$9.96			$9.90
Net investment income		0.06			0.11			0.13			0.13			0.21			0.27
Net realized and unrealized gains (losses) on investments		0.02			(0.06	)		0.05			0.01			0.07			0.07
Total from investment operations		0.08			0.05			0.18			0.14			0.28			0.34
Distributions to shareholders from
Net investment income		(0.06	)		(0.11	)		(0.13	)		(0.13	)		(0.21	)		(0.27	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.07	)		(0.12	)		(0.15	)		(0.17	)		(0.22	)		(0.28	)
Net asset value, end of period		$9.96			$9.95			$10.02			$9.99			$10.02			$9.96
Total return1		0.80	%		0.47	%		1.75	%		1.37	%		2.88	%		3.41	%
Ratios to average net assets (annualized)
Gross expenses		0.42	%		0.42	%		0.43	%		0.45	%		0.45	%		0.46	%
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Net investment income		1.25	%		1.09	%		1.29	%		1.30	%		2.10	%		2.70	%
Supplemental data
Portfolio turnover rate		8	%2		24	%2		28	%2		39	%2		72	%		75	%
Net assets, end of period (000s omitted)		$2,239,049			$1,895,713			$1,382,576			$1,185,687			$935,583			$703,955

¹  Returns for periods of less than one year are not annualized.

²  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Notes to financial statements (unaudited) Wells Fargo Short-Term Municipal Bond Fund 41

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 Short-Term Municipal Bond Fund (the “Fund”) which is a diversified series of the Trust.

Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

42 Wells Fargo Short-Term Municipal Bond Fund Notes to financial statements (unaudited)

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

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

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 43

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	5,807,807,976	$	15,200,250	$	5,823,008,226
Other		0		77,287,630		0		77,287,630
Short-term investments
Investment companies		81,734,888		0		0		81,734,888
Total assets	$	81,734,888	$	5,885,095,606	$	15,200,250	$	5,982,030,744

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.32% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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 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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.63% for Class A shares, 1.38% for Class C shares, 0.60% for Administrator Class shares, and 0.40% for Institutional Class shares. After this time, the cap may be increased or the

44 Wells Fargo Short-Term Municipal Bond Fund Notes to financial statements (unaudited)

commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prior to November 1, 2015, the Fund’s expenses were capped at 0.60% for Class A shares and 1.35% for Class C 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.

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 six months ended December 31, 2015, Funds Distributor received $3,953 from the sale of Class A shares and $169 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 are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $889,455,298 and $420,616,308, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended December 31, 2015, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

As of December 31, 2015, the Fund did not have any open futures contracts. The Fund had an average notional amount of $16,553,601 in short futures contracts during the six months ended December 31, 2015.

The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the appropriate financial statements.

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $4,560 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

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.

Other information (unaudited) Wells Fargo Short-Term Municipal Bond Fund 45

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 wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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.

46 Wells Fargo Short-Term Municipal 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

Other information (unaudited) Wells Fargo Short-Term Municipal Bond Fund 47

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; Assistant Treasurer, since 2009 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 72 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 wellsfargofunds.com.

48 Wells Fargo Short-Term Municipal 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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398840 02-16 SA256/SAR256 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Strategic Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	25
Statement of operations	26
Statement of changes in net assets	27
Financial highlights	28
Notes to financial statements	33
Other information	38
List of abbreviations	41

The views expressed and any forward-looking statements are as of December 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 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 Strategic Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Strategic Municipal Bond Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases. In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Strategic Municipal Bond Fund 3

In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

Notice to shareholders

Effective December 15, 2015, changes in pricing the Fund lowered the sales charges for some investors in Class A shares of the Fund and reduced the maximum purchase amount for Class C shares of the Fund. Please see the Fund’s current prospectus for additional details.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Strategic Municipal Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from regular federal income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Lyle J. Fitterer, CFA^®, CPA

Robert J. Miller

Average annual total returns (%) as of December 31, 2015¹

		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 (VMPAX)	12-1-1994		(2.48	)		2.37		2.74		1.53		3.21		3.17		0.81		0.81
Class B (VMPIX)*	3-21-1985		(4.33	)		2.05		2.63		0.66		2.42		2.63		1.56		1.56
Class C (DHICX)	8-18-1997		(0.23	)		2.43		2.40		0.77		2.43		2.40		1.56		1.56
Administrator Class (VMPYX)	10-6-1997		–			–		–		1.55		3.33		3.37		0.75		0.68
Institutional Class (STRIX)	11-30-2012		–			–		–		1.87		3.48		3.45		0.48		0.48
Barclays Short-Intermediate Municipal Bond Index4	–		–			–		–		2.20		3.16		3.86		–		–

* 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, wellsfargofunds.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 4.00%. 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. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Strategic Municipal Bond Fund 5

Credit quality as of December 31, 2015⁵

Effective maturity distribution as of December 31, 2015⁶

¹  Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and includes the higher expenses applicable to the Administrator Class shares. If these expenses had not been included, returns would be higher. 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 Strategic Municipal Bond 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 October 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 0.82% for Class A, 1.57% for Class B, 1.57% for Class C, 0.68% for Administrator Class, and 0.48% for Institutional 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-Intermediate Municipal Bond Index is a rules-based, market-value-weighted index composed of publicly traded municipal bonds that cover the U.S. dollar–denominated short-term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, insured bonds, and prefunded bonds. You cannot invest directly in an index.

⁵  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  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 Strategic Municipal 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,019.47	$	4.11		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.06	$	4.12		0.81	%
Class B
Actual	$	1,000.00	$	1,014.54	$	7.90		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.29	$	7.91		1.56	%
Class C
Actual	$	1,000.00	$	1,014.47	$	7.90		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.29	$	7.91		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,018.98	$	3.45		0.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.72	$	3.46		0.68	%
Institutional Class
Actual	$	1,000.00	$	1,021.16	$	2.44		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.72	$	2.44		0.48	%

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 93.69%
Alabama: 0.98%
Alabama Federal Aid Highway Finance Authority Floater Trust (Miscellaneous Revenue, Barclays Bank plc LIQ) 144Aø		0.09	%		9-1-2026	$	8,000,000	$	8,000,000
Chatom AL Industrial Development Board Solid Waste Disposal (Utilities Revenue)		4.00			8-1-2016		1,875,000		1,908,319
Jefferson County AL Warrants Series A (GO Revenue)		4.90			4-1-2021		6,260,000		6,676,040
									16,584,359
Alaska: 0.45%
Alaska Industrial Development and Export Authority Power Revenue Refunding Bonds Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2022		1,200,000		1,339,968
Alaska Industrial Development and Export Authority Power Revenue Refunding Bonds Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2023		1,545,000		1,737,754
Valdez AK Marine Terminal BP Pipelines Project Series 2003B (Industrial Development Revenue)		5.00			1-1-2021		4,000,000		4,570,320
									7,648,042
Arizona: 2.05%
Arizona Navajo Tribal Utility Authority (Miscellaneous Revenue, Municipal Government Guaranty Insured)		4.00			1-1-2021		3,711,000		3,795,833
Arizona Sports & Tourism Authority Multipurpose Stadium Facility Project Series A (Tax Revenue)		4.00			7-1-2017		900,000		936,396
Florence AZ IDA Legacy Traditional School Project (Education Revenue)		4.00			7-1-2018		310,000		314,052
Navajo Nation Arizona Series A (Miscellaneous Revenue) 144A		4.00			12-1-2022		6,345,000		6,548,103
Phoenix AZ IDA Basis Schools Projects Series A (Education Revenue) 144A%%		3.00			7-1-2020		1,300,000		1,309,802
Phoenix AZ IDA Great Hearts Academies Project (Education Revenue)		5.20			7-1-2022		735,000		772,162
Phoenix AZ IDA Guam Facilities Foundation Incorporated Project Series 2014 (Industrial Development Revenue)		3.00			2-1-2016		425,000		425,242
Phoenix AZ IDA Guam Facilities Foundation Incorporated Project Series 2014 (Industrial Development Revenue)		5.00			2-1-2017		2,845,000		2,921,730
Phoenix AZ IDA Guam Facilities Foundation Incorporated Project Series 2014 (Industrial Development Revenue)		5.00			2-1-2018		1,795,000		1,868,416
Phoenix AZ IDA Legacy Traditional School Project Series 2015 (Education Revenue) 144A		3.00			7-1-2020		590,000		582,330
Phoenix AZ IDA Legacy Traditional School Project Series A (Education Revenue) 144A		5.75			7-1-2024		1,400,000		1,516,312
Pima County AZ IDA American Leadership Academy Project Series 2015 (Education Revenue) 144A		4.60			6-15-2025		1,530,000		1,532,999
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		1,000,000		988,630
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		3,000,000		2,954,370
Pima County AZ IDA Noah Webster Schools Project Series A (Education Revenue)		5.50			12-15-2023		1,070,000		1,167,006
Pima County AZ Industrial Development Revenue Charter School (Education Revenue)		4.00			7-1-2016		395,000		397,121
Pima County AZ Industrial Development Revenue Charter School (Education Revenue)		4.00			7-1-2017		1,130,000		1,147,289
Salt Verde AZ Financial Corporation Project (Utilities Revenue)		5.25			12-1-2020		1,565,000		1,798,858
Tempe AZ IDA Friendship Village Series A (Health Revenue)		4.00			12-1-2017		220,000		226,426
Tempe AZ IDA Friendship Village Series A (Health Revenue)		5.00			12-1-2018		800,000		855,208
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		4.25			7-15-2019		1,320,000		1,361,540
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		5.00			7-15-2020		700,000		746,732
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		5.00			7-15-2021		500,000		537,460
									34,704,017

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

8 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Arkansas: 0.01%
Fort Smith AR Sales & Use Tax Improvement Bonds (Tax Revenue)		2.38	%		5-1-2027	$	125,000	$	125,110
California: 5.62%
Alameda CA Corridor Transportation Authority CAB Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2017		2,085,000		2,036,461
California Bay Area Toll Authority Toll Bridge Revenue Series E-3 (Transportation Revenue) ±		0.71			4-1-2047		11,600,000		11,610,440
California CDA Tender Option Bond Trust Receipts Series ZF0199 (Health Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.21			10-1-2020		6,050,000		6,050,000
California Golden State Tobacco Securitization Series 2954 (Tobacco Revenue, Morgan Stanley Bank LIQ) 144Aø		0.56			6-1-2047		25,000,000		25,000,000
California Infrastructure & Economic Development Bank Colburn School Series B (Education Revenue) ±		1.21			8-1-2037		6,325,000		6,323,861
California Infrastructure & Economic Development Bank Museum Art Project Series A (Miscellaneous Revenue) ±		2.05			12-1-2037		3,000,000		3,080,580
California PCFA Refunding Bond Pacific Gas & Electric Company Series D (Industrial Development Revenue, FGIC Insured)		4.75			12-1-2023		1,515,000		1,579,084
California Public Works Board Lease Community College Project Series B (Miscellaneous Revenue, Ambac Insured)		5.63			3-1-2016		100,000		100,422
California Public Works Board Lease Revenue Bond California State University Project Series C (Miscellaneous Revenue, National Insured)		5.38			10-1-2016		500,000		502,130
California Public Works Board Lease Revenue Bond California State University Project Series C (Miscellaneous Revenue, National Insured)		5.40			10-1-2022		700,000		702,947
California Refunding Bond Series B (GO Revenue) ±		0.91			5-1-2018		3,000,000		3,023,490
California Statewide CDA Revenue Eskaton Properties Incorporated (Health Revenue)		5.00			11-15-2017		1,130,000		1,195,563
California Statewide CDA Revenue Eskaton Properties Incorporated (Health Revenue)		5.00			11-15-2018		1,060,000		1,146,146
California Student Education Loan Marketing Corporation Series IV-D1 (Education Revenue)		5.88			1-1-2018		2,370,000		2,364,502
California Various Purpose Bonds (Miscellaneous Revenue)		6.25			10-1-2019		15,000		15,228
Delhi CA Unified School District CAB (GO Revenue, Ambac Insured) ¤		0.00			8-1-2019		1,975,000		1,736,420
Grossmont CA Union High School District Series 2015 (GO Revenue, Citibank NA LIQ) 144Aø		0.16			2-1-2017		7,525,000		7,525,000
Inland Valley CA Development Agency Series C (Tax Revenue) ±		4.50			3-1-2041		4,300,000		4,330,358
Los Angeles County CA Schools Regionalized Business Services CAB Series A (Miscellaneous Revenue, Ambac Insured) ¤		0.00			8-1-2016		1,945,000		1,931,910
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		0.94			7-1-2027		11,805,000		11,031,654
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.25			12-1-2017		1,455,000		1,541,136
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.75			12-1-2018		2,110,000		2,313,742
									95,141,074
Colorado: 0.51%
Colorado ECFA Rocky Mountain Classical Academy Project (Education Revenue)		6.38			9-1-2023		2,115,000		2,177,350
Colorado Health Facilities Authority Revenue Prerefunded Evangelical (Health Revenue)		5.25			6-1-2024		2,400,000		2,448,480
Colorado Health Facilities Authority Revenue Unrefunded Balance (Health Revenue)		5.25			6-1-2024		980,000		994,288
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		2,900,000		2,983,491
									8,603,609

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Connecticut: 2.69%
Connecticut Economic Recovery Notes Series A-2 (GO Revenue) ø		0.13	%		1-1-2017	$	2,000,000	$	2,000,000
Connecticut Economic Recovery Notes Series A-4 (GO Revenue) ø		0.27			1-1-2018		13,000,000		13,000,000
Connecticut HEFA Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2017		1,070,000		1,132,081
Connecticut HEFA Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2020		500,000		574,355
Connecticut Series A (Miscellaneous Revenue) ±		0.76			3-1-2021		4,450,000		4,403,097
Connecticut Series A (Miscellaneous Revenue) ±		0.89			4-15-2018		5,000,000		5,000,300
Connecticut Series A (Miscellaneous Revenue) ±		0.93			5-15-2018		2,000,000		2,009,940
Connecticut Series A (Miscellaneous Revenue) ±		1.26			4-15-2020		7,000,000		7,069,650
Connecticut Series A (Miscellaneous Revenue) ø		1.36			3-1-2019		4,050,000		4,050,000
Connecticut Series D (GO Revenue) ±		0.78			9-15-2018		1,000,000		997,690
Connecticut Series D (GO Revenue) ±		0.93			9-15-2019		3,345,000		3,339,615
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2019		1,835,000		2,033,877
									45,610,605
Delaware: 0.12%
Delaware EDA Odyssey Charter School Project Series A (Education Revenue) 144A		6.25			9-1-2025		2,035,000		2,044,646
District of Columbia: 1.09%
District of Columbia American College of Cardiology (Education Revenue, SunTrust Bank LOC) ø		0.09			6-1-2040		6,500,000		6,500,000
District of Columbia Childrens Research Center (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.09			4-1-2038		5,735,000		5,735,000
District of Columbia Thomas B. Fordham Foundation (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.09			10-1-2037		6,300,000		6,300,000
									18,535,000
Florida: 5.33%
Brevard County FL Space Coast Infrastructure Agency I-95 Project (Industrial Development Revenue)		4.00			6-15-2018		5,000,000		5,294,550
Florida Cityplace Community Development District Special Assessment Revenue (Miscellaneous Revenue)		5.00			5-1-2017		500,000		520,865
Florida Cityplace Community Development District Special Assessment Revenue (Miscellaneous Revenue)		5.00			5-1-2018		1,375,000		1,462,395
Florida Mid-Bay Bridge Authority Series B (Transportation Revenue)		5.00			10-1-2016		2,000,000		2,066,800
Florida Village Community Development District #10 Special Assignment (Miscellaneous Revenue)		5.13			5-1-2024		4,250,000		4,813,465
Lakeland FL Hospital System Lakeland Regional Health System (Health Revenue)		5.00			11-15-2022		4,495,000		5,225,707
Manatee County FL HFA SFHR Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		6.57			5-1-2039		15,000		15,763
Miami FL Special Obligation (Miscellaneous Revenue, AGM Insured)		5.00			2-1-2017		1,000,000		1,044,570
Miami-Dade County FL IDA Youth Charter Schools Project Series 2015A (Education Revenue) 144A		5.00			9-15-2025		1,000,000		1,015,300
Miami-Dade County FL School Board Certificate of Participation Series 3 (Miscellaneous Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) 144Aø		0.46			9-25-2024		6,895,000		6,895,000
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		0.40			9-25-2024		6,865,000		6,865,000
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2037		5,000,000		5,000,000

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

10 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Miami-Dade County FL School Board Certificate of Participation Series A (Miscellaneous Revenue) ±		5.00	%		8-1-2021	$	4,310,000	$	4,367,366
Orange County FL IDA Various Central Florida Kidney Centers (Industrial Development Revenue, SunTrust Bank LOC) ø		0.09			12-1-2020		3,250,000		3,250,000
Orange County FL Tourist Development Tax (Miscellaneous Revenue, Ambac/MBIA Insured)		6.00			10-1-2016		85,000		87,007
Palm Beach County FL PFOTER Series 4615 (Miscellaneous Revenue, Dexia Credit Local LIQ) ø		0.28			8-1-2029		35,545,000		35,545,000
Sumter County FL Village Community Development District #5 Special Assessment Revenue Bond Phase I (Miscellaneous Revenue)		3.00			5-1-2016		770,000		774,019
Sumter County FL Village Community Development District #5 Special Assessment Revenue Bond Phase I (Miscellaneous Revenue)		3.00			5-1-2017		550,000		559,966
Sumter County FL Village Community Development District #5 Special Assessment Revenue Bond Phase I (Miscellaneous Revenue)		3.00			5-1-2018		570,000		585,287
Sumter County FL Village Community Development District #5 Special Assessment Revenue Bond Phase II (Miscellaneous Revenue)		3.00			5-1-2017		785,000		799,224
Sumter County FL Village Community Development District #5 Special Assessment Revenue Bond Phase II (Miscellaneous Revenue)		3.00			5-1-2018		810,000		831,724
Volusia County FL School Board (Tax Revenue, AGM Insured)		5.00			10-1-2016		3,055,000		3,136,232
									90,155,240
Georgia: 1.71%
Atlanta GA Water & Wastewater Project Series A-1 (Water & Sewer Revenue) ±		1.78			11-1-2038		5,000,000		5,125,650
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project (Utilities Revenue) ±		1.75			12-1-2049		2,000,000		2,018,780
Burke County GA Development Authority Oglethorpe Power Corporation Vogtle Project Series A (Utilities Revenue) ±		2.40			1-1-2040		5,720,000		5,813,179
Cherokee County GA Water & Sewage Authority (Water & Sewer Revenue, National Insured)		6.90			8-1-2018		5,000		5,027
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		6,000,000		6,074,160
Gainesville & Hall County GA Hospital Authority Health System Project Series B (Health Revenue) ±		0.96			8-15-2035		6,000,000		5,946,060
Georgia Municipal Electric Authority Class A (Utilities Revenue, National Insured, Societe Generale LIQ) 144Aø		0.16			1-1-2018		1,020,000		1,020,000
Georgia Private Colleges & Universities Authority (Education Revenue)		5.00			10-1-2019		1,325,000		1,484,437
Georgia Road & Tollway Authority I-75 S Express Lanes Project Series A (Transportation Revenue) 144A¤		0.00			6-1-2024		2,500,000		1,543,800
									29,031,093
Guam: 0.14%
Guam Government Waterworks Authority Water & Wastewater System Series 2010 (Water & Sewer Revenue)		4.00			7-1-2016		1,255,000		1,273,599
Guam Government Waterworks Authority Water & Wastewater System Series 2014A (Water & Sewer Revenue)		5.00			7-1-2020		1,000,000		1,120,720
									2,394,319
Hawaii: 0.67%
Hawaii Department of Budget and Finance Queens Health System Series B (Health Revenue) ø		0.25			7-1-2039		11,270,000		11,270,000

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Illinois: 16.88%
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00	%		12-1-2021	$	10,255,000	$	7,946,702
Chicago IL Board of Education Dedicated Series C2 (GO Revenue) ±		1.11			3-1-2032		9,900,000		9,526,671
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.01			3-1-2032		7,000,000		6,994,960
Chicago IL Board of Education School Reform Board Series A (GO Revenue, National Insured)		5.25			12-1-2020		1,000,000		1,077,920
Chicago IL Board of Education Series A3 (GO Revenue) ±		0.84			3-1-2036		17,200,000		15,748,492
Chicago IL CAB City Colleges Series 1999 (GO Revenue, National Insured) ¤		0.00			1-1-2024		9,975,000		6,857,214
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2021		1,450,000		1,544,178
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2022		1,810,000		1,936,573
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2023		1,700,000		1,815,736
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2024		2,460,000		2,621,794
Chicago IL O’Hare International Airport Senior Lien Bonds Series 2015 B (Airport Revenue)		5.00			1-1-2021		4,000,000		4,632,240
Chicago IL O’Hare International Airport Senior Lien Bonds Series 2015 C (Airport Revenue)		5.00			1-1-2022		695,000		803,399
Chicago IL O’Hare International Airport Senior Lien Bonds Series 2015 D (Airport Revenue)		5.00			1-1-2021		500,000		579,030
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue)		5.25			1-1-2023		3,500,000		3,500,000
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.25			1-1-2023		1,350,000		1,588,950
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.25			1-1-2024		1,415,000		1,648,645
Chicago IL Park District Harbor Facilities Series D (GO Revenue)		5.00			1-1-2022		1,500,000		1,690,815
Chicago IL Park District Harbor Facilities Series D (GO Revenue)		5.00			1-1-2023		1,175,000		1,334,295
Chicago IL Park District Limited Tax Series B (GO Revenue)		5.00			1-1-2022		4,495,000		5,066,809
Chicago IL Refunding Bonds Series A (GO Revenue, AGM Insured)		5.00			1-1-2024		2,625,000		2,651,618
Chicago IL Refunding Bonds Series C (GO Revenue)		5.00			1-1-2021		2,030,000		2,157,078
Chicago IL Series A (GO Revenue)		4.00			1-1-2019		1,310,000		1,332,244
Chicago IL Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2025		5,000,000		5,133,050
Chicago IL Series A (Tax Revenue)		5.00			1-1-2029		5,000,000		5,233,950
Chicago IL Series A (GO Revenue)		5.25			1-1-2022		2,235,000		2,312,555
Chicago IL Series C (GO Revenue, National Insured)		5.00			1-1-2029		10,365,000		10,640,605
Chicago IL Series D (GO Revenue, Ambac Insured)		5.00			12-1-2022		3,915,000		3,988,015
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		1,140,000		1,161,683
Chicago IL Tax Increment Allocation Notes Series A (Tax Revenue, Bank of New York Mellon LOC) ø		0.60			1-1-2019		4,150,000		4,150,000
Chicago IL Tax Increment Bond Pilson Redevelopment Project Series A (Tax Revenue)		5.00			6-1-2022		1,635,000		1,849,005
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5307-A (Transportation Revenue, AGC Insured)		5.25			6-1-2022		2,100,000		2,239,251
Chicago IL Transit Authority Capital Grant Receipts Refunding Bond Series 2011 (Miscellaneous Revenue, AGM Insured)		5.25			6-1-2024		4,450,000		4,995,703
Chicago IL Transit Authority Sales Tax Receipts Series 2011 (Tax Revenue)		5.25			12-1-2036		2,925,000		3,191,438
Chicago IL Waterworks Revenue Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2021		1,000,000		1,028,240
Chicago lL Series A (Tax Revenue)		5.00			1-1-2022		3,000,000		3,231,630
Cook & DuPage Counties IL Combined School District #113A CAB (GO Revenue, National Insured) ¤		0.00			12-1-2019		875,000		765,380
Cook County IL Refunding Bonds Series 2010 G (GO Revenue)		5.00			11-15-2026		1,000,000		1,083,220
Cook County IL School District #123 Oak Lawn CAB (GO Revenue, National Insured) ¤		0.00			12-1-2021		1,090,000		907,065
Cook County IL Series A (GO Revenue, Ambac Insured)		5.00			11-15-2024		805,000		815,344
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		10,040,000		11,189,078

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

12 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Cook County IL Series A (GO Revenue)		5.25	%		11-15-2022	$	1,000,000	$	1,130,920
Cook County IL Series C (GO Revenue, National Insured)		5.00			11-15-2020		1,150,000		1,199,657
Cook County IL Series C (GO Revenue, National Insured)		5.00			11-15-2021		5,000,000		5,226,150
DeWitt & Ford Counties IL Community College District #540 (GO Revenue, AGM Insured)		5.00			12-1-2021		5,920,000		6,328,598
DuPage County IL Forest Preservation District Series 2015 (GO Revenue)		5.00			1-1-2023		2,455,000		2,964,142
Huntley IL Special Service Area #6 (Tax Revenue, AGC Insured)		4.60			3-1-2017		485,000		491,562
Illinois (GO Revenue)		5.00			1-1-2017		1,250,000		1,293,775
Illinois (GO Revenue)		5.00			1-1-2025		5,025,000		5,053,894
Illinois (GO Revenue)		5.00			9-1-2016		1,400,000		1,404,326
Illinois (Miscellaneous Revenue)		5.00			8-1-2021		5,620,000		6,158,227
Illinois (Miscellaneous Revenue)		5.00			7-1-2022		1,900,000		2,093,458
Illinois (Miscellaneous Revenue, AGM Insured)		5.00			7-1-2023		4,875,000		5,571,394
Illinois Board of Trustees of the University of Illinois Utility Infrastructure Projects Series 2004 (Education Revenue, BMO Harris Bank NA SPA) ø		0.24			8-15-2021		15,000,000		15,000,000
Illinois Finance Authority Proctor Hospital Project Series A (Health Revenue)		5.13			1-1-2025		4,685,000		4,702,475
Illinois Municipal Electric Agency Power Series A (Utilities Revenue, National Insured)		5.25			2-1-2021		3,840,000		4,030,618
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2018		4,600,000		4,840,488
Illinois Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2020		5,050,000		5,618,882
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2020		5,000,000		5,460,950
Illinois Series A (GO Revenue)		5.00			4-1-2020		2,000,000		2,175,080
Illinois Series A (GO Revenue)		5.00			4-1-2023		3,500,000		3,865,925
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2022		3,005,000		2,391,890
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2023		18,805,000		14,113,905
Kane Cook & DuPage Counties IL School District #46 Prerefunded CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2021		455,000		420,984
Kane Cook & DuPage Counties IL School District #46 Unrefunded CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2021		595,000		524,457
Kane County IL Aurora West School District #129 (GO Revenue, AGM Insured)		5.00			2-1-2022		6,290,000		7,300,677
Kendall Kane & Will Counties IL Community Unit School District Series C (GO Revenue, AGM Insured) ¤		0.00			10-1-2017		1,350,000		1,316,169
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2017		1,610,000		1,558,045
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2018		1,000,000		927,650
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		1,100,000		974,336
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2018		4,000,000		3,905,440
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, AGM/FGIC Insured) ¤		0.00			1-1-2019		1,185,000		1,135,408
Metropolitan Pier & Exposition Authority Illinois McCormick Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2022		1,200,000		948,876
Metropolitan Pier & Exposition Authority Illinois McCormick Series B (Tax Revenue)		5.00			12-15-2022		1,100,000		1,148,246
Romeoville IL Series B (GO Revenue, AGC Insured) ¤		0.00			12-30-2023		3,410,000		2,363,096
Romeoville IL Series B (GO Revenue, AGC Insured) ¤		0.00			12-30-2024		2,840,000		1,862,387
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2021		7,410,000		7,779,314
St. Clair County IL School District Series B (GO Revenue, National Insured)		4.75			1-1-2018		655,000		685,798
Will County IL School District #114 CAB Series C (GO Revenue, National Insured) ¤		0.00			12-1-2021		855,000		700,040

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Winnebago & Boone Counties IL School District #205 Series A (GO Revenue) ¤		0.00	%		2-1-2021	$	1,305,000	$	1,142,580
Winnebago & Boone Counties IL School District #205 Series B (GO Revenue) ¤		0.00			2-1-2021		3,400,000		2,976,836
									285,757,230
Indiana: 2.56%
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		16,205,000		16,839,102
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.75			11-15-2031		11,000,000		11,026,730
Indiana HFFA Ancilla System Incorporated (Health Revenue, National Insured)		5.25			7-1-2022		325,000		326,388
Knox County IN EDA Good Samaritan Hospital Series A (Health Revenue)		4.00			4-1-2017		625,000		642,337
Knox County IN EDA Good Samaritan Hospital Series A (Health Revenue)		4.00			4-1-2018		400,000		417,464
Whiting IN BP Products North America Incorporated Project (Resource Recovery Revenue)		0.76			12-1-2044		11,400,000		11,189,556
Whiting IN BP Products North America Incorporated Project (Industrial Development Revenue) ±		1.85			6-1-2044		2,950,000		2,966,078
									43,407,655
Iowa: 0.17%
Iowa Student Loan Liquidity Corporation Series A1 (Education Revenue)		3.88			12-1-2016		2,120,000		2,157,291
Iowa Student Loan Liquidity Corporation Series A1 (Education Revenue)		4.13			12-1-2017		670,000		694,448
									2,851,739
Kansas: 0.89%
Wyandotte County & Kansas City KS Sales Tax Special Obligation Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00			9-1-2034		49,000,000		15,071,910
Kentucky: 1.20%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		1.76			2-1-2040		7,650,000		7,658,032
Christian County KY Jennie Stuart Medical Center (Health Revenue, AGC Insured)		5.25			2-1-2018		1,520,000		1,567,789
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		2.75			11-15-2018		300,000		300,738
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		3.00			11-15-2019		350,000		351,138
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		3.35			11-15-2020		335,000		336,698
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		5.00			11-15-2025		1,500,000		1,539,915
Kentucky EDFA Masonic Homes of Kentucky (Health Revenue)		4.00			11-15-2016		740,000		749,946
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, National Insured) ¤		0.00			10-1-2022		1,000,000		827,770
Kentucky Municipal Power Agency Prairie State Project Series B (Utilities Revenue) ±		1.41			9-1-2042		6,500,000		6,497,140
Pikeville KY Hospital Pikeville Medical Center (Health Revenue)		5.00			3-1-2016		500,000		503,400
									20,332,566
Louisiana: 1.56%
Louisiana Tobacco Settlement Financing Corporation Revenue Bonds Series A (Tobacco Revenue)		5.00			5-15-2024		7,500,000		7,516,800

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

14 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Louisiana (continued)
Louisiana Tobacco Settlement Financing Corporation Revenue Bonds Series A (Tobacco Revenue)		5.00	%		5-15-2025	$	7,500,000	$	7,575,600
St. Bernard Parish LA Series 2012 (Tax Revenue)		4.00			3-1-2019		3,355,000		3,594,379
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø		0.33			11-1-2040		7,250,000		7,250,000
Terrebonne Parish LA Hospital Service District #1 (Health Revenue)		4.00			4-1-2016		500,000		503,530
									26,440,309
Maryland: 1.24%
Baltimore MD Series A (Water & Sewer Revenue, National Insured)		5.65			7-1-2020		5,000,000		5,440,250
Baltimore MD Series D (Water & Sewer Revenue)		5.00			7-1-2025		5,795,000		7,177,455
Howard County MD Housing Commission Series A (Housing Revenue) ±		1.26			7-1-2034		6,625,000		6,611,551
Prince Georges County MD Chesapeake Lighthouse Charter School Project Series 2015 (Education Revenue) 144A		5.25			8-1-2022		1,790,000		1,795,835
									21,025,091
Massachusetts: 0.82%
Massachusetts Development Finance Agency Sabis International Charter School Series 2015 (Education Revenue)		5.00			4-15-2025		1,000,000		1,142,740
Massachusetts Educational Financing Authority Series J (Education Revenue)		5.00			7-1-2018		750,000		801,570
Massachusetts Educational Financing Authority Series J (Education Revenue)		5.00			7-1-2019		6,000,000		6,522,840
Massachusetts HEFA Midford Regional Medical Center Series E (Health Revenue)		5.00			7-15-2022		2,250,000		2,356,560
Massachusetts Various Consolidated Loans Series D (Tax Revenue) ±		0.44			1-1-2018		3,000,000		2,986,770
									13,810,480
Michigan: 5.14%
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2021		1,405,000		1,675,013
Clarkston MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		5,000,000		5,938,350
Constantine MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		350,000		400,886
Constantine MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,200,000		1,403,100
Detroit MI Distribution of State Aid (GO Revenue)		4.50			11-1-2023		975,000		1,053,595
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2016		1,395,000		1,358,130
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2017		3,015,000		2,780,162
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2017		1,245,000		1,247,490
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2018		3,425,000		3,430,411
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2020		1,600,000		1,832,624
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2021		1,600,000		1,870,800
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,000,000		1,169,250
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		610,000		724,479
Grand Haven MI Electric System Series 2003 (Utilities Revenue, National Insured)		5.50			7-1-2016		1,000,000		1,018,490
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,465,000		1,712,951
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		1,475,000		1,751,813
Ingham County MI Williamston Community Schools Series A (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2024		1,025,000		1,126,772

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Ingham County MI Williamston Community Schools Series A (GO Revenue, Qualified School Board Loan Fund Insured)		4.00	%		5-1-2025	$	1,000,000	$	1,099,400
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.88			10-1-2023		2,500,000		2,646,800
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.40			10-1-2020		500,000		513,690
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.60			10-1-2021		500,000		518,935
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.80			10-1-2022		500,000		526,450
Michigan Finance Authority Healthcare Equipment Loan Program Bonds Series C (Health Revenue, Fifth Third Bank LOC) ø		0.10			12-1-2032		1,750,000		1,750,000
Michigan Finance Authority Limited Obligation Cesar Chavez Academy Project (Education Revenue)		4.25			2-1-2017		345,000		345,604
Michigan Finance Authority Refunding Notes Local Government Loan Program Series C (Miscellaneous Revenue)		5.00			11-1-2020		1,500,000		1,646,955
Michigan Finance Authority Series 25-A (Education Revenue)		5.00			11-1-2018		3,100,000		3,347,070
Michigan Finance Authority Series 25-A (Education Revenue)		5.00			11-1-2019		1,500,000		1,652,355
Michigan Finance Authority Series H-1 (Tax Revenue)		5.00			10-1-2021		1,565,000		1,787,371
Michigan Finance Authority St. John Health System Series A (Health Revenue, Ambac Insured)		5.00			5-15-2018		300,000		301,206
Michigan Financial Authority Local Government Loan Program Series C7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2022		2,000,000		2,315,840
Michigan Financial Authority Local Government Loan Program Series D1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2022		2,700,000		3,169,908
Michigan Financial Authority Local Government Loan Program Series D1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2023		2,000,000		2,375,400
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2021		6,355,000		7,284,546
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2022		2,080,000		2,408,474
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2023		3,670,000		4,292,652
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2024		2,130,000		2,510,524
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2019		500,000		505,335
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2018		595,000		599,492
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.13			5-1-2020		500,000		505,615
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2023		1,900,000		1,934,238
Michigan Public Educational Facilities Authority Chandler Park Academy (Miscellaneous Revenue)		6.35			11-1-2028		1,500,000		1,502,535
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		7,500,000		7,662,000
Southfield MI Public Schools (GO Revenue, National/Qualified School Board Loan Fund Insured)		4.38			5-1-2025		1,950,000		2,021,702
Wayne County MI Airport Authority AMT Detroit Metropolitan Airport Series C (Airport Revenue)		5.00			12-1-2022		1,000,000		1,128,500
Wayne County MI Building Authority Capital Improvement Series A (GO Revenue, National Insured)		5.25			6-1-2016		190,000		190,722
									87,037,635

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

16 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Minnesota: 0.53%
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75	%		11-1-2017	$	5,000,000	$	5,017,850
Rice County MN Educational Facilities Shattuck-St. Mary’s School Project (Education Revenue) 144A		5.00			8-1-2022		3,250,000		3,375,353
St. Paul MN Housing & RDA Charter School Hmong College Prep Academy Series A (Miscellaneous Revenue)		4.75			9-1-2022		500,000		526,285
									8,919,488
Mississippi: 1.27%
Mississippi HFFA Baptist Health System Series A (Health Revenue) ±		1.31			8-15-2036		5,000,000		4,954,050
Perry County MS PCR Leaf River Forest Product Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.28			2-1-2022		16,600,000		16,600,000
									21,554,050
Nevada: 0.15%
Carson City NV Carson Tahoe Regional Medical Center (Health Revenue)		4.00			9-1-2016		400,000		406,948
Carson City NV Carson Tahoe Regional Medical Center (Health Revenue)		5.00			9-1-2018		700,000		754,873
Las Vegas NV Special Improvement District #60 (Miscellaneous Revenue)		3.00			6-1-2017		700,000		703,276
Las Vegas NV Special Improvement District #60 (Miscellaneous Revenue)		4.00			6-1-2018		690,000		707,581
									2,572,678
New Hampshire: 0.03%
New Hampshire HEFA Covenant Health Project Series B (Health Revenue)		5.00			7-1-2016		520,000		529,771
New Jersey: 4.15%
Delaware River NJ Port Authority Pennsylvania & New Jersey Port District Project (Airport Revenue)		5.00			1-1-2017		2,100,000		2,191,119
Delaware River NJ Port Authority Pennsylvania & New Jersey Port District Project (Airport Revenue)		5.00			1-1-2018		1,230,000		1,320,897
Hudson County NJ Qualified General and Water Improvements Series 2012A and 2012B (GO Revenue, AGM Insured)		4.00			9-1-2018		1,140,000		1,217,281
New Jersey EDA Elite Pharmaceuticals Project Series A (Industrial Development Revenue)		6.50			9-1-2030		465,000		400,105
New Jersey EDA School Facilities Construction Project Prerefunded Bond Series EE (Miscellaneous Revenue)		5.50			9-1-2021		2,025,000		2,436,318
New Jersey EDA School Facilities Construction Project Series C (Miscellaneous Revenue) ±		1.81			2-1-2018		6,500,000		6,462,430
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.56			9-1-2027		12,500,000		11,068,625
New Jersey EDA School Facilities Construction Project Series K (Miscellaneous Revenue, Ambac Insured)		5.25			12-15-2020		3,000,000		3,343,020
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2024		1,645,000		1,885,203
New Jersey EDA School Facilities Construction Project Unrefunded Bond Series EE (Miscellaneous Revenue)		5.50			9-1-2021		750,000		836,932
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			7-1-2020		500,000		567,010
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			1-1-2021		585,000		662,746
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			7-1-2021		900,000		1,030,878

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00	%		1-1-2023	$	400,000	$	458,736
New Jersey TTFA Series AA (Transportation Revenue)		5.00			6-15-2023		4,665,000		5,175,864
New Jersey TTFA Series B (Transportation Revenue)		5.00			6-15-2020		2,000,000		2,177,420
New Jersey TTFA Series D (Transportation Revenue)		5.00			12-15-2023		6,960,000		7,733,326
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2026		17,000,000		10,243,860
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		1,900,000		2,102,407
New Jersey TTFA Series AA (Transportation Revenue)		2.50			6-15-2018		2,150,000		2,151,419
New Jersey TTFA Series AA (Transportation Revenue)		4.00			6-15-2018		2,900,000		3,004,922
Newark NJ Housing Authority (Miscellaneous Revenue, National Insured)		5.25			1-1-2019		2,995,000		3,305,611
Paterson NJ General Improvement (GO Revenue, AGM Insured)		5.00			6-15-2020		400,000		440,368
									70,216,497
New Mexico: 1.08%
Dona Ana County NM Tax Revenue Receipts (Tax Revenue, Ambac Insured)		5.50			6-1-2016		1,000,000		1,014,260
New Mexico Educational Assistance Foundation Series A2 (Education Revenue) ±		1.06			12-1-2028		260,000		258,726
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		0.91			11-1-2039		17,100,000		16,959,780
									18,232,766
New York: 7.91%
Build New York City Resource Corporation Bronx Charter School for International Cultures & Arts Series A (Education Revenue)		3.88			4-15-2023		1,000,000		993,340
Deutsche Bank SPEAR/LIFER Trust Series DBE 1088 (GO Revenue, HUD Insured, Deutsche Bank LIQ) 144Aø		0.68			9-1-2029		8,255,000		8,255,000
East Rochester NY Housing Authority Home Good Sheperd Project Series A (Housing Revenue, Citizens Bank LOC) ø		0.28			12-1-2036		2,655,000		2,655,000
Monroe County NY GO Refunding Bonds Series 2012 (GO Revenue)		5.00			3-1-2016		225,000		226,478
Monroe County NY Industrial Development Corporation Unity Hospital Rochester Project (Health Revenue, FHA Insured)		4.20			8-15-2025		7,195,000		7,205,145
New York Dormitory Authority Series B (Tax Revenue)		5.00			2-15-2025		12,580,000		15,650,275
New York IDA American Airlines JFK International Airport (Industrial Development Revenue)		7.50			8-1-2016		840,000		859,690
New York Local Government Assistance Corporation Series A9V (Tax Revenue, AGM Insured) ±(m)(n)		0.48			4-1-2017		2,475,000		2,465,719
New York Metropolitan Transportation Authority Dedicated Tax Fund (Tax Revenue) ±		0.96			11-1-2019		7,500,000		7,540,875
New York NY City Housing Authority Lease Purchase Agreement (Housing Revenue) (i)(a)		4.78			1-6-2016		76,819		76,819
New York NY Industrial Development Agency Congregation Machine Chaim Incorporated (Miscellaneous Revenue, Santander Bank NA LOC) ø		0.28			5-1-2036		6,255,000		6,255,000
New York NY John F. Kennedy International Airport Project Series B (Industrial Development Revenue) ±		2.00			8-1-2028		2,800,000		2,805,404
New York NY Series A-6 (GO Revenue, AGM Insured, Dexia Credit Local SPA) ø		0.24			11-1-2026		7,500,000		7,500,000
New York NY Series J-4 (GO Revenue) ±		0.56			8-1-2025		6,700,000		6,700,201
New York NY Transitional Finance Authority Sub Series 2-B (Tax Revenue, Dexia Credit Local SPA) ø		0.24			11-1-2022		12,850,000		12,850,000
New York NY Transitional Finance Authority Sub Series A3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24			8-1-2023		9,950,000		9,950,000
New York NY Transitional Finance Authority Sub Series C3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24			8-1-2031		10,000,000		10,000,000

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

18 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		5.00	%		6-1-2022	$	3,000,000	$	3,176,940
New York Tobacco Settlement Financing Corporation Series B (Tobacco Revenue)		5.00			6-1-2021		9,500,000		10,060,310
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		13,975,000		13,974,860
Niagara NY Area Development Corporation (Education Revenue)		4.00			5-1-2016		600,000		605,856
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2017		250,000		260,907
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2018		500,000		535,165
Suffolk County NY Economic Development Corporation (Health Revenue)		5.00			7-1-2017		1,000,000		1,058,320
Suffolk County NY Tobacco Asset Securitization Corporation (Tobacco Revenue)		5.00			6-1-2019		575,000		638,595
Suffolk County NY Tobacco Asset Securitization Corporation (Tobacco Revenue)		5.00			6-1-2020		625,000		708,781
Ulster County NY Resource Recovery Agency (Resource Recovery Revenue)		3.00			3-1-2017		900,000		919,206
									133,927,886
North Carolina: 0.38%
North Carolina Capital Finance Republic Services Incorporated Project Series 2013 (Resource Recovery Revenue) ø		0.62			6-1-2038		6,500,000		6,500,000
North Dakota: 0.09%
Ward County ND Health Care Facility Trinity Obligated Group Series B (Health Revenue)		6.25			7-1-2021		1,255,000		1,260,371
Williston ND Parks & Recreation District Sales Tax & Gross Revenue Series A (Tax Revenue)		3.00			3-1-2016		205,000		205,797
									1,466,168
Ohio: 1.86%
Akron OH Sanitary Sewer System Improvement Project (Water & Sewer Revenue, Ambac Insured)		5.00			12-1-2017		750,000		801,067
Cleveland OH Airport System Series C (Airport Revenue, AGM Insured)		5.00			1-1-2020		1,000,000		1,038,680
Cleveland OH Airport System Series C (Airport Revenue, AGM Insured)		5.00			1-1-2022		5,000,000		5,186,800
Ohio Air Quality Development Authority PCR Facilities Refunding Bond FirstEnergy Generation Project (Resource Recovery Revenue) ±		3.10			3-1-2023		2,000,000		2,013,180
Ohio Portsmouth Bypass Project (Industrial Development Revenue)		5.00			6-30-2022		2,190,000		2,532,341
Ohio Portsmouth Bypass Project (Industrial Development Revenue)		5.00			12-31-2022		1,000,000		1,162,420
Ohio Portsmouth Bypass Project (Industrial Development Revenue)		5.00			12-31-2023		1,295,000		1,513,091
Ohio University Hospitals Health Systems Series B (Health Revenue) ø		0.35			1-15-2033		5,000,000		5,000,000
Ohio Water Development Authority First Energy Nuclear Generation Project Series A (Water & Sewer Revenue)		3.00			5-15-2019		7,000,000		7,116,970
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		5,000,000		5,154,850
									31,519,399
Oklahoma: 0.17%
Comanche County OK Hospital Authority Series A (Health Revenue)		5.00			7-1-2018		795,000		835,569
Woodward County OK PFFA Series B (Tax Revenue)		3.25			9-1-2026		2,000,000		2,014,840
									2,850,409
Oregon: 0.18%
Polk County OR Hospital Facility Authority Dallas Retirement Village Project Series A (Health Revenue)		3.63			7-1-2020		3,000,000		3,004,380

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Other: 0.12%
Public Housing Capital Fund Trust II (Miscellaneous Revenue, HUD Insured) 144A		4.50	%		7-1-2022	$	2,028,434	$	2,105,779
Pennsylvania: 4.66%
Allegheny County PA Penn Hills School District Series 2015 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2023		1,025,000		1,177,448
Allegheny County PA Penn Hills Schools District Series 2015 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2022		340,000		387,029
Allegheny County PA RDA Pittsburgh Mills Project (Tax Revenue)		5.60			7-1-2023		1,385,000		1,397,285
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		2,000,000		2,037,380
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.51			11-1-2039		8,750,000		8,820,437
Delaware County PA IDA Chester Community Charter School (Education Revenue)		4.50			8-15-2017		2,035,000		2,061,923
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue)		5.75			7-1-2017		1,191,000		1,273,727
Montgomery County PA HEFAR Arcadia University (Education Revenue) %%		5.00			4-1-2022		1,575,000		1,794,287
Montgomery County PA HEFAR Arcadia University (Education Revenue) %%		5.00			4-1-2023		1,655,000		1,905,799
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.60			3-1-2034		7,500,000		7,551,525
Montgomery County PA IDA Peco Energy Company Project Series B (Industrial Development Revenue) ±		2.55			6-1-2029		10,340,000		10,395,836
Pennsylvania HEFAR Shippensburg University Student Services (Education Revenue)		4.00			10-1-2017		550,000		569,486
Pennsylvania Public School Building Authority Albert Gallatin Area School District Project (Miscellaneous Revenue) ±		0.96			9-1-2024		4,155,000		4,179,473
Pennsylvania Public School Building Authority Series 11396 (Miscellaneous Revenue, AGM Insured, Citibank NA LIQ) 144Aø		0.21			12-1-2023		2,500,000		2,500,000
Pennsylvania Turnpike Commission Series A (Transportation Revenue) ±		0.69			12-1-2018		11,150,000		11,074,403
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		1.28			12-1-2020		10,000,000		10,073,700
Philadelphia PA Authority for Industrial Development Tacony Academy Christian School Project Series A-1 (Education Revenue)		6.25			6-15-2023		730,000		815,520
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2017		1,500,000		1,567,530
Susquehanna PA Area Regional Airport Authority System Series A (Airport Revenue)		5.00			1-1-2019		3,630,000		3,942,253
Susquehanna PA Area Regional Airport Authority System Series A (Airport Revenue)		5.00			1-1-2020		4,855,000		5,347,346
									78,872,387
Puerto Rico: 1.56%
Puerto Rico Aqueduct & Sewer Authority Series A (Water & Sewer Revenue, AGC Insured)		5.00			7-1-2016		5,190,000		5,271,794
Puerto Rico CAB Refunding Bonds (Miscellaneous Revenue, National Insured) ¤		0.00			7-1-2016		400,000		392,368
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		1,000,000		1,024,410
Puerto Rico Electric Power Authority Refunding Bond Series UU (Utilities Revenue, AGM Insured)		5.00			7-1-2016		1,015,000		1,029,819
Puerto Rico Electric Power Authority Series L (Utilities Revenue, National Insured)		5.50			7-1-2016		2,740,000		2,773,483
Puerto Rico Highway & Transportation Authority Series A (Tax Revenue, Ambac Insured) ¤		0.00			7-1-2017		1,890,000		1,735,682
Puerto Rico Highway & Transportation Revenue Series BB (Transportation Revenue, Ambac Insured)		5.25			7-1-2017		3,185,000		3,232,743
Puerto Rico Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2019		1,840,000		1,881,437
Puerto Rico Municipal Finance Authority Series C (Miscellaneous Revenue, AGM Insured)		5.25			8-1-2017		300,000		310,494

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

20 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico (continued)
Puerto Rico Municipal Finance Authority Series C (Tobacco Revenue, BHAC/FGIC Insured)		5.50	%		7-1-2020	$	7,050,000	$	8,108,558
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		2,800,000		448,000
Puerto Rico Series PA-650 (Tax Revenue, National Insured)		6.00			7-1-2016		225,000		228,337
									26,437,125
Rhode Island: 0.65%
Providence RI RDA Series A (Miscellaneous Revenue)		5.00			4-1-2022		1,940,000		2,216,566
Providence RI RDA Series A (Miscellaneous Revenue)		5.00			4-1-2023		1,585,000		1,822,148
Rhode Island Clean Water Finance Agency Cranston Wastewater Treatment System (Miscellaneous Revenue, National Insured)		5.80			9-1-2022		975,000		976,697
Rhode Island Health & Educational Building Corporation (Miscellaneous Revenue, AGM Insured)		5.00			5-15-2018		2,180,000		2,217,736
Rhode Island Housing & Mortgage Finance (Housing Revenue)		6.50			4-1-2027		15,000		15,156
Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		2.25			6-1-2041		3,710,000		3,705,177
									10,953,480
South Carolina: 0.64%
South Carolina EDA York Preparatory Academy Project Series A (Education Revenue)		5.75			11-1-2023		985,000		1,035,580
South Carolina Jobs EDA Brashier Charter LLC Project (Education Revenue, SunTrust Bank LOC) ø		0.09			12-1-2038		7,030,000		7,030,000
South Carolina Jobs EDA Ebenezer Nursing Series A (Health Revenue, GNMA Insured)		6.90			1-20-2037		2,840,000		2,855,620
									10,921,200
South Dakota: 0.06%
South Dakota HEFA (Health Revenue)		4.50			9-1-2019		990,000		1,064,201
Tennessee: 0.91%
Clarksville TN Natural Gas Acquisition Corporation Gas Revenue Bonds (Utilities Revenue)		5.00			12-15-2021		2,380,000		2,750,042
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		1,655,000		1,766,382
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		4,000,000		4,392,800
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2020		4,720,000		5,395,574
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2017		1,010,000		1,052,178
									15,356,976
Texas: 8.97%
Austin TX Airport Systems Revenue Bond (Airport Revenue)		5.00			11-15-2026		1,655,000		1,956,723
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2021		1,000,000		1,143,350
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2023		500,000		584,185
Clifton TX Higher Education Finance Corporation International Leadership Series 2015A (Education Revenue)		4.63			8-15-2025		8,905,000		9,095,478
Clifton TX Higher Education Finance Corporation Uplift Education Series A (Education Revenue)		4.00			12-1-2025		3,740,000		3,960,585
Coastal Water Authority Texas Conveyance System (Water & Sewer Revenue, FGIC Insured)		7.50			12-15-2016		20,000		20,123

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Dallas TX Independent School District Tax Refunding Bonds (GO Revenue)		5.00	%		2-15-2025	$	5,000,000	$	6,256,250
Dallas-Fort Worth TX International Airport Facilities Series 2001-A1 (Industrial Development Revenue)		6.15			1-1-2016		3,000,000		3,000,000
Deutsche Bank SPEAR/LIFER Trust Series DB-327 (Tax Revenue, Ambac Insured, Deutsche Bank LIQ) 144Aø		0.21			9-1-2033		7,656,000		7,656,000
Galveston TX Wharves & Terminal Revenue (Airport Revenue)		5.00			2-1-2017		1,100,000		1,141,800
Guadalupe County TX City of Seguin Board of Managers Hospital Mortgage Revenue Refunding and Improvement Bonds Series 2015 (Health Revenue)		5.00			12-1-2016		1,000,000		1,031,550
Guadalupe County TX City of Seguin Board of Managers Hospital Mortgage Revenue Refunding and Improvement Bonds Series 2015 (Health Revenue)		5.00			12-1-2017		725,000		766,107
Houston TX Airport System Revenue AMT Series B2 (Airport Revenue)		5.00			7-15-2020		2,500,000		2,684,300
Houston TX Airport System Revenue AMT Series C (Airport Revenue)		5.00			7-15-2020		1,750,000		1,857,065
Houston TX Independent School District Series B (GO Revenue) ±		1.70			6-1-2036		14,000,000		14,111,440
Houston TX Midtown RDA Series 2011 (Tax Revenue)		4.00			1-1-2016		1,980,000		1,980,000
Houston TX Midtown RDA Series 2011 (Tax Revenue)		5.00			1-1-2017		2,270,000		2,356,419
Hunt TX Memorial Hospital Series 1998 (Health Revenue, AGM Insured, JPMorgan Chase & Company SPA) ø		0.27			8-15-2017		2,725,000		2,725,000
Lewisville TX Independent School District Series B (GO Revenue)		5.00			8-15-2024		5,290,000		6,408,359
Newark TX Higher Educational Finance Corporation Charter Schools Incorporated Series 2015 A (Education Revenue) 144A		4.63			8-15-2025		1,485,000		1,503,934
North Texas Higher Education Authority Incorporated Student Loan Series 2 Class A (Education Revenue) ±		1.33			4-1-2037		2,400,000		2,400,264
Pearland TX Permanent Improvement Series 2015 (GO Revenue)		5.00			3-1-2021		1,000,000		1,170,780
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Industrial Development Revenue) ø		0.27			4-1-2040		5,300,000		5,300,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Industrial Development Revenue) ø		0.26			11-1-2040		8,000,000		8,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Industrial Development Revenue) ø		0.27			11-1-2040		10,000,000		10,000,000
Sam Rayburn TX Municipal Power Agency Bonds Series 2012 (Utilities Revenue)		5.00			10-1-2017		560,000		597,335
Tender Option Bond Trust Receipts Floaters Series 2015 (Transportation Revenue, Barclays Bank plc LIQ) 144Aø		0.29			7-1-2021		10,500,000		10,500,000
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.48			9-15-2017		4,465,000		4,465,000
Texas Municipal Gas Acquisition & Supply Corporation III Gas Supply Revenue Series 2012 (Utilities Revenue)		5.00			12-15-2021		3,000,000		3,486,450
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2020		185,000		193,453
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2021		310,000		325,252
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2022		430,000		449,578
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		5.00			4-1-2025		480,000		532,046
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2020		1,715,000		1,912,276
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2021		1,275,000		1,440,304
Texas Transportation Commission State Highway Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.23			4-1-2026		15,000,000		15,000,000
Weslaco TX Health Facilities Development Various Refunding & Improvement Knapp Medical Center Series A (Health Revenue, Compass Bank LOC) ø		0.25			6-1-2038		6,100,000		6,100,000

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

22 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Weslaco TX Health Facilities Development Various Refunding & Improvement Knapp Medical Center Series B (Health Revenue, Compass Bank LOC) ø		0.25	%		6-1-2031	$	7,135,000	$	7,135,000
Wood Glen TX Housing Finance Corporation Mortgage Copperwood Project Series A (Miscellaneous Revenue, National/FHA Insured)		7.65			7-1-2022		2,125,000		2,585,466
									151,831,872
Vermont: 1.27%
Vermont Student Assistance Corporation Education Loan Revenue Series A (Education Revenue)		5.00			6-15-2021		1,800,000		2,034,576
Vermont Student Assistance Corporation Education Loan Revenue Series A (Education Revenue)		5.00			6-15-2022		550,000		627,820
Vermont Student Assistance Corporation Education Loan Revenue Series A (Education Revenue)		5.00			6-15-2023		1,200,000		1,382,712
Vermont Student Assistance Corporation Education Loan Revenue Series BCL-A1 (Education Revenue) ±		1.92			6-1-2022		4,623,929		4,627,859
Vermont Student Assistance Corporation Education Loan Revenue Series Class B (Education Revenue) ±		1.24			6-2-2042		12,639,320		12,781,512
									21,454,479
Virgin Islands: 0.10%
Virgin Islands PFA Sub Lien Series C (Miscellaneous Revenue)		5.00			10-1-2017		1,600,000		1,678,976
Virginia: 1.40%
Caroline County VA Industrial Development Revenue Public Facility Lease BAN (Miscellaneous Revenue)		4.00			8-1-2016		1,800,000		1,803,348
Dulles VA Town Center CDA (Miscellaneous Revenue)		3.00			3-1-2016		620,000		620,533
Dulles VA Town Center CDA (Miscellaneous Revenue)		4.00			3-1-2017		1,910,000		1,940,254
Louisa VA Electric and Power IDA Series 2008B (Utilities Revenue) ±		2.15			11-1-2035		19,000,000		19,409,070
									23,773,205
Washington: 1.49%
King County WA Public Hospital District #1 Valley Medical Center Series A (Health Revenue)		4.00			6-15-2016		1,480,000		1,490,538
Redmond WA Library Capital Facilities Area (GO Revenue)		5.00			12-1-2017		200,000		200,812
Washington HCFR Catholic Health Initiatives Series B (Health Revenue) ±		1.41			1-1-2035		15,000,000		14,863,500
Washington Housing Finance Commission Nonprofit Housing Revenue Bonds Heron’s Key Senior Living Series B3 (Health Revenue) 144A		4.38			1-1-2021		1,625,000		1,650,220
Washington Housing Finance Commission Wesley Homes (Health Revenue, AGC Insured)		5.63			1-1-2022		6,545,000		6,978,606
									25,183,676
Wisconsin: 1.19%
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2019		3,800,000		4,265,994
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		4.75			8-1-2023		1,140,000		1,241,289
Pine Lake WI PFA Preparatory Series 2015 (Education Revenue) 144A		4.35			3-1-2025		2,710,000		2,715,556
Wisconsin HEFA Bellin Memorial Hospital Series 2015 (Health Revenue)		3.00			12-1-2020		720,000		755,237
Wisconsin HEFA Bellin Memorial Hospital Series 2015 (Health Revenue)		5.00			12-1-2022		755,000		890,908
Wisconsin HEFA Wheaton Franciscan Healthcare Series A (Health Revenue)		5.25			8-15-2034		10,000,000		10,252,100
									20,121,084

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Wyoming: 1.04%
Lincoln County WY PCR Refunding PacifiCorp Project Series 1994 (Industrial Development Revenue) ø		0.22	%		11-1-2024	$	7,530,000	$	7,530,000
Sweetwater County WY PCR Refunding PacifiCorp Project Series A (Industrial Development Revenue) ø		0.22			1-1-2017		10,000,000		10,000,000
									17,530,000
Total Municipal Obligations (Cost $1,568,475,512)									1,586,159,661
						Shares
Exchange-Traded Funds: 2.86%
Exchange Traded Fund: 2.86%
iShares iBoxx $ High Yield Corporate Bond ETF							600,000		48,348,000
Total Exchange-Traded Funds (Cost $48,748,240)									48,348,000
	Yield
Short-Term Investments: 2.72%
Investment Companies: 2.68%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class ##(l)(u)		0.01					45,438,303		45,438,303
						Principal
U.S. Treasury Securities: 0.04%
U.S. Treasury Bill #(z)		0.10			3-17-2016	$	625,000		624,873
Total Short-Term Investments (Cost $46,063,011)									46,063,176

Total investments in securities (Cost $1,663,286,763) *	97.27	%		1,680,570,837
Other assets and liabilities, net	0.73			12,352,718
Total net assets	100.00	%	$	1,692,923,555

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

24 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

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.

