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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09253

Wells Fargo Funds Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: May 31

Registrant is making a filing for 28 of its series:

Wells Fargo Growth Balanced Fund, Wells Fargo Moderate Balanced Fund, Wells Fargo Dynamic Target Today Fund, Wells Fargo Dynamic Target 2015 Fund, Wells Fargo Dynamic Target 2020 Fund, Wells Fargo Dynamic Target 2025 Fund, Wells Fargo Dynamic Target 2030 Fund, Wells Fargo Dynamic Target 2035 Fund, Wells Fargo Dynamic Target 2040 Fund, Wells Fargo Dynamic Target 2045 Fund, Wells Fargo Dynamic Target 2050 Fund, Wells Fargo Dynamic Target 2055 Fund, Wells Fargo Dynamic Target 2060 Fund, Wells Fargo C&B Large Cap Value Fund, Wells Fargo Diversified Equity Fund, Wells Fargo Emerging Growth Fund, Wells Fargo Index Fund, Wells Fargo International Value Fund, Wells Fargo Small Company Growth Fund, Wells Fargo Small Company Value Fund, Wells Fargo Core Bond Fund, Wells Fargo Real Return Fund, Wells Fargo WealthBuilder Conservative Allocation Portfolio, Wells Fargo WealthBuilder Moderate Balanced Portfolio, Wells Fargo WealthBuilder Growth Balanced Portfolio, Wells Fargo WealthBuilder Growth Allocation Portfolio, Wells Fargo WealthBuilder Equity Portfolio, and Wells Fargo WealthBuilder Tactical Equity Portfolio.

Date of reporting period: May 31, 2016

ITEM 1. REPORT TO STOCKHOLDERS

Annual Report

May 31, 2016

Allocation Funds

n Wells Fargo Growth Balanced Fund

n Wells Fargo Moderate Balanced Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	15
Portfolio of investments
Wells Fargo Growth Balanced Fund	16
Wells Fargo Moderate Balanced Fund	17
Financial statements
Statements of assets and liabilities	18
Statements of operations	19
Statements of changes in net assets	20
Financial highlights	22
Notes to financial statements	26
Report of independent registered public accounting firm	35
Master portfolios
Portfolio of investments
Wells Fargo C&B Large Cap Value Portfolio	36
Wells Fargo Diversified Large Cap Growth Portfolio	39
Wells Fargo Emerging Growth Portfolio	44
Wells Fargo Index Portfolio (Summary portfolio of investments)*	48

Wells Fargo International Growth Portfolio	55
Wells Fargo International Value Portfolio	59
Wells Fargo Large Company Value Portfolio	67
Wells Fargo Small Company Growth Portfolio	72
Wells Fargo Small Company Value Portfolio	78
Wells Fargo Core Bond Portfolio (Summary portfolio of investments)**	83
Wells Fargo Managed Fixed Income Portfolio	89
Wells Fargo Real Return Bond Portfolio	101
Wells Fargo Stable Income Portfolio	110
Financial statements
Statements of assets and liabilities	118
Statements of operations	122
Statements of changes in net assets	126
Financial highlights	139
Notes to financial statements	141
Report of independent registered public accounting firm	156
Other information	157
List of abbreviations	166

* 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/index-ann.pdf or by calling Wells Fargo Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSR, is also available on the SEC’s website at sec.gov.

** 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/core-bond-ann.pdf or by calling Wells Fargo Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSR, is also available on the SEC’s website at sec.gov.

The views expressed and any forward-looking statements are as of May 31, 2016, 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 Allocation Funds Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

During much of the period, global equity, bond, and currency markets were volatile as recessionary pressures and diverging central bank policies concerned investors.

During the fourth quarter of 2015, Japan’s economy contracted, China’s manufacturing sector retrenched, and growth appeared to slow in Europe.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Allocation Funds for the 12-month period that ended May 31, 2016. During much of the period, global equity, bond, and currency markets were volatile as recessionary pressures and diverging central bank policies concerned investors. As the period closed, investor confidence appeared to improve based on favorable economic data in key markets and central bank monetary policies that were intended to support increased business activity.

Shifting investor sentiment reflected changing economic and business data.

Early in the period, oil prices declined after a spring rally, negotiations about Greece’s ability to repay its sovereign debt grew contentious, and the U.S. dollar strengthened. By July 2015, equity markets were declining, led by stocks in China, which endured the largest one-day loss since 2007 on July 27, 2015.

The S&P 500 Index,¹ a common measure of U.S. stock performance, fell into correction territory—defined as a loss of 10% or more—during August 2015 before recovering somewhat. The index retested the August lows in late September before recovering most of its year-to-date-2015 losses from October through December. As anticipated, the U.S. Federal Reserve (Fed) increased the federal funds rate in December and suggested it planned to pursue additional increases in 2016. During the first six weeks of 2016, the index suffered the worst loss to open a year on record before trending higher. By the end of the 12-month reporting period, the index recorded a 1.72% gain.

Overseas, the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net)² and the MSCI Emerging Markets (EM) Index (Net)³ recorded negative returns. In August 2015, China allowed its currency’s value to decline in an attempt to bolster exports. The U.S. dollar strengthened, which negatively affected investment returns and U.S. corporate profits earned overseas. During the fourth quarter of 2015, Japan’s economy contracted, China’s manufacturing sector retrenched, and growth appeared to slow in Europe.

Global equity markets hit low points before starting to rebound in the middle of February 2016 when business data improved and central bankers reasserted their commitment to initiatives intended to encourage economic activity. The European Central Bank (ECB) pushed the deposit interest rate further into negative territory. The Bank of Japan (BOJ) followed the ECB’s lead by setting a negative deposit rate. Negative deposit interest rates are intended to encourage banks to lend assets rather than keep them on deposit. The People’s Bank of China (PBOC) reduced reserve ratios, which also was intended to encourage lending. The ECB expanded its bond-buying program, which injects liquidity into the markets and encourages investment.

For the 12-month reporting period, the MSCI ACWI ex USA Index (Net) and MSCI EM Index (Net) recorded returns of -11.39% and -17.63%, respectively.

¹  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.

²  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

³  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

Letter to shareholders (unaudited) Wells Fargo Allocation Funds 3

A December federal funds rate increase marked divergence of central bank policies.

Bond markets were volatile as well. The Fed’s decision to tighten credit conditions through higher interest rates contrasted with actions by the ECB, the PBOC, and the BOJ. In January 2016, amid falling stock markets, U.S. corporate profits declined for the second consecutive quarter. The Fed expressed hesitancy about additional credit tightening in the near term, which investors appeared to read as accommodative of business activity. Overall, policy actions of central banks and intermittently positive economic data heartened investors as the period drew to a close.

Bond markets benefited during the period, with the Barclays Global Aggregate ex U.S. Dollar Bond Index⁴ gaining 7.25%, the Barclays U.S. Aggregate Bond Index⁵ gaining 2.99%, and the Barclays U.S. Treasury Index⁶ adding 3.01% during the period.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo 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 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

British Exit from European Union (“Brexit”)

On June 23, 2016, the United Kingdom (UK) voted to leave the European Union (EU). It is expected that the UK’s exit from the EU will take place within two years after giving formal notice to the EU of its intention to withdraw; however, the exact timeframe is unknown. There is considerable uncertainty about how the UK exit from the EU will be conducted, how negotiations of necessary treaties and trade agreements will proceed or how the financial markets will react. In addition, it is not yet known whether Brexit will increase the likelihood of other countries seeking to depart the EU. Immediately following the vote, markets in the UK, Europe and the world were negatively impacted. In light of the uncertainties surrounding the impact of Brexit on the broader global economy, the negative impact could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on Europe for their business activities and revenues. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

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  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.

⁵  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, mortgage-based securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁶  The Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index.

4 Wells Fargo Allocation Funds Performance highlights (unaudited)

Wells Fargo Growth Balanced Fund¹

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Subadvisers for the affiliated master portfolios

Artisan Partners Limited Partnership

Cooke & Bieler, L.P.

Galliard Capital Management, Inc.

Golden Capital Management, LLC

LSV Asset Management

Peregrine Capital Management, Inc.

Phocas Financial Corporation

Wells Capital Management Incorporated

Portfolio managers

Kandarp Acharya, CFA^®, FRM

Thomas C. Biwer, CFA^®

Aldo Ceccarelli, CFA^®

Christian Chan, CFA^®

Erik Sens, CFA^®

Average annual total returns (%) as of May 31, 2016

		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 (WFGBX)	10-14-1998		(6.82	)		6.09		4.72		(1.14	)		7.36		5.34		1.35		1.20
Class B (NVGRX)*	10-1-1998		(6.87	)		6.23		4.78		(1.87	)		6.55		4.78		2.10		1.95
Class C (WFGWX)	10-1-1998		(2.88	)		6.55		4.55		(1.88	)		6.55		4.55		2.10		1.95
Administrator Class (NVGBX)	11-11-1994		–			–		–		(0.86	)		7.62		5.60		1.27		0.95
Growth Balanced Composite Index4	–		–			–		–		0.45			7.68		6.33		–		–
Barclays U.S. Aggregate Bond Index5	–		–			–		–		2.99			3.33		4.97		–		–
MSCI EAFE Index (Net)6	–		–			–		–		(9.68	)		2.12		1.92		–		–
Russell 1000® Growth Index7	–		–			–		–		1.61			12.11		8.78		–		–
Russell 1000® Value Index8	–		–			–		–		(0.06	)		10.70		6.11		–		–
Russell 2000® Index9	–		–			–		–		(5.97	)		7.86		6.27		–		–
S&P 500 Index10	–		–			–		–		1.72			11.67		7.41		–		–

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

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect 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 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 shares are sold without a front-end sales charge or contingent deferred sales charge.

Please see footnotes on page 6.

Performance highlights (unaudited) Wells Fargo Allocation Funds 5

Wells Fargo Growth Balanced Fund (continued)

Growth of $10,000 investment as of May 31, 2016¹¹

Balanced funds may invest in stocks and bonds. 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. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk, mortgage- and asset-backed securities risk, and smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 6.

6 Wells Fargo Allocation Funds Performance highlights (unaudited)

Wells Fargo Growth Balanced Fund (continued)

¹  The Fund is a gateway blended fund that invests all of its assets in two or more affiliated master portfolios of Wells Fargo Master Trust in varying proportions. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolios in which it invests.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.51% in net expenses from affiliated master portfolios. 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 September 30, 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 expense cap. Net expenses from the affiliated master portfolios are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  Source: Wells Fargo Funds Management, LLC. The Growth Balanced Composite Index is weighted 35% in the Barclays U.S. Aggregate Bond Index, 9.75% in the MSCI EAFE Index (Net), 16.25% in the Russell 1000^® Growth Index, 16.25% in the Russell 1000^® Value Index, 6.50% in the Russell 2000^® Index and 16.25% in the S&P 500 Index. You cannot invest directly in an index.

⁵  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁶  The Morgan Stanley Capital International (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. Source: MSCI. MSCI makes no 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. You cannot invest directly in an index.

⁷  The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁸  The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

⁹  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

¹⁰  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.

¹¹  The chart compares the performance of Class A shares for the most recent ten years with the Growth Balanced Composite Index, the Barclays U.S. Aggregate Bond Index, the MSCI EAFE Index (Net), the Russell 1000^® Growth Index, the Russell 1000^® Value Index, the Russell 2000^® Index, and the S&P 500 Index. The chart assumes a hypothetical $10,000 investment in Class A and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

¹²  The 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 markets, excluding the U.S. and Canada. You cannot invest directly in an index.

¹³  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹⁴  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities of the affiliated master portfolios allocable to the Fund divided by the total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

¹⁵  Current target allocation includes the effect of any tactical futures overlay that may be in place. These amounts are subject to change and may have changed since the date specified.

Performance highlights (unaudited) Wells Fargo Allocation Funds 7

Wells Fargo Growth Balanced Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Growth Balanced Composite Index for the 12-month period that ended May 31, 2016.

n Two equity market corrections, defined as a loss of 10% or more, during the 12-month period proved to be a challenging environment for the underlying managers. The Fund’s equity investments overall underperformed their benchmarks. The two market corrections served to discourage equity investors and stock prices suffered as a result. While rallies subsequent to each correction benefited stock prices, overall equity prices in global markets, particularly outside of the U.S., suffered.

n Tactical asset allocation added to performance through the period. During market corrections in August 2015 and January 2016, the portfolio management team tactically shifted the portfolio’s allocation during periods of depressed equity prices, which added value.

n The Fund’s bond investments added value on an absolute basis but underperformed relative to the benchmark.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections during the previous 12 months. Amid fears of contagion from international markets, investors sold U.S. equities heavily during August 2015 and January 2016. In August, the contraction was fueled by fears of collapsing growth in China. In January, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive down international demand for U.S. goods. Despite the headwinds, the S&P 500 Index ended the 12-month period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investments.

U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index⁵ rose 2.99%, outperforming large-cap stocks. Small-cap stocks, as measured by the Russell 2000^® Index⁹ returned -5.97%. International stocks returned -11.39%, as measured by the MSCI All Country World Index (ACWI) ex USA Index (Net).¹² Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets (EM) Index (Net).¹³

Please see footnotes on page 6.

8 Wells Fargo Allocation Funds Performance highlights (unaudited)

Wells Fargo Growth Balanced Fund (continued)

Ten largest holdings (%) as of May 31, 201614
Facebook Incorporated Class A	1.04
Apple Incorporated	1.02
Amazon.com Incorporated	0.98
Alphabet Incorporated Class A	0.92
Exxon Mobil Corporation	0.81
JPMorgan Chase & Company	0.67
Medtronic plc	0.66
Alphabet Incorporated Class C	0.65
Visa Incorporated Class A	0.65
Microsoft Corporation	0.62

The Fund seeks to enhance returns by using a combination of inputs from multiple quantitative and qualitative factors in order to alter the effective allocation between stocks and bonds.

The Fund’s neutral allocation is 60% stocks and 40% bonds. During the period, the portfolio management team took tactical advantage of equity price movements. Through our overlays, we tactically increased equity exposures through the first correction in August 2015, increasing equity holdings as Chinese and U.S. markets declined. As the market correction reversed in the following months, the overlay added value to the Fund’s performance. Again in January and February 2016, we saw a similar correction and used our overlays to overweight equities. Through effective execution of our hedging strategy, the team again added to the Fund’s returns.

Current target allocation as of May 31, 2016¹⁵

Neutral target allocation

We remain cautiously optimistic about the longer-term outlook for stocks.

Bond yields continue to be depressed. The potential for future interest-rate hikes may be a headwind to overall increases in output in the general U.S. economy. Especially with yields at historical lows, there continues to be a duration risk in bonds.

Internationally, the accommodative policies of the ECB and BOJ are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed, international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Please see footnotes on page 6.

This page is intentionally left blank.

10 Wells Fargo Allocation Funds Performance highlights (unaudited)

Wells Fargo Moderate Balanced Fund¹

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Subadvisers for the affiliated master portfolios

Artisan Partners Limited Partnership

Cooke & Bieler, L.P.

Galliard Capital Management, Inc.

Golden Capital Management, LLC

LSV Asset Management

Peregrine Capital Management, Inc.

Phocas Financial Corporation

Wells Capital Management Incorporated

Portfolio managers

Kandarp Acharya, CFA^®, FRM

Thomas C. Biwer, CFA^®

Aldo Ceccarelli, CFA^®

Christian Chan, CFA^®

Erik Sens, CFA^®

Average annual total returns (%) as of May 31, 2016

		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 (WFMAX)	1-30-2004		(5.43	)		4.55		4.29		0.34			5.80		4.91		1.32		1.15
Class B (WMOBX)*	1-30-2004		(5.43	)		4.67		4.35		(0.43	)		5.00		4.35		2.07		1.90
Class C (WFBCX)	1-30-2004		(1.44	)		4.99		4.12		(0.44	)		4.99		4.12		2.07		1.90
Administrator Class (NVMBX)	11-11-1994		–			–		–		0.59			6.05		5.16		1.24		0.90
Moderate Balanced Composite Index4	–		–			–		–		1.14			5.61		5.44		–		–
Barclays U.S. Aggregate Bond Index5	–		–			–		–		2.99			3.33		4.97		–		–
Barclays U.S. Short Treasury 9–12 Months Index6	–		–			–		–		0.41			0.29		1.65		–		–
MSCI EAFE Index (Net)7	–		–			–		–		(9.68	)		2.12		1.92		–		–
Russell 1000® Growth Index8	–		–			–		–		1.61			12.11		8.78		–		–
Russell 1000® Value Index9	–		–			–		–		(0.06	)		10.70		6.11		–		–
Russell 2000® Index10	–		–			–		–		(5.97	)		7.86		6.27		–		–
S&P 500 Index11	–		–			–		–		1.72			11.67		7.41		–		–

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

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect 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 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 shares are sold without a front-end sales charge or contingent deferred sales charge.

Please see footnotes on page 12.

Performance highlights (unaudited) Wells Fargo Allocation Funds 11

Wells Fargo Moderate Balanced Fund (continued)

Growth of $10,000 investment as of May 31, 2016¹²

Balanced funds may invest in stocks and bonds. 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. 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 mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 12.

12 Wells Fargo Allocation Funds Performance highlights (unaudited)

Wells Fargo Moderate Balanced Fund (continued)

¹  The Fund is a gateway blended fund that invests all of its assets in two or more affiliated master portfolios of Wells Fargo Master Trust in varying proportions. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolios in which it invests.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.47% in net expenses from affiliated master portfolios. 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 September 30, 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 expense cap. Net expenses from the affiliated master portfolios are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  Source: Wells Fargo Funds Management, LLC. The Moderate Balanced Composite Index is weighted 45% in the Barclays U.S. Aggregate Bond Index, 15% in the Barclays U.S. Short Treasury 9-12 Months Index, 6% in the MSCI EAFE Index (Net), 10% in the Russell 1000^® Growth Index, 10% in the Russell 1000^® Value Index, 4% in the Russell 2000^® Index and 10% in the S&P 500 Index. You cannot invest directly in an index.

⁵  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁶  The Barclays U.S. Short Treasury 9–12 Months Index is an unmanaged index that includes aged U.S. Treasury bills, notes, and bonds with a remaining maturity from 9 up to (but not including) 12 months. It excludes zero-coupon STRIPS. You cannot invest directly in an index.

⁷  The Morgan Stanley Capital International (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. Source: MSCI. MSCI makes no 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. You cannot invest directly in an index.

⁸  The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁹  The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

¹⁰  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

¹¹  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.

¹²  The chart compares the performance of Class A shares for the most recent ten years with the Moderate Balanced Composite Index, the Barclays U.S. Aggregate Bond Index, Barclays U.S. Short Treasury 9–12 Months Index, the MSCI EAFE Index (Net), the Russell 1000^® Growth Index, the Russell 1000^® Value Index, the Russell 2000^® Index, and the S&P 500 Index. The chart assumes a hypothetical $10,000 investment in Class A and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

¹³  The 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 markets, excluding the U.S. and Canada. You cannot invest directly in an index.

¹⁴  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹⁵  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities of the affiliated master portfolios allocable to the Fund divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

¹⁶  Current target allocation includes the effect of any tactical futures overlay that may be in place. The amounts are subject to change and may have changed since the date specified.

Performance highlights (unaudited) Wells Fargo Allocation Funds 13

Wells Fargo Moderate Balanced Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Moderate Balanced Composite Index for the 12-month period that ended May 31, 2016.

n Two equity market corrections, defined as a loss of 10% or more, during the 12-month period proved to be a challenging environment for the underlying managers. The Fund’s equity investments overall underperformed their benchmarks. The two market corrections served to discourage equity investors and stock prices suffered as a result. While rallies subsequent to each correction benefited stock prices, overall equity prices in global markets, particularly outside of the U.S., suffered.

n Tactical asset allocation added to performance through the period. During market corrections in August 2015 and January 2016, the portfolio management team tactically shifted the portfolio allocation during periods of depressed equity prices, which added value.

n The Fund’s bond investments added value on an absolute basis but underperformed relative to the benchmark.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections during the previous 12 months. Amid fears of contagion from international markets, investors sold U.S. equities heavily during August 2015 and January 2016. In August, the contraction was fueled by fears of collapsing growth in China. In January, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive down international demand for U.S. goods. Despite the potential headwinds, the S&P 500 Index ended the period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investments.

U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index,⁵ rose 2.99%, outperforming large-cap stocks. Small-cap stocks, as measured by the Russell 2000^® Index,¹⁰ returned -5.97%. International stocks returned -11.39%, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net).¹³ Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets (EM) Index (Net).¹⁴

Please see footnotes on page 12.