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.

%% The security is issued on a when-issued basis.

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

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

(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.

(i) Illiquid security

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(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 segregated for when-issued securities.

(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 $1,663,286,760 and unrealized gains (losses) consists of:

Gross unrealized gains	$	22,824,376
Gross unrealized losses		(5,540,299	)
Net unrealized gains	$	17,284,077

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

Statement of assets and liabilities—December 31, 2015 (unaudited) Wells Fargo Strategic Municipal Bond Fund 25

Assets
Investments
In unaffiliated securities, at value (cost $1,617,848,460)	$	1,635,132,534
In affiliated securities, at value (cost $45,438,303)		45,438,303
Total investments, at value (cost $1,663,286,763)		1,680,570,837
Receivable for investments sold		2,707,000
Receivable for Fund shares sold		10,785,582
Receivable for interest		12,594,971
Prepaid expenses and other assets		141,069
Total assets		1,706,799,459
Liabilities
Dividends payable		506,328
Payable for investments purchased		5,013,243
Payable for Fund shares redeemed		7,122,223
Payable for daily variation margin on open futures contracts		59,375
Management fee payable		540,194
Distribution fees payable		107,694
Administration fees payable		188,822
Accrued expenses and other liabilities		338,025
Total liabilities		13,875,904
Total net assets	$	1,692,923,555
NET ASSETS CONSIST OF
Paid-in capital	$	1,673,904,111
Undistributed net investment income		8,402
Accumulated net realized gains on investments		1,549,223
Net unrealized gains on investments		17,461,819
Total net assets	$	1,692,923,555
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	639,449,761
Shares outstanding – Class A1		71,230,448
Net asset value per share – Class A		$8.98
Maximum offering price per share – Class A2		$9.35
Net assets – Class B	$	951,532
Shares outstanding – Class B1		106,263
Net asset value per share – Class B		$8.95
Net assets – Class C	$	154,717,543
Shares outstanding – Class C1		17,174,111
Net asset value per share – Class C		$9.01
Net assets – Administrator Class	$	478,541,891
Shares outstanding – Administrator Class1		53,321,926
Net asset value per share – Administrator Class		$8.97
Net assets – Institutional Class	$	419,262,828
Shares outstanding – Institutional Class1		46,710,966
Net asset value per share – Institutional Class		$8.98

¹ The Fund has an unlimited number of authorized shares.

² Maximum offering price is computed as 100/96.00 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.

26 Wells Fargo Strategic Municipal Bond Fund Statement of operations—six months ended December 31, 2015 (unaudited)

Investment income
Interest	$	19,220,741
Dividends		333,919
Income from affiliated securities		1,191
Total investment income		19,555,851
Expenses
Management fee		3,095,435
Administration fees
Class A		510,587
Class B		782
Class C		124,270
Administrator Class		248,608
Institutional Class		147,028
Shareholder servicing fees
Class A		797,792
Class B		1,221
Class C		194,172
Administrator Class		620,945
Distribution fees
Class B		3,663
Class C		582,515
Custody and accounting fees		50,883
Professional fees		31,945
Registration fees		79,705
Shareholder report expenses		22,030
Trustees’ fees and expenses		4,073
Other fees and expenses		10,250
Total expenses		6,525,904
Less: Fee waivers and/or expense reimbursements		(165,958	)
Net expenses		6,359,946
Net investment income		13,195,905
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		2,792,333
Futures transactions		419,329
Net realized gains on investments		3,211,662
Net change in unrealized gains (losses) on:
Unaffiliated securities		13,900,939
Futures transactions		177,745
Net change in unrealized gains (losses) on investments		14,078,684
Net realized and unrealized gains (losses) on investments		17,290,346
Net increase in net assets resulting from operations	$	30,486,251

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

Statement of changes in net assets Wells Fargo Strategic Municipal Bond Fund 27

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	13,195,905					$	18,254,823
Net realized gains on investments					3,211,662						6,401,428
Net change in unrealized gains (losses) on investments					14,078,684						(15,967,757	)
Net increase in net assets resulting from operations					30,486,251						8,688,494
Distributions to shareholders from
Net investment income
Class A					(4,908,149	)					(7,013,266	)
Class B					(3,848	)					(5,108	)
Class C					(611,901	)					(618,851	)
Administrator Class					(4,132,314	)					(7,224,681	)
Institutional Class					(3,443,525	)					(3,392,920	)
Net realized gains
Class A					(1,603,578	)					(5,154,519	)
Class B					(2,508	)					(10,851	)
Class C					(403,600	)					(1,307,185	)
Administrator Class					(1,254,440	)					(4,674,679	)
Institutional Class					(1,022,196	)					(2,007,331	)
Total distributions to shareholders					(17,386,059	)					(31,409,391	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		10,528,673			94,246,483			29,777,905			268,139,655
Class B		11			94			464			4,204
Class C		1,742,161			15,654,083			4,088,660			36,992,480
Administrator Class		9,600,183			85,802,302			36,226,756			326,687,608
Institutional Class		18,218,825			162,933,198			40,415,312			364,245,212
					358,636,160						996,069,159
Reinvestment of distributions
Class A		667,641			5,980,495			1,269,048			11,415,209
Class B		672			6,009			1,639			14,702
Class C		94,131			846,292			176,306			1,591,626
Administrator Class		576,313			5,160,028			1,252,089			11,262,338
Institutional Class		341,450			3,058,353			418,251			3,760,225
					15,051,177						28,044,100
Payment for shares redeemed
Class A		(11,343,928	)		(101,466,519	)		(32,374,935	)		(291,426,105	)
Class B		(5,347	)		(47,596	)		(59,588	)		(535,517	)
Class C		(1,771,108	)		(15,889,563	)		(3,311,728	)		(29,908,893	)
Administrator Class		(16,386,362	)		(146,252,115	)		(35,139,053	)		(316,470,287	)
Institutional Class		(7,714,663	)		(68,944,519	)		(8,239,599	)		(74,013,710	)
					(332,600,312	)					(712,354,512	)
Net increase in net assets resulting from capital share transactions					41,087,025						311,758,747
Total increase in net assets					54,187,217						289,037,850
Net assets
Beginning of period					1,638,736,338						1,349,698,488
End of period				$	1,692,923,555					$	1,638,736,338
Undistributed (overdistributed) net investment income				$	8,402					$	(87,766	)

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

28 Wells Fargo Strategic Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended May 31, 20112
CLASS A				2015			2014			2013			2012			20111
Net asset value, beginning of period		$8.90			$9.03			$8.87			$8.94			$8.77			$8.75			$8.67
Net investment income		0.07			0.10			0.17			0.13			0.21			0.02			0.26
Net realized and unrealized gains (losses) on investments		0.10			(0.05	)		0.21			0.01			0.18			0.02			0.08
Total from investment operations		0.17			0.05			0.38			0.14			0.39			0.04			0.34
Distributions to shareholders from
Net investment income		(0.07	)		(0.10	)		(0.17	)		(0.13	)		(0.21	)		(0.02	)		(0.26	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)		0.00			0.00
Total distributions to shareholders		(0.09	)		(0.18	)		(0.22	)		(0.21	)		(0.22	)		(0.02	)		(0.26	)
Net asset value, end of period		$8.98			$8.90			$9.03			$8.87			$8.94			$8.77			$8.75
Total return3		1.95	%		0.56	%		4.41	%		1.59	%		4.48	%		0.49	%		4.01	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.81	%		0.83	%		0.82	%		0.83	%		0.83	%		0.88	%
Net expenses		0.81	%		0.81	%		0.82	%		0.82	%		0.83	%		0.83	%		0.87	%
Net investment income		1.55	%		1.16	%		1.91	%		1.49	%		2.31	%		3.15	%		3.02	%
Supplemental data
Portfolio turnover rate		23	%		39	%		51	%		49	%		74	%		12	%		130	%
Net assets, end of period (000s omitted)		$639,450			$635,610			$656,256			$609,303			$549,357			$353,518			$330,896

¹  For the one month ended June 30, 2011. The Fund changed its fiscal year end from May 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Strategic Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class A of Evergreen Strategic Municipal Bond Fund.

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

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

Financial highlights Wells Fargo Strategic Municipal Bond Fund 29

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended May 31, 20112
CLASS B				2015			2014			2013			2012			20111
Net asset value, beginning of period		$8.88			$9.00			$8.85			$8.92			$8.75			$8.73			$8.65
Net investment income		0.04	3		0.04	3		0.10	3		0.07	3		0.15	3		0.02	3		0.19	3
Net realized and unrealized gains (losses) on investments		0.09			(0.04	)		0.20			0.01			0.17			0.02			0.09
Total from investment operations		0.13			(0.00	)		0.30			0.08			0.32			0.04			0.28
Distributions to shareholders from
Net investment income		(0.04	)		(0.04	)		(0.10	)		(0.07	)		(0.14	)		(0.02	)		(0.20	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)		0.00			0.00
Total distributions to shareholders		(0.06	)		(0.12	)		(0.15	)		(0.15	)		(0.15	)		(0.02	)		(0.20	)
Net asset value, end of period		$8.95			$8.88			$9.00			$8.85			$8.92			$8.75			$8.73
Total return4		1.45	%		(0.08	)%		3.53	%		0.83	%		3.71	%		0.43	%		3.23	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.56	%		1.58	%		1.57	%		1.58	%		1.58	%		1.64	%
Net expenses		1.56	%		1.56	%		1.57	%		1.57	%		1.58	%		1.58	%		1.63	%
Net investment income		0.80	%		0.40	%		1.17	%		0.77	%		1.69	%		2.40	%		2.20	%
Supplemental data
Portfolio turnover rate		23	%		39	%		51	%		49	%		74	%		12	%		130	%
Net assets, end of period (000s omitted)		$952			$985			$1,516			$2,128			$3,738			$6,741			$7,531

¹  For the one month ended June 30, 2011. The Fund changed its fiscal year end from May 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Strategic Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class B of Evergreen Strategic Municipal Bond Fund.

³  Calculated based upon average shares outstanding

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

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

30 Wells Fargo Strategic Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended May 31, 20112
CLASS C				2015			2014			2013			2012			20111
Net asset value, beginning of period		$8.94			$9.06			$8.90			$8.97			$8.80			$8.78			$8.70
Net investment income		0.04			0.04			0.10			0.07			0.14			0.02			0.20
Net realized and unrealized gains (losses) on investments		0.09			(0.04	)		0.21			0.01			0.18			0.02			0.08
Total from investment operations		0.13			0.00			0.31			0.08			0.32			0.04			0.28
Distributions to shareholders from
Net investment income		(0.04	)		(0.04	)		(0.10	)		(0.07	)		(0.14	)		(0.02	)		(0.20	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)		0.00			0.00
Total distributions to shareholders		(0.06	)		(0.12	)		(0.15	)		(0.15	)		(0.15	)		(0.02	)		(0.20	)
Net asset value, end of period		$9.01			$8.94			$9.06			$8.90			$8.97			$8.80			$8.78
Total return3		1.45	%		(0.08	)%		3.63	%		0.83	%		3.69	%		0.42	%		3.23	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.56	%		1.58	%		1.57	%		1.58	%		1.58	%		1.63	%
Net expenses		1.56	%		1.56	%		1.57	%		1.57	%		1.58	%		1.58	%		1.62	%
Net investment income		0.80	%		0.40	%		1.16	%		0.74	%		1.59	%		2.40	%		2.26	%
Supplemental data
Portfolio turnover rate		23	%		39	%		51	%		49	%		74	%		12	%		130	%
Net assets, end of period (000s omitted)		$154,718			$152,882			$146,329			$152,155			$147,006			$113,724			$112,740

¹  For the one month ended June 30, 2011. The Fund changed its fiscal year end from May 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Strategic Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class C of Evergreen Strategic Municipal Bond Fund.

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

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

Financial highlights Wells Fargo Strategic Municipal Bond Fund 31

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30															Year ended May 31, 20112
ADMINISTRATOR CLASS				2015			2014			2013			2012			20111
Net asset value, beginning of period		$8.90			$9.02			$8.87			$8.94			$8.76			$8.75			$8.67
Net investment income		0.08			0.12			0.18			0.15			0.22			0.02			0.28
Net realized and unrealized gains (losses) on investments		0.09			(0.04	)		0.20			0.01			0.19			0.01			0.08
Total from investment operations		0.17			0.08			0.38			0.16			0.41			0.03			0.36
Distributions to shareholders from
Net investment income		(0.08	)		(0.12	)		(0.18	)		(0.15	)		(0.22	)		(0.02	)		(0.28	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)		0.00			0.00
Total distributions to shareholders		(0.10	)		(0.20	)		(0.23	)		(0.23	)		(0.23	)		(0.02	)		(0.28	)
Net asset value, end of period		$8.97			$8.90			$9.02			$8.87			$8.94			$8.76			$8.75
Total return3		1.90	%		0.80	%		4.44	%		1.73	%		4.76	%		0.39	%		4.20	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.75	%		0.77	%		0.76	%		0.75	%		0.77	%		0.77	%
Net expenses		0.68	%		0.68	%		0.68	%		0.68	%		0.68	%		0.68	%		0.69	%
Net investment income		1.67	%		1.28	%		2.05	%		1.62	%		2.42	%		3.32	%		3.23	%
Supplemental data
Portfolio turnover rate		23	%		39	%		51	%		49	%		74	%		12	%		130	%
Net assets, end of period (000s omitted)		$478,542			$529,945			$516,069			$521,312			$435,170			$159,045			$146,149

¹  For the one month ended June 30, 2011. The Fund changed its fiscal year end from May 31 to June 30, effective June 30, 2011.

²  After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Strategic Municipal Bond Fund which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of Class I of Evergreen Strategic Municipal Bond Fund.

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

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

32 Wells Fargo Strategic Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2015			2014			20131
Net asset value, beginning of period		$8.90			$9.03			$8.87			$9.06
Net investment income		0.09			0.13			0.20			0.08	2
Net realized and unrealized gains (losses) on investments		0.10			(0.05	)		0.21			(0.10	)
Total from investment operations		0.19			0.08			0.41			(0.02	)
Distributions to shareholders from
Net investment income		(0.09	)		(0.13	)		(0.20	)		(0.09	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)
Total distributions to shareholders		(0.11	)		(0.21	)		(0.25	)		(0.17	)
Net asset value, end of period		$8.98			$8.90			$9.03			$8.87
Total return3		2.12	%		0.89	%		4.77	%		(0.28	)%
Ratios to average net assets (annualized)
Gross expenses		0.48	%		0.48	%		0.50	%		0.50	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		1.89	%		1.49	%		2.27	%		1.65	%
Supplemental data
Portfolio turnover rate		23	%		39	%		51	%		49	%
Net assets, end of period (000s omitted)		$419,263			$319,313			$29,528			$31,868

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

Notes to financial statements (unaudited) Wells Fargo Strategic Municipal Bond Fund 33

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 Strategic Municipal 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.

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.

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

34 Wells Fargo Strategic Municipal Bond Fund Notes to financial statements (unaudited)

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.

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

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

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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)

Notes to financial statements (unaudited) Wells Fargo Strategic Municipal Bond Fund 35

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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Municipal obligations	$	0	$	1,586,159,661	$	0	$	1,586,159,661
Exchange-traded funds		48,348,000		0		0		48,348,000
Short-term investments
Investment companies		45,438,303		0		0		45,438,303
U.S. Treasury securities		624,873		0		0		624,873
Total assets	$	94,411,176	$	1,586,159,661	$	0	$	1,680,570,837
Liabilities
Futures contracts	$	59,375	$	0	$	0	$	59,375
Total liabilities	$	59,375	$	0	$	0	$	59,375

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 December 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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.37% of the Fund’s average daily net assets.

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

36 Wells Fargo Strategic Municipal Bond Fund Notes to financial statements (unaudited)

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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.82% for Class A shares, 1.57% for Class B shares, 1.57% for Class C shares, 0.68% for Administrator Class shares, and 0.48% 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 six months ended December 31, 2015, Funds Distributor received $11,733 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 are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $301,694,312 and $353,339,436, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended December 31, 2015, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

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

Expiration date	Counterparty	Contracts	Type	Contract value at December 31, 2015		Unrealized gains
3-21-2016	JPMorgan	200 Short	10-Year U.S. Treasury Notes	$	25,181,250	$	177,745

The Fund had an average notional amount of $3,235,290 and $12,024,570 in long and short futures contracts, respectively, during the six months ended December 31, 2015.

The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the appropriate financial statements.

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, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, 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

Notes to financial statements (unaudited) Wells Fargo Strategic Municipal Bond Fund 37

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 liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral pledged1			Net amount of liabilities
Futures – variation margin	JP Morgan	$59,375	$	0	$	(59,375	)	$	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) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $1,181 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

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.

38 Wells Fargo Strategic Municipal Bond Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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 Strategic Municipal Bond Fund 39

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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

40 Wells Fargo Strategic Municipal Bond Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

List of abbreviations Wells Fargo Strategic Municipal Bond Fund 41

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.

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398841 02-16 SA257/SAR257 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo

Ultra Short-Term Municipal Income Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Summary portfolio of investments*	7
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	21
Other information	25
List of abbreviations	28

* A complete schedule of portfolio holdings as of the report date may be obtained, free of charge, by accessing the following website: https://www.wellsfargofunds.com/assets/edocs/regulatory/holdings/ultra-short-term-municipal-income-semi.pdf or by calling Wells Fargo Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSRS, is also available on the SEC’s website at sec.gov.

The views expressed and any forward-looking statements are as of December 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 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 Ultra Short-Term Municipal Income Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Ultra Short-Term Municipal Income Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion in municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Ultra Short-Term Municipal Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax, consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Lyle J. Fitterer, CFA^®, CPA

Average annual total returns (%) as of December 31, 2015¹

		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 (SMAVX)	10-2-2000		(1.89	)		0.14			1.72		0.11			0.54			1.92		0.74		0.67
Class C (WFUSX)	3-31-2008		(1.61	)		(0.18	)		1.18		(0.61	)		(0.18	)		1.18		1.49		1.42
Administrator Class (WUSMX)	7-30-2010		–			–			–		0.18			0.61			2.04		0.68		0.60
Institutional Class (SMAIX)	7-31-2000		–			–			–		0.41			0.84			2.26		0.41		0.37
Barclays 1-Year Municipal Bond Index4	–		–			–			–		0.61			0.88			2.11		–		–

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, wellsfargofunds.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 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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to high-yield securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 5

Credit quality as of December 31, 2015⁵

Effective maturity distribution as of December 31, 2015⁶

¹  Historical performance shown for Class C shares prior to their inception reflects the performance of Class A shares, adjusted to reflect 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 reflect the higher expenses applicable to Administrator Class shares.

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 October 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 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-Year Municipal Bond Index is the one-year component of the Barclays Municipal Bond Index, which is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  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  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 Ultra Short-Term Municipal 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,002.91	$	3.37		0.67	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.77	$	3.40		0.67	%
Class C
Actual	$	1,000.00	$	999.11	$	7.14		1.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.00	$	7.20		1.42	%
Administrator Class
Actual	$	1,000.00	$	1,003.27	$	3.02		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,004.42	$	1.86		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.28	$	1.88		0.37	%

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—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 7

The Summary portfolio of investments shows the 50 largest portfolio holdings in unaffiliated issuers and any holdings exceeding 1% of the total net assets as of the report date. The remaining securities held are grouped as “Other securities” in each category.

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 0.23%
Other securities								$	12,576,750		0.23	%
Total Agency Securities (Cost $12,856,388)									12,576,750		0.23
Municipal Obligations: 93.98%
Alabama: 2.33%
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.85	%		11-15-2038	$	39,545,000		39,536,696		0.71
Other securities									89,748,549		1.62
									129,285,245		2.33
Alaska: 0.04%
Other securities									2,316,431		0.04
Arizona: 1.49%
Phoenix AZ IDA Various Republic Services Incorporated Projects (Industrial Development Revenue) ±		0.60			12-1-2035		29,000,000		29,000,000		0.52
Scottsdale AZ IDA Healthcare Series F (Health Revenue, AGM Insured) ±(m)		0.65			9-1-2045		48,700,000		48,700,000		0.88
Other securities									5,049,988		0.09
									82,749,988		1.49
Arkansas: 0.04%
Other securities									2,267,794		0.04
California: 8.45%
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series A (Transportation Revenue) ±		1.00			4-1-2047		28,885,000		28,914,752		0.52
California (GO Revenue)		0.56-4.00			12-1-2027 to 12-1-2028		13,800,000		14,016,714		0.25
California (GO Revenue) ±		4.00			12-1-2026		86,915,000		88,180,482		1.59
California Infrastructure & Economic Development Bank (Miscellaneous Revenue) ±		0.29			4-1-2038		24,620,000		24,600,796		0.44
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-4 (Miscellaneous Revenue) ±		0.29			4-1-2038		32,000,000		31,975,040		0.58
California Statewide CDA (Various Revenue) µ		0.40-5.00			11-15-2016 to 7-1-2040		27,735,000		27,769,077		0.50
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.44			7-1-2041		35,700,000		35,700,000		0.64
California Statewide CDA Health Facilities Catholic Series E (Health Revenue, AGM Insured) ±(m)		0.50			7-1-2040		25,900,000		25,900,000		0.47
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		0.82			7-1-2017		34,225,000		34,223,289		0.62
Other securities									157,108,831		2.84
									468,388,981		8.45

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

8 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Colorado: 0.73%
Other securities								$	40,412,273		0.73	%
Connecticut: 2.44%
Connecticut HEFA Yale University Series T-2 (Education Revenue) ±		0.60	%		7-1-2029	$	34,520,000		34,462,697		0.62
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		24,600,000		24,586,470		0.44
Other securities									76,337,499		1.38
									135,386,666		2.44
District of Columbia: 0.30%
Other securities									16,566,593		0.30
Florida: 4.44%
Miami-Dade County FL (Various Revenue) µ		0.21-5.25			3-3-2016 to 10-1-2033		98,331,093		99,530,516		1.80
Miami-Dade County FL School Board Certificate of Participation Series 3 (Miscellaneous Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) 144Aø		0.46			9-25-2024		37,895,000		37,895,000		0.68
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2037		25,000,000		25,000,000		0.45
Other securities									83,567,815		1.51
									245,993,331		4.44
Georgia: 2.89%
Georgia Series G (GO Revenue) ±		0.41			12-1-2026		106,305,000		105,954,194		1.91
Other securities									54,359,187		0.98
									160,313,381		2.89
Guam: 0.07%
Other securities									3,829,645		0.07
Hawaii: 0.12%
Other securities									6,465,447		0.12
Idaho: 0.35%
Other securities									19,583,950		0.35
Illinois: 9.95%
Chicago IL Board of Education (GO Revenue) µ		0.00-5.25			12-1-2016 to 3-1-2032		34,055,000		33,322,557		0.60
Chicago IL Board of Education Series A-1 (GO Revenue) ±		0.75			3-1-2026		45,780,000		45,266,348		0.82
Chicago IL Board of Education Series A-2 (GO Revenue) ±		0.76			3-1-2035		72,320,000		69,001,235		1.25
Illinois (Various Revenue) µ		2.50-5.00			2-1-2016 to 5-1-2019		140,625,000		145,491,747		2.63
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.60			6-1-2025		38,955,000		38,955,000		0.70
Other securities									219,243,081		3.95
									551,279,968		9.95

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Indiana: 1.16%
Other securities								$	64,154,819		1.16	%
Iowa: 0.21%
Other securities									11,493,050		0.21
Kansas: 0.61%
Other securities									33,630,274		0.61
Kentucky: 2.58%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		1.76	%		2-1-2040	$	30,700,000		30,732,235		0.55
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		50,920,000		53,748,606		0.97
Other securities									58,626,616		1.06
									143,107,457		2.58
Louisiana: 1.40%
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.40			11-1-2040		35,000,000		35,000,000		0.63
Other securities									42,556,004		0.77
									77,556,004		1.40
Maine: 0.36%
Other securities									19,807,167		0.36
Maryland: 1.45%
Other securities									80,423,266		1.45
Massachusetts: 2.06%
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ±		0.21			8-1-2043		75,000,000		74,859,750		1.35
Massachusetts HEFA Partners Healthcare Series G-2 (Health Revenue, AGM Insured) ±(m)		0.29			7-1-2042		25,575,000		25,575,000		0.46
Other securities									14,007,000		0.25
									114,441,750		2.06
Michigan: 4.78%
Michigan Finance Authority (Water & Sewer Revenue) µ		5.00			7-1-2016 to 7-1-2018		101,560,000		107,501,070		1.93
University of Michigan Series F (Education Revenue) ±		0.41			4-1-2043		48,970,000		48,970,000		0.88
Other securities									108,349,549		1.97
									264,820,619		4.78
Minnesota: 0.90%
Other securities									49,819,680		0.90
Mississippi: 0.87%
Other securities									48,014,553		0.87

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

10 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Missouri: 0.43%
Other securities								$	23,695,585		0.43	%
Nebraska: 0.07%
Other securities									3,744,363		0.07
Nevada: 0.02%
Other securities									1,076,360		0.02
New Jersey: 5.20%
New Jersey EDA (Various Revenue) µ		0.74-5.00	%		12-15-2016 to 6-15-2019	$	66,185,000		69,811,965		1.25
Other securities									218,811,324		3.95
									288,623,289		5.20
New Mexico: 0.73%
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		0.91			11-1-2039		40,685,000		40,351,383		0.73
Other securities									217,627		0.00
									40,569,010		0.73
New York: 14.88%
Metropolitan Transportation Authority New York (Transportation Revenue) µ		0.25-0.64			8-1-2016 to 11-15-2044		41,005,000		40,738,686		0.73
Metropolitan Transportation Authority New York Sub Series 3-3B (Transportation Revenue) ±		0.37			11-1-2030		42,470,000		42,412,241		0.77
Metropolitan Transportation Authority New York Sub Series D-2A (Transportation Revenue, AGM Insured) ±		0.64			11-1-2032		36,650,000		36,651,466		0.66
New York Local Government Assistance Corporation Refinance Sub Lien Series A-10V (Tax Revenue, AGM Insured) ±(m)(n)		0.47			4-1-2017		25,300,000		25,205,125		0.45
New York NY (GO Revenue) µ		0.31-0.56			8-1-2021 to 1-1-2032		44,265,000		44,265,909		0.80
New York NY Adjusted Fiscal 2008 Sub Series C4 (GO Revenue, AGC Insured) ±(m)		0.42			10-1-2027		55,800,000		55,800,000		1.01
New York NY Series A-6 (GO Revenue) ±		0.51			8-1-2031		39,950,000		39,800,587		0.72
New York NY Series J Sub Series J-2 (GO Revenue, AGM Insured) ±(m)		0.23			6-1-2036		25,050,000		25,050,000		0.45
New York NY Series J Sub Series J-3 (GO Revenue, AGM Insured) ±(m)		0.40			6-1-2036		27,750,000		27,750,000		0.50
New York NY Series J-9 (GO Revenue) ±		0.41			8-1-2027		38,000,000		37,948,700		0.68
New York NY Transitional Finance Authority (Tax Revenue, Dexia Credit Local SPA) µ		0.30			11-1-2022		41,165,000		41,165,000		0.74
New York NY Transitional Finance Authority Sub Series A3 (Tax Revenue) ø		0.24			8-1-2023		46,800,000		46,800,000		0.84
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		37,430,000		37,429,626		0.68
Oyster Bay NY BAN Series A (GO Revenue)		1.50			2-5-2016		50,465,000		50,508,905		0.91
Suffolk County NY (Various Revenue) µ		1.50-2.00			6-30-2016 to 9-30-2016		33,520,000		33,774,228		0.61
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		29,800,000		30,005,620		0.54

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New York (continued)
Tompkins NY Board of Cooperative Educational Services RAN (Miscellaneous Revenue)		1.50	%		6-29-2016	$	24,800,000	$	24,890,520		0.45	%
Other securities									184,564,138		3.34
									824,760,751		14.88
North Carolina: 0.63%
Other securities									34,756,268		0.63
North Dakota: 0.16%
Other securities									9,104,067		0.16
Ohio: 2.35%
Other securities									130,091,595		2.35
Oklahoma: 0.49%
Other securities									27,136,975		0.49
Oregon: 0.38%
Other securities									20,944,275		0.38
Pennsylvania: 3.58%
Pennsylvania Turnpike Commission (Transportation Revenue)		0.31-0.56			12-1-2016		21,875,000		21,885,613		0.39
Pennsylvania Turnpike Commission Series B-2 (Transportation Revenue) ±		0.31			12-1-2016		34,950,000		34,955,942		0.63
Other securities									141,698,505		2.56
									198,540,060		3.58
Puerto Rico: 0.28%
Other securities									15,287,012		0.28
Rhode Island: 0.35%
Other securities									19,344,680		0.35
South Carolina: 0.29%
Other securities									16,384,447		0.29
Tennessee: 0.53%
Other securities									29,141,285		0.53
Texas: 10.87%
Houston TX Independent School District Limited Tax School House Series A-1 (GO Revenue) ±		3.00			6-1-2039		83,250,000		84,121,628		1.52
Lamar TX Consolidated Independent School District Schoolhouse Series A (GO Revenue) ±		2.00			8-15-2047		38,220,000		38,527,289		0.69
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		26,355,000		26,879,201		0.48
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		28,340,000		28,905,100		0.52
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Industrial Development Revenue) ±		0.27			11-1-2040		30,600,000		30,600,000		0.55
Round Rock TX Independent School District (GO Revenue) ±		1.50			8-1-2040		35,000,000		35,208,250		0.63

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

12 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Texas (continued)
San Antonio TX Electric & Gas Refunding System Junior Lien Series A (Utilities Revenue) ±		0.29	%		2-1-2033	$	53,000,000	$	52,958,660		0.96	%
San Antonio TX Junior Lien No Reserve Fund Series F (Water & Sewer Revenue) ±		0.69			5-1-2043		12,320,000		12,319,877		0.22
Texas Municipal Gas Acquisition & Supply Corporation (Utilities Revenue) µ		0.89-5.00			12-15-2016 to 12-15-2017		21,955,000		22,050,278		0.40
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.48			9-15-2017		43,265,000		43,265,000		0.78
Other securities									227,471,732		4.12
									602,307,015		10.87
Vermont: 0.04%
Other securities									2,315,167		0.04
Virgin Islands: 0.16%
Other securities									9,093,795		0.16
Virginia: 0.84%
Chesapeake VA EDA Electric and Power Company Series 2008A (Utilities Revenue) ±		1.75			2-1-2032		30,000,000		30,250,800		0.55
Other securities									16,169,521		0.29
									46,420,321		0.84
Washington: 0.30%
Other securities									16,895,978		0.30
West Virginia: 0.31%
Other securities									16,981,470		0.31
Wisconsin: 0.50%
Other securities									27,854,497		0.50
Wyoming: 0.57%
Sweetwater County WY PCR Refunding PacifiCorp Project Series A (Industrial Development Revenue) ø		0.22			1-1-2017		31,500,000		31,500,000		0.57
Total Municipal Obligations (Cost $5,207,633,106)									5,208,676,597		93.98
Other: 2.24%
Nuveen Dividend Advantage Municipal Fund 3, Institutional MuniFund Term Preferred Shares ±144A		0.76			10-1-2017		59,000,000		59,267,860		1.07
Nuveen Texas Quality Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A		1.01			11-1-2018		25,000,000		25,064,000		0.45
Other securities									39,493,307		0.72
Total Other (Cost $123,399,828)									123,825,167		2.24

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

Summary portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 13

Security name	Yield			Shares		Value		Percent of net assets
Short-Term Investments: 3.00%
Investment Companies: 3.00%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)		0.01	%		166,476,461	$	166,476,461		3.00	%
Total Short-Term Investments (Cost $166,476,461)							166,476,461		3.00
Total investments in securities (Cost $5,510,365,783) *							5,511,554,975		99.45
Other assets and liabilities, net							30,580,738		0.55
Total net assets						$	5,542,135,713		100.00	%

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

(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.

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.

µ All or some of these obligations have credit enhancements or liquidity features that may, under certain circumstances, provide for repayment of principal and interest.

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 issuer of the security is an affiliated person 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 $5,510,359,910 and unrealized gains (losses) consists of:

Gross unrealized gains	$	10,214,966
Gross unrealized losses		(9,019,901	)
Net unrealized gains	$	1,195,065

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

14 Wells Fargo Ultra Short-Term Municipal Income Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $5,343,889,322)	$	5,345,078,514
In affiliated securities, at value (cost $166,476,461)		166,476,461
Total investments, at value (cost $5,510,365,783)		5,511,554,975
Receivable for investments sold		2,665,341
Receivable for Fund shares sold		24,409,804
Receivable for interest		26,811,573
Prepaid expenses and other assets		194,741
Total assets		5,565,636,434
Liabilities
Dividends payable		972,744
Payable for investments purchased		12,555,814
Payable for Fund shares redeemed		7,558,053
Management fee payable		1,368,565
Distribution fee payable		26,102
Administration fees payable		508,026
Accrued expenses and other liabilities		511,417
Total liabilities		23,500,721
Total net assets	$	5,542,135,713
NET ASSETS CONSIST OF
Paid-in capital	$	5,540,592,310
Overdistributed net investment income		(485,905	)
Accumulated net realized gains on investments		840,116
Net unrealized gains on investments		1,189,192
Total net assets	$	5,542,135,713
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,288,359,492
Shares outstanding – Class A1		133,917,509
Net asset value per share – Class A		$9.62
Maximum offering price per share – Class A2		$9.82
Net assets – Class C	$	36,263,591
Shares outstanding – Class C1		3,825,124
Net asset value per share – Class C		$9.48
Net assets – Administrator Class	$	249,575,036
Shares outstanding – Administrator Class1		25,941,802
Net asset value per share – Administrator Class		$9.62
Net assets – Institutional Class	$	3,967,937,594
Shares outstanding – Institutional Class1		412,433,805
Net asset value per share – Institutional Class		$9.62

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 15

Investment income
Interest	$	28,434,148
Income from affiliated securities		3,833
Total investment income		28,437,981
Expenses
Management fee		9,186,630
Administration fees
Class A		868,164
Class C		32,365
Administrator Class		143,027
Institutional Class		1,592,384
Investor Class		226,291	1
Shareholder servicing fees
Class A		1,356,507
Class C		50,570
Administrator Class		327,771
Investor Class		293,124	1
Distribution fee
Class C		151,711
Custody and accounting fees		146,902
Professional fees		23,586
Registration fees		114,558
Shareholder report expenses		6,480
Trustees’ fees and expenses		11,695
Other fees and expenses		20,008
Total expenses		14,551,773
Less: Fee waivers and/or expense reimbursements		(1,575,392	)
Net expenses		12,976,381
Net investment income		15,461,600
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		112,453
Futures transactions		538,290
Net realized gains on investments		650,743
Net change in unrealized gains (losses) on:
Unaffiliated securities		6,255,229
Futures transactions		188,830
Net change in unrealized gains (losses) on investments		6,444,059
Net realized and unrealized gains (losses) on investments		7,094,802
Net increase in net assets resulting from operations	$	22,556,402

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

16 Wells Fargo Ultra Short-Term Municipal Income Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	15,461,600					$	25,855,118
Net realized gains on investments					650,743						1,085,510
Net change in unrealized gains (losses) on investments					6,444,059						(21,719,373	)
Net increase in net assets resulting from operations					22,556,402						5,221,255
Distributions to shareholders from
Net investment income
Class A					(1,830,766	)					(2,749,665	)
Administrator Class					(580,707	)					(1,130,512	)
Institutional Class					(12,683,843	)					(21,082,314	)
Investor Class					(365,755	)1					(901,173	)
Net realized gains
Class A					(208,960	)					(244,521	)
Class C					(6,313	)					(11,088	)
Administrator Class					(41,422	)					(85,022	)
Institutional Class					(645,494	)					(858,240	)
Investor Class					0	1					(98,683	)
Total distributions to shareholders					(16,363,260	)					(27,161,218	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		55,150,350			530,629,657			111,855,247			542,684,333
Class C		170,847			1,620,917			180,062			862,969
Administrator Class		2,473,940			23,797,408			22,590,699			110,907,773
Institutional Class		178,793,861			1,719,796,332			914,711,014			4,491,582,630
Investor Class		1,404,938	1		13,526,753	1		10,840,147			53,947,649
					2,289,371,067						5,199,985,354
Reinvestment of distributions
Class A		201,988			1,943,427			578,030			2,925,065
Class C		554			5,255			1,902			9,074
Administrator Class		63,762			613,486			234,725			1,187,806
Institutional Class		859,709			8,271,837			2,557,359			12,986,750
Investor Class		28,543	1		274,869	1		189,236			963,181
					11,108,874						18,071,876
Payment for shares redeemed
Class A		(21,489,364	)		(206,685,447	)		(340,346,333	)		(1,162,471,735	)
Class C		(802,687	)		(7,615,038	)		(8,124,877	)		(17,508,880	)
Administrator Class		(10,741,673	)		(103,307,162	)		(73,238,026	)		(190,475,449	)
Institutional Class		(176,205,249	)		(1,694,758,889	)		(1,213,893,325	)		(3,962,637,971	)
Investor Class		(41,749,600	)1		(402,219,899	)1		(76,333,375	)		(175,481,600	)
					(2,414,586,435	)					(5,508,575,635	)
Net decrease in net assets resulting from capital share transactions					(114,106,494	)					(290,518,405	)
Total decrease in net assets					(107,913,352	)					(312,458,368	)
Net assets
Beginning of period					5,650,049,065						5,962,507,433
End of period				$	5,542,135,713					$	5,650,049,065
Overdistributed net investment income				$	(485,905	)				$	(486,434	)

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

Financial highlights Wells Fargo Ultra Short-Term Municipal Income Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				20151			20141			20131			20121			20111
Net asset value, beginning of period		$9.61			$9.64			$9.64			$9.64			$9.64			$9.62
Net investment income		0.02			0.02			0.04			0.04			0.10			0.12
Net realized and unrealized gains (losses) on investments		0.01			(0.03	)		0.00	2		(0.02	)		0.00	2		0.02
Total from investment operations		0.03			(0.01	)		0.04			0.02			0.10			0.14
Distributions to shareholders from
Net investment income		(0.02	)		(0.02	)		(0.04	)		(0.02	)		(0.10	)		(0.12	)
Net realized gains		(0.00	)2		(0.00	)2		(0.00	)2		0.00			0.00			0.00
Total distributions to shareholders		(0.02	)		(0.02	)		(0.04	)		(0.02	)		(0.10	)		(0.12	)
Net asset value, end of period		$9.62			$9.61			$9.64			$9.64			$9.64			$9.64
Total return3		0.29	%		(0.07	)%		0.35	%		0.31	%		0.96	%		1.51	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.76	%		0.76	%
Net expenses		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%
Net investment income		0.34	%		0.23	%		0.34	%		0.32	%		0.95	%		1.28	%
Supplemental data
Portfolio turnover rate		19	%4		44	%4		51	%4		65	%4		111	%		127	%
Net assets, end of period (000s omitted)		$1,288,359			$961,485			$1,582,112			$1,914,970			$2,603,618			$2,691,449

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  Amount is less than $0.005.

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

⁴  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

18 Wells Fargo Ultra Short-Term Municipal Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				20151			20141			20131			20121			20111
Net asset value, beginning of period		$9.49			$9.58			$9.62			$9.64			$9.64			$9.62
Net investment income (loss)		(0.02	)2		(0.11	)		(0.04	)2		(0.06	)		0.02			0.06
Net realized and unrealized gains (losses) on investments		0.01			0.02			0.00	3		0.04			0.00	3		0.02
Total from investment operations		(0.01	)		(0.09	)		(0.04	)		(0.02	)		0.02			0.08
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.02	)		(0.06	)
Net realized gains		(0.00	)3		(0.00	)3		(0.00	)3		0.00			0.00			0.00
Total distributions to shareholders		(0.00	)3		(0.00	)3		(0.00	)3		0.00			(0.02	)		(0.06	)
Net asset value, end of period		$9.48			$9.49			$9.58			$9.62			$9.64			$9.64
Total return4		(0.09	)%		(0.93	)%		(0.40	)%		(0.21	)%		0.25	%		0.76	%
Ratios to average net assets (annualized)
Gross expenses		1.50	%		1.50	%		1.50	%		1.50	%		1.51	%		1.51	%
Net expenses		1.42	%		1.42	%		1.42	%		1.42	%		1.42	%		1.42	%
Net investment income (loss)		(0.41	)%		(0.52	)%		(0.41	)%		(0.43	)%		0.23	%		0.54	%
Supplemental data
Portfolio turnover rate		19	%5		44	%5		51	%5		65	%5		111	%		127	%
Net assets, end of period (000s omitted)		$36,264			$42,289			$59,352			$89,148			$148,465			$216,389

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  Calculated based upon average shares outstanding

³  Amount is less than $0.005.

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

⁵  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Financial highlights Wells Fargo Ultra Short-Term Municipal Income Fund 19

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				20151			20141			20131			20121			20111,2
Net asset value, beginning of period		$9.61			$9.64			$9.64			$9.64			$9.64			$9.62
Net investment income		0.02			0.03			0.04			0.04			0.10			0.12
Net realized and unrealized gains (losses) on investments		0.01			(0.03	)		0.00	3		0.00	3		0.00	3		0.02
Total from investment operations		0.03			0.00			0.04			0.04			0.10			0.14
Distributions to shareholders from
Net investment income		(0.02	)		(0.03	)		(0.04	)		(0.04	)		(0.10	)		(0.12	)
Net realized gains		(0.00	)3		(0.00	)3		(0.00	)3		0.00			0.00			0.00
Total distributions to shareholders		(0.02	)		(0.03	)		(0.04	)		(0.04	)		(0.10	)		(0.12	)
Net asset value, end of period		$9.62			$9.61			$9.64			$9.64			$9.64			$9.64
Total return4		0.33	%		0.00	%		0.42	%		0.38	%		1.03	%		1.47	%
Ratios to average net assets (annualized)
Gross expenses		0.67	%		0.69	%		0.69	%		0.69	%		0.68	%		0.67	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.41	%		0.30	%		0.41	%		0.39	%		0.95	%		1.42	%
Supplemental data
Portfolio turnover rate		19	%5		44	%5		51	%5		65	%5		111	%		127	%
Net assets, end of period (000s omitted)		$249,575			$328,134			$407,791			$482,711			$597,108			$266,710

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  For the period from July 30, 2010 (commencement of class operations) to June 30, 2011

³  Amount is less than $0.005.

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

⁵  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

20 Wells Fargo Ultra Short-Term Municipal Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				20151			20141			20131			20121			20111
Net asset value, beginning of period		$9.61			$9.64			$9.64			$9.64			$9.64			$9.62
Net investment income		0.03			0.05			0.06			0.06			0.12			0.16
Net realized and unrealized gains (losses) on investments		0.01			(0.03	)		0.00	2		0.00	2		0.00	2		0.02
Total from investment operations		0.04			0.02			0.06			0.06			0.12			0.18
Distributions to shareholders from
Net investment income		(0.03	)		(0.05	)		(0.06	)		(0.06	)		(0.12	)		(0.16	)
Net realized gains		(0.00	)2		(0.00	)2		(0.00	)2		0.00			0.00			0.00
Total distributions to shareholders		(0.03	)		(0.05	)		(0.06	)		(0.06	)		(0.12	)		(0.16	)
Net asset value, end of period		$9.62			$9.61			$9.64			$9.64			$9.64			$9.64
Total return3		0.44	%		0.23	%		0.65	%		0.61	%		1.26	%		1.82	%
Ratios to average net assets (annualized)
Gross expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.43	%		0.43	%
Net expenses		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%
Net investment income		0.64	%		0.54	%		0.64	%		0.61	%		1.23	%		1.60	%
Supplemental data
Portfolio turnover rate		19	%4		44	%4		51	%4		65	%4		111	%		127	%
Net assets, end of period (000s omitted)		$3,967,938			$3,930,234			$3,403,244			$3,085,284			$3,158,674			$2,423,330

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  Amount is less than $0.005.

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

⁴  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Notes to financial statements (unaudited) Wells Fargo Ultra Short-Term Municipal Income 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 Ultra Short-Term Municipal Income Fund (the “Fund”) which is a diversified series of the Trust.

Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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.

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 Ultra Short-Term Municipal Income Fund Notes to financial statements (unaudited)

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

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

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 23

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	0	$	12,576,750	$	12,576,750
Municipal obligations		0		5,208,676,597		0		5,208,676,597
Other		0		123,825,167		0		123,825,167
Short-term investments
Investment companies		166,476,461		0		0		166,476,461
Total assets	$	166,476,461	$	5,332,501,764	$	12,576,750	$	5,511,554,975

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 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. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.33% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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 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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.67% for Class A shares, 1.42% for Class C shares, 0.60% for Administrator Class shares, and 0.37% 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.

24 Wells Fargo Ultra Short-Term Municipal Income Fund Notes to financial statements (unaudited)

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. Distribution fees are 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 six months ended December 31, 2015, Funds Distributor received $3,340 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 Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $1,288,542,953 and $872,788,015, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended December 31, 2015, the Fund entered into futures contracts for to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

As of December 31, 2015, the Fund did not have any open futures contract. The Fund had an average notional amount of $81,781,335 in short futures contracts during the six months ended December 31, 2015.

The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the appropriate financial statements.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $4,118 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

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.

Other information (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 25

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 wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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 Ultra Short-Term Municipal 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

Other information (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 27

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

28 Wells Fargo Ultra Short-Term Municipal 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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398842 02-16 SA258/SAR258 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Wisconsin Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	17
Other information	21
List of abbreviations	24

The views expressed and any forward-looking statements are as of December 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 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 Wisconsin Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Wisconsin Tax-Free Fund for the six-month period that ended December 31, 2015. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rates to between 0.25% and 0.50% in December. Short-term municipal bond yields rose, but yields on bonds with maturities three years and greater declined. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 3.18% during the six-month reporting period.

Monetary policy was accommodative, and economic growth was moderate.

The Fed kept its key interest rate near zero in order to support the economy and the financial system for most of the reporting period. However, it diverged from the path of central banks in other developed markets when it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The Fed maintained its existing policy of reinvesting principal payments from its balance-sheet holdings of agency debt and agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, which it expects to continue doing for some time.

Meanwhile, the European Central Bank (ECB) maintained its key rate at 0.05%, which has been in place since September 2014. 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.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5% as of December 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by dramatically lower oil prices, which fell from $61 per barrel at the beginning of the period to $37 per barrel by year-end. While lower oil prices benefited consumers of oil products, the lower prices pressured states and municipalities with oil-dependent economies.

Supply and demand trends supported municipals.

Demand for municipal debt, as measured by cash flows to mutual funds, was positive for the reporting period. After $2.6 billion municipal fund redemptions took place in the third quarter of 2015, inflows to municipal bond funds turned positive in the fourth quarter, amounting to $10.8 billion. On the supply side, refunding outpaced new issuance for capital projects. As a result, less new supply during the reporting period helped make 2015 the fifth calendar year of negative net supply. Favorable supply and demand helped 10-year AAA-rated municipal bond yields decline from 2.37% at the beginning of the period to 2.00% at the end of the reporting period.

Municipal credit fundamentals were solid.

A number of issuers that were in the news for their fiscal struggles, such as Illinois and New Jersey, rallied in the fourth quarter due to demand from investors looking for yield. While Illinois remained without a budget, the city of Chicago passed a budget for fiscal year 2016 that included property tax increases.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Wisconsin Tax-Free Fund 3

In order to shore up its pledge on general obligation (GO) debt, Puerto Rico began to claw back revenues that had been budgeted to pay principal and interest on bonds issued by several public corporations. The commonwealth continued to seek assistance from the U.S. Congress for legal tools to restructure its liabilities. In addition, Puerto Rico defaulted on additional non-GO/nonguaranteed securities at the beginning of 2016. We continue to emphasize, however, that the situation in Puerto Rico, including the recent default by one of its issuers, is not emblematic of overall municipal credit risk. The commonwealth’s recession, debt burdens, and difficult financial situation are unique to the island.

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.

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 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 Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo 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 August 11-12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” was removed from its name, effective December 15, 2015. 

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Wisconsin Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and Wisconsin individual income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Lyle J. Fitterer, CFA^®, CPA

Thomas Stoeckmann

Average annual total returns (%) as of December 31, 2015¹

		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 (WWTFX)	3-31-2008		(1.99	)		3.14		3.48		2.67		4.11		3.96		0.90		0.70
Class C (WWTCX)	12-26-2002		0.90			3.33		3.17		1.90		3.33		3.17		1.65		1.45
Barclays Municipal Bond Index4	–		–			–		–		3.30		5.35		4.72		–		–
Barclays Wisconsin Municipal Bond Index5	–		–			–		–		3.18		4.85		4.81		–		–

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, wellsfargofunds.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 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.

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 Fund is exposed Wisconsin and Puetro Rico municipal securities risk, high-yield securities, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Wisconsin Tax-Free Fund 5

Credit quality as of December 31, 2015⁶

Effective maturity distribution as of December 31, 2015⁷

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares (except during those periods in which expenses of Class A shares would have been higher than those of the former Investor Class shares, no such adjustment is reflected). 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 October 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 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 Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays Wisconsin Municipal Bond Index is the Wisconsin component of the Barclays Municipal Bond Index. You cannot invest directly in an index.

⁶  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.

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 Wisconsin Tax-Free 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,026.08	$	3.57		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62	$	3.56		0.70	%
Class C
Actual	$	1,000.00	$	1,022.23	$	7.37		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.85	$	7.35		1.45	%

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).

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 94.83%
Guam: 8.62%
Guam Government Business Privilege Series A (Tax Revenue)		5.25	%		1-1-2036	$	2,000,000	$	2,223,380
Guam Government Business Privilege Series B1 (Tax Revenue)		5.00			1-1-2042		500,000		543,655
Guam Government Business Privilege Series D (Tax Revenue)		5.00			11-15-2021		2,250,000		2,610,698
Guam Government Business Privilege Series D (Tax Revenue)		5.00			11-15-2022		1,500,000		1,754,760
Guam Government Hotel Occupancy Tax Series A (Tax Revenue)		5.00			11-1-2016		500,000		517,240
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.38			12-1-2024		1,000,000		1,108,540
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.50			12-1-2019		1,000,000		1,136,200
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.25			7-1-2025		740,000		858,637
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.00			7-1-2019		650,000		718,153
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2016		100,000		103,137
Guam International Airport Authority Series B (Airport Revenue)		5.00			10-1-2016		150,000		154,706
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2019		1,575,000		1,781,388
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2020		500,000		578,005
									14,088,499
Illinois: 6.16%
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		1,000,000		685,700
Chicago IL Board of Education Refunding Bond Series A (GO Revenue, Ambac Insured)		5.50			12-1-2025		2,115,000		2,164,068
Chicago IL Refunding Bond (Tax Revenue)		5.00			1-1-2034		2,000,000		2,149,920
Chicago IL Series A (GO Revenue)		5.00			1-1-2027		1,700,000		1,755,420
Chicago IL Waterworks Second Lien (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2020		500,000		537,780
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		250,000		277,683
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		3,500,000		2,510,760
									10,081,331
Michigan: 0.13%
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2021		215,000		216,116
New Jersey: 1.18%
New Jersey EDA Series EE (Miscellaneous Revenue)		5.00			9-1-2023		935,000		1,007,285
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		2,000,000		915,220
									1,922,505
Puerto Rico: 8.51%
Puerto Rico Commonwealth Public Improvement Refunding Bond Series A (GO Revenue, AGC Insured)		5.00			7-1-2016		1,535,000		1,560,266
Puerto Rico Commonwealth Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016		425,000		430,258
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50			7-1-2016		1,000,000		1,012,220
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		1,000,000		1,024,410
Puerto Rico Electric Power Authority Refunding Bond Series UU (Utilities Revenue, AGM Insured)		5.00			7-1-2016		2,255,000		2,287,923

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

8 Wells Fargo Wisconsin Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico (continued)
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50	%		12-1-2018	$	600,000	$	660,996
Puerto Rico Highway & Transportation Authority Refunding Bond Series L (Transportation Revenue, AGC Insured)		5.25			7-1-2019		1,000,000		1,038,130
Puerto Rico Highway & Transportation Authority Refunding Bond Series L (Transportation Revenue, BHAC/FGIC Insured)		5.25			7-1-2021		300,000		348,003
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2018		500,000		509,755
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2019		1,500,000		1,533,780
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital De La Concepcion Series A (Health Revenue)		6.50			11-15-2020		25,000		25,531
Puerto Rico Municipal Finance Authority Series C (Tobacco Revenue, BHAC/FGIC Insured)		5.50			7-1-2020		3,000,000		3,450,450
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		250,000		40,000
									13,921,722
Virgin Islands: 8.37%
Virgin Islands PFA (Miscellaneous Revenue) 144A		3.00			9-1-2016		965,000		978,336
Virgin Islands PFA (Miscellaneous Revenue) 144A		5.00			9-1-2020		750,000		848,670
Virgin Islands PFA Gross Receipts Series C (Tax Revenue)		5.00			10-1-2017		2,240,000		2,371,645
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, National Insured)		4.00			10-1-2020		450,000		458,420
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, AGM Insured)		4.00			10-1-2022		1,000,000		1,062,680
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, National Insured)		5.00			10-1-2016		250,000		257,153
Virgin Islands PFA Matching Fund Loan Notes Senior Lien Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2025		2,000,000		2,241,840
Virgin Islands PFA Series A (Tax Revenue)		5.00			10-1-2018		5,165,000		5,457,029
Virgin Islands PFA Unrefunded Balance Series A (Miscellaneous Revenue)		7.30			10-1-2018		10,000		11,046
									13,686,819
Wisconsin: 61.86%
Appleton WI RDA Fox Cities Performing Arts Center Project (Tax Revenue)		1.75			9-1-2016		415,000		416,233
Blue Mounds WI CDA Series A (Miscellaneous Revenue)		1.25			4-1-2017		50,000		50,199
Brookfield WI Community Development & Redevelopment Authority Series A (Miscellaneous Revenue)		1.15			6-1-2018		550,000		549,291
Brookfield WI Community Development & Redevelopment Authority Series A (Miscellaneous Revenue)		1.35			6-1-2019		750,000		747,863
Cudahy WI CDA Series A (Miscellaneous Revenue)		1.20			6-1-2017		170,000		170,728
Cudahy WI CDA Series A (Miscellaneous Revenue)		1.50			6-1-2018		200,000		200,832
Glendale WI CDA Bayshore Public Parking (Miscellaneous Revenue)		1.50			10-1-2019		300,000		300,651
Glendale WI CDA Series A (Miscellaneous Revenue)		3.50			10-1-2017		1,635,000		1,699,893
Glendale WI CDA Series A (Miscellaneous Revenue)		3.50			10-1-2018		1,700,000		1,794,758
Green Bay WI Housing Authority University Village Housing Incorporated (Education Revenue)		4.38			4-1-2022		200,000		214,546
Green Bay WI Housing Authority University Village Housing Incorporated (Education Revenue)		5.00			4-1-2030		1,410,000		1,562,054
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		5.65			12-1-2026		100,000		113,200
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		6.00			12-1-2029		260,000		296,933
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		5.50			12-1-2023		250,000		281,925

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		6.15	%		12-1-2032	$	420,000	$	481,471
Green Bay WI RDA Pine Street Parking Ramp Project (Miscellaneous Revenue)		2.70			4-1-2016		405,000		407,450
Greenfield WI CDA Layton Terrace Project (Housing Revenue) ±		4.75			9-1-2033		500,000		500,700
Jackson WI CDA Kettle Moraine Lutheran High School Federation Incorporated (Education Revenue, FHLB LOC) ø		0.01			6-1-2031		3,710,000		3,710,000
Kaukauna WI RDA (Miscellaneous Revenue)		3.75			6-1-2032		850,000		878,501
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2019		50,000		54,125
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2020		100,000		109,824
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2021		310,000		343,694
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2022		235,000		262,446
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2023		200,000		224,100
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2025		425,000		477,530
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2028		425,000		462,787
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2035		900,000		928,917
Little Chute WI CDA (Industrial Development Revenue, Associated Bank NA LOC) ø		0.11			7-1-2053		805,000		805,000
Little Chute WI CDA (Miscellaneous Revenue)		4.25			3-1-2017		200,000		200,502
Little Chute WI CDA (Miscellaneous Revenue)		4.35			3-1-2018		200,000		200,448
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2023		150,000		169,311
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2025		475,000		535,073
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2039		5,000,000		5,629,350
Milwaukee WI RDA Neighborhood Schools Series A (Miscellaneous Revenue, Ambac Insured)		3.90			8-1-2021		405,000		419,349
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue, Ambac Insured)		4.00			8-1-2023		300,000		309,243
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2020		3,100,000		3,548,322
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2021		3,330,000		3,881,748
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.25			8-1-2043		2,100,000		2,382,849
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		3.15			8-1-2017		50,000		51,648
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		4.60			8-1-2024		870,000		940,174
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		5.00			8-1-2030		3,000,000		3,318,720
Milwaukee WI RDA Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		0.95			12-1-2038		2,155,000		2,155,000
Monroe WI RDA Monroe Clinic Incorporated (Health Revenue)		5.50			2-15-2029		1,000,000		1,096,800
Monroe WI RDA Monroe Clinic Incorporated (Health Revenue)		5.88			2-15-2039		1,570,000		1,721,207
North Fond Du Lac WI CDA (Miscellaneous Revenue)		0.85			12-1-2016		150,000		149,940
North Fond Du Lac WI CDA (Miscellaneous Revenue)		1.30			12-1-2017		50,000		50,006
North Fond Du Lac WI CDA (Miscellaneous Revenue)		1.70			12-1-2018		50,000		49,868
Oostburg WI CDA Series A (Miscellaneous Revenue)		1.40			5-1-2016		70,000		70,160
Oostburg WI CDA Series A (Miscellaneous Revenue)		1.75			5-1-2018		50,000		50,299
Pittsville WI CDA Series A (Miscellaneous Revenue)		1.45			6-1-2016		50,000		50,077
Pittsville WI CDA Series A (Miscellaneous Revenue)		1.65			6-1-2017		100,000		100,123
Platteville WI RDA University of Wisconsin Platteville Real Estate (Education Revenue)		5.00			7-1-2022		1,000,000		1,097,500
Prairie du Chien WI RDA Series B (Miscellaneous Revenue)		1.65			9-1-2020		200,000		200,832
Racine WI Elderly Housing Authority Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		0.95			10-1-2042		1,420,000		1,420,000
Residual Interest Bond Floater Trust Various States Series 2WE (Miscellaneous Revenue, Barclays Bank plc LOC) 144Aø		0.14			5-1-2018		3,950,000		3,950,000
Saukville Village WI CDA Calibre Incorporated Project (Industrial Development Revenue, BMO Harris Bank NA LOC) ø		0.21			9-1-2029		605,000		605,000
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2017		1,765,000		1,916,190

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

10 Wells Fargo Wisconsin Tax-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50	%		12-15-2018	$	380,000	$	428,313
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2019		100,000		116,217
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2021		2,000,000		2,448,420
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2023		1,600,000		1,984,096
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2026		2,355,000		2,887,065
Sturgeon Bay WI Waterfront RDA Series A (Miscellaneous Revenue)		4.35			10-1-2018		150,000		152,912
Sun Prairie WI CDA Tax Incremental # 6 & 7 (Miscellaneous Revenue)		3.80			2-1-2018		300,000		307,371
Sun Prairie WI CDA Tax Incremental # 6 & 7 (Miscellaneous Revenue)		4.00			2-1-2019		220,000		225,111
Sun Prairie WI CDA Tax Incremental # 6 & 7 (Miscellaneous Revenue)		4.50			2-1-2022		250,000		255,958
Verona WI CDA Public Improvements (Miscellaneous Revenue)		5.38			12-1-2022		830,000		831,917
Warrens WI CDA Economic Improvements (Miscellaneous Revenue)		5.10			11-1-2020		70,000		52,937
Warrens WI CDA Interim Workout Extension (Tax Revenue)		3.70			11-1-2029		214,392		109,550
Warrens WI CDA Public Improvements (Miscellaneous Revenue)		5.00			11-1-2016		70,000		67,449
Waukesha WI Housing Authority Preservation Corporation Project (Housing Revenue, Johnson Bank LOC) ø		0.95			12-1-2042		1,950,000		1,950,000
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		2.30			12-1-2016		135,000		136,991
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		2.65			12-1-2017		335,000		345,318
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.00			12-1-2023		150,000		159,620
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.20			12-1-2024		150,000		160,524
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.25			12-1-2025		250,000		267,143
Wauwatosa WI Housing Authority Hart Park Square Project (Health Revenue, BMO Harris Bank NA LOC) ø		0.21			3-1-2034		260,000		260,000
Weston WI CDA Series A (Miscellaneous Revenue)		5.25			10-1-2020		720,000		722,218
Wisconsin Center District CAB (Tax Revenue, National Insured) ¤		0.00			12-15-2019		175,000		161,744
Wisconsin Center District CAB (Tax Revenue, AGM Insured) ¤		0.00			12-15-2030		190,000		121,178
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2018		65,000		72,595
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2019		2,000,000		2,296,760
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2023		2,200,000		2,578,312
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2027		665,000		790,758
Wisconsin Center District Junior Dedicated Bond Series A (Tax Revenue)		5.00			12-15-2030		2,100,000		2,356,389
Wisconsin Center District Junior Dedicated Bond Series A (Tax Revenue)		5.00			12-15-2022		730,000		832,105
Wisconsin Dells CDA (Miscellaneous Revenue)		4.60			3-1-2025		175,000		175,548
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		3.00			12-1-2019		1,475,000		1,544,384
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		4.00			12-1-2035		1,000,000		1,033,940
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		5.00			12-1-2025		1,500,000		1,768,770
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		5.00			12-1-2026		1,740,000		2,037,557
Wisconsin HEFA Rogers Memorial Hospital Incorporated Series B (Health Revenue)		5.00			7-1-2044		3,250,000		3,533,498
Wisconsin Housing & EDA (Housing Revenue, FHA Insured)		6.10			6-1-2021		70,000		75,002
Wisconsin Housing & EDA AMT Series A (Housing Revenue)		4.63			11-1-2037		25,000		25,057
Wisconsin Housing & EDA AMT Series A (Housing Revenue)		4.75			5-1-2037		270,000		270,178
Wisconsin Housing & EDA MFHR Series A (Industrial Development Revenue) ±		4.25			12-1-2035		1,960,000		1,980,521

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Wisconsin Housing & EDA President House Project (Housing Revenue, Associated Bank NA LOC) ø		0.11	%		8-1-2046	$	1,725,000	$	1,725,000
Wisconsin Housing & EDA Series A (Housing Revenue)		0.55			12-1-2016		50,000		49,959
Wisconsin Housing & EDA Series A (Housing Revenue)		3.00			5-1-2022		100,000		104,989
Wisconsin Housing & EDA Series A (Housing Revenue)		3.00			11-1-2022		125,000		131,484
Wisconsin Housing & EDA Series A (Housing Revenue, FHLB LIQ) ø		0.02			5-1-2055		2,400,000		2,400,000
Wisconsin Housing & EDA Series A (Housing Revenue)		0.80			6-1-2017		50,000		49,991
Wisconsin Housing & EDA Series A (Housing Revenue)		0.90			12-1-2017		50,000		49,963
Wisconsin Housing & EDA Series A (Housing Revenue)		1.15			6-1-2018		55,000		55,028
Wisconsin Housing & EDA Series A (Housing Revenue)		1.25			12-1-2018		55,000		55,040
Wisconsin Housing & EDA Series A (Housing Revenue)		1.55			12-1-2019		55,000		55,231
Wisconsin Housing & EDA Series A (Housing Revenue)		1.95			12-1-2020		55,000		55,619
Wisconsin Housing & EDA Series A (Housing Revenue)		4.05			12-1-2049		800,000		817,984
Wisconsin Housing & EDA Series A (Housing Revenue)		5.75			11-1-2043		3,355,000		3,572,538
Wisconsin Housing & EDA Series E (Housing Revenue)		4.90			11-1-2035		85,000		85,329
Wisconsin Oneida Tribe of Indians (Tax Revenue) 144A		5.50			2-1-2021		605,000		667,829
Wisconsin Refunding Bond of 2011 Series 1 (GO Revenue)		5.00			5-1-2022		1,225,000		1,460,347
									101,175,147
Total Municipal Obligations (Cost $149,933,888)									155,092,139

Total investments in securities (Cost $149,933,888) *	94.83	%		155,092,139
Other assets and liabilities, net	5.17			8,455,899
Total net assets	100.00	%	$	163,548,038

¤ 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.

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.

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.

* Cost for federal income tax purposes is $149,931,423 and unrealized gains (losses) consists of:

Gross unrealized gains	$	5,460,809
Gross unrealized losses		(300,093	)
Net unrealized gains	$	5,160,716

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

12 Wells Fargo Wisconsin Tax-Free Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments in unaffiliated securities, at value (cost $149,933,888)	$	155,092,139
Cash		5,007,744
Receivable for investments sold		1,981,885
Receivable for Fund shares sold		97,984
Receivable for interest		1,677,103
Prepaid expenses and other assets		38,837
Total assets		163,895,692
Liabilities
Dividends payable		57,639
Payable for Fund shares redeemed		174,125
Management fee payable		28,436
Distribution fee payable		7,434
Administration fees payable		24,345
Shareholder servicing fees payable		37,494
Professional fees payable		18,181
Total liabilities		347,654
Total net assets	$	163,548,038
NET ASSETS CONSIST OF
Paid-in capital	$	158,204,407
Overdistributed net investment income		(10,498	)
Accumulated net realized gains on investments		195,878
Net unrealized gains on investments		5,158,251
Total net assets	$	163,548,038
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	152,799,551
Shares outstanding – Class A1		13,912,263
Net asset value per share – Class A		$10.98
Maximum offering price per share – Class A2		$11.50
Net assets – Class C	$	10,748,487
Shares outstanding – Class C1		978,711
Net asset value per share – Class C		$10.98

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 13

Investment income
Interest	$	2,482,555
Expenses
Management fee		327,798
Administration fees
Class A		58,603
Class C		8,743
Investor Class		75,732	1
Shareholder servicing fees
Class A		91,022
Class C		13,660
Investor Class		99,647	1
Distribution fee
Class C		40,981
Custody and accounting fees		4,974
Professional fees		21,399
Registration fees		28,904
Shareholder report expenses		10,261
Trustees’ fees and expenses		12,045
Other fees and expenses		4,522
Total expenses		798,291
Less: Fee waivers and/or expense reimbursements		(171,706	)
Net expenses		626,585
Net investment income		1,855,970
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		237,391
Net change in unrealized gains (losses) on investments		2,004,510
Net realized and unrealized gains (losses) on investments		2,241,901
Net increase in net assets resulting from operations	$	4,097,871

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

14 Wells Fargo Wisconsin Tax-Free Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 2015
Operations
Net investment income				$	1,855,970					$	3,238,956
Net realized gains on investments					237,391						1,138,977
Net change in unrealized gains (losses) on investments					2,004,510						(1,520,636	)
Net increase in net assets resulting from operations					4,097,871						2,857,297
Distributions to shareholders from
Net investment income
Class A					(860,537	)					(476,833	)
Class C					(86,271	)					(156,636	)
Investor Class					(909,161	)1					(2,605,288	)
Net realized gains
Class A					(46,148	)					(213,581	)
Class C					(3,207	)					(108,604	)
Investor Class					0	1					(1,168,572	)
Total distributions to shareholders					(1,905,324	)					(4,729,514	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		12,297,720			134,332,686			654,328			7,170,002
Class C		59,180			645,380			165,504			1,815,037
Investor Class		505,794	1		5,498,632	1		2,709,500			29,751,822
					140,476,698						38,736,861
Reinvestment of distributions
Class A		72,514			793,610			56,852			622,960
Class C		8,003			87,354			23,730			259,991
Investor Class		59,864	1		650,999	1		316,401			3,467,290
					1,531,963						4,350,241
Payment for shares redeemed
Class A		(656,930	)		(7,182,838	)		(321,379	)		(3,523,390	)
Class C		(96,632	)		(1,052,662	)		(132,955	)		(1,456,383	)
Investor Class		(12,142,203	)1		(132,592,719	)1		(1,737,420	)		(19,058,958	)
					(140,828,219	)					(24,038,731	)
Net increase in net assets resulting from capital share transactions					1,180,442						19,048,371
Total increase in net assets					3,372,989						17,176,154
Net assets
Beginning of period					160,175,049						142,998,895
End of period				$	163,548,038					$	160,175,049
Overdistributed net investment income				$	(10,498	)				$	(10,499	)

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

Financial highlights Wells Fargo Wisconsin Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS A				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.83			$10.96			$10.86			$11.09			$10.68			$10.67
Net investment income		0.13			0.24			0.33			0.27			0.34			0.36
Net realized and unrealized gains (losses) on investments		0.15			(0.02	)		0.18			(0.22	)		0.42			0.01
Total from investment operations		0.28			0.22			0.51			0.05			0.76			0.37
Distributions to shareholders from
Net investment income		(0.13	)		(0.24	)		(0.33	)		(0.27	)		(0.34	)		(0.36	)
Net realized gains		(0.00	)1		(0.11	)		(0.08	)		(0.01	)		(0.01	)		0.00
Total distributions to shareholders		(0.13	)		(0.35	)		(0.41	)		(0.28	)		(0.35	)		(0.36	)
Net asset value, end of period		$10.98			$10.83			$10.96			$10.86			$11.09			$10.68
Total return2		2.61	%		2.07	%		4.80	%		0.46	%		7.19	%		3.52	%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.90	%		0.92	%		0.90	%		0.92	%		0.92	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		2.35	%		2.22	%		3.02	%		2.44	%		3.06	%		3.43	%
Supplemental data
Portfolio turnover rate		13	%		28	%		25	%		31	%		14	%		60	%
Net assets, end of period (000s omitted)		$152,800			$23,824			$19,825			$25,641			$20,844			$11,540

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

16 Wells Fargo Wisconsin Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30
CLASS C				2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.83			$10.96			$10.86			$11.09			$10.68			$10.67
Net investment income		0.09			0.16			0.25			0.19			0.26			0.27
Net realized and unrealized gains (losses) on investments		0.15			(0.02	)		0.18			(0.22	)		0.42			0.01
Total from investment operations		0.24			0.14			0.43			(0.03	)		0.68			0.28
Distributions to shareholders from
Net investment income		(0.09	)		(0.16	)		(0.25	)		(0.19	)		(0.26	)		(0.27	)
Net realized gains		(0.00	)1		(0.11	)		(0.08	)		(0.01	)		(0.01	)		0.00
Total distributions to shareholders		(0.09	)		(0.27	)		(0.33	)		(0.20	)		(0.27	)		(0.27	)
Net asset value, end of period		$10.98			$10.83			$10.96			$10.86			$11.09			$10.68
Total return2		2.22	%		1.31	%		4.02	%		(0.29	)%		6.40	%		2.71	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.65	%		1.67	%		1.65	%		1.67	%		1.67	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.48	%
Net investment income		1.58	%		1.47	%		2.28	%		1.69	%		2.32	%		2.56	%
Supplemental data
Portfolio turnover rate		13	%		28	%		25	%		31	%		14	%		60	%
Net assets, end of period (000s omitted)		$10,748			$10,923			$10,431			$12,094			$11,393			$9,552

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Notes to financial statements (unaudited) Wells Fargo Wisconsin Tax-Free Fund 17

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 Wisconsin Tax-Free Fund (the “Fund”) which is a series of the Trust. Originally classified as diversified, the Fund now is classified as a non-diversified open-end management investment company.

Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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 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

18 Wells Fargo Wisconsin Tax-Free Fund Notes to financial statements (unaudited)

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 and tax-exempt 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 June 30, 2015, the Fund had $43,830 of current year deferred post-October capital losses which was recognized the first day of the current fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. 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 December 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	155,092,139	$	0	$	155,092,139

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

Notes to financial statements (unaudited) Wells Fargo Wisconsin Tax-Free Fund 19

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 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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 C		0.16	%
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 October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.70% for Class A shares and 1.45% for Class C 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 six months ended December 31, 2015, Funds Distributor received $1,254 from the sale of Class A shares and $150 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Investor Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

20 Wells Fargo Wisconsin Tax-Free Fund Notes to financial statements (unaudited)

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $18,652,794 and $18,062,752, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund. For the six months ended December 31, 2015, the Fund paid $115 in commitment fees.

For the six months ended December 31, 2015, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

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.

Other information (unaudited) Wells Fargo Wisconsin Tax-Free Fund 21

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 wellsfargofunds.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 wellsfargofunds.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 (wellsfargofunds.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.

22 Wells Fargo Wisconsin Tax-Free 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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

Other information (unaudited) Wells Fargo Wisconsin Tax-Free Fund 23

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

24 Wells Fargo Wisconsin Tax-Free 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 Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398843 02-16 SA259/SAR259 12-15

Semi-Annual Report

December 31, 2015

Wells Fargo Alternative Strategies Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	34
Statement of operations	35
Statement of changes in net assets	36
Financial highlights	37
Notes to financial statements	41
Other information	54
List of abbreviations	57

The views expressed and any forward-looking statements are as of December 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 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 Alternative Strategies Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

During 2015, crosscurrents in the U.S. economy tended to restrain investor sentiment.

During the summer of 2015, the Hang Seng Index² in Hong Kong experienced a dramatic decline.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Alternative Strategies Fund for the six-month period that ended December 31, 2015. Equity and bond investors endured concerns about slowing global growth; continued low prices for oil, natural gas, and other commodities; currency volatility; and the incidence of terrorist violence globally. The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net),¹ a proxy for stock performance in developed and emerging markets, recorded a -4.9% return in U.S. dollar terms for the period. Returns suffered substantially early in the period when investors grew concerned about debt negotiations between Greece and its lenders. Dramatic reversals in China’s stock market followed during the summer. Emerging markets suffered as global growth slowed and commodity prices declined. In the meantime, U.S., European, and Japanese economic performance trended positively but at an uneven pace. Investor concerns extended beyond the reporting period into the new year as global markets experienced sharp sell-offs in early January 2016.

Globally, central bank policies diverged.

In December 2015, the Federal Open Market Committee increased the federal funds rate from a near-zero range to a range of 0.25% to 0.50%, the first interest-rate increase since 2006. Because the U.S. Federal Reserve consistently had signaled that an interest-rate increase was in the offing, investment markets exhibited little reaction to the move, with most analysts expecting more definitive responses to be seen in 2016. During 2015, crosscurrents in the U.S. economy tended to restrain investor sentiment. Annualized gross domestic product growth fell to 2.0% in the third quarter and was estimated by the the U.S. Bureau of Economic Analysis to be 0.7% in the fourth quarter. Corporate results, as measured by profits from current production, decreased in the third quarter, according to the U.S. Bureau of Economic Analysis. On a more positive note, unemployment remained at 5.0% in December 2015 as the economy added more than 290,000 jobs to nonfarm payrolls. In addition, consumer spending was generally steady as housing and automobile sales improved.

Meanwhile, central bank actions abroad diverged from those of the U.S. as policymakers sought to spark economic growth and address volatility in their markets. The European Central Bank continued to encourage lending and investing by making funds available to banks at low interest rates, imposing a negative interest rate on bank deposits, and purchasing bonds through its quantitative easing program. During the summer of 2015, the Hang Seng Index² in Hong Kong experienced a dramatic decline. In response, the People’s Bank of China demonstrated its willingness to intervene in its financial and currency markets to advance the government’s stated intention of integrating its economy more fully with its global counterparts: the U.S., Europe, and Japan. In Japan, while broad economic growth has not yet demonstrated sustainable improvement as a result of Prime Minister Shinzo Abe’s Abenomics policies, selected corporate results have shown progress as a result of operational and governance reforms under Abenomics. The trend holds the potential of yielding future investment opportunities in that country. Slowing economic growth in China reduced its importing activity, which, combined with continued low prices for many commodities, negatively affected China’s trading partners, particularly in developing markets that rely on commodity exports.

¹  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

²  The Hang Seng Index is a free-float-adjusted market-capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Alternative Strategies Fund 3

The S&P 500 Index³ recorded just a 0.2% return for the period. Bond investors in the U.S. fared somewhat better, with the Barclays U.S. Aggregate Bond Index⁴ returning 0.7% for the period. Developed European and Asian equity markets returned -6.0% for the period, as measured by the MSCI EAFE Index (Net).⁵ The MSCI Emerging Markets Index (Net)⁶ declined -17.4% during the same period as the effects of China’s slowdown were most severely felt in developing markets. International bond investors experienced losses, as measured by the Barclays Global Aggregate ex U.S. Dollar Bond Index,⁷ which recorded a -0.6% return. U.S. equity and bond investors in overseas markets saw the values of their investments fall as the U.S. dollar strengthened in comparison with other currencies.

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 Funds offers more than 100 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Funds

Notice to shareholders

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

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

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

⁴  The Barclays U.S. Aggregate Bond Index is composed of the Barclays U.S. Government/Credit Index and the Barclays U.S. Mortgage-Backed Securities Index, and includes Treasury issues, agency issues, corporate bond issues, and mortgage-backed securities. You cannot invest directly in an index.

⁵  The MSCI Europe, Australasia, Far East (EAFE) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index (Net) consists of the following 21 developed markets country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. You cannot invest directly in an index.

⁶  The MSCI Emerging Markets Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging markets country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. You cannot invest directly in an index.

⁷  The Barclays Global Aggregate ex U.S. Dollar Bond Index tracks an international basket of government, corporate, agency, and mortgage-related bonds. You cannot invest directly in an index.

4 Wells Fargo Alternative Strategies Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadvisers

The Rock Creek Group, LP

Chilton Investment Company, LLC

Mellon Capital Management Corporation

Passport Capital, LLC

Pine River Capital Management L.P.

River Canyon Fund Management LLC

Sirios Capital Management, L.P.

Wellington Management Company LLP

Portfolio managers

John F. Brennan, JR.

John Burbank

Richard L. Chilton, Jr.

James Clark

Vassilis Dagioglu

Lucy DeStefano

Sudhir Krisnamurthi

Kenneth LaPlace

Soon Pho

Kent M. Stahl, CFA^®

Gregg R. Thomas, CFA^®

Ronald van der Wouden

Aaron Zimmerman

Average annual total returns (%) as of December 31, 2015

		Including sales charge						Excluding sales charge					Expense ratios1 (%)
	Inception date	1 year			Since inception			1 year			Since inception		Gross		Net2
Class A (WALTX)	4-30-2014		(4.25	)		(0.17	)		1.63			3.43		3.39		2.88
Class C (WACTX)	4-30-2014		(0.14	)		2.66			0.86			2.66		4.14		3.63
Administrator Class (WADTX)	4-30-2014		–			–			1.73			3.54		3.31		2.73
Institutional Class (WAITX)	4-30-2014		–			–			1.82			3.66		3.06		2.63
Barclays U.S. Aggregate Bond Index3	–		–			–			0.55			2.22		–		–
Credit Suisse Liquid Alternatives Beta Index4	–		–			–			(0.78	)		1.07		–		–

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, wellsfargofunds.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 5.75%. 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.

The Fund does not invest directly in hedge funds but pursues similar strategies to those typically used by hedge funds. The Fund invests using alternative investment strategies such as equity hedged, event driven, global macro, and relative value, which are speculative and entail a high degree of risk. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. 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. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Borrowing money to purchase securities or cover short positions magnifies losses and incurs expenses. Short selling is generally considered speculative, has the potential for unlimited loss, and may involve leverage. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. The Fund is exposed to high-yield securities risk, mortgage- and asset-backed securities risk, convertible securities risk, loan risk, regulatory risk, and smaller-company securities risk. Consult a Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Alternative Strategies Fund 5

Sector allocation as of December 31, 20155
	Gross exposure (%)	Net exposure (%)
Consumer Discretionary	22	32
Consumer Staples	7	11
Energy	6	(1)
Financials	9	12
Health Care	12	14
Industrials	12	12
Information Technology	12	8
Materials	5	5
Telecommunication Services	2	3
Utilities	1	2
Other	12	2
	100	100

Strategy allocation as of December 31, 2015⁶

Ten largest long position holdings (%) as of December 31,  20157
AQR Managed Futures Strategy Fund Class I	6.87
Allergan plc	1.33
AutoZone Incorporated	1.20
Honeywell International Incorporated	1.18
The Home Depot Incorporated	0.95
Lockheed Martin Corporation	0.90
Pioneer Natural Resources Company	0.87
Alphabet Incorporated Class C	0.82
Precision Castparts Corporation	0.82
W.R. Grace & Company	0.78

Ten largest short position holdings (%) as of December 31, 2015⁷

SPDR S&P 500 ETF	(5.85)
Chevron Corporation	(0.85)
Schlumberger Limited	(0.76)
National Oilwell Varco Incorporated	(0.76)
Parker-Hannifin Corporation	(0.65)
Infosys Limited ADR	(0.63)
Apple Incorporated	(0.62)
United Parcel Service Incorporated Class B	(0.61)
Corning Incorporated	(0.52)
Occidental Petroleum Corporation	(0.51)

¹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.12% in acquired fund fees and expenses and 0.63% in dividend and interest expenses on securities sold short. 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.

²  The manager has contractually committed through October 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 2.22% for Class A, 2.97% for Class C, 2.07% for Administrator Class, and 1.97% for Institutional 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, prime broker fees, dividend and interest expenses on securities sold short, and extraordinary expenses are excluded from the cap. Acquired fund fees and expenses incurred by investments made by The Rock Creek Group, LP, a subadviser of the Fund, are included in the cap. Without this cap, the Fund’s returns would have been lower.

³  The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS. You cannot invest directly in an index.

⁴  The Credit Suisse Liquid Alternatives Beta Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of hedge fund managers, as represented by the Credit Suisse Hedge Fund Index. You cannot invest directly in an index.

⁵  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  Strategy allocation is calculated based on the market value of total investments. Cash shown is the sweep cash position of the Fund, and excludes any cash or cash equivalents that may be pledged as collateral for other investments of the Fund. Strategy allocation is subject to change and may have changed since the date specified.

⁷  The ten largest long and short position 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 Wells Fargo Alternative Strategies 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 July 1, 2015 to December 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 7-1-2015		Ending account value 12-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	985.60	$	14.87		2.98	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,010.16	$	15.06		2.98	%
Class C
Actual	$	1,000.00	$	981.60	$	18.63		3.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,006.33	$	18.86		3.74	%
Administrator Class
Actual	$	1,000.00	$	985.60	$	13.88		2.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,011.16	$	14.05		2.78	%
Institutional Class
Actual	$	1,000.00	$	986.60	$	13.48		2.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,011.56	$	13.65		2.70	%

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—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 7

Security name	Shares		Value
Common Stocks: 53.37%
Consumer Discretionary: 12.35%
Auto Components: 0.51%
Magna International Incorporated (b)		27,907	$	1,131,908
Nissin Kogyo Company Limited		1,930		27,996
Tachi-S Company Limited		1,490		23,725
Tokai Rika Company Limited		980		24,120
Toyota Industries Corporation		1,163		62,190
TS Tech Company Limited		850		21,984
				1,291,923
Automobiles: 0.09%
Chongqing Changchun Automobile Class B		29,500		64,950
Fiat Chrysler Automobiles NV		953		13,235
Fuji Heavy Industries Limited		1,090		44,904
Isuzu Motors Limited		3,220		34,688
Nissan Motor Company Limited		1,362		14,261
Peugeot SA †		970		17,003
Renault SA		546		54,652
				243,693
Diversified Consumer Services: 0.13%
Kroton Educacional SA		9,598		22,958
LifeLock Incorporated †		415		5,955
New Oriental Education & Technology Group Incorporated		2,293		71,931
Service Corporation International		6,196		161,220
Sotheby’s		2,285		58,862
				320,926
Hotels, Restaurants & Leisure: 2.93%
Buffalo Wild Wings Incorporated †		4,637		740,297
Caesars Acquisition Company Class A †		1,862		12,680
Caesars Entertainment Corporation †		5,340		42,133
Carnival Corporation (b)		9,635		524,915
ClubCorp Holdings Incorporated		5,171		94,474
Compass Group plc		3,034		52,574
Domino’s Pizza Incorporated		8,716		969,655
Genting Singapore plc		31,700		17,105
H.I.S. Company Limited		605		20,209
Hilton Worldwide Holdings Incorporated		29,050		621,670
Las Vegas Sands Corporation		2,168		95,045
Mandarin Oriental International Limited		17,920		27,776
McDonald’s Corporation (b)		8,760		1,034,906
Melia Hotels International SA		3,108		41,053
MGM Resorts International (b)†		28,872		655,972
OPAP SA		8,857		77,723
Panera Bread Company Class A †		283		55,123
Pinnacle Entertainment Incorporated †		3,261		101,482
Sands China Limited		18,530		62,820

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

8 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Hotels, Restaurants & Leisure (continued)
Sonic Corporation		38,655	$	1,248,943
Starbucks Corporation (b)		9,684		581,331
Starwood Hotels & Resorts Worldwide Incorporated		4,439		307,534
TUI AG		3,296		59,540
Wyndham Worldwide Corporation		349		25,355
Wynn Macau Limited		19,085		22,173
Wynn Resorts Limited		95		6,573
				7,499,061
Household Durables: 0.11%
Cairn Homes plc †		68,488		88,943
Electrolux AB Class B		607		14,645
Funai Electric Company Limited		2,000		16,776
Garmin Limited		549		20,406
Harman International Industries Incorporated		572		53,888
Panahome Corporation		3,370		25,460
Sony Corporation		2,330		57,264
				277,382
Internet & Catalog Retail: 1.30%
Amazon.com Incorporated (b)†		2,451		1,656,607
Askul Corporation		309		12,416
Home Retail Group plc		19,243		28,190
Qliro Group AB †		12,748		18,273
The Priceline Group Incorporated †		445		567,353
TripAdvisor Incorporated †		75		6,394
Vipshop Holdings Limited ADR †		623		9,513
Wayfair Incorporated Class A †		21,282		1,013,449
				3,312,195
Leisure Products: 0.05%
Bandai Namco Holdings Incorporated		1,620		34,226
Performance Sports Group Limited †		2,871		27,648
Sankyo Company Limited		745		27,809
Shimano Incorporated		202		31,019
				120,702
Media: 2.39%
CBS Corporation Class B (b)		5,735		270,291
Clear Channel Outdoor Holdings Incorporated Class A †		4,337		24,244
Comcast Corporation Class A (b)		11,420		644,431
Daiichikosho Company Limited		680		26,983
DISH Network Corporation Class A †		17,463		998,535
JC Decaux SA		17,233		660,624
Liberty Global plc Class A †		2,716		115,050
Liberty Global plc Class C (b)†		5,943		242,296
Liberty Latin America and Caribbean Group Class A †		1,997		82,616
M6 Metropole Television SA		2,572		44,229
Nippon Television Network Corporation		2,280		41,471

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 9

Security name	Shares		Value
Media (continued)
Quebecor Incorporated Class B		1,270	$	31,096
SES SA		3,095		85,761
Sky plc		11,664		191,205
The Walt Disney Company		10,113		1,062,674
Time Warner Incorporated		22,676		1,466,457
TV Asahi Corporation		2,060		35,560
Wolters Kluwer NV †		2,977		99,978
				6,123,501
Multiline Retail: 0.66%
Dollar General Corporation		9,281		667,025
Dollar Tree Incorporated (b)†		13,059		1,008,416
Marks & Spencer Group plc		2,011		13,390
				1,688,831
Specialty Retail: 3.44%
Advance Auto Parts Incorporated (b)		4,496		676,693
AutoNation Incorporated †		19,823		1,182,640
AutoZone Incorporated (b)†		4,149		3,078,184
Chiyoda Company Limited		196		6,099
Hornbach Holding AG & Company KGaA		860		57,245
Jumbo SA		3,080		32,373
Lowe’s Companies Incorporated		438		33,306
Luk Fook Holdings International Limited		6,850		14,469
Nitori Company Limited		331		27,798
O’Reilly Automotive Incorporated †		2,907		736,692
Office Depot Incorporated †		28,807		162,471
Pal Company Limited		850		20,401
Party City Holdco Incorporated †		285		3,679
Rent-A-Center Incorporated		1,359		20,344
Shimamura Company Limited		243		28,458
Signet Jewelers Limited		312		38,591
The Home Depot Incorporated (b)		18,437		2,438,294
The TJX Companies Incorporated		1,021		72,399
Urban Outfitters Incorporated †		1,654		37,629
Vitamin Shoppe Incorporated †		3,392		110,918
Yamada Denki Company Limited		4,851		20,954
Zhongsheng Group Holdings Limited		4,810		2,893
				8,802,530
Textiles, Apparel & Luxury Goods: 0.74%
Brunello Cucinelli SpA		1,272		22,485
Crocs Incorporated †		5,480		56,115
Deckers Outdoor Corporation †		175		8,260
Global Brands Group Holding Limited †		159,720		30,246
Kate Spade & Company †		428		7,606
Nike Incorporated Class B		27,120		1,695,000
Ralph Lauren Corporation		265		29,542
Samsonite International SA		13,800		41,358

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

10 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Textiles, Apparel & Luxury Goods (continued)
Vera Bradley Incorporated †		794	$	12,513
				1,903,125
Consumer Staples: 4.76%
Beverages: 1.51%
Anheuser-Busch InBev NV		781		97,193
Asahi Breweries Limited		925		28,957
Brown-Forman Corporation Class B		6,553		650,582
C&C Group plc		26,214		105,583
Constellation Brands Incorporated Class A		7,095		1,010,612
Diageo plc		3,248		88,696
Heineken NV		4,900		417,563
Molson Coors Brewing Company Class B		645		60,578
Monster Beverage Corporation †		549		81,779
PepsiCo Incorporated (b)		4,783		477,917
The Coca-Cola Company (b)		18,503		794,888
Yantai Changyu Pioneer Wine Company Limited Class B		11,400		41,215
				3,855,563
Food & Staples Retailing: 0.89%
Ain Pharmaciez Incorporated		1,020		48,632
Alimentation Couche-Tard Incorporated Class B		446		19,633
Belc Company Limited		219		7,998
Cocokara Fine Incorporated		179		8,036
Costco Wholesale Corporation		10,220		1,650,530
CVS Health Corporation		142		13,883
E-MART Company Limited		75		12,034
Heiwado Company Limited		606		13,300
J Sainsbury plc		23,347		88,910
Life Corporation		220		5,433
Metro AG		1,601		51,004
Sundrug Company Limited		415		26,683
Walgreens Boots Alliance Incorporated		2,629		223,873
Whole Foods Market Incorporated		3,103		103,951
Yaoko Company Limited		269		11,287
				2,285,187
Food Products: 1.96%
Chocoladefabriken Lindt & Sprungli AG		19		1,415,515
ConAgra Foods Incorporated		1,045		44,057
Greencore Group plc		28,440		148,384
Kikkoman Corporation		1,168		40,468
Meiji Holdings Company Limited		438		36,179
Mondelez International Incorporated Class A (b)		22,722		1,018,854
Nestle SA		929		68,965
Nomad Foods Limited †		2,663		31,423
Post Holdings Incorporated †		1,143		70,523
Suedzucker AG		2,582		51,176
The J.M. Smucker Company		7,209		889,158

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 11

Security name	Shares		Value
Food Products (continued)
The Kraft Heinz Company (b)		16,352	$	1,189,771
				5,004,473
Household Products: 0.26%
Colgate-Palmolive Company (b)		8,559		570,201
Reckitt Benckiser Group plc		753		69,672
The Procter & Gamble Company		438		34,782
				674,655
Personal Products: 0.11%
Avon Products Incorporated		1,485		6,014
Beiersdorf AG		540		49,081
Kose Corporation		577		53,350
Oriflame Holding AG †		2,654		42,533
The Estee Lauder Companies Incorporated Class A		555		48,873
Unilever NV ADR		1,688		73,124
				272,975
Tobacco: 0.03%
British American Tobacco plc		852		47,315
Japan Tobacco Incorporated		990		36,347
				83,662
Energy: 3.85%
Energy Equipment & Services: 0.69%
Halliburton Company (b)		49,233		1,675,891
Helmerich & Payne Incorporated		469		25,115
Hilong Holding Limited		82,440		14,214
McDermott International Incorporated †		1,535		5,142
National Oilwell Varco Incorporated		354		11,855
Petroleum Geo-Services ASA		815		3,330
Schlumberger Limited		416		29,016
Trican Well Service Limited †		6,945		3,212
Vallourec SA		354		3,296
				1,771,071
Oil, Gas & Consumable Fuels: 3.16%
Anadarko Petroleum Corporation (b)		16,255		789,668
BP plc		29,315		152,341
Cabot Oil & Gas Corporation		1,423		25,173
Canadian Natural Resources Limited		1,482		32,352
Canadian Natural Resources Limited - Toronto Exchange		759		16,577
Chevron Corporation		772		69,449
China Suntien Green Energy Corporation H Shares		56,605		9,018
Cobalt International Energy Incorporated †		5,725		30,915
Concho Resources Incorporated †		114		10,586
ConocoPhillips		14,323		668,741
Continental Resources Incorporated †		304		6,986

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

12 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Diamondback Energy Incorporated †		427	$	28,566
Eni SpA		6,304		93,666
Exxon Mobil Corporation		5,517		430,050
Golar LNG Limited		478		7,548
Imperial Oil Limited		2,020		65,810
Japan Petroleum Exploration Company		1,320		35,452
Karoon Gas Australia Limited †		9,469		12,100
Laredo Petroleum Incorporated †		333		2,661
Marathon Oil Corporation		1,322		16,644
Marathon Petroleum Corporation (b)		9,021		467,649
Newfield Exploration Company †		165		5,372
Noble Energy Incorporated (b)		44,850		1,476,911
Phillips 66 (b)		3,031		247,936
Pioneer Natural Resources Company (b)		17,677		2,216,342
Rice Energy Incorporated †		578		6,300
Royal Dutch Shell plc Class B		3,138		71,518
Southwestern Energy Company †		3,945		28,049
Statoil ASA		1,393		19,428
Total SA		3,166		141,936
Tsakos Energy Navigation Limited		131		1,038
Valero Energy Corporation (b)		12,589		890,168
				8,076,950
Financials: 5.52%
Banks: 1.76%
Alpha Bank AE †		14,020		37,572
Banca Popolare dell’Emilia Romagna Scarl		9,266		70,284
Banco Macro SA †		331		19,238
Banco Popular Espanol SA		14,031		46,230
Bangkok Bank PCL - Non-voting		3,935		16,601
Bank of America Corporation		73,369		1,234,800
Bank of Ireland †		76,743		28,100
Bank of Nova Scotia		1,272		51,440
Bank of the Ozarks Incorporated (b)		9,086		449,394
BNP Paribas SA		4,609		260,765
CaixaBank SA		21,939		76,361
Citigroup Incorporated		2,456		127,098
Citizens Financial Group Incorporated		1,445		37,845
Eurobank Ergasias SA †		40,138		44,966
HDFC Bank Limited ADR		534		32,894
HSBC Holdings plc		21,770		171,857
ICICI Bank Limited ADR		15,330		120,034
ING Groep NV		6,693		90,557
Japan Post Bank Company Limited †		1,685		24,533
JPMorgan Chase & Company		2,648		174,847
M&T Bank Corporation		165		19,995
Mitsubishi UFJ Financial Group Incorporated		13,262		82,148
PNC Financial Services Group Incorporated		1,781		169,747
Sberbank of Russia (a)		17,972		25,089

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 13

Security name	Shares		Value
Banks (continued)
Sberbank Sponsored ADR		2,030	$	11,754
Signature Bank (b)†		3,021		463,331
Societe Generale SA		1,860		85,713
Standard Chartered plc		10,135		84,092
State Bank of India		215		7,256
Sumitomo Mitsui Financial Group Incorporated		1,420		53,592
The San-in Godo Bank Limited		2,970		24,155
UniCredit SpA		8,984		49,670
Western Alliance Bancorp (b)†		8,399		301,188
				4,493,146
Capital Markets: 0.75%
Aizawa Securities Company Limited		2,650		15,085
Anima Holding SpA		2,249		19,425
Apollo Global Management LLC Class A (b)		5,308		80,575
EFG International AG		7,682		80,916
Fortress Investment Group LLC Class A		13,685		69,657
Ichiyoshi Securities Company Limited		3,650		33,419
Julius Baer Group Limited		1,320		63,858
Kyokuto Securities Company Limited		1,710		21,556
Matsui Securities Company Limited		620		5,680
OM Asset Management plc		6,362		97,529
SEI Investments Company		15,030		787,572
UBS Group AG		13,343		258,847
WL Ross Holding Corporation †		40,000		398,400
				1,932,519
Consumer Finance: 0.19%
Ally Financial Incorporated †		12,337		229,962
LendingClub Corporation †		765		8,453
Navient Corporation		8,673		99,306
OneMain Holdings Incorporated †		1,044		43,368
Santander Consumer USA Holdings Incorporated †		6,008		95,227
				476,316
Diversified Financial Services: 0.71%
Amundi SA †		1,162		54,528
Hellenic Exchanges SA Holding		7,939		45,589
Intercontinental Exchange Incorporated (b)		1,167		299,055
Japan Exchange Group Incorporated		3,437		53,726
MarketAxess Holdings Incorporated		385		42,962
Markit Limited †		1,880		56,720
McGraw Hill Financial Incorporated		617		60,824
Mitsubishi UFJ Lease & Finance Company Limited		2,762		14,214
Moody’s Corporation		10,809		1,084,575
MSCI Incorporated		901		64,989
Rescap Liquidating Trust †		5,781		47,404
				1,824,586

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

14 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Insurance: 0.94%
ACE Limited		541	$	63,216
Ageas NV		2,412		111,950
Ambac Financial Group Incorporated (b)†		2,667		37,578
American International Group Incorporated		3,453		213,982
Coface SA		3,298		33,418
Delta Lloyd NV		3,583		21,122
MetLife Incorporated		1,375		66,289
Principal Financial Group Incorporated		832		37,423
Saga plc		13,269		39,416
Sony Financial Holdings Incorporated		3,380		60,459
Storebrand ASA †		16,382		64,158
T&D Holdings Incorporated		6,104		80,533
The Chubb Corporation		10,868		1,441,532
Tokio Marine Holdings Incorporated		1,470		56,778
Torchmark Corporation		658		37,611
Unum Group		854		28,430
				2,393,895
Real Estate Management & Development: 0.41%
City Developments Limited		3,220		17,322
Daito Trust Construction Company Limited		465		53,712
Deutsche Wohnen AG		1,889		52,234
Dolphin Capital Investors Limited †		119,097		25,458
LEG Immobilien AG		691		56,317
Leopalace21 Corporation †		6,870		37,185
Realogy Holdings Corporation †		20,354		746,381
Relo Holdings Incorporated		314		37,901
Sumitomo Real Estate Sales Company Limited		785		17,994
				1,044,504
REITs: 0.75%
American Tower Corporation		1,081		104,803
AvalonBay Communities Incorporated		157		28,908
Campus Crest Communities Incorporated		73,987		503,112
Columbia Property Trust Incorporated		796		18,690
GLP J-REIT		57		55,160
Grivalia Properties Real Estate Investment Company		7,581		60,719
Hibernia REIT plc		67,310		102,931
Host Hotels & Resorts Incorporated		969		14,864
Intu Properties plc		23,446		109,538
Irish Residential Properties REIT plc		90,647		115,257
Kennedy Wilson Europe Real Estate plc		5,034		89,523
National Storage REIT		25,440		28,404
New Residential Investment Corporation		6,725		81,776
NorthStar Realty Europe Corporation		5,309		62,699
NorthStar Realty Finance Corporation (b)		15,951		271,646
Public Storage Incorporated (b)		1,113		275,690
				1,923,720

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 15

Security name	Shares		Value
Thrifts & Mortgage Finance: 0.01%
Genworth Mortgage Insurance		8,369	$	16,680
Health Care: 7.44%
Biotechnology: 0.47%
Agios Pharmaceuticals Incorporated †		194		12,594
Alder Biopharmaceuticals Incorporated †		230		7,597
Alnylam Pharmaceuticals Incorporated †		405		38,127
Biogen Incorporated †		188		57,594
Celgene Corporation †		242		28,982
Five Prime Therapeutics Incorporated †		295		12,243
Gilead Sciences Incorporated (b)		4,386		443,820
Incyte Corporation †		2,408		261,147
Portola Pharmaceuticals Incorporated †		1,184		60,917
PTC Therapeutics Incorporated †		210		6,804
Regeneron Pharmaceuticals Incorporated †		188		102,060
Tesaro Incorporated †		717		37,513
Vertex Pharmaceuticals Incorporated †		1,089		137,029
				1,206,427
Health Care Equipment & Supplies: 1.77%
ASAHI INTECC Company Limited		495		22,747
Becton Dickinson & Company		9,759		1,503,764
Corindus Vascular Robotics Incorporated †		5,930		19,035
Edwards Lifesciences Corporation †		528		41,701
Hologic Incorporated †		1,298		50,220
Hoya Corporation		578		23,636
IDEXX Laboratories Incorporated †		13,926		1,015,484
Medtronic plc (b)		16,951		1,303,871
Paramount Bed Holdings Company Limited		508		18,025
Sysmex Corporation		902		57,858
Zimmer Holdings Incorporated		4,596		471,504
				4,527,845
Health Care Providers & Services: 1.30%
Acadia Healthcare Company Incorporated †		556		34,728
Brookdale Senior Living Incorporated †		731		13,494
Cardinal Health Incorporated		682		60,882
Envision Healthcare Holdings Incorporated †		1,400		36,358
Express Scripts Holding Company †		7,912		691,588
HCA Holdings Incorporated (b)†		3,707		250,704
McKesson Corporation (b)		8,580		1,692,233
UnitedHealth Group Incorporated		611		71,878
Universal Health Services Incorporated Class B		3,891		464,936
				3,316,801
Health Care Technology: 0.03%
Agfa-Gevaert NV †		7,609		43,330
Careview Communications Incorporated †		14,890		4,288
Cerner Corporation †		471		28,340
				75,958

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

16 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Life Sciences Tools & Services: 0.65%
Illumina Incorporated †		327	$	62,766
Thermo Fisher Scientific Incorporated		11,280		1,600,068
				1,662,834
Pharmaceuticals: 3.22%
Allergan plc †		10,854		3,391,875
Almirall SA		2,895		58,511
AstraZeneca plc		4,821		325,646
AstraZeneca plc ADR		3,704		125,751
Bristol-Myers Squibb Company (b)		15,414		1,060,329
Chugai Pharmaceutical Company Limited		1,273		44,372
Eisai Company Limited		2,301		152,213
H. Lundbeck AS †		2,468		84,271
Ipsen SA		5,415		358,785
Johnson & Johnson (b)		5,416		556,332
Merck & Company Incorporated		2,776		146,628
Mylan NV †		3,732		201,779
Ono Pharmaceutical Company Limited		1,246		222,176
Pfizer Incorporated (b)		11,104		358,437
Roche Holding AG		261		72,325
Santen Pharmaceutical Company Limited		4,616		75,995
Shionogi & Company Limited		1,651		74,675
Teva Pharmaceutical Industries Limited ADR (b)		12,023		789,190
TherapeuticsMD Incorporated †		9,324		96,690
UCB SA		375		33,849
				8,229,829
Industrials: 7.20%
Aerospace & Defense: 3.68%
Airbus Group NV		3,954		266,449
Cobham plc		16,914		70,631
Finmeccanica SpA †		3,715		51,654
Honeywell International Incorporated (b)		29,025		3,006,119
Lockheed Martin Corporation (b)		10,587		2,298,968
Precision Castparts Corporation (b)		8,997		2,087,394
Qinetiq Group plc		17,577		70,057
Raytheon Company (b)		2,841		353,790
Safran SA		527		36,206
Thales SA		766		57,335
TransDigm Group Incorporated †		4,519		1,032,366
United Technologies Corporation		709		68,114
				9,399,083
Air Freight & Logistics: 0.66%
FedEx Corporation (b)		9,911		1,476,640
PostNL †		22,921		86,938
United Parcel Service Incorporated Class B		865		83,239
XPO Logistics Incorporated †		972		26,487
				1,673,304

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 17

Security name		Shares		Value
Airlines: 0.09%
Aegean Airlines			2,602	$	19,266
Air Canada †			610		4,501
AirAsia Bhd			29,810		8,918
Deutsche Lufthansa AG †			7,827		123,284
Japan Airlines Company Limited			2,332		83,469
					239,438
Building Products: 0.23%
Builders FirstSource Incorporated †			1,085		12,022
Compagnie de Saint-Gobain SA			6,989		302,870
Fortune Brands Home & Security Incorporated			1,289		71,540
Owens Corning Incorporated			1,004		47,218
Sanwa Holdings Corporation			7,845		62,046
Wienerberger AG			4,666		86,472
					582,168
Commercial Services & Supplies: 0.06%
Aeon Delight Company Limited			760		24,383
Clean Harbors Incorporated †			145		6,039
Gategroup Holding AG			1,342		58,872
Nippon Kanzai Company Limited			1,370		21,676
Spotless Group Holdings Limited			36,766		28,808
					139,778
Construction & Engineering: 0.15%
Balfour Beatty plc †			25,948		103,350
Ellaktor SA †			6,922		10,868
Fomento de Construcciones y Contratas SA †			2,752		20,872
Hazama Ando Corporation			3,600		19,412
JGC Corporation			1,490		22,806
Kinden Corporation			3,410		43,481
Nippo Corporation			1,790		29,107
Obayashi Corporation			1,894		17,476
Taisei Corporation			4,981		32,810
Vinci SA			1,376		88,194
	��				388,376
Electrical Equipment: 0.07%
Capstone Turbine Corporation †			782		1,095
Denyo Company Limited			1,425		22,247
Eaton Corporation plc			606		31,536
Generac Holdings Incorporated †			665		19,797
Schneider Electric SE			956		54,305
SolarCity Corporation †			415		21,173
Ushio Incorporated			1,590		21,926
Zumtobel Group AG			410		10,329
					182,408

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

18 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Industrial Conglomerates: 0.68%
Beijing Enterprises Holdings Limited		7,140	$	43,042
Danaher Corporation		7,713		716,383
General Electric Company (b)		24,860		774,389
Koninklijke Philips Electronics NV		1,760		44,923
Rheinmetall AG		2,542		168,971
				1,747,708
Machinery: 0.11%
Arcam AB †		1,115		24,235
Atlas Copco AB Class A		1,234		30,264
Ishikawajima-Harima Heavy Industries Company Limited		7,000		19,323
Jain Irrigation Systems Limited		46,930		24,492
Kennametal Incorporated		1,176		22,579
Mitsubishi Heavy Industries Limited		5,200		22,737
Namura Shipbuilding Company Limited		2,350		19,313
Sandvik AB		2,302		20,067
Star Micronics Company Limited		1,610		21,008
Sulzer AG		325		30,548
Takuma Company Limited		3,630		29,787
Toshiba Machine Company Limited		6,680		22,656
				287,009
Marine: 0.04%
DS Norden AS †		2,125		37,678
Irish Continental Group plc		7,143		42,027
Kuehne & Nagel International AG		202		27,674
Scorpio Bulkers Incorporated †		129		1,277
				108,656
Professional Services: 0.11%
Adecco SA		925		63,309
Experian Group Limited		3,263		57,672
Hays plc		22,326		47,949
Recruit Holdings Company Limited		985		28,953
TechnoPro Holdings Incorporated		1,459		42,581
USG People NV		2,806		52,203
				292,667
Road & Rail: 1.14%
Avis Budget Group Incorporated †		4,927		178,801
Canadian National Railway Company		1,335		74,628
CSX Corporation		48,269		1,252,581
DSV AS		1,171		46,095
East Japan Railway Company		362		34,088
Genesee & Wyoming Incorporated Class A †		639		34,308
Hitachi Transport System Limited		740		12,904
Old Dominion Freight Line Incorporated (b)†		5,886		347,686
Swift Transportation Company †		645		8,914
Union Pacific Corporation		11,372		889,290

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 19

Security name	Shares		Value
Road & Rail (continued)
West Japan Railway Company		597	$	41,266
				2,920,561
Trading Companies & Distributors: 0.14%
Aercap Holdings NV †		2,659		114,762
Fastenal Company		1,139		46,494
Inaba Denki Sangyo Company Limited		770		24,602
Itochu Corporation		3,040		35,958
Kuroda Electric Company Limited		1,580		29,190
Rexel SA		2,831		37,697
SIG plc		17,552		37,091
Yamazen Corporation		2,110		19,323
				345,117
Transportation Infrastructure: 0.04%
Groupe Eurotunnel SE		5,963		74,186
Hamburger Hafen Und Logistik AG		1,463		22,354
Macquarie Infrastructure Company LLC		72		5,227
				101,767
Information Technology: 7.08%
Communications Equipment: 0.13%
ARRIS Group Incorporated †		1,769		54,078
Cisco Systems Incorporated		2,174		59,035
Motorola Solutions Incorporated		384		26,285
ParkerVision Incorporated †		9,325		2,168
Radware Limited †		5,287		81,103
Ruckus Wireless Incorporated †		10,642		113,976
				336,645
Electronic Equipment, Instruments & Components: 0.09%
Alps Electric Company Limited		2,137		57,951
Amano Corporation		1,830		24,752
CDW Corporation of Delaware		1,559		65,540
Hitachi High Technologies Corporation		830		22,446
Hosiden Corporation		4,090		23,006
Nichicon Corporation		2,050		16,026
WPG Holdings Company Limited		32,240		30,606
				240,327
Internet Software & Services: 2.54%
Alibaba Group Holding Limited ADR †		676		54,939
Alphabet Incorporated Class A (b)†		2,275		1,769,973
Alphabet Incorporated Class C (b)†		2,768		2,100,580
Baidu Incorporated ADR †		153		28,923
Bitauto Holdings Limited ADR †		235		6,646
ChinaCache International Holdings Limited ADR †		890		7,334
COOKPAD Incorporated		1,198		25,432

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

20 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Internet Software & Services (continued)
CoStar Group Incorporated †		551	$	113,886
Dena Company Limited		1,490		23,298
Dip Corporation		677		13,866
Envestnet Incorporated †		310		9,254
Facebook Incorporated Class A (b)†		10,871		1,137,759
Gogo Incorporated †		779		13,866
Monster Worldwide Incorporated †		1,167		6,687
Naver Corporation		54		30,113
Quotient Technology Incorporated †		2,416		16,477
Rackspace Hosting Incorporated †		5,401		136,753
Sohu.com Incorporated †		90		5,147
Tencent Holdings Limited		45,356		888,069
United Internet AG		1,054		57,948
Yandex NV Class A †		2,026		31,849
Zillow Group Incorporated Class C †		300		7,044
				6,485,843
IT Services: 1.00%
Accenture plc Class A		891		93,110
ALTEN SA		703		40,682
Amdocs Limited		5,058		276,015
Automatic Data Processing Incorporated		649		54,983
Cerved Information Solutions SpA †		9,484		78,778
Cognizant Technology Solutions Corporation Class A †		13,072		784,581
Computer Sciences Corporation		5,493		179,511
CSRA Incorporated		2,700		81,000
Devoteam SA		457		16,559
Fujitsu Limited		5,667		28,285
GFI Informatique SA		1,115		10,082
MasterCard Incorporated Class A		7,290		709,754
Nomura Research Institute Limited		757		29,072
OBIC Company Limited		657		34,778
Paysafe Group plc †		2,706		14,725
SCSK Corporation		628		25,232
Sopra Steria Group		668		78,552
Wellnet Corporation		814		20,825
				2,556,524
Semiconductors & Semiconductor Equipment: 0.67%
Applied Materials Incorporated		1,430		26,698
ARM Holdings plc ADR		4,759		215,297
Broadcom Corporation Class A		21,461		1,240,875
Cypress Semiconductor Corporation		687		6,739
GCL-Poly Energy Holdings Limited (i)		49,930		7,424
Globalwafers Company Limited		6,283		14,775
Kontron AG †		3,778		12,379
Micron Technology Incorporated †		492		6,967
Micronas Semiconductor Holding AG		3,968		29,237
Silicon Motion Technology Corporation		1,162		36,440

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 21

Security name	Shares		Value
Semiconductors & Semiconductor Equipment (continued)
Sumco Corporation		3,601	$	27,168
SunEdison Incorporated †		1,620		8,246
SunEdison Semiconductor Limited †		1,085		8,506
SunPower Corporation †		969		29,080
Synaptics Incorporated †		324		26,030
Tokyo Seimitsu Company Limited		780		17,293
				1,713,154
Software: 1.30%
Activision Blizzard Incorporated		674		26,091
Adobe Systems Incorporated †		753		70,737
CDK Global Incorporated		1,918		91,047
Citrix Systems Incorporated (b)†		5,035		380,898
CommVault Systems Incorporated †		3,273		128,793
EnerNOC Incorporated †		1,179		4,539
Intuit Incorporated		1,625		156,813
Microsoft Corporation (b)		27,371		1,518,543
Nintendo Company Limited		512		70,405
Nippon System Development Company Limited		1,780		25,753
Oracle Corporation		1,825		66,667
PTC Incorporated (b)†		6,728		232,991
ServiceNow Incorporated †		228		19,736
Symantec Corporation		8,506		178,626
Tangoe Incorporated †		485		4,069
Verint Systems Incorporated †		1,080		43,805
VMware Incorporated Class A †		4,481		253,490
Xura Incorporated †		1,903		46,776
				3,319,779
Technology Hardware, Storage & Peripherals: 1.35%
Canon Incorporated		765		23,141
EMC Corporation (b)		41,923		1,076,583
Hewlett Packard Enterprise Company (b)		11,145		169,404
HP Incorporated		56,958		674,383
Samsung Electronics Company Limited		21		22,398
Stratasys Limited †		186		4,367
Western Digital Corporation		24,529		1,472,966
				3,443,242
Materials: 3.09%
Chemicals: 2.10%
Akzo Nobel NV		890		59,469
Cabot Corporation		651		26,613
Celanese Corporation Series A		443		29,827
CF Industries Holdings Incorporated		26,731		1,090,892
Daicel Chemical Industries Limited		3,255		48,441
Methanex Corporation		609		20,103
Platform Specialty Products Corporation †		4,345		55,746
Praxair Incorporated		702		71,885