14 Wells Fargo Allocation Funds Performance highlights (unaudited)

Wells Fargo Moderate Balanced Fund (continued)

Ten largest holdings (%) as of May 31, 201615
FHLMC Structured Pass-Through Securities Series T-58 Class 4A, 7.50%, 9-25-2043	0.69
U.S. Treasury Note, 0.88%, 7-15-2017	0.68
U.S. Treasury Note, 0.63%, 9-30-2017	0.65
Facebook Incorporated Class A	0.64
Apple Incorporated	0.63
Amazon.com Incorporated	0.61
Alphabet Incorporated Class A	0.57
FNMA Series 2002-W4 Class A4, 6.25%, 5-25-2042	0.55
U.S Treasury Bond, 2.50%, 2-15-2046	0.53
Exxon Mobil Corporation	0.50

The Fund seeks to enhance returns by using a combination of inputs from multiple quantitative and qualitative factors to alter allocations among stocks and bonds.

The Fund’s neutral allocation is 40% stocks and 60% bonds. During the period, the portfolio management team took tactical advantage of equity price movements. Through our overlays, we tactically increased equity exposures through the first correction in August 2015, increasing equity holdings as Chinese and U.S. markets declined. As the market correction reversed in the following months, the overlay added value to the Fund’s performance. Again in January and February 2016, we saw a similar correction and used our overlays to overweight equities. Through effective execution of our hedging strategy, the team again added to the Fund’s returns.

Current target allocation as of May 31, 2016¹⁶

Neutral target allocation

We remain cautiously optimistic about the longer-term outlook for stocks.

Bond yields continued to be depressed. The potential for future interest-rate hikes may be a headwind to overall increases in output in the general U.S. economy. With yields at historical lows, there continues to be a duration risk in bonds.

Internationally, the accommodative policies of the ECB and BOJ are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed, international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Please see footnotes on page 12.

Fund expenses (unaudited) Wells Fargo Allocation Funds 15

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 December 1, 2015 to May 31, 2016.

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.

Wells Fargo Growth Balanced Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,004.12	$	6.01		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.06		1.20	%
Class B
Actual	$	1,000.00	$	1,000.56	$	9.75		1.95	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.25	$	9.82		1.95	%
Class C
Actual	$	1,000.00	$	1,000.28	$	9.75		1.95	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.25	$	9.82		1.95	%
Administrator Class
Actual	$	1,000.00	$	1,005.73	$	4.76		0.95	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.25	$	4.80		0.95	%
Wells Fargo Moderate Balanced Fund
Class A
Actual	$	1,000.00	$	1,012.38	$	5.79		1.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.25	$	5.81		1.15	%
Class B
Actual	$	1,000.00	$	1,008.36	$	9.54		1.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.50	$	9.57		1.90	%
Class C
Actual	$	1,000.00	$	1,008.20	$	9.54		1.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.50	$	9.57		1.90	%
Administrator Class
Actual	$	1,000.00	$	1,013.62	$	4.53		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.50	$	4.55		0.90	%

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

16 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

GROWTH BALANCED FUND

Security name								Value
Investment Companies: 100.00%
Affiliated Master Portfolios: 100.00%
Wells Fargo C&B Large Cap Value Portfolio								$	14,011,685
Wells Fargo Core Bond Portfolio									17,956,255
Wells Fargo Diversified Large Cap Growth Portfolio									42,013,810
Wells Fargo Emerging Growth Portfolio									4,242,640
Wells Fargo Index Portfolio									42,084,098
Wells Fargo International Growth Portfolio									12,434,299
Wells Fargo International Value Portfolio									12,598,838
Wells Fargo Large Company Value Portfolio									28,095,347
Wells Fargo Managed Fixed Income Portfolio									62,870,419
Wells Fargo Real Return Portfolio									8,949,465
Wells Fargo Small Company Growth Portfolio									4,251,967
Wells Fargo Small Company Value Portfolio									8,469,960
Total Investment Companies (Cost $231,910,236)									257,978,783
	Yield			Maturity date		Principal
Short-Term Investments: 0.06%
U.S. Treasury Securities: 0.06%
U.S. Treasury Bill #(z)		0.13	%		6-9-2016	$	137,000		136,995
Total Short-Term Investments (Cost $136,995)									136,995

Total investments in securities (Cost $232,047,231) *	100.06	%		258,115,778
Other assets and liabilities, net	(0.06	)		(142,466	)
Total net assets	100.00	%	$	257,973,312

# 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 $233,050,542 and unrealized gains (losses) consists of:

Gross unrealized gains	$	25,065,236
Gross unrealized losses		0
Net unrealized gains	$	25,065,236

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 17

MODERATE BALANCED FUND

Security name								Value
Investment Companies: 99.49%
Affiliated Master Portfolios: 99.49%
Wells Fargo C&B Large Cap Value Portfolio								$	6,861,334
Wells Fargo Core Bond Portfolio									18,251,208
Wells Fargo Diversified Large Cap Growth Portfolio									20,733,107
Wells Fargo Emerging Growth Portfolio									2,120,752
Wells Fargo Index Portfolio									20,661,580
Wells Fargo International Growth Portfolio									6,168,946
Wells Fargo International Value Portfolio									6,191,994
Wells Fargo Large Company Value Portfolio									13,788,426
Wells Fargo Managed Fixed Income Portfolio									63,883,311
Wells Fargo Real Return Portfolio									9,126,974
Wells Fargo Small Company Growth Portfolio									2,118,666
Wells Fargo Small Company Value Portfolio									4,210,419
Wells Fargo Stable Income Portfolio									30,392,418
Total Investment Companies (Cost $193,283,811)									204,509,135
	Yield			Maturity date		Principal
Short-Term Investments: 0.05%
U.S. Treasury Securities: 0.05%
U.S. Treasury Bill #(z)		0.13	%		6-9-2016	$	106,000		105,997
Total Short-Term Investments (Cost $105,997)									105,997

Total investments in securities (Cost $193,389,808) *	99.54	%		204,615,132
Other assets and liabilities, net	0.46			946,936
Total net assets	100.00	%	$	205,562,068

# 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 $192,582,891 and unrealized gains (losses) consists of:

Gross unrealized gains	$	12,032,241
Gross unrealized losses		0
Net unrealized gains	$	12,032,241

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

18 Wells Fargo Allocation Funds Statements of assets and liabilities—May 31, 2016

	Growth Balanced Fund			Moderate Balanced Fund
Assets
Investments
In affiliated Master Portfolios, at value (see cost below)	$	257,978,783		$	204,509,135
In unaffiliated securities, at value (see cost below)		136,995			105,997
Total investments, at value (see cost below)		258,115,778			204,615,132
Receivable for Fund shares sold		211,129			1,088,582
Receivable for daily variation margin on open futures contracts		1,500			1,156
Receivable from manager		0			842
Prepaid expenses and other assets		26,060			22,415
Total assets		258,354,467			205,728,127
Liabilities
Payable for Fund shares redeemed		251,258			78,673
Management fee payable		6,567			0
Distribution fees payable		10,314			7,888
Administration fees payable		33,645			25,500
Shareholder report expenses payable		17,226			8,475
Shareholder servicing fees payable		54,132			42,836
Accrued expenses and other liabilities		8,013			2,687
Total liabilities		381,155			166,059
Total net assets	$	257,973,312		$	205,562,068
NET ASSETS CONSIST OF
Paid-in capital		368,576,793			192,014,976
Undistributed net investment income		2,724,712			1,036,706
Accumulated net realized gains (losses) on investments		(139,366,465	)		1,308,399
Net unrealized gains on investments		26,038,272			11,201,987
Total net assets	$	257,973,312		$	205,562,068
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	65,865,889		$	35,993,111
Shares outstanding – Class A1		1,646,970			1,599,121
Net asset value per share – Class A		$39.99			$22.51
Maximum offering price per share – Class A2		$42.43			$23.88
Net assets – Class B	$	167,317		$	152,707
Shares outstanding – Class B1		4,686			6,694
Net asset value per share – Class B		$35.71			$22.81
Net assets – Class C	$	16,224,626		$	12,501,071
Shares outstanding – Class C1		465,894			566,882
Net asset value per share – Class C		$34.82			$22.05
Net assets – Administrator Class	$	175,715,480		$	156,915,179
Shares outstanding – Administrator Class1		4,911,362			6,912,881
Net asset value per share – Administrator Class		$35.78			$22.70
Investments in affiliated Master Portfolios, at cost	$	231,910,236		$	193,283,811
Investments in unaffiliated securities, at cost	$	136,995		$	105,997
Total investments, at cost	$	232,047,231		$	193,389,808

¹ Each 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.

Statements of operations—year ended May 31, 2016 Wells Fargo Allocation Funds 19

	Growth Balanced Fund			Moderate Balanced Fund
Investment income
Dividends allocated from affiliated Master Portfolios*	$	2,990,116		$	1,379,958
Interest allocated from affiliated Master Portfolios		2,715,088			2,990,498
Affiliated income allocated from affiliated Master Portfolios		34,109			21,886
Securities lending income allocated from affiliated Master Portfolios		80,288			39,609
Interest		665			491
Expenses allocated from affiliated Master Portfolios		(1,426,946	)		(1,018,450	)
Waivers allocated from affiliated Master Portfolios		126,528			150,388
Total investment income		4,519,848			3,564,380
Expenses
Management fee		758,796			556,747
Administration fees
Class A		135,701			55,075
Class B		391			350
Class C		32,432			18,954
Administrator Class		222,030			192,134
Shareholder servicing fees
Class A		158,374			64,542
Class B		458			407
Class C		37,900			22,265
Administrator Class		435,599			376,742
Distribution fees
Class B		1,373			1,221
Class C		113,699			66,794
Custody and accounting fees		10,964			8,573
Professional fees		29,495			31,120
Registration fees		61,099			52,410
Shareholder report expenses		65,408			41,974
Trustees’ fees and expenses		15,157			16,701
Other fees and expenses		10,365			10,869
Total expenses		2,089,241			1,516,878
Less: Fee waivers and/or expense reimbursements		(675,001	)		(559,469	)
Net expenses		1,414,240			957,409
Net investment income		3,105,608			2,606,971
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Securities transactions allocated from affiliated Master Portfolios		4,345,913			2,055,479
Unaffiliated securities		88			66
Futures transactions		1,283,075			975,301
Net realized gains on investments		5,629,076			3,030,846
Net change in unrealized gains (losses) on:
Securities transactions allocated from affiliated Master Portfolios		(11,494,357	)		(4,328,549	)
Unaffiliated securities		(73	)		(53	)
Futures transactions		102,220			68,811
Net change in unrealized gains (losses) on investments		(11,392,210	)		(4,259,791	)
Net realized and unrealized gains (losses) on investments		(5,763,134	)		(1,228,945	)
Net increase (decrease) in net assets resulting from operations	$	(2,657,526	)	$	1,378,026
* Net of foreign dividend withholding taxes allocated from affiliated Master Portfolios in the amount of		$79,298			$38,325

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

20 Wells Fargo Allocation Funds Statements of changes in net assets

	Growth Balanced Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	3,105,608					$	2,789,281
Net realized gains on investments					5,629,076						15,701,271
Net change in unrealized gains (losses) on investments					(11,392,210	)					1,114,605
Net increase (decrease) in net assets resulting from operations					(2,657,526	)					19,605,157
Distributions to shareholders from
Net investment income
Class A					(542,593	)					(268,805	)
Class C					(61,467	)					(29,178	)
Administrator Class					(2,115,400	)					(1,028,262	)
Total distributions to shareholders					(2,719,460	)					(1,326,245	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		302,429			11,925,156			185,450			7,274,394
Class B		6,666			229,343			1,558			53,483
Class C		129,397			4,455,113			72,213			2,489,920
Administrator Class		668,947			23,470,005			635,039			22,455,940
					40,079,617						32,273,737
Reinvestment of distributions
Class A		13,763			533,044			6,633			261,859
Class C		1,662			56,244			788			27,266
Administrator Class		60,923			2,108,567			28,932			1,022,158
					2,697,855						1,311,283
Payment for shares redeemed
Class A		(243,456	)		(9,569,788	)		(227,744	)		(8,991,283	)
Class B		(6,490	)		(227,822	)		(11,057	)		(384,245	)
Class C		(67,904	)		(2,314,573	)		(49,378	)		(1,697,172	)
Administrator Class		(809,000	)		(28,424,055	)		(826,937	)		(29,006,446	)
					(40,536,238	)					(40,079,146	)
Net increase (decrease) in net assets resulting from capital share transactions					2,241,234						(6,494,126	)
Total increase (decrease) in net assets					(3,135,752	)					11,784,786
Net assets
Beginning of period					261,109,064						249,324,278
End of period				$	257,973,312					$	261,109,064
Undistributed net investment income				$	2,724,712					$	2,484,235

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

Statements of changes in net assets Wells Fargo Allocation Funds 21

	Moderate Balanced Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	2,606,971					$	2,299,319
Net realized gains on investments					3,030,846						7,901,060
Net change in unrealized gains (losses) on investments					(4,259,791	)					(22,765	)
Net increase in net assets resulting from operations					1,378,026						10,177,614
Distributions to shareholders from
Net investment income
Class A					(297,818	)					(376,425	)
Class B					(182	)					0
Class C					(67,037	)					(52,862	)
Administrator Class					(2,056,183	)					(3,267,946	)
Net realized gains
Class A					(935,192	)					(415,324	)
Class B					(5,343	)					(4,805	)
Class C					(325,466	)					(111,625	)
Administrator Class					(5,453,616	)					(3,128,190	)
Total distributions to shareholders					(9,140,837	)					(7,357,177	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,014,195			22,691,852			255,117			5,957,581
Class B		5,573			125,768			1,624			38,050
Class C		408,018			8,992,522			97,255			2,232,984
Administrator Class		1,214,117			27,655,326			731,005			17,208,011
					59,465,468						25,436,626
Reinvestment of distributions
Class A		53,460			1,186,272			32,909			762,939
Class B		203			4,571			156			3,620
Class C		15,738			342,627			6,451			147,103
Administrator Class		327,107			7,317,656			270,522			6,320,119
					8,851,126						7,233,781
Payment for shares redeemed
Class A		(350,307	)		(7,888,089	)		(189,830	)		(4,466,077	)
Class B		(7,820	)		(179,801	)		(9,450	)		(221,598	)
Class C		(117,584	)		(2,583,589	)		(39,148	)		(899,068	)
Administrator Class		(1,089,111	)		(24,830,085	)		(709,375	)		(16,680,708	)
					(35,481,564	)					(22,267,451	)
Net increase in net assets resulting from capital share transactions					32,835,030						10,402,956
Total increase in net assets					25,072,219						13,223,393
Net assets
Beginning of period					180,489,849						167,266,456
End of period				$	205,562,068					$	180,489,849
Undistributed net investment income				$	1,036,706					$	915,734

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

22 Wells Fargo Allocation Funds Financial highlights

Growth Balanced Fund	Beginning net asset value per share		Net investment income			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 2016	$	40.80		0.46			(0.94	)		(0.33	)	$	39.99
Year ended May 31, 2015	$	37.96		0.36			2.65			(0.17	)	$	40.80
Year ended May 31, 2014	$	33.35		0.35			4.60			(0.34	)	$	37.96
Year ended May 31, 2013	$	27.77		0.32			5.70			(0.44	)	$	33.35
Year ended May 31, 2012	$	29.34		0.39	4		(1.73	)		(0.23	)	$	27.77
Class B
Year ended May 31, 2016	$	36.39		0.13	4		(0.81	)		0.00		$	35.71
Year ended May 31, 2015	$	33.97		0.06	4		2.36			0.00		$	36.39
Year ended May 31, 2014	$	29.84		0.08	4		4.10			(0.05	)	$	33.97
Year ended May 31, 2013	$	24.80		0.12	4		5.05			(0.13	)	$	29.84
Year ended May 31, 2012	$	26.17		0.15	4		(1.52	)		0.00		$	24.80
Class C
Year ended May 31, 2016	$	35.63		0.12	4		(0.79	)		(0.14	)	$	34.82
Year ended May 31, 2015	$	33.33		0.08	4		2.30			(0.08	)	$	35.63
Year ended May 31, 2014	$	29.38		0.10	4		4.00			(0.15	)	$	33.33
Year ended May 31, 2013	$	24.52		0.13	4		4.98			(0.25	)	$	29.38
Year ended May 31, 2012	$	25.94		0.16	4		(1.53	)		(0.05	)	$	24.52
Administrator Class
Year ended May 31, 2016	$	36.54		0.49			(0.82	)		(0.43	)	$	35.78
Year ended May 31, 2015	$	33.98		0.45			2.32			(0.21	)	$	36.54
Year ended May 31, 2014	$	29.89		0.41	4		4.10			(0.42	)	$	33.98
Year ended May 31, 2013	$	24.93		0.65	4		4.82			(0.51	)	$	29.89
Year ended May 31, 2012	$	26.39		0.41	4		(1.57	)		(0.30	)	$	24.93

¹  Ratios include net expenses allocated from the affiliated Master Portfolios which were as follows:

	Year ended May 31
	2016			2015			2014			2013			2012
Class A		0.51	%		0.51	%		0.51	%		0.50	%		0.49	%
Class B		0.50			0.51			0.51			0.50			0.49
Class C		0.50			0.51			0.51			0.50			0.49
Administrator Class		0.50			0.51			0.51			0.50			0.49

² Total return calculations do not include any sales charges.

³ Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective affiliated Master Portfolio by the corresponding affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Allocation Funds 23

Ratio to average net assets (annualized)												Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1			Total return2
	1.10	%		1.35	%		1.20	%		(1.14	)%		79	%	$	65,866
	0.97	%		1.40	%		1.20	%		7.94	%		75	%	$	64,223
	1.05	%		1.39	%		1.20	%		14.87	%		77	%	$	61,117
	1.23	%		1.39	%		1.20	%		21.85	%		80	%	$	55,777
	1.40	%		1.36	%		1.20	%		(4.53	)%		107	%	$	49,403
	0.36	%		2.09	%		1.95	%		(1.87	)%		79	%	$	167
	0.18	%		2.14	%		1.95	%		7.12	%		75	%	$	164
	0.25	%		2.14	%		1.95	%		14.00	%		77	%	$	476
	0.45	%		2.12	%		1.95	%		20.91	%		80	%	$	970
	0.61	%		2.10	%		1.95	%		(5.23	)%		107	%	$	1,704
	0.36	%		2.10	%		1.95	%		(1.88	)%		79	%	$	16,225
	0.22	%		2.15	%		1.95	%		7.13	%		75	%	$	14,349
	0.31	%		2.14	%		1.95	%		13.99	%		77	%	$	12,637
	0.48	%		2.14	%		1.95	%		20.97	%		80	%	$	9,326
	0.65	%		2.11	%		1.95	%		(5.26	)%		107	%	$	7,656
	1.35	%		1.27	%		0.95	%		(0.86	)%		79	%	$	175,715
	1.22	%		1.24	%		0.95	%		8.16	%		75	%	$	182,373
	1.29	%		1.23	%		0.95	%		15.16	%		77	%	$	175,094
	1.47	%		1.22	%		0.95	%		22.18	%		80	%	$	175,142
	1.64	%		1.20	%		0.95	%		(4.30	)%		107	%	$	220,021

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

24 Wells Fargo Allocation Funds Financial highlights

Moderate Balanced Fund	Beginning net asset value per share		Net investment income			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	23.57		0.28	4		(0.23	)		(0.26	)		(0.85	)	$	22.51
Year ended May 31, 2015	$	23.19		0.32			1.01			(0.44	)		(0.51	)	$	23.57
Year ended May 31, 2014	$	21.21		0.29	4		1.82			(0.13	)		0.00		$	23.19
Year ended May 31, 2013	$	18.84		0.21			2.50			(0.34	)		0.00		$	21.21
Year ended May 31, 2012	$	19.64		0.32			(0.54	)		(0.58	)		0.00		$	18.84
Class B
Year ended May 31, 2016	$	23.81		0.11	4		(0.23	)		(0.03	)		(0.85	)	$	22.81
Year ended May 31, 2015	$	23.16		0.09	4		1.07			0.00			(0.51	)	$	23.81
Year ended May 31, 2014	$	21.25		0.11	4		1.83			(0.03	)		0.00		$	23.16
Year ended May 31, 2013	$	18.86		0.13	4		2.43			(0.17	)		0.00		$	21.25
Year ended May 31, 2012	$	19.58		0.18	4		(0.53	)		(0.37	)		0.00		$	18.86
Class C
Year ended May 31, 2016	$	23.18		0.11	4		(0.23	)		(0.16	)		(0.85	)	$	22.05
Year ended May 31, 2015	$	22.79		0.09	4		1.04			(0.23	)		(0.51	)	$	23.18
Year ended May 31, 2014	$	20.96		0.12	4		1.80			(0.09	)		0.00		$	22.79
Year ended May 31, 2013	$	18.63		0.11			2.42			(0.20	)		0.00		$	20.96
Year ended May 31, 2012	$	19.45		0.18	4		(0.53	)		(0.47	)		0.00		$	18.63
Administrator Class
Year ended May 31, 2016	$	23.75		0.32			(0.21	)		(0.31	)		(0.85	)	$	22.70
Year ended May 31, 2015	$	23.38		0.33	4		1.07			(0.52	)		(0.51	)	$	23.75
Year ended May 31, 2014	$	21.36		0.38			1.79			(0.15	)		0.00		$	23.38
Year ended May 31, 2013	$	18.96		0.41			2.38			(0.39	)		0.00		$	21.36
Year ended May 31, 2012	$	19.77		0.40			(0.58	)		(0.63	)		0.00		$	18.96