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

22 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares		Value
Chemicals (continued)
Shin-Etsu Chemical Company Limited		201	$	10,928
The Chemours Company		629		3,371
The Sherwin-Williams Company (b)		7,450		1,934,020
Tokyo Ohka Kogyo Company Limited		560		17,795
W.R. Grace & Company †		20,066		1,998,373
Wacker Chemie AG		74		6,187
				5,373,650
Construction Materials: 0.67%
BRAAS Monier Building Group SA		4,217		121,697
Buzzi Unicem SpA		8,511		152,562
CRH plc		3,856		111,203
CRH plc - London Exchange		2,247		65,054
LafargeHolcim Limited - Switzerland Exchange		3,056		153,029
Martin Marietta Materials Incorporated		7,342		1,002,770
Sumitomo Osaka Cement Company Limited		7,110		26,076
Taiheiyo Cement Corporation		7,850		22,924
Vicat SA		723		43,482
				1,698,797
Containers & Packaging: 0.16%
Berry Plastics Group Incorporated †		5,987		216,610
Crown Holdings Incorporated †		552		27,986
Packaging Corporation of America		864		54,475
Smurfit Kappa Group plc		3,769		96,528
				395,599
Metals & Mining: 0.14%
Anglo American plc		5,663		24,845
Barrick Gold Corporation		13,103		96,700
Bekaert SA		1,501		46,251
Constellium NV Class A †		1,498		11,535
Freeport-McMoRan Incorporated		5,292		35,827
Lonmin plc †		3,775		4,620
Nucor Corporation		386		15,556
Reliance Steel & Aluminum Company		1,107		64,106
Salzgitter AG		1,607		39,271
Yamato Kogyo Company Limited		1,000		25,498
				364,209
Paper & Forest Products: 0.02%
Louisiana-Pacific Corporation †		494		8,897
Norbord Incorporated		2,440		47,523
				56,420
Telecommunication Services: 1.24%
Diversified Telecommunication Services: 0.93%
Cellnex Telecom SAU		10,413		194,691

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 23

Security name	Shares		Value
Diversified Telecommunication Service (continued)
Hellenic Telecommunications Organization SA		9,212	$	92,194
Level 3 Communications Incorporated †		262		14,242
Nippon Telegraph & Telephone Corporation		2,130		84,770
Orange SA		4,626		77,373
Sunrise Communications Group AG †144A		4,829		284,660
Telecom Italia SpA †		19,186		24,315
Telefonica SA		5,734		63,613
Verizon Communications Incorporated (b)		33,240		1,536,353
				2,372,211
Wireless Telecommunication Services: 0.31%
KDDI Corporation		1,250		32,463
Mobistar SA †		2,620		63,531
SoftBank Group Corporation		522		26,346
T-Mobile US Incorporated (b)†		17,004		665,196
				787,536
Utilities: 0.84%
Electric Utilities: 0.32%
Exelon Corporation		647		17,967
Iberdrola SA		2,814		19,948
NextEra Energy Incorporated (b)		7,174		745,307
Power Assets Holdings Limited		3,830		35,112
				818,334
Gas Utilities: 0.02%
China Resources Gas Group Limited		5,893		17,563
UGI Corporation		882		29,776
				47,339
Independent Power & Renewable Electricity Producers: 0.04%
China Longyuan Power Group Corporation H Shares		56,044		42,144
Huadian Fuxin Energy Corporation Limited H Shares		46,261		13,166
Huaneng Renewables Corporation Limited H Shares		112,180		33,292
Pattern Energy Group Incorporated		205		4,287
				92,889
Multi-Utilities: 0.45%
E.ON SE		3,556		34,145
Engie SA		4,472		79,213
National Grid plc		3,379		46,602
RWE AG		1,958		24,685
Sempra Energy (b)		9,636		905,880
Suez Environnement Company SA		3,351		62,675
				1,153,200
Water Utilities: 0.01%
Guangdong Investment Limited		28,236		39,876
Total Common Stocks (Cost $131,907,923)				136,437,079

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

24 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 2.10%
Consumer Discretionary: 1.40%
Diversified Consumer Services: 0.01%
APX Group Incorporated		6.38	%		12-1-2019	$	40,000	$	38,300
Hotels, Restaurants & Leisure: 0.69%
Caesars Entertainment Operating Company Incorporated (s)		8.50			2-15-2020		25,000		19,000
Caesars Entertainment Operating Company Incorporated (s)		9.00			2-15-2020		690,000		524,400
Caesars Entertainment Operating Company Incorporated (s)		9.00			2-15-2020		30,000		22,800
Caesars Entertainment Operating Company Incorporated (s)		10.00			12-15-2018		9,933		2,955
Caesars Entertainment Operating Company Incorporated (s)		10.00			12-15-2018		35,000		10,413
Caesars Entertainment Operating Company Incorporated (s)		11.25			6-1-2017		1,502,000		1,126,500
Yum! Brands Incorporated		6.88			11-15-2037		60,000		50,990
									1,757,058
Media: 0.18%
iHeartCommunications Incorporated		9.00			3-1-2021		100,000		69,750
iHeartCommunications Incorporated		10.63			3-15-2023		89,000		61,855
iHeartCommunications Incorporated		11.25			3-1-2021		240,000		168,000
Radio One Incorporated 144A		7.38			4-15-2022		170,000		151,300
									450,905
Multiline Retail: 0.01%
Neiman Marcus Group Limited 144A		8.00			10-15-2021		40,000		29,600
Neiman Marcus Group Limited (PIK at 9.50%) 144A¥		8.75			10-15-2021		15,000		9,300
									38,900
Specialty Retail: 0.51%
Guitar Center Incorporated 144A		6.50			4-15-2019		250,000		212,500
New Albertsons Incorporated (i)		6.52			4-10-2028		100,000		82,750
New Albertsons Incorporated (i)		6.57			2-23-2028		545,000		453,713
New Albertsons Incorporated		6.63			6-1-2028		20,000		16,100
New Albertsons Incorporated (i)		7.11			7-22-2027		160,000		136,000
New Albertsons Incorporated (i)		7.15			7-23-2027		15,000		12,150
New Albertsons Incorporated		7.45			8-1-2029		115,000		101,775
New Albertsons Incorporated		7.75			6-15-2026		25,000		23,000
New Albertsons Incorporated		8.00			5-1-2031		255,000		232,050
New Albertsons Incorporated		8.70			5-1-2030		25,000		23,625
									1,293,663
Financials: 0.30%
Diversified Financial Services: 0.08%
Lehman Brothers Holdings Incorporated (s)		0.00			12-30-2016		655,000		48,306
Lehman Brothers Holdings Incorporated (s)		7.88			5-8-2018		1,350,000		169,164
									217,470
Insurance: 0.19%
Ambac Assurance Corporation 144A		5.10			6-7-2020		470,772		482,541

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 25

Security name	Interest rate			Maturity date		Principal		Value
REITs: 0.03%
Starwood Waypoint Residential Trust		3.00	%		7-1-2019	$	70,000	$	64,663
Industrials: 0.18%
Electrical Equipment: 0.18%
SolarCity Corporation (b)		1.63			11-1-2019		575,000		464,313
Information Technology: 0.21%
Communications Equipment: 0.01%
Riverbed Technology Incorporated 144A		8.88			3-1-2023		20,000		18,500
IT Services: 0.13%
DynCorp International Incorporated		10.38			7-1-2017		465,000		344,100
Semiconductors & Semiconductor Equipment: 0.07%
SunEdison Incorporated		0.25			1-15-2020		40,000		15,400
SunEdison Incorporated		2.00			10-1-2018		30,000		16,369
SunEdison Incorporated		2.38			4-15-2022		125,000		49,375
SunEdison Incorporated		2.63			6-1-2023		120,000		43,725
SunEdison Incorporated		3.38			6-1-2025		140,000		51,013
									175,882
Materials: 0.01%
Metals & Mining: 0.01%
Thompson Creek Metals Company Incorporated		7.38			6-1-2018		180,000		34,196
Thompson Creek Metals Company Incorporated		12.50			5-1-2019		15,000		3,000
									37,196
Total Corporate Bonds and Notes (Cost $6,393,786)									5,383,491
						Shares
Exchange-Traded Funds: 0.33%
iShares MSCI ACWI ETF							14,313		798,952
TOPIX Exchange Traded Fund							2,770		36,139
Total Exchange-Traded Funds (Cost $835,859)									835,091
						Principal
Foreign Corporate Bonds and Notes @: 0.05%
Consumer Discretionary: 0.05%
Textiles, Apparel & Luxury Goods: 0.05%
Boardriders SA (EUR)		8.88			12-15-2017		125,000		120,561
Total Foreign Corporate Bonds and Notes (Cost $130,352)									120,561
						Shares
Investment Companies: 6.87%
Alternative Investment Funds: 6.87%
AQR Managed Futures Strategy Fund Class I							1,724,351		17,553,888
Total Investment Companies (Cost $18,295,101)									17,553,888

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

26 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 0.28%
Puerto Rico: 0.28%
Puerto Rico Commonwealth Public Improvement Series A (GO Revenue) (i)		5.75	%		7-1-2041	$	5,000	$	3,288
Puerto Rico Commonwealth Refunding Public Improvement Series A (GO Revenue) (i)		5.00			7-1-2041		10,000		6,450
Puerto Rico Commonwealth Refunding Public Improvement Series A (GO Revenue) (i)		5.13			7-1-2037		95,000		61,418
Puerto Rico Commonwealth Unrefunded Balance Public Improvement Series A (GO Revenue) (i)		5.00			7-1-2033		80,000		51,626
Puerto Rico Commonwealth Unrefunded Balance Public Improvement Series A (GO Revenue) (i)		5.00			7-1-2034		10,000		6,454
Puerto Rico Commonwealth Unrefunded Balance Public Improvement Series A (GO Revenue) (i)		5.13			7-1-2031		10,000		6,479
Puerto Rico Commonwealth Unrefunded Balance Public Improvement Series B (GO Revenue) (i)		5.25			7-1-2032		5,000		3,239
Puerto Rico Public Buildings Authority Government Facilities Revenue Bonds Series T (Miscellaneous Revenue) (i)		5.60			7-1-2030		650,000		377,618
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2036		110,000		60,347
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2037		90,000		49,350
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2038		65,000		35,669
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2039		15,000		8,232
Puerto Rico Sales Tax Financing Corporation Series C (Tax Revenue) (i)		5.25			8-1-2040		70,000		39,550
Puerto Rico Sales Tax Financing Corporation Series C (Tax Revenue) (i)		6.00			8-1-2038		10,000		5,488
Total Municipal Obligations (Cost $848,162)									715,208
				Expiration date		Shares
Participation Notes: 0.12%
Financials: 0.12%
Banks: 0.12%
HSBC Bank plc (National Commercial Bank) †					11-17-2020		22,362		304,276
Total Participation Notes (Cost $393,429)									304,276
	Dividend yield
Preferred Stocks: 0.29%
Financials: 0.01%
Thrifts & Mortgage Finance: 0.01%
FHLMC †		0.00					700		2,254
FHLMC †		0.00					294		720
FHLMC †		0.00					493		1,183
FNMA †		0.00					850		2,787
FNMA †		0.00					559		1,398
									8,342
Health Care: 0.24%
Pharmaceuticals: 0.24%
Allergan plc ±		3.99					600		618,108

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 27

Security name	Dividend yield					Shares		Value
Industrials: 0.02%
Transportation Infrastructure: 0.02%
Uber Technologies Incorporated †(a)(i)		0.00	%				1,216	$	59,307
Information Technology: 0.02%
Semiconductors & Semiconductor Equipment: 0.02%
SunEdison Incorporated ±		6.20					174		52,679
Total Preferred Stocks (Cost $806,455)									738,436
	Strike price			Expiration date		Contracts
Purchased Call Options: 0.01%
Aetna Incorporated (a)	$	130			1-15-2016		1,500		5
Cigna Corporation (a)		140			1-15-2016		2,000		15,672
Cigna Corporation (a)		155			1-15-2016		4,000		2,163
Market Vectors Semiconductor ETF		55			2-19-2016		3,500		3,499
Total Purchased Call Options (Cost $27,732)									21,339
Purchased Put Options: 0.30%
Apple Incorporated		115			2-19-2016		5,400		60,534
Avago Technologies Limited		125			1-15-2016		700		154
S&P 500 Index (a)		1,850			12-16-2016		5,200		461,723
S&P 500 Index (a)		1,900			6-17-2016		4,300		246,256
Total Purchased Put Options (Cost $844,710)									768,667
Rights: 0.00%
Information Technology: 0.00%
Semiconductors & Semiconductor Equipment: 0.00%
GCL-Poly Energy Holdings Limited †(a)					1-20-2016		9,986		83
Total Rights (Cost $0)									83
Warrants: 0.02%
Financials: 0.02%
Banks: 0.01%
JPMorgan Chase & Company †					10-28-2018		2,266		53,682
Capital Markets: 0.01%
WL Ross Holding Corporation †					6-11-2019		40,000		13,200
Total Warrants (Cost $69,525)									66,882
	Interest rate			Maturity date		Principal
Yankee Corporate Bonds and Notes: 0.69%
Consumer Discretionary: 0.48%
Media: 0.48%
Altice SA 144A		7.63	%		2-15-2025	$	700,000		603,750
Numericable Group SA 144A		6.00			5-15-2022		640,000		620,800
									1,224,550

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

28 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal			Value
Information Technology: 0.14%
Communications Equipment: 0.14%
Intelsat Luxembourg SA		6.75	%		6-1-2018	$	490,000		$	365,050
Materials: 0.07%
Metals & Mining: 0.07%
Hudbay Minerals Incorporated		9.50			10-1-2020		245,000			179,463
Total Yankee Corporate Bonds and Notes (Cost $1,979,932)										1,769,063
	Yield					Shares
Short-Term Investments: 22.87%
Investment Companies: 21.07%
Wells Fargo Cash Investment Money Market Fund, Select Class (l)(u)		0.33					53,865,635			53,865,635
						Principal
U.S. Treasury Securities: 1.80%
U.S. Treasury Bill #(z)		0.10			3-17-2016	$	4,600,000			4,599,066
Total Short-Term Investments (Cost $58,464,606)										58,464,701
						Shares
Securities Sold Short: (23.62%)
Common Stocks: (16.47%)
Consumer Discretionary: (1.13%)
Automobiles: (0.29%)
Tesla Motors Incorporated †							(1,160	)		(278,412	)
Toyota Motor Corporation ADR							(3,894	)		(479,118	)
										(757,530	)
Hotels, Restaurants & Leisure: (0.06%)
Domino’s Pizza Incorporated							(126	)		(14,018	)
Royal Caribbean Cruises Limited							(1,281	)		(129,650	)
Starbucks Corporation							(152	)		(9,125	)
Texas Roadhouse Incorporated							(178	)		(6,367	)
										(159,160	)
Internet & Catalog Retail: (0.20%)
Netflix Incorporated †							(4,502	)		(514,936	)
Media: (0.09%)
The Walt Disney Company							(2,229	)		(234,223	)
Multiline Retail: (0.23%)
Kohl’s Corporation							(5,019	)		(239,055	)
Target Corporation							(4,664	)		(338,653	)
										(577,708	)

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 29

Security name	Shares			Value
Specialty Retail: (0.13%)
L Brands Incorporated		(123	)	$	(11,786	)
Ross Stores Incorporated		(272	)		(14,636	)
Staples Incorporated		(6,292	)		(59,585	)
The TJX Companies Incorporated		(324	)		(22,975	)
Tiffany & Company		(3,031	)		(231,235	)
					(340,217	)
Textiles, Apparel & Luxury Goods: (0.13%)
The Swatch Group AG		(923	)		(320,525	)
Consumer Staples: (0.42%)
Food & Staples Retailing: (0.41%)
Tesco plc †		(95,417	)		(209,657	)
The Kroger Company		(295	)		(12,340	)
Wal-Mart Stores Incorporated		(1,877	)		(115,060	)
Walgreens Boots Alliance Incorporated		(5,348	)		(455,409	)
Woolworths Limited		(13,922	)		(247,011	)
					(1,039,477	)
Food Products: (0.01%)
Hormel Foods Corporation		(398	)		(31,474	)
Energy: (4.25%)
Energy Equipment & Services: (1.53%)
National Oilwell Varco Incorporated		(58,244	)		(1,950,592	)
Schlumberger Limited		(27,969	)		(1,950,838	)
					(3,901,430	)
Oil, Gas & Consumable Fuels: (2.72%)
Apache Corporation		(17,282	)		(768,531	)
Chevron Corporation		(24,039	)		(2,162,549	)
Energy Transfer Equity LP		(50,847	)		(698,638	)
EOG Resources Incorporated		(2,259	)		(159,915	)
Hess Corporation		(15,002	)		(727,297	)
Kinder Morgan Incorporated		(31,434	)		(468,995	)
Marathon Petroleum Corporation		(13,184	)		(683,459	)
Occidental Petroleum Corporation		(19,181	)		(1,296,827	)
					(6,966,211	)
Financials: (0.87%)
Banks: (0.13%)
Canadian Imperial Bank of Commerce		(5,185	)		(341,707	)
Insurance: (0.41%)
ACE Limited		(6,543	)		(764,550	)
Aon plc		(3,175	)		(292,767	)
					(1,057,317	)

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

30 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Shares			Value
REITs: (0.33%)
Equinix Incorporated		(1,087	)	$	(328,709	)
HCP Incorporated		(1,684	)		(64,396	)
Iron Mountain Incorporated		(7,813	)		(211,029	)
Ventas Incorporated		(4,066	)		(229,444	)
					(833,578	)
Health Care: (2.07%)
Health Care Equipment & Supplies: (0.65%)
Abbott Laboratories		(6,844	)		(307,364	)
Baxter International Incorporated		(8,512	)		(324,733	)
Intuitive Surgical Incorporated †		(734	)		(400,881	)
Stryker Corporation		(3,941	)		(366,277	)
Varian Medical Systems Incorporated †		(3,149	)		(254,439	)
					(1,653,694	)
Health Care Providers & Services: (1.21%)
Aetna Incorporated		(9,479	)		(1,024,869	)
AmerisourceBergen Corporation		(1,897	)		(196,738	)
Anthem Incorporated		(4,154	)		(579,234	)
Cardinal Health Incorporated		(4,127	)		(368,417	)
DaVita HealthCare Partners Incorporated †		(5,894	)		(410,871	)
HCA Holdings Incorporated †		(3,835	)		(259,361	)
Humana Incorporated		(672	)		(119,959	)
UnitedHealth Group Incorporated		(1,201	)		(141,286	)
					(3,100,735	)
Health Care Technology: (0.03%)
Cerner Corporation †		(1,176	)		(70,760	)
Pharmaceuticals: (0.18%)
Allergan plc †		(529	)		(165,313	)
Johnson & Johnson		(2,884	)		(296,244	)
					(461,557	)
Industrials: (2.68%)
Aerospace & Defense: (0.29%)
The Boeing Company		(1,815	)		(262,431	)
United Technologies Corporation		(5,031	)		(483,328	)
					(745,759	)
Air Freight & Logistics: (0.61%)
United Parcel Service Incorporated Class B		(16,132	)		(1,552,383	)
Electrical Equipment: (0.04%)
SolarCity Corporation †		(1,943	)		(99,132	)

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 31

Security name	Shares			Value
Industrial Conglomerates: (0.08%)
Danaher Corporation		(2,402	)	$	(223,098	)
Machinery: (1.51%)
Caterpillar Incorporated		(14,160	)		(962,314	)
Deere & Company		(3,044	)		(232,166	)
Illinois Tool Works Incorporated		(10,892	)		(1,009,471	)
Parker-Hannifin Corporation		(17,033	)		(1,651,860	)
					(3,855,811	)
Trading Companies & Distributors: (0.15%)
Fastenal Company		(9,494	)		(387,545	)
Information Technology: (4.00%)
Electronic Equipment, Instruments & Components: (0.52%)
Corning Incorporated		(72,773	)		(1,330,290	)
Internet Software & Services: (0.26%)
LinkedIn Corporation Class A †		(2,031	)		(457,137	)
Zillow Group Incorporated Class C †		(8,666	)		(203,478	)
					(660,615	)
IT Services: (1.12%)
Infosys Limited ADR		(95,905	)		(1,606,409	)
International Business Machines Corporation		(9,088	)		(1,250,690	)
					(2,857,099	)
Semiconductors & Semiconductor Equipment: (0.43%)
Avago Technologies Limited		(4,077	)		(591,777	)
Micron Technology Incorporated †		(15,484	)		(219,253	)
Skyworks Solutions Incorporated		(3,238	)		(248,776	)
SunEdison Incorporated †		(8,376	)		(42,634	)
					(1,102,440	)
Software: (1.05%)
Activision Blizzard Incorporated		(5,626	)		(217,782	)
Adobe Systems Incorporated †		(9,669	)		(908,306	)
Electronic Arts Incorporated †		(11,366	)		(781,072	)
Mobileye NV †		(5,256	)		(222,224	)
Red Hat Incorporated †		(3,031	)		(250,997	)
SAP SE		(893	)		(70,862	)
Workday Incorporated Class A †		(2,933	)		(233,701	)
					(2,684,944	)
Technology Hardware, Storage & Peripherals: (0.62%)
Apple Incorporated		(14,985	)		(1,577,321	)

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

32 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name						Shares			Value
Materials: (1.00%)
Chemicals: (0.77%)
Air Products & Chemicals Incorporated							(6,459	)	$	(840,380	)
LyondellBasell Industries NV Class A							(2,533	)		(220,118	)
Potash Corporation of Saskatchewan Incorporated							(11,341	)		(194,158	)
Praxair Incorporated							(5,013	)		(513,331	)
The Mosaic Company							(7,766	)		(214,264	)
										(1,982,251	)
Metals & Mining: (0.23%)
First Quantum Minerals Limited							(37,149	)		(139,070	)
Glencore plc							(336,421	)		(445,800	)
										(584,870	)
Telecommunication Services: (0.05%)
Diversified Telecommunication Services: (0.05%)
AT&T Incorporated							(3,707	)		(127,558	)
Total Common Stocks - Securities Sold Short (Proceeds $(45,040,628))										(42,133,355	)
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: (0.01%)
Utilities: (0.01%)
Independent Power & Renewable Electricity Producers: (0.01%)
AES Corporation		7.38	%		7-1-2021	$	(5,000	)		(5,100	)
AES Corporation		8.00			6-1-2020		(10,000	)		(11,000	)
Total Corporate Bonds and Notes - Securities Sold Short (Proceeds $(16,207))										(16,100	)
						Shares
Exchange-Traded Funds: (7.14%)
Consumer Discretionary Select Sector SPDR Fund ETF							(5,172	)		(404,192	)
Health Care Select Sector SPDR Fund ETF							(2,586	)		(186,321	)
Industrial Select Sector SPDR Fund ETF							(6,889	)		(365,186	)
iShares China Large-Cap ETF							(6,535	)		(230,620	)
iShares MSCI Brazil Capped ETF							(17,189	)		(355,469	)
iShares MSCI Emerging Markets ETF							(21,025	)		(676,795	)
Materials Select Sector SPDR ETF							(8,536	)		(370,633	)
SPDR S&P 500 ETF							(73,362	)		(14,957,778	)
SPDR S&P Biotechnology ETF							(2,769	)		(194,051	)
SPDR S&P Regional Banking ETF							(9,177	)		(384,700	)
Technology Select Sector SPDR Fund ETF							(2,884	)		(123,522	)
Total Exchange-Traded Funds - Securities Sold Short (Proceeds $(18,532,654))										(18,249,267	)
Total Securities Sold Short (Proceeds $(63,589,489))										(60,398,722	)

Total investments in securities (excluding securities sold short) (Cost $220,997,572) *	87.30	%		223,178,765
Total securities sold short	(23.62	)		(60,398,722	)
Other assets and liabilities, net	36.32			92,856,599
Total net assets	100.00	%	$	255,636,642

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

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 33

(b) All or a portion of this security is segregated as collateral for securities sold short.

† Non-income-earning security

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

(i) Illiquid 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.

(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 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.

@ Foreign bond principal is denominated in the local currency of the issuer.

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

(l) The issuer of the security is an affiliated person 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 $225,700,261 and unrealized gains (losses) consists of:

Gross unrealized gains	$	8,638,453
Gross unrealized losses		(11,159,949	)
Net unrealized losses	$	(2,521,496	)

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

34 Wells Fargo Alternative Strategies Fund Statement of assets and liabilities—December 31, 2015 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $167,131,937)	$	169,313,130
In affiliated securities, at value (cost $53,865,635)		53,865,635
Total investments, at value (cost $220,997,572)		223,178,765
Cash		953,704
Cash at prime broker for securities sold short		65,281,133
Cash at prime broker for derivatives		1,161,225
Foreign currency, at value (cost $21,390,044)		21,427,137
Receivable for investments sold		2,519,736
Receivable for Fund shares sold		3,695,532
Receivable for dividends and interest		1,415,090
Receivable for daily variation margin on open futures contracts		473,353
Unrealized gains on credit default swap transactions		433
Unrealized gains on forward foreign currency contracts		90,227
Unrealized gains on total return swap transactions		53,202
Prepaid expenses and other assets		36,370
Total assets		320,285,907
Liabilities
Dividends and interest payable on securities sold short		126,766
Payable for investments purchased		2,727,421
Payable for Fund shares redeemed		249,058
Unrealized losses on total return swap transactions		120,926
Unrealized losses on forward foreign currency contracts		46,064
Payable for daily variation margin on open futures contracts		121,980
Premiums received on credit default swap transactions		1,539
Written options, at value (premiums received $471,411)		413,887
Payable for securities sold short, at value (proceeds $63,589,489)		60,398,722
Management fee payable		339,967
Distribution fee payable		7,572
Administration fees payable		31,476
Accrued expenses and other liabilities		63,887
Total liabilities		64,649,265
Total net assets	$	255,636,642
NET ASSETS CONSIST OF
Paid-in capital	$	254,565,027
Accumulated net investment loss		(441,288	)
Accumulated net realized losses on investments		(4,166,072	)
Net unrealized gains on investments		5,678,975
Total net assets	$	255,636,642
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	15,493,508
Shares outstanding – Class A1		1,513,760
Net asset value per share – Class A		$10.24
Maximum offering price per share – Class A2		$10.86
Net assets – Class C	$	12,185,669
Shares outstanding – Class C1		1,205,916
Net asset value per share – Class C		$10.10
Net assets – Administrator Class	$	26,316,151
Shares outstanding – Administrator Class1		2,564,267
Net asset value per share – Administrator Class		$10.26
Net assets – Institutional Class	$	201,641,314
Shares outstanding – Institutional Class1		19,616,318
Net asset value per share – Institutional Class		$10.28

¹ The Fund has an unlimited number of authorized shares.

² Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

Statement of operations—six months ended December 31, 2015 (unaudited) Wells Fargo Alternative Strategies Fund 35

Investment income
Dividends (net of foreign withholding taxes of $8,333)	$	1,516,145
Interest		514,732
Income from affiliated securities		39,333
Total investment income		2,070,210
Expenses
Management fee		1,556,961
Administration fees
Class A		9,194
Class C		7,496
Administrator Class		11,601
Institutional Class		93,727
Shareholder servicing fees
Class A		10,945
Class C		8,923
Administrator Class		22,085
Distribution fee
Class C		26,770
Custody and accounting fees		160,892
Professional fees		30,745
Registration fees		40,648
Shareholder report expenses		29,574
Trustees’ fees and expenses		10,224
Dividends and interest expense on securities sold short		519,883
Prime broker fees		213,144
Other fees and expenses		16,278
Total expenses		2,769,090
Less: Fee waivers and/or expense reimbursements		(308,226	)
Net expenses		2,460,864
Net investment loss		(390,654	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(4,332,049	)
Securities sold short		1,438,694
Futures transactions		1,183,706
Forward foreign currency contract transactions		152,526
Foreign currency and foreign currency translations		(52,878	)
Written options		68,374
Credit default swap transactions		37
Total return swap transactions		67,039
Capital gain distributions from investment companies		347,587
Net realized losses on investments		(1,126,964	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(2,195,799	)
Securities sold short		1,996,443
Futures transactions		272,159
Forward foreign currency contract transactions		57,736
Foreign currency and foreign currency translations		541,649
Written options		81,972
Credit default swap transactions		433
Total return swap transactions		(116,714	)
Net change in unrealized gains (losses) on investments		637,879
Net realized and unrealized gains (losses) on investments		(489,085	)
Net decrease in net assets resulting from operations	$	(879,739	)

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

36 Wells Fargo Alternative Strategies Fund Statement of changes in net assets

	Six months ended December 31, 2015 (unaudited)						Year ended June 30, 20151						Year ended July 31, 20142
Operations
Net investment loss				$	(390,654	)				$	(409,829	)				$	(372,313	)
Net realized gains (losses) on investments					(1,126,964	)					3,562,413						(48,598	)
Net change in unrealized gains (losses) on investments					637,879						3,759,246						1,281,850
Net increase (decrease) in net assets resulting from operations					(879,739	)					6,911,830						860,939
Distributions to shareholders from
Net realized gains
Class A					(223,836	)					(25,783	)					0
Class C					(188,485	)					(18,175	)					0
Administrator Class					(361,883	)					(17,178	)					0
Institutional Class					(3,490,785	)					(1,497,363	)					0
Total distributions to shareholders					(4,264,989	)					(1,558,499	)					0
Capital share transactions		Shares						Shares						Shares
Proceeds from shares sold
Class A		1,197,136			12,427,918			235,618			2,508,255			156,226			1,567,098
Class C		1,005,676			10,394,066			123,694			1,304,534			112,656			1,127,500
Administrator Class		4,156,710			43,386,253			486,882			5,203,407			111,014			1,110,000
Institutional Class		13,481,143			140,248,860			5,333,055			56,672,360			9,700,000			97,000,000
					206,457,097						65,688,556						100,804,598
Reinvestment of distributions
Class A		22,001			223,789			2,510			25,746			0			0
Class C		18,402			184,964			1,540			15,733			0			0
Administrator Class		35,306			360,174			1,673			17,178			0			0
Institutional Class		238,285			2,433,253			140,736			1,446,167			0			0
					3,202,180						1,504,824						0
Payment for shares redeemed
Class A		(96,056	)		(999,883	)		(3,289	)		(34,930	)		(386	)		(3,912	)
Class C		(46,650	)		(476,377	)		(9,402	)		(95,074	)		0			0
Administrator Class		(2,224,560	)		(23,169,528	)		(2,758	)		(29,382	)		0			0
Institutional Class		(6,022,274	)		(63,546,143	)		(3,254,627	)		(34,734,926	)		0			0
					(88,191,931	)					(34,894,312	)					(3,912	)
Net increase in net assets resulting from capital share transactions					121,467,346						32,299,068						100,800,686
Total increase in net assets					116,322,618						37,652,399						101,661,625
Net assets
Beginning of period					139,314,024						101,661,625						0
End of period				$	255,636,642					$	139,314,024					$	101,661,625
Accumulated net investment loss				$	(441,288	)				$	(50,634	)				$	(24,113	)

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of operations) to July 31, 2014

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

Financial highlights Wells Fargo Alternative Strategies Fund 37

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151			Year ended July 31, 20142
CLASS A
Net asset value, beginning of period		$10.58			$10.08			$10.00
Net investment loss		(0.03	)3		(0.06	)3		(0.04	)
Net realized and unrealized gains (losses) on investments		(0.12	)		0.71			0.12
Total from investment operations		(0.15	)		0.65			0.08
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.24			$10.58			$10.08
Total return4		(1.44	)%		6.49	%		0.80	%
Ratios to average net assets (annualized)
Gross expenses5		3.40	%		3.40	%		3.77	%
Net expenses5		2.98	%		2.93	%		3.00	%
Net investment loss		(0.48	)%		(0.64	)%		(1.70	)%
Supplemental data
Portfolio turnover rate		162	%		237	%		92	%
Net assets, end of period (000s omitted)		$15,494			$4,133			$1,571

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

³  Calculated based upon average shares outstanding

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

⁵  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.85	%
Year ended June 30, 20151	0.64	%
Year ended July 31, 20142	0.58	%

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

38 Wells Fargo Alternative Strategies Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151			Year ended July 31, 20142
CLASS C
Net asset value, beginning of period		$10.49			$10.06			$10.00
Net investment loss		(0.07	)3		(0.13	)3		(0.06	)
Net realized and unrealized gains (losses) on investments		(0.13	)		0.71			0.12
Total from investment operations		(0.20	)		0.58			0.06
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.10			$10.49			$10.06
Total return4		(1.84	)%		5.80	%		0.60	%
Ratios to average net assets (annualized)
Gross expenses5		4.16	%		4.14	%		4.49	%
Net expenses5		3.74	%		3.70	%		3.75	%
Net investment loss		(1.28	)%		(1.35	)%		(2.45	)%
Supplemental data
Portfolio turnover rate		162	%		237	%		92	%
Net assets, end of period (000s omitted)		$12,186			$2,396			$1,133

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

³  Calculated based upon average shares outstanding

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

⁵  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.86	%
Year ended June 30, 20151	0.64	%
Year ended July 31, 20142	0.58	%

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

Financial highlights Wells Fargo Alternative Strategies Fund 39

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151			Year ended July 31, 20142
ADMINISTRATOR CLASS
Net asset value, beginning of period		$10.60			$10.08			$10.00
Net investment loss		(0.02	)3		(0.05	)3		(0.04	)
Net realized and unrealized gains (losses) on investments		(0.13	)		0.72			0.12
Total from investment operations		(0.15	)		0.67			0.08
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.26			$10.60			$10.08
Total return4		(1.44	)%		6.58	%		0.90	%
Ratios to average net assets (annualized)
Gross expenses5		3.30	%		3.25	%		3.57	%
Net expenses5		2.78	%		2.78	%		2.84	%
Net investment loss		(0.47	)%		(0.51	)%		(1.54	)%
Supplemental data
Portfolio turnover rate		162	%		237	%		92	%
Net assets, end of period (000s omitted)		$26,316			$6,326			$1,119

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

³  Calculated based upon average shares outstanding

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

⁵  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.80	%
Year ended June 30, 20151	0.66	%
Year ended July 31, 20142	0.58	%

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

40 Wells Fargo Alternative Strategies Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2015 (unaudited)			Year ended June 30, 20151			Year ended July 31, 20142
INSTITUTIONAL CLASS
Net asset value, beginning of period		$10.61			$10.09			$10.00
Net investment loss		(0.01	)		(0.03	)		(0.04	)
Net realized and unrealized gains (losses) on investments		(0.13	)		0.70			0.13
Total from investment operations		(0.14	)		0.67			0.09
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.28			$10.61			$10.09
Total return3		(1.34	)%		6.68	%		0.90	%
Ratios to average net assets (annualized)
Gross expenses4		3.02	%		2.95	%		3.29	%
Net expenses4		2.70	%		2.69	%		2.74	%
Net investment loss		(0.39	)%		(0.36	)%		(1.44	)%
Supplemental data
Portfolio turnover rate		162	%		237	%		92	%
Net assets, end of period (000s omitted)		$201,641			$126,459			$97,838

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

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

⁴  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Six months ended December 31, 2015 (unaudited)	0.82	%
Year ended June 30, 20151	0.62	%
Year ended July 31, 20142	0.58	%

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

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 41

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 Alternative Strategies 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).

Equity securities, options 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.

Non-listed OTC options, swaps and exotics (i.e. caps, floors, etc.) are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

The values of securities 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.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On December 31, 2015, such fair value pricing was used in pricing foreign securities.

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. 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

42 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

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 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.

Forward foreign currency contracts

The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contract transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.

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, equity price risk and foreign currency exchange 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.

Options

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 43

on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.

The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment, the value of which is subsequently adjusted based on the current market value of the option. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

Options traded on an exchange are regulated and terms of the options are standardized. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Short sales

The Fund may sell a security it does not own in anticipation of a decline in the market value of that security (short sale). When the Fund makes a short sale, it must borrow the security sold short and deliver it to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement.

The Fund records the proceeds as a liability which is marked-to-market daily based upon quotations from an independent pricing service or an independent broker-dealer and any change in value is recorded as an unrealized gain or loss. Any interest or dividends accrued on such borrowed securities during the period of the loan are recorded as an expense on the Statement of Operations. To borrow the security, the Fund may be required to pay a premium, which would decrease the proceeds of the security sold. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the closing of a short sale if the market price at the closing is less than or greater than, respectively, the proceeds originally received. Until the short sale is closed or the borrowed security is replaced, the Fund maintains a segregated account of cash or liquid securities, the dollar value of which is at least equal to the market value of the security at the time of the short sale.

Credit default swaps

The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund may enter into credit default swap contracts for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or for investment gains. Credit default swaps involve an exchange of a stream of payments for protection against the loss in value of an underlying security or index. Under the terms of the swap, one party acts as a guarantor (referred to as the seller of protection) and receives a periodic stream of payments, provided that there is no credit event, from another party (referred to as the buyer of protection) that is a fixed percentage applied to a notional principal amount over the term of the swap. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. A credit event includes bankruptcy, failure to pay, obligation default, obligation acceleration, repudiation/moratorium, and restructuring. The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates. The maximum potential amount of future payments (undiscounted) that the Fund as the seller of protection could be required to make under the credit default swap contract would be an amount equal to the notional amount of the swap contract. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

If the Fund is the seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the buyer of protection the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index. If the Fund is the buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will receive from the seller of protection the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index.

44 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

Any premiums paid or received on the transactions are recorded as an asset or liability on the Statement of Assets and Liabilities and amortized. The value of the swap contract is marked-to-market daily based on quotations from an independent pricing service or an independent broker-dealer and any change in value is recorded as an unrealized gain or loss. Periodic payments made or received are recorded as realized gains or losses. In addition, payments received or made as a result of a credit event or termination of the contract are recognized as realized gains or losses.

Certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements. Any election by the counterparty to terminate early may impact the amounts reported on the financial statements.

Total return swaps

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund may enter into total return swap contracts for hedging or speculative purposes. Total return swaps involve commitments to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from, or make a payment to, the counterparty.

The value of the swap contract is marked-to-market daily based upon quotations from an independent pricing service or an independent broker-dealer and any change in value is recorded as an unrealized gain or loss. Periodic payments made or received are recorded as realized gains or losses. The Fund could be exposed to risks if the counterparty defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index. The Fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Certain total return swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements. Any election by the counterparty to terminate early may impact the amounts reported on the 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.

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

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 and 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 fiscal years since commencement of operations are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 45

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 December 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	$	29,109,466	$	2,474,403	$	0	$	31,583,869
Consumer staples		10,480,521		1,695,994		0		12,176,515
Energy		9,291,722		556,299		0		9,848,021
Financials		11,313,453		2,791,913		0		14,105,366
Health care		17,394,610		1,625,084		0		19,019,694
Industrials		15,179,738		3,228,302		0		18,408,040
Information technology		16,306,156		1,789,358		0		18,095,514
Materials		6,977,994		910,681		0		7,888,675
Telecommunication services		2,215,791		943,956		0		3,159,747
Utilities		1,703,217		448,421		0		2,151,638
Corporate bonds and notes		0		5,383,491		0		5,383,491
Exchange-traded funds		798,952		36,139		0		835,091
Foreign corporate bonds and notes		0		120,561		0		120,561
Investment companies		17,553,888		0		0		17,553,888
Municipal obligations		0		715,208		0		715,208
Participation notes
Financials		0		304,276		0		304,276
Preferred stocks
Financials		0		8,342		0		8,342
Health care		618,108		0		0		618,108
Industrials		0		0		59,307		59,307
Information technology		0		52,679		0		52,679

46 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Purchased call options	$	0	$	21,339	$	0	$	21,339
Purchased put options		0		768,667		0		768,667
Rights
Information technology		0		83		0		83
Warrants
Financials		0		66,882		0		66,882
Yankee corporate bonds and notes		0		1,769,063		0		1,769,063
Short-term investments
Investment companies		53,865,635		0		0		53,865,635
U.S. Treasury securities		4,599,066		0		0		4,599,066
		197,408,317		25,711,141		59,307		223,178,765
Credit default swap contracts		0		433		0		433
Forward foreign currency contracts		0		90,227		0		90,227
Futures contracts		473,353		0		0		473,353
Total return swap contracts		0		53,202		0		53,202
Total assets	$	197,881,670	$	25,855,003	$	59,307	$	223,795,980
Liabilities
Forward foreign currency contracts	$	0	$	46,064	$	0	$	46,064
Futures contracts		121,980		0		0		121,980
Securities sold short
Common stocks
Consumer discretionary		2,904,299		0		0		2,904,299
Consumer staples		1,070,951		0		0		1,070,951
Energy		10,867,641		0		0		10,867,641
Financials		2,232,602		0		0		2,232,602
Health care		5,286,746		0		0		5,286,746
Industrials		6,863,728		0		0		6,863,728
Information technology		10,212,709		0		0		10,212,709
Materials		2,567,121		0		0		2,567,121
Telecommunication services		127,558		0		0		127,558
Corporate bonds and notes		0		16,100		0		16,100
Exchange-traded funds		18,249,267		0		0		18,249,267
Total return swap contracts		0		120,926		0		120,926
Written options		0		413,887		0		413,887
Total liabilities	$	60,504,602	$	596,977	$	0	$	61,101,579

Forward foreign currency contracts and swap contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. 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 December 31, 2015, fair value pricing was used in pricing certain foreign securities and securities valued at $11,635,909 were transferred from Level 1 to Level 2. The Fund did not have any transfers into/out of Level 3.

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 47

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

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 subadvisers, 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 1.75% and declining to 1.63% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the management fee was equivalent to an annual rate of 1.75% of the Fund’s average daily net assets.

Funds Management has engaged The Rock Creek Group, LP, Chilton Investment Company, LLC, Mellon Capital Management Corporation, Passport Capital, LLC, Pine River Capital Management L.P., River Canyon Fund Management LLC, Sirios Capital Management, L.P. and Wellington Management Company LLP to serve as sub-advisers to the Fund. The fee for subadvisory services is borne by Funds Management. The subadvisers are each entitled to receive from Funds Management an annual subadvisory fee.

The Rock Creek Group, LP, an indirect majority owned subsidiary of Wells Fargo and an affiliate of Funds Management, is entitled to receive a fee at an annual rate starting at 0.60% and declining to 0.55% as the average daily net assets of the Fund increase. For the six months ended December 31, 2015, the subadvisory fees paid to the remaining unaffiliated subadvisors was equivalent to an annual rate of 0.98% of the Fund’s average daily net assets.

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		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 2.22% for Class A shares, 2.97% for Class C shares, 2.07% for Administrator Class shares, and 1.97% 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. Prime broker fees and dividend and interest expense on securities sold short are excluded from the expense caps.

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 six months ended December 31, 2015, Funds Distributor received $18,465 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 Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

48 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2015 were $290,236,823 and $252,574,354, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended December 31, 2015, the Fund entered into futures contracts for speculative purposes.

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

Expiration date	Contracts	Counterparty	Type	Contract value at December 31, 2015		Unrealized gains (losses)
1-15-2016	30 Long	Morgan Stanley	Amsterdam Index	$	2,881,082	$	61,812
1-15-2016	14 Long	Morgan Stanley	CAC40 Index		705,724		(1,388	)
1-15-2016	33 Long	Morgan Stanley	IBEX 35 Index		3,416,393		(22,021	)
1-28-2016	16 Long	Morgan Stanley	Hang Seng Index		2,261,663		(18,119	)
3-8-2016	65 Short	Morgan Stanley	Euro-Bund Futures		11,155,269		106,482
3-10-2016	55 Long	Morgan Stanley	TOPIX Index		7,081,201		(77,290	)
3-10-2016	18 Short	Morgan Stanley	TOPIX Index		2,317,484		54,103
3-14-2016	111 Short	Morgan Stanley	Euro FX Futures		15,104,325		176,560
3-14-2016	197 Short	Morgan Stanley	British Pound FX Futures		18,141,238		352,131
3-14-2016	57 Long	Morgan Stanley	New Zealand Dollar Futures		3,881,700		53,346
3-14-2016	17 Short	Morgan Stanley	Norwegian Krone Futures		3,837,240		71,128
3-14-2016	1 Short	Morgan Stanley	Swedish Krona Futures		237,180		1,317
3-14-2016	18 Short	Morgan Stanley	Swiss Franc Futures		2,257,200		26,070
3-15-2016	31 Long	Morgan Stanley	10-Year Australian Treasury Bonds		2,866,460		9,394
3-17-2016	7 Long	Morgan Stanley	ASX SPI 200 Index		670,386		46,786
3-17-2016	5 Long	Morgan Stanley	S&P/TSX 60 Index		549,902		8,611
3-18-2016	19 Long	Morgan Stanley	DAX Index		5,560,573		72,601
3-18-2016	82 Short	Morgan Stanley	EURO STOXX 50 Index		2,924,705		(42,039	)
3-18-2016	102 Short	Morgan Stanley	FTSE 100 Index		9,319,834		(289,998	)
3-18-2016	25 Short	Morgan Stanley	FTSE 100 Index		2,284,273		(119,088	)
3-18-2016	10 Short	Morgan Stanley	FTSE MIB Index		1,165,104		(23,496	)
3-18-2016	4 Short	Morgan Stanley	MSCI Emerging Markets Index		157,500		(5,590	)
3-18-2016	21 Short	Morgan Stanley	MSCI EAFE Index		1,783,110		(34,382	)
3-18-2016	7 Short	Morgan Stanley	Russell 2000 Index		792,050		(9,393	)
3-18-2016	85 Short	Morgan Stanley	S&P 500 E-Mini Index		8,650,450		998
3-21-2016	104 Short	Morgan Stanley	10-Year Canadian Treasury Bonds		10,596,921		(112,806	)
3-21-2016	147 Long	Morgan Stanley	10-Year U.S. Treasury Notes		18,508,219		(47,811	)
3-29-2016	10 Long	Morgan Stanley	Long Gilt Bonds		1,721,423		(1,763	)

The Fund had an average notional amount of $87,809,365 in long futures contracts and $188,441,361 in short futures contracts during the six months ended December 31, 2015. As of December 31, 2015, in addition to securities held as collateral, the Fund had $609,567 on deposit at the prime broker for open futures contracts.

During the six months ended December 31, 2015, the Fund entered into forward foreign currency contracts for speculative purposes.

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 49

At December 31, 2015, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty	Contracts to receive			U.S. value at December 31, 2015		In exchange for U.S. $		Unrealized gains (losses)
3-16-2016	Citibank		4,735,000	JPY	$	39,459	$	39,095	$	364
3-16-2016	Goldman Sachs		65,448	EUR		71,253		71,600		(347	)
3-16-2016	Goldman Sachs		58,353	EUR		63,529		64,068		(539	)

Forward foreign currency contracts to sell:

Exchang date	Counterparty	Contracts to deliver			U.S. value at December 31, 2015		In exchange for U.S. $		Unrealized gains (losses)
1-28-2016	Morgan Stanley		129,000	EUR	$	140,271	$	140,881	$	610
3-16-2016	Citibank		3,017,000	EUR		3,284,605		3,315,476		30,871
3-16-2016	Citibank		23,000	GBP		33,911		34,927		1,016
3-16-2016	Goldman Sachs		49,109	EUR		53,465		53,743		278
3-16-2016	Goldman Sachs		74,191	CHF		74,297		74,942		645
3-16-2016	Goldman Sachs		39,690	EUR		43,210		43,160		(50	)
3-16-2016	Morgan Stanley		1,355,220	CHF		1,357,152		1,382,620		25,468
3-16-2016	Morgan Stanley		45,639	EUR		49,688		50,392		704
3-16-2016	Morgan Stanley		565,281	EUR		615,421		624,599		9,178
3-16-2016	National Australia Bank Limited		58,000	AUD		42,117		41,486		(631	)
3-16-2016	National Australia Bank Limited		325,000	EUR		353,827		356,077		2,250
3-16-2016	UBS		303,550,000	JPY		2,529,647		2,485,150		(44,497	)
4-8-2016	Morgan Stanley		41,000	EUR		44,666		44,684		18
4-8-2016	Morgan Stanley		892,000	EUR		971,768		985,392		13,624
4-8-2016	Morgan Stanley		265,000	CHF		265,657		270,643		4,986
4-8-2016	Morgan Stanley		35,000	EUR		38,130		38,345		215

The Fund had average contract amounts of $857,888 and $6,517,596 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended December 31, 2015.

During the six months ended December 31, 2015, the Fund entered into written options for speculative purposes.

During the six months ended December 31, 2015, the Fund had written option activities as follows:

	Call options						Put options
	Number of contracts			Premiums received			Number of contracts			Premiums received
Options outstanding at June 30, 2015		5		$	957			46		$	193,061
Options written		5			1,559			89			396,331
Options expired		(5	)		(1,560	)		0			0
Options closed		(2	)		(328	)		(40	)		(117,981	)
Options exercised		(3	)		(628	)		0			0
Options outstanding at December 31, 2015		0		$	0			95		$	471,411

50 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

Open put options written at December 31, 2015 were as follows:

Expiration date	Counterparty	Description	Number of contracts		Strike price		Value
6-17-2016	Morgan Stanley	S&P 500 Index		43	$	1,700	$	(110,510	)
12-16-2016	Morgan Stanley	S&P 500 Index		52		1,700		(303,377	)

The Fund had an average of 5 written option contracts during the six months ended December 31, 2015. As of December 31, 2015, the Fund had $377,267 on deposit at the prime broker for written options.

During the six months ended December 31, 2015, the Fund entered into purchased option contracts for speculative purposes and had an average of 438 purchased option contracts.

During the six months ended December 31, 2015, the Fund entered into total return swap contracts for speculative purposes. At December 31, 2015, the Fund had the following total return swap contracts outstanding:

Expiration	Notional amount	Counterparty	Swap description	Unrealized gains (losses)
3-9-2016	$103,272	Morgan Stanley	In an agreement dated 2-9-2015, the Fund makes monthly payments of 1 Month EUR LIBOR +60 basis points. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Ryanair Holdings plc.	$	14,146
10-20-2016	41,426	Morgan Stanley	In an agreement dated 10-17-2014, the Fund makes monthly payments of 1 Month USD LIBOR +50. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Ally Financial Incorporated.		(5,693	)
10-20-2016	278,098	Morgan Stanley	In an agreement dated 10-17-2014, the Fund makes monthly payments of 1 Month USD LIBOR +50. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Brookdale Senior Living Incorporated.		(115,233	)
10-20-2016	119,199	Morgan Stanley	In an agreement dated 10-17-2014, the Fund makes monthly payments of 1 Month USD LIBOR +50. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Comcast Corporation Class A.		13,524
9-20-2017	(205,561)	Morgan Stanley	In an agreement dated 9-16-2015, the Fund receives monthly payments of Federal Funds Effective Rate US +50 basis points. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Repsol YPF SA.		25,532

The Fund had an average notional balance on total return swaps of $509,294, during the six months ended December 31, 2015. As of December 31, 2015, the Fund had $174,391 on deposit at the prime broker for total return swaps.

The Fund enters into credit default swap contracts as a substitute for taking a position in the underlying security or basket of securities or to potentially enhance the Fund’s total return. At December 31, 2015, the Fund had the following credit default swap contracts outstanding:

Credit default swaps on debt obligations – Sell protection

Expiration	Counterparty	Reference debt obligation	Rating of reference debt obligation*		Notional amount		Fixed payments received			Value			Premiums received			Unrealized gains
12-21-2020	Morgan Stanley	Yum! Brands Incorporated, 6.25%, 3-15-18		AAA	$	15,000		1.00	%	$	(1,106	)	$	(1,539	)	$	433

* Reflects the ratings of a nationally recognized ratings agency at period end. The credit rating serves as indicator of the current status of the payment/performance risk of the credit derivative. A rating of D would most likely indicate a trigger event of default has occurred although circumstances including bankruptcy, failure to pay, obligation default, obligation acceleration, repudiation/moratorium and restructuring may also cause a credit event to take place.

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 51

The Fund had an average notional balance on credit default swaps of $5,870 during the six months ended December 31, 2015.

The Fund’s credit default swap transactions may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions.

A summary of derivative instruments by primary risk exposure is outlined in the following tables.

The fair value of derivative instruments as of December 31, 2015 was as follows for the Fund:

	Asset derivatives				Liability derivatives
	Statement of Assets and Liabilities location	Fair value			Statement of Assets and Liabilities location	Fair value
Equity risk	Investments in unaffiliated securities, at value	$	790,006	*	Payable for written options	$	413,887
	Receivable for daily variation margin on open futures contracts		169,364	**	Payable for daily variation margin on open futures contracts		80,769	**
Foreign currency risk	Unrealized gains on forward foreign currency		90,227		Unrealized losses on forward foreign currency contracts		46,064
	Receivable for daily variation margin on open futures contracts		255,448	**	Payable for daily variation margin on open futures contracts		2,280	**
Interest rate risk	Receivable for daily variation margin on open futures contracts		48,541	**	Payable for daily variation margin on open futures contracts		38,931	**
	Unrealized gains on total return swap transactions		53,202		Unrealized losses on total return swap transactions		120,926
Credit contracts	Unrealized gains on credit default swap transactions		433		Unrealized losses on credit default swap transactions		0
		$	1,407,221			$	702,857

* Amount relates to purchased options

** Only the current day’s variation margin as of December 31, 2015, is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the six months ended December 31, 2015 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives
	Unaffiliated securities*			Futures contracts			Forward foreign currency contracts		Written options		Credit default swaps		Total return Swaps		Total
Interest rate risk	$	0		$	(360,626	)	$	0	$	0	$	0	$	67,039	$	(293,587	)
Equity contracts		(15,096	)		683,472			0		68,374		0		0		736,750
Forward currency risk		0			860,860			152,526		0		0		0		1,013,386
Credit contracts		0			0			0		0		37		0		37
	$	(15,096	)	$	1,183,706		$	152,526	$	68,374	$	37	$	67,039	$	1,456,586

52 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

	Change in unrealized gains (losses) on derivatives
	Unaffiliated securities*			Futures contracts			Forward foreign currency contracts		Written options		Credit default swaps		Total return Swaps			Total
Interest rate risk	$	0		$	162,426		$	0	$	0	$	0	$	(116,714	)	$	45,712
Equity contracts		(380,798	)		(505,932	)		0		81,972		0		0			(804,758	)
Forward currency risk		0			615,665			57,736		0		0		0			673,401
Credit contracts		0			0			0		0		433		0			433
	$	(380,798	)	$	272,159		$	57,736	$	81,972	$	433	$	(116,714	)	$	(85,212	)

* Amount relates to purchased options

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, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, 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	Morgan Stanley	$	473,353		$	(121,980	)	$	0	$	351,373
Forward foreign currency contracts	Citibank		32,251	*		0			0		32,251
Forward foreign currency contracts	Goldman Sachs		923	*		(923	)		0		0
Forward foreign currency contracts	Morgan Stanley		54,803	*		0			0		54,803
Forward foreign currency contracts	National Australia Bank Limited		2,250	*		(631	)		0		1,619
Total return swaps	Morgan Stanley		53,202	*		(53,202	)		0		0
Credit default swaps	Morgan Stanley		433	*		0			0		433

* Amount represents net unrealized gains.

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	Morgan Stanley	$	121,980		$	(121,980	)	$	0		$	0
Forward foreign currency contracts	Goldman Sachs		936	*		(923	)		0			13
Forward foreign currency contracts	National Australia Bank Limited		631	*		(631	)		0			0
Forward foreign currency contracts	UBS		44,497	*		0			0			44,497
Written options	Morgan Stanley		413,887			0			(377,267	)		36,620
Total return swaps	Morgan Stanley		120,926	*		(53,202	)		(67,724	)		0

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

* Amount represents net unrealized losses.

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 53

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 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 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

The Fund also has a committed credit facility to provide leverage for investment purposes. The credit facility has a commitment amount of $10 million which expires on June 30, 2016, at which point it may be renegotiated and potentially renewed for another one-year term. The Fund’s borrowings under the Facility are generally charged interest at a rate determined by the type of loan elected by the Fund. The Fund also pays a commitment fee at an annual rate equal to 0.25% on the unutilized portion of the credit facility.

For the six months ended December 31, 2015, the Fund paid $9,138 in commitment fees.

During the six months ended December 31, 2015, the Fund did not borrow under either credit facility.

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.

54 Wells Fargo Alternative Strategies Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.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 wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available at each fiscal quarter end on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. As of each month end other than a month end that coincides with a fiscal quarter end, the Fund makes publicly available on the Fund’s website, on a one-month delayed basis (i) all portfolio holdings held long other than any put options on equity securities; (ii) portfolio holdings held short other than short positions in equity securities of single issuers; and (iii) the aggregate dollar value of equity securities of single issuers held short, and any put options on equity securities held long. In addition, top ten holdings information (excluding derivative positions and short 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 Alternative Strategies Fund 55

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 family of funds, which consists of 144 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	Current other public company or investment company directorships
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead 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 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
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). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	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, Director of the Corporate Governance Research Initiative 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

56 Wells Fargo Alternative Strategies Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
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.

** Donald Willeke retired as a Trustee effective December 31, 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)	Treasurer, since 2012; 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 72 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 wellsfargofunds.com.

List of abbreviations Wells Fargo Alternative Strategies Fund 57

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.

This page is intentionally left blank.

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.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 the Fund. 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 wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo 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.

2398845 02-16 SA267/SAR267 12-15

ITEM 2. CODE OF ETHICS

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

Wells Fargo Intermediate Tax/AMT-Free Fund, Wells Fargo Municipal Bond Fund and Wells Fargo Ultra Short-Term Municipal Income Fund included a Summary Portfolio of Investments under Item 1. A Portfolio of Investments for each of Wells Fargo Intermediate Tax/AMT-Free Fund, Wells Fargo Municipal Bond Fund and Wells Fargo Ultra Short-Term Municipal Income Fund are filed under this Item.

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.30%
Alabama: 0.28%
Alabama Public School & College Authority Capital Improvement (Tax Revenue)		5.00	%		12-1-2017	$	2,640,000	$	2,848,085
Jefferson County AL Warrants Series A (GO Revenue)		4.90			4-1-2021		3,910,000		4,169,859
									7,017,944
Alaska: 0.19%
Alaska Railroad Corporation Series A (Miscellaneous Revenue, National Insured)		5.00			8-1-2020		3,245,000		3,459,495
Valdez AK Marine Terminal BP Pipelines Project Series 2003B (Industrial Development Revenue)		5.00			1-1-2021		1,000,000		1,142,580
									4,602,075
Arizona: 1.30%
Arizona Refunding Certificate of Participation (Miscellaneous Revenue)		5.00			9-1-2027		3,040,000		3,682,139
Arizona Sports & Tourism Authority Series A (Tax Revenue)		4.00			7-1-2020		1,365,000		1,478,268
Arizona Sports & Tourism Authority Series A (Tax Revenue)		5.00			7-1-2021		795,000		908,852
Arizona Sports & Tourism Authority Series A (Tax Revenue)		5.00			7-1-2022		1,000,000		1,158,250
Greater Arizona Development Authority Infrastructure Pinal County Road Project Series 1 (Miscellaneous Revenue, National Insured)		4.50			8-1-2023		2,755,000		2,819,687
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		4.50			7-1-2024		1,575,000		1,843,790
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		4.50			7-1-2025		1,270,000		1,474,762
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		5.00			7-1-2027		420,000		496,444
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		5.50			7-1-2029		960,000		1,170,518
Phoenix AZ Civic Improvement Corporation Series A (Airport Revenue)		5.00			7-1-2029		5,000,000		5,664,400
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.00			7-1-2021		775,000		772,218
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		5,000,000		4,943,150
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2027		450,000		533,214
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2028		700,000		824,173
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2034		3,680,000		4,243,518
									32,013,383
California: 10.36%
Acalanes CA Union High School District Refunding Bonds (GO Revenue) %%		5.00			8-1-2017		2,070,000		2,170,085
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		5,570,000		5,332,607
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2039		2,500,000		2,856,250
Bay Area CA Toll Authority Toll Bridge Revenue Series A (Transportation Revenue) ±		1.26			4-1-2036		20,000,000		19,795,600
California (GO Revenue)		5.25			3-1-2024		5,000,000		5,820,500
California (GO Revenue)		5.25			3-1-2030		1,440,000		1,671,206
California (GO Revenue)		6.00			3-1-2033		2,510,000		3,018,601
California Municipal Finance Authority (Utilities Revenue)		5.00			10-1-2025		1,500,000		1,894,500
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.19			8-1-2027		10,000,000		10,000,000

2 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Public Works Board Department of Corrections Project Series A (Miscellaneous Revenue, Ambac Insured)		5.00	%		12-1-2019	$	1,990,000	$	2,154,334
California Public Works Board Department of General Services Buildings 8 & 9A (Miscellaneous Revenue)		6.25			4-1-2034		2,750,000		3,213,650
California Public Works Board University of California Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		12,110,000		14,615,196
California Public Works Board Various Judicial Council Project Series D (Miscellaneous Revenue)		5.25			12-1-2026		1,000,000		1,215,590
California Statewide CDA Series A (Education Revenue)		6.90			8-1-2031		1,915,000		2,198,401
California Statewide CDA Series C (Health Revenue)		5.25			8-15-2031		3,000,000		3,474,690
California Various Purposes (GO Revenue)		6.00			4-1-2038		8,055,000		9,325,515
Cerritos CA Community College District Series D (GO Revenue) ¤		0.00			8-1-2025		1,800,000		1,379,592
Compton CA Community College District Election of 2002 CAB Series C (GO Revenue) ¤		0.00			8-1-2029		1,565,000		916,292
Compton CA Community College District Election of 2002 CAB Series C (GO Revenue) ¤		0.00			8-1-2031		2,400,000		1,244,328
El Monte CA Union High School District (GO Revenue) %%		5.00			6-1-2019		2,145,000		2,378,934
El Monte CA Union High School District (GO Revenue) %%		5.00			6-1-2020		2,000,000		2,271,160
Emery CA Unified School District Election of 2010 Series A (GO Revenue, AGM Insured)		6.25			8-1-2031		4,500,000		5,559,795
Golden State Tobacco Securitization Corporate California Tobacco Settlement Revenue Series A (Tobacco Revenue, AGM Insured) ¤		0.00			6-1-2026		7,500,000		5,599,650
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		7.00			11-1-2034		2,000,000		2,868,780
M-S-R California Energy Authority Gas Series C (Utilities Revenue)		7.00			11-1-2034		3,000,000		4,303,170
Merrill Lynch PFOTER Series PT-4211 (GO Revenue, Dexia Credit Local SPA) 144Aø		0.20			2-1-2025		6,135,000		6,135,000
New Haven CA Unified School District CAB Project (GO Revenue, AGC Insured) ¤		0.00			8-1-2033		5,590,000		2,965,271
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		0.94			7-1-2027		10,000,000		9,344,900
Northern California Power Agency Series A (Utilities Revenue)		5.25			8-1-2023		5,150,000		5,816,050
Northern Humboldt CA High School District Election of 2010 Series A (GO Revenue)		6.50			8-1-2034		1,145,000		1,446,307
Oakland CA Unified School District Alameda County Election of 2006 Series A (GO Revenue)		6.50			8-1-2020		1,730,000		2,011,990
Oakland CA Unified School District Alameda County Election of 2009 Series A (GO Revenue)		6.25			8-1-2019		1,285,000		1,476,105
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		6.25			8-1-2028		2,000,000		2,422,380
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		6.25			8-1-2030		2,000,000		2,410,800
Oxnard CA School District Series A (GO Revenue, National Insured)		5.75			8-1-2030		1,825,000		2,244,987
Pasadena CA PFA Rose Bowl Renovation Series A (Miscellaneous Revenue)		5.00			3-1-2021		1,655,000		1,928,373
Patterson CA Unified School District CAB Election of 2008 Project Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2033		3,000,000		1,479,750
Peralta CA Community College District Alameda County (GO Revenue)		5.00			8-1-2023		3,045,000		3,665,876
Peralta CA Community College District Alameda County (GO Revenue)		5.00			8-1-2024		3,000,000		3,621,000
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		2,700,000		3,102,840
Rio Hondo CA Community College District (GO Revenue) ¤		0.00			8-1-2030		2,315,000		1,399,718
Sacramento CA Airport Systems (Airport Revenue)		5.00			7-1-2025		2,000,000		2,274,540
Sacramento CA Municipal Utility District Series B (Utilities Revenue)		5.00			8-15-2030		1,075,000		1,285,141
San Diego CA Community College District Election of 2012 (GO Revenue)		5.00			8-1-2032		3,095,000		3,673,425
San Diego CA PFFA Capital Improvement Projects Series B (Miscellaneous Revenue)		5.00			10-15-2027		500,000		606,225
San Diego CA PFFA Capital Improvement Projects Series B (Miscellaneous Revenue)		5.00			10-15-2028		1,000,000		1,204,740
San Diego CA Unified School District Election of 1998 Series E-2 (GO Revenue, AGM Insured)		5.50			7-1-2027		5,000,000		6,573,250

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
San Gorgonio CA Memorial Healthcare District (GO Revenue)		7.00	%		8-1-2029	$	2,000,000	$	2,197,080
San Jose CA Libraries & Parks Project (GO Revenue)		5.13			9-1-2031		6,110,000		6,134,868
San Jose CA MFHR Casa Del Pueblo Apartments Project Series D (Housing Revenue) ±		0.95			12-1-2017		10,000,000		9,987,700
San Jose CA Redevelopment Agency Series A-1 (Tax Revenue)		5.50			8-1-2030		1,355,000		1,518,020
Santa Ana CA Financing Authority Police Administration and Holding Facilities Prerefunded Balance (Miscellaneous Revenue, National Insured)		6.25			7-1-2019		500,000		585,165
Santa Ana CA Financing Authority Police Administration and Holding Facilities Unrefunded Balance (Miscellaneous Revenue, National Insured)		6.25			7-1-2019		500,000		578,275
Southern California Public Power Authority Milford Wind Corridor Project #1 (Utilities Revenue)		5.00			7-1-2024		5,000,000		5,733,550
Southern California Public Power Authority Southern Transmission Project Series S (Utilities Revenue)		5.75			7-1-2024		2,000,000		2,237,680
Sylvan CA Unified School District CAB Election of 2006 (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		2,590,000		1,399,351
Sylvan CA Unified School District CAB Election of 2006 (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		2,800,000		1,442,420
Tustin CA Unified School District #88-1 Election of 2008 Series B (GO Revenue)		6.00			8-1-2036		1,500,000		1,851,375
University of California Limited Project Series G (Education Revenue)		5.00			5-15-2037		10,390,000		12,086,029
University of California Medical Center Series J (Health Revenue)		5.25			5-15-2030		15,000,000		17,995,800
University of California Prerefunded Series Q (Education Revenue)		5.25			5-15-2024		2,090,000		2,240,146
University of California Unrefunded Series Q (Education Revenue)		5.25			5-15-2024		65,000		69,602
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2016		300,000		306,015
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2018		445,000		482,389
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2019		905,000		1,004,432
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2020		1,300,000		1,365,559
Washington Township CA Health Care District Series A (Health Revenue)		5.13			7-1-2017		260,000		274,804
West Contra Costa CA University (GO Revenue, AGC Insured) ¤		0.00			8-1-2026		4,620,000		3,303,346
									255,160,700
Colorado: 0.32%
Adams County CO Refunding & Improvement Certificate of Participation (Miscellaneous Revenue)		4.00			12-1-2018		500,000		539,480
Adams County CO Refunding & Improvement Certificate of Participation (Miscellaneous Revenue)		5.00			12-1-2021		830,000		984,521
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		5.50			10-1-2017		400,000		420,264
Colorado Regents of the University of Colorado Certificate of Participation Series 2013A (Education Revenue)		5.00			11-1-2028		5,000,000		5,887,300
									7,831,565
Connecticut: 1.84%
Connecticut Health & HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		10,000,000		10,077,100
Connecticut Series A (Miscellaneous Revenue) ±		0.86			3-1-2022		3,000,000		2,954,850
Connecticut Series A (Miscellaneous Revenue) ±		0.91			3-1-2023		3,000,000		2,937,480
Connecticut Series A (Miscellaneous Revenue) ±		0.96			3-1-2024		5,500,000		5,336,925
Connecticut Series A (Miscellaneous Revenue) ±		1.11			4-15-2019		2,300,000		2,317,549
Connecticut Series A (Miscellaneous Revenue) ±		1.26			4-15-2020		3,300,000		3,332,835
Connecticut Special Tax Obligation Bonds Transportation Infrastructure Purposes Series A (Tax Revenue)		5.00			8-1-2028		2,000,000		2,426,560

4 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Connecticut (continued)
Connecticut Special Tax Obligation Bonds Transportation Infrastructure Purposes Series A (Tax Revenue)		5.00	%		8-1-2030	$	1,000,000	$	1,201,860
Hamden CT (GO Revenue)		4.00			8-15-2020		1,235,000		1,333,886
Hamden CT (GO Revenue)		4.00			8-15-2021		1,235,000		1,344,125
Hamden CT (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-15-2022		300,000		337,296
Hamden CT (GO Revenue, AGM Insured)		5.00			8-15-2021		1,000,000		1,161,960
Hamden CT (GO Revenue, AGM Insured)		5.00			8-15-2022		1,000,000		1,178,600
Hamden CT (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-15-2025		300,000		348,642
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			4-1-2022		3,010,000		3,513,964
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2026		1,000,000		1,194,860
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2028		1,265,000		1,489,968
Hartford CT Series C (GO Revenue, AGM Insured)		5.00			7-15-2022		2,320,000		2,731,382
									45,219,842
Delaware: 0.08%
Delaware EDA Odyssey Charter School Project Series B (Education Revenue) 144A		6.75			9-1-2035		2,000,000		2,009,240
District of Columbia: 0.59%
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.00			12-1-2023		1,000,000		1,187,420
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.00			12-1-2025		3,520,000		4,157,754
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.25			12-1-2025		2,630,000		3,048,775
District of Columbia Howard University Series A (Education Revenue)		5.75			10-1-2026		2,510,000		2,618,106
District of Columbia Medical Association of Colleges Series B (Miscellaneous Revenue)		5.00			10-1-2024		3,095,000		3,538,978
									14,551,033
Florida: 5.37%
Boynton Beach FL Utilities Systems (Water & Sewer Revenue, National Insured)		5.50			11-1-2016		1,500,000		1,556,100
Broward County FL School Board Certificate of Participation Series A (Miscellaneous Revenue)		5.00			7-1-2024		5,000,000		6,062,800
Cityplace FL Community Development District Special Assessment (Miscellaneous Revenue)		5.00			5-1-2021		2,945,000		3,259,762
Daytona Beach FL Utility System (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2022		2,205,000		2,636,563
Duval County FL School Board Certificate of Participation Series B (Miscellaneous Revenue)		5.00			7-1-2028		2,500,000		2,968,625
Duval County FL School Board Certificate of Participation Series B (Miscellaneous Revenue)		5.00			7-1-2029		5,000,000		5,902,900
Florida Department of Transportation Turnpike System Series A (Transportation Revenue)		5.00			7-1-2023		3,910,000		4,768,949
Florida Department of Transportation Turnpike System Series A (Transportation Revenue)		5.00			7-1-2025		4,950,000		6,142,059
Florida Development Finance Corporation Renaissance Charter School Series A (Education Revenue)		5.00			9-15-2020		2,040,000		2,126,598
Florida HEFAR (Education Revenue)		4.00			4-1-2021		1,000,000		1,082,580
Florida Mid-Bay Bridge Authority Series A (Transportation Revenue)		5.00			10-1-2025		1,250,000		1,465,113
Gulf Breeze FL Capital Funding Loan Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2017		1,665,000		1,778,253

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Gulf Breeze FL Capital Funding Loan Program Series B (Miscellaneous Revenue, AGM Insured)		4.00	%		10-1-2016	$	1,000,000	$	1,024,670
Gulf Breeze FL Capital Funding Loan Program Series B (Miscellaneous Revenue, AGM Insured)		4.00			10-1-2017		1,000,000		1,050,730
Gulf Breeze FL Local Government Loan Series J (Water & Sewer Revenue) ±		4.10			12-1-2020		3,000,000		3,090,390
Gulf Breeze FL Local Government Loan Series J (Water & Sewer Revenue) ±		4.20			12-1-2020		3,290,000		3,478,978
Miami-Dade County FL Educational Facilities Authority University of Miami Series A (Education Revenue)		5.25			4-1-2016		1,000,000		1,012,340
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			10-1-2019		3,440,000		3,764,908
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			10-1-2020		3,600,000		3,986,208
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			4-1-2021		2,485,000		2,758,673
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2037		25,000,000		25,000,000
Miami-Dade County FL School Board Certificate of Participation Series A (Miscellaneous Revenue) ±		5.00			5-1-2031		3,000,000		3,529,680
Miami-Dade County FL School Board Certificate of Participation Series D (Miscellaneous Revenue)		5.00			11-1-2027		6,600,000		7,735,596
Miami-Dade County FL Special Obligation Series A (Tax Revenue)		5.00			10-1-2023		700,000		831,110
Miami-Dade County FL Water & Sewer Refunding Bond Series C (Water & Sewer Revenue, BHAC Insured)		5.00			10-1-2024		2,950,000		3,268,394
Miami-Dade County FL Water & Sewer Refunding Bond Series C (Water & Sewer Revenue)		5.25			10-1-2022		3,000,000		3,344,070
Orange County FL School Board Certificates Partner Series A (Miscellaneous Revenue, National Insured)		5.00			8-1-2016		1,000,000		1,026,490
Putnam County FL Development Authority PCR Seminole Project Series A (Utilities Revenue, Ambac Insured) ±		5.35			3-15-2042		5,260,000		5,727,667
Santa Clara CA PFOTER Series 4615 (Miscellaneous Revenue, Dexia Credit Local LIQ) ø		0.28			8-1-2029		10,000,000		10,000,000
Seminole Tribe of Florida Special Obligation Series A (Miscellaneous Revenue) 144A		5.50			10-1-2024		2,500,000		2,630,525
South Lake County FL Hospital District South Lake Hospital Incorporated (Health Revenue)		5.00			10-1-2016		1,015,000		1,042,608
South Lake County FL Hospital District South Lake Hospital Incorporated (Health Revenue)		5.00			10-1-2017		900,000		951,687
Tampa FL Sports Authority Stadium Project (Tax Revenue)		5.00			1-1-2025		3,395,000		4,204,843
University of South Florida Financing Corporation Certificate of Participation Master Lease Program Series A (Education Revenue)		5.00			7-1-2022		1,730,000		2,035,691
University of South Florida Financing Corporation Certificate of Participation Master Lease Program Series A (Education Revenue)		5.00			7-1-2023		815,000		968,285
									132,213,845
Georgia: 0.67%
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		1,000,000		1,012,360
Georgia Municipal Electric Authority Power Revenue Unrefunded Balance (Utilities Revenue, National Insured)		6.50			1-1-2017		20,000		20,000
Georgia Public Gas Partners Incorporated Series A (Utilities Revenue)		5.00			10-1-2017		2,500,000		2,679,100
Georgia Public Gas Partners Incorporated Series A (Utilities Revenue)		5.00			10-1-2019		5,000,000		5,666,000
Main Street Natural Gas Incorporated Georgia Gas Project Series A (Utilities Revenue)		5.50			9-15-2022		1,000,000		1,182,760

6 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Georgia (continued)
Monroe County GA PCR Georgia Power Company Plant Scherer Project (Industrial Development Revenue) ±		2.35	%		10-1-2048	$	2,000,000	$	2,028,500
Private Colleges & Universities Authority of Georgia Series A (Education Revenue)		5.00			10-1-2021		3,330,000		3,840,622
									16,429,342
Guam: 0.44%
Guam Education Financing Foundation Certificate of Participation Guam Public School Facilities Project Series A (Miscellaneous Revenue)		5.00			10-1-2017		2,195,000		2,249,436
Guam Government Business Privilege Tax Bond Series A (Tax Revenue)		5.00			1-1-2020		1,215,000		1,370,423
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			7-1-2028		1,000,000		1,127,710
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2020		350,000		396,949
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2033		2,500,000		2,805,675
Guam International Airport Authority (Airport Revenue)		5.00			10-1-2022		1,000,000		1,167,540
Guam International Airport Authority (Airport Revenue)		5.00			10-1-2023		1,500,000		1,738,485
									10,856,218
Illinois: 19.24%
Bolingbrook Will & DuPage Counties IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2023		650,000		762,873
Champaign & Coles Counties IL Community College District #505 Series A (GO Revenue)		4.00			12-1-2018		1,015,000		1,090,597
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2021		1,000,000		774,910
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2022		20,000,000		14,618,600
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2025		3,380,000		2,062,206
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2026		4,030,000		2,307,135
Chicago IL Board of Education School Reform Series A (GO Revenue, National/FGIC Insured)		5.25			12-1-2023		5,125,000		5,592,195
Chicago IL Board of Education Series A3 (GO Revenue) ±		0.84			3-1-2036		10,000,000		9,156,100
Chicago IL Board of Education Series B (GO Revenue, Ambac Insured)		5.00			12-1-2021		7,760,000		7,695,902
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2021		2,500,000		2,424,000
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2029		3,000,000		2,719,470
Chicago IL Board of Education Series C (GO Revenue)		5.25			12-1-2025		5,000,000		4,758,350
Chicago IL Board of Education Series F (GO Revenue)		5.00			12-1-2020		2,375,000		2,329,329
Chicago IL CAB Series A (GO Revenue, National Insured)		5.44			1-1-2018		1,725,000		1,748,460
Chicago IL CAB Series A (GO Revenue, National Insured)		5.65			1-1-2028		555,000		560,550
Chicago IL Metropolitan Reclamation Series B (GO Revenue)		5.00			12-1-2025		2,500,000		2,884,050
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue, AGM Insured)		5.13			1-1-2030		2,610,000		3,029,088
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue, AGM Insured)		5.13			1-1-2031		3,335,000		3,836,717
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue)		5.25			1-1-2032		8,755,000		10,186,180
Chicago IL O’Hare International Airport Senior Lien Series B (Airport Revenue)		5.00			1-1-2030		8,000,000		9,253,840
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue, AGM Insured)		5.00			1-1-2033		1,000,000		1,062,590
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue, AGC/National Insured)		5.25			1-1-2026		1,645,000		1,645,000
Chicago IL O’Hare International Airport Third Lien Series C (Airport Revenue, AGC Insured)		5.25			1-1-2025		4,075,000		4,623,658
Chicago IL O’Hare International Airport Third Lien Series F (Airport Revenue)		4.25			1-1-2021		735,000		805,986

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Park District Series A (GO Revenue)		5.00	%		1-1-2036	$	2,000,000	$	2,114,500
Chicago IL Park District Series B (GO Revenue)		5.00			1-1-2021		3,765,000		4,202,945
Chicago IL Park District Series C (GO Revenue)		5.00			1-1-2022		1,340,000		1,510,461
Chicago IL Public Building Commission School Reform (Miscellaneous Revenue, National Insured)		5.25			12-1-2017		3,555,000		3,706,656
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2025		615,000		652,220
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2026		5,140,000		5,730,843
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2027		3,000,000		3,327,750
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2030		2,075,000		2,260,007
Chicago IL Series A (GO Revenue)		5.00			1-1-2027		1,000,000		1,032,600
Chicago IL Series A (GO Revenue, Ambac Insured)		5.00			1-1-2019		2,500,000		2,550,375
Chicago IL Series A (GO Revenue)		5.00			1-1-2025		750,000		791,453
Chicago IL Series A (GO Revenue)		5.25			1-1-2022		3,820,000		3,952,554
Chicago IL Series A (GO Revenue)		5.25			1-1-2023		4,475,000		4,621,512
Chicago IL Series A (GO Revenue)		5.25			1-1-2028		1,750,000		1,785,578
Chicago IL Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2037		4,750,000		4,884,235
Chicago IL Series B (GO Revenue, AGM Insured)		5.00			1-1-2024		1,300,000		1,313,182
Chicago IL Series C (GO Revenue)		4.00			1-1-2020		1,505,000		1,532,301
Chicago IL Series C (GO Revenue)		5.00			1-1-2024		3,695,000		3,797,425
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		16,865,000		17,185,772
Chicago IL Series J (GO Revenue, Ambac Insured)		5.00			12-1-2023		365,000		371,909
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5307-A (Transportation Revenue, AGC Insured)		5.25			6-1-2022		500,000		533,155
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5309-A (Transportation Revenue, AGC Insured)		6.00			6-1-2024		2,000,000		2,282,880
Chicago IL Transit Authority Sales Tax Receipts (Tax Revenue)		5.25			12-1-2027		2,600,000		2,896,400
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2022		1,340,000		1,505,718
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2023		1,935,000		2,176,585
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2024		2,000,000		2,227,440
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2032		1,000,000		1,099,480
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2033		1,000,000		1,095,840
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2034		1,000,000		1,094,380
Chicago IL Waste Water Transmission Second Lien Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		2,000,000		2,033,760
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2022		1,730,000		1,974,363
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2023		1,155,000		1,318,271
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2025		500,000		561,235
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2026		2,000,000		2,232,080
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2028		3,000,000		3,310,200
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2029		1,490,000		1,639,611
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2031		5,000,000		5,458,450
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2033		1,000,000		1,104,280
Chicago IL Water Revenue Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		10,000,000		10,135,700
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2025		1,250,000		1,436,238
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2027		1,295,000		1,478,916
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2028		1,250,000		1,422,913
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2030		3,000,000		3,425,130
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2031		3,200,000		3,655,488

8 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Cook County IL Series A (GO Revenue)		5.25	%		11-15-2022	$	7,240,000	$	8,068,618
Cook County IL Series A (GO Revenue)		5.25			11-15-2023		7,680,000		8,515,046
Cook County IL Series A (GO Revenue)		5.25			11-15-2024		2,200,000		2,446,796
Cook County IL Series B (GO Revenue)		5.00			11-15-2023		600,000		683,004
Cook County IL Series C (GO Revenue)		5.00			11-15-2021		1,340,000		1,498,200
Cook County IL Series C (GO Revenue)		5.00			11-15-2024		2,175,000		2,422,907
Cook County IL Series C (GO Revenue)		5.00			11-15-2025		2,450,000		2,698,210
DuPage Cook & Will Counties IL Community College District #502 Series A (GO Revenue)		5.00			6-1-2022		2,650,000		3,169,241
DuPage County IL High School District (GO Revenue, AGM Insured)		5.00			1-1-2021		1,000,000		1,041,030
Homer Glen Will & Cook Village Counties IL Series A (GO Revenue)		4.00			12-1-2019		1,000,000		1,090,080
Homer Glen Will & Cook Village Counties IL Series A (GO Revenue)		5.00			12-1-2021		1,015,000		1,127,929
Huntley IL Special Service Area #9 (Tax Revenue, AGC Insured)		4.60			3-1-2017		620,000		628,413
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		2,300,000		2,554,679
Illinois (GO Revenue)		4.75			4-1-2020		2,650,000		2,761,830
Illinois (GO Revenue, AGM Insured)		5.00			9-1-2016		585,000		587,188
Illinois (GO Revenue, AGM Insured)		5.00			1-1-2023		2,450,000		2,654,551
Illinois (Tax Revenue)		5.00			6-15-2023		16,050,000		19,094,846
Illinois (Miscellaneous Revenue)		5.00			7-1-2023		5,000,000		5,527,550
Illinois (Miscellaneous Revenue)		5.00			8-1-2025		1,000,000		1,079,050
Illinois (GO Revenue, AGM Insured)		5.00			4-1-2026		5,000,000		5,600,750
Illinois Board of Trustees of the University of Illinois Utility Infrastructure Projects (Education Revenue, BMO Harris Bank NA SPA) ø		0.24			8-15-2021		15,000,000		15,000,000
Illinois Education Facilities Authority (Miscellaneous Revenue) ±		3.40			11-1-2036		1,275,000		1,310,891
Illinois Education Facilities Authority Field Museum (Miscellaneous Revenue) ±		4.13			11-1-2036		4,560,000		4,747,690
Illinois Finance Authority Student Housing Illinois State University Project (Education Revenue)		5.50			4-1-2021		4,275,000		4,613,452
Illinois Highway Authority Series B (Transportation Revenue, AGM Insured, Landesbank Hessen-Thüringen SPA) ø		0.25			1-1-2016		9,800,000		9,800,000
Illinois Municipal Electric Agency Power Supply (Utilities Revenue, National Insured)		5.00			2-1-2023		1,000,000		1,003,850
Illinois Municipal Electric Agency Power Supply (Utilities Revenue, National Insured)		5.25			2-1-2024		2,500,000		2,624,100
Illinois Municipal Electric Agency Power Supply Series A (Utilities Revenue, National/FGIC Insured)		5.25			2-1-2023		1,100,000		1,154,604
Illinois Regional Transportation Authority (Tax Revenue, AGM Insured)		5.75			6-1-2018		6,790,000		7,527,666
Illinois Regional Transportation Authority (Tax Revenue, National Insured)		6.50			7-1-2026		7,815,000		10,187,947
Illinois Sales Tax Revenue Build Illinois (Tax Revenue)		5.00			6-15-2029		1,000,000		1,146,320
Illinois Series A (Tax Revenue)		5.00			6-1-2022		485,000		498,590
Illinois Series A (GO Revenue)		5.00			4-1-2023		4,500,000		4,970,475
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		2,500,000		2,820,475
Illinois Series A (Tax Revenue)		5.00			1-1-2027		10,625,000		11,326,781
Illinois Series B (Tax Revenue)		5.00			6-15-2018		175,000		191,928
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.00			6-15-2028		2,500,000		2,817,925
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.25			6-15-2030		4,000,000		4,536,920
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.25			6-15-2032		3,000,000		3,381,330
Illinois Toll Highway Authority Series A-1 (Transportation Revenue, AGM Insured)		5.00			1-1-2024		4,650,000		4,756,997
Illinois Toll Highway Authority Series A-1 (Transportation Revenue)		5.25			1-1-2026		3,500,000		3,943,800
Illinois Toll Highway Authority Series B (Transportation Revenue, AGM Insured, Landesbank Hessen-Thüringen SPA) ø		0.25			1-1-2017		31,650,000		31,650,000
Illinois Unrefunded Balance Series A (Miscellaneous Revenue)		5.00			10-1-2016		3,200,000		3,209,888
Illinois Unrefunded Balance Series B (Tax Revenue)		5.00			6-15-2018		825,000		898,945

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Kane Cook & DuPage Counties IL School District #46 Prerefunded Balance Series B (GO Revenue)		4.50	%		1-1-2024	$	1,170,000	$	1,375,826
Kane Cook & DuPage Counties IL School District #46 Unrefunded Balance Series B (GO Revenue)		4.50			1-1-2024		3,100,000		3,509,882
Kane McHenry Cook & DeKalb Counties IL Unified School District (GO Revenue, Ambac Insured)		5.00			1-1-2024		2,000,000		2,086,780
Kendall Kane & Will Counties IL Unified School District Series A (GO Revenue)		5.00			2-1-2023		1,000,000		1,143,650
McHenry & Kane Counties IL Community Consolidated School District #158 (GO Revenue)		5.63			1-15-2031		2,000,000		2,345,220
McHenry & Lake Counties IL Community Consolidated School District #26 (GO Revenue, AGM Insured)		5.00			2-1-2020		1,455,000		1,630,560
Northern IIlinois Municipal Power Agency Prairie State Project Series A (Utilities Revenue, National Insured)		5.00			1-1-2021		2,740,000		2,926,019
Northern Illinois University Board of Trustees Auxiliary Facilities Revenue (Education Revenue, AGM Insured)		5.00			4-1-2019		1,000,000		1,097,230
Northern Illinois University Board of Trustees Certificate of Participation (Education Revenue, AGM Insured)		5.00			9-1-2022		1,325,000		1,520,186
Northern Illinois University Board of Trustees Certificate of Participation (Education Revenue, AGM Insured)		5.00			9-1-2024		1,000,000		1,162,630
Southwestern Illinois Development Authority Local Government Program Collinsville Limited (Tax Revenue)		5.00			3-1-2025		1,975,000		1,659,810
Springfield IL Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2022		3,600,000		3,779,424
Springfield IL Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2023		1,560,000		1,637,750
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2017		455,000		517,890
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2018		535,000		643,193
University of Illinois Auxiliary Facilities Systems (Education Revenue) ¤		0.00			4-1-2020		8,270,000		7,576,230
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, Ambac Insured)		5.50			4-1-2024		1,000,000		1,245,990
University of Illinois Board of Trustees Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2020		2,000,000		2,134,860
Will County IL Community Unified School District CAB (GO Revenue, National Insured) ¤		0.00			11-1-2018		9,730,000		9,201,661
									473,915,860
Indiana: 2.58%
Indiana Bond Bank Hendricks Regional Health Series A (Miscellaneous Revenue)		4.00			8-1-2017		1,000,000		1,047,050
Indiana Bond Bank Hendricks Regional Health Series A (Miscellaneous Revenue)		5.00			8-1-2016		1,340,000		1,374,666
Indiana Bond Bank Special Program Series A (Utilities Revenue)		5.00			10-15-2017		5,410,000		5,772,686
Indiana Bond Bank Special Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2022		1,545,000		1,816,843
Indiana Bond Bank Special Program Series A (Utilities Revenue)		5.25			10-15-2016		600,000		621,042
Indiana Finance Authority Parkview Health System Series A (Health Revenue)		5.50			5-1-2024		4,500,000		5,101,380
Indiana Finance Authority Southern Indiana Gas & Electric Company Project Series D (Utilities Revenue) ±		1.95			3-1-2024		4,000,000		4,039,600
Indiana Finance Authority Stadium Project Series A (Miscellaneous Revenue)		5.25			2-1-2028		2,000,000		2,457,600
Indiana Finance Authority Wastewater Utilities Revenue CWA Authority Project Series A (Water & Sewer Revenue)		5.00			10-1-2030		2,315,000		2,726,399
Indiana Finance Authority Wastewater Utilities Revenue CWA Authority Project Series A (Water & Sewer Revenue)		5.00			10-1-2031		1,035,000		1,214,086
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.75			11-15-2031		15,000,000		15,036,450

10 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Indiana (continued)
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00	%		1-1-2027	$	760,000	$	941,617
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2028		1,000,000		1,230,930
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2029		735,000		898,148
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2030		1,375,000		1,666,651
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2031		1,000,000		1,205,250
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2033		1,545,000		1,847,125
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2034		2,000,000		2,381,460
Jasper County IN PCR Northern Series A (Industrial Development Revenue, National Insured)		5.60			11-1-2016		5,900,000		6,107,916
Jeffersonville IN Building Corporation First Mortgage Series C (Miscellaneous Revenue)		4.25			8-15-2017		415,000		429,836
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2022		925,000		1,042,891
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2023		665,000		730,223
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2026		750,000		807,833
Mount Vernon IN School Building Corporation Prerefunded Balance First Mortgage (Miscellaneous Revenue, AGM Insured)		5.00			7-15-2019		265,000		286,974
Mount Vernon IN School Building Corporation Unrefunded Balance First Mortgage (Miscellaneous Revenue, AGM Insured)		5.00			7-15-2019		735,000		790,956
University of Southern Indiana Student Fee Series J (Education Revenue, AGC Insured)		5.00			10-1-2019		1,000,000		1,126,740
Valparaiso IN Multi-Schools Building Corporation (Miscellaneous Revenue)		5.00			7-15-2024		750,000		910,118
									63,612,470
Iowa: 0.37%
Iowa Student Loan Liquidity Corporation Series 1 (Education Revenue)		5.25			12-1-2017		3,000,000		3,218,400
Iowa Student Loan Liquidity Corporation Series 1 (Education Revenue)		5.25			12-1-2018		5,285,000		5,821,850
									9,040,250
Kansas: 0.24%
Kansas Development Finance Authority Agro-Defense Facility Series G (Miscellaneous Revenue)		5.00			4-1-2030		2,650,000		3,064,858
Kansas Development Finance Authority Health Facilities Series F (Health Revenue)		5.00			11-15-2021		1,300,000		1,516,125
Wyandotte County KS Kansas City Sales Tax Special Obligation Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00			9-1-2034		4,180,000		1,285,726
									5,866,709
Kentucky: 0.53%
Kentucky EDFA Series B (Health Revenue) ±		1.19			2-1-2046		1,250,000		1,241,050
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2020		1,000,000		868,800
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2021		2,750,000		2,297,598

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Kentucky (continued)
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00	%		7-1-2022	$	4,320,000	$	3,432,413
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2025		1,020,000		659,624
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2029		1,400,000		739,256
University of Kentucky Certificate of Participation Master Street Lease #4 (Miscellaneous Revenue)		4.45			6-18-2018		3,580,246		3,724,780
									12,963,521
Louisiana: 1.83%
Bossier City LA Utilities Revenue (Water & Sewer Revenue)		5.00			10-1-2037		2,000,000		2,295,780
Lafayette LA Communications System (Miscellaneous Revenue, AGM Insured)		5.00			11-1-2025		1,500,000		1,794,210
Louisiana Correctional Facilities Corporation (Miscellaneous Revenue, Ambac Insured)		5.00			9-1-2019		1,000,000		1,123,740
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Series A (Water & Sewer Revenue)		5.00			2-1-2030		1,000,000		1,155,660
Louisiana Local Government Environmental Facilities & CDA Trinity Properties (Housing Revenue, FNMA Insured, FNMA LIQ) ±		4.25			4-15-2039		1,225,000		1,233,820
Louisiana Public Facilities Authority Archdiocese of New Orleans Project (Miscellaneous Revenue, CIFG Insured)		5.00			7-1-2016		100,000		101,879
Louisiana Public Facilities Authority Archdiocese of New Orleans Project (Miscellaneous Revenue, CIFG Insured)		5.00			7-1-2017		150,000		157,118
Louisiana Public Facilities Authority Black & Gold Facilities Project Series A (Housing Revenue, AGC Insured)		4.25			7-1-2017		55,000		57,127
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2026		2,000,000		2,398,400
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2027		2,700,000		3,213,324
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2028		2,405,000		2,836,120
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2029		2,695,000		3,167,353
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2030		2,700,000		3,156,705
New Orleans LA Public Improvement Series A (GO Revenue, AGC Insured)		5.00			12-1-2016		1,365,000		1,417,607
New Orleans LA Sewer Service (Water & Sewer Revenue, AGC Insured)		5.50			6-1-2016		690,000		704,870
New Orleans LA Sewer Service (GO Revenue, FGIC Insured)		5.50			12-1-2016		1,350,000		1,408,172
St. Bernard Parish LA Sales & Use Tax (Tax Revenue)		4.00			3-1-2023		3,405,000		3,778,358
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø		0.33			11-1-2040		15,000,000		15,000,000
									45,000,243
Maryland: 1.28%
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00			6-1-2027		500,000		541,560
Maryland Health & HEFAR John Hopkins Health System Series D (Health Revenue) ±		0.99			5-15-2038		3,900,000		3,915,444
Maryland Series B (GO Revenue)		4.00			8-1-2023		5,000,000		5,811,100
Maryland Series B (GO Revenue)		4.00			8-1-2024		15,000,000		17,563,650
Maryland Series C (GO Revenue)		5.00			8-1-2022		2,975,000		3,624,175
									31,455,929

12 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Massachusetts: 2.07%
Boston MA Series A (GO Revenue)		5.00	%		4-1-2026	$	5,790,000	$	7,257,070
Massachusetts Consolidated Loan Series C (Tax Revenue, AGM Insured)		5.25			8-1-2025		5,000,000		5,348,650
Massachusetts Development Finance Agency Lasell College (Education Revenue)		5.00			7-1-2021		2,820,000		3,192,607
Massachusetts Development Finance Agency Merrimack College Series A (Education Revenue)		5.00			7-1-2021		1,035,000		1,146,428
Massachusetts Development Finance Agency MFHR RTH Restoration Housing Limited Partnership (Housing Revenue, Bank of America NA LOC)		1.05			11-1-2017		2,300,000		2,298,091
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		6.50			4-15-2019		1,350,000		1,481,450
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		6.55			4-15-2020		615,000		739,999
Massachusetts Educational Financing Authority Issue I (Education Revenue)		5.50			1-1-2018		2,000,000		2,166,140
Massachusetts Educational Financing Authority Issue I Series A (Education Revenue)		5.50			1-1-2017		2,000,000		2,090,760
Massachusetts HEFA Harvard University Series A (Education Revenue)		5.00			12-15-2029		1,890,000		2,177,809
Massachusetts HEFA Various Partners Healthcare Series G-6 (Health Revenue) ±		0.89			7-1-2038		14,000,000		14,000,420
Massachusetts Housing Finance Agency Multifamily Conduit Wood Ridge Homes Project Series A (Housing Revenue) ±		1.05			12-1-2017		9,000,000		9,001,710
									50,901,134
Michigan: 3.88%
Clinton MI Township Building Authority (Miscellaneous Revenue, Ambac Insured)		5.50			11-1-2017		2,755,000		2,859,525
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2018		3,000,000		3,247,740
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2019		1,500,000		1,657,005
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2020		2,700,000		3,029,778
Eaton Rapids MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		1,785,000		2,119,991
Flint MI International Academy (Education Revenue)		5.38			10-1-2022		2,270,000		2,301,553
Flint MI International Academy (Education Revenue)		5.50			10-1-2027		1,985,000		2,004,572
Flint MI International Academy Public School Project (Education Revenue)		5.00			10-1-2017		190,000		192,527
Hazel Park MI School District (GO Revenue, AGM/Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,160,000		1,331,460
Kent County MI (GO Revenue)		5.00			1-1-2025		1,000,000		1,098,900
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2024		1,750,000		1,980,598
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2025		1,750,000		1,980,598
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2026		1,930,000		2,178,295
Michigan Comprehensive Transportation Program (Tax Revenue)		5.25			5-15-2017		2,750,000		2,906,200
Michigan Finance Authority (Miscellaneous Revenue)		5.00			6-1-2020		1,400,000		1,539,006
Michigan Finance Authority (Health Revenue)		5.00			11-15-2023		400,000		463,356
Michigan Finance Authority (Health Revenue)		5.00			11-15-2026		800,000		903,440
Michigan Finance Authority Limited Obligation Public School Academy Cesar Chavez Academy Project (Education Revenue)		5.00			2-1-2022		2,540,000		2,543,277
Michigan Finance Authority Local Government Loan Program Series C (Health Revenue)		5.00			11-1-2022		2,070,000		2,282,548
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, National Insured)		5.00			7-1-2025		1,000,000		1,169,530
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue)		5.00			7-1-2030		12,000,000		13,692,360
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2035		2,750,000		3,083,218
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2037		2,000,000		2,228,260

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Local Government Loan Program Series F (Tax Revenue)		4.00	%		10-1-2024	$	3,000,000	$	3,186,510
Michigan Housing Development Authority Limited Greenwood Villa Project (Housing Revenue, AGM Insured)		4.75			9-15-2017		710,000		728,275
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.50			5-1-2016		100,000		100,849
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2018		1,075,000		1,101,606
Michigan Public Educational Facilities Authority Limited Obligation Chandler Park Academy (Miscellaneous Revenue)		5.60			11-1-2018		605,000		605,968
Michigan Public Educational Facilities Authority Limited Obligation Nataki Talibah (Miscellaneous Revenue) (i)		6.25			10-1-2023		815,000		407,435
Michigan Strategic Fund Limited Obligation Cadillac Place Office Building Project (Miscellaneous Revenue)		5.25			10-15-2025		4,165,000		4,884,587
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		11,500,000		11,748,400
Pinckney MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2025		2,040,000		2,422,072
Pinckney MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2026		2,505,000		2,944,602
Southfield MI 2015 Street Improvement (GO Revenue)		4.00			5-1-2025		1,490,000		1,668,010
Southfield MI Public Schools (GO Revenue, National/Qualified School Board Loan Fund Insured)		4.38			5-1-2025		4,000,000		4,147,080
Western MI University (Education Revenue)		5.25			11-15-2027		600,000		716,640
Western MI University (Education Revenue)		5.25			11-15-2029		1,000,000		1,179,340
Western MI University (Education Revenue, AGM Insured)		5.25			11-15-2033		750,000		866,378
Western Townships MI Utilities Authority (GO Revenue)		5.00			1-1-2017		1,500,000		1,562,010
Wyandotte MI Series A (Utilities Revenue, AGC Insured)		4.00			10-1-2016		500,000		513,175
									95,576,674
Minnesota: 0.37%
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series B (Airport Revenue, National Insured)		5.00			1-1-2018		4,555,000		4,750,318
Northern Minnesota Municipal Power Agency Series A (Utilities Revenue, AGC Insured)		5.00			1-1-2016		1,365,000		1,365,000
St. Louis Park MN Nicollett Health Services Series C (Health Revenue)		5.50			7-1-2023		2,500,000		2,777,725
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		5.50			9-1-2018		200,000		202,126
									9,095,169
Mississippi: 0.57%
Mississippi Development Bank Special Obligation Jackson Public School District Project Series A (Miscellaneous Revenue)		5.00			4-1-2020		1,000,000		1,136,380
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project (Water & Sewer Revenue, AGM Insured)		6.00			12-1-2023		1,145,000		1,477,874
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project Series A (Water & Sewer Revenue, AGM Insured)		5.00			9-1-2030		10,000,000		11,411,800
									14,026,054
Missouri: 0.30%
Kansas City MO Municipal Assistance Corporation Series B-1 (Miscellaneous Revenue, Ambac Insured) ¤		0.00			4-15-2022		3,640,000		3,074,490
Manchester MO Highway 141 Manchester Road Project (Tax Revenue)		6.00			11-1-2025		565,000		595,369

14 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Missouri (continued)
Maryland Heights MO South Heights Redevelopment Project A (Tax Revenue)		5.50	%		9-1-2018	$	465,000	$	478,838
Poplar Bluff MO School District (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2032		1,500,000		1,729,890
Poplar Bluff MO School District (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2034		1,000,000		1,149,340
St. Louis MO Lambert St. Louis International Airport Series A-1 (Airport Revenue)		6.00			7-1-2019		415,000		477,985
									7,505,912
Nebraska: 0.13%
Lincoln County NE Hospital Authority Great Plains Regional Medical Center (Health Revenue)		5.00			11-1-2024		1,000,000		1,137,980
Municipal Energy Agency of Nebraska Series A (Utilities Revenue, BHAC Insured)		5.00			4-1-2019		500,000		560,550
Nebraska Central Plains Energy Project #3 (Utilities Revenue)		5.00			9-1-2027		1,290,000		1,445,626
									3,144,156
Nevada: 1.17%
Clark County NV Airport Series C (Airport Revenue, AGM Insured)		5.00			7-1-2023		5,600,000		6,243,944
Clark County NV Airport Series D (Airport Revenue)		5.00			7-1-2024		2,750,000		3,122,323
Clark County NV Las Vegas McCarran International Airport Series A (Airport Revenue)		5.00			7-1-2016		3,000,000		3,068,700
Clark County NV Water Reclamation District (GO Revenue)		5.00			7-1-2027		4,155,000		5,095,567
Clark County NV Water Reclamation District Series A (GO Revenue)		5.25			7-1-2038		2,880,000		3,232,800
Las Vegas NV New Convention & Visitors Authority Series E (Tax Revenue, AGM Insured)		4.20			7-1-2021		500,000		551,200
Las Vegas NV Series A (GO Revenue)		5.00			5-1-2031		1,985,000		2,352,880
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2019		760,000		782,245
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2020		640,000		658,522
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2021		825,000		845,584
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.25			6-1-2024		200,000		204,976
Reno NV Sparks Indian Governmental Colony (Miscellaneous Revenue, U.S. Bank NA LOC)		5.00			6-1-2021		2,580,000		2,612,843
									28,771,584
New Hampshire: 0.09%
New Hampshire HFA Single Family Mortgage Acquisition Series E & F (Housing Revenue)		4.80			7-1-2028		2,150,000		2,312,089
New Jersey: 5.06%
Essex County NJ Import Authority Series A (Miscellaneous Revenue)		6.00			11-1-2025		5,000,000		5,626,000
Garden NJ Open Space & Farmland Preservation Refunding Bonds Series A (Tax Revenue)		4.00			11-1-2017		930,000		970,195
New Jersey EDA (Tobacco Revenue)		5.00			6-15-2021		2,500,000		2,739,450
New Jersey EDA Motor Vehicle Surcharges Series A (Miscellaneous Revenue, National Insured)		5.25			7-1-2026		2,860,000		3,366,849
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.61			3-1-2028		15,000,000		13,207,950
New Jersey EDA School Facilities Construction Refunding Bond Series NN (Miscellaneous Revenue)		5.00			3-1-2021		15,035,000		16,470,391
New Jersey EDA School Facilities Construction Refunding Bond Series PP (Miscellaneous Revenue)		5.00			6-15-2026		8,380,000		9,138,725
New Jersey Educational Facilities Authority (Miscellaneous Revenue)		5.00			6-15-2026		3,015,000		3,287,978
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2016		500,000		508,830

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00	%		12-1-2016	$	2,100,000	$	2,176,041
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2017		2,000,000		2,098,680
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2019		9,860,000		10,855,466
New Jersey Housing & Mortgage Finance Agency Series AA (Housing Revenue)		5.25			10-1-2016		220,000		224,657
New Jersey Sports & Exposition Authority (Miscellaneous Revenue, National Insured)		5.50			3-1-2022		1,755,000		2,174,831
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144Aø		0.19			12-15-2022		19,925,000		19,925,000
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			6-15-2020		4,000,000		4,354,840
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		1,305,000		1,444,022
New Jersey TTFA Series A (Transportation Revenue, AGM Insured)		5.50			12-15-2022		7,775,000		9,112,222
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		2,500,000		2,737,175
New Jersey TTFA Unrefunded Balance (Transportation Revenue, National Insured)		5.25			12-15-2021		6,000,000		6,859,620
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2022		1,630,000		1,876,146
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2024		1,775,000		2,069,118
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		1,860,000		2,178,432
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		1,000,000		1,162,430
									124,565,048
New Mexico: 0.68%
Albuquerque Bernalillo County Water Utility Authority Series B (Water & Sewer Revenue)		5.00			7-1-2024		1,000,000		1,228,620
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2028		9,265,000		10,530,599
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2029		1,000,000		1,129,760
New Mexico Mortgage Finance Authority SFMR Class I Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		4.63			9-1-2025		1,290,000		1,323,901
New Mexico Mortgage Finance Authority SFMR Class I Series B (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.00			3-1-2028		510,000		542,212
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		0.91			11-1-2039		2,000,000		1,983,600
									16,738,692
New York: 10.54%
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		2,720,000		3,059,728
Liberty Development Corporation New York Series 1251 (Miscellaneous Revenue, Morgan Stanley Bank LIQ) 144Aø		0.15			10-1-2035		7,914,000		7,914,000
Monroe County NY Development Corporation (Education Revenue)		5.00			6-1-2020		2,125,000		2,388,713
Monroe County NY Industrial Development Corporation Revenue Monroe Community College (Education Revenue, AGM Insured)		5.00			1-15-2022		790,000		900,790
Monroe County NY Industrial Development Corporation Revenue Monroe Community College (Education Revenue, AGM Insured)		5.00			1-15-2023		645,000		743,756
Monroe County NY Industrial Development Corporation Revenue Monroe Community College (Education Revenue, AGM Insured)		5.00			1-15-2024		905,000		1,049,891
Nassau County NY TAN Series A (GO Revenue)		2.00			9-15-2016		5,000,000		5,047,500
Nassau NY Water Authority Series A (Water & Sewer Revenue)		5.00			4-1-2027		350,000		420,172
Nassau NY Water Authority Series A (Water & Sewer Revenue)		5.00			4-1-2028		300,000		357,963
Nassau NY Water Authority Series B (Water & Sewer Revenue)		5.00			4-1-2024		400,000		484,824
Nassau NY Water Authority Series B (Water & Sewer Revenue)		5.00			4-1-2026		755,000		913,995

16 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York Convention Center Development Corporation (Tax Revenue)		5.00	%		11-15-2028	$	8,000,000	$	9,736,960
New York Dormitory Authority Interagency Council Pooled Loan Series A-1 (Miscellaneous Revenue)		4.00			7-1-2019		740,000		796,551
New York Dormitory Authority Mount Sinai School of Medicine (Education Revenue)		5.50			7-1-2022		2,000,000		2,296,140
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		0.95			5-1-2018		1,180,000		1,180,330
New York Dormitory Authority Series A (Tax Revenue)		5.00			3-15-2028		5,000,000		6,090,850
New York Dormitory Authority Series B (Tax Revenue, Ambac Insured)		5.50			3-15-2025		3,885,000		5,007,843
New York Dormitory Authority State University Educational Facilities Series A (Miscellaneous Revenue)		5.50			5-15-2019		3,675,000		4,076,898
New York Dormitory Authority United Health Hospitals (Health Revenue, FHA Insured)		4.50			8-1-2018		1,500,000		1,600,140
New York Metropolitan Transportation Authority Dedicated Tax Fund Series A (Tax Revenue)		5.00			11-15-2024		6,010,000		7,281,956
New York Metropolitan Transportation Authority Series A (Transportation Revenue)		5.00			11-15-2030		4,010,000		4,725,224
New York Metropolitan Transportation Authority Series C (Transportation Revenue)		5.25			11-15-2028		5,000,000		6,155,000
New York Metropolitan Transportation Authority Series C (Transportation Revenue)		5.25			11-15-2029		11,100,000		13,619,256
New York Metropolitan Transportation Authority Series C (Transportation Revenue)		5.25			11-15-2030		8,350,000		10,202,364
New York Metropolitan Transportation Authority Series C (Transportation Revenue)		5.25			11-15-2031		4,500,000		5,484,105
New York Metropolitan Transportation Authority Series D (Transportation Revenue)		5.00			11-15-2027		2,000,000		2,365,140
New York Metropolitan Transportation Authority Series F (Transportation Revenue)		5.00			11-15-2025		2,490,000		3,101,569
New York Metropolitan Transportation Authority Series F (Transportation Revenue)		5.00			11-15-2028		2,450,000		2,911,678
New York NY Municipal Water Finance Authority Series AA-2 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.30			6-15-2032		12,475,000		12,475,000
New York NY Municipal Water Finance Authority Series GG (Water & Sewer Revenue)		5.00			6-15-2029		1,645,000		1,997,408
New York NY Series C (GO Revenue)		5.00			8-1-2031		5,000,000		5,938,500
New York NY Series J-4 (GO Revenue) ±		0.56			8-1-2025		10,000,000		10,000,300
New York NY Series J-8 (GO Revenue) ø		0.39			8-1-2021		10,000,000		10,000,000
New York NY Transitional Finance Authority Prerefunded Balance Series A (Tax Revenue)		5.00			5-1-2023		2,875,000		3,236,273
New York NY Transitional Finance Authority Series B (Tax Revenue)		5.00			8-1-2027		1,115,000		1,360,969
New York NY Transitional Finance Authority Series C (Tax Revenue)		5.00			11-1-2027		5,000,000		6,161,000
New York NY Transitional Finance Authority Sub Series 2-B (Tax Revenue, Dexia Credit Local SPA) ø		0.24			11-1-2022		14,550,000		14,550,000
New York NY Transitional Finance Authority Sub Series 2-A (Tax Revenue, Dexia Credit Local LIQ) ø		0.24			11-1-2022		2,500,000		2,500,000
New York NY Transitional Finance Authority Sub Series A-3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24			8-1-2022		8,000,000		8,000,000
New York NY Transitional Finance Authority Sub Series B-1 (Tax Revenue)		5.00			11-1-2028		1,000,000		1,233,230
New York NY Trust for Cultural Resources Series A-1 (Miscellaneous Revenue)		5.00			7-1-2031		2,475,000		2,754,279
New York NY Various Sub Series H-5 (GO Revenue, Dexia Credit Local LOC) ø		0.24			3-1-2034		9,945,000		9,945,000

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 17

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20	%		2-1-2017	$	14,970,000	$	14,969,850
New York Urban Development Corporation Personal Income Tax Series A Group B (Tax Revenue)		5.00			3-15-2031		3,815,000		4,521,576
New York Urban Development Corporation Series D (Miscellaneous Revenue, AGC Insured)		5.50			1-1-2019		3,000,000		3,385,650
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2020		1,160,000		1,291,660
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2022		1,350,000		1,544,846
Port Authority New York & New Jersey Special Obligation (Airport Revenue)		5.00			12-1-2020		5,000,000		5,682,650
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		20,855,000		20,998,900
Suffolk NY Public Improvement Serial Bond Series A (GO Revenue, AGM Insured)		3.00			6-1-2019		1,180,000		1,239,460
Suffolk NY Tobacco Asset Securitization Corporation Tobacco Settlement Series B (Tobacco Revenue)		4.00			6-1-2022		420,000		463,995
Suffolk NY Tobacco Asset Securitization Corporation Tobacco Settlement Series B (Tobacco Revenue)		5.00			6-1-2023		500,000		578,035
Troy NY Capital Resource Corporation Rensselaer Polytechnic Series B (Education Revenue)		5.00			9-1-2020		1,430,000		1,634,819
Upper Mohawk Valley NY Regional Water Finance Authority Series A (Water & Sewer Revenue, AGC Insured)		5.00			4-1-2018		635,000		662,102
Utility Debt Securitization Authority New York (Utilities Revenue)		5.00			12-15-2032		1,250,000		1,503,138
Yonkers NY Series A (GO Revenue, AGM Insured)		5.00			10-1-2024		1,000,000		1,150,860
									259,692,836
North Carolina: 0.65%
Craven County NC Certificate of Participation (Miscellaneous Revenue, National Insured)		5.00			6-1-2023		4,400,000		4,663,736
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2020		3,400,000		3,896,026
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2022		250,000		293,420
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2023		1,000,000		1,181,480
North Carolina Grant Anticipation Vehicle Bond (Miscellaneous Revenue)		5.00			3-1-2029		2,470,000		2,910,228
Onslow County NC Limited Obligation Series A (Miscellaneous Revenue)		4.00			6-1-2022		90,000		102,012
Pitt County NC Certificate of Participation School Facilities Project Prerefunded Balance (Miscellaneous Revenue, National Insured)		5.00			4-1-2023		1,185,000		1,248,220
Pitt County NC Certificate of Participation School Facilities Project Unrefunded Balance (Miscellaneous Revenue, National Insured)		5.00			4-1-2023		1,570,000		1,650,572
									15,945,694
North Dakota: 0.19%
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		4,000,000		3,996,480
North Dakota Housing Finance Agency Series D (Housing Revenue)		4.50			1-1-2029		780,000		816,847
									4,813,327
Ohio: 2.62%
Cincinnati OH City School District Improvement Project Certificate of Participation (Miscellaneous Revenue)		5.00			12-15-2024		4,815,000		5,777,519
Cincinnati OH City School District Improvement Project Certificate of Participation (Miscellaneous Revenue)		5.00			12-15-2025		2,095,000		2,502,582
Clermont County OH Port Authority West Clermont Local School District Project (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		500,000		602,265
Clermont County OH Port Authority West Clermont Local School District Project (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		600,000		716,892

18 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Ohio (continued)
Clermont County OH Port Authority West Clermont Local School District Project (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00	%		12-1-2028	$	1,250,000	$	1,467,325
JobsOhio Beverage System Statewide Liquor Profits Senior Lien Series A (Miscellaneous Revenue)		5.00			1-1-2022		2,500,000		2,965,575
Kent University OH General Receipts Series B (Education Revenue, AGC Insured)		5.00			5-1-2018		1,165,000		1,268,336
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75			12-1-2023		2,000,000		2,058,600
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			10-1-2033		1,750,000		1,782,760
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			12-1-2033		2,500,000		2,539,375
Ohio Building Authority Series A (Miscellaneous Revenue)		5.00			10-1-2024		1,000,000		1,156,420
Ohio Turnpike Commission Junior Lien Infrastructure Projects Series A-1 (Transportation Revenue)		5.25			2-15-2029		1,000,000		1,176,590
Ohio University Hospitals Health Systems Series B (Health Revenue) ø		0.35			1-15-2033		9,500,000		9,500,000
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series A (Water & Sewer Revenue) ±		3.75			6-1-2033		10,000,000		10,245,400
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series B (Industrial Development Revenue) ±		3.63			10-1-2033		3,150,000		3,236,783
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		15,000,000		15,464,550
RiverSouth Authority Ohio Lazarus Building Redevelopment Series A (Miscellaneous Revenue)		5.75			12-1-2027		950,000		1,009,413
Summit County OH Port Authority University of Akron Student Housing Project (Education Revenue)		5.25			1-1-2024		1,000,000		1,149,290
									64,619,675
Oklahoma: 1.65%
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2019		1,325,000		1,428,165
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2022		2,595,000		2,888,183
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2023		1,010,000		1,115,161
Creek County OK Educational Facilities Sapulpa Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2023		3,000,000		3,563,910
Cushing OK Educational Facilities Authority (Miscellaneous Revenue)		5.00			9-1-2022		2,210,000		2,640,574
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2018		820,000		894,645
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2019		860,000		959,786
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2020		455,000		516,889
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2026		1,000,000		1,182,350
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2027		500,000		587,175
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2023		1,000,000		1,184,890
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2024		1,075,000		1,282,583
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2025		500,000		599,285
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2028		1,160,000		1,360,460
McGee Creek OK Authority (Water & Sewer Revenue, State Street Bank & Trust Company LOC, National Insured)		6.00			1-1-2023		1,490,000		1,641,146