¹  Ratios include net expenses allocated from the affiliated Master Portfolios which were as follows:

	Year ended May 31
	2016			2015			2014			2013			2012
Class A		0.47	%		0.47	%		0.46	%		0.46	%		0.45	%
Class B		0.46			0.47			0.46			0.46			0.45
Class C		0.47			0.47			0.46			0.46			0.45
Administrator Class		0.47			0.47			0.46			0.46			0.45

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective affiliated Master Portfolio by the corresponding affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Allocation Funds 25

Ratio to average net assets (annualized)												Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1			Total return2
	1.26	%		1.32	%		1.15	%		0.34	%		87	%	$	35,993
	1.14	%		1.36	%		1.15	%		5.87	%		84	%	$	20,782
	1.29	%		1.36	%		1.15	%		9.94	%		89	%	$	18,169
	1.41	%		1.36	%		1.15	%		14.57	%		86	%	$	10,344
	1.68	%		1.33	%		1.15	%		(0.93	)%		115	%	$	9,935
	0.48	%		2.06	%		1.90	%		(0.43	)%		87	%	$	153
	0.38	%		2.10	%		1.90	%		5.07	%		84	%	$	208
	0.50	%		2.11	%		1.90	%		9.15	%		89	%	$	380
	0.65	%		2.11	%		1.90	%		13.65	%		86	%	$	613
	0.94	%		2.08	%		1.90	%		(1.66	)%		115	%	$	807
	0.51	%		2.07	%		1.90	%		(0.44	)%		87	%	$	12,501
	0.40	%		2.11	%		1.90	%		5.06	%		84	%	$	6,042
	0.54	%		2.11	%		1.90	%		9.15	%		89	%	$	4,469
	0.66	%		2.11	%		1.90	%		13.65	%		86	%	$	2,576
	0.92	%		2.08	%		1.90	%		(1.67	)%		115	%	$	2,319
	1.48	%		1.23	%		0.90	%		0.59	%		87	%	$	156,915
	1.39	%		1.20	%		0.90	%		6.13	%		84	%	$	153,457
	1.52	%		1.20	%		0.90	%		10.18	%		89	%	$	144,248
	1.66	%		1.20	%		0.90	%		14.81	%		86	%	$	146,729
	1.92	%		1.17	%		0.90	%		(0.66	)%		115	%	$	172,587

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

26 Wells Fargo Allocation Funds Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the following funds: Wells Fargo Growth Balanced Fund (“Growth Balanced Fund”) and Wells Fargo Moderate Balanced Fund (“Moderate Balanced Fund”) (each, a “Fund”, collectively, the “Funds”). Each Fund is a diversified series of the Trust.

Each Fund seeks to achieve its investment objective by investing all investable assets in separate diversified portfolios (each, an “affiliated Master Portfolio”, collectively, the “affiliated Master Portfolios”) of Wells Fargo Master Trust, a registered open-end management investment company. Each affiliated Master Portfolio directly acquires portfolio securities, and a Fund investing in an affiliated Master Portfolio acquires an indirect interest in those securities. Each Fund accounts for its investment in the affiliated Master Portfolios as partnership investments and records on a daily basis its share of the affiliated Master Portfolio’s income, expense and realized and unrealized gains and losses. The financial statements of the affiliated Master Portfolios for the year ended May 31, 2016 are included in this report and should be read in conjunction with each Fund’s financial statements. As of May 31, 2016, the Funds own the following percentages of the affiliated Master Portfolios:

	Growth Balanced Fund			Moderate Balanced Fund
Wells Fargo C&B Large Cap Value Portfolio		5	%		2	%
Wells Fargo Core Bond Portfolio		0	*		0	*
Wells Fargo Diversified Large Cap Growth Portfolio		36			18
Wells Fargo Emerging Growth Portfolio		0	*		0	*
Wells Fargo Index Portfolio		2			1
Wells Fargo International Growth Portfolio		8			4
Wells Fargo International Value Portfolio		2			1
Wells Fargo Large Company Value Portfolio		36			17
Wells Fargo Managed Fixed Income Portfolio		50			50
Wells Fargo Real Return Portfolio		14			14
Wells Fargo Small Company Growth Portfolio		0	*		0	*
Wells Fargo Small Company Value Portfolio		4			2
Wells Fargo Stable Income Portfolio		N/A			100

* The amount owned is less than 1%.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each 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), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.

Investments in the affiliated Master Portfolios are valued daily based on each Fund’s proportionate share of each affiliated Master Portfolio’s net assets, which are also valued daily. Securities held in the affiliated Master Portfolios are valued as discussed in the Notes to Financial Statements of the affiliated Master Portfolios, which are included elsewhere in this report.

Notes to financial statements Wells Fargo Allocation Funds 27

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.

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

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

Futures contracts

Each Fund is subject to interest rate risk, equity price risk, and foreign 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 Statements of Assets and Liabilities as an asset or liability and in the Statements 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 in each Fund and each affiliated Master Portfolio. Realized gains or losses in each Fund and each affiliated Master Portfolio 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 by each affiliated Master Portfolio. 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 in each affiliated Master Portfolio 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.

Income from foreign securities in each affiliated Master Portfolio is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Each Fund records daily its proportionate share of each affiliated Master Portfolio’s interest and dividend income and realized and unrealized gains or losses.

28 Wells Fargo Allocation Funds Notes to financial statements

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

Each Fund is treated as a separate entity for federal income tax purposes. Each 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.

Each 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 each Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to each Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At May 31, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statements of Assets and Liabilities:

	Paid-in capital		Undistributed net investment income			Accumulated net realized gains (losses) on investments
Growth Balanced Fund	$	142,554	$	(145,671	)	$	3,117
Moderate Balanced Fund		66,958		(64,779	)		(2,179	)

As of May 31, 2016, Growth Balanced Fund had capital loss carryforwards that are available to offset future net realized capital gains in the amount of $137,481,627 with $54,903,400 expiring in 2017 and $82,578,227 expiring in 2018.

As of May 31, 2016, Growth Balanced Fund had current year deferred post-October capital losses of $1,137,602, which will be recognized on the first day of the following fiscal year.

Class allocations

The separate classes of shares offered by each 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 each 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). Each 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 Wells Fargo Allocation Funds 29

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 each Fund’s assets and liabilities as of May 31, 2016:

Growth Balanced Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Short-term investments
U.S. Treasury securities	$	136,995	$	0	$	0	$	136,995
Investments measured at net asset value*								257,978,783
		136,995		0		0		258,115,778
Futures contracts		1,500		0		0		1,500
Total assets	$	138,495	$	0	$	0	$	258,117,278

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $257,978,783. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Moderate Balanced Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Short-term investments
U.S. Treasury securities	$	105,997	$	0	$	0	$	105,997
Investments measured at net asset value*								204,509,135
		105,997		0		0		204,615,132
Futures contracts		1,156		0		0		1,156
Total assets	$	107,153	$	0	$	0	$	204,616,288

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $204,509,135. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

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 Funds recognize transfers between levels within the fair value hierarchy at the end of the reporting period. At May 31, 2016, the Funds did not have any transfers into/out of Level 1, Level 2, or Level 3.

30 Wells Fargo Allocation Funds Notes to financial statements

The investment objective of each affiliated Master Portfolio is as follows:

Affiliated Master Portfolio	Investment objective
Wells Fargo C&B Large Cap Value Portfolio	Seeks maximum long-term total return (current income and capital appreciation), consistent with minimizing risk to principal
Wells Fargo Core Bond Portfolio	Seeks total return, consisting of income and capital appreciation
Wells Fargo Diversified Large Cap Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Emerging Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Index Portfolio	Seeks to replicate the total return of the S&P 500 Index, before expenses
Wells Fargo International Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo International Value Portfolio	Seeks long-term capital appreciation
Wells Fargo Large Company Value Portfolio	Seeks long-term capital appreciation
Wells Fargo Managed Fixed Income Portfolio	Seeks consistent fixed-income returns
Wells Fargo Real Return Portfolio	Seeks returns that exceed the rate of inflation over the long-term
Wells Fargo Small Company Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Small Company Value Portfolio	Seeks long-term capital appreciation
Wells Fargo Stable Income Portfolio	Seeks current income consistent with capital preservation

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of each 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 each Fund, supervising the applicable subadvisers, providing fund-level administrative services in connection with each Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of each Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.30% and declining to 0.22% as the average daily net assets of each Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.25% and declined to 0.19% as the average daily net assets of each Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of each Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended May 31, 2016 have been included in management fee on the Statements of Operations.

For the year ended May 31, 2016, the management fee was equivalent to an annual rate of 0.30% of each Fund’s average daily net assets.

Funds Management also serves as the adviser to each affiliated Master Portfolio and is entitled to receive a fee from each affiliated Master Portfolio for those services.

Notes to financial statements Wells Fargo Allocation Funds 31

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Funds, 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
	Current rate			Rate prior to July 1, 2015
Class A, Class B, Class C		0.21	%		0.26	%
Administrator Class		0.13			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 Funds. 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 September 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap each Fund’s expenses as follows:

	Class A			Class B			Class C			Administrator Class
Growth Balanced Fund		1.20	%		1.95	%		1.95	%		0.95	%
Moderate Balanced Fund		1.15			1.90			1.90			0.90

Net expenses from affiliated Master Portfolios are included in the expense caps. After the expiration date, each expense 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 applicable Funds pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to the Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter of each Fund, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended May 31, 2016, Funds Distributor received the following amounts in front-end sales charges:

	Class A
Growth Balanced Fund	$	21,867
Moderate Balanced Fund		25,046

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 each applicable 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.

32 Wells Fargo Allocation Funds Notes to financial statements

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended May 31, 2016 were as follows:

	Purchases at cost*			Sales proceeds*
	U.S. government	Non-U.S. government		U.S. government	Non-U.S. government
Growth Balanced Fund	$112,986,422	$	96,623,264	$109,571,069	$	91,674,902
Moderate Balanced Fund	119,566,934		73,969,025	112,172,162		59,693,981

* The Funds seek to achieve their investment objective by investing substantially all of their investable assets in affiliated Master Portfolios. Purchases and sales related to these investments have been calculated by aggregating the results of multiplying each Fund’s ownership percentage of the respective affiliated Master Portfolio by the corresponding affiliated Master Portfolio’s purchases and sales. Purchases and sales of unaffiliated securities in which the Funds invest are actual purchases and sale of those securities.

6. DERIVATIVE TRANSACTIONS

During the year ended May 31, 2016, the Funds entered into futures contracts to gain market exposure to certain asset classes consistent with an active asset allocation strategy.

At May 31, 2016, the Funds had short futures contracts outstanding as follows:

	Expiration date	Counterparty	Contracts	Type		Contract value at May 31, 2016		Unrealized losses
Growth Balanced Fund	9-21-2016	Goldman Sachs	96 Short		10-Year U.S. Treasury Note	$	12,450,000	$	(30,275	)
Moderate Balanced Fund	9-21-2016	Goldman Sachs	74 Short		10-Year U.S. Treasury Note		9,596,875		(23,337	)

The Funds had an average notional amounts in futures contracts during the year ended May 31, 2016 as follows:

	Long contracts		Short contracts
Growth Balanced Fund	$	4,081,257	$	7,858,548
Moderate Balanced Fund		3,008,717		5,852,332

A summary of derivative instruments by primary risk exposure is outlined in the following tables.

The fair value of derivative instruments as of May 31, 2016 was as follows for Growth Balanced Fund:

	Asset derivatives				Liability derivatives
	Statements of Assets and Liabilities location	Fair value			Statements of Assets and Liabilities location	Fair value
Interest rate contracts	Receivable for daily variation margin on open futures contracts	$	1,500	*	Payable for daily variation margin on open futures contracts	$	0

* Only the current day’s variation margin as of May 31, 2016 is reported separately on the Statements of Assets and Liabilities.

The effect of derivative instruments on the Statements of Operations for the year ended May 31, 2016 was as follows for Growth Balanced Fund:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains on derivatives
Interest rate contracts	$	74,830		$	8,873
Equity contracts		(253,223	)		56,282
Foreign exchange contracts		1,461,468			37,065
	$	1,283,075		$	102,220

Notes to financial statements Wells Fargo Allocation Funds 33

The fair value of derivative instruments as of May 31, 2016 was as follows for Moderate Balanced Fund:

	Asset derivatives				Liability derivatives
	Statements of Assets and Liabilities location	Fair value			Statements of Assets and Liabilities location	Fair value
Interest rate contracts	Receivable for daily variation margin on open futures contracts	$	1,156	*	Payable for daily variation margin on open futures contracts	$	0

* Only the current day’s variation margin as of May 31, 2016 is reported separately on the Statements of Assets and Liabilities.

The effect of derivative instruments on the Statements of Operations for the year ended May 31, 2016 was as follows for Moderate Balanced Fund:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains on derivatives
Interest rate contracts	$	36,313		$	3,694
Equity contracts		1,113,069			38,815
Foreign exchange contracts		(174,081	)		26,302
	$	975,301		$	68,811

For certain types of derivative transactions, the Funds have 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 allow the Funds 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 Funds under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statements 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 Statements of Assets and Liabilities are not offset across transactions between each Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statements 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 Statements of Assets and Liabilities		Amounts subject to netting agreements		Collateral received		Net amount of assets
Growth Balanced Fund	Futures – variation margin	Goldman Sachs	$	1,500	$	0	$	0	$	1,500
Moderate Balanced Fund	Futures – variation margin	Goldman Sachs		1,156		0		0		1,156

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 each 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 each 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 $25,000,000 with annual commitment fee of 0.15% of the unused balance which was allocated to each participating fund.

For the year ended May 31, 2016, there were no borrowings by Funds under the agreement.

34 Wells Fargo Allocation Funds Notes to financial statements

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended May 31, 2016 and May 31, 2015 were as follows:

	Ordinary income				Long-term capital gain
	2016		2015		2016		2015
Growth Balanced Fund	$	2,719,460	$	1,326,245	$	0	$	0
Moderate Balanced Fund		2,856,780		4,508,014		6,284,057		2,849,163

As of May 31, 2016, the components of distributable earnings on a tax basis were as follows:

	Undistributed ordinary income		Undistributed long-term gain		Unrealized gains		Post-October capital losses deferred			Capital loss carryforward
Growth Balanced Fund	$	2,950,512	$	0	$	25,065,236	$	(1,137,602	)	$	(137,481,627	)
Moderate Balanced Fund		1,104,352		410,499		12,032,241		0			0

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Allocation Funds 35

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wells Fargo Growth Balanced Fund, and Wells Fargo Moderate Balanced Fund (formerly known as Wells Fargo Advantage Growth Balanced Fund, and Wells Fargo Advantage Moderate Balanced Fund, respectively) (the “Funds”), two of the funds constituting the Wells Fargo Funds Trust , as of May 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of May 31, 2016 with the custodian and brokers, by correspondence with the transfer agent or by other appropriate audit procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned funds of Wells Fargo Funds Trust as of May 31, 2016, the results of their operations for the year then ended, changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

36 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

C&B LARGE CAP VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 95.04%
Consumer Discretionary: 13.41%
Hotels, Restaurants & Leisure: 3.02%
Brinker International Incorporated		78,307	$	3,521,466
Carnival Corporation		111,500		5,323,010
				8,844,476
Household Durables: 1.22%
Whirlpool Corporation		20,400		3,562,248
Media: 5.77%
Omnicom Group Incorporated		102,600		8,549,658
Twenty-First Century Fox Incorporated Class A		289,400		8,357,872
				16,907,530
Multiline Retail: 1.03%
Kohl’s Corporation		84,200		3,034,568
Textiles, Apparel & Luxury Goods: 2.37%
Gildan Activewear Incorporated		232,500		6,935,475
Consumer Staples: 6.52%
Beverages: 1.68%
Diageo plc ADR «		45,120		4,923,946
Household Products: 1.67%
The Procter & Gamble Company		60,390		4,894,006
Personal Products: 1.48%
Unilever NV ADR		96,500		4,319,340
Tobacco: 1.69%
Philip Morris International		50,300		4,963,604
Energy: 6.06%
Oil, Gas & Consumable Fuels: 6.06%
Chevron Corporation		30,900		3,120,900
Devon Energy Corporation		40,100		1,447,209
Exxon Mobil Corporation		82,000		7,299,640
Noble Energy Incorporated		19,870		710,353
World Fuel Services Corporation		112,700		5,180,819
				17,758,921
Financials: 26.02%
Banks: 8.11%
Bank of America Corporation		468,700		6,932,073
JPMorgan Chase & Company		143,470		9,364,287
PNC Financial Services Group Incorporated		83,000		7,448,420
				23,744,780

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 37

C&B LARGE CAP VALUE PORTFOLIO

Security name	Shares		Value
Capital Markets: 3.24%
State Street Corporation		150,600	$	9,496,836
Consumer Finance: 2.15%
American Express Company		95,700		6,293,232
Diversified Financial Services: 2.26%
Berkshire Hathaway Incorporated Class B †		47,200		6,633,488
Insurance: 10.26%
Chubb Limited		49,600		6,279,856
FNF Group		202,900		7,091,355
RenaissanceRe Holdings Limited		72,200		8,339,822
The Progressive Corporation		251,100		8,361,630
				30,072,663
Health Care: 15.08%
Health Care Equipment & Supplies: 4.06%
Abbott Laboratories		138,800		5,500,644
Becton Dickinson & Company		38,400		6,391,680
				11,892,324
Health Care Providers & Services: 8.59%
Cardinal Health Incorporated		85,740		6,769,173
Laboratory Corporation of America Holdings †		77,160		9,872,622
UnitedHealth Group Incorporated		63,690		8,513,442
				25,155,237
Pharmaceuticals: 2.43%
Johnson & Johnson		63,300		7,133,277
Industrials: 18.35%
Aerospace & Defense: 1.48%
Rockwell Collins Incorporated		49,100		4,340,440
Air Freight & Logistics: 2.34%
United Parcel Service Incorporated Class B		66,600		6,865,794
Electrical Equipment: 2.58%
Eaton Corporation plc		122,800		7,568,164
Industrial Conglomerates: 1.70%
3M Company		29,500		4,965,440
Machinery: 4.77%
Donaldson Company Incorporated		190,200		6,373,602
Parker-Hannifin Corporation		66,100		7,590,924
				13,964,526

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

38 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

C&B LARGE CAP VALUE PORTFOLIO

Security name				Shares		Value
Trading Companies & Distributors: 5.48%
AerCap Holdings NV †					196,700	$	7,689,003
W.W. Grainger Incorporated «					19,500		4,452,825
WESCO International Incorporated †«					67,200		3,919,776
							16,061,604
Information Technology: 4.81%
IT Services: 2.87%
Alliance Data Systems Corporation †					22,100		4,910,399
The Western Union Company					179,800		3,497,110
							8,407,509
Semiconductors & Semiconductor Equipment: 1.94%
Linear Technology Corporation					119,800		5,668,936
Materials: 4.79%
Chemicals: 1.07%
Axalta Coating Systems Limited †					111,500		3,138,725
Containers & Packaging: 3.72%
Ball Corporation					42,600		3,079,980
Crown Holdings Incorporated †					149,700		7,809,847
							10,889,827
Total Common Stocks (Cost $210,754,976)							278,436,916
	Yield
Short-Term Investments: 8.98%
Investment Companies: 8.98%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		12,454,900		12,454,900
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			13,862,559		13,862,559
Total Short-Term Investments (Cost $26,317,459)							26,317,459

Total investments in securities (Cost $237,072,435) *	104.02	%		304,754,375
Other assets and liabilities, net	(4.02	)		(11,790,086	)
Total net assets	100.00	%	$	292,964,289

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

† Non-income-earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $245,961,339 and unrealized gains (losses) consists of:

Gross unrealized gains	$	70,742,300
Gross unrealized losses		(11,949,264	)
Net unrealized gains	$	58,793,036