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma (continued)
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00	%		9-1-2020	$	1,000,000	$	1,125,070
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2021		1,000,000		1,138,650
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2022		1,000,000		1,146,650
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2026		1,495,000		1,791,862
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2027		1,140,000		1,358,549
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2028		1,265,000		1,495,331
Oklahoma Development Finance Authority (Miscellaneous Revenue)		4.00			6-1-2023		1,270,000		1,437,043
Oklahoma Development Finance Authority (Miscellaneous Revenue)		5.00			6-1-2023		1,230,000		1,476,923
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2019		1,500,000		1,662,210
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2021		1,185,000		1,334,026
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2022		520,000		582,161
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2025		1,200,000		1,321,968
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2026		1,250,000		1,371,250
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2027		1,000,000		1,092,560
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2028		500,000		544,450
									40,723,905
Oregon: 0.05%
Medford OR Hospital Facilities Authority Revenue (Health Revenue)		5.00			10-1-2020		1,155,000		1,302,701
Pennsylvania: 6.46%
Adams County PA IDA Gettysburg College Project (Education Revenue)		5.00			8-15-2024		1,500,000		1,690,230
Adams County PA IDA Gettysburg College Project (Education Revenue)		5.00			8-15-2025		1,500,000		1,685,475
Allegheny County PA Hospital Development Authority Series B (Health Revenue, National Insured)		6.00			7-1-2025		2,605,000		3,397,493
Allegheny County PA Moon Area School District Series A (GO Revenue)		5.00			11-15-2024		3,400,000		4,121,480
Allegheny County PA Series 72 (GO Revenue)		5.25			12-1-2033		4,000,000		4,703,880
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		5,000,000		5,093,450
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.51			11-1-2039		10,000,000		10,080,500
Bucks County PA Water & Sewer Authority Water System (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2026		2,400,000		2,782,152
Central Greene PA School District Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			2-15-2019		865,000		957,486
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		5.65			12-15-2017		250,000		259,743
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2025		1,340,000		1,527,332
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2026		1,370,000		1,546,662
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2027		1,225,000		1,372,845
Delaware County PA Vocational & Technical School Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.25			11-1-2033		2,000,000		2,295,440
Delaware Valley PA Regional Finance Authority Series 2996 (Miscellaneous Revenue, Morgan Stanley Bank LIQ) 144Aø		0.26			7-1-2017		7,500,000		7,500,000

20 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Johnstown PA School District (GO Revenue, AGM Insured)		5.00	%		8-1-2024	$	2,730,000	$	3,138,135
Lancaster County PA Solid Waste Management Authority Series A (Resource Recovery Revenue)		5.25			12-15-2028		5,665,000		6,623,745
Lycoming County PA Authority Pennsylvania College of Technology (Education Revenue)		5.50			7-1-2026		4,000,000		4,617,560
Millcreek Richland Joint Authority Pennsylvania Series B (Water & Sewer Revenue, AGC Insured)		4.70			8-1-2017		385,000		399,318
Moon Area PA School District Series A (GO Revenue)		5.00			11-15-2029		1,000,000		1,168,750
Northampton County PA General Purpose Hospital Authority St. Luke’s Hospital Project Series C (Health Revenue) ±		4.50			8-15-2032		1,170,000		1,193,225
Pennsylvania HEFAR Series AQ (Education Revenue)		5.00			6-15-2023		3,065,000		3,630,278
Pennsylvania HEFAR Series AR (Education Revenue)		5.00			6-15-2025		1,000,000		1,204,190
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2019		880,000		942,920
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2020		590,000		636,634
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2022		1,310,000		1,426,787
Pennsylvania Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		1,460,000		1,563,631
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2024		2,000,000		2,211,320
Pennsylvania Public School Building Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		2.00			5-15-2016		800,000		803,992
Pennsylvania Public School Building Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			5-15-2021		500,000		549,870
Pennsylvania Public School Building Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			5-15-2022		1,000,000		1,091,780
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2020		2,000,000		2,216,960
Pennsylvania Public School Building Authority (Education Revenue)		5.00			5-1-2023		2,185,000		2,582,648
Pennsylvania Public School Building Authority (Education Revenue)		5.00			6-15-2025		2,265,000		2,660,922
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2029		1,000,000		1,065,010
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2024		1,250,000		1,493,750
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		1,250,000		1,477,350
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		1,250,000		1,468,413
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		1,010,000		1,187,275
Pennsylvania Series 2 (GO Revenue)		5.00			4-15-2023		2,000,000		2,231,840
Pennsylvania Turnpike Commission Sub Series C (Transportation Revenue, AGM Insured) ¤		0.00			6-1-2033		1,350,000		1,681,655
Pennsylvania Turnpike Commission Sub Series E (Transportation Revenue) ¤		0.00			12-1-2038		2,000,000		2,307,000
Philadelphia PA Authority for Industrial Development (Education Revenue)		6.13			6-15-2023		1,000,000		1,095,970
Philadelphia PA Authority for Industrial Development (Education Revenue)		5.88			6-15-2022		1,000,000		1,088,230
Philadelphia PA Authority for Industrial Development (Education Revenue)		7.00			5-1-2026		740,000		786,420
Philadelphia PA Gas Works 8th General Ordinance Series A (Utilities Revenue)		5.00			8-1-2016		1,000,000		1,025,710
Philadelphia PA IDA Master Charter School (Education Revenue)		5.00			8-1-2020		510,000		545,246
Philadelphia PA IDA West Philadelphia Achievement Charter Elementary School Project (Education Revenue)		5.00			5-1-2016		95,000		95,188
Philadelphia PA IDA West Philadelphia Achievement Charter Elementary School Project (Education Revenue)		6.25			5-1-2021		285,000		298,757
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		8,065,000		8,803,593
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2021		2,200,000		2,520,100

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Philadelphia PA School District Refunding Bond Series D (GO Revenue)		5.00	%		9-1-2022	$	3,750,000	$	4,335,563
Philadelphia PA Series A (GO Revenue)		5.00			9-15-2021		7,000,000		8,228,080
Philadelphia PA Series A (GO Revenue)		5.00			8-1-2024		1,000,000		1,197,650
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2026		3,000,000		3,507,810
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2028		2,590,000		3,047,394
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2029		4,410,000		5,168,520
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2032		4,380,000		5,082,640
Pittsburgh PA Series A (GO Revenue)		4.00			9-1-2022		1,000,000		1,135,800
Pittsburgh PA Series A (GO Revenue)		5.00			9-1-2022		2,060,000		2,468,477
Pittsburgh PA Series A (GO Revenue)		5.00			9-1-2023		3,810,000		4,518,203
Reading PA School District (GO Revenue)		5.00			4-1-2021		3,120,000		3,491,686
									159,030,163
Puerto Rico: 0.05%
Puerto Rico Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016		1,350,000		1,366,700
Rhode Island: 0.30%
Providence RI Series A (GO Revenue, AGM Insured)		4.00			1-15-2018		2,115,000		2,219,185
Rhode Island Health & Educational Building Corporation Providence Public Schools Financing Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			5-15-2021		2,670,000		2,716,218
Rhode Island Health & Educational Building Corporation Providence Public Schools Financing Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			5-15-2022		2,425,000		2,565,893
									7,501,296
South Carolina: 0.86%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2016		26,606		26,404
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		35,996		28,792
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		39,781		27,046
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2021		1,000,000		1,164,170
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2022		1,250,000		1,466,025
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2025		1,000,000		1,196,820
Lee County SC School Facilities Incorporated Series 2006 (Miscellaneous Revenue, AGC Insured)		6.00			12-1-2016		590,000		618,108
Piedmont SC Municipal Power Agency Series A-3 (Utilities Revenue)		5.25			1-1-2019		3,500,000		3,773,525
Scago SC Educational Facilities Corporation For Sumter County School District 17 (Miscellaneous Revenue)		4.00			12-1-2019		1,000,000		1,078,230
Scago SC Educational Facilities Corporation For Sumter County School District 17 (Miscellaneous Revenue)		5.00			12-1-2022		1,720,000		2,001,203
South Carolina Education Assistance Authority Student Loan Series I (Education Revenue)		5.00			10-1-2024		2,830,000		3,049,268
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2028		700,000		834,197
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2030		1,885,000		2,214,630
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2031		2,155,000		2,520,897
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.00			11-1-2033		1,000,000		1,097,870
									21,097,185
South Dakota: 0.04%
Rapid City SD Airport Project (Airport Revenue)		6.25			12-1-2026		920,000		1,012,018

22 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Tennessee: 0.65%
Chattanooga TN Health Educational & Housing Facilities University of Tennessee at Chattanooga Project (Housing Revenue)		5.00	%		10-1-2023	$	750,000	$	867,173
Franklin County TN HEFA (Education Revenue)		4.00			9-1-2024		250,000		277,918
Franklin County TN HEFA (Education Revenue)		5.00			9-1-2030		560,000		639,061
Shelby County TN Health Educational & Housing Facilities Board Le Bonheur Children’s Medical Center Series D (Health Revenue, National Insured)		5.50			8-15-2019		445,000		482,643
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.00			9-1-2016		500,000		514,000
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		2,140,000		2,284,022
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		1,400,000		1,537,480
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2021		4,060,000		4,732,701
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2016		1,820,000		1,826,406
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2027		2,485,000		2,914,756
									16,076,160
Texas: 9.18%
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2023		3,805,000		4,645,372
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2024		3,970,000		4,893,541
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2025		2,050,000		2,554,526
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2026		1,450,000		1,800,958
Austin TX Refunding Revenue Bond (Utilities Revenue, National Insured)		5.25			5-15-2025		1,400,000		1,709,134
Bexar County TX Combination Tax Certificate of Obligation (GO Revenue)		5.00			6-15-2024		1,000,000		1,236,600
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2026		2,190,000		2,649,112
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2029		1,500,000		1,778,190
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2030		2,500,000		2,941,250
Central Texas Regional Mobility Authority (Transportation Revenue)		5.75			1-1-2019		1,310,000		1,472,322
Central Texas Regional Mobility Authority Series B (Transportation Revenue) ±		5.00			1-1-2045		8,000,000		9,072,160
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2023		1,350,000		1,646,123
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2026		1,000,000		1,240,650
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2027		1,300,000		1,592,422
Conroe TX Independent School District Series A (GO Revenue)		4.00			2-15-2023		1,000,000		1,152,850
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2022		1,515,000		1,751,431
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2023		1,395,000		1,633,503
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2026		1,000,000		1,178,540
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2030		1,130,000		1,281,883
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2031		1,000,000		1,130,410
Cypress-Fairbanks TX Independent School District Series B-2 (GO Revenue) ±		3.00			2-15-2040		11,010,000		11,513,487
Del Rio TX Refunding Bonds (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2023		720,000		805,104
Del Rio TX Refunding Bonds (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2024		745,000		833,439
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2023		1,990,000		2,423,601
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2024		1,145,000		1,407,503
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2025		1,000,000		1,219,310
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2030		1,000,000		1,188,150
El Paso County TX Hospital District (GO Revenue)		5.00			8-15-2028		2,045,000		2,326,801
Galveston TX Wharves & Terminal (Airport Revenue)		5.00			2-1-2026		2,000,000		2,171,020
Georgetown TX Independent School District (GO Revenue) ±		2.00			8-1-2034		1,630,000		1,655,754
Harris County TX Tax Road Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		8,445,000		10,404,409
Harris County TX Toll Road Project Series C (GO Revenue, AGM Insured)		5.25			8-15-2027		4,000,000		5,118,640
Hays County TX Refunding Bond (GO Revenue)		5.00			2-15-2023		1,750,000		2,103,325
Houston TX Airport Senior Lien Series A (Airport Revenue)		5.00			7-1-2025		1,000,000		1,091,940

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Houston TX Higher Education Financial Corporation Series A (Education Revenue)		4.00	%		2-15-2022	$	850,000	$	890,885
Houston TX Independent School District Limited Tax (GO Revenue)		4.25			2-15-2021		5,000,000		5,184,350
Houston TX Utilities Systems Series A (Water & Sewer Revenue)		5.25			11-15-2031		3,000,000		3,508,950
Lower Colorado River TX Authority (Utilities Revenue)		5.50			5-15-2031		2,500,000		2,970,525
Midland County TX PFFA Compass Pointe Apartments (Housing Revenue)		1.25			3-1-2018		2,500,000		2,498,350
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2027		1,880,000		2,194,355
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2029		2,390,000		2,763,175
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2030		1,500,000		1,721,865
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2031		1,000,000		1,138,410
North Harris County TX Regional Water Authority Senior Lien (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-15-2029		1,215,000		1,405,439
North Texas Health Facilities Development Corporation United Regional Health Care System (Health Revenue, AGM Insured)		5.00			9-1-2016		1,135,000		1,165,452
North Texas Higher Education Authority Incoming Student Loan Series A-2 (Education Revenue) ±		1.23			7-1-2030		8,040,000		8,040,884
Northwest TX Independent School District Refunding Bond (GO Revenue)		5.00			2-15-2030		4,000,000		4,839,640
Nueces River TX Water Supply Facility Corpus Christi Lake Texana Project (Water & Sewer Revenue)		5.00			7-15-2026		1,000,000		1,217,800
Nueces River TX Water Supply Facility Corpus Christi Lake Texana Project (Water & Sewer Revenue)		5.00			7-15-2027		1,250,000		1,511,763
Pearland TX Permanent Improvement Refunding Bond (GO Revenue)		5.00			3-1-2023		1,695,000		2,049,764
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.26			12-1-2039		15,925,000		15,925,000
Port Arthur TX Navigation District Motiva Enterprises LLC Series B (Resource Recovery Revenue) ø		0.26			12-1-2039		15,000,000		15,000,000
San Antonio TX Electric & Gas Revenue Junior Lien Series B (Utilities Revenue) ±		1.75			12-1-2027		5,000,000		5,041,900
Texas Independent School District Refunding Bond (GO Revenue)		5.00			8-15-2025		2,260,000		2,843,735
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ø		0.48			9-15-2017		3,505,000		3,505,000
Texas Municipal Gas Acquisition & Supply Corporation III Gas Supply Revenue Series 2012 (Utilities Revenue)		5.00			12-15-2021		3,945,000		4,584,682
Texas Municipal Gas Acquisition & Supply Corporation Series B (Utilities Revenue)		5.00			12-15-2022		5,000,000		5,849,100
Texas Private Activity Surface Transportation Corporation Project (Transportation Revenue)		7.50			6-30-2032		2,000,000		2,476,960
Texas Private Activity Surface Transportation Corporation Project (Transportation Revenue)		7.50			6-30-2033		2,000,000		2,476,960
Texas Private Activity Surface Transportation Corporation Project Senior Lien Note (Transportation Revenue)		7.50			12-31-2031		3,500,000		4,245,500
Texas SA Energy Acquisition Public Facility Corporation Gas Supply (Utilities Revenue)		5.25			8-1-2016		5,660,000		5,807,613
Texas SA Energy Acquisition Public Facility Corporation Gas Supply (Utilities Revenue)		5.50			8-1-2019		1,465,000		1,654,981
Texas Transportation Commission State Highway Series B (Transportation Revenue, Banco Bilbao Vizcaya SPA) ø		0.23			4-1-2026		10,000,000		10,000,000
Texas Woman’s University Financing System (Education Revenue)		4.00			7-1-2020		1,000,000		1,109,090
University of Houston Texas (Education Revenue)		5.00			2-15-2024		2,700,000		2,975,535
University of Houston Texas Series B (Education Revenue)		5.25			7-1-2026		4,225,000		5,413,662

24 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Waco TX Health Facilities Development Corporation Hillcrest System Project Series A (Health Revenue, National/FHA Insured)		5.00	%		8-1-2016	$	920,000	$	944,527
Weatherford TX Utility System Refunding & Improvement Bond (Utilities Revenue, AGM Insured)		5.00			9-1-2025		1,000,000		1,209,960
Weatherford TX Utility System Refunding & Improvement Bond (Utilities Revenue, AGM Insured)		5.00			9-1-2026		375,000		449,820
									226,239,092
Utah: 0.18%
Canyons UT Board of Education Utah School Bond Guaranty Program (GO Revenue, AGM Insured)		5.00			6-15-2022		1,860,000		2,245,020
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2020		250,000		273,075
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2021		400,000		441,764
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2022		400,000		444,796
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2023		400,000		446,236
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2024		450,000		502,682
									4,353,573
Virgin Islands: 0.32%
Virgin Islands PFA (Miscellaneous Revenue)		6.75			10-1-2019		2,480,000		2,757,190
Virgin Islands PFA Sub Lien Series C (Miscellaneous Revenue)		5.00			10-1-2017		5,000,000		5,246,800
									8,003,990
Virginia: 0.28%
Greater Richmond VA Convention Center (Tax Revenue)		5.00			6-15-2025		1,000,000		1,228,280
Marquis VA CDA CAB Series C (Tax Revenue) (i)¤		0.00			9-1-2041		1,772,000		230,466
Marquis VA CDA Convertible CAB (Tax Revenue) 144A¤		0.00			9-1-2045		386,000		250,912
Marquis VA CDA Series B (Tax Revenue) (i)		5.63			9-1-2041		1,274,000		1,020,015
Virginia Small Business Financing Authority (Education Revenue)		5.25			10-1-2029		3,000,000		3,495,840
Watkins Centre VA CDA (Miscellaneous Revenue)		5.40			3-1-2020		701,000		703,313
									6,928,826
Washington: 1.82%
Energy Northwest Washington Wind Project (Utilities Revenue)		5.00			7-1-2022		1,185,000		1,399,912
Grant County WA Public Utility District #2 Priest Rapids Series A (Utilities Revenue, National Insured)		5.00			1-1-2023		345,000		345,000
King County WA Federal Way School District #210 (GO Revenue, AGM Insured)		4.00			12-1-2023		4,085,000		4,697,546
Lewis County WA Public Utility District Refunding (Utilities Revenue)		5.25			4-1-2032		6,115,000		7,369,370
Seattle WA Refunding Bond Series A (GO Revenue)		5.00			6-1-2024		6,345,000		7,841,786
Tumwater Office Properties Washington Lease Revenue Washington Office Buildings (Miscellaneous Revenue)		5.00			7-1-2026		2,750,000		3,281,713
Washington EDFA (Education Revenue)		5.00			6-1-2028		1,000,000		1,191,110
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2023		4,000,000		4,655,280
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2026		2,250,000		2,660,400
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2027		1,050,000		1,227,209
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2028		1,350,000		1,558,481

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Washington (continued)
Washington Motor Vehicle Fuel Tax Refunding Bond Series D (Miscellaneous Revenue)		5.00	%		7-1-2031	$	5,830,000	$	6,967,025
Washington TES Properties (Miscellaneous Revenue)		5.50			12-1-2029		1,400,000		1,576,582
									44,771,414
West Virginia: 0.05%
West Virginia School Building Authority (Miscellaneous Revenue)		5.25			7-1-2020		1,100,000		1,215,137
Wisconsin: 0.58%
Wisconsin HEFA Bellin Memorial Hospital (Health Revenue, Ambac Insured)		5.50			2-15-2019		780,000		813,571
Wisconsin HEFA Mercy Alliance Incorporated Project Series A (Health Revenue)		5.00			6-1-2019		1,570,000		1,638,217
Wisconsin HEFA Series A (Health Revenue)		5.00			7-15-2021		3,500,000		4,062,065
Wisconsin HEFA Series A (Health Revenue)		5.00			11-15-2023		3,500,000		4,223,765
Wisconsin HEFA Series M (Health Revenue, National Insured) ±(m)(n)		0.42			6-1-2019		2,000,000		1,935,000
Wisconsin PFA Charter School Voyager Foundation Incorporate Project Series A (Education Revenue)		6.00			10-1-2032		1,475,000		1,591,761
									14,264,379
Total Municipal Obligations (Cost $2,319,680,337)									2,421,354,752
	Yield					Shares
Short-Term Investments: 0.93%
Investment Companies: 0.93%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u))##		0.01					22,837,401		22,837,401
Total Short-Term Investments (Cost $22,837,401)									22,837,401

Total investments in securities (Cost $2,342,517,738) *	99.23	%		2,444,192,153
Other assets and liabilities, net	0.77			18,936,026
Total net assets	100.00	%	$	2,463,128,179

%% The security is issued on a when-issued basis.

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

± 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.

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

(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.

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $2,342,516,231 and unrealized gains (losses) consists of:

Gross unrealized gains	$	106,893,127
Gross unrealized losses		(5,217,205	)
Net unrealized gains	$	101,675,922

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 1

Security name						Shares		Value
Exchange-Traded Funds: 1.01%
iShares iBoxx $ High Yield Corporate Bond ETF							400,000	$	32,232,000
Total Exchange-Traded Funds (Cost $31,497,200)									32,232,000
	Interest rate			Maturity date		Principal
Municipal Obligations: 93.99%
Alabama: 1.02%
Alabama State University General Tuition and Fee Revenue Bonds (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25	%		8-1-2032	$	10,520,000		10,527,890
Birmingham AL CAB Series A1 (GO Revenue) ±		0.00			3-1-2045		3,000,000		2,879,730
Jefferson County AL Limited Obligation School District Series A (Tax Revenue, AGM Insured)		5.25			1-1-2018		775,000		778,875
Jefferson County AL Limited Obligation School District Series A (Tax Revenue)		5.25			1-1-2020		3,000,000		3,015,000
Jefferson County AL Sewer Revenue Warrants CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2025		710,000		483,027
Jefferson County AL Sewer Revenue Warrants CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2026		3,000,000		1,934,610
Jefferson County AL Sewer Revenue Warrants CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2029		4,115,000		2,157,577
Jefferson County AL Warrants Series A (GO Revenue)		4.90			4-1-2021		6,455,000		6,883,999
Jefferson County AL Warrants Series C (GO Revenue)		4.90			4-1-2021		3,725,000		3,972,452
									32,633,160
Arizona: 0.82%
Phoenix AZ IDA Legacy Traditional Schools Project Series A (Education Revenue) 144A		6.50			7-1-2034		2,000,000		2,238,000
Pima County AZ IDA Acclaim Charter School Project (Education Revenue)		5.60			12-1-2016		125,000		125,736
Pima County AZ IDA Global Water Resources LLC Project (Water & Sewer Revenue)		5.45			12-1-2017		100,000		101,681
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		7,510,000		7,424,611
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		6,495,000		6,396,211
Pima County AZ IDA Noah Webster Schools-PIMA Project (Education Revenue)		7.00			12-15-2043		3,225,000		3,678,080
Salt Verde AZ Financial Corporation (Utilities Revenue, Citibank NA Guaranty Agreement)		5.00			12-1-2032		2,605,000		3,045,896
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.25			12-1-2020		1,000,000		1,105,990
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.38			12-1-2021		1,000,000		1,118,650
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.50			12-1-2022		1,000,000		1,112,800
									26,347,655
California: 9.58%
Alameda County CA Certificate of Participation (Miscellaneous Revenue, National Insured) ¤		0.00			6-15-2019		1,400,000		1,298,906
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		2,175,000		1,266,590
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		3,795,000		2,098,256
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2034		5,000,000		2,495,850
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2035		6,700,000		3,154,561
Alhambra CA Unified School District CAB Series B (GO Revenue, AGC Insured) ¤		0.00			8-1-2031		7,500,000		4,360,875

2 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00	%		5-1-2046	$	8,500,000	$	9,650,390
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2037		1,305,000		533,236
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2038		1,900,000		744,819
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2039		2,005,000		750,572
Bay Area CA Toll Authority Toll Bridge Revenue Series A (Transportation Revenue) ±		1.26			4-1-2036		28,000,000		27,713,840
California (Miscellaneous Revenue)		5.00			8-1-2033		15,000,000		17,702,700
California HFFA Unrefunded Bond Providence Health Services Series C (Health Revenue) (h)		6.50			10-1-2038		10,050,000		11,554,284
California Municipal Finance Authority Charter School Revenue Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		2,230,000		2,592,353
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.19			8-1-2027		5,000,000		5,000,000
California Public Works Board Department of General Services Buildings 8 & 9A (Miscellaneous Revenue)		6.25			4-1-2034		4,000,000		4,674,400
California Public Works Board Judicial Council Project Series A (Miscellaneous Revenue)		5.00			3-1-2031		3,260,000		3,805,561
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.00			7-1-2020		640,000		667,488
California Statewide CDA Sutter Health Series A (Health Revenue)		6.00			8-15-2042		4,900,000		5,830,314
Cerritos CA Community College District CAB Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2027		1,000,000		709,500
Cerritos CA Community College District CAB Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2028		1,040,000		704,662
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		1,000,000		575,250
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		1,000,000		551,590
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2033		1,000,000		529,400
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2032		2,515,000		1,224,025
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2033		2,000,000		920,860
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2036		510,000		202,506
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured)��¤		0.00			6-1-2028		1,165,000		760,687
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2029		1,500,000		926,925
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2030		2,000,000		1,170,620
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2031		2,000,000		1,110,980
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2032		1,660,000		884,763
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2033		1,230,000		626,624
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2034		1,615,000		785,811
Gilroy CA Unified School District Prerefunded CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2032		6,470,000		4,264,183
Gilroy CA Unified School District Unrefunded CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2032		3,330,000		1,821,910
Golden State Tobacco Securitization Corporation California Tobacco Settlement Revenue Series A (Tobacco Revenue, AGM Insured) ¤		0.00			6-1-2026		18,150,000		13,551,153

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Golden State Tobacco Securitization Corporation California Tobacco Settlement Revenue Series A (Miscellaneous Revenue)		5.00	%		6-1-2030	$	970,000	$	1,125,501
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		6.13			11-1-2029		15,925,000		20,763,811
M-S-R California Energy Authority Gas Series C (Utilities Revenue)		7.00			11-1-2034		2,755,000		3,951,744
Montebello CA Unified School District CAB Election of 1998 (GO Revenue, National Insured) ¤		0.00			8-1-2024		1,130,000		885,943
Montebello CA Unified School District CAB Election of 1998 (GO Revenue, National Insured) ¤		0.00			8-1-2027		2,775,000		1,846,235
Morongo Band of Mission Indians California Enterprise Casino Series B (Miscellaneous Revenue) 144A		6.50			3-1-2028		2,000,000		2,199,440
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		0.94			7-1-2027		27,660,000		25,847,993
Ontario Montclair CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2028		1,500,000		984,345
Ontario Montclair CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2030		2,000,000		1,209,260
Palomar CA Pomerado Health PFOTER Series 4683 (GO Revenue, National Insured, Bank of America NA LIQ) 144Aø		0.30			8-1-2037		31,250,000		31,250,000
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2027		2,095,000		1,438,301
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2028		4,450,000		2,933,351
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2029		4,520,000		2,840,278
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2030		6,725,000		3,901,778
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2031		2,185,000		1,214,489
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2032		2,000,000		1,077,940
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2033		4,295,000		2,190,880
Richmond CA Joint Powers Financing Authority Civic Center Project Series A (Miscellaneous Revenue, AGC Insured)		5.88			8-1-2037		25,000		28,216
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		5,420,000		6,228,664
San Bernardino CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2031		1,100,000		1,271,600
San Bernardino CA Unified School District Series A (GO Revenue, AGM Insured)		5.00			8-1-2026		1,100,000		1,311,772
San Bernardino CA Unified School District Series A (GO Revenue, AGM Insured)		5.00			8-1-2028		1,250,000		1,468,475
San Buenaventura CA Community Mental Health System (Health Revenue)		6.00			12-1-2019		1,040,000		1,175,741
San Buenaventura CA Community Mental Health System (Health Revenue)		6.25			12-1-2020		2,000,000		2,331,720
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2033		1,000,000		1,180,610
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2034		1,080,000		1,268,006
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2035		1,000,000		1,166,670
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2031		2,000,000		1,166,280
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2032		1,500,000		829,860
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2033		1,000,000		531,000
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2034		2,000,000		1,015,020
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2035		1,500,000		717,195
Sylvan CA Unified School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2037		1,085,000		434,987
Tender Option Bond Trust Receipts for San Jose CA Series B (Airport Revenue, Ambac/AGM Insured, JPMorgan Chase & Company LIQ) 144Aø		0.21			9-1-2030		8,900,000		8,900,000
The Regents of the University of California Limited Project Series I (Education Revenue)		5.00			5-15-2032		23,690,000		28,478,675
West Contra Costa CA Unified School District CAB Series C (GO Revenue, AGM Insured) ¤		0.00			8-1-2029		3,000,000		1,872,570
West Contra Costa CA Unified School District Election of 2005 Series C-1 (GO Revenue, AGC Insured) ¤		0.00			8-1-2029		1,690,000		1,056,284
Wiseburn CA School District CAB Election of 2010 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2034		2,530,000		1,271,806
									306,582,884

4 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Colorado: 2.84%
Colorado E-470 Public Highway Authority CAB Series A (Miscellaneous Revenue, National Insured) ¤		0.00	%		9-1-2027	$	9,500,000	$	6,529,350
Colorado E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00			9-1-2020		9,385,000		8,521,017
Colorado E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00			9-1-2022		4,600,000		3,934,794
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.13			12-1-2033		2,200,000		2,611,444
Colorado ECFA Charter School Banning Lewis Ranch Academy Project (Education Revenue) 144A		6.13			12-15-2035		3,940,000		3,958,873
Colorado ECFA Charter School Community Leadership (Education Revenue)		5.75			7-1-2019		720,000		748,130
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		5.50			10-1-2017		115,000		120,826
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		7.25			10-1-2039		500,000		583,205
Colorado ECFA Community Leadership Academy Incorporated Second Campus Project (Education Revenue)		7.00			8-1-2033		1,330,000		1,558,348
Colorado ECFA Rocky Mountain Classical Academy Project Series A (Education Revenue)		7.50			9-1-2033		5,015,000		5,197,145
Colorado ECFA Rocky Mountain Classical Academy Project Series A (Education Revenue)		8.00			9-1-2043		5,930,000		6,272,754
Colorado ECFA Rocky Mountain Classical Academy Project Series A (Education Revenue)		8.13			9-1-2048		3,795,000		4,030,556
Colorado ECFA Twin Peaks Charter Academy (Miscellaneous Revenue)		6.50			3-15-2043		1,290,000		1,438,969
Colorado Health Facilities Authority Catholic Health Initiatives Series D1 (Health Revenue)		6.25			10-1-2033		4,000,000		4,498,320
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		2,160,000		2,323,274
Colorado PFA Charter School Highline Academy Project (Education Revenue)		6.25			12-15-2020		335,000		356,644
Colorado PFA Charter School Highline Academy Project (Education Revenue)		6.75			12-15-2025		455,000		487,806
Colorado PFA Charter School Highline Academy Project (Education Revenue)		7.38			12-15-2040		4,010,000		4,382,008
Colorado Springs CO Utilities System Sub Lien Improvement Series B (Utilities Revenue, Bayerische Landesbank SPA) ø		0.13			11-1-2036		19,340,000		19,340,000
Eagle County CO Airport Terminal Corporation Airport Terminal Improvement Project Series A (Airport Revenue)		5.15			5-1-2017		470,000		473,769
Eagle County CO Airport Terminal Corporation Airport Terminal Improvement Project Series B (Airport Revenue)		5.25			5-1-2020		895,000		902,223
Public Authority for Colorado Energy Natural Gas Purchase (Utilities Revenue, Merrill Lynch & Company Guaranty Agreement)		6.50			11-15-2038		4,500,000		6,092,775
Regional Transportation District of Colorado Certificate of Participation Series A (Miscellaneous Revenue)		5.00			6-1-2023		5,500,000		6,634,540
									90,996,770
Connecticut: 0.41%
Connecticut HEFA Eastern Connecticut Health Network Series A (Health Revenue, AGC Insured)		6.38			7-1-2016		250,000		251,078
Connecticut HFA Special Needs Housing Series 2 (Health Revenue, Ambac Insured)		5.25			6-15-2022		1,500,000		1,505,880
Connecticut Series A (Miscellaneous Revenue) ±		1.11			4-15-2019		4,050,000		4,080,902
Connecticut Series A (Miscellaneous Revenue) ±		1.26			4-15-2020		5,900,000		5,958,705
Hamden CT BAN (GO Revenue)		5.00			8-15-2026		1,235,000		1,411,321
									13,207,886

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Delaware: 0.31%
Delaware EDA Odyssey Charter School Incorporated Project Series A (Education Revenue) 144A		7.00	%		9-1-2045	$	7,500,000	$	7,534,200
Kent County DE Charter School Incorporated Project (Education Revenue)		7.38			5-1-2037		2,110,000		2,399,977
									9,934,177
District of Columbia: 1.00%
District of Columbia Cesar Chavez Public Charter School (Education Revenue)		6.50			11-15-2021		4,125,000		4,569,469
District of Columbia Population Services International (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.09			11-1-2042		25,150,000		25,150,000
District of Columbia Water & Sewer Authority Public Utilities Series A (Water & Sewer Revenue)		6.00			10-1-2035		2,000,000		2,269,660
									31,989,129
Florida: 3.22%
Championsgate FL Community Development District Capital Improvement Series A (Miscellaneous Revenue)		6.25			5-1-2020		1,300,000		1,293,552
CityPlace Florida Community Development District (Miscellaneous Revenue)		5.00			5-1-2022		1,000,000		1,117,630
CityPlace Florida Community Development District (Miscellaneous Revenue)		5.00			5-1-2026		2,000,000		2,261,300
Collier County FL School Board Refunding Certificate of Participation (Miscellaneous Revenue, AGM Insured)		5.25			2-15-2021		1,000,000		1,178,070
Crossings At Fleming Island Florida Community Development District Refunding Senior Lien Series A-1 (Miscellaneous Revenue)		2.25			5-1-2018		1,260,000		1,265,405
Crossings At Fleming Island Florida Community Development District Refunding Senior Lien Series A-1 (Miscellaneous Revenue)		2.63			5-1-2019		1,295,000		1,300,128
Crossings At Fleming Island Florida Community Development District Refunding Senior Lien Series A-1 (Miscellaneous Revenue)		4.00			5-1-2024		1,025,000		1,038,018
Daytona Beach FL Refunding & Improvement Project (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2031		1,155,000		1,323,595
Daytona Beach FL Refunding & Improvement Project (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2032		1,465,000		1,677,850
Florida Development Finance Corporation Educational Facilities Revenue Renaissance Charter School Project Series A (Education Revenue)		5.50			6-15-2022		1,240,000		1,294,659
Florida Development Finance Corporation Educational Facilities Revenue Renaissance Charter School Project Series A (Education Revenue)		8.50			6-15-2044		13,290,000		15,445,239
Florida Housing Finance Corporation Journet Place Apartments Series 1 (Housing Revenue)		7.60			12-15-2047		810,000		1,012,589
Florida Housing Finance Corporation Villa Capri Phase III (Housing Revenue)		7.60			12-15-2042		2,735,000		3,073,210
Heritage Harbor Florida Community Development District (Miscellaneous Revenue)		7.75			5-1-2023		425,000		424,970
Holmes County FL Hospital Corporation Doctors Memorial Hospital Project (Health Revenue)		6.00			11-1-2038		2,500,000		2,504,375
Indigo FL Community Development District Series C (Miscellaneous Revenue) (s)(i)		1.40			5-1-2030		2,561,001		1,296,174
Lakeland FL Educational Facilities Authority Florida Southern College Project Series A (Education Revenue)		5.00			9-1-2025		530,000		588,295
Lakeland FL Educational Facilities Authority Florida Southern College Project Series A (Education Revenue)		5.00			9-1-2028		1,195,000		1,305,155
Lakeside Plantation FL Community Development District Series A (Miscellaneous Revenue)		6.95			5-1-2031		1,226,000		1,226,907
Marshall Creek Florida Community Development District (Miscellaneous Revenue)		6.63			5-1-2032		2,460,000		2,161,208
Miami-Dade County FL Educational Facilities University of Miami Series A (Education Revenue)		5.75			4-1-2028		1,200,000		1,216,296
Miami-Dade County FL Seaport Revenue Bond Series B (Airport Revenue)		6.00			10-1-2033		500,000		612,705

6 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Midtown Miami FL Community Development District Parking Garage Project Series A (Miscellaneous Revenue)		5.00	%		5-1-2029	$	2,500,000	$	2,667,225
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)		5.00			10-1-2033		1,525,000		1,783,701
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)		5.00			10-1-2034		1,600,000		1,864,672
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)		5.00			10-1-2035		1,680,000		1,950,850
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)		5.00			10-1-2036		1,765,000		2,042,176
Palm Beach County FL PFOTER Series 4615 (Miscellaneous Revenue, Dexia Credit Local LIQ) ø		0.28			8-1-2029		20,245,000		20,245,000
Palm Beach County FL Public Improvement Series 2 (Miscellaneous Revenue)		5.38			11-1-2028		2,000,000		2,243,180
Saint Petersburg FL Health Facilities Authority All Children’s Project Series A (Health Revenue)		6.50			11-15-2039		5,500,000		6,607,150
Seminole County FL IDA Choices in Learning Series A (Education Revenue)		6.20			11-15-2026		1,940,000		2,087,130
Seminole County FL IDA Choices in Learning Series A (Education Revenue)		7.38			11-15-2041		3,525,000		4,005,775
South Miami FL Health Facilities Baptist Health (Health Revenue)		5.00			8-15-2023		2,810,000		2,990,795
St. Johns County FL IDA Refunding Glenmoor Project Series A (Health Revenue)		1.34			1-1-2049		750,000		263,813
St. Johns County FL IDA Refunding Subordinated Glenmoor Project Series B (Health Revenue) (s)		2.50			1-1-2049		277,527		3
Trout Creek Florida Community Development District (Miscellaneous Revenue)		4.88			5-1-2025		2,770,000		2,777,036
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2020		2,020,000		2,168,127
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2021		2,140,000		2,322,414
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2022		2,265,000		2,467,514
									103,103,891
Georgia: 0.52%
Cobb County GA Development Authority Charter Learning Center Foundation Central Project Series A (Education Revenue)		6.38			7-1-2025		1,920,000		1,876,666
Forsyth County GA Hospital Authority Georgia Baptist Health Care System Project (Health Revenue)		6.38			10-1-2028		465,000		601,519
Georgia Municipal Association Certificate of Participation City Court Atlanta Project (Miscellaneous Revenue, Ambac Insured)		5.50			12-1-2016		2,175,000		2,182,678
Georgia Municipal Association Certificate of Participation City Court Atlanta Project (Miscellaneous Revenue, Ambac Insured)		5.50			12-1-2017		2,220,000		2,226,971
Georgia Municipal Association Certificate of Participation City Court Atlanta Project (Miscellaneous Revenue, Ambac Insured)		5.50			12-1-2018		2,500,000		2,507,450
Georgia Municipal Electric Authority Power Series EE (Utilities Revenue, Ambac Insured)		7.25			1-1-2024		400,000		546,384
Georgia Private Colleges & Universities Authority Series A (Education Revenue)		5.25			10-1-2027		2,000,000		2,274,140
Georgia Road & Tollway Authority Toll Revenue CAB I-75 South Expressway Lanes Project Series A (Transportation Revenue) 144A¤		0.00			6-1-2034		3,750,000		1,179,863
Georgia Road & Tollway Authority Toll Revenue Convertible CAB I-75 South Expressway Lanes Project Series B (Transportation Revenue) 144A±		0.00	%		6-1-2049		5,600,000		3,136,000
									16,531,671
Guam: 0.13%
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.38			12-1-2024		3,195,000		3,541,785
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.00			7-1-2019		450,000		497,183

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Guam (continued)
Guam Housing Corporation Guaranteed Mortgage-Backed Securities Series A (Housing Revenue, FHLMC Insured)		5.75	%		9-1-2031	$	60,000	$	64,227
									4,103,195
Hawaii: 0.10%
Hawaii Series DZ (GO Revenue)		5.00			12-1-2031		2,700,000		3,169,989
Idaho: 0.57%
Boise-Kuna ID Irrigation District Arrowrock Hydroelectric Project (Utilities Revenue)		7.38			6-1-2040		6,300,000		7,262,262
Idaho Health Facilities Authority Trinity Health Credit Group Series B (Health Revenue)		6.25			12-1-2033		3,000,000		3,449,700
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		5.75			12-1-2032		500,000		538,930
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		6.50			12-1-2038		1,405,000		1,481,334
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		5.85			5-1-2033		730,000		757,397
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		6.25			5-1-2043		1,365,000		1,434,369
Idaho Housing & Finance Association Liberty Charter School Series A (Education Revenue)		6.00			6-1-2038		500,000		518,130
Idaho Housing & Finance Association Nonprofit Facilities Revenue CAB North Star Charter School Series A (Education Revenue)		6.75			7-1-2048		1,322,876		1,264,418
Idaho Housing & Finance Association Nonprofit Facilities Revenue CAB North Star Charter School Series B (Education Revenue) 144A¤		0.00			7-1-2049		1,276,564		103,504
Idaho Housing & Finance Association Series A (Education Revenue)		6.13			7-1-2038		1,500,000		1,562,430
									18,372,474
Illinois: 19.41%
Chicago IL (Tax Revenue)		5.00			1-1-2028		4,000,000		4,411,080
Chicago IL (Tax Revenue)		5.00			1-1-2029		1,500,000		1,644,510
Chicago IL Board of Education CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2025		9,935,000		6,460,134
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		9,455,000		6,483,294
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2029		7,885,000		3,812,713
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2020		1,000,000		815,100
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2031		2,705,000		1,165,557
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2023		1,430,000		980,551
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2030		4,550,000		2,073,071
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2026		4,000,000		2,289,960
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2027		43,365,000		23,448,323
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2028		24,270,000		12,415,076
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2029		9,000,000		4,351,860

8 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, AGM/FGIC Insured) ¤		0.00	%		12-1-2029	$	14,205,000	$	7,137,018
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2031		24,500,000		10,556,805
Chicago IL Board of Education Series A (GO Revenue, National Insured) ¤		0.00			12-1-2027		4,040,000		2,184,509
Chicago IL Board of Education Series B (GO Revenue, Ambac Insured)		5.00			12-1-2023		1,000,000		1,005,820
Chicago IL Board of Education Series C (GO Revenue, AGM Insured)		5.25			12-1-2023		1,500,000		1,569,600
Chicago IL Board of Education Series D (GO Revenue, AGM Insured)		5.00			12-1-2025		1,430,000		1,463,248
Chicago IL CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2029		25,755,000		13,264,083
Chicago IL CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2030		5,745,000		2,796,206
Chicago IL CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2034		11,600,000		4,476,788
Chicago IL CAB Project & Refunding Series A (GO Revenue, National Insured)		5.56			1-1-2021		3,520,000		3,566,464
Chicago IL CAB Project & Refunding Series C (GO Revenue, AGM Insured) ¤		0.00			1-1-2026		7,360,000		4,557,827
Chicago IL CAB Series A (GO Revenue, National Insured) ¤		0.00			1-1-2027		3,955,000		2,294,849
Chicago IL CAB Series A (GO Revenue, National Insured) ¤		0.00			1-1-2028		5,515,000		3,020,676
Chicago IL CAB Series A (GO Revenue, National Insured) ¤		0.00			1-1-2029		4,125,000		2,124,416
Chicago IL CAB Series C (GO Revenue) ¤		0.00			1-1-2031		4,945,000		2,178,569
Chicago IL Motor Fuel Tax Revenue Refunding (Tax Revenue)		5.00			1-1-2026		2,000,000		2,103,600
Chicago IL Motor Fuel Tax Revenue Refunding (Tax Revenue)		5.00			1-1-2028		1,000,000		1,038,050
Chicago IL Neighborhoods Alive 21 Program Series B (GO Revenue)		5.50			1-1-2034		1,500,000		1,586,115
Chicago IL O’Hare International Airport (Airport Revenue, AGM Insured)		5.50			1-1-2043		4,530,000		5,184,902
Chicago IL O’Hare International Airport (Airport Revenue)		5.75			1-1-2038		7,500,000		8,559,675
Chicago IL O’Hare International Airport AMT Passenger Facility Charge Series B (Airport Revenue)		5.00			1-1-2026		5,000,000		5,650,800
Chicago IL O’Hare International Airport AMT Senior Lien Series A (Airport Revenue)		5.00			1-1-2025		2,000,000		2,265,080
Chicago IL O’Hare International Airport AMT Senior Lien Series C (Airport Revenue)		5.50			1-1-2044		4,000,000		4,479,720
Chicago IL O’Hare International Airport Customer Facility Charge Senior Lien Series D (Airport Revenue)		5.75			1-1-2043		4,500,000		5,150,835
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue)		5.75			1-1-2039		2,760,000		3,212,999
Chicago IL Public Buillding Commission Transit Authority (Transportation Revenue, Ambac Insured)		5.25			3-1-2025		2,960,000		3,351,608
Chicago IL Public Buillding Commission Transit Authority (Transportation Revenue, Ambac Insured)		5.25			3-1-2027		3,400,000		3,861,176
Chicago IL Series A (GO Revenue, National Insured)		5.00			1-1-2029		4,000,000		4,061,600
Chicago IL Series A (Tax Revenue)		5.25			1-1-2038		6,000,000		6,393,300
Chicago IL Series A (GO Revenue)		5.50			1-1-2034		7,175,000		7,586,917
Chicago IL Series A (GO Revenue)		5.50			1-1-2035		920,000		969,367
Chicago IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2028		9,550,000		10,051,184
Chicago IL Series A (GO Revenue)		5.50			1-1-2033		12,730,000		13,508,821
Chicago IL Series B (GO Revenue)		5.50			1-1-2032		1,285,000		1,368,474
Chicago IL Transit Authority Sales Tax Receipts Revenue Bonds (Tax Revenue, AGM Insured)		5.00			12-1-2044		4,000,000		4,414,120
Chicago IL Waste Water Transmission Second Lien Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		2,500,000		2,542,200
Chicago IL Wastewater Second Lien Transmission (Water & Sewer Revenue)		5.00			1-1-2027		4,000,000		4,390,240
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2029		4,600,000		5,061,886
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2030		5,000,000		5,475,400
Cook County IL Series C (GO Revenue, AGM Insured)		5.00			11-15-2024		4,240,000		4,731,586
Cook County IL Series C (GO Revenue)		5.00			11-15-2025		2,140,000		2,356,803
Cook County IL Series C (GO Revenue)		5.00			11-15-2027		325,000		353,685
Cook County IL Series G (GO Revenue)		5.00			11-15-2028		27,000,000		28,986,390

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
DeKalb-Kane-Lasalle Counties IL Kishwaukee Community College District #523 Series B (GO Revenue) ¤		0.00	%		2-1-2019	$	725,000	$	685,256
Deutsche Bank SPEAR/LIFER Trust Series DBE 1032 (Tax Revenue, Deutsche Bank LIQ) 144Aø		0.25			12-1-2036		11,235,000		11,235,000
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		4,450,000		4,942,749
Illinois (GO Revenue)		5.00			1-1-2023		1,245,000		1,252,159
Illinois (GO Revenue, Ambac Insured)		5.00			4-1-2024		1,830,000		1,836,844
Illinois (Miscellaneous Revenue)		5.00			8-1-2024		2,610,000		2,834,486
Illinois (Miscellaneous Revenue)		5.00			8-1-2025		5,685,000		6,134,399
Illinois (GO Revenue, AGM Insured)		5.00			4-1-2026		3,000,000		3,360,450
Illinois (GO Revenue, Ambac Insured)		5.00			4-1-2027		7,585,000		7,613,368
Illinois (GO Revenue, Ambac Insured)		5.00			4-1-2028		6,705,000		6,730,077
Illinois (Miscellaneous Revenue)		5.25			7-1-2030		2,500,000		2,707,525
Illinois (Miscellaneous Revenue)		5.50			7-1-2025		6,000,000		6,702,120
Illinois (GO Revenue)		5.50			1-1-2030		2,900,000		3,379,863
Illinois (Miscellaneous Revenue)		5.50			7-1-2038		4,000,000		4,286,400
Illinois Finance Authority Advocate Healthcare Network Series D (Health Revenue)		6.50			11-1-2038		5,415,000		6,237,701
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2018		1,325,000		1,421,712
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2020		1,465,000		1,620,319
Illinois Finance Authority Charter School Refunding Bond Series A (Education Revenue)		6.88			10-1-2031		1,865,000		2,033,894
Illinois Finance Authority Charter Schools Series A (Education Revenue)		6.25			9-1-2039		7,955,000		9,069,893
Illinois Finance Authority Charter Schools Series A (Education Revenue)		7.13			10-1-2041		3,800,000		4,173,160
Illinois Finance Authority Medical District Commission Project A (Health Revenue, AGC Insured)		4.13			9-1-2018		515,000		518,306
Illinois Finance Authority Northwestern Memorial Hospital Project Series A (Health Revenue)		6.00			8-15-2039		5,000,000		5,807,550
Illinois Finance Authority Student Housing Illinois State University (Education Revenue)		6.75			4-1-2031		8,000,000		9,133,520
Illinois Finance Authority University of Chicago Series B (Education Revenue)		6.25			7-1-2038		3,115,000		3,518,611
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2030		7,000,000		8,189,090
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2031		8,000,000		9,309,360
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2032		18,000,000		20,864,880
Illinois Series 1 (GO Revenue, National Insured)		6.00			11-1-2026		3,200,000		3,767,520
Illinois Series A (GO Revenue)		5.00			4-1-2021		6,675,000		7,295,975
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		3,000,000		3,384,570
Illinois Series June 2013 (Miscellaneous Revenue)		5.00			7-1-2022		6,750,000		7,437,285
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.00			6-15-2028		4,030,000		4,542,495
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.25			6-15-2032		3,500,000		3,944,885
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		17,510,000		12,560,974
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2021		7,595,000		6,358,610
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2025		1,040,000		709,394
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2025		3,745,000		4,278,026
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2026		4,775,000		5,436,576
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2027		8,355,000		9,473,400

10 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Toll Highway Authority Series B (Transportation Revenue)		5.00	%		1-1-2039	$	1,500,000	$	1,689,240
Kane & DeKalb Counties IL Community Unit School District #302 School Building (GO Revenue, AGM Insured)		5.50			2-1-2025		1,265,000		1,270,465
Kane & DeKalb Counties IL Community Unit School District #302 School Building (GO Revenue, AGM Insured)		5.50			2-1-2026		3,610,000		3,625,595
Kane Cook & DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		8,225,000		7,205,182
Kane Cook & DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		15,025,000		12,139,299
Kendall Kane & Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2025		1,760,000		1,313,787
Kendall Kane & Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2026		5,050,000		3,560,907
Kendall Kane & Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2027		12,050,000		8,067,114
Lake County IL School District #24 Millburn CAB (GO Revenue, National Insured) ¤		0.00			1-1-2024		2,000,000		1,522,400
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2018		3,800,000		3,648,380
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		675,000		629,485
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2020		1,250,000		1,127,275
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2021		1,175,000		1,028,760
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2024		5,385,000		4,115,109
Lake County IL Township High School District #126 Zion-Benton CAB (GO Revenue, National Insured) ¤		0.00			2-1-2020		910,000		825,507
McHenry & Kane Counties IL Community Consolidated School District #158 (GO Revenue)		5.63			1-15-2032		2,500,000		2,926,175
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, AGM/FGIC Insured) ¤		0.00			1-1-2023		1,905,000		1,555,128
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2019		765,000		732,985
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2021		6,250,000		5,449,500
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2026		9,015,000		5,893,646
Metropolitan Pier & Exposition Authority Illinois Series 2015-XM0036 (Airport Revenue, Morgan Stanley Bank LIQ) 144Aø		0.60			6-15-2050		12,640,000		12,640,000
Regional Transportation Authority Illinois (Tax Revenue, AGM Insured)		5.75			6-1-2023		400,000		485,628
Sangamon County IL School District #186 Certificate of Participation Hay-Edwards Elementary School Project Series A (Miscellaneous Revenue, ACA Insured)		5.88			8-15-2018		1,815,000		1,740,549
Southwestern Illinois Development Authority Local Government Program Collinsville Limited (Tax Revenue)		5.00			3-1-2025		2,525,000		2,122,035
Springfield IL Senior Lien Notes (Utilities Revenue, National Insured)		5.00			3-1-2024		1,425,000		1,496,022
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2023		350,000		509,324
Tender Option Bond Trust Receipts for Illinois Sports Facilities Authority Series 2015-XF1009 (Tax Revenue, AGM Insured, Deutsche Bank LIQ) 144Aø		0.25			6-15-2032		17,390,000		17,390,000
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, National Insured) ¤		0.00			4-1-2026		2,355,000		1,676,195
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, National Insured) ¤		0.00			4-1-2027		2,435,000		1,660,451
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue)		5.75			4-1-2038		14,000,000		16,053,240
Will County IL Community Unified School District #201 U Crete-Monee CAB (GO Revenue, National Insured) ¤		0.00			11-1-2023		1,500,000		1,175,460
									621,307,885

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Indiana: 1.10%
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25	%		9-1-2034	$	5,000,000	$	5,609,300
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2040		5,000,000		5,480,550
Indiana Finance Authority Environmental Duke Energy Series B (Industrial Development Revenue)		6.00			8-1-2039		2,000,000		2,293,400
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series A (Industrial Development Revenue)		5.00			7-1-2035		9,970,000		10,846,164
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series A (Industrial Development Revenue)		5.00			7-1-2040		2,470,000		2,652,681
Indiana HEFA Clarian Health Series B (Health Revenue)		5.00			2-15-2022		3,050,000		3,067,507
Indianapolis IN Local Public Improvement Bond Bank Airport Authority Project Series F (Miscellaneous Revenue, Ambac Insured)		5.00			1-1-2023		2,750,000		2,806,045
Valparaiso IN Pratt Paper LLC Project (Industrial Development Revenue)		5.88			1-1-2024		2,235,000		2,573,156
									35,328,803
Iowa: 0.08%
Coralville IA Certificate of Participation Series D (Miscellaneous Revenue)		5.25			6-1-2026		2,695,000		2,695,862
Kansas: 0.98%
Sedgwick & Shawnee Counties KS Mortgage-Backed Securities Series A2 (Housing Revenue, GNMA Insured)		6.70			6-1-2029		85,000		85,882
Wyandotte County & Kansas City KS Sales Tax Special Obligation Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00			9-1-2034		97,000,000		29,836,230
Wyandotte County & Kansas City KS Unified Government Special Obligation Second Lien CAB Series B (Tax Revenue) ¤		0.00			6-1-2021		2,100,000		1,568,322
									31,490,434
Kentucky: 1.51%
Kentucky EDFA Balance Norton Series B (Health Revenue, National Insured) ¤		0.00			10-1-2028		4,845,000		3,069,356
Kentucky EDFA Catholic Health Initiatives Series B (Health Revenue) ±		1.41			2-1-2046		22,715,000		22,333,842
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, National Insured) ¤		0.00			10-1-2024		9,260,000		7,035,192
Kentucky EDFA Series 2980 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.33			8-15-2024		10,500,000		10,500,000
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series B (Transportation Revenue) ¤		0.00			7-1-2030		2,000,000		985,840
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series B (Transportation Revenue) ¤		0.00			7-1-2031		2,780,000		1,278,522
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series B (Transportation Revenue) ¤		0.00			7-1-2032		2,500,000		1,070,375
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series C (Transportation Revenue) ±		0.00			7-1-2033		1,000,000		772,830
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series C (Transportation Revenue) ±		0.00			7-1-2034		1,505,000		1,158,639
									48,204,596
Louisiana: 1.38%
Louisiana Local Government Environmental Facilities (Miscellaneous Revenue, Ambac Insured)		5.25			12-1-2018		2,085,000		2,149,698
Louisiana Tobacco Settlement Financing Corporation Revenue Bonds Series A (Tobacco Revenue)		5.00			5-15-2025		12,500,000		12,626,000

12 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Louisiana (continued)
New Orleans LA (GO Revenue, FGIC Insured)		5.50	%		12-1-2021	$	2,050,000	$	2,303,852
New Orleans LA Aviation Board AMT Series B (Airport Revenue)		5.00			1-1-2031		1,000,000		1,140,640
New Orleans LA Aviation Board AMT Series B (Airport Revenue, AGM Insured)		5.00			1-1-2033		3,000,000		3,399,330
New Orleans LA Aviation Board AMT Series B (Airport Revenue)		5.00			1-1-2034		4,500,000		5,054,220
New Orleans LA Aviation Board Gulf Opportunity Zone Consolidated Rental Car Series A (Airport Revenue)		6.50			1-1-2040		6,500,000		7,331,350
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø		0.33			11-1-2040		10,000,000		10,000,000
									44,005,090
Maine: 0.12%
Maine Educational Loan Authority Student Loan Series A-3 Class A (Education Revenue, AGC Insured)		5.88			12-1-2039		3,555,000		3,897,773
Maryland: 0.28%
Howard County MD Certificate of Participation Agricultural Land Preservation #90-23 Series A (Miscellaneous Revenue)		8.00			8-15-2020		296,000		367,824
Prince Georges County MD Charter School Chesapeake Lighthouse Obligated Group Series A (Education Revenue) 144A		6.90			8-1-2041		8,480,000		8,587,526
									8,955,350
Massachusetts: 0.68%
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		8.00			4-15-2031		2,150,000		2,701,540
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		8.00			4-15-2039		3,900,000		4,900,467
Massachusetts Educational Finance Authority Series B (Education Revenue)		5.38			1-1-2020		1,925,000		2,071,319
Massachusetts Educational Finance Authority Series E (Education Revenue, Ambac Insured)		5.30			1-1-2016		40,000		40,000
Massachusetts Educational Finance Authority Series I (Education Revenue)		6.00			1-1-2028		1,935,000		2,045,082
Massachusetts Educational Finance Authority Series J (Education Revenue)		5.00			7-1-2020		6,000,000		6,610,560
Massachusetts Educational Finance Authority Series J (Education Revenue)		5.00			7-1-2021		3,000,000		3,342,420
									21,711,388
Michigan: 5.05%
Detroit MI Distribution of State Aid (GO Revenue)		5.00			11-1-2030		2,330,000		2,494,055
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2018		3,050,000		2,661,186
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2019		3,050,000		2,515,610
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2020		2,070,000		1,608,845
Detroit MI Water Supply System Second Lien Series B (Water & Sewer Revenue, AGM Insured)		7.00			7-1-2036		9,675,000		11,072,941
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2026		1,075,000		1,242,356
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2028		1,450,000		1,653,232
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2029		1,350,000		1,529,996
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2030		1,775,000		2,002,502
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2031		1,425,000		1,604,308
Michigan Finance Authority Limited Obligation Holly Academy (Education Revenue)		6.50			10-1-2020		155,000		165,247
Michigan Finance Authority Limited Obligation Holly Academy (Education Revenue)		8.00			10-1-2040		1,350,000		1,542,834

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Limited Obligation Series A (Miscellaneous Revenue)		7.50	%		12-1-2020	$	310,000	$	329,660
Michigan Finance Authority Limited Obligation Series A (Miscellaneous Revenue)		8.00			12-1-2030		1,135,000		1,245,481
Michigan Finance Authority Limited Obligation Series A (Miscellaneous Revenue)		8.25			12-1-2039		2,220,000		2,455,609
Michigan Finance Authority Public School Academy University Learning (Education Revenue)		6.25			11-1-2020		440,000		468,600
Michigan Finance Authority Refunding Bond Local Government Loan Program City of Detroit Financial Recovery Series F (Tax Revenue)		4.50			10-1-2029		3,000,000		3,170,940
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D4 (Water & Sewer Revenue)		5.00			7-1-2031		6,500,000		7,385,430
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2036		3,250,000		3,618,388
Michigan Finance Authority Refunding Notes Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		12,625,000		13,659,493
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2025		2,000,000		2,339,060
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2026		1,945,000		2,257,153
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2027		2,260,000		2,608,831
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2028		3,480,000		4,003,044
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2032		5,750,000		6,487,553
Michigan Finance Authority Revenue Local Government Loan Program Series D (Water & Sewer Revenue, National Insured)		5.00			7-1-2027		1,000,000		1,154,350
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2031		1,340,000		1,537,074
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2032		2,000,000		2,289,180
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2033		2,975,000		3,392,898
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2034		3,670,000		4,173,524
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2039		7,955,000		8,891,781
Michigan Municipal Bond Authority Local Government Loan Program CAB Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2016		175,000		174,186
Michigan Municipal Bond Authority Revenue CAB Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2017		365,000		354,072
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2021		150,000		150,779
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2017		550,000		569,157
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		4.25			12-1-2016		2,770,000		2,809,722
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2017		2,475,000		2,544,572
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.25			12-1-2023		1,185,000		1,204,671
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		3.63			5-1-2016		1,000,000		1,005,070
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		3.75			5-1-2017		450,000		457,142
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.00			5-1-2019		100,000		101,181
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.75			5-1-2027		4,610,000		4,659,004

14 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00	%		5-1-2019	$	75,000	$	68,594
Michigan Municipal Bond Authority Revenue Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2020		205,000		181,962
Michigan Public Educational Facilities Authority Bradford Academy Project (Education Revenue)		8.75			9-1-2039		3,500,000		2,100,070
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue) 144A		6.50			9-1-2037		3,745,000		2,247,075
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue)		8.50			9-1-2029		1,500,000		900,030
Michigan Public Educational Facilities Authority Limited Obligation Crescent Academy (Education Revenue)		7.00			10-1-2036		1,195,000		1,234,805
Michigan Public Educational Facilities Authority Limited Obligation Nataki Talibah (Miscellaneous Revenue) (i)		6.25			10-1-2023		800,000		399,936
Michigan Public Educational Facilities Authority Madison Academy Project (Education Revenue)		8.38			12-1-2030		2,085,000		2,321,064
Michigan Public Educational Facilities Authority Madison Academy Project (Education Revenue)		8.63			12-1-2039		4,170,000		4,678,698
Michigan Strategic Fund Limited Obligation Detroit Edison Company Exempt Facilities Project Series KT (Utilities Revenue)		5.63			7-1-2020		1,200,000		1,397,568
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		15,500,000		15,834,800
Oakland County MI Economic Development Corporation The Academy of The Sacred Heart Project Series A (Education Revenue)		6.50			12-15-2036		4,505,000		4,512,298
Star International Academy Michigan (Miscellaneous Revenue)		3.15			3-1-2016		200,000		200,254
Star International Academy Michigan (Miscellaneous Revenue)		3.40			3-1-2017		100,000		100,980
Wayne Charter County MI Airport Authority Junior Lien (Airport Revenue, National Insured)		5.00			12-1-2016		1,115,000		1,156,779
Wayne County MI Building Improvement Series A (GO Revenue)		6.75			11-1-2039		8,910,000		8,718,970
									161,644,600
Minnesota: 0.02%
Baytown Township MN St. Croix Preparatory Academy Series A (Education Revenue)		7.00			8-1-2038		750,000		774,900
Mississippi: 0.90%
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project Series A (Water & Sewer Revenue, AGM Insured)		5.00			9-1-2030		8,155,000		9,306,323
Perry County MS PCR Leaf River Forest Product Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.28			2-1-2022		19,500,000		19,500,000
									28,806,323
Missouri: 0.96%
Blue Springs MO Special Obligation Tax Refunding & Improvement Adams Farm Project Series A (Tax Revenue)		4.00			6-1-2026		11,710,000		11,837,522
Manchester MO Highway 141 Manchester Road Project (Tax Revenue)		6.00			11-1-2025		1,700,000		1,791,375
Sikeston MO The Electric System of the Board of Municipal Utilities (Utilities Revenue, National Insured)		6.00			6-1-2016		1,500,000		1,532,400
St. Louis MO IDA Convention Center Hotel (Miscellaneous Revenue, Ambac Insured) ¤		0.00			7-15-2019		2,475,000		2,298,879
St. Louis MO Lambert St. Louis International Airport Series A-1 (Airport Revenue)		6.25			7-1-2029		2,000,000		2,269,620

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Missouri (continued)
St. Louis MO PFOTER Series 004 (Airport Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144Aø		0.19	%		7-1-2026	$	11,055,000	$	11,055,000
									30,784,796
Nebraska: 0.04%
Nebraska Central Plains Energy Project #3 (Utilities Revenue)		5.00			9-1-2027		1,020,000		1,143,053
Nevada: 0.46%
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2022		505,000		543,971
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2023		400,000		432,368
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2024		275,000		298,903
Washoe County NV Series 2011-001 (GO Revenue, Dexia Credit Local LIQ) 144Aø		0.36			12-9-2030		13,555,000		13,555,000
									14,830,242
New Hampshire: 0.06%
Manchester NH Housing & RDA CAB Series B (Miscellaneous Revenue, ACA Insured) ¤		0.00			1-1-2021		2,375,000		1,787,948
Manchester NH Housing & RDA CAB Series B (Miscellaneous Revenue, ACA Insured) ¤		0.00			1-1-2025		250,000		145,318
									1,933,266
New Jersey: 5.08%
Bayonne NJ School Refunding Bonds (GO Revenue, AGM Insured)		5.00			7-15-2023		2,505,000		2,959,332
New Jersey EDA Natural Gas Company Project Series C (Utilities Revenue, National Insured) ±		4.90			10-1-2040		5,680,000		5,701,754
New Jersey EDA Rowan University Student Housing Project Series A (Housing Revenue)		5.00			1-1-2024		1,150,000		1,302,019
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.56			9-1-2027		10,675,000		9,452,606
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.61			3-1-2028		40,085,000		35,296,045
New Jersey TTFA (Transportation Revenue)		6.00			12-15-2038		10,425,000		11,492,624
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2028		12,400,000		6,758,248
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2029		7,500,000		3,884,700
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2030		4,375,000		2,136,619
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		4,500,000		2,059,245
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2026		1,300,000		783,354
New Jersey TTFA Floaters Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144Aø		0.19			12-15-2022		12,350,000		12,350,000
New Jersey TTFA Series A (Miscellaneous Revenue, National Insured)		5.75			6-15-2023		2,000,000		2,390,860
New Jersey TTFA Series A (Miscellaneous Revenue, National Insured)		5.75			6-15-2025		10,000,000		12,143,300
New Jersey TTFA Series AA (Transportation Revenue)		5.25			6-15-2033		10,000,000		10,832,300
New Jersey TTFA Series B (Transportation Revenue)		5.25			6-15-2036		3,435,000		3,645,256
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		8,000,000		8,758,960
Newark NJ Housing Authority Port Newark Marine Terminal Rental (Miscellaneous Revenue, National Insured)		5.00			1-1-2032		7,620,000		8,929,268
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2025		5,000,000		5,516,850
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2026		2,205,000		2,413,505
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2027		6,035,000		6,558,416

16 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.25	%		7-15-2024	$	1,325,000	$	1,482,503
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2025		385,000		424,797
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2026		395,000		432,351
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2027		405,000		440,126
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.25			7-15-2024		375,000		419,576
Rutgers NJ State University Series L (Education Revenue)		5.00			5-1-2033		3,560,000		4,103,861
									162,668,475
New Mexico: 0.34%
New Mexico Mortgage Finance Authority SFMR Class I (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.35			3-1-2030		775,000		822,763
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		0.91			11-1-2039		10,000,000		9,918,000
									10,740,763
New York: 11.00%
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		3,500,000		3,937,150
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		8.25			2-1-2041		9,890,000		11,417,115
Metropolitan Transportation Authority New York Series 2008-C (Transportation Revenue)		6.50			11-15-2028		8,000,000		9,220,480
Metropolitan Transportation Authority New York Services Contract Series 7 (Miscellaneous Revenue)		5.63			7-1-2016		790,000		804,497
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		0.95			5-1-2018		2,245,000		2,245,629
New York Dormitory Authority Series B (Tax Revenue)		5.75			3-15-2036		10,000,000		11,446,800
New York Energy R&D Authority Brooklyn Union Gas Company Series B (Utilities Revenue) (x)		13.17			7-1-2026		4,300,000		4,344,290
New York Energy R&D Authority Linked SAVRS & Residual Interest Bonds Brooklyn (Utilities Revenue)		6.95			7-1-2026		2,600,000		2,613,390
New York NY Housing Development Corporation Mortgage Refunding Bond 8 Spruce Street Class F (Housing Revenue)		4.50			2-15-2048		3,500,000		3,623,655
New York NY Municipal Water Finance Authority 2nd General Resolution Series AA (Water & Sewer Revenue)		5.00			6-15-2044		17,400,000		19,761,180
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.00			6-15-2044		30,265,000		34,536,905
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.25			6-15-2044		9,800,000		11,444,832
New York NY Municipal Water Finance Authority 2nd General Resolution Series DD (Water & Sewer Revenue)		6.00			6-15-2040		11,625,000		12,966,525
New York NY Municipal Water Finance Authority Series 2009-A (Water & Sewer Revenue)		5.75			6-15-2040		5,000,000		5,559,750
New York NY Municipal Water Finance Authority Series AA3 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.24			6-15-2032		32,440,000		32,440,000
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.00			6-15-2038		36,650,000		38,725,123
New York NY Municipal Water Finance Authority Water & Sewer System Series DD (Water & Sewer Revenue)		5.00			6-15-2026		3,255,000		3,835,855
New York NY Series A-6 (GO Revenue, AGM Insured, Dexia Credit Local SPA) ø		0.24			11-1-2026		10,500,000		10,500,000
New York NY Series F-1 (GO Revenue)		5.00			3-1-2032		3,000,000		3,538,800

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York NY Transitional Finance Authority Building Aid Fiscal Year 2009 Series S-4 (Miscellaneous Revenue)		5.75	%		1-15-2039	$	2,500,000	$	2,837,975
New York NY Transitional Finance Authority Future Tax Secured Revenue Series I (Tax Revenue)		5.00			5-1-2033		5,395,000		6,320,998
New York NY Transitional Finance Authority Future Tax Secured Subordinate Bonds Series A (Tax Revenue)		5.00			8-1-2031		17,075,000		20,397,454
New York NY Transitional Finance Authority NYC Recovery Series 3 (Tax Revenue, Dexia Credit Local SPA) ø		0.30			11-1-2022		10,000,000		10,000,000
New York NY Transitional Finance Authority Sub Series A-3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24			8-1-2022		20,500,000		20,500,000
New York NY Transitional Finance Authority Sub Series C3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24			8-1-2031		24,200,000		24,200,000
New York NY Sub Series H-5 (GO Revenue, Dexia Credit Local LOC) ø		0.24			3-1-2034		15,000,000		15,000,000
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		20,960,000		20,959,790
Niagara Falls NY Public Improvement Project (GO Revenue, National Insured)		7.50			3-1-2016		685,000		692,467
Niagara Falls NY Public Improvement Project (GO Revenue, National Insured)		7.50			3-1-2016		65,000		65,785
Suffolk NY Tobacco Securitization Corporation Series B (Tobacco Revenue)		4.50			6-1-2026		520,000		571,667
Suffolk NY Tobacco Securitization Corporation Series B (Tobacco Revenue)		5.00			6-1-2025		500,000		568,860
Westchester County NY Local Development Corporation Pace University Series A (Education Revenue)		5.00			5-1-2034		1,750,000		1,903,930
Westchester County NY Local Development Pace University Series B (Education Revenue) ø		0.95			5-1-2044		5,000,000		5,000,000
									351,980,902
North Carolina: 0.60%
North Carolina Eastern Municipal Power Agency Series A (Utilities Revenue)		5.50			1-1-2026		1,250,000		1,415,838
North Carolina Eastern Municipal Power Agency Series C (Utilities Revenue)		6.75			1-1-2024		2,000,000		2,339,040
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.00			12-1-2029		5,000,000		5,715,000
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.25			12-1-2033		8,500,000		9,776,360
									19,246,238
Ohio: 2.44%
Akron OH Sewer System (Water & Sewer Revenue, Ambac Insured)		5.00			12-1-2016		1,500,000		1,554,750
Allen County OH Catholic Healthcare Series B (Health Revenue)		5.25			9-1-2027		3,825,000		4,403,149
Cleveland OH Airport System Revenue Series A (Airport Revenue)		5.00			1-1-2025		4,015,000		4,568,628
Cleveland OH Airport System Revenue Series A (Airport Revenue, AGM Insured)		5.00			1-1-2031		3,600,000		4,040,964
Kings OH Local School District (GO Revenue, National/FGIC Insured)		7.50			12-1-2016		235,000		250,019
Montgomery County OH Hospital Kettering Medical Center (Health Revenue, National Insured)		6.25			4-1-2020		2,500,000		2,745,275
Ohio Enterprise Bond Toledo Series 2A (Industrial Development Revenue)		5.50			12-1-2019		1,475,000		1,590,419
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2026		1,500,000		1,758,570
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2028		1,600,000		1,852,784
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2030		2,250,000		2,571,593
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2035		12,000,000		13,495,800

18 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Ohio (continued)
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00	%		12-31-2039	$	2,500,000	$	2,785,900
Ohio Turnpike Commission CAB Series A-4 (Transportation Revenue) ±		0.00			2-15-2034		8,500,000		7,592,370
Ohio Water Development Authority Pollution Control AMT Series C (Industrial Development Revenue) ±		3.95			11-1-2032		8,000,000		8,264,640
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		18,000,000		18,557,460
RiverSouth Authority Ohio Lazarus Building Redevelopment Series A (Miscellaneous Revenue)		5.75			12-1-2027		1,900,000		2,018,826
									78,051,147
Oklahoma: 0.17%
McGee Creek Authority Oklahoma Water Revenue (Water & Sewer Revenue, State Street Bank & Trust Company LOC, National Insured)		6.00			1-1-2023		3,795,000		4,179,965
Tulsa OK Airports Improvement Trust AMT Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2035		1,055,000		1,163,011
									5,342,976
Oregon: 0.17%
Deschutes County OR Hospital Facilities Authority Cascade Healthcare Community Incorporated Project (Health Revenue)		8.25			1-1-2038		4,500,000		5,449,905
Pennsylvania: 6.11%
Allegheny County PA Hospital Development Authority University of Pittsburgh Medical Center Series A (Health Revenue)		5.63			8-15-2039		5,130,000		5,734,571
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.51			11-1-2039		20,000,000		20,161,000
Bristol Township PA School District Series 27W Residual Interest Bonds Trust (GO Revenue, Barclays Bank plc LIQ) 144Aø		0.40			6-1-2031		12,830,000		12,830,000
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		6.25			12-15-2027		2,000,000		2,123,320
Delaware County PA IDA Resource Recovery Facility Series A (Resource Recovery Revenue)		6.20			7-1-2019		1,115,000		1,118,992
Delaware Valley PA Regional Finance Authority Local Government Public Improvements Project (Miscellaneous Revenue)		5.75			7-1-2032		13,610,000		17,109,948
Delaware Valley PA Regional Finance Authority Local Government Series C (Miscellaneous Revenue, Ambac Insured)		7.75			7-1-2027		4,160,000		5,981,747
Delaware Valley PA Regional Finance Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		16,420,000		19,763,605
Luzerne County PA Series E (GO Revenue, AGM Insured)		8.00			11-1-2027		135,000		156,581
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue) %%		5.00			4-1-2024		1,540,000		1,781,241
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue) %%		5.00			4-1-2025		1,625,000		1,886,235
Montgomery County PA IDA Exelon Generation Company LLC Project Series A (Industrial Development Revenue) ±		2.55			12-1-2029		15,530,000		15,613,862
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50			10-1-2030		10,625,000		10,658,894
Penn Hills Municipality PA Series B (GO Revenue, Ambac Insured) ¤		0.00			12-1-2017		1,000,000		968,280
Pennsylvania EDFA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2034		7,700,000		8,514,968
Pennsylvania Finance Authority Penn Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2025		3,790,000		2,765,032

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania HFA Single Family Mortgage Revenue Bonds AMT Series A (Housing Revenue)		4.70	%		10-1-2037	$	3,655,000	$	3,679,452
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2024		3,000,000		3,316,980
Pennsylvania Public School Building Authority Series DCL-016 (Miscellaneous Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.48			6-1-2023		12,745,000		12,745,000
Pennsylvania Turnpike Commission Motor License Series B1 (Transportation Revenue)		5.00			12-1-2040		12,410,000		13,689,471
Philadelphia PA Airport Revenue Bonds AMT Series A (Airport Revenue, AGM Insured)		5.00			6-15-2032		5,000,000		5,244,400
Philadelphia PA Airport Revenue Bonds AMT Series A (Airport Revenue, AGM Insured)		5.00			6-15-2037		10,000,000		10,441,600
Philadelphia PA IDA 1st Philadelphia Preparatory Charter School Project Series A (Education Revenue)		7.00			6-15-2033		2,000,000		2,337,640
Philadelphia PA IDA New Foundations Charter School Project (Education Revenue)		6.00			12-15-2027		285,000		312,064
Philadelphia PA Water & Wastewater Revenue Bonds Series A (Water & Sewer Revenue)		5.00			7-1-2033		8,000,000		9,328,480
State Public School Building Authority Pennsylvania Philadelphia School District Project (Miscellaneous Revenue)		5.00			4-1-2022		2,000,000		2,253,080
Wilkes Barre PA Finance Authority Wilkes University Project (Education Revenue)		5.00			3-1-2022		1,600,000		1,662,480
York County PA IDA Philadelphia Electric Company Project Series A (Industrial Development Revenue) ±		2.55			6-1-2036		3,390,000		3,429,358
									195,608,281
Puerto Rico: 0.38%
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50			7-1-2016		7,100,000		7,186,762
Puerto Rico Electric Power Authority Refunding Bond Series MM (Utilities Revenue, National Insured)		5.00			7-1-2017		150,000		152,579
Puerto Rico Highway & Transportation Authority Series AA (Transportation Revenue, National Insured)		5.50			7-1-2020		3,015,000		3,086,033
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		3,300,000		528,000
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Tax Revenue, Government Development Bank for Puerto Rico SPA) (s)		6.00			8-1-2024		7,000,000		1,120,000
									12,073,374
Rhode Island: 0.11%
Rhode Island Clean Water Finance Agency Cranston Wastewater Treatment System (Miscellaneous Revenue, National Insured)		5.80			9-1-2022		3,335,000		3,340,803
South Carolina: 0.96%
Calhoun County SC Solid Waste Disposal Facilities Eastman Kodak Company Project (Industrial Development Revenue)		6.75			5-1-2017		400,000		430,476
Cherokee County SC Scago Educational Facilities Corporation Cherokee School District #1 Series B (Miscellaneous Revenue, AGM Insured)		5.00			12-1-2026		2,295,000		2,339,339
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2016		121,679		120,753
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		164,621		131,677
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		181,929		123,690
Kershaw County SC Public Schools Kershaw County School District Project (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2021		2,870,000		2,987,354

20 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date			Principal		Value
South Carolina (continued)
Kershaw County SC Public Schools Kershaw County School District Project (Miscellaneous Revenue, AGC Insured)		5.00	%		12-1-2022		$	905,000	$	942,005
Kershaw County SC Public Schools Kershaw County School District Project (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2023			6,950,000		7,234,186
Lee County SC School Facilities Incorporated Series 2006 (Miscellaneous Revenue, AGC Insured)		6.00			12-1-2031			2,890,000		3,082,561
Piedmont SC Municipal Power Agency (Utilities Revenue, FGIC Insured)		6.75			1-1-2019			210,000		245,123
RBC Municipal Products Incorporated Trust Floater Series O-9 (Utilities Revenue, Royal Bank of Canada LIQ) 144Aø		0.16			7-1-2018			9,300,000		9,300,000
South Carolina Education Assistance Authority Student Loan Series I (Education Revenue)		5.10			10-1-2029			1,875,000		2,012,475
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.25			11-1-2045			1,500,000		1,658,355
										30,607,994
South Dakota: 0.31%
Rapid City SD Series A (Airport Revenue)		6.75			12-1-2031			1,020,000		1,145,868
Rapid City SD Series A (Airport Revenue)		7.00			12-1-2035			750,000		845,858
South Dakota EDFA Pooled Loan Program Spearfish Forest Series A (Miscellaneous Revenue)		5.88			4-1-2028			2,350,000		2,378,224
South Dakota HEFA Sanford Health Project (Health Revenue)		5.50			11-1-2040			5,000,000		5,550,700
										9,920,650
Tennessee: 0.18%
Memphis-Shelby County TN Industrial Development Board Boys & Girls Club Series A (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.09			1-1-2028			4,530,000		4,530,000
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2027			1,000,000		1,172,940
										5,702,940
Texas: 8.87%
Austin TX Airport System AMT (Airport Revenue)		5.00			11-15-2039	��		8,000,000		8,921,040
Austin TX Airport System AMT (Airport Revenue)		5.00			11-15-2044			3,500,000		3,880,415
Beasley TX Higher Education Finance Corporation Focus Learning Academy Series A (Education Revenue)		7.75			8-15-2041			2,000,000		2,022,340
Central Texas Regional Mobility Authority Senior Lien (Transportation Revenue, National Insured)		4.25			1-1-2016			440,000		440,000
Central Texas Regional Mobility Authority Senior Lien (Transportation Revenue)		5.75			1-1-2025			2,000,000		2,224,200
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2033			3,740,000		4,116,842
Clifton TX Higher Educational Finance Corporation Series A (Education Revenue)		5.75			8-15-2038			2,000,000		2,085,400
Dallas TX Independent School District School Building (GO Revenue, Permanent School Fund Insured)		6.38			2-15-2034			10,000,000		11,147,700
Dallas-Fort Worth TX International Airport Facilities Series 2001-A1 (Industrial Development Revenue)		6.15			1-1-2016			6,065,000		6,065,000
Grand Parkway Transportation Corporation TX CAB Series B (Transportation Revenue) ±		0.00			10-1-2029			1,015,000		856,802
Grand Parkway Transportation Corporation TX CAB Series B (Transportation Revenue) ±		0.00			10-1-2030			2,000,000		1,680,680
Gulf Coast TX IDA (Industrial Development Revenue, BNP Paribas LOC) ø		0.65			11-1-2019			4,850,000		4,850,000
Houston TX Airport System Revenue AMT Series B2 (Airport Revenue)		5.00			7-15-2020			1,350,000		1,449,522
Houston TX Airport System Revenue AMT Series C (Airport Revenue)		5.00			7-15-2020			1,250,000		1,326,475
Houston TX Housing Finance Corporation Cullen Park Apartments Series A (Housing Revenue, FNMA LIQ)		5.70			12-1-2033			965,000		973,743

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
La Vernia TX Higher Education Finance Corporation Lifeschool of Dallas Series A (Education Revenue)		6.25	%		8-15-2021	$	3,660,000	$	4,302,879
La Vernia TX Higher Education Finance Corporation Lifeschool of Dallas Series A (Education Revenue)		7.50			8-15-2041		6,500,000		7,928,440
La Vernia TX Higher Education Finance Corporation Series A (Education Revenue)		6.25			2-15-2017		330,000		340,009
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		2,255,000		2,381,167
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		4,495,000		4,746,495
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue)		6.75			10-1-2032		1,940,000		2,053,509
Lower Colorado TX River Authority Series A (Utilities Revenue)		5.00			5-15-2033		2,475,000		2,824,718
Lower Colorado TX River Authority Series A (Utilities Revenue)		5.00			5-15-2036		8,855,000		10,018,193
Newark TX ECFA A.W. Brown-Fellowship Leadership Academy Project Series A (Education Revenue)		6.00			8-15-2032		1,750,000		1,806,805
Newark TX ECFA A.W. Brown-Fellowship Leadership Academy Project Series A (Education Revenue)		6.00			8-15-2042		2,330,000		2,405,492
North Texas Tollway Authority Second Tier Revenue Series A (Transportation Revenue)		5.00			1-1-2032		4,000,000		4,647,440
North Texas Tollway Authority Second Tier Revenue Series A (Transportation Revenue)		5.00			1-1-2035		4,000,000		4,592,880
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2033		3,600,000		4,167,288
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.27			12-1-2039		17,100,000		17,100,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Industrial Development Revenue) ø		0.27			4-1-2040		8,500,000		8,500,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.26			4-1-2040		16,000,000		16,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Industrial Development Revenue) ø		0.26			11-1-2040		10,000,000		10,000,000
Port Houston TX Authority Series D-1 (GO Revenue)		5.00			10-1-2035		10,000,000		11,562,500
San Leanna TX Education Facilities Corporation Street Edwards University Project (Education Revenue)		5.13			6-1-2022		1,735,000		1,806,898
San Leanna TX Education Facilities Corporation Street Edwards University Project (Education Revenue)		5.13			6-1-2023		1,000,000		1,039,450
San Leanna TX Education Facilities Corporation Street Edwards University Project (Education Revenue)		5.13			6-1-2024		750,000		778,013
Southeast Texas Housing Finance Corporation Mortgage-Backed Securities Program Series B (Housing Revenue, GNMA/FNMA/FHLMC Insured)		6.00			2-1-2036		213,375		218,061
Southeast Texas Housing Finance Corporation Mortgage-Backed Securities Program Series B (Housing Revenue, GNMA/FNMA/FHLMC Insured)		6.30			10-1-2035		137,265		138,809
Tarrant County TX Cultural Education Facilities Buckingham Senior Living Community Incorporated (Health Revenue)		3.88			11-15-2020		2,000,000		2,008,820
Tarrant County TX Cultural Education Facilities Finance Corporation Air Force Village Obligation Group (Health Revenue)		5.00			5-15-2017		1,400,000		1,439,004
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.26			11-15-2029		13,047,210		13,047,210
Tarrant County TX Cultural Education Facilities Finance Corporation Series B (Health Revenue)		5.00			11-15-2030		4,000,000		4,350,640
Tarrant County TX Cultural Education Facilities Finance Corporation Texas Health Resources Series A (Health Revenue)		5.00			2-15-2023		9,900,000		10,360,548
Tender Option Bond Trust Receipts Floaters Series 2015 (Transportation Revenue, Barclays Bank plc LIQ) 144Aø		0.29			7-1-2021		4,215,000		4,215,000

22 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.48	%		9-15-2017	$	8,405,000	$	8,405,000
Texas Municipal Gas Acquisition & Supply Corporation Sub Lien Series C (Utilities Revenue) ±		1.79			12-15-2026		28,780,000		25,869,766
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		6.75			6-30-2043		4,000,000		4,927,800
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		12,500,000		15,677,000
Texas Transportation Commission Highway Improvement (Miscellaneous Revenue)		5.00			4-1-2028		7,280,000		8,819,210
Texas Transportation Commission State Highway Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.23			4-1-2026		13,000,000		13,000,000
Travis County TX Housing Finance Corporation Series A (Housing Revenue, GNMA Insured)		6.35			10-1-2034		294,063		296,668
									283,815,871
Utah: 0.48%
Spanish Fork City UT Charter School American Leadership Academy (Education Revenue) 144A		5.55			11-15-2021		1,030,000		1,074,074
Utah County UT Charter School Ronald Wilson Reagan Series A (Education Revenue)		5.75			2-15-2022		640,000		661,882
Utah State Charter School Finance Authority Early Light Academy Project (Education Revenue)		8.50			7-15-2046		6,480,000		7,351,884
Utah State Charter School Finance Authority Oquirrh Mountain Charter School Project (Education Revenue)		8.00			7-15-2030		2,015,000		2,181,379
Utah State Charter School Finance Authority Oquirrh Mountain Charter School Project (Education Revenue)		8.00			7-15-2041		3,910,000		4,228,000
									15,497,219
Vermont: 1.34%
Vermont Student Assistance Corporation Education Loan Revenue Series B Class A2 (Education Revenue) ±		3.42			12-3-2035		16,800,000		16,800,000
Vermont Student Assistance Corporation Education Loan Revenue Series Class B (Education Revenue) ±		1.24			6-2-2042		25,661,650		25,950,344
									42,750,344
Virgin Islands: 0.30%
Virgin Islands PFA Series C (Miscellaneous Revenue)		5.00			10-1-2018		8,860,000		9,477,631
Virginia: 0.35%
Albemarle County VA Industrial Development Revenue Jefferson Scholars Foundation Project (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.09			10-1-2037		1,500,000		1,500,000
Fairfax County VA Redevelopment & Housing Authority Housing for the Elderly Series A (Housing Revenue, FHA Insured)		6.00			9-1-2016		210,000		210,817
Marquis VA CDA CAB Series C (Tax Revenue) (i)¤		0.00			9-1-2041		1,824,000		237,229
Marquis VA CDA Convertible CAB (Tax Revenue) 144A±		0.00			9-1-2045		397,000		258,062
Marquis VA CDA Series B (Tax Revenue) (i)		5.63			9-1-2041		1,310,000		1,048,838
Prince William County VA County Facilities (Miscellaneous Revenue)		5.00			10-1-2024		2,560,000		3,126,451
Riverside VA Regional Jail Authority (Miscellaneous Revenue)		5.00			7-1-2025		3,435,000		4,074,528
Virginia Resources Authority Unrefunded Balance Series A (Utilities Revenue, National Insured)		5.50			5-1-2016		30,000		30,134
Watkins Centre VA CDA (Miscellaneous Revenue)		5.40			3-1-2020		733,000		735,419
									11,221,478

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Washington: 0.24%
Spokane WA Housing Finance Commission Riverview Retirement Community Project (Health Revenue)		5.00	%		1-1-2023	$	1,545,000	$	1,675,800
Washington Health Care Facilities Authority Central Washington (Health Revenue)		7.00			7-1-2039		5,000,000		6,004,400
									7,680,200
West Virginia: 0.08%
West Virginia Hospital Finance Authority Improvement Series D (Health Revenue, AGM Insured)		5.50			6-1-2033		2,305,000		2,534,486
Wisconsin: 0.59%
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.00			8-1-2033		2,120,000		2,371,390
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.25			8-1-2043		4,650,000		5,276,309
Wisconsin HEFA Aurora Health Care Incorporated Series A (Health Revenue)		5.25			4-15-2024		1,025,000		1,148,543
Wisconsin HEFA Series M (Health Revenue, National Insured) ±(m)(n)		0.42			6-1-2019		5,300,000		5,127,750
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.00			8-1-2023		470,000		507,332
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.75			8-1-2033		1,430,000		1,593,420
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		7.00			8-1-2043		1,575,000		1,776,994
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		7.20			8-1-2048		940,000		1,067,473
									18,869,211
Wyoming: 0.34%
Sweetwater County WY PCR Refunding PacifiCorp Project Series A (Industrial Development Revenue) ø		0.22			1-1-2017		8,500,000		8,500,000
West Park Hospital District Wyoming Series B (Health Revenue)		6.50			6-1-2027		500,000		580,345
Wyoming CDA (Education Revenue)		6.50			7-1-2043		1,600,000		1,813,456
									10,893,801
Total Municipal Obligations (Cost $2,856,809,080)									3,007,961,931
	Yield					Shares
Short-Term Investments: 4.42%
Investment Companies: 4.33%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)##		0.01					138,723,854		138,723,854
						Principal
U.S. Treasury Securities: 0.09%
U.S. Treasury Bill (z)#		0.22			3-17-2016	$	2,950,000		2,949,401
Total Short-Term Investments (Cost $141,672,478)									141,673,255

Total investments in securities (Cost $3,029,978,758) *	99.42	%		3,181,867,186
Other assets and liabilities, net	0.58			18,476,338
Total net assets	100.00	%	$	3,200,343,524

24 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2015 (unaudited)

± 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.

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.

(h) Underlying security in an inverse floater structure

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.

(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

(x) Inverse floating rate security

%% The security is issued on a when-issued basis.

(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.

(l) The issuer of the security is an affiliated person 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.

# 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 $3,031,101,707 and unrealized gains (losses) consists of:

Gross unrealized gains	$	168,068,331
Gross unrealized losses		(17,302,852	)
Net unrealized gains	$	150,765,479

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 1

Security name	Interest rate			Maturity date		��	Principal		Value
Agency Securities: 0.23%
FHLMC Multifamily Variable Rate Demand Certificates Series M012 Class A1A		5.50	%		8-15-2051		$	7,000,000	$	7,157,500
FHLMC Series M012 Class A1A2		5.50			8-15-2051			5,300,000		5,419,250
Total Agency Securities (Cost $12,856,388)										12,576,750
Municipal Obligations: 93.98%
Alabama: 2.33%
Alabama Health Care Authority for Baptist Health Series B (Health Revenue, AGC Insured) ±(m)		0.50			11-15-2037			9,200,000		9,200,000
Alabama Health Care Authority for Baptist Health Series B (Health Revenue) ø		0.55			11-1-2042			15,450,000		15,450,000
Alabama HFA MFHR The Plaza Centennial Hill Phase 2 Series C (Housing Revenue) ±		0.55			5-1-2017			13,500,000		13,501,620
Alabama Port Authority Docks Facilities AMT Series A (Airport Revenue, National Insured)		5.00			10-1-2017			2,000,000		2,054,400
Chatom AL Industrial Development Board Alabama Electric Series A (Utilities Revenue, National Rural Utilities Cooperative Finance Corporation SPA) ±		0.60			8-1-2037			13,200,000		13,200,396
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.85			11-15-2038			39,545,000		39,536,696
Jefferson County AL Sewer Sub Lien Series D (Water & Sewer Revenue)		5.00			10-1-2016			1,000,000		1,028,540
Jefferson County AL Sewer Sub Lien Series D (Water & Sewer Revenue)		5.00			10-1-2017			1,750,000		1,853,635
Jefferson County AL Warrants Series A (GO Revenue)		4.90			4-1-2021			19,560,000		20,859,958
Tuscaloosa County AL IDA (Industrial Development Revenue) ø		0.42			9-1-2020			12,600,000		12,600,000
										129,285,245
Alaska: 0.04%
Alaska Industrial Development and Export Authority Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2016			325,000		325,000
Alaska Industrial Development and Export Authority Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2017			765,000		792,800
North Slope Borough AK Water & Wastewater Facilities Service (Water & Sewer Revenue)		4.00			6-30-2018			1,125,000		1,198,631
										2,316,431
Arizona: 1.49%
Phoenix AZ IDA Various Republic Services Incorporated Projects (Industrial Development Revenue) ±		0.60			12-1-2035			29,000,000		29,000,000
Scottsdale AZ IDA Healthcare Series A (Health Revenue)		5.00			9-1-2016			3,655,000		3,754,306
Scottsdale AZ IDA Healthcare Series F (Health Revenue, AGM Insured) ±(m)		0.65			9-1-2045			48,700,000		48,700,000
University of Arizona Medical Center Corporation (Health Revenue)		5.00			7-1-2016			700,000		716,282
University of Arizona Medical Center Corporation (Health Revenue)		5.00			7-1-2017			545,000		579,400
										82,749,988
Arkansas: 0.04%
Arkansas Development Finance Authority Police Headquarters & Wireless Data Equipment Project (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2017			850,000		885,692
Arkansas Development Finance Authority Police Headquarters & Wireless Data Equipment Project (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2018			500,000		532,215
Springdale AR Sales & Use Tax Refunding & Improvement (Tax Revenue)		2.00			11-1-2016			840,000		849,887
										2,267,794

2 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California: 8.45%
Acalanes CA Union High School District BAN (GO Revenue)		5.00	%		8-1-2017	$	4,500,000	$	4,799,655
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series A (Transportation Revenue) ±		1.00			4-1-2047		28,885,000		28,914,752
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.02			4-1-2045		1,500,000		1,505,040
California (GO Revenue) ±		0.56			12-1-2028		9,000,000		9,001,530
California (GO Revenue) ±		4.00			12-1-2026		86,915,000		88,180,482
California (GO Revenue) ±		4.00			12-1-2027		4,800,000		5,015,184
California Administrative Services Sacramento Unified School District (Miscellaneous Revenue, Ambac Insured) ±		1.24			1-1-2017		615,000		614,643
California HFFA San Diego Hospital Series A (Health Revenue, National Insured) ±(m)(n)		0.02			7-15-2018		2,800,000		2,733,500
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-2 (Miscellaneous Revenue) ±		0.29			4-1-2038		9,020,000		9,012,964
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-3 (Miscellaneous Revenue) ±		0.29			4-1-2038		15,600,000		15,587,832
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-4 (Miscellaneous Revenue) ±		0.29			4-1-2038		32,000,000		31,975,040
California Municipal Finance Authority Northbay Healthcare Series A (Health Revenue) ±		2.11			11-1-2027		9,000,000		9,008,370
California Public Works Board Department of Corrections Project Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2019		1,125,000		1,217,903
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		3.00			11-15-2016		250,000		254,615
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		4.00			11-15-2017		260,000		274,219
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		5.00			11-15-2018		275,000		302,874
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.44			7-1-2041		35,700,000		35,700,000
California Statewide CDA Health Facilities Catholic Series E (Health Revenue, AGM Insured) ±(m)		0.50			7-1-2040		25,900,000		25,900,000
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.40			7-1-2040		5,900,000		5,900,000
California Statewide CDA Samoa Avenue Apartments Series V (Housing Revenue) ±		0.95			12-1-2017		10,000,000		9,987,700
California Statewide CDA Stoneman Village Series I (Housing Revenue) ±		0.67			6-1-2018		11,050,000		11,049,669
El Monte CA Union High School District Refunding Bond (GO Revenue) %%		3.00			6-1-2016		440,000		442,046
El Monte CA Union High School District Refunding Bond (GO Revenue) %%		4.00			6-1-2017		5,365,000		5,548,483
Hemet CA Unified School District Certificate of Participation (Miscellaneous Revenue) ±		0.66			10-1-2036		3,335,000		3,334,633
Kern County CA Housing Authority MFHR Jasmine Heights Apartments (Housing Revenue, FHA Insured)		0.55			3-1-2016		3,900,000		3,900,858
Lake Elsinore CA Unified School TRAN Series A (Miscellaneous Revenue)		2.00			6-30-2016		2,000,000		2,009,900
Los Angeles County CA Metropolitan Transportation Authority Series A (Tax Revenue)		5.00			7-1-2016		3,280,000		3,357,638
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		0.82			7-1-2017		34,225,000		34,223,289
Oxnard CA Harbor District Series A (Airport Revenue)		5.00			8-1-2016		1,150,000		1,177,037
Palomar Pomerado CA Health Care District Certificate of Participation Series A (Health Revenue, AGM Insured) ±(m)		1.15			11-1-2036		18,900,000		18,900,000
Palomar Pomerado CA Health Care District Certificate of Participation Series B (Health Revenue, AGM Insured) ±(m)		1.07			11-1-2036		23,125,000		23,125,000
Palomar Pomerado CA Health Care District ROC RR-11872 (GO Revenue, National Insured, Citibank NA LIQ) 144Aø		0.21			2-1-2016		6,000,000		6,000,000
Sacramento County CA Airport System AMT Senior Series B (Airport Revenue, AGM Insured)		5.50			7-1-2018		6,635,000		6,900,599

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sacramento County CA Airport System Refunding AMT Subordinated & PFC Series E (Airport Revenue, AGM Insured)		5.50	%		7-1-2018	$	7,975,000	$	8,294,239
San Joaquin Hills CA Transportation Corridor Agency Series A (Transportation Revenue)		5.00			1-15-2016		9,000,000		9,014,130
San Jose CA MFHR Parkview Family Apartments Series B (Housing Revenue)		0.55			6-1-2016		13,600,000		13,601,496
Santa Clara CA PFOTER Series 4713 (GO Revenue, Ambac Insured, Dexia Credit Local LIQ) 144Aø		0.31			12-15-2021		22,595,000		22,595,000
Tender Option Bond Trust Receipts for Los Angeles CA Series ZF0183 (Miscellaneous Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.26			12-1-2022		7,925,000		7,925,000
Windsor CA Redevelopment Successor Refunding Agency Windsor Redevelopment Project (Tax Revenue)		2.00			9-1-2016		1,095,000		1,103,661
									468,388,981
Colorado: 0.73%
Adams County CO Pollution Control Refunding Public Service Company Colorado Project Series A (Industrial Development Revenue, National Insured)		4.38			9-1-2017		8,550,000		8,578,728
Colorado HEFA Covenant Retirement Community Series A (Health Revenue)		3.00			12-1-2017		1,400,000		1,438,934
Colorado HEFA Covenant Retirement Community Series A (Health Revenue)		4.00			12-1-2018		1,150,000		1,216,953
Colorado HFA MFHR Highland West Community Project (Housing Revenue, GNMA/FHA Insured)		0.55			9-1-2016		5,000,000		4,996,100
Denver CO City & County Airport Sub Series A (Airport Revenue)		4.00			11-15-2016		450,000		463,532
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2016		250,000		259,280
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2017		400,000		428,440
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2018		500,000		549,865
Denver CO City & County Airport Sub Series B (Airport Revenue)		5.00			11-15-2017		600,000		645,360
Denver CO City & County Airport Sub Series B (Airport Revenue)		5.00			11-15-2018		600,000		664,896
Denver CO City & County Airport Sub Series F2 (Airport Revenue, AGC Insured) ±(m)		0.37			11-15-2025		7,200,000		7,200,000
Denver Colorado City & County 2300 Welton Project (Housing Revenue)		0.65			4-1-2017		2,290,000		2,281,298
E-470 Colorado Public Highway Authority Senior SIFMA Index Series A (Transportation Revenue) ±		1.19			9-1-2039		11,725,000		11,688,887
									40,412,273
Connecticut: 2.44%
Connecticut Economic Recovery Notes Series A-3 (GO Revenue) ±		0.27			7-1-2017		20,000,000		20,000,000
Connecticut HEFA Lawrence & Memorial Hospital Series F (Health Revenue)		4.00			7-1-2017		1,880,000		1,959,167
Connecticut HEFA Yale University Series T-2 (Education Revenue) ±		0.60			7-1-2029		34,520,000		34,462,697
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		24,600,000		24,586,470
Connecticut Series A (Miscellaneous Revenue) ±		0.43			3-1-2018		2,875,000		2,851,770
Connecticut Series A (Miscellaneous Revenue) ±		0.93			5-15-2018		7,000,000		7,034,790
Connecticut Series D (Miscellaneous Revenue) ±		0.60			8-15-2016		5,500,000		5,509,900
Connecticut Series D (Miscellaneous Revenue) ±		0.70			8-15-2017		14,855,000		14,899,416
Connecticut Series D (Miscellaneous Revenue) ±		0.89			8-15-2018		6,000,000		5,999,340
Hamden CT Refunding (GO Revenue)		2.00			8-15-2016		1,000,000		1,003,890
New Britain CT (GO Revenue, Ambac Insured)		5.00			4-15-2017		1,165,000		1,223,180
New Haven CT (GO Revenue, Ambac Insured)		5.00			11-1-2016		6,250,000		6,457,500
New Haven CT Series A (GO Revenue)		5.00			8-1-2016		5,680,000		5,825,635
Waterbury CT (GO Revenue)		4.00			2-1-2016		850,000		852,593
Waterbury CT (GO Revenue)		5.00			2-1-2017		1,350,000		1,410,062
Waterbury CT (GO Revenue)		5.00			2-1-2018		1,215,000		1,310,256
									135,386,666

4 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
District of Columbia: 0.30%
District of Columbia American College of Cardiology (Education Revenue, SunTrust Bank LOC) ø		0.09	%		6-1-2040	$	5,500,000	$	5,500,000
District of Columbia HFA Edgewood Terrace (Housing Revenue) ±		0.65			6-1-2017		6,070,000		6,070,243
District of Columbia HFA MFHR Channing Phillips Project (Housing Revenue) ±		0.55			9-1-2017		5,000,000		4,996,350
									16,566,593
Florida: 4.44%
Florida Housing Finance Corporation Hilltop Landings Apartments Project Series A (Housing Revenue)		0.75			3-1-2017		1,500,000		1,498,950
Florida Housing Finance Corporation Housing Georgia Arms Apartments Series D (Housing Revenue)		0.55			10-1-2016		1,800,000		1,800,054
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2016		255,000		262,023
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2017		225,000		237,481
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2018		300,000		324,288
Hernando County FL Criminal Justice Complex Financing (Miscellaneous Revenue, National Insured)		7.65			7-1-2016		11,175,000		11,557,073
Hillsborough County FL Tampa International Airport Aviation Authority Series A (Airport Revenue)		5.00			10-1-2016		1,200,000		1,239,252
Lakeland FL Energy System (Utilities Revenue) ±		0.76			10-1-2017		5,220,000		5,233,154
Lee County FL Solid Waste System Series A (Resource Recovery Revenue, Ambac Insured)		5.00			10-1-2016		4,535,000		4,659,032
Miami-Dade County FL Aviation Series B (Airport Revenue)		5.00			10-1-2017		300,000		320,814
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, AGC Insured, Citibank NA LIQ) 144Aø		0.21			7-1-2018		1,000,000		1,000,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144A±		0.60			10-13-2023		6,320,000		6,320,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) 144A±		0.65			8-1-2028		16,505,000		16,505,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) 144A±		0.65			3-8-2030		6,135,000		6,135,000
Miami-Dade County FL Expressway Authority Toll System Series DCL-2012-003 (Transportation Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) 144A±		0.60			3-8-2026		16,860,000		16,860,000
Miami-Dade County FL HFA MFHR Golfside Villas Apartment Project (Housing Revenue)		0.55			5-1-2016		5,500,000		5,500,880
Miami-Dade County FL International Airport Aviation Series 2008-1139X (Airport Revenue, AGC Insured, Bank of America NA LIQ) 144Aø		0.37			10-1-2033		7,500,000		7,500,000
Miami-Dade County FL International Airport Series C (Airport Revenue, AGM Insured)		5.25			10-1-2019		16,775,000		17,948,244
Miami-Dade County FL School Board Certificate of Participation Series 3 (Miscellaneous Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) 144Aø		0.46			9-25-2024		37,895,000		37,895,000
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2037		25,000,000		25,000,000
Miami-Dade County FL School Board Foundation Incorporated (Miscellaneous Revenue, Dexia Credit Local LOC, National Insured, Dexia Credit Local LIQ) 144Aø		0.40			5-1-2031		20,000,000		20,000,000
Miami-Dade County FL School Board Master Equipment Lease Purchase (Miscellaneous Revenue) 144A		3.59			3-3-2016		1,436,093		1,440,578
Okeechobee County FL Disposal Waste Management Landfill Series A (Resource Recovery Revenue) ±		2.25			7-1-2039		2,360,000		2,381,075

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Orange County FL Health Facilities Authority Lakeside Health Facility (Health Revenue, SunTrust Bank LOC) ø		0.09	%		7-1-2027	$	5,235,000	$	5,235,000
Orange County FL Health Facilities Unrefunded Balance Series A (Health Revenue, National Insured)		6.25			10-1-2016		440,000		454,234
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		3.00			5-15-2017		1,000,000		1,025,360
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		4.00			5-15-2018		500,000		529,025
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		4.00			5-15-2019		780,000		834,772
Palm Beach FL PFOTER Series 4615 (Miscellaneous Revenue, Dexia Credit Local LIQ) ø		0.28			8-1-2029		20,000,000		20,000,000
Palm Beach County FL School Board Series A (Miscellaneous Revenue) ±		5.00			8-1-2032		5,300,000		5,439,072
Pasco County FL School Board Certificates Series B (Miscellaneous Revenue, Ambac Insured) ±(m)		1.25			8-1-2030		19,575,000		19,575,000
Pasco County FL School District (Tax Revenue)		3.00			10-1-2016		1,260,000		1,282,970
									245,993,331
Georgia: 2.89%
Athens GA Housing Authority Pinewood Apartments Project Series 2015 (Housing Revenue)		0.60			10-1-2016		2,000,000		1,998,540
Burke County GA Development Authority Georgia Power Company Plant Vogtle Project Series 2012 (Utilities Revenue) ±		1.75			12-1-2049		4,600,000		4,643,194
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project (Utilities Revenue) ±		1.75			12-1-2049		5,135,000		5,183,218
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project Series 2009 (Utilities Revenue) ø		0.22			7-1-2049		15,000,000		15,000,000
Burke County GA Development Authority Georgia Transmission Corporation (Industrial Development Revenue) ±		1.30			1-1-2052		14,000,000		14,010,640
Cedartown GA Housing Authority Grayfield Apartments Project (Housing Revenue) ±		1.00			1-1-2019		3,800,000		3,797,758
Georgia Series G (GO Revenue) ±		0.41			12-1-2026		106,305,000		105,954,194
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2016		1,775,000		1,790,212
Private Colleges & Universities Authority Georgia Mercer University Series A (Education Revenue)		4.00			10-1-2016		1,500,000		1,535,625
Savannah GA EDA Exempt Facilities Home Depot Project Series B (Industrial Development Revenue, SunTrust Bank LOC) ±		0.21			8-1-2025		6,400,000		6,400,000
									160,313,381
Guam: 0.07%
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2017		850,000		908,897
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2017		2,750,000		2,920,748
									3,829,645
Hawaii: 0.12%
Hawaii Department of Budget and Finance Queens Health System Series B (Health Revenue) ±		0.25			7-1-2039		3,200,000		3,200,000
Hawaii Department of Transportation Airports Division Lease AMT (Miscellaneous Revenue)		4.00			8-1-2018		1,000,000		1,065,070

6 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Hawaii (continued)
Hawaii Department of Transportation Airports Division Lease AMT (Miscellaneous Revenue)		5.00	%		8-1-2017	$	425,000	$	450,849
Hawaii Housing Finance & Development Corporation Kalani Gardens Series A (Housing Revenue)		0.70			4-1-2017		1,750,000		1,749,528
									6,465,447
Idaho: 0.35%
Idaho HFFA LPN Series A (Health Revenue)		2.50			5-1-2017		6,500,000		6,488,950
Idaho Housing & Finance Association Series A (Housing Revenue, FNMA LOC) ø		0.26			1-1-2038		13,095,000		13,095,000
									19,583,950
Illinois: 9.95%
Chicago Housing Authority Capital Program (Housing Revenue, AGM Insured)		5.00			7-1-2020		6,350,000		6,483,477
Chicago Housing Authority Capital Program (Housing Revenue, AGM Insured)		5.00			7-1-2022		2,745,000		2,802,700
Chicago IL (GO Revenue, National Insured)		5.25			1-1-2017		500,000		511,950
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.01			3-1-2032		15,000,000		14,989,200
Chicago IL Board of Education Series A (GO Revenue, Ambac Insured) ¤		0.00			12-1-2016		6,845,000		6,598,375
Chicago IL Board of Education Series A (GO Revenue, National Insured) ¤		0.00			12-1-2018		5,265,000		4,679,006
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2016		1,595,000		1,614,204
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.25			12-1-2017		1,645,000		1,721,542
Chicago IL Board of Education Series A-1 (GO Revenue) ±		0.75			3-1-2026		45,780,000		45,266,348
Chicago IL Board of Education Series A-2 (GO Revenue) ±		0.76			3-1-2035		72,320,000		69,001,235
Chicago IL Board of Education Series B (GO Revenue, Ambac Insured)		5.00			12-1-2017		1,085,000		1,089,752
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2017		1,620,000		1,625,508
Chicago IL Board of Education Series F (GO Revenue)		5.00			12-1-2016		1,000,000		1,004,970
Chicago IL Neighborhoods Alive 21 Program (GO Revenue)		5.00			1-1-2016		5,355,000		5,355,000
Chicago IL Neighborhoods Alive 21 Program (GO Revenue)		5.00			1-1-2017		550,000		561,798
Chicago IL Neighborhoods Alive 21 Program (GO Revenue)		5.00			1-1-2019		1,925,000		2,012,145
Chicago IL Park District Harbor Facilities Series D (GO Revenue)		4.00			1-1-2016		1,000,000		1,000,000
Chicago IL Park District Limited Tax Series A (GO Revenue)		4.00			1-1-2016		615,000		615,000
Chicago IL Park District Limited Tax Series D (GO Revenue)		3.00			1-1-2016		1,540,000		1,540,000
Chicago IL Park District Limited Tax Series D (GO Revenue)		4.00			1-1-2017		1,000,000		1,024,420
Chicago IL Park District Limited Tax Series D (GO Revenue)		4.00			1-1-2018		2,760,000		2,878,763
Chicago IL Refunding Emergency System (GO Revenue, AGM/FGIC Insured)		5.50			1-1-2019		3,000,000		3,219,000
Chicago IL Refunding Project Series B (GO Revenue)		5.00			1-1-2016		7,730,000		7,730,000
Chicago IL Refunding Project Series B (GO Revenue)		5.00			1-1-2017		1,275,000		1,302,349
Chicago IL Refunding Project Series B (GO Revenue)		5.00			1-1-2019		3,205,000		3,350,090
Chicago IL Refunding Project Series B (GO Revenue)		5.00			1-1-2020		2,775,000		2,928,069
Chicago IL Refunding Series A (GO Revenue)		4.00			1-1-2019		1,250,000		1,271,225
Chicago IL Series A (GO Revenue)		4.00			1-1-2019		1,335,000		1,357,668
Chicago IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2018		10,000,000		10,101,400
Chicago IL Series A (GO Revenue)		5.00			12-1-2019		1,000,000		1,058,560
Chicago IL Series A (GO Revenue, AGM Insured)		5.25			1-1-2017		870,000		872,532
Chicago IL Series A2 (GO Revenue, Ambac Insured)		5.50			1-1-2018		4,580,000		4,777,077
Chicago IL Series B (GO Revenue, Ambac Insured)		5.00			12-1-2018		2,415,000		2,459,170
Chicago IL Series C (GO Revenue, National Insured)		5.00			1-1-2018		5,350,000		5,554,103
Chicago IL Series D (GO Revenue)		5.00			1-1-2016		1,035,000		1,035,000
Chicago IL Series D (GO Revenue, AGM/FGIC Insured)		5.25			1-1-2017		1,210,000		1,242,053
Chicago IL Transit Authority Capital Grant Unrefunded Balance Federal Transit Administration (Miscellaneous Revenue, Ambac Insured)		5.00			6-1-2018		1,500,000		1,560,165

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		2.05	%		12-30-2016	$	1,280,000	$	1,284,429
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		3.00			12-30-2017		1,340,000		1,366,425
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		3.00			12-30-2018		880,000		893,922
Cook County IL Refunding Series A (GO Revenue)		4.00			11-15-2018		300,000		314,688
Cook County IL Refunding Series A (GO Revenue, Ambac Insured)		5.00			11-15-2019		1,000,000		1,014,330
Cook County IL Refunding Series C (GO Revenue)		4.25			11-15-2018		100,000		105,702
Cook County IL School District Number 087 Refunding School Series A (GO Revenue)		2.00			12-1-2016		1,175,000		1,184,024
Deutsche Bank SPEAR/LIFER Trust Series DBE 1032 (Tax Revenue, Deutsche Bank LIQ) 144Aø		0.25			12-1-2036		20,000,000		20,000,000
Deutsche Bank SPEAR/LIFER Trust Series DBE 1067X (Tax Revenue, AGC Insured, Deutsche Bank LIQ) 144Aø		0.26			1-1-2038		11,155,000		11,155,000
Grundy Kendall & Will Counties IL Community School District #201 (GO Revenue, AGC Insured)		5.75			10-15-2019		540,000		603,288
Illinois (Miscellaneous Revenue)		2.50			7-1-2017		3,000,000		3,024,720
Illinois (GO Revenue)		3.00			2-1-2016		9,340,000		9,358,587
Illinois (GO Revenue)		3.00			2-1-2017		8,740,000		8,876,257
Illinois (GO Revenue)		4.00			4-1-2016		500,000		504,000
Illinois (GO Revenue)		4.00			2-1-2018		5,550,000		5,736,869
Illinois (Miscellaneous Revenue)		4.00			7-1-2018		13,610,000		14,118,606
Illinois (Tax Revenue)		4.00			9-1-2018		4,500,000		4,674,465
Illinois (GO Revenue)		5.00			4-1-2016		5,000,000		5,053,100
Illinois (Miscellaneous Revenue)		5.00			5-1-2016		3,000,000		3,041,820
Illinois (GO Revenue)		5.00			3-1-2017		5,000,000		5,194,650
Illinois (Miscellaneous Revenue)		5.00			5-1-2017		5,070,000		5,284,157
Illinois (Miscellaneous Revenue)		5.00			7-1-2017		10,000,000		10,450,200
Illinois (GO Revenue, AGM Insured)		5.00			9-1-2017		3,200,000		3,211,328
Illinois (GO Revenue)		5.00			1-1-2018		6,500,000		6,537,375
Illinois (GO Revenue)		5.00			3-1-2018		2,000,000		2,111,020
Illinois (Miscellaneous Revenue)		5.00			5-1-2018		5,000,000		5,292,800
Illinois (Miscellaneous Revenue)		5.00			5-1-2019		10,500,000		11,277,315
Illinois Board of Trustees of the University of Illinois Utility Infrastructure Projects (Education Revenue, BMO Harris Bank NA SPA) ø		0.24			8-15-2021		14,000,000		14,000,000
Illinois Educational Authority University of Chicago Series B-1 (Education Revenue) ±		1.10			7-1-2036		6,485,000		6,480,850
Illinois Finance Authority Carle Foundation Series A (Health Revenue)		5.00			8-15-2016		2,200,000		2,257,090
Illinois Finance Authority Children’s Memorial Hospital Series A (Health Revenue, AGC Insured, Bank of America NA LIQ) 144Aø		0.29			8-15-2047		23,375,000		23,375,000
Illinois Finance Authority Revenue DePaul University (Education Revenue)		5.00			10-1-2016		1,850,000		1,910,236
Illinois Finance Authority The Peoples Gas Light and Coke Company (Miscellaneous Revenue, Ambac Insured) ±		4.30			6-1-2035		4,500,000		4,566,555
Illinois Highway Authority Series B (Transportation Revenue, AGM Insured, Landesbank Hessen-Thüringen SPA) ø		0.25			1-1-2016		8,000,000		8,000,000
Illinois Housing Development Authority Lafayette Terrace Apartments (Housing Revenue)		0.80			12-1-2016		7,650,000		7,648,623
Illinois Housing Development Authority Multi-Housing Township Village Apartments Project Series A (Housing Revenue) ±		1.25			5-1-2019		5,300,000		5,308,374
Illinois Metropolitan Pier & Exposition Authority Prefunded CAB (Tax Revenue, National Insured) ¤		0.00			6-15-2017		450,000		443,822
Illinois Metropolitan Pier & Exposition Authority Unrefunded CAB (Tax Revenue, National Insured) ¤		0.00			6-15-2017		1,465,000		1,429,137