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 39

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 97.83%
Consumer Discretionary: 25.49%
Auto Components: 0.42%
Delphi Automotive plc		7,120	$	483,875
Distributors: 0.63%
LKQ Corporation †		21,990		727,209
Hotels, Restaurants & Leisure: 4.41%
Hilton Worldwide Holdings Incorporated		13,168		273,631
Marriott International Incorporated Class A «		8,000		528,320
McDonald’s Corporation		7,210		880,053
Starbucks Corporation		45,878		2,518,243
Yum! Brands Incorporated		11,080		909,557
				5,109,804
Internet & Catalog Retail: 5.12%
Amazon.com Incorporated †		6,810		4,922,200
Netflix Incorporated †		6,460		662,602
The Priceline Group Incorporated †		270		341,369
				5,926,171
Media: 1.04%
Charter Communications Incorporated Class A †		11		2,408
The Walt Disney Company		12,090		1,199,570
				1,201,978
Multiline Retail: 3.42%
Dollar General Corporation		16,210		1,457,279
Dollar Tree Incorporated †		27,690		2,507,053
				3,964,332
Specialty Retail: 7.49%
CarMax Incorporated Ǡ		17,730		951,392
O’Reilly Automotive Incorporated †		5,550		1,467,587
The Home Depot Incorporated		23,570		3,114,068
The TJX Companies Incorporated		18,600		1,415,832
Tractor Supply Company		15,550		1,494,355
ULTA Salon, Cosmetics and Fragrance Incorporated †		960		223,690
				8,666,924
Textiles, Apparel & Luxury Goods: 2.96%
Coach Incorporated		12,480		491,962
Nike Incorporated Class B		26,160		1,444,555
Under Armour Incorporated Class A «		11,690		441,064
Under Armour Incorporated Class C †		5,230		182,893
VF Corporation		13,840		862,509
				3,422,983

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

40 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Consumer Staples: 7.89%
Beverages: 3.15%
Constellation Brands Incorporated Class A		7,780	$	1,191,507
Dr Pepper Snapple Group Incorporated		11,210		1,024,594
Monster Beverage Corporation †		6,390		958,500
The Coca-Cola Company		10,670		475,882
				3,650,483
Food & Staples Retailing: 2.64%
Costco Wholesale Corporation		10,720		1,594,814
CVS Health Corporation		12,330		1,189,229
Sprouts Farmers Market Incorporated †		11,038		273,301
				3,057,344
Household Products: 0.44%
Colgate-Palmolive Company		7,190		506,248
Personal Products: 0.79%
The Estee Lauder Companies Incorporated Class A		9,910		909,540
Tobacco: 0.87%
Reynolds American Incorporated		20,360		1,011,892
Energy: 1.19%
Energy Equipment & Services: 0.21%
Schlumberger Limited		3,250		247,975
Oil, Gas & Consumable Fuels: 0.98%
Concho Resources Incorporated †		8,480		1,028,963
EOG Resources Incorporated		1,260		102,514
				1,131,477
Financials: 2.21%
Capital Markets: 0.68%
SEI Investments Company		350		18,011
TD Ameritrade Holding Corporation		23,610		771,339
				789,350
Diversified Financial Services: 1.28%
Intercontinental Exchange Incorporated		2,820		764,558
S&P Global Incorporated		6,370		712,230
				1,476,788
REITs: 0.25%
American Tower Corporation		2,770		293,011
Health Care: 14.23%
Biotechnology: 6.39%
Alexion Pharmaceuticals Incorporated †		16,270		2,455,143
Biogen Incorporated †		2,470		715,633

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 41

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Biotechnology (continued)
BioMarin Pharmaceutical Incorporated †		10,910	$	978,082
Celgene Corporation †		15,120		1,595,462
Incyte Corporation †		2,640		222,842
Regeneron Pharmaceuticals Incorporated †		2,390		953,443
Vertex Pharmaceuticals Incorporated †		5,190		483,449
				7,404,054
Health Care Equipment & Supplies: 2.04%
Intuitive Surgical Incorporated †		1,440		913,982
Medtronic plc		17,995		1,448,238
				2,362,220
Health Care Providers & Services: 1.30%
AmerisourceBergen Corporation		1,600		119,968
UnitedHealth Group Incorporated		10,350		1,383,485
				1,503,453
Health Care Technology: 0.84%
Cerner Corporation †		17,441		969,894
Life Sciences Tools & Services: 0.54%
Quintiles Transnational Holdings Incorporated †		9,264		628,933
Pharmaceuticals: 3.12%
Allergan plc †		142		33,477
Bristol-Myers Squibb Company		35,360		2,535,312
Novo Nordisk A/S ADR		9,650		540,786
Zoetis Incorporated		10,492		497,531
				3,607,106
Industrials: 6.73%
Aerospace & Defense: 0.71%
Honeywell International Incorporated		2,150		244,735
The Boeing Company		4,540		572,721
				817,456
Air Freight & Logistics: 0.35%
United Parcel Service Incorporated Class B		3,950		407,206
Airlines: 1.70%
Delta Air Lines Incorporated		14,950		649,727
Southwest Airlines Company		30,910		1,313,057
				1,962,784
Electrical Equipment: 0.17%
Rockwell Automation Incorporated		1,750		203,088
Industrial Conglomerates: 1.17%
3M Company		3,500		589,120

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

42 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Industrial Conglomerates (continued)
Danaher Corporation		7,780	$	765,241
				1,354,361
Professional Services: 0.46%
Verisk Analytics Incorporated †		6,680		530,325
Road & Rail: 2.17%
Canadian Pacific Railway Limited		1,030		133,478
Kansas City Southern		9,460		880,726
Union Pacific Corporation		17,810		1,499,424
				2,513,628
Information Technology: 37.17%
Communications Equipment: 1.31%
Harris Corporation		9,390		739,650
Palo Alto Networks Incorporated †		5,940		774,932
				1,514,582
Internet Software & Services: 12.01%
Alphabet Incorporated Class A †		7,004		5,244,945
Alphabet Incorporated Class C †		2,984		2,195,388
Facebook Incorporated Class A †		48,180		5,724,266
Tencent Holdings Limited ADR		32,810		731,663
				13,896,262
IT Services: 8.90%
Accenture plc Class A		7,720		918,448
Alliance Data Systems Corporation †		1,370		304,400
Cognizant Technology Solutions Corporation Class A †		15,200		933,888
Fidelity National Information Services Incorporated		12,440		923,919
MasterCard Incorporated Class A		20,110		1,928,549
PayPal Holdings Incorporated †		42,670		1,612,499
Visa Incorporated Class A		46,630		3,680,972
				10,302,675
Semiconductors & Semiconductor Equipment: 3.82%
ARM Holdings plc ADR		298		12,844
Broadcom Limited		8,411		1,298,322
Microchip Technology Incorporated «		36,529		1,887,819
Texas Instruments Incorporated		20,220		1,225,332
				4,424,317
Software: 8.44%
Adobe Systems Incorporated †		18,800		1,870,036
Electronic Arts Incorporated †		10,590		812,783
Fortinet Incorporated †		17,780		608,254
Microsoft Corporation		34,800		1,844,400
Red Hat Incorporated †		9,000		697,140

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 43

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name				Shares		Value
Software (continued)
Salesforce.com Incorporated †					22,154	$	1,854,511
ServiceNow Incorporated †					17,254		1,235,904
Splunk Incorporated †					13,100		752,595
Tableau Software Incorporated Class A †					1,930		99,279
							9,774,902
Technology Hardware, Storage & Peripherals: 2.69%
Apple Incorporated					31,227		3,118,328
Materials: 2.92%
Chemicals: 2.92%
Ecolab Incorporated					13,320		1,561,637
Praxair Incorporated					8,140		894,260
The Sherwin-Williams Company					3,170		922,752
							3,378,649
Total Common Stocks (Cost $76,805,738)							113,251,607
	Yield
Short-Term Investments: 4.52%
Investment Companies: 4.52%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		3,113,406		3,113,406
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			2,118,196		2,118,196
Total Short-Term Investments (Cost $5,231,602)							5,231,602

Total investments in securities (Cost $82,037,340) *	102.35	%		118,483,209
Other assets and liabilities, net	(2.35	)		(2,724,733	)
Total net assets	100.00	%	$	115,758,476

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $82,417,127 and unrealized gains (losses) consists of:

Gross unrealized gains	$	37,113,069
Gross unrealized losses		(1,046,987	)
Net unrealized gains	$	36,066,082

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

44 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

EMERGING GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 98.14%
Consumer Discretionary: 12.15%
Auto Components: 1.67%
Gentherm Incorporated †		90,670	$	3,316,709
Motorcar Parts of America Incorporated †		389,542		11,670,678
				14,987,387
Diversified Consumer Services: 0.93%
Grand Canyon Education Incorporated †		200,830		8,386,661
Hotels, Restaurants & Leisure: 3.79%
Fiesta Restaurant Group Incorporated †		100,565		2,527,198
Jack in the Box Incorporated		58,340		4,970,568
Planet Fitness Incorporated Class A Ǡ		233,881		4,177,115
The Habit Restaurants Incorporated Class A Ǡ		636,258		11,382,656
Wingstop Incorporated Ǡ		269,058		7,506,718
Zoe’s Kitchen Incorporated «†		93,210		3,441,313
				34,005,568
Household Durables: 0.33%
Universal Electronics Incorporated †		45,300		2,941,329
Leisure Products: 0.48%
MCBC Holdings Incorporated †		279,012		4,291,205
Media: 1.31%
IMAX Corporation †		352,460		11,751,016
Specialty Retail: 2.67%
Five Below Incorporated †		76,207		3,190,025
Lithia Motors Incorporated Class A		132,820		10,936,399
Monro Muffler Brake Incorporated		41,437		2,608,459
Sportsman’s Warehouse Holdings Incorporated †		843,623		7,288,903
				24,023,786
Textiles, Apparel & Luxury Goods: 0.97%
G-III Apparel Group Limited †		223,680		8,750,362
Energy: 2.84%
Oil, Gas & Consumable Fuels: 2.84%
Matador Resources Company †		211,056		4,795,192
PDC Energy Incorporated †		145,970		8,473,559
RSP Permian Incorporated †		372,758		12,274,921
				25,543,672
Financials: 5.35%
Capital Markets: 0.30%
Financial Engines Incorporated «		97,090		2,683,568

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 45

EMERGING GROWTH PORTFOLIO

Security name	Shares		Value
Diversified Financial Services: 3.61%
MarketAxess Holdings Incorporated		232,241	$	32,499,806
Thrifts & Mortgage Finance: 1.44%
LendingTree Incorporated Ǡ		155,312		12,929,724
Health Care: 32.24%
Biotechnology: 4.62%
Alder Biopharmaceuticals Incorporated †		109,100		3,280,637
Ligand Pharmaceuticals Incorporated Ǡ		151,180		18,079,616
Radius Health Incorporated Ǡ		138,345		5,016,390
Repligen Corporation †		345,720		8,283,451
Ultragenyx Pharmaceutical Incorporated †		93,134		6,808,095
				41,468,189
Health Care Equipment & Supplies: 14.19%
Abiomed Incorporated †		99,730		9,904,186
Cerus Corporation Ǡ		765,578		4,256,614
Cynosure Incorporated Class A †		350,398		16,738,512
Entellus Medical Incorporated Ǡ		285,455		5,121,063
Glaukos Corporation †		291,082		7,087,847
Inogen Incorporated †		289,670		13,828,846
Integra LifeSciences Holdings Corporation		36,100		2,697,031
Natus Medical Incorporated †		229,400		7,416,502
Nevro Corporation Ǡ		247,965		17,288,120
NxStage Medical Incorporated †		931,950		17,613,855
The Spectranetics Corporation †		885,169		16,216,296
Zeltiq Aesthetics Incorporated Ǡ		328,200		9,340,572
				127,509,444
Health Care Providers & Services: 9.55%
AAC Holdings Incorporated Ǡ		141,639		3,046,655
Acadia Healthcare Company Incorporated †		523,230		30,802,550
Adeptus Health Incorporated Class A Ǡ		79,987		5,719,071
Diplomat Pharmacy Incorporated Ǡ		285,406		9,298,527
ExamWorks Group Incorporated †		482,658		16,849,591
HealthEquity Incorporated †		602,042		15,538,704
Teladoc Incorporated Ǡ		401,259		4,586,390
				85,841,488
Health Care Technology: 0.80%
Veeva Systems Incorporated Class A †		217,920		7,180,464
Life Sciences Tools & Services: 1.99%
ICON plc ADR †		107,780		7,592,023
INC Research Holdings Incorporated Class A †		235,945		10,265,967
				17,857,990
Pharmaceuticals: 1.09%
Intersect ENT Incorporated †		117,220		1,539,099

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

46 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

EMERGING GROWTH PORTFOLIO

Security name	Shares		Value
Pharmaceuticals (continued)
Pacira Pharmaceuticals Incorporated Ǡ		177,990	$	8,278,315
				9,817,414
Industrials: 11.52%
Aerospace & Defense: 0.62%
HEICO Corporation		83,300		5,543,615
Airlines: 0.63%
SkyWest Incorporated		241,600		5,701,760
Building Products: 0.98%
Apogee Enterprises Incorporated		194,950		8,815,639
Commercial Services & Supplies: 0.82%
G&K Services Incorporated Class A		49,560		3,715,018
Multi-Color Corporation		59,400		3,703,590
				7,418,608
Construction & Engineering: 1.39%
Dycom Industries Incorporated †		125,470		10,651,148
Granite Construction Incorporated		42,200		1,811,646
				12,462,794
Machinery: 2.36%
John Bean Technologies Corporation		154,160		9,354,429
Milacron Holdings Corporation Ǡ		454,708		7,457,211
Mueller Water Products Incorporated Class A		397,700		4,378,677
				21,190,317
Professional Services: 4.72%
CEB Incorporated		62,476		3,983,470
On Assignment Incorporated †		510,813		19,242,326
Wageworks Incorporated †		341,866		19,161,589
				42,387,385
Information Technology: 34.04%
Communications Equipment: 0.77%
Infinera Corporation †		528,153		6,924,086
Internet Software & Services: 11.18%
2U Incorporated Ǡ		208,810		5,813,270
Demandware Incorporated †		216,450		10,387,436
Envestnet Incorporated †		607,642		20,532,223
LogMeIn Incorporated †		136,600		8,369,482
Q2 Holdings Incorporated †		794,743		19,852,680
SPS Commerce Incorporated †		446,298		24,323,241
Stamps.com Incorporated †		61,150		5,564,039
Xactly Corporation †		569,901		5,619,224
				100,461,595

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 47

EMERGING GROWTH PORTFOLIO

Security name				Shares		Value
IT Services: 3.02%
InterXion Holding NV †					635,870	$	23,819,690
Maximus Incorporated					56,560		3,260,684
							27,080,374
Semiconductors & Semiconductor Equipment: 2.48%
Cavium Incorporated †					117,580		5,849,605
Microsemi Corporation †					232,060		7,850,590
Monolithic Power Systems Incorporated					126,090		8,615,730
							22,315,925
Software: 16.59%
Callidus Software Incorporated †					730,162		13,551,802
CommVault Systems Incorporated †					80,300		3,635,984
CyberArk Software Limited Ǡ					234,750		10,662,345
Fleetmatics Group plc †					253,480		10,367,332
Guidewire Software Incorporated †					71,181		4,178,325
HubSpot Incorporated †					236,266		11,284,064
Paycom Software Incorporated †					386,950		15,648,258
Paylocity Holding Corporation †					211,353		7,758,769
Proofpoint Incorporated †					564,560		33,094,507
Qlik Technologies Incorporated †					425,270		12,205,249
Rapid7 Incorporated Ǡ					256,669		3,298,197
Ringcentral Incorporated Class A †					524,240		10,348,498
Synchronoss Technologies Incorporated †					241,051		8,501,869
Tyler Technologies Incorporated †					29,335		4,496,762
							149,031,961
Total Common Stocks (Cost $694,969,727)							881,803,132
	Yield
Short-Term Investments: 12.00%
Investment Companies: 12.00%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		92,823,723		92,823,723
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			14,978,235		14,978,235
Total Short-Term Investments (Cost $107,801,958)							107,801,958

Total investments in securities (Cost $802,771,685) *	110.14	%		989,605,090
Other assets and liabilities, net	(10.14	)		(91,117,425	)
Total net assets	100.00	%	$	898,487,665

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $810,183,984 and unrealized gains (losses) consists of:

Gross unrealized gains	$	221,478,685
Gross unrealized losses		(42,057,579	)
Net unrealized gains	$	179,421,106

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

48 Wells Fargo Allocation Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

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
Common Stocks: 98.62%
Consumer Discretionary: 12.38%
Auto Components: 0.34%
Other securities			$	7,886,248		0.34	%
Automobiles: 0.57%
Other securities				13,284,003		0.57
Distributors: 0.13%
Other securities				3,111,665		0.13
Diversified Consumer Services: 0.03%
Other securities				637,041		0.03
Hotels, Restaurants & Leisure: 1.73%
McDonald’s Corporation		113,965		13,910,568		0.59
Starbucks Corporation		186,834		10,255,318		0.44
Other securities				16,388,522		0.70
				40,554,408		1.73
Household Durables: 0.48%
Other securities				11,299,293		0.48
Internet & Catalog Retail: 2.20%
Amazon.com Incorporated †		48,803		35,274,320		1.51
Other securities				16,121,438		0.69
				51,395,758		2.20
Leisure Products: 0.11%
Other securities				2,609,363		0.11
Media: 2.76%
Comcast Corporation Class A		307,530		19,466,649		0.83
The Walt Disney Company		189,735		18,825,507		0.80
Other securities				26,322,549		1.13
				64,614,705		2.76
Multiline Retail: 0.60%
Other securities				14,012,634		0.60
Specialty Retail: 2.61%
The Home Depot Incorporated		160,262		21,173,815		0.90
Other securities				39,991,483		1.71
				61,165,298		2.61
Textiles, Apparel & Luxury Goods: 0.82%
Other securities				19,123,892		0.82

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 49

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Consumer Staples: 9.94%
Beverages: 2.24%
PepsiCo Incorporated		182,703	$	18,484,063		0.79	%
The Coca-Cola Company		492,530		21,966,838		0.94
Other securities				11,966,753		0.51
				52,417,654		2.24
Food & Staples Retailing: 2.27%
CVS Health Corporation		138,851		13,392,179		0.57
Wal-Mart Stores Incorporated		198,315		14,036,736		0.60
Other securities				25,639,454		1.10
				53,068,369		2.27
Food Products: 1.70%
Other securities				39,787,489		1.70
Household Products: 1.90%
The Procter & Gamble Company		335,289		27,171,821		1.16
Other securities				17,458,605		0.74
				44,630,426		1.90
Personal Products: 0.11%
Other securities				2,574,521		0.11
Tobacco: 1.72%
Altria Group Incorporated		247,486		15,750,009		0.67
Philip Morris International		195,840		19,325,491		0.83
Other securities				5,200,757		0.22
				40,276,257		1.72
Energy: 7.03%
Energy Equipment & Services: 1.04%
Schlumberger Limited		175,750		13,409,725		0.57
Other securities				10,958,290		0.47
				24,368,015		1.04
Oil, Gas & Consumable Fuels: 5.99%
Chevron Corporation		238,034		24,041,434		1.03
Exxon Mobil Corporation		524,916		46,728,022		2.00
Other securities				69,443,032		2.96
				140,212,488		5.99
Financials: 16.07%
Banks: 5.55%
Bank of America Corporation		1,305,178		19,303,583		0.82
Citigroup Incorporated		372,647		17,354,171		0.74
JPMorgan Chase & Company		463,928		30,280,581		1.29

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

50 Wells Fargo Allocation Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Banks (continued)
Wells Fargo & Company (l)		583,952	$	29,618,045		1.27	%
Other securities				33,288,574		1.43
				129,844,954		5.55
Capital Markets: 1.93%
Other securities				45,232,634		1.93
Consumer Finance: 0.79%
Other securities				18,550,439		0.79
Diversified Financial Services: 2.10%
Berkshire Hathaway Incorporated Class B †		236,820		33,282,683		1.42
Other securities				15,844,996		0.68
				49,127,679		2.10
Insurance: 2.71%
Other securities				63,425,299		2.71
Real Estate Management & Development: 0.05%
Other securities				1,097,167		0.05
REITs: 2.94%
Other securities				68,932,148		2.94
Health Care: 14.50%
Biotechnology: 3.26%
AbbVie Incorporated		203,663		12,816,513		0.55
Amgen Incorporated		95,066		15,015,675		0.64
Celgene Corporation †		98,804		10,425,798		0.45
Gilead Sciences Incorporated		172,772		15,041,530		0.64
Other securities				23,038,465		0.98
				76,337,981		3.26
Health Care Equipment & Supplies: 2.34%
Medtronic plc		177,741		14,304,596		0.61
Other securities				40,350,847		1.73
				54,655,443		2.34
Health Care Providers & Services: 2.65%
UnitedHealth Group Incorporated		120,167		16,062,723		0.68
Other securities				46,048,368		1.97
				62,111,091		2.65
Health Care Technology: 0.09%
Other securities				2,127,138		0.09
Life Sciences Tools & Services: 0.61%
Other securities				14,366,808		0.61

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 51

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Pharmaceuticals: 5.55%
Allergan plc †		49,889	$	11,761,332		0.50	%
Bristol-Myers Squibb Company		211,023		15,130,349		0.65
Johnson & Johnson		348,788		39,304,920		1.68
Merck & Company Incorporated		350,798		19,735,895		0.84
Pfizer Incorporated		764,495		26,527,977		1.13
Other securities				17,309,257		0.75
				129,769,730		5.55
Industrials: 9.89%
Aerospace & Defense: 2.47%
Honeywell International Incorporated		97,244		11,069,285		0.47
The Boeing Company		78,717		9,930,150		0.42
Other securities				36,863,920		1.58
				57,863,355		2.47
Air Freight & Logistics: 0.72%
Other securities				16,813,712		0.72
Airlines: 0.56%
Other securities				13,101,665		0.56
Building Products: 0.09%
Other securities				2,199,357		0.09
Commercial Services & Supplies: 0.41%
Other securities				9,486,053		0.41
Construction & Engineering: 0.09%
Other securities				2,170,658		0.09
Electrical Equipment: 0.54%
Other securities				12,588,715		0.54
Industrial Conglomerates: 2.48%
3M Company		76,478		12,872,777		0.55
General Electric Company		1,179,405		35,653,413		1.52
Other securities				9,618,219		0.41
				58,144,409		2.48
Machinery: 1.27%
Other securities				29,656,290		1.27
Professional Services: 0.31%
Other securities				7,149,770		0.31
Road & Rail: 0.77%
Other securities				18,072,541		0.77

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

52 Wells Fargo Allocation Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Trading Companies & Distributors: 0.18%
Other securities			$	4,118,945		0.18	%
Information Technology: 20.09%
Communications Equipment: 0.99%
Cisco Systems Incorporated		636,069		18,477,804		0.79
Other securities				4,629,500		0.20
				23,107,304		0.99
Electronic Equipment, Instruments & Components: 0.36%
Other securities				8,570,189		0.36
Internet Software & Services: 4.25%
Alphabet Incorporated Class A †		36,983		27,694,720		1.18
Alphabet Incorporated Class C †		37,562		27,635,115		1.18
Facebook Incorporated Class A †		290,084		34,464,880		1.47
Other securities				9,790,121		0.42
				99,584,836		4.25
IT Services: 3.77%
International Business Machines Corporation		111,740		17,178,908		0.73
MasterCard Incorporated Class A		123,941		11,885,942		0.51
Visa Incorporated Class A		242,581		19,149,344		0.82
Other securities				39,987,166		1.71
				88,201,360		3.77
Semiconductors & Semiconductor Equipment: 2.78%
Intel Corporation		597,122		18,863,084		0.81
QUALCOMM Incorporated		188,956		10,377,464		0.44
Other securities				35,787,470		1.53
				65,028,018		2.78
Software: 4.21%
Microsoft Corporation		999,750		52,986,750		2.26
Oracle Corporation		398,281		16,010,896		0.68
Other securities				29,566,155		1.27
				98,563,801		4.21
Technology Hardware, Storage & Peripherals: 3.73%
Apple Incorporated		700,845		69,986,382		2.99
Other securities				17,236,347		0.74
				87,222,729		3.73
Materials: 2.81%
Chemicals: 2.03%
Other securities				47,609,352		2.03

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 53

INDEX PORTFOLIO

Security name						Shares		Value		Percent of net assets
Construction Materials: 0.15%
Other securities								$	3,502,643		0.15	%
Containers & Packaging: 0.31%
Other securities									7,133,000		0.31
Metals & Mining: 0.32%
Other securities									7,411,248		0.32
Telecommunication Services: 2.62%
Diversified Telecommunication Services: 2.62%
AT&T Incorporated							777,524		30,440,065		1.30
Verizon Communications Incorporated							514,941		26,210,497		1.12
Other securities									4,598,802		0.20
									61,249,364		2.62
Utilities: 3.29%
Electric Utilities: 2.00%
Other securities									46,854,436		2.00
Gas Utilities: 0.04%
Other securities									1,001,279		0.04
Independent Power & Renewable Electricity Producers: 0.07%
Other securities									1,576,779		0.07
Multi-Utilities: 1.11%
Other securities									25,936,618		1.11
Water Utilities: 0.07%
Other securities									1,667,324		0.07
Total Common Stocks (Cost $1,106,723,098)									2,308,193,788		98.62
	Yield
Short-Term Investments: 1.69%
Investment Companies: 1.61%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%				12,693,253		12,693,253		0.54
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					24,960,298		24,960,298		1.07
									37,653,551		1.61
				Maturity date		Principal
U.S. Treasury Securities: 0.08%
U.S. Treasury Bill #(z)		0.12			6-9-2016	$	160,000		159,995		0.01
U.S. Treasury Bill #(z)		0.25			7-21-2016		255,000		254,911		0.01
U.S. Treasury Bill #(z)		0.29			8-18-2016		410,000		409,740		0.02
U.S. Treasury Bill #(z)		0.33			9-1-2016		183,000		182,841		0.01

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

54 Wells Fargo Allocation Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

Security name	Yield			Maturity date		Principal		Value			Percent of net assets
U.S. Treasury Securities (continued)
U.S. Treasury Bill #(z)		0.37	%		10-6-2016	$	800,000	$	798,948			0.03	%
									1,806,435			0.08
Total Short-Term Investments (Cost $39,460,647)									39,459,986			1.69
Total investments in securities (Cost $1,146,183,745) *									2,347,653,774			100.31
Other assets and liabilities, net									(7,241,316	)		(0.31	)
Total net assets								$	2,340,412,458			100.00	%

† Non-income-earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

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

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

* Cost for federal income tax purposes is $1,208,116,279 and unrealized gains (losses) consists of:

Gross unrealized gains	$	1,232,363,587
Gross unrealized losses		(92,826,092	)
Net unrealized gains	$	1,139,537,495

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 55

INTERNATIONAL GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 90.91%
Belgium: 1.98%
Anheuser-Busch InBev NV (Consumer Staples, Beverages)		7,001	$	886,853
Telenet Group Holding NV (Consumer Discretionary, Media)†		22,809		1,085,943
UCB SA (Health Care, Pharmaceuticals)		13,359		965,410
				2,938,206
Canada: 1.52%
Canadian Pacific Railway Limited (Industrials, Road & Rail)		17,365		2,250,330
China: 1.71%
Baidu Incorporated ADR (Information Technology, Internet Software & Services)†		11,187		1,997,327
Tencent Holdings Limited (Information Technology, Internet Software & Services)		24,400		544,159
				2,541,486
Denmark: 0.26%
ISS A/S (Industrials, Commercial Services & Supplies)		9,457		381,268
France: 8.62%
Groupe Danone SA (Consumer Staples, Food Products)		55,591		3,901,709
L’Oreal SA (Consumer Staples, Personal Products)		8,570		1,610,531
LVMH Moet Hennessy Louis Vuitton SA (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		6,978		1,118,415
Orange SA (Telecommunication Services, Diversified Telecommunication Services)		97,060		1,686,324
Pernod-Ricard SA (Consumer Staples, Beverages)		13,944		1,519,054
Zodiac Aerospace SA (Industrials, Aerospace & Defense)		126,809		2,961,565
				12,797,598
Germany: 13.70%
Allianz AG (Financials, Insurance)		11,863		1,936,348
Bayer AG (Health Care, Pharmaceuticals)		33,356		3,178,034
Beiersdorf AG (Consumer Staples, Personal Products)		27,765		2,523,319
Deutsche Boerse AG (Financials, Diversified Financial Services)		47,920		4,198,808
Linde AG (Materials, Chemicals)		27,933		4,180,214
Vonovia SE (Financials, Real Estate Management & Development)		51,955		1,780,768
Wirecard AG (Information Technology, IT Services)«		56,945		2,531,860
				20,329,351
Hong Kong: 3.16%
AIA Group Limited (Financials, Insurance)		801,200		4,686,104
Ireland: 5.33%
Allegion plc (Industrials, Building Products)		2,032		137,444
Medtronic plc (Health Care, Health Care Equipment & Supplies)		96,515		7,767,527
				7,904,971
Japan: 12.80%
Japan Tobacco Incorporated (Consumer Staples, Tobacco)		137,154		5,452,223
KDDI Corporation (Telecommunication Services, Wireless Telecommunication Services)		53,700		1,569,756
NGK Insulators Limited (Industrials, Machinery)		93,000		2,048,377
Nippon Telegraph and Telephone Corporation (Telecommunication Services, Diversified Telecommunication Services)		31,500		1,381,067

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

56 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

INTERNATIONAL GROWTH PORTFOLIO

Security name		Shares		Value
Japan (continued)
NTT DOCOMO Incorporated (Telecommunication Services, Wireless Telecommunication Services)			140,893	$	3,535,844
Olympus Corporation (Health Care, Health Care Equipment & Supplies)			54,600		2,314,959
Ono Pharmaceutical Company Limited (Health Care, Pharmaceuticals)			22,600		1,004,943
Toyota Motor Corporation (Consumer Discretionary, Automobiles)			32,300		1,686,828
					18,993,997
Mexico: 0.84%
Grupo Televisa SAB ADR (Consumer Discretionary, Media)			46,625		1,246,753
South Korea: 0.01%
Orion Corporation (Consumer Staples, Food Products)			18		14,650
Spain: 1.68%
Grifols SA (Health Care, Biotechnology)			43,240		979,780
Grifols SA ADR (Health Care, Biotechnology)			91,232		1,508,065
					2,487,845
Sweden: 0.96%
Swedbank AB Class A (Financials, Banks)			65,125		1,433,455
Switzerland: 8.53%
Actelion Limited (Health Care, Biotechnology)			15,960		2,618,789
Nestle SA (Consumer Staples, Food Products)			94,160		6,953,062
Roche Holding AG (Health Care, Pharmaceuticals)			9,081		2,383,534
Syngenta AG (Materials, Chemicals)			1,775		697,321
					12,652,706
Taiwan: 1.20%
Taiwan Semiconductor Manufacturing Company Limited (Information Technology, Semiconductors & Semiconductor Equipment)			372,000		1,785,144
United Kingdom: 22.59%
Aon plc (Financials, Insurance)			37,385		4,085,059
Babcock International Group plc (Industrials, Commercial Services & Supplies)			57,838		868,691
British American Tobacco plc (Consumer Staples, Tobacco)			25,042		1,522,597
Coca Cola European Partners plc (Consumer Staples, Beverages)			34,108		1,323,731
Croda International plc (Materials, Chemicals)			11,912		507,231
Delphi Automotive plc (Consumer Discretionary, Auto Components)			37,027		2,516,355
Diageo plc (Consumer Staples, Beverages)			25,404		688,229
Imperial Tobacco Group plc (Consumer Staples, Tobacco)			46,968		2,558,461
Intercontinental Hotels Group plc (Consumer Discretionary, Hotels, Restaurants & Leisure)			31,658		1,220,118
International Consolidated Airlines Group SA (Industrials, Airlines)			283,379		2,197,863
Johnson Matthey plc (Materials, Chemicals)	��		24,446		1,021,119
Liberty Global plc Class A (Consumer Discretionary, Media) †			73,803		2,756,542
Liberty Global plc Class C (Consumer Discretionary, Media) †			112,794		4,075,249
Lloyds Banking Group plc (Financials, Banks)			2,149,990		2,242,658
Unilever plc (Consumer Staples, Personal Products)			81,147		3,697,470
WPP plc (Consumer Discretionary, Media)			96,877		2,233,763
					33,515,136

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 57

INTERNATIONAL GROWTH PORTFOLIO

Security name						Shares		Value
United States: 6.02%
Amazon.com Incorporated (Consumer Discretionary, Internet & Catalog Retail)†							2,170	$	1,568,454
Cognizant Technology Solutions Corporation Class A (Information Technology, IT Services)†							72,405		4,448,563
WABCO Holdings Incorporated (Industrials, Machinery) †							11,026		1,189,705
Willis Towers Watson plc (Financials, Insurance)							13,503		1,728,654
									8,935,376
Total Common Stocks (Cost $120,591,514)									134,894,376
				Expiration date
Participation Notes: 1.63%
Ireland: 1.63%
HSBC Bank plc (Ryanair Holdings plc) (Industrials, Airlines)					10-29-2018		155,215		2,418,886
Total Participation Notes (Cost $1,623,518)									2,418,886
	Dividend yield
Preferred Stocks: 1.19%
Germany: 1.19%
Henkel AG & Company KGaA (Consumer Staples, Household Products) ±		1.43	%				15,169		1,767,949
Total Preferred Stocks (Cost $1,218,585)									1,767,949
	Yield
Short-Term Investments: 8.34%
Investment Companies: 8.34%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45					2,506,158		2,506,158
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					9,867,059		9,867,059
Total Short-Term Investments (Cost $12,373,217)									12,373,217

Total investments in securities (Cost $135,806,834) *	102.07	%		151,454,428
Other assets and liabilities, net	(2.07	)		(3,077,813	)
Total net assets	100.00	%	$	148,376,615

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

58 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

INTERNATIONAL GROWTH PORTFOLIO

† Non-income-earning security

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

± 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 Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $135,907,466 and unrealized gains (losses) consists of:

Gross unrealized gains	$	17,425,961
Gross unrealized losses		(1,878,999	)
Net unrealized gains	$	15,546,962

The following table shows the percent of total long-term investments by sector as of May 31, 2016:

Consumer Staples	24.75	%
Health Care	16.34
Financials	15.88
Consumer Discretionary	14.03
Industrials	10.39
Information Technology	8.13
Telecommunication Services	5.88
Materials	4.60
	100.00	%

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 59

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 96.91%
Australia: 5.60%
AGL Energy Limited (Utilities, Multi-Utilities)		131,500	$	1,766,830
Arrium Limited (Materials, Metals & Mining) †(a)		3,063,400		48,710
Asaleo Care Limited (Consumer Staples, Personal Products)		1,262,800		1,861,885
Automotive Holdings Group Limited (Consumer Discretionary, Specialty Retail)		410,016		1,155,723
Bendigo Bank Limited (Financials, Banks)		272,500		2,016,762
Boart Longyear Limited (Industrials, Construction & Engineering) †		199,991		14,454
Cabcharge Australia Limited (Industrials, Commercial Services & Supplies) «		207,386		491,634
Challenger Financial Services Group Limited (Financials, Diversified Financial Services)		475,400		3,288,208
CSR Limited (Materials, Construction Materials)		754,900		1,958,719
Downer EDI Limited (Industrials, Commercial Services & Supplies)		518,900		1,466,387
Lendlease Corporation Limited (Financials, Real Estate Management & Development)		350,500		3,402,140
McMillan Shakespeare Limited (Industrials, Professional Services)		158,800		1,719,295
Metcash Limited (Consumer Staples, Food & Staples Retailing) †		1,164,200		1,724,923
Mincor Resources NL (Materials, Metals & Mining) †(i)		570,994		119,679
Mineral Resources Limited (Industrials, Commercial Services & Supplies) «		144,300		857,287
Myer Holdings Limited (Consumer Discretionary, Multiline Retail) «		1,059,500		857,644
Panoramic Resources Limited (Materials, Metals & Mining) †		368,800		31,986
Primary Health Care Limited (Health Care, Health Care Providers & Services)		339,000		950,648
Qantas Airways Limited (Industrials, Airlines)		821,700		1,829,162
Rio Tinto Limited (Materials, Metals & Mining)		58,300		1,883,073
Seven Group Holdings Limited (Industrials, Trading Companies & Distributors)		165,800		659,076
UGL Limited (Industrials, Construction & Engineering) †		152,800		378,796
				28,483,021
Austria: 1.13%
OMV AG (Energy, Oil, Gas & Consumable Fuels) «		62,900		1,753,142
Raiffeisen Bank International AG (Financials, Banks) †		81,200		1,086,425
RHI AG (Materials, Construction Materials) «		64,721		1,272,809
Voestalpine AG (Materials, Metals & Mining)		47,700		1,633,865
				5,746,241
Belgium: 0.81%
Delhaize Group SA (Consumer Staples, Food & Staples Retailing)		39,400		4,130,894
Brazil: 0.82%
Banco do Brasil SA (Financials, Banks)		309,500		1,410,633
Companhia de Saneamento de Minas Gerais SA (Utilities, Water Utilities)		72,400		510,503
JBS SA (Consumer Staples, Food Products)		805,600		2,229,356
				4,150,492
Canada: 1.54%
Magna International Incorporated (Consumer Discretionary, Auto Components)		131,600		5,343,882
Metro Incorporated (Consumer Staples, Food & Staples Retailing)		9,500		321,871
WestJet Airlines Limited (Industrials, Airlines)		120,000		2,154,116
				7,819,869

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

60 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
China: 2.77%
China BlueChemical Limited H Shares (Materials, Chemicals)		1,984,000	$	439,144
China Communications Services Corporation Limited H Shares (Telecommunication Services, Diversified Telecommunication Services)		2,836,000		1,332,098
China Petroleum & Chemical Corporation H Shares (Energy, Oil, Gas & Consumable Fuels)		2,970,000		2,025,673
China Railway Construction Corporation Limited H Shares (Industrials, Construction & Engineering)		1,747,500		2,183,602
Dongfeng Motor Group Company Limited H Shares (Consumer Discretionary, Automobiles)		1,730,000		1,927,973
PICC Property & Casualty Company Limited H Shares (Financials, Insurance)		1,225,000		2,235,370
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health Care, Health Care Providers & Services)		823,400		1,778,033
Shenzhen International Holdings Limited H Shares (Industrials, Transportation Infrastructure)		731,500		1,110,794
TCL Communication Technology Holdings Limited H Shares (Information Technology, Technology Hardware, Storage & Peripherals) «		1,586,000		1,069,477
				14,102,164
Czech Republic: 0.21%
CEZ AS (Utilities, Electric Utilities)		57,500		1,044,370
Denmark: 0.24%
Sydbank AS (Financials, Banks)		43,000		1,226,054
Finland: 0.39%
Tieto Oyj (Information Technology, IT Services)		72,000		1,974,732
France: 8.90%
Alstom SA (Industrials, Machinery) †		83,800		2,104,429
AXA SA (Financials, Insurance)		132,200		3,321,346
BNP Paribas SA (Financials, Banks)		49,100		2,718,718
Cie Generale des Establissements Michelin (Consumer Discretionary, Auto Components)		32,700		3,323,284
Credit Agricole SA (Financials, Banks) «		219,328		2,202,419
Electricite de France SA (Utilities, Electric Utilities) «		148,600		1,979,944
Engie SA (Utilities, Multi-Utilities)		171,900		2,648,058
Orange SA (Telecommunication Services, Diversified Telecommunication Services)		181,900		3,160,337
Renault SA (Consumer Discretionary, Automobiles)		40,500		3,800,557
Sanofi SA (Health Care, Pharmaceuticals)		100,200		8,215,518
SCOR SE (Financials, Insurance)		109,700		3,667,835
Societe Generale SA (Financials, Banks) «		39,000		1,605,120
Thales SA (Industrials, Aerospace & Defense)		22,200		1,923,207
Total SA (Energy, Oil, Gas & Consumable Fuels)		93,700		4,553,352
				45,224,124
Germany: 9.44%
Allianz AG (Financials, Insurance)		35,700		5,827,161
Aurubis AG (Materials, Metals & Mining)		25,900		1,353,132
BASF SE (Materials, Chemicals)		46,500		3,592,186
Bayer AG (Health Care, Pharmaceuticals)		51,400		4,897,199
Bayerische Motoren Werke AG (Consumer Discretionary, Automobiles)		31,200		2,634,498
Daimler AG (Consumer Discretionary, Automobiles)		75,700		5,170,734
Deutsche Bank AG (Financials, Capital Markets)		130,100		2,324,054
E.ON SE (Utilities, Multi-Utilities)		87,200		857,199
Hannover Rueck SE (Financials, Insurance)		16,300		1,838,104
Metro AG (Consumer Staples, Food & Staples Retailing)		108,100		3,551,794
Muenchener Rueckversicherungs Gesellschaft AG (Financials, Insurance)		23,200		4,358,607