8 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Refunding Bond (GO Revenue)		5.00	%		1-1-2018	$	8,685,000	$	9,139,052
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2016		1,125,000		1,151,314
Illinois Refunding Bond (GO Revenue, AGM Insured)		5.00			1-1-2017		2,000,000		2,071,260
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2017		1,425,000		1,491,676
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2018		1,520,000		1,615,699
Illinois Series A (Tax Revenue)		4.00			1-1-2017		12,935,000		13,257,340
Illinois Series A (GO Revenue)		5.00			4-1-2017		6,840,000		7,117,909
Illinois Series A (Tax Revenue)		5.00			6-1-2017		250,000		260,920
Illinois Series A (GO Revenue)		5.00			4-1-2018		5,335,000		5,639,308
Illinois Sports Authority (Tax Revenue)		5.00			6-15-2016		1,005,000		1,021,733
Illinois Sports Authority (Tax Revenue)		5.00			6-15-2017		760,000		793,090
Illinois Unrefunded Balance Series A (Miscellaneous Revenue)		5.00			10-1-2016		5,560,000		5,577,180
Kane County IL School District #129 Aurora West Series B (GO Revenue)		2.00			2-1-2017		2,190,000		2,215,097
Kane County IL School District #129 West Side Series B (GO Revenue)		2.00			2-1-2018		2,430,000		2,464,992
Kendall Kane & Will Counties IL Community Unit School District #308 (GO Revenue)		4.00			10-1-2018		2,000,000		2,152,700
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2017		500,000		491,500
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		2.00			12-1-2016		242,000		243,638
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.00			12-1-2017		417,000		426,499
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.50			12-1-2018		402,000		418,723
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.50			12-1-2019		567,000		592,872
Pingree Grove Illinois Special Service Area Number 7 Cambridge Lakes Project (Tax Revenue)		6.00			3-1-2036		10,595,000		10,897,593
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.60			6-1-2025		38,955,000		38,955,000
Springfield IL (Utilities Revenue)		5.00			3-1-2016		2,600,000		2,620,410
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2016		350,000		354,830
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2017		500,000		511,545
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2018		500,000		515,470
									551,279,968
Indiana: 1.16%
Gary IN Woodlake-Concord Project (Housing Revenue, FHA Insured) ±		1.00			10-1-2017		22,715,000		22,686,833
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		4,610,000		4,790,389
Indiana Finance Authority Refunding Industry Power and Light Company Series 2009C (Utilities Revenue)		4.90			1-1-2016		6,000,000		6,000,000
Indiana Finance Authority Refunding Industry Power and Light Company Series B (Utilities Revenue)		4.90			1-1-2016		9,500,000		9,500,000
Indiana Housing and Community Development Authority River Run Apartments Project (Housing Revenue, FHA Insured)		0.75			1-1-2017		4,900,000		4,898,040
Indiana Porter Township High School BAN (Miscellaneous Revenue)		1.00			12-31-2016		6,500,000		6,497,205
Indiana Transportation Finance Authority Series A (Miscellaneous Revenue)		6.80			12-1-2016		1,165,000		1,223,693
Mount Vernon IN Waterworks BAN (Water & Sewer Revenue)		1.00			7-1-2016		5,350,000		5,351,819
Rockport IN PCR Indiana-Michigan Power Company Series B (Utilities Revenue) ±		1.75			6-1-2025		2,000,000		2,006,840

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Indiana (continued)
Tender Option Bond Trust Receipts Floaters Series 2015-XF0115 (Utilities Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.35	%		4-15-2018	$	1,200,000	$	1,200,000
									64,154,819
Iowa: 0.21%
Iowa Finance Authority BAN Shenandoah Medical Center Project (Health Revenue)		1.75			6-1-2018		7,000,000		6,992,510
Randall IA Healthcare BAN Bethany Manor Incorporated (Health Revenue)		1.25			8-1-2016		4,500,000		4,500,540
									11,493,050
Kansas: 0.61%
Kansas Department of Transportation Highway Libor Index Series B-2 (Tax Revenue) ±		0.35			9-1-2016		10,000,000		9,999,900
Kansas Department of Transportation Highway Libor Index Series B-3 (Tax Revenue) ±		0.40			9-1-2017		4,500,000		4,486,185
Kansas Department of Transportation Highway Libor Index Series B-4 (Tax Revenue) ±		0.48			9-1-2018		7,000,000		6,963,320
Kansas Department of Transportation Highway Libor Index Series B-5 (Tax Revenue) ±		0.56			9-1-2019		6,000,000		5,957,940
Kansas Development Finance Authority Series A (GO Revenue)		5.00			5-1-2018		5,710,000		6,222,929
									33,630,274
Kentucky: 2.58%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		1.76			2-1-2040		30,700,000		30,732,235
Ashland KY Medical Center Ashland Hospital Corporation Series B (Health Revenue)		5.00			2-1-2018		900,000		951,930
Harrison KY Harrison Memorial Hospital Project BAN (Health Revenue)		1.50			5-1-2017		9,065,000		9,060,196
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		50,920,000		53,748,606
Louisville & Jefferson Counties KY Louisville Gas & Electric Company Project (Utilities Revenue) ±		1.65			10-1-2033		2,000,000		2,012,640
Louisville & Jefferson Counties KY PCR Louisville Gas & Electric Company Project Series B (Utilities Revenue) ±		1.35			11-1-2027		16,000,000		15,959,040
Louisville County KY Metropolitan District Sewer and Drainage System BAN (Water & Sewer Revenue)		5.00			11-22-2016		13,000,000		13,494,520
Pikeville KY University of Pikeville College of Optometry BAN (Education Revenue, USDA Insured)		3.00			8-1-2017		13,950,000		14,148,230
Somerset KY BAN (GO Revenue)		1.25			10-1-2016		3,000,000		3,000,060
									143,107,457
Louisiana: 1.40%
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.67			2-1-2046		24,510,000		24,376,175
Louisiana Gas & Fuel Tax 2nd Lien Series A (Tax Revenue) ±		0.64			5-1-2043		11,200,000		11,131,792
Louisiana Offshore Terminal Authority Deepwater Loop LLC Project Series B-1 (Airport Revenue) ±		2.20			10-1-2040		750,000		759,540
Louisiana Offshore Terminal Authority Deepwater Loop LLC Project Series B-1A1 (Airport Revenue) ±		1.38			10-1-2037		3,115,000		3,122,507
Shreveport LA Water & Sewer Refunding Revenue Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			12-1-2017		3,000,000		3,165,990

10 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Louisiana (continued)
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.40	%		11-1-2040	$	35,000,000	$	35,000,000
									77,556,004
Maine: 0.36%
Maine Finance Authority Solid Waste Disposable Management (Resource Recovery Revenue)		4.65			2-1-2016		4,000,000		4,012,680
Maine HEFA Series B (Health Revenue)		4.00			7-1-2016		525,000		534,487
Old Town ME Georgia Pacific Corporation Project (Resource Recovery Revenue) ø		0.34			12-1-2024		15,260,000		15,260,000
									19,807,167
Maryland: 1.45%
Maryland CDA Allendale Apartments Series I (Housing Revenue)		1.02			5-1-2017		10,000,000		9,982,900
Maryland CDA Bascilica Place Apartments Series 2015E (Housing Revenue)		1.10			3-1-2017		6,900,000		6,896,481
Maryland CDA Commons of Avalon Series 2015C (Housing Revenue)		1.00			1-1-2017		12,850,000		12,857,710
Maryland CDA Department of Housing & Community Development Marlborough Apartment Series I (Housing Revenue, FNMA Insured)		0.55			12-15-2016		2,050,000		2,047,950
Maryland CDA Department of Housing & Community Development Windsor Valley Apartments I &II Series G (Housing Revenue)		1.00			6-1-2017		16,500,000		16,492,575
Maryland CDA Hollins House (Housing Revenue)		1.27			11-1-2017		12,000,000		11,997,840
Maryland CDA Multifamily Development Conifer Village (Housing Revenue)		0.80			4-1-2017		13,000,000		12,996,880
Maryland CDA Tabco Towers Series K (Housing Revenue)		1.40			12-1-2017		7,150,000		7,150,930
									80,423,266
Massachusetts: 2.06%
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ±		0.21			8-1-2043		75,000,000		74,859,750
Massachusetts Development Finance Agency Boston University Series U-6E (Education Revenue) ±		0.56			10-1-2042		14,000,000		14,007,000
Massachusetts HEFA Partners Healthcare Series G-2 (Health Revenue, AGM Insured) ±(m)		0.29			7-1-2042		25,575,000		25,575,000
									114,441,750
Michigan: 4.78%
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2016		4,855,000		5,037,645
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2017		4,955,000		5,331,035
Charlotte MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		685,000		712,859
Charlotte MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,515,000		1,692,876
Clawson MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		2.00			5-1-2016		1,020,000		1,024,549
Detroit MI (GO Revenue)		5.00			11-1-2017		7,485,000		7,910,597
Forest Hills MI Public Schools (GO Revenue)		4.00			5-1-2016		2,600,000		2,630,576
Forest Hills MI Public Schools (GO Revenue)		4.00			5-1-2017		2,150,000		2,237,441
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			11-1-2016		425,000		432,837
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			11-1-2017		225,000		236,637
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			11-1-2018		220,000		235,829

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		5.00	%		11-1-2019	$	240,000	$	270,595
Grand Ledge MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2016		1,985,000		2,015,291
Grand Ledge MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,235,000		1,301,665
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2016		3,775,000		3,819,394
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		2,325,000		2,419,558
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		4,650,000		5,060,967
Mattawan MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2016		905,000		915,643
Mattawan MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		875,000		910,586
Mattawan MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		855,000		930,565
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series C (Water & Sewer Revenue)		5.00			11-1-2017		2,000,000		2,125,920
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2016		2,400,000		2,451,288
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2017		7,065,000		7,460,781
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-3 (Water & Sewer Revenue, National Insured)		5.00			7-1-2018		20,000,000		21,629,200
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-4 (Water & Sewer Revenue)		5.00			7-1-2016		13,535,000		13,815,310
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-4 (Water & Sewer Revenue)		5.00			7-1-2017		15,000,000		15,877,200
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-7 (Water & Sewer Revenue)		5.00			7-1-2017		1,630,000		1,721,052
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2017		10,000,000		10,544,800
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2018		17,500,000		18,925,550
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-6 (Water & Sewer Revenue)		5.00			7-1-2016		8,300,000		8,471,893
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-6 (Water & Sewer Revenue)		5.00			7-1-2018		4,130,000		4,478,076
Michigan Grant Anticipation Bonds (Miscellaneous Revenue, AGM Insured)		5.25			9-15-2018		1,500,000		1,608,930
Michigan Hospital Finance Authority Ascension Health Series A-3 (Health Revenue) ±		1.87			11-1-2027		7,025,000		7,134,590
Michigan Housing Development Authority The Summit Apartments Project (Housing Revenue)		0.45			5-1-2016		3,250,000		3,250,585
Michigan Housing Development Authority Village Manor Apartment Project (Housing Revenue)		0.45			6-1-2016		3,800,000		3,800,532
Michigan State Hospital Finance Authority Ascension Health Series F-3 (Health Revenue) ±		1.40			11-15-2047		9,250,000		9,290,978
Michigan State Hospital Finance Authority Refunding Ascension Health Senior Credit Group (Health Revenue) ±		1.50			11-15-2047		1,360,000		1,369,466
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		16,000,000		16,345,600

12 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Pinckney MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00	%		5-1-2017	$	645,000	$	670,419
Pinckney MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		1,035,000		1,123,389
Rochester MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2016		2,600,000		2,639,676
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2016		1,030,000		1,045,718
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,000,000		1,053,980
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		750,000		816,285
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,000,000		1,117,410
University of Michigan Series F (Education Revenue) ±		0.41			4-1-2043		48,970,000		48,970,000
Walled Lake MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2016		5,340,000		5,402,798
Walled Lake MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		6,020,000		6,552,048
									264,820,619
Minnesota: 0.90%
Edina MN MFHR Yorktown Continental LP Project (Housing Revenue)		0.50			6-1-2016		15,000,000		15,001,200
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.02			11-15-2017		6,500,000		6,435,000
Minneapolis MN Housing Broadway Flats Apartments Project (Housing Revenue)		0.55			12-1-2016		13,000,000		12,993,890
Minnesota Housing Finance Agency Multifamily Housing Project (Housing Revenue) ±		0.55			2-1-2017		13,500,000		13,489,875
Pipestone County MN Medical Center BAN (Health Revenue)		0.85			5-1-2017		1,900,000		1,899,715
									49,819,680
Mississippi: 0.87%
Mississippi Business Finance Corporation Coast Electric Power Association (Utilities Revenue) ±		0.40			5-1-2037		2,000,000		1,998,800
Mississippi Business Finance Corporation Gulf Power Company Project (Industrial Development Revenue) ±		0.12			11-1-2042		7,100,000		7,100,000
Mississippi Business Finance Corporation Mississippi Power Company Project (Industrial Development Revenue) ±		0.10			12-1-2027		9,400,000		9,400,000
Mississippi Business Finance Corporation Waste Management Incorporated Project (Resource Recovery Revenue) ±		1.38			3-1-2027		800,000		800,792
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.00			10-1-2016		535,000		548,332
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.50			10-1-2017		565,000		599,070
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.50			10-1-2018		595,000		646,759
Mississippi Development Bank Special Obligation Refunding Biloxi Mississippi Project Series A (Miscellaneous Revenue, Ambac Insured)		4.50			11-1-2018		1,810,000		1,862,345
Mississippi Hospital Equipment & Facilities Authority Baptist Memorial Health Series B2 (Health Revenue) ±		0.75			9-1-2018		1,710,000		1,710,034

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Mississippi (continued)
Mississippi Hospital Equipment & Facilities Authority Baptist Memorial Health Series B2 (Health Revenue) ±		0.75	%		9-1-2022	$	19,000,000	$	19,000,000
Mississippi Hospital Equipment & Facilities Authority Mississippi Baptist Health System Incorporated Series A (Health Revenue)		5.00			8-15-2018		4,110,000		4,348,421
									48,014,553
Missouri: 0.43%
Missouri HEFA Freeman Health System (Health Revenue)		5.00			2-15-2016		1,020,000		1,025,355
Springfield MO Public Utility Refunding (Utilities Revenue)		5.00			8-1-2016		6,660,000		6,841,285
Springfield MO Public Utility Refunding (Utilities Revenue)		5.00			8-1-2017		14,835,000		15,828,945
									23,695,585
Nebraska: 0.07%
Hall County NE Airport Authority BAN Series A (GO Revenue)		1.50			8-15-2016		3,745,000		3,744,363
Nevada: 0.02%
Clark County NV School District (GO Revenue)		5.00			6-15-2018		1,000,000		1,076,360
New Jersey: 5.20%
Beach Haven NJ BAN (GO Revenue)		2.00			5-13-2016		5,760,475		5,781,962
Borough of Bound Brook County NJ BAN (GO Revenue)		1.50			4-22-2016		4,700,000		4,707,426
East Orange NJ Capital Improvement Series A (GO Revenue, AGM Insured)		3.00			6-1-2017		1,420,000		1,456,593
East Orange NJ Capital Improvement Series A (GO Revenue, AGM Insured)		4.00			6-1-2018		650,000		689,722
Glassboro NJ School District Refunding (GO Revenue, National Insured)		4.00			8-15-2017		1,355,000		1,380,230
Hackensack NJ (GO Revenue)		1.50			11-9-2016		14,000,000		14,090,440
Hammonton NJ BAN (GO Revenue)		1.75			11-29-2016		2,741,851		2,766,500
Harmony Township NJ BAN (GO Revenue)		1.25			4-26-2016		5,182,887		5,189,521
Hawthorne NJ BAN (GO Revenue)		2.00			10-28-2016		7,526,600		7,601,264
Maple Shade Township NJ BAN (GO Revenue)		2.00			6-30-2016		10,397,240		10,450,058
New Jersey (GO Revenue)		5.00			6-1-2016		3,000,000		3,057,750
New Jersey Building Authority Series A (Miscellaneous Revenue)		5.00			6-15-2016		1,500,000		1,527,945
New Jersey Building Authority Series A (Miscellaneous Revenue)		5.00			6-15-2016		500,000		509,315
New Jersey Building Authority Series A (Miscellaneous Revenue)		5.00			6-15-2017		5,595,000		5,846,160
New Jersey Certificate of Participation Equipment Lease Purchase Series A (Miscellaneous Revenue)		5.00			6-15-2017		1,000,000		1,044,890
New Jersey EDA Refunding Transportation Project Sublease Series A (Transportation Revenue)		5.00			5-1-2018		5,170,000		5,467,068
New Jersey EDA School Facilities Construction Notes Series DD1 (Miscellaneous Revenue)		5.00			12-15-2018		2,220,000		2,371,892
New Jersey EDA School Facilities Construction Notes Series K (Miscellaneous Revenue) ±		0.74			2-1-2017		9,800,000		9,705,626
New Jersey EDA School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2016		1,245,000		1,297,913
New Jersey EDA School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2016		765,000		792,517
New Jersey EDA School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2017		7,785,000		8,397,757
New Jersey EDA School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2017		315,000		332,076
New Jersey EDA School Facilities Construction Series PP (Miscellaneous Revenue)		5.00			6-15-2019		12,710,000		13,670,113
New Jersey EDA School Facilities Construction Series XX (Miscellaneous Revenue)		5.00			6-15-2019		15,000,000		16,133,100
New Jersey EDA Transportation Project Series A (Transportation Revenue)		5.00			5-1-2017		11,175,000		11,643,903
New Jersey Educational Authority Higher Education Technology Infrastructure Fund (Education Revenue)		5.00			6-1-2016		1,840,000		1,871,482

14 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey HFA NCC Manor Project Series 2015K (Housing Revenue) ±		1.05	%		2-1-2018	$	20,500,000	$	20,475,195
New Jersey HFA Prospect Park Apartments Project Series 2015R (Housing Revenue) ±		0.88			10-1-2017		8,145,000		8,139,869
New Jersey Higher Education Assistance Authority Senior Series 1A (Education Revenue)		5.00			12-1-2017		1,740,000		1,851,482
New Jersey Higher Education Student Assitance Authority Series 1 (Education Revenue)		5.00			12-1-2016		2,950,000		3,056,820
New Jersey Higher Education Student Assitance Authority Series 1A (Education Revenue)		5.00			12-1-2017		2,000,000		2,125,720
New Jersey Housing and Mortgage Finance Agency Oakwood Towers Project Series U (Housing Revenue) ±		0.80			11-1-2017		3,000,000		2,989,500
New Jersey Housing and Mortgage Finance Agency Trent Center West Senior Apartments Project Series FF (Housing Revenue)		1.10			12-1-2017		6,000,000		5,995,680
New Jersey Transportation Program Series B (Miscellaneous Revenue, National Insured)		5.50			12-15-2016		4,625,000		4,814,301
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue)		5.00			12-15-2016		8,845,000		9,163,155
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue)		5.00			12-15-2019		4,405,000		4,768,501
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue, Ambac Insured)		5.75			6-15-2017		1,325,000		1,401,439
New Jersey Transportation Trust Fund Series AA (Miscellaneous Revenue)		5.00			6-15-2017		695,000		726,199
New Jersey Transportation Trust Fund Series AA (Miscellaneous Revenue)		5.00			6-15-2020		1,600,000		1,741,936
New Jersey Transportation Trust Fund Series B (Miscellaneous Revenue)		5.00			6-15-2017		3,135,000		3,275,730
New Jersey Transportation Trust Fund Series B (Miscellaneous Revenue, National Insured)		5.50			12-15-2017		2,505,000		2,685,736
New Jersey Transportation Trust Fund Series B-1 (Transportation Revenue)		5.00			12-15-2017		2,125,000		2,240,196
New Jersey Transportation Trust Fund Series B-2 (Transportation Revenue, Syncora Guarantee Incorporated Insured)		5.00			12-15-2016		14,515,000		15,051,039
New Jersey Turnpike Authority Series C (Transportation Revenue) ±		0.49			1-1-2017		11,000,000		10,980,090
Newark NJ Refunding General Improvement Series A (GO Revenue)		4.00			10-1-2016		3,710,000		3,772,143
Newark NJ TAN Series A (GO Revenue)		1.75			2-19-2016		19,500,000		19,507,215
Ocean County NJ TAN (GO Revenue)		1.50			1-15-2016		20,000,000		20,007,800
Sussex County NJ Municipal Utilities Authority BAN (Water & Sewer Revenue)		2.00			12-1-2016		6,000,000		6,070,320
									288,623,289
New Mexico: 0.73%
Bernalillo County NM Series B (Tax Revenue)		5.25			4-1-2016		215,000		217,627
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		0.91			11-1-2039		40,685,000		40,351,383
									40,569,010
New York: 14.88%
Babylon NY IDA Covanta Babylon Series A (Industrial Development Revenue)		5.00			1-1-2018		2,500,000		2,687,175
Chautauqua County NY Bemus Point Central School District BAN (GO Revenue)		2.00			6-29-2016		3,595,000		3,618,332
Chautauqua County NY Frewsburg Central School District BAN (GO Revenue)		2.00			6-21-2016		2,130,000		2,141,758
Chautauqua County NY Ripley Central School District BAN Series A (GO Revenue)		2.00			11-22-2016		1,605,500		1,620,849
Cold Spring NY BAN (GO Revenue)		1.25			5-13-2016		3,202,000		3,206,675
Hempstead NY Budget Notes (GO Revenue)		2.00			12-16-2016		13,400,000		13,524,218
Herkimer County NY Dolgeville Central School District BAN (GO Revenue)		1.50			6-22-2016		3,000,000		3,011,310
Lackawanna NY City School District BAN (GO Revenue)		1.00			3-4-2016		7,125,000		7,129,560
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		1.05			5-1-2033		10,000,000		10,010,300

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Metropolitan Transportation Authority New York BAN Series B-1 (Transportation Revenue)		0.25	%		8-1-2016	$	2,000,000	$	1,996,220
Metropolitan Transportation Authority New York Refunding Series 2008A-2A (Transportation Revenue) ±		0.39			11-1-2026		6,905,000		6,881,592
Metropolitan Transportation Authority New York Refunding Sub Series B-3A (Transportation Revenue) ±		0.38			11-1-2028		3,000,000		2,959,680
Metropolitan Transportation Authority New York Series 2012A-1 (Transportation Revenue) ±		0.28			11-15-2041		13,000,000		12,965,680
Metropolitan Transportation Authority New York Series A3 (Transportation Revenue) ±		0.51			11-15-2042		10,000,000		9,879,800
Metropolitan Transportation Authority New York Series D-2 (Transportation Revenue) ±		0.37			11-15-2044		6,100,000		6,055,714
Metropolitan Transportation Authority New York Sub Series 3-3B (Transportation Revenue) ±		0.37			11-1-2030		42,470,000		42,412,241
Metropolitan Transportation Authority New York Sub Series D-2A (Transportation Revenue, AGM Insured) ±		0.64			11-1-2032		36,650,000		36,651,466
Nassau County NY TAN Series A (GO Revenue)		2.00			9-15-2016		18,000,000		18,171,000
Nassau NY Health Care Corporation RAN (GO Revenue)		2.25			1-15-2016		8,500,000		8,504,080
New York Energy R&D Authority PCR Keyspan Generation Series A (Industrial Development Revenue, Ambac Insured) ±(m)		0.85			10-1-2028		2,025,000		2,025,000
New York Energy R&D Authority PCR Rochester Gas & Electric Corporation Series C (Industrial Development Revenue, National Insured) ±		5.00			8-1-2032		4,250,000		4,347,155
New York Environmental Facilities Waste Management Incorporated Project Series A (Resource Recovery Revenue)		2.75			7-1-2017		1,650,000		1,687,290
New York Local Government Assistance Corporation Refinance Sub Lien Series A-10V (Tax Revenue, AGM Insured) ±(m)(n)		0.47			4-1-2017		25,300,000		25,205,125
New York Local Government Refunding Series C (Tax Revenue)		5.50			4-1-2017		2,425,000		2,516,035
New York NY Adjusted Fiscal 2008 Sub Series A-3 (GO Revenue, AGM Insured) ±(m)		0.31			8-1-2026		4,700,000		4,700,000
New York NY Adjusted Fiscal 2008 Sub Series C4 (GO Revenue, AGC Insured) ±(m)		0.42			10-1-2027		55,800,000		55,800,000
New York NY Adjusted Fiscal 2008 Sub Series J7 (GO Revenue) ±		0.48			8-1-2021		8,325,000		8,325,583
New York NY Housing Development Corporation Series E-1A (Housing Revenue)		0.75			11-1-2016		1,920,000		1,920,307
New York NY IDAG Terminal One Group Association Project (Miscellaneous Revenue)		5.50			1-1-2016		1,525,000		1,525,000
New York NY Municipal Water Finance Authority Series AA-2 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.30			6-15-2032		2,500,000		2,500,000
New York NY Series A-6 (GO Revenue) ±		0.51			8-1-2031		39,950,000		39,800,587
New York NY Series J Sub Series J-2 (GO Revenue, AGM Insured) ±(m)		0.23			6-1-2036		25,050,000		25,050,000
New York NY Series J Sub Series J-3 (GO Revenue, AGM Insured) ±(m)		0.40			6-1-2036		27,750,000		27,750,000
New York NY Series J-8 (GO Revenue) ±		0.39			8-1-2021		19,350,000		19,350,000
New York NY Series J-9 (GO Revenue) ±		0.41			8-1-2027		38,000,000		37,948,700
New York NY Sub Series C-4 (GO Revenue, AGM Insured) ±(m)		0.32			1-1-2032		1,025,000		1,025,000
New York NY Sub Series J-4 (GO Revenue) ±		0.56			8-1-2025		10,865,000		10,865,326
New York NY Transitional Finance Authority NYC Recovery Series 3 (Tax Revenue, Dexia Credit Local SPA) ø		0.30			11-1-2022		23,375,000		23,375,000
New York NY Transitional Finance Authority Series 3 Sub Series 3C (Tax Revenue, Dexia Credit Local SPA) ø		0.30			11-1-2022		11,785,000		11,785,000
New York NY Transitional Finance Authority Sub Series 2E (Tax Revenue, Dexia Credit Local SPA) ø		0.30			11-1-2022		6,005,000		6,005,000
New York NY Transitional Finance Authority Sub Series A3 (Tax Revenue, Dexia Credit Local SPA) ø		0.24			8-1-2023		46,800,000		46,800,000
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		37,430,000		37,429,626

16 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Norwich NY BAN (GO Revenue)		1.25	%		3-24-2016	$	5,135,000	$	5,142,446
Norwood NY Central School District BAN (GO Revenue)		2.00			8-5-2016		2,000,000		2,012,820
Onondaga County NY Lafayette Central School District RAN (GO Revenue)		1.50			6-24-2016		2,600,000		2,609,880
Orange County NY Board of Cooperative Educational Services RAN (Miscellaneous Revenue)		1.50			7-28-2016		11,000,000		11,039,930
Oyster Bay NY BAN Series A (GO Revenue)		1.50			2-5-2016		50,465,000		50,508,905
Oyster Bay NY Public Improvement (GO Revenue)		3.00			8-15-2017		500,000		512,665
Oyster Bay NY Public Improvement Series A (GO Revenue, AGM Insured)		3.00			3-1-2016		1,995,000		2,003,519
Rockland County NY Public Improvement Series C (GO Revenue, AGM Insured)		3.00			5-1-2016		1,175,000		1,185,176
Rome NY City School District (GO Revenue)		3.00			6-15-2016		2,990,000		3,024,176
Saltaire NY RAN (GO Revenue)		2.00			10-21-2016		5,000,000		5,046,600
Sleepy Hollow NY BAN Series B (GO Revenue)		1.25			11-23-2016		5,315,000		5,323,504
Steuben County NY BAN (GO Revenue)		1.38			8-26-2016		3,750,000		3,753,338
Suffolk County NY Board of Cooperative Educational Services RAN (Miscellaneous Revenue)		1.50			6-30-2016		3,600,000		3,612,780
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		29,800,000		30,005,620
Suffolk County NY TAN Series I (GO Revenue)		1.50			9-30-2016		4,120,000		4,143,690
Suffolk County NY TAN Series I (GO Revenue)		2.00			9-30-2016		23,000,000		23,207,230
Suffolk County NY Tuckahoe Common School District TAN (GO Revenue)		1.50			6-30-2016		2,800,000		2,810,528
Syracuse NY RAN Series B (GO Revenue)		1.50			6-30-2016		18,800,000		18,879,336
Tompkins NY Board of Cooperative Educational Services RAN (Miscellaneous Revenue)		1.50			6-29-2016		24,800,000		24,890,520
Triborough Bridge & Tunnel Authority New York Refunding Bond General Sub Series B-4 (Transportation Revenue) ±		0.68			1-1-2029		4,500,000		4,518,810
Ulster County NY BAN (GO Revenue)		2.00			7-28-2016		3,325,036		3,347,546
Utica NY School District (GO Revenue)		2.00			7-22-2016		1,000,000		1,004,020
Utica NY School District (GO Revenue)		3.00			7-1-2016		960,000		969,264
Utica NY School District (GO Revenue)		3.00			7-1-2017		1,320,000		1,347,284
Westchester County NY Hudson Project (Health Revenue)		2.00			1-1-2016		450,000		450,000
Westchester County NY Hudson Project (Health Revenue)		3.00			1-1-2017		500,000		508,320
Wyoming County NY Letchworth Central School District BAN (GO Revenue)		1.50			6-17-2016		3,100,000		3,111,439
Yonkers NY Series A (GO Revenue)		4.00			7-1-2016		2,835,000		2,883,762
Yonkers NY Series B (GO Revenue)		3.00			7-1-2016		1,290,000		1,305,764
Yonkers NY Series C (GO Revenue)		4.00			8-15-2016		2,085,000		2,128,868
Yonkers NY Series D (GO Revenue)		2.00			8-1-2016		3,325,000		3,352,265
Yonkers NY Series D (GO Revenue)		3.00			8-15-2016		660,000		669,794
Yonkers NY Series D (GO Revenue)		3.00			8-1-2017		2,045,000		2,106,227
Yonkers NY Series D (GO Revenue)		4.00			8-1-2018		3,135,000		3,339,684
Yonkers NY Series E (GO Revenue)		3.25			9-1-2017		790,000		817,776
Yonkers NY Series E (GO Revenue)		4.00			9-1-2018		1,225,000		1,308,594
Yonkers NY Series F (GO Revenue)		2.00			9-1-2017		345,000		350,030
Yonkers NY Series F (GO Revenue)		3.00			9-1-2018		350,000		365,257
									824,760,751
North Carolina: 0.63%
Charlotte NC Housing Authority MFHR Boulevard Phase III Project (Housing Revenue) ±		0.75			8-1-2017		10,500,000		10,494,225
Greensboro NC Housing Authority Claremont Courts Project (Housing Revenue) ±		0.95			11-1-2017		4,800,000		4,797,216
Hertford County NC IDA Nucor Corporation Project (Industrial Development Revenue) ±		0.35			11-1-2033		5,000,000		5,000,000

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
North Carolina (continued)
Mecklenburg County NC Series A (Miscellaneous Revenue) ±		0.60	%		2-1-2028	$	2,465,000	$	2,464,827
North Carolina Capital Finance Republic Services Incorporated Project (Resource Recovery Revenue) ±		0.62			6-1-2038		12,000,000		12,000,000
									34,756,268
North Dakota: 0.16%
Burleigh County ND (Tax Revenue, AGM Insured)		5.00			11-1-2016		600,000		620,742
Dickinson ND Series A (Tax Revenue)		3.00			10-1-2017		1,100,000		1,134,749
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		3,000,000		2,997,360
Williston ND Series A (Tax Revenue, AGM Insured)		3.00			5-1-2016		375,000		377,985
Williston ND Series A (Tax Revenue, AGM Insured)		3.00			5-1-2017		3,875,000		3,973,231
									9,104,067
Ohio: 2.35%
Cleveland OH Airport System Series A (Airport Revenue, Ambac Insured)		5.25			1-1-2017		2,315,000		2,409,336
Cleveland OH Airport System Series C (Airport Revenue, AGC Insured)		5.00			1-1-2017		2,895,000		3,014,679
Cleveland OH Public Utilities Division of Water Series Z (Water & Sewer Revenue)		2.00			1-1-2016		825,000		825,000
Cleveland OH Series A (Airport Revenue, Ambac Insured)		5.00			1-1-2016		2,440,000		2,440,000
Crawford County OH Avita Health System Obligated Group Project (Health Revenue)		1.43			11-1-2017		10,000,000		9,976,400
Cuyahoga OH Metropolitan Housing Authority Bohn Tower Apartments Project (Housing Revenue)		0.70			3-1-2017		12,700,000		12,684,252
Franklin County OH Poindexter Phase IIA Project (Housing Revenue) ±		1.10			12-1-2018		3,000,000		2,997,840
Lancaster OH Port Authority (Utilities Revenue) ±		0.56			2-1-2017		3,895,000		3,888,885
Lancaster OH Port Authority (Utilities Revenue) ±		0.61			8-1-2017		3,240,000		3,233,941
Lancaster OH Port Authority (Utilities Revenue) ±		0.66			2-1-2018		7,225,000		7,181,000
Lancaster OH Port Authority (Utilities Revenue) ±		0.71			8-1-2018		4,000,000		3,970,960
Medina County OH Manor Apartments Project (Housing Revenue) ±		1.00			12-1-2017		3,000,000		2,999,910
Middletown OH School District TAN (GO Revenue)		1.75			5-3-2016		2,500,000		2,506,900
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2016		750,000		753,323
Ohio Air Quality Development Authority AMT Refunding Bond Pollution Control 1st Energy Series C (Industrial Development Revenue) ±		3.95			11-1-2032		450,000		464,886
Ohio Air Quality Development Authority FirstEnergy Generation Series 2009-A (Utilities Revenue)		5.70			8-1-2020		17,790,000		19,848,303
Ohio American Municipal Power Incorporated BAN ()		1.00			10-21-2016		4,500,000		4,505,130
Ohio HFA Coopermill Manor Project (Housing Revenue)		0.85			8-1-2017		15,850,000		15,818,459
Ohio HFA MFHR Walnut Court Senior Apartments (Housing Revenue)		0.50			8-1-2016		3,900,000		3,899,649
Ohio Higher Educational Facility John Carroll University Project (Education Revenue) ±		2.25			9-1-2033		1,790,000		1,821,164
Ohio Major New State Infrastructure Project Series 3 (Miscellaneous Revenue)		5.00			12-15-2016		1,960,000		2,042,790
Ohio University Hospitals Health Systems Series B (Health Revenue) ø		0.35			1-15-2033		12,720,000		12,720,000
Ohio Water Development Authority FirstEnergy Generation Corporation Series 2009-A (Water & Sewer Revenue) ±		5.88			6-1-2033		1,240,000		1,261,415
Ohio Water Development Authority Waste Management Project (Resource Recovery Revenue) ±		2.25			7-1-2021		1,250,000		1,260,975
Warren County OH Health Care Facilities Otterbein Homes Series A (Health Revenue)		4.00			7-1-2016		1,760,000		1,787,069
Warren County OH Health Care Facilities Otterbein Homes Series A (Health Revenue)		4.00			7-1-2017		4,375,000		4,550,569
Warrensville Heights OH BAN (GO Revenue)		2.13			8-11-2016		1,220,000		1,228,760
									130,091,595

18 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma: 0.49%
Cleveland County OK Detention Facilities Project (Tax Revenue)		3.00	%		3-1-2018	$	1,000,000	$	1,038,100
Cleveland County OK Detention Facilities Project (Tax Revenue)		3.00			3-1-2019		1,505,000		1,577,887
Cleveland County OK Educational Facilities Moore Public Schools Project (Miscellaneous Revenue)		5.00			6-1-2017		4,825,000		5,105,863
Comanche County OK Hospital Authority Refunding (Health Revenue)		5.00			7-1-2017		2,855,000		2,952,612
Oklahoma County OK Independent School District #52 Series B (GO Revenue)		2.00			3-1-2017		2,550,000		2,586,797
Oklahoma Housing Finance Agency Cherokee Terrace Apartments (Housing Revenue, GNMA Insured) ±		0.70			12-1-2017		5,000,000		4,991,850
Oklahoma School District Certificate of Participation (Miscellaneous Revenue)		0.80			6-30-2016		8,890,000		8,883,866
									27,136,975
Oregon: 0.38%
Oregon Facilities Authority Providence Health & Services Series C (Health Revenue) ±		0.89			10-1-2020		14,550,000		14,550,291
Oregon Housing Development Holiday Garden Apartments Series 2015D (Housing Revenue) ±		0.80			8-1-2018		6,400,000		6,393,984
									20,944,275
Pennsylvania: 3.58%
Allentown PA Hospital Authority Sacred Heart Hospital (Health Revenue)		6.00			11-15-2016		115,000		120,480
Beaver County PA IDA FirstEnergy Generation Series A (Miscellaneous Revenue) ±		2.20			1-1-2035		3,000,000		3,010,110
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		3,000,000		3,056,070
Bethlehem PA Area School District Authority (Miscellaneous Revenue) ±		0.60			1-1-2030		7,995,000		8,018,745
Chester County PA IDA University Student Housing Project Series C-1 (Housing Revenue)		0.65			2-1-2017		1,900,000		1,896,466
Clarion County PA IDA Clarion University Housing Project Series D (Housing Revenue)		3.00			7-1-2016		435,000		438,584
Clarion County PA IDA Clarion University Housing Project Series D (Housing Revenue)		3.00			7-1-2017		900,000		918,468
Clarion County PA IDA Student Housing (Housing Revenue)		1.05			5-1-2016		6,500,000		6,501,755
Downingtown PA School District (GO Revenue) ±		0.38			5-1-2030		6,000,000		5,999,160
Greater Latrobe PA School District (Miscellaneous Revenue)		3.00			10-1-2016		4,580,000		4,660,333
Lycoming County PA Authority Association of Independent Colleges & Universities of Pennsylvania Financing Program (Education Revenue) ±		3.00			11-1-2035		4,000,000		4,051,440
Montgomery County PA IDA ACTS Retirement Community Series B (Health Revenue)		5.00			11-15-2017		2,300,000		2,363,112
Montgomery County PA IDA Refunding Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.55			6-1-2029		12,910,000		12,979,714
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.51			11-1-2018		700,000		691,355
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.57			11-1-2019		1,000,000		981,610
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.66			11-1-2024		5,000,000		4,924,750
Northampton County PA General Purpose Hospital Authority St. Luke’s Hospital Project Series C (Health Revenue) ±		4.50			8-15-2032		2,500,000		2,549,625
Pennsylvania Department of General Services (Miscellaneous Revenue, AGM Insured)		4.00			5-1-2016		1,225,000		1,239,088
Pennsylvania EDFA Republic Services Incorporated Project Series A (Resource Recovery Revenue) ±		0.40			4-1-2019		5,800,000		5,800,000
Pennsylvania EDFA Waste Management Incorporated Project (Resource Recovery Revenue) ±		0.55			8-1-2045		13,500,000		13,500,000

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania HEFAR Associated Independent Colleges Series 13 (Education Revenue) ±		1.20	%		11-1-2031	$	225,000	$	224,496
Pennsylvania HEFAR Association of Independent Colleges and Universities of Pennsylvania Financing Program Mount Aloysius College Project Series R1 (Education Revenue) ±		0.85			11-1-2041		1,140,000		1,139,795
Pennsylvania HEFAR Slippery Rock University Foundation Series A (Education Revenue, Syncora Guarantee Incorporated Insured)		5.00			7-1-2016		1,760,000		1,764,646
Pennsylvania Higher Education Facilities Authority Independent Colleges Series I4 (Education Revenue) ±		1.50			11-1-2031		5,800,000		5,813,282
Pennsylvania Series 2 (GO Revenue)		5.00			4-15-2017		1,250,000		1,318,200
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		0.56			12-1-2016		6,825,000		6,833,054
Pennsylvania Turnpike Commission Series B-1 (Transportation Revenue) ±		0.31			12-1-2016		15,050,000		15,052,559
Pennsylvania Turnpike Commission Series B-2 (Transportation Revenue) ±		0.31			12-1-2016		34,950,000		34,955,942
Philadelphia PA IDA One Benjamin Franklin Series C (Miscellaneous Revenue, AGM Insured)		5.00			2-15-2016		1,000,000		1,005,530
Philadelphia PA IDA Refunding 1st Series 2016 (Education Revenue) %%		5.00			4-1-2016		755,000		763,230
Philadelphia PA School District (GO Revenue)		3.00			9-1-2016		1,450,000		1,472,736
Philadelphia PA School District Series B (GO Revenue)		5.00			9-1-2016		3,500,000		3,601,360
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2016		4,360,000		4,486,266
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2017		4,750,000		5,044,120
Tunkhannock PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		2.00			7-15-2016		1,240,000		1,249,077
University Area Joint Authority Pennsylvania Refunding Bond (Water & Sewer Revenue) ±		0.41			11-1-2028		3,300,000		3,293,004
Upper Darby PA School District (GO Revenue)		3.00			5-1-2017		500,000		513,260
Upper Darby PA School District (GO Revenue)		4.00			5-1-2018		700,000		743,575
Warwick PA School District (GO Revenue)		3.00			2-15-2017		1,000,000		1,025,100
Warwick PA School District (GO Revenue)		4.00			2-15-2018		1,250,000		1,326,438
Warwick PA School District (GO Revenue)		4.00			2-15-2019		1,025,000		1,110,301
Washington County PA Hospital Authority Series A (Health Revenue, PNC Bank NA LOC) ±		0.50			7-1-2037		3,400,000		3,399,320
Washington County PA Hospital Authority Series B (Health Revenue, PNC Bank NA LOC) ±		0.50			7-1-2031		3,340,000		3,339,332
Washington County PA Washington Hospital Project (Health Revenue)		4.00			7-1-2016		1,080,000		1,094,591
Washington County PA Washington Hospital Project (Health Revenue)		4.00			7-1-2017		1,085,000		1,121,315
Westmoreland County PA IDA Excela Health Project (Health Revenue)		4.00			7-1-2017		1,650,000		1,699,022
Westmoreland County PA IDA Excela Health Project (Health Revenue)		5.00			7-1-2018		1,650,000		1,760,121
York County PA Refunding Bond (GO Revenue) ±		0.47			6-1-2033		9,730,000		9,689,523
									198,540,060
Puerto Rico: 0.28%
Puerto Rico Electric Power Authority Series L (Utilities Revenue, National Insured)		5.50			7-1-2016		2,000,000		2,024,440
Puerto Rico Electric Power Authority Series SS (Utilities Revenue, National Insured)		5.00			7-1-2016		725,000		726,117
Puerto Rico Electric Power Authority Series TT (Utilities Revenue, AGM Insured)		5.00			7-1-2017		550,000		566,264
Puerto Rico Highway & Transportation Authority Series E (Transportation Revenue, AGM Insured)		5.50			7-1-2017		575,000		596,189
Puerto Rico Municipal Finance Agency Series C (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2016		4,935,000		4,951,779
Puerto Rico Public Improvement Series A (GO Revenue, AGC Insured)		5.00			7-1-2017		250,000		257,393
Puerto Rico Series A (GO Revenue, AGC Insured)		5.00			7-1-2016		6,065,000		6,164,830
									15,287,012

20 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Rhode Island: 0.35%
Providence RI Redevelopment Agency Public Safety Building Project Series A (Miscellaneous Revenue)		4.00	%		4-1-2018	$	3,025,000	$	3,182,028
Rhode Island Health & Education Building Finance Corporation (Health Revenue, AGM Insured)		5.00			5-15-2017		7,370,000		7,478,855
Rhode Island Health & Educational Building Refunding Bond Providence Financing Program (Education Revenue, AGM Insured)		3.00			5-15-2017		1,815,000		1,861,863
Rhode Island Health & Educational Building Refunding Bond Providence Financing Program (Education Revenue, AGM Insured)		3.00			5-15-2018		1,535,000		1,593,775
Rhode Island Housing and Mortgage Finance Corporation Series 66-B (Housing Revenue) ±		0.71			10-1-2045		4,400,000		4,394,324
Rhode Island Student Loan Authority AMT Program Senior Series A (Education Revenue)		5.00			12-1-2019		750,000		833,835
									19,344,680
South Carolina: 0.29%
Berkeley County SC IDA Nucor Corporation Project (Industrial Development Revenue) ø		0.33			3-1-2029		5,000,000		5,000,000
Berkeley County SC IDA Nucor Corporation Project (Industrial Development Revenue) ø		0.33			4-1-2031		2,000,000		2,000,000
Berkeley County SC IDA Nucor Corporation Project (Industrial Development Revenue) ø		0.42			4-1-2030		5,000,000		5,000,000
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		3.00			4-1-2016		700,000		702,982
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		3.00			4-1-2017		600,000		609,150
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		3.00			4-1-2018		500,000		505,100
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		4.00			4-1-2019		500,000		522,460
Woodruff SC BAN (Water & Sewer Revenue)		1.05			4-1-2017		2,045,000		2,044,755
									16,384,447
Tennessee: 0.53%
Clarksville TN Natural Gas Acquisition Corporation (Utilities Revenue)		5.00			12-15-2016		2,740,000		2,849,847
Knoxville TN Industrial Development Board Collateralized Housing Golden Age Retirement Village Project (Housing Revenue, GNMA Insured)		0.85			12-1-2017		5,900,000		5,889,970
Metropolitan Government Nashville & Davidson Counties TN Health & Education Facilities Meharry Medical College (Health Revenue, Ambac Insured)		6.00			12-1-2016		560,000		571,883
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.00			9-1-2016		4,315,000		4,435,820
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		1,430,000		1,526,239
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2016		6,630,000		6,653,338
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2017		6,925,000		7,214,188
									29,141,285
Texas: 10.87%
Alamito TX Public Facilities Corporation HACEP RAD Conversion Program (Housing Revenue) ±		1.00			10-1-2018		3,000,000		2,990,010
Clear Creek TX Independent School District (GO Revenue) ±		3.00			2-15-2035		4,200,000		4,329,486
Dallas TX Housing Finance Corporation Fountain Rosemeade Apartments (Housing Revenue)		0.60			10-1-2016		4,875,000		4,870,710
Dallas TX Independent High School District (GO Revenue) ±		1.50			2-15-2034		4,000,000		4,034,800
Deutsche Bank SPEAR/LIFER Trust Series DB-327 (Tax Revenue, Ambac Insured, Deutsche Bank LIQ) 144Aø		0.21			9-1-2033		10,500,000		10,500,000
Deutsche Bank SPEAR/LIFER Trust Series DBE 1149 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.21			8-15-2043		4,985,000		4,985,000

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Fort Bend TX Independent School District Various School Building Series A (GO Revenue) ±		0.66	%		8-1-2040	$	9,855,000	$	9,850,565
Galveston TX Dickinson Independent High School District (GO Revenue) ±		1.05			8-1-2037		4,000,000		4,000,200
Galveston TX Hotel Occupancy Series B (Tax Revenue, AGM Insured)		4.00			9-1-2016		420,000		428,845
Harris County TX (Transportation Revenue) ±		0.65			8-15-2021		3,500,000		3,500,700
Harris County TX Cypress-Fairbanks Independent High School Series 2014B-2 (GO Revenue) ±		3.00			2-15-2040		960,000		990,269
Harris County TX Cypress-Fairbanks Independent High School Series 2014B-3 (GO Revenue) ±		1.05			2-15-2044		12,000,000		12,000,120
Harris County TX Houston Independent School District Series B (GO Revenue) ±		0.95			6-1-2035		9,150,000		9,140,759
Houston TX Hotel Occupancy Prerefunded Series B (Tax Revenue)		5.00			9-1-2018		1,735,000		1,787,501
Houston TX Hotel Occupancy Unrefunded Series B (Tax Revenue)		5.00			9-1-2018		285,000		292,963
Houston TX Independent School District Limited Tax School House Series A-1 (GO Revenue) ±		3.00			6-1-2039		83,250,000		84,121,628
Lamar TX Consolidated Independent School District Schoolhouse Series A (GO Revenue) ±		2.00			8-15-2047		38,220,000		38,527,289
Midland County TX PFFA Compass Pointe Apartments (Housing Revenue)		1.25			3-1-2018		7,000,000		6,995,380
Mission TX Economic Development Corporation Republic Services Incorporated Project (Resource Recovery Revenue) ±		0.60			1-1-2026		9,000,000		9,000,000
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		26,355,000		26,879,201
Northside TX Independent School District Building Project (GO Revenue) ±		2.13			8-1-2040		1,960,000		1,961,196
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			8-1-2044		2,610,000		2,662,826
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		28,340,000		28,905,100
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Industrial Development Revenue) ø		0.27			4-1-2040		10,000,000		10,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Industrial Development Revenue) ±		0.27			11-1-2040		30,600,000		30,600,000
Port Arthur TX Navigation District Motiva Enterprises LLC Series B (Resource Recovery Revenue) ø		0.26			12-1-2039		20,300,000		20,300,000
Richardson TX Independent School District Series A (GO Revenue)		5.00			2-15-2017		3,835,000		4,024,449
Round Rock TX Independent School District (GO Revenue) ±		1.50			8-1-2040		35,000,000		35,208,250
San Antonio TX Electric & Gas Refunding System Junior Lien Series A (Utilities Revenue) ±		0.29			2-1-2033		53,000,000		52,958,660
San Antonio TX Housing Trust Finance Corporation MFHR Masters Ranch Apartments Project (Housing Revenue)		0.50			9-1-2016		15,500,000		15,500,310
San Antonio TX Junior Lien No Reserve Fund Series F (Water & Sewer Revenue) ±		0.69			5-1-2043		12,320,000		12,319,877
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		2.00			11-15-2016		400,000		402,108
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		3.00			11-15-2017		485,000		496,271
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		4.00			11-15-2018		500,000		527,340
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		4.00			11-15-2019		510,000		541,156
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		3.00			11-15-2017		500,000		512,085
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		4.00			11-15-2018		500,000		528,200
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		4.00			11-15-2019		710,000		755,000
Tarrant County TX Cultural Education Facilities Finance Corporation Hendrick Medical Center (Health Revenue)		4.00			9-1-2017		550,000		573,491

22 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.26	%		11-15-2029	$	16,000,000	$	16,000,000
Texas Affordable Housing Corporation Woodside Village Project (Housing Revenue) ±		1.00			12-1-2018		5,750,000		5,747,068
Texas Department of Housing and Community Affairs Good Samaritan Towers (Housing Revenue)		0.95			9-1-2017		5,620,000		5,612,525
Texas Municipal Gas Acquisition & Supply Corporation II Gas Supply Revenue Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.48			9-15-2017		43,265,000		43,265,000
Texas Municipal Gas Acquisition & Supply Corporation II Series A (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.04			9-15-2017		16,480,000		16,482,966
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2016		2,500,000		2,600,225
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series B (Utilities Revenue) ±		0.89			12-15-2017		2,975,000		2,967,087
Texas Public Finance Authority Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2016		2,080,000		2,147,226
Texas Public Finance Authority Unemployment Compensation Series B (Miscellaneous Revenue)		4.00			7-1-2017		11,500,000		11,892,035
Texas Public Finance Authority Unemployment Compensation Series B (Miscellaneous Revenue)		4.00			7-1-2018		6,000,000		6,000,000
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Tax Revenue) ±		0.36			4-1-2032		24,000,000		24,001,920
Texas Turnpike Authority Central Texas Turnpike System Prerefunded Capital Appreciation 1st Tier Series A (Transportation Revenue, Ambac Insured) ¤		0.00			8-15-2016		4,755,000		4,737,454
Texas Turnpike Authority Central Texas Turnpike System Unrefunded Balance Capital Appreciation 1st Tier Series A (Transportation Revenue, Ambac Insured) ¤		0.00			8-15-2016		340,000		338,664
Williamson County TX (GO Revenue) ±		1.45			8-15-2034		2,500,000		2,513,100
									602,307,015
Vermont: 0.04%
Burlington VT Airport Refunding Series 2012B (Airport Revenue)		3.50			7-1-2018		2,290,000		2,315,167
Virgin Islands: 0.16%
Virgin Islands PFA Senior Lien Matching Fund Loan Series A (Miscellaneous Revenue)		4.00			10-1-2016		1,700,000		1,735,343
Virgin Islands PFA Senior Lien Matching Fund Loan Series B (Miscellaneous Revenue)		5.00			10-1-2017		6,950,000		7,358,452
									9,093,795
Virginia: 0.84%
Chesapeake VA EDA Electric and Power Company Series 2008A (Utilities Revenue) ±		1.75			2-1-2032		30,000,000		30,250,800
Fredericksburg VA EDA Mary Washington Healthcare Group Series A (Health Revenue) ±		1.91			8-1-2038		4,265,000		4,299,163
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2016		1,000,000		1,020,940
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2017		1,250,000		1,325,363
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2018		1,500,000		1,641,330
Louisa VA IDA Virginia Electric & Power Company Series C (Utilities Revenue) ±		0.70			11-1-2035		6,400,000		6,402,176
Virginia Housing Development Authority Series B (Housing Revenue)		2.25			9-1-2017		500,000		510,135
Virginia Small Business Financing Authority Hampton University (Education Revenue)		3.00			10-1-2016		955,000		970,414
									46,420,321

Portfolio of investments—December 31, 2015 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Washington: 0.30%
Grant County WA Public Utility District #2 Series K (Utilities Revenue) ±		0.33	%		1-1-2044	$	4,000,000	$	3,980,720
Kent WA (GO Revenue)		3.00			12-1-2016		500,000		509,545
Washington HCFR Series XF2035 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.36			10-1-2036		7,655,000		7,655,000
Washington Housing Finance Commission Market Street Apartments Project Series A (Housing Revenue)		0.55			6-1-2016		4,750,000		4,750,713
									16,895,978
West Virginia: 0.31%
Mason County WV PCR Appalachian Power Company Series L (Industrial Development Revenue) ±		1.63			10-1-2022		17,000,000		16,981,470
Wisconsin: 0.50%
Ellsworth WI Community School District Notes Anticipation Notes (Miscellaneous Revenue)		2.00			4-1-2016		630,000		630,756
Milwaukee County WI Series A (Airport Revenue)		5.00			12-1-2016		345,000		358,286
Milwaukee County WI Series B (Airport Revenue)		4.00			12-1-2016		385,000		396,315
Milwaukee County WI Series B (Airport Revenue)		4.00			12-1-2017		385,000		405,309
Tender Option Bond Trust Receipts Floaters Series 2015-XF0127 (Health Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.21			10-1-2020		4,875,000		4,875,000
Waukesha WI Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		0.95			12-1-2042		3,800,000		3,800,000
Waukesha WI Note Anticipation Notes Series C (Miscellaneous Revenue)		2.00			7-1-2016		11,280,000		11,320,157
Wisconsin HEFA Aspirus Incorporate Obligation Group Series A (Health Revenue)		3.00			8-15-2016		420,000		425,485
Wisconsin HEFA Aurora Health Care Series B-1 (Health Revenue) ±		1.25			8-15-2025		3,440,000		3,444,988
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		2.00			12-1-2016		1,455,000		1,469,434
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		3.00			12-1-2017		200,000		206,792
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		3.00			12-1-2018		500,000		521,975
									27,854,497
Wyoming: 0.57%
Sweetwater County WY PCR Refunding PacifiCorp Project Series A (Industrial Development Revenue) ø		0.22			1-1-2017		31,500,000		31,500,000
Total Municipal Obligations (Cost $5,207,633,106)									5,208,676,597
Other: 2.24%
Eaton Vance Massachusetts Municipal Bond Fund, Institutional MuniFund Term Preferred Shares ±144A		1.01			7-1-2019		6,475,000		6,483,482
Eaton Vance Municipal Bond Fund 2, Institutional MuniFund Term Preferred Shares ±144A		1.06			7-1-2019		9,950,000		9,963,035
Eaton Vance Pennsylvania Municipal Bond Fund, Institutional MuniFund Term Preferred Shares ±144A		1.01			7-1-2019		6,000,000		6,007,860
Nuveen Dividend Advantage Municipal Fund 3, Institutional MuniFund Term Preferred Shares ±144A		0.76			10-1-2017		59,000,000		59,267,860
Nuveen New York AMT-Free Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A§		0.63			10-1-2017		17,000,000		17,038,930
Nuveen Texas Quality Income Municipal Fund, Institutional MuniFund Term Preferred Shares ±144A		1.01			11-1-2018		25,000,000		25,064,000
Total Other (Cost $123,399,828)									123,825,167

24 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2015 (unaudited)

Security name	Yield			Shares		Value
Short-Term Investments: 3.00%
Investment Companies: 3.00%
Wells Fargo National Tax-Free Money Market Fund, Institutional Class (l)(u)##		0.01	%		166,476,461	$	166,476,461
Total Short-Term Investments (Cost $166,476,461)							166,476,461

Total investments in securities (Cost $5,510,365,783) *	99.45	%		5,511,554,975
Other assets and liabilities, net	0.55			30,580,738
Total net assets	100.00	%	$	5,542,135,713

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

(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.

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.

(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.

%% 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.

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

§ The security is subject to a demand feature which reduces the effective maturity.

(l) The issuer of the security is an affiliated person 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.

* Cost for federal income tax purposes is $5,510,359,910 and unrealized gains (losses) consists of:

Gross unrealized gains	$	10,214,966
Gross unrealized losses		(9,019,901	)
Net unrealized gains	$	1,195,065

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Not applicable.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:
	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date: February 25, 2016

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: February 25, 2016
By:
	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date: February 25, 2016
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date: February 25, 2016