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 61

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Germany (continued)
Siemens AG (Industrials, Industrial Conglomerates)		33,900	$	3,650,807
Stada Arzneimittel AG (Health Care, Pharmaceuticals)		56,900		3,030,007
Volkswagen AG (Consumer Discretionary, Automobiles)		22,600		3,488,993
Wincor Nixdorf AG (Information Technology, Technology Hardware, Storage & Peripherals) †		26,600		1,420,928
				47,995,403
Hong Kong: 1.96%
China Resources Cement Holdings Limited (Materials, Construction Materials)		3,186,000		1,045,498
Kingboard Laminates Holdings Limited (Information Technology, Electronic Equipment, Instruments & Components) (i)		2,204,000		1,162,874
Lee & Man Paper Manufacturing Limited (Materials, Paper & Forest Products)		2,338,000		1,546,481
Skyworth Digital Holdings Limited (Consumer Discretionary, Household Durables)		3,680,000		2,221,047
Wheelock & Company Limited (Financials, Real Estate Management & Development)		379,000		1,707,042
Yue Yuen Industrial Holdings Limited (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		611,500		2,305,691
				9,988,633
Hungary: 0.23%
Richter Gedeon (Health Care, Pharmaceuticals)		59,700		1,196,850
India: 0.56%
Gail India Limited GDR (Utilities, Gas Utilities)		1,800		58,860
Tata Motors Limited ADR (Consumer Discretionary, Automobiles)		83,800		2,806,462
				2,865,322
Ireland: 0.92%
C&C Group plc (Consumer Staples, Beverages)		240,000		1,103,660
Smurfit Kappa Group plc (Materials, Containers & Packaging)		130,200		3,552,140
				4,655,800
Israel: 1.08%
Bank Hapoalim Limited (Financials, Banks)		542,900		2,804,192
Teva Pharmaceutical Industries Limited (Health Care, Pharmaceuticals)		51,404		2,669,801
				5,473,993
Italy: 1.11%
Enel SpA (Utilities, Electric Utilities)		688,400		3,120,474
Mediobanca SpA (Financials, Capital Markets)		324,800		2,518,880
				5,639,354
Japan: 21.62%
Adeka Corporation (Materials, Chemicals)		155,300		2,128,915
Aisin Seiki Company Limited (Consumer Discretionary, Auto Components)		46,400		1,917,009
Anritsu Corporation (Information Technology, Electronic Equipment, Instruments & Components)		206,300		1,173,694
Aoyama Trading Company Limited (Consumer Discretionary, Specialty Retail)		24,800		886,874
Aozora Bank Limited (Financials, Banks)		588,000		2,001,860
Calsonic Kansei Corporation (Consumer Discretionary, Auto Components)		326,000		2,543,586
Central Glass Company Limited (Industrials, Building Products)		444,000		2,193,236
CKD Corporation (Industrials, Machinery)		171,200		1,501,198
DCM Holdings Company Limited (Consumer Discretionary, Specialty Retail)		143,100		1,046,742

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

62 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Japan (continued)
Denka Company Limited (Materials, Chemicals)		682,000	$	2,993,200
DIC Incorporated (Materials, Chemicals)		808,700		1,920,694
Eizo Corporation (Information Technology, Technology Hardware, Storage & Peripherals)		63,300		1,792,076
Fujikura Limited (Industrials, Electrical Equipment)		348,000		1,816,445
Geo Holdings Corporation (Consumer Discretionary, Specialty Retail)		91,700		1,263,685
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components)		327,800		1,515,633
Isuzu Motors Limited (Consumer Discretionary, Automobiles)		221,400		2,671,155
Itochu Corporation (Industrials, Trading Companies & Distributors)		200,700		2,522,003
Japan Airlines Company Limited (Industrials, Airlines)		80,700		2,770,043
JFE Holdings Incorporated (Materials, Metals & Mining)		70,000		942,837
KDDI Corporation (Telecommunication Services, Wireless Telecommunication Services)		102,800		3,005,044
Kureha Corporation (Materials, Chemicals)		271,000		1,010,728
Kyorin Company Limited (Health Care, Pharmaceuticals)		99,000		1,917,686
Maeda Road Construction Company Limited (Industrials, Construction & Engineering)		148,000		2,665,029
Makino Milling Machine Company Limited (Industrials, Machinery)		232,000		1,474,945
Marubeni Corporation (Industrials, Trading Companies & Distributors)		516,000		2,483,193
Matsumotokiyoshi Holdings Company Limited (Consumer Staples, Food & Staples Retailing)		60,500		3,310,877
Miraca Holdings Incorporated (Health Care, Health Care Providers & Services)		25,100		1,061,936
Mitsubishi Corporation (Industrials, Trading Companies & Distributors)		35,500		630,591
Mitsubishi Gas Chemical Company Incorporated (Materials, Chemicals)		556,400		3,160,479
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks)		657,100		3,286,242
Mizuho Financial Group Incorporated (Financials, Banks)		2,244,400		3,534,775
Namura Shipbuilding Company Limited (Industrials, Machinery)		108,800		695,628
Nippon Telegraph & Telephone Corporation (Telecommunication Services, Diversified Telecommunication Services)		234,000		10,259,358
Nissan Motor Company Limited (Consumer Discretionary, Automobiles)		419,800		4,264,912
Nisshinbo Holdings Incorporated (Industrials, Industrial Conglomerates)		147,200		1,516,731
NTT DOCOMO Incorporated (Telecommunication Services, Wireless Telecommunication Services)		98,600		2,474,461
Resona Holdings Incorporated (Financials, Banks)		1,013,300		3,856,094
Ricoh Company Limited (Information Technology, Technology Hardware, Storage & Peripherals)		166,000		1,448,106
Sankyu Incorporated (Industrials, Road & Rail)		370,000		1,984,738
Sojitz Corporation (Industrials, Trading Companies & Distributors)		1,160,700		2,599,482
Sumitomo Corporation (Industrials, Trading Companies & Distributors)		285,000		2,927,597
Sumitomo Metal Mining Company Limited (Materials, Metals & Mining)		108,000		1,114,769
Sumitomo Mitsui Financial Group Incorporated (Financials, Banks)		100,400		3,279,422
The Keiyo Bank Limited (Financials, Banks)		62,000		231,797
Toho Holdings Company Limited (Health Care, Health Care Providers & Services)		63,000		1,549,185
Toyo Ink SC Holding Company Limited (Materials, Chemicals)		375,000		1,608,570
Toyo Tire & Rubber Company Limited (Consumer Discretionary, Auto Components)		95,400		1,163,908
Tsumura & Company (Health Care, Pharmaceuticals)		83,700		1,976,570
UBE Industries Limited (Materials, Chemicals)		809,000		1,519,592
Yokohama Rubber Company Limited (Consumer Discretionary, Auto Components)		148,500		2,283,790
				109,897,120
Liechtenstein: 0.12%
VP Bank AG (Financials, Capital Markets)		6,558		599,721
Netherlands: 1.36%
Aegon NV (Financials, Insurance) «		334,000		1,716,908
ING Groep NV (Financials, Banks)		237,100		2,953,346
Koninklijke Ahold NV (Consumer Staples, Food & Staples Retailing)		100,600		2,228,578
				6,898,832

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 63

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Norway: 1.23%
Atea ASA (Information Technology, IT Services) (i)		84,900	$	761,153
DNB Nor ASA (Financials, Banks)		148,800		1,908,559
Marine Harvest ASA (Consumer Staples, Food Products)		97,500		1,628,186
Yara International ASA (Materials, Chemicals)		53,600		1,933,050
				6,230,948
Poland: 0.39%
Asseco Poland SA (Information Technology, Software)		101,800		1,424,673
KGHM Polska Miedz SA (Materials, Metals & Mining)		36,500		558,199
				1,982,872
Portugal: 0.28%
Sonae SGPS SA (Consumer Staples, Food & Staples Retailing)		1,362,100		1,401,875
Russia: 0.82%
Gazprom Neft Sponsored ADR (Energy, Oil, Gas & Consumable Fuels) (i)		150,014		1,860,174
Gazprom Neft Sponsored ADR (Energy, Oil, Gas & Consumable Fuels)		886		10,694
LUKOIL OAO ADR (Energy, Oil, Gas & Consumable Fuels)		60,400		2,323,588
				4,194,456
Singapore: 0.80%
DBS Group Holdings Limited (Financials, Banks)		227,000		2,555,007
United Overseas Bank Limited (Financials, Banks)		113,000		1,495,069
				4,050,076
South Africa: 0.37%
Barclays Africa Group Limited (Financials, Banks)		200,300		1,860,099
South Korea: 2.42%
BNK Financial Group Incorporated (Financials, Banks)		13,188		96,824
E-MART Limited (Consumer Staples, Food & Staples Retailing)		8,500		1,298,037
Industrial Bank of Korea (Financials, Banks)		192,500		1,841,332
KT&G Corporation (Consumer Staples, Tobacco)		31,300		3,348,506
Kwangju Bank (Financials, Banks)		13,510		103,156
SK Telecom Company Limited (Telecommunication Services, Wireless Telecommunication Services)		22,300		4,153,885
Woori Bank (Financials, Banks)		178,044		1,486,439
				12,328,179
Spain: 1.74%
Banco Santander Central Hispano SA (Financials, Banks)		429,681		2,051,461
Distribuidora Internacional SA (Consumer Staples, Food & Staples Retailing)		248,800		1,487,947
Gas Natural SDG SA (Utilities, Gas Utilities)		268,500		5,314,702
				8,854,110
Sweden: 2.05%
Boliden AB (Materials, Metals & Mining)		169,300		2,995,760
Nordea Bank AB (Financials, Banks)		177,300		1,720,637
Skandinaviska Enskilda Banken AB Class A (Financials, Banks)		144,900		1,388,835
Telefonaktiebolaget LM Ericsson Class B (Information Technology, Communications Equipment)		304,500		2,347,264

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

64 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Sweden (continued)
Telia Company AB (Telecommunication Services, Diversified Telecommunication Services)		417,000	$	1,954,184
				10,406,680
Switzerland: 6.12%
Aryzta AG (Consumer Staples, Food Products)		42,100		1,675,529
Baloise Holding AG (Financials, Insurance)		28,800		3,557,988
Credit Suisse Group AG (Financials, Capital Markets) «		273,395		3,746,117
Georg Fischer AG (Industrials, Machinery)		3,000		2,394,869
Swiss Life Holding AG (Financials, Insurance)		15,100		3,914,759
Swiss Reinsurance AG (Financials, Insurance)		75,700		6,800,815
UBS Group AG (Financials, Capital Markets)		158,900		2,455,437
Valiant Holding AG (Financials, Banks)		22,700		2,427,575
Zurich Insurance Group AG (Financials, Insurance)		17,100		4,137,374
				31,110,463
Taiwan: 0.42%
Pegatron Corporation (Information Technology, Technology Hardware, Storage & Peripherals)		1,035,000		2,154,895
Thailand: 0.99%
Bangchak Petroleum PCL (Energy, Oil, Gas & Consumable Fuels)		2,188,900		1,853,442
Thai Oil PCL (Energy, Oil, Gas & Consumable Fuels)		1,003,900		1,784,399
Thanachart Capital PCL (Financials, Banks)		1,481,500		1,409,965
				5,047,806
United Kingdom: 18.47%
3i Group plc (Financials, Capital Markets)		409,100		3,326,999
AMEC Foster Wheeler plc (Energy, Energy Equipment & Services)		83,300		526,988
AstraZeneca plc (Health Care, Pharmaceuticals)		60,300		3,517,873
Aviva plc (Financials, Insurance)		314,900		2,051,472
BAE Systems plc (Industrials, Aerospace & Defense)		939,800		6,582,565
Barclays plc (Financials, Banks)		715,000		1,888,880
Barratt Developments plc (Consumer Discretionary, Household Durables)		318,600		2,731,750
Bellway plc (Consumer Discretionary, Household Durables)		51,700		2,046,462
Berkeley Group Holdings plc (Consumer Discretionary, Household Durables)		58,800		2,789,087
Bovis Homes Group plc (Consumer Discretionary, Household Durables)		108,600		1,588,637
BP plc (Energy, Oil, Gas & Consumable Fuels)		1,298,500		6,718,737
BT Group plc (Telecommunication Services, Diversified Telecommunication Services)		252,200		1,617,432
Carillion plc (Industrials, Construction & Engineering) «		496,300		1,993,277
Centrica plc (Utilities, Multi-Utilities)		898,500		2,652,135
Chemring Group plc (Industrials, Aerospace & Defense)		341,066		681,696
Crest Nicholson Holdings plc (Consumer Discretionary, Household Durables)		264,876		2,255,762
Darty plc (Consumer Discretionary, Specialty Retail)		226,400		551,211
Debenhams plc (Consumer Discretionary, Multiline Retail)		1,238,200		1,326,180
easyJet plc (Industrials, Airlines)		103,400		2,295,811
Firstgroup plc (Industrials, Road & Rail) †		952,400		1,491,140
GlaxoSmithKline plc (Health Care, Pharmaceuticals)		110,500		2,312,616
Home Retail Group plc (Consumer Discretionary, Internet & Catalog Retail)		164,100		392,875
International Consolidated Airlines Group SA (Industrials, Airlines)		182,900		1,418,556
J Sainsbury plc (Consumer Staples, Food & Staples Retailing)		1,211,800		4,712,471
Lloyds Banking Group plc (Financials, Banks)		2,460,500		2,566,551

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 65

INTERNATIONAL VALUE PORTFOLIO

Security name						Shares			Value
United Kingdom (continued)
Marks & Spencer Group plc (Consumer Discretionary, Multiline Retail)							379,900		$	2,089,216
Marston’s plc (Consumer Discretionary, Hotels, Restaurants & Leisure)							558,800			1,235,859
Meggitt plc (Industrials, Aerospace & Defense)							392,800			2,207,378
Mitchells & Butlers plc (Consumer Discretionary, Hotels, Restaurants & Leisure)							236,800			995,640
Mitie Group plc (Industrials, Commercial Services & Supplies) «							539,300			2,200,345
Mondi plc (Materials, Paper & Forest Products)							142,300			2,774,108
Old Mutual plc (Financials, Insurance)							982,800			2,535,143
Paragon Group of Companies plc (Financials, Thrifts & Mortgage Finance)							328,000			1,468,881
Premier Foods plc (Consumer Staples, Food Products) †							73,926			45,505
Redrow plc (Consumer Discretionary, Household Durables)							388,600	��		2,368,383
Royal Dutch Shell plc Class B (Energy, Oil, Gas & Consumable Fuels)							287,900			6,923,951
Royal Mail plc (Industrials, Air Freight & Logistics)							290,000			2,272,316
Smiths Group plc (Industrials, Industrial Conglomerates)							46,300			752,397
Standard Chartered plc (Financials, Banks)							253,000			1,939,527
Tullett Prebon plc (Financials, Capital Markets)							279,500			1,360,174
Vesuvius plc (Industrials, Machinery)							145,400			726,114
William Morrison Supermarkets plc (Consumer Staples, Food & Staples Retailing)							679,700			1,951,167
										93,883,267
Total Common Stocks (Cost $547,156,375)										492,618,715
	Dividend yield
Preferred Stocks: 0.19%
Brazil: 0.19%
Banco do Estado do Rio Grande do Sul SA (Financials, Banks) ±		8.95	%				349,800			808,288
Companhia Energetica de Minas Gerais SA (Utilities, Water Utilities) ±		8.48					109,056			169,910
Total Preferred Stocks (Cost $3,545,600)										978,198
				Expiration date
Rights: 0.00%
Brazil: 0.00%
Companhia de Saneamento de Minas Gerais (Utilities, Electric Utilities) †(a)					6-20-2016		3,288			6,779
Total Rights (Cost $0)										6,779
	Yield
Short-Term Investments: 3.32%
Investment Companies: 3.32%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45					14,316,539			14,316,539
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					2,530,851			2,530,851
Total Short-Term Investments (Cost $16,847,390)										16,847,390

Total investments in securities (Cost $567,549,365)*	100.42	%		510,451,082
Other assets and liabilities, net	(0.42	)		(2,132,112	)
Total net assets	100.00	%	$	508,318,970

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

66 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

† Non-income-earning security

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

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

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

± 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 Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $568,923,013 and unrealized gains (losses) consists of:

Gross unrealized gains	$	53,695,416
Gross unrealized losses		(112,167,347	)
Net unrealized losses	$	(58,471,931	)

The following table shows the percent of total long-term investments by sector as of May 31, 2016:

Financials	27.13	%
Consumer Discretionary	14.88
Industrials	14.85
Materials	8.74
Consumer Staples	7.70
Health Care	7.11
Energy	6.15
Telecommunication Services	5.66
Utilities	4.08
Information Technology	3.70
	100.00	%

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 67

LARGE COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 98.50%
Consumer Discretionary: 7.57%
Hotels, Restaurants & Leisure: 1.48%
Norwegian Cruise Line Holdings Limited †		25,250	$	1,171,850
Household Durables: 2.04%
Harman International Industries Incorporated		11,707		915,956
Newell Rubbermaid Incorporated		14,635		697,943
				1,613,899
Leisure Products: 1.26%
Mattel Incorporated		31,393		1,000,809
Media: 1.21%
Scripps Networks Interactive Incorporated Class A		14,827		953,969
Multiline Retail: 0.63%
JCPenny Company Incorporated †«		64,446		502,034
Textiles, Apparel & Luxury Goods: 0.95%
Skechers U.S.A. Incorporated Class A †		24,055		749,794
Consumer Staples: 6.63%
Food & Staples Retailing: 2.68%
CVS Health Corporation		22,018		2,123,636
Food Products: 2.16%
ConAgra Foods Incorporated		17,627		805,554
TreeHouse Foods Incorporated †		9,540		903,438
				1,708,992
Household Products: 1.26%
The Procter & Gamble Company		12,296		996,468
Personal Products: 0.53%
Herbalife Limited †«		7,190		416,229
Energy: 11.08%
Energy Equipment & Services: 0.79%
Baker Hughes Incorporated		7,892		366,031
Noble Corporation plc «		30,604		255,237
				621,268
Oil, Gas & Consumable Fuels: 10.29%
Chevron Corporation		11,430		1,154,430
ConocoPhillips		19,177		839,761
Exxon Mobil Corporation		29,377		2,615,141
Kinder Morgan Incorporated		69,137		1,249,997
Noble Energy Incorporated		35,551		1,270,948

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

68 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

LARGE COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Valero Energy Corporation		18,516	$	1,012,825
				8,143,102
Financials: 28.83%
Banks: 10.71%
Bank of America Corporation		98,811		1,461,415
BOK Financial Corporation «		20,150		1,284,361
Citigroup Incorporated		31,329		1,458,992
First Republic Bank		11,924		863,417
JPMorgan Chase & Company		32,086		2,094,253
KeyCorp		31,683		406,176
SunTrust Banks Incorporated		20,655		905,102
				8,473,716
Capital Markets: 4.62%
Affiliated Managers Group Incorporated †		5,309		921,218
Ameriprise Financial Incorporated		16,468		1,674,302
Goldman Sachs Group Incorporated		6,635		1,058,150
				3,653,670
Insurance: 7.43%
American International Group Incorporated		28,858		1,670,301
Arthur J. Gallagher & Company		21,660		1,046,828
Chubb Limited		7,121		901,590
Endurance Specialty Holdings Limited		11,667		792,423
MetLife Incorporated		32,223		1,467,758
				5,878,900
REITs: 6.07%
Alexandria Real Estate Equities Incorporated		18,859		1,827,437
Equity Residential		8,391		580,741
Pebblebrook Hotel Trust		23,015		580,438
Prologis Incorporated		18,228		866,377
VEREIT Incorporated		98,744		946,955
				4,801,948
Health Care: 12.74%
Biotechnology: 3.40%
AbbVie Incorporated		10,500		660,765
Baxalta Incorporated		33,576		1,518,642
Gilead Sciences Incorporated		5,874		511,390
				2,690,797
Health Care Equipment & Supplies: 1.05%
Medtronic plc		10,277		827,093

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 69

LARGE COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Health Care Providers & Services: 1.81%
Cigna Corporation		5,586	$	715,622
HCA Holdings Incorporated †		9,201		717,862
				1,433,484
Pharmaceuticals: 6.48%
Allergan plc †		4,409		1,039,422
Johnson & Johnson		7,673		864,670
Mallinckrodt plc †		12,316		780,342
Merck & Company Incorporated		16,634		935,829
Pfizer Incorporated		43,334		1,503,690
				5,123,953
Industrials: 10.72%
Aerospace & Defense: 2.19%
Curtiss-Wright Corporation		11,704		974,007
Raytheon Company		5,865		760,515
				1,734,522
Airlines: 0.57%
United Continental Holdings Incorporated †		9,972		449,637
Electrical Equipment: 0.93%
Eaton Corporation plc		11,922		734,753
Industrial Conglomerates: 1.66%
General Electric Company		43,387		1,311,589
Machinery: 1.67%
Stanley Black & Decker Incorporated		11,659		1,319,566
Professional Services: 1.01%
Robert Half International Incorporated		19,238		796,799
Road & Rail: 1.65%
Hertz Global Holdings Incorporated †		51,571		499,723
Norfolk Southern Corporation		9,605		807,396
				1,307,119
Trading Companies & Distributors: 1.04%
HD Supply Holdings Incorporated †		23,467		828,385
Information Technology: 11.06%
Electronic Equipment, Instruments & Components: 2.54%
Synnex Corporation		14,052		1,280,137
TE Connectivity Limited		12,197		731,820
				2,011,957

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

70 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

LARGE COMPANY VALUE PORTFOLIO

Security name	Shares			Value
Internet Software & Services: 1.41%
Alphabet Incorporated Class C †		1,511		$	1,111,673
IT Services: 1.04%
Alliance Data Systems Corporation †		3,690			819,881
Semiconductors & Semiconductor Equipment: 2.68%
NXP Semiconductors NV †		14,944			1,412,059
Skyworks Solutions Incorporated		10,610			708,324
					2,120,383
Software: 0.58%
Citrix Systems Incorporated †		5,365	��		455,596
Technology Hardware, Storage & Peripherals: 2.81%
Apple Incorporated		7,084			707,408
NCR Corporation †		49,182			1,518,740
					2,226,148
Materials: 3.37%
Chemicals: 1.88%
Cabot Corporation		11,987			547,926
FMC Corporation		19,782			939,447
					1,487,373
Containers & Packaging: 1.49%
Crown Holdings Incorporated †		17,198			897,220
WestRock Company		7,162			283,687
					1,180,907
Telecommunication Services: 2.27%
Diversified Telecommunication Services: 2.27%
AT&T Incorporated		22,762			891,132
Verizon Communications Incorporated		17,752			903,577
					1,794,709
Utilities: 4.23%
Electric Utilities: 3.13%
Duke Energy Corporation		15,256			1,193,477
The Southern Company		25,977			1,284,303
					2,477,780
Gas Utilities: 1.10%
Atmos Energy Corporation		11,944			870,718
Total Common Stocks (Cost $66,303,876)					77,925,106

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 71

LARGE COMPANY VALUE PORTFOLIO

Security name	Yield			Shares		Value
Short-Term Investments: 3.64%
Investment Companies: 3.64%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		1,759,295	$	1,759,295
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			1,123,879		1,123,879
Total Short-Term Investments (Cost $2,883,174)							2,883,174

Total investments in securities (Cost $69,187,050) *	102.14	%		80,808,280
Other assets and liabilities, net	(2.14	)		(1,693,450	)
Total net assets	100.00	%	$	79,114,830

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $70,181,391 and unrealized gains (losses) consists of:

Gross unrealized gains	$	13,775,938
Gross unrealized losses		(3,149,049	)
Net unrealized gains	$	10,626,889

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

72 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 97.39%
Consumer Discretionary: 14.01%
Auto Components: 1.32%
Gentherm Incorporated †		324,905	$	11,885,025
Tower International Incorporated		178,475		3,867,553
				15,752,578
Diversified Consumer Services: 1.01%
Houghton Mifflin Harcourt Company †		703,180		12,094,696
Hotels, Restaurants & Leisure: 3.44%
Del Taco Restaurants Incorporated †		660,890		6,172,713
Extended Stay America Incorporated		681,120		9,712,771
Krispy Kreme Doughnuts Incorporated †		537,600		11,493,888
SeaWorld Entertainment Incorporated «		313,480		5,473,361
Zoe’s Kitchen Incorporated †«		226,470		8,361,272
				41,214,005
Household Durables: 0.99%
Tempur-Pedic International Incorporated †		96,410		5,612,990
William Lyon Homes Class A †«		388,969		6,309,077
				11,922,067
Leisure Products: 0.30%
Malibu Boats Incorporated Class A †		262,490		3,569,864
Media: 2.44%
IMAX Corporation †		481,153		16,041,641
Lions Gate Entertainment Corporation «		357,164		7,964,757
Media General Incorporated †		289,410		5,163,074
				29,169,472
Specialty Retail: 3.80%
Burlington Stores Incorporated †		188,080		11,352,509
Chico’s FAS Incorporated		525,617		5,702,944
Dick’s Sporting Goods Incorporated		241,689		10,368,458
Monro Muffler Brake Incorporated		124,471		7,835,449
Party City Holdco Incorporated †		730,240		10,179,546
				45,438,906
Textiles, Apparel & Luxury Goods: 0.71%
Kate Spade & Company †		388,780		8,498,731
Consumer Staples: 2.60%
Food Products: 1.78%
Amplify Snack Brands Incorporated †«		723,199		9,437,747
WhiteWave Foods Company †		265,936		11,874,042
				21,311,789

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 73

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares		Value
Household Products: 0.82%
Central Garden & Pet Company †		60,890	$	1,137,425
Central Garden & Pet Company Class A †		475,575		8,669,732
				9,807,157
Energy: 2.69%
Oil, Gas & Consumable Fuels: 2.69%
Diamondback Energy Incorporated †		110,139		10,017,142
GasLog Limited «		483,053		6,014,010
Memorial Resource Development Corporation †		354,153		5,595,617
QEP Resources Incorporated		568,950		10,599,539
				32,226,308
Financials: 9.41%
Banks: 2.55%
ServisFirst Bancshares Incorporated «		165,480		8,611,579
Signature Bank †		69,675		9,406,125
SVB Financial Group †		113,342		12,490,288
				30,507,992
Capital Markets: 3.25%
Evercore Partners Incorporated Class A		301,814		15,694,328
Stifel Financial Corporation †		258,781		9,776,746
Virtu Financial Incorporated Class A		436,538		7,774,742
Virtus Investment Partners Incorporated		69,078		5,623,640
				38,869,456
Insurance: 1.17%
Argo Group International Holdings Limited		265,607		13,984,214
REITs: 1.19%
QTS Realty Trust Incorporated Class A		275,695		14,245,161
Thrifts & Mortgage Finance: 1.25%
Essent Group Limited †		684,644		14,966,318
Health Care: 23.15%
Biotechnology: 3.91%
Alder Biopharmaceuticals Incorporated †«		180,740		5,434,852
Alnylam Pharmaceuticals Incorporated †		100,665		7,219,694
Cepheid Incorporated †		330,687		9,262,543
Flexion Therapeutics Incorporated †		379,627		6,620,695
Intrexon Corporation «		148,882		4,576,633
Portola Pharmaceuticals Incorporated †		214,134		5,884,402
Radius Health Incorporated †«		112,560		4,081,426
Tesaro Incorporated †«		80,082		3,707,797
				46,788,042

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

74 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares		Value
Health Care Equipment & Supplies: 8.29%
Accuray Incorporated †«		1,254,478	$	6,836,905
Analogic Corporation		128,080		10,502,560
Atricure Incorporated †		452,413		6,555,464
Cerus Corporation †«		1,721,148		9,569,583
Dexcom Incorporated †		154,016		9,932,492
Inogen Incorporated †		260,165		12,420,277
LDR Holding Corporation †		411,724		8,658,556
Nevro Corporation †«		177,490		12,374,603
Novocure Limited †«		412,470		4,590,791
The Spectranetics Corporation †«		491,654		9,007,101
Wright Medical Group NV †		452,394		8,749,300
				99,197,632
Health Care Providers & Services: 6.49%
Adeptus Health Incorporated Class A †«		160,667		11,487,691
AMN Healthcare Services Incorporated †		333,325		12,446,356
Capital Senior Living Corporation †		536,030		9,803,989
HealthEquity Incorporated †		538,630		13,902,040
LifePoint Hospitals Incorporated †		146,046		9,681,389
Surgery Partners Incorporated †		555,680		7,643,378
Teladoc Incorporated †«		376,900		4,307,967
The Ensign Group Incorporated		420,510		8,347,124
				77,619,934
Health Care Technology: 1.80%
Cotiviti Holdings Incorporated †		260,329		4,753,608
Evolent Health Incorporated Class A †«		602,380		9,228,462
Medidata Solutions Incorporated †		165,162		7,587,542
				21,569,612
Life Sciences Tools & Services: 1.51%
ICON plc ADR †		256,392		18,060,252
Pharmaceuticals: 1.15%
Cempra Holdings Incorporated †«		268,840		5,051,504
Pacira Pharmaceuticals Incorporated †«		188,200		8,753,182
				13,804,686
Industrials: 16.42%
Air Freight & Logistics: 1.30%
Hub Group Incorporated Class A †		388,019		15,528,520
Building Products: 5.00%
A.O. Smith Corporation		177,204		14,583,889
Apogee Enterprises Incorporated		314,635		14,227,795
Masonite International Corporation †		130,680		9,125,384
NCI Building Systems Incorporated †		779,634		12,552,107
PGT Incorporated †		870,941		9,336,488
				59,825,663

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 75

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares			Value
Commercial Services & Supplies: 3.82%
Copart Incorporated †		333,795		$	16,526,190
KAR Auction Services Incorporated		259,840			10,663,834
Mobile Mini Incorporated		279,215			9,618,957
West Corporation		423,880			8,943,868
					45,752,849
Construction & Engineering: 1.69%
Chicago Bridge & Iron Company NV		254,619			9,736,631
Granite Construction Incorporated		243,290			10,444,440
					20,181,071
Machinery: 0.91%
Wabash National Corporation †		770,303			10,922,897
Professional Services: 1.98%
On Assignment Incorporated †		341,274			12,855,792
RPX Corporation †		437,894			4,400,835
TrueBlue Incorporated †		325,860	��		6,455,287
					23,711,914
Road & Rail: 1.49%
Genesee & Wyoming Incorporated Class A †		166,147			9,980,450
Swift Transportation Company †«		502,826			7,834,029
					17,814,479
Trading Companies & Distributors: 0.23%
Siteone Landscape Supply Incorporated †		99,688			2,804,223
Information Technology: 27.06%
Communications Equipment: 1.35%
Ciena Corporation †		420,890			7,348,739
Infinera Corporation †		673,912			8,834,986
					16,183,725
Electronic Equipment, Instruments & Components: 0.74%
OSI Systems Incorporated †		165,436			8,814,430
Internet Software & Services: 6.27%
2U Incorporated †«		431,071			12,001,017
Benefitfocus Incorporated †«		273,850			10,053,034
Cornerstone OnDemand Incorporated †		366,620			14,668,466
Hortonworks Incorporated †«		592,020			6,914,794
Marketo Incorporated †		429,220			15,121,421
Pandora Media Incorporated †«		528,370			6,229,482
Shopify Incorporated Class A †«		344,870			10,101,242
					75,089,456

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

76 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

SMALL COMPANY GROWTH PORTFOLIO

Security name				Shares		Value
IT Services: 2.88%
Acxiom Corporation †					605,560	$	12,825,761
Maximus Incorporated					190,500		10,982,325
Vantiv Incorporated Class A †					197,360		10,612,047
							34,420,133
Semiconductors & Semiconductor Equipment: 6.17%
Applied Micro Circuits Corporation †					1,207,237		7,943,619
Cypress Semiconductor Corporation					1,143,754		12,158,105
FormFactor Incorporated †					1,103,995		7,915,644
Microsemi Corporation †					394,190		13,335,448
Nanometrics Incorporated †					324,399		6,040,309
Silicon Motion Technology Corporation «					246,514		10,957,547
Teradyne Incorporated					780,857		15,468,777
							73,819,449
Software: 9.65%
Cadence Design Systems Incorporated †					614,135		15,181,417
CyberArk Software Limited †«					239,950		10,898,529
PTC Incorporated †					414,545		14,815,838
Qlik Technologies Incorporated †					530,453		15,224,001
Secureworks Corporation Class A †«					273,420		3,777,297
SS&C Technologies Holdings Incorporated					349,948		21,553,297
Synchronoss Technologies Incorporated †					220,910		7,791,496
The Rubicon Project Incorporated †					652,224		9,555,082
Ultimate Software Group Incorporated †					45,881		9,381,747
Zendesk Incorporated †					296,733		7,266,991
							115,445,695
Materials: 2.05%
Chemicals: 0.17%
Calgon Carbon Corporation					133,782		1,990,676
Metals & Mining: 0.91%
Steel Dynamics Incorporated					440,383		10,873,056
Paper & Forest Products: 0.97%
Boise Cascade Company †					507,067		11,642,258
Total Common Stocks (Cost $1,086,280,944)							1,165,439,366
	Yield
Short-Term Investments: 16.01%
Investment Companies: 16.01%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		151,177,536		151,177,536
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			40,370,488		40,370,488
Total Short-Term Investments (Cost $191,548,024)							191,548,024

Total investments in securities (Cost $1,277,828,968) *	113.40	%		1,356,987,390
Other assets and liabilities, net	(13.40	)		(160,390,950	)
Total net assets	100.00	%	$	1,196,596,440

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 77

SMALL COMPANY GROWTH PORTFOLIO

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $1,301,744,639 and unrealized gains (losses) consists of:

Gross unrealized gains	$	153,262,207
Gross unrealized losses		(98,019,456	)
Net unrealized gains	$	55,242,751

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

78 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

SMALL COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 98.11%
Consumer Discretionary: 14.49%
Auto Components: 1.80%
American Axle & Manufacturing Holdings Incorporated †		135,919	$	2,265,764
Metaldyne Performance Group Incorporated		101,000		1,646,300
				3,912,064
Automobiles: 1.16%
Thor Industries Incorporated		38,950		2,531,750
Hotels, Restaurants & Leisure: 0.66%
ClubCorp Holdings Incorporated		119,494		1,442,293
Household Durables: 1.25%
Beazer Homes Incorporated †		153,160		1,202,306
WCI Communities Incorporated †		87,500		1,505,875
				2,708,181
Media: 2.72%
Lions Gate Entertainment Corporation		128,600		2,867,780
Scholastic Corporation		78,023		3,046,798
				5,914,578
Specialty Retail: 4.92%
Asbury Automotive Group Incorporated †		32,109		1,801,315
Ascena Retail Group Incorporated †		196,620		1,419,596
GNC Holdings Incorporated Class A		61,770		1,609,109
Outerwall Incorporated «		54,010		2,227,913
Rent-A-Center Incorporated		116,600		1,535,622
Urban Outfitters Incorporated †		74,250		2,118,353
				10,711,908
Textiles, Apparel & Luxury Goods: 1.98%
G-III Apparel Group Limited †		53,900		2,108,568
Oxford Industries Incorporated		34,700		2,198,939
				4,307,507
Consumer Staples: 2.42%
Food & Staples Retailing: 1.17%
SUPERVALU Incorporated †		247,150		1,144,305
United Natural Foods Incorporated †		38,020		1,416,625
				2,560,930
Food Products: 1.25%
Darling Ingredients Incorporated †		176,810		2,714,034
Energy: 6.42%
Energy Equipment & Services: 1.09%
RPC Incorporated «		160,300		2,364,425

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 79

SMALL COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Oil, Gas & Consumable Fuels: 5.33%
Callon Petroleum Company †		187,300	$	2,133,347
Carrizo Oil & Gas Incorporated †		50,600		1,948,100
Delek US Holdings Incorporated		122,500		1,688,050
Parsley Energy Incorporated Class A †		75,800		1,976,106
RSP Permian Incorporated †		58,540		1,927,722
Scorpio Tankers Incorporated		327,000		1,922,760
				11,596,085
Financials: 39.49%
Banks: 18.42%
BancorpSouth Incorporated		103,592		2,474,813
BankUnited Incorporated		72,150		2,388,165
Cathay General Bancorp		73,000		2,249,860
ConnectOne Bancorp Incorporated		81,120		1,284,941
Customers Bancorp Incorporated †		59,400		1,597,266
FCB Financial Holdings Class A †		63,600		2,351,292
Great Western Bancorp Incorporated		100,940		3,433,979
Pinnacle Financial Partners Incorporated		44,960		2,211,133
PrivateBancorp Incorporated		67,597		2,997,927
Renasant Corporation		75,600		2,601,396
Sterling BanCorp		163,800		2,696,148
Talmer Bancorp Incorporated Class A		155,400		3,098,676
Umpqua Holdings Corporation		130,600		2,088,294
Webster Financial Corporation		70,437		2,758,313
Western Alliance Bancorp †		89,978		3,392,171
Wintrust Financial Corporation		45,977		2,449,195
				40,073,569
Capital Markets: 2.15%
HFF Incorporated Class A		66,400		2,138,080
Stifel Financial Corporation †		67,193		2,538,552
				4,676,632
Consumer Finance: 0.86%
PRA Incorporated †		67,770		1,864,353
Insurance: 5.28%
American Equity Investment Life Holding Company		101,108		1,638,961
Employers Holdings Incorporated		39,034		1,165,165
Horace Mann Educators Corporation		71,710		2,442,443
Kemper Corporation		50,310		1,625,516
OneBeacon Insurance Group Limited Class A		103,456		1,346,997
Primerica Incorporated «		58,063		3,257,915
				11,476,997
Real Estate Management & Development: 0.75%
Alexander & Baldwin Incorporated		43,581		1,641,260

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

80 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

SMALL COMPANY VALUE PORTFOLIO

Security name	Shares		Value
REITs: 12.03%
Brandywine Realty Trust		162,900	$	2,572,191
Corporate Office Properties Trust		100,500		2,716,515
Equity Commonwealth †		106,100		3,065,229
Four Corners Property Trust Incorporated		122,100		2,373,624
Highwoods Properties Incorporated		54,100		2,632,506
Kite Realty Group Trust		79,200		2,128,104
National Health Investors Incorporated		32,400		2,262,492
Parkway Properties Incorporated		130,297		2,273,683
Ramco-Gershenson Properties Trust		150,221		2,705,480
Sabra Health Care REIT Incorporated		82,600		1,729,644
Sunstone Hotel Investors Incorporated		143,180		1,723,887
				26,183,355
Health Care: 3.82%
Health Care Equipment & Supplies: 0.71%
Merit Medical Systems Incorporated †		82,810		1,554,344
Health Care Providers & Services: 3.11%
Kindred Healthcare Incorporated		155,700		1,848,159
Molina Healthcare Incorporated †		57,260		2,773,102
Select Medical Holdings Corporation †		168,420		2,133,881
				6,755,142
Industrials: 7.78%
Commercial Services & Supplies: 1.03%
Quad Graphics Incorporated		116,460		2,237,197
Construction & Engineering: 2.82%
Argan Incorporated		62,300		2,161,810
KBR Incorporated		116,490		1,694,930
Tutor Perini Corporation †		100,795		2,279,983
				6,136,723
Electrical Equipment: 1.29%
Generac Holdings Incorporated †		74,060		2,807,615
Machinery: 1.51%
Chart Industries Incorporated †		83,380		2,164,545
NN Incorporated «		67,190		1,119,385
				3,283,930
Trading Companies & Distributors: 1.13%
Air Lease Corporation		81,800		2,458,090
Information Technology: 14.87%
Communications Equipment: 1.85%
ARRIS International plc †		92,313		2,224,743
NetScout Systems Incorporated †		73,530		1,788,830
				4,013,573

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 81

SMALL COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Electronic Equipment, Instruments & Components: 3.75%
Anixter International Incorporated †		28,320	$	1,704,864
Belden Incorporated		35,040		2,266,037
Jabil Circuit Incorporated		113,640		2,168,251
VeriFone Systems Incorporated †		76,800		2,027,520
				8,166,672
Internet Software & Services: 1.73%
Blucora Incorporated †		195,660		1,757,027
IAC/InterActive Corp		35,940		2,008,327
				3,765,354
IT Services: 1.01%
Cardtronics Incorporated †		56,110		2,204,562
Semiconductors & Semiconductor Equipment: 3.76%
Cirrus Logic Incorporated †		65,270		2,349,720
Integrated Device Technology Incorporated †		92,580		2,161,743
Veeco Instruments Incorporated †		73,530		1,308,099
Xcerra Corporation †		362,971		2,370,201
				8,189,763
Software: 1.09%
EPIQ Systems Incorporated		42,760		651,235
Mentor Graphics Corporation		79,807		1,711,062
				2,362,297
Technology Hardware, Storage & Peripherals: 1.68%
Avid Technology Incorporated †		219,320		1,304,954
Super Micro Computer Incorporated †		89,220		2,341,133
				3,646,087
Materials: 3.98%
Chemicals: 2.96%
A. Schulman Incorporated		84,600		2,141,226
Cabot Corporation		42,400		1,938,104
Chemtura Corporation †		88,513		2,361,527
				6,440,857
Metals & Mining: 1.02%
Ferroglobe plc		243,240		2,218,349
Utilities: 4.84%
Electric Utilities: 2.86%
El Paso Electric Company		44,141		1,971,337
PNM Resources Incorporated		60,087		1,973,257
Portland General Electric Company		55,124		2,270,006
				6,214,600

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

82 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

SMALL COMPANY VALUE PORTFOLIO

Security name						Shares		Value
Gas Utilities: 0.51%
Southwest Gas Corporation							16,060	$	1,115,046
Multi-Utilities: 1.47%
Avista Corporation							79,710		3,205,936
Total Common Stocks (Cost $191,380,274)									213,456,058
				Expiration date
Warrants: 0.00%
Health Care: 0.00%
Health Care Equipment & Supplies: 0.00%
EnteroMedics Incorporated †(a)					6-13-2016		9,104		0
Total Warrants (Cost $0)									0
	Yield
Short-Term Investments: 4.98%
Investment Companies: 4.98%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%				5,965,825		5,965,825
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					4,875,803		4,875,803
Total Short-Term Investments (Cost $10,841,628)									10,841,628

Total investments in securities (Cost $202,221,902) *	103.09	%		224,297,686
Other assets and liabilities, net	(3.09	)		(6,727,916	)
Total net assets	100.00	%	$	217,569,770

† Non-income-earning security

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

(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 Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $202,899,156 and unrealized gains (losses) consists of:

Gross unrealized gains	$	34,100,284
Gross unrealized losses		(12,701,754	)
Net unrealized gains	$	21,398,530

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 83

CORE BOND PORTFOLIO

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: 30.53%
FHLMC		3.00	%		2-15-2045	$	19,734,107	$	20,112,137			0.46	%
FHLMC		1.13-7.00			8-1-2017 to 4-1-2046		181,825,901		193,227,923			4.47
FHLMC		3.50			7-1-2032		15,970,400		16,975,238			0.39
FHLMC		3.50			4-1-2044		16,257,869		17,198,235			0.40
FHLMC		3.50			12-1-2045		14,237,054		14,991,659			0.35
FHLMC		3.50			2-1-2046		15,782,716		16,620,139			0.38
FHLMC %%		3.50			8-16-2046		67,700,000		70,571,956			1.63
FHLMC		4.00			8-1-2044		20,216,471		21,888,997			0.50
FHLMC		4.00			10-1-2045		14,278,557		15,358,973			0.35
FHLMC %%		4.00			7-14-2046		22,600,000		24,070,270			0.55
FHLMC Series 300 Class 300		3.00			1-15-2043		18,852,363		19,215,529			0.44
FNMA		0.00-8.16			4-1-2017 to 6-13-2046		381,070,503		404,080,072			9.30
FNMA		3.00			10-25-2042		17,620,845		17,947,513			0.41
FNMA		3.00			6-1-2043		14,511,441		14,929,579			0.34
FNMA		3.50			5-1-2031		12,277,838		13,123,375			0.30
FNMA		3.50			11-1-2035		11,089,398		11,759,608			0.27
FNMA		3.50			6-1-2045		18,189,829		19,162,602			0.44
FNMA		3.50			8-1-2045		11,133,388		11,728,810			0.27
FNMA		3.50			4-1-2046		18,707,016		19,752,827			0.46
FNMA %%		3.50			8-16-2046		25,300,000		26,402,922			0.61
FNMA		4.00			9-1-2043		11,153,542		12,034,251			0.28
FNMA		4.00			12-1-2044		12,945,627		14,049,558			0.32
FNMA		4.00			6-1-2045		13,076,370		14,191,462			0.33
FNMA		4.50			2-1-2044		14,393,935		15,894,690			0.37
GNMA		3.00-5.00			3-15-2041 to 6-21-2046		66,418,696		71,336,967			1.64
GNMA		3.00			8-23-2046		75,600,000		77,918,180			1.80
GNMA %%		3.50			8-23-2046		96,100,000		101,149,046			2.33
GNMA %%		4.00			2-20-2046		32,980,001		35,208,766			0.81
Other securities									14,591,330			0.33
Total Agency Securities (Cost $1,319,170,583)									1,325,492,614			30.53
Asset-Backed Securities: 13.21%
Ally Master Owner Trust Series 2012-5 Class A		1.54			9-15-2019		13,065,000		13,080,442			0.30
Capital Auto Receivables Asset Trust		1.39-2.01			2-20-2018 to 10-20-2020		74,929,605		75,085,096			1.72
Capital One Multi Asset Execution Trust 2016-A1 Class A1 ±		0.90			2-15-2022		17,837,000		17,898,939			0.41
Discover Card Execution Note Series 2016-A2 Class A2 ±		0.97			9-15-2021		16,036,000		16,130,398			0.37
Ford Credit Auto Owner Trust		0.57-2.44			10-15-2017 to 1-15-2027		29,620,260		29,897,230			0.68
Ford Credit Auto Owner Trust Series 2016-1 Class A		2.31			8-15-2027		14,875,000		15,006,009	��		0.35
SLM Student Loan Trust		0.68-4.37			4-25-2019 to 1-25-2072		133,292,178		128,674,193			2.96
SMB Private Education Loan Trust		1.03-2.98			7-15-2022 to 5-15-2031		64,510,684		64,383,276			1.49
Synchrony Credit Card Master Note Trust Series 2016-2 Class A		2.21			5-15-2024		12,411,000		12,410,516			0.29
Other securities									201,066,440			4.64
Total Asset-Backed Securities (Cost $575,588,312)									573,632,539			13.21

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

84 Wells Fargo Allocation Funds Summary portfolio of investments—May 31, 2016

CORE BOND PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Corporate Bonds and Notes: 18.68%
Consumer Discretionary: 1.47%
Automobiles: 0.39%
Other securities								$	16,790,759		0.39	%
Hotels, Restaurants & Leisure: 0.21%
Other securities									9,333,120		0.21
Household Durables: 0.12%
Other securities									5,323,211		0.12
Media: 0.75%
Other securities									32,431,634		0.75
Consumer Staples: 1.79%
Beverages: 0.55%
Anheuser-Busch InBev Finance Company		3.65	%		2-1-2026	$	11,459,000		11,908,136		0.27
Other securities									12,195,876		0.28
									24,104,012		0.55
Food & Staples Retailing: 0.22%
Other securities									9,490,939		0.22
Food Products: 0.64%
Other securities									27,665,603		0.64
Tobacco: 0.38%
Other securities									16,495,109		0.38
Energy: 2.19%
Energy Equipment & Services: 0.12%
Other securities									5,100,096		0.12
Oil, Gas & Consumable Fuels: 2.07%
Other securities									89,794,938		2.07
Financials: 6.62%
Banks: 1.96%
Other securities									84,870,363		1.96
Capital Markets: 1.47%
Morgan Stanley		4.00			7-23-2025		14,175,000		14,883,509		0.34
Other securities									48,796,760		1.13
									63,680,269		1.47
Consumer Finance: 1.26%
Other securities									54,689,470		1.26
Diversified Financial Services: 0.41%
Other securities									18,004,368		0.41

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 85

CORE BOND PORTFOLIO

Security name	Value		Percent of net assets
Insurance: 0.56%
Other securities	$	24,416,968		0.56	%
IT Services: 0.08%
Other securities		3,627,502		0.08
REITs: 0.81%
Other securities		34,986,918		0.81
Health Care: 1.26%
Biotechnology: 0.62%
Other securities		27,065,449		0.62
Health Care Providers & Services: 0.24%
Other securities		10,330,033		0.24
Pharmaceuticals: 0.40%
Other securities		17,152,759		0.40
Industrials: 0.90%
Aerospace & Defense: 0.39%
Other securities		16,878,061		0.39
Air Freight & Logistics: 0.07%
Other securities		3,042,489		0.07
Construction & Engineering: 0.05%
Other securities		2,051,187		0.05
Road & Rail: 0.33%
Other securities		14,331,886		0.33
Transportation Infrastructure: 0.06%
Other securities		2,872,293		0.06
Information Technology: 1.12%
IT Services: 0.39%
Other securities		17,009,696		0.39
Semiconductors & Semiconductor Equipment: 0.19%
Other securities		8,081,238		0.19
Technology Hardware, Storage & Peripherals: 0.54%
Other securities		23,380,313		0.54
Materials: 0.24%
Chemicals: 0.08%
Other securities		3,409,272		0.08
Containers & Packaging: 0.09%
Other securities		3,845,910		0.09

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

86 Wells Fargo Allocation Funds Summary portfolio of investments—May 31, 2016

CORE BOND PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Metals & Mining: 0.07%
Other securities								$	3,177,317		0.07	%
Telecommunication Services: 1.57%
Diversified Telecommunication Services: 1.57%
AT&T Incorporated		2.80-4.80	%		2-17-2021 to 6-15-2044	$	48,304,000		49,578,672		1.14
Other securities									18,544,041		0.43
									68,122,713		1.57
Utilities: 1.59%
Electric Utilities: 1.03%
Other securities									44,726,698		1.03
Gas Utilities: 0.11%
Other securities									4,745,775		0.11
Multi-Utilities: 0.45%
Other securities									19,639,222		0.45
Total Corporate Bonds and Notes (Cost $793,938,757)									810,667,590		18.68
Municipal Obligations: 0.92%
California: 0.27%
Other securities									11,581,748		0.27
Nevada: 0.19%
Other securities									8,326,483		0.19
New Jersey: 0.16%
Other securities									6,984,507		0.16
New York: 0.12%
Other securities									5,337,684		0.12
Ohio: 0.03%
Other securities									1,465,329		0.03
Texas: 0.15%
Other securities									6,258,708		0.15
Total Municipal Obligations (Cost $32,423,389)									39,954,459		0.92
Non-Agency Mortgage-Backed Securities: 3.10%
Other securities									134,383,718		3.10
Total Non-Agency Mortgage-Backed Securities (Cost $131,754,696)									134,383,718		3.10

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 87

CORE BOND PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
U.S. Treasury Securities: 30.51%
U.S. Treasury Bond		2.50	%		2-15-2046	$	97,270,000	$	94,348,106		2.17	%
U.S. Treasury Bond		2.50			5-15-2046		21,802,000		21,169,241		0.49
U.S. Treasury Bond ##		2.88			8-15-2045		28,446,000		29,807,198		0.69
U.S. Treasury Note		0.75			1-31-2018		117,195,000		116,984,401		2.69
U.S. Treasury Note		0.75			4-30-2018		37,441,000		37,348,858		0.86
U.S. Treasury Note		0.88			11-30-2017		17,550,000		17,562,338		0.40
U.S. Treasury Note		0.88			3-31-2018		145,749,000		145,737,632		3.36
U.S. Treasury Note		0.88			5-31-2018		31,597,000		31,590,839		0.73
U.S. Treasury Note		0.88			4-15-2019		156,804,000		156,130,213		3.60
U.S. Treasury Note ##		0.88			5-15-2019		162,591,000		161,828,773		3.73
U.S. Treasury Note		1.00			5-15-2018		31,525,000		31,587,798		0.73
U.S. Treasury Note		1.25			3-31-2021		24,971,000		24,820,774		0.57
U.S. Treasury Note		1.38			1-31-2021		208,632,000		208,697,093		4.81
U.S. Treasury Note		1.38			5-31-2021		108,284,000		108,300,892		2.49
U.S. Treasury Note		1.63			11-30-2020		63,040,000		63,830,459		1.47
U.S. Treasury Note		1.63			5-31-2023		16,178,000		16,107,221		0.37
U.S. Treasury Note		1.63			2-15-2026		29,111,000		28,513,992		0.66
U.S. Treasury Note		1.63			5-15-2026		30,682,000		30,074,343		0.69
Total U.S. Treasury Securities (Cost $1,322,216,760)									1,324,440,171		30.51
Yankee Corporate Bonds and Notes: 5.22%
Consumer Discretionary: 0.20%
Media: 0.20%
Other securities									8,574,676		0.20
Energy: 0.68%
Oil, Gas & Consumable Fuels: 0.68%
Other securities									29,720,643		0.68
Financials: 3.25%
Banks: 2.62%
Other securities									113,661,490		2.62
Consumer Finance: 0.14%
Other securities									6,064,000		0.14
Diversified Financial Services: 0.35%
Other securities									15,352,266		0.35
Insurance: 0.14%
Other securities									6,005,914		0.14
Health Care: 0.66%
Pharmaceuticals: 0.66%
Other securities									28,544,631		0.66
Industrials: 0.07%
Marine: 0.07%
Other securities									3,165,798		0.07

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

88 Wells Fargo Allocation Funds Summary portfolio of investments—May 31, 2016

CORE BOND PORTFOLIO

Security name						Value			Percent of net assets
Information Technology: 0.09%
Internet Software & Services: 0.09%
Other securities						$	3,939,050			0.09	%
Materials: 0.19%
Chemicals: 0.04%
Other securities							1,713,181			0.04
Metals & Mining: 0.15%
Other securities							6,378,982			0.15
Utilities: 0.08%
Electric Utilities: 0.08%
Other securities							3,426,208			0.08
Total Yankee Corporate Bonds and Notes (Cost $224,850,713)							226,546,839			5.22
Yankee Government Bonds: 2.19%
Other securities							95,050,298			2.19
Total Yankee Government Bonds (Cost $93,245,320)							95,050,298			2.19
	Yield			Shares
Short-Term Investments: 4.57%
Investment Companies: 4.57%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)##		0.41	%		198,368,365		198,368,365			4.57
Total Short-Term Investments (Cost $198,368,365)							198,368,365			4.57
Total investments in securities (Cost $4,691,556,895) *							4,728,536,593			108.93
Other assets and liabilities, net							(387,701,535	)		(8.93	)
Total net assets						$	4,340,835,058			100.00	%

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

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

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

(l) The issuer of the security is an affiliated person of the Portfolio 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 $4,697,050,907 and unrealized gains (losses) consists of:

Gross unrealized gains	$	47,813,964
Gross unrealized losses		(16,328,278	)
Net unrealized gains	$	31,485,686

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 89

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 29.90%
FHLMC		3.50	%		9-1-2032	$	1,018,735	$	1,080,181
FHLMC		3.50			4-1-2043		1,675,535		1,756,016
FHLMC		3.50			5-1-2044		733,840		773,306
FHLMC		4.00			4-1-2044		918,722		994,735
FHLMC		4.00			8-1-2044		685,596		739,389
FHLMC Structured Pass-Through Securities Series T-20 Class A6		7.50			9-25-2029		62,952		66,223
FHLMC Structured Pass-Through Securities Series T-58 Class 4A		7.50			9-25-2043		1,097,153		1,313,351
FNMA (a)		2.51			6-1-2046		970,000		990,613
FNMA		2.57			9-1-2019		527,552		542,398
FNMA		2.57			9-1-2019		528,178		543,047
FNMA		2.73			1-1-2023		576,575		600,989
FNMA		2.73			9-1-2023		592,853		613,965
FNMA		2.76			4-1-2021		1,089,536		1,119,279
FNMA		2.78			10-1-2020		550,000		573,434
FNMA		2.85			12-1-2023		590,000		617,089
FNMA		2.90			3-1-2023		597,093		624,283
FNMA		2.96			6-1-2022		520,055		537,600
FNMA		3.00			12-1-2032		69,259		72,061
FNMA		3.03			11-1-2022		584,797		605,990
FNMA		3.07			2-1-2026		360,000		380,105
FNMA		3.08			1-1-2026		480,000		507,203
FNMA		3.31			6-1-2021		550,000		582,339
FNMA		3.35			1-1-2028		280,000		300,896
FNMA		3.50			9-1-2032		1,903,311		2,009,525
FNMA		3.50			10-1-2032		978,186		1,033,205
FNMA		3.50			11-1-2042		366,320		385,950
FNMA		3.50			11-1-2042		520,012		545,028
FNMA		3.50			2-1-2043		279,679		293,167
FNMA		3.50			4-1-2046		298,196		313,397
FNMA		3.50			6-13-2046		600,000		627,844
FNMA		5.00			9-1-2033		254,910		284,122
FNMA		5.50			2-1-2036		372,350		399,641
FNMA Series 2002-90 Class A2		6.50			11-25-2042		426,765		481,129
FNMA Series 2002-T4 Class A2		7.00			12-25-2041		211,895		245,043
FNMA Series 2002-W4 Class A4		6.25			5-25-2042		1,938,171		2,239,254
FNMA Series 2003-86 Class PT		4.50			9-25-2018		200,315		205,393
FNMA Series 2003-W4 Class 3A ±		6.44			10-25-2042		283,801		325,113
FNMA Series 2004-T2 Class 1A1		6.00			11-25-2043		845,834		951,227
FNMA Series 2004-T3 Class A1		6.00			2-25-2044		1,171,703		1,341,595
FNMA Series 2004-W1 Class 2A2		7.00			12-25-2033		192,648		227,746
FNMA Series 2004-W11 Class 1A3		7.00			5-25-2044		1,119,584		1,334,622
FNMA Series 2004-W8 Class 3A		7.50			6-25-2044		399,053		470,784
FNMA Series 2006-M2 Class A2F ±		5.26			5-25-2020		357,573		364,614
GNMA		6.50			10-15-2023		28,269		32,327
GNMA		6.50			11-15-2023		14,333		16,390
GNMA		6.50			11-15-2023		4,468		5,110
GNMA		6.50			12-15-2023		20,562		23,514
GNMA		6.50			1-15-2024		36,252		41,455
GNMA		7.00			8-15-2027		93,434		105,994
SBA Series 2006-20B Class 1		5.35			2-1-2026		521,008		569,771

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

90 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
SBA Series 2006-20H Class 1		5.70	%		8-1-2026	$	292,209	$	326,111
SBA Series 2007-20J Class 1		5.57			10-1-2027		655,212		736,858
SBA Series 2013-20A Class 1		2.13			1-1-2033		493,211		494,705
SBA Series 2013-20J Class 1		3.37			10-1-2033		509,200		539,974
SBA Series 2014-10A Class 1		3.19			3-10-2024		715,531		749,564
SBA Series 2014-10B Class 1		3.02			9-10-2024		1,098,138		1,143,815
SBA Series 2014-20A Class 1		3.46			1-1-2034		426,894		456,198
SBA Series 2015-10B Class 1		2.83			9-10-2025		587,526		602,108
SBA Series 2015-20C Class 1		2.72			3-1-2035		550,231		565,279
SBA Series 2015-20E Class 1		2.77			5-1-2035		857,586		871,792
SBA Series 2015-20F Class 1		2.98			6-1-2035		587,138		611,515
Total Agency Securities (Cost $36,336,997)									37,905,371
Asset-Backed Securities: 4.20%
American Express Credit Accounts Series 2014-2 Class A		1.26			1-15-2020		570,000		571,433
Barclays Dryrock Issuance Trust Series 2014-3 Class A		2.41			7-15-2022		570,000		581,957
Capital Auto Receivables Asset Trust Series 2014-2 Class A3		1.26			5-21-2018		446,305		446,435
Capital Auto Receivables Asset Trust Series 2014-3 Class A3		1.48			11-20-2018		570,000		570,435
CNH Equipment Trust Series 2014-A Class A3		0.84			5-15-2019		302,612		302,196
CNH Equipment Trust Series 2015-A Class A4		1.85			4-15-2021		580,000		583,942
Ford Credit Auto Owner Trust Series 2015-2 Class A 144A		2.44			1-15-2027		600,000		610,125
Ford Credit Auto Owner Trust Series 2016-1 Class A 144A		2.31			8-15-2027		600,000		606,352
Green Tree Financial Corporation Series 1997-7 Class A8 ±		6.86			7-15-2028		5,106		5,118
Mississippi Higher Education Assistance Corporation Series 2014-1 Class A1 ±		1.12			10-25-2035		579,890		568,792
South Carolina Student Loan Corporation Series 2014-1 Class B ±		1.94			8-1-2035		500,000		479,196
Total Asset-Backed Securities (Cost $5,305,821)									5,325,981
Corporate Bonds and Notes: 32.44%
Consumer Discretionary: 3.48%
Automobiles: 0.34%
General Motors Company		4.88			10-2-2023		400,000		424,735
Diversified Consumer Services: 1.92%
Massachusetts Institute of Technology		3.96			7-1-2038		200,000		219,073
Massachusetts Institute of Technology		7.25			11-2-2096		500,000		816,839
Northwestern University		4.64			12-1-2044		350,000		422,900
President and Fellows of Harvard College		3.53			10-1-2031		250,000		260,122
President and Fellows of Harvard College		5.63			10-1-2038		250,000		339,070
Service Corporation International		5.38			1-15-2022		360,000		375,750
									2,433,754
Media: 0.86%
Charter Communications 144A		4.91			7-23-2025		325,000		348,275
Lamar Media Corporation		5.88			2-1-2022		315,000		329,175
Time Warner Incorporated		3.40			6-15-2022		140,000		145,050
Time Warner Incorporated		3.60			7-15-2025		260,000		269,662
									1,092,162

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 91

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Textiles, Apparel & Luxury Goods: 0.36%
Hanesbrands Incorporated 144A		4.63	%		5-15-2024	$	200,000	$	200,000
The William Carter Company		5.25			8-15-2021		250,000		258,750
									458,750
Consumer Staples: 1.08%
Beverages: 0.11%
Anheuser-Busch InBev Worldwide Incorporated		3.65			2-1-2026		140,000		145,487
Food & Staples Retailing: 0.52%
CVS Health Corporation		3.50			7-20-2022		120,000		126,610
SABMiller Holdings Incorporated 144A		3.75			1-15-2022		500,000		528,513
									655,123
Food Products: 0.25%
Kraft Foods Group Incorporated		3.50			6-6-2022		300,000		313,036
Household Products: 0.20%
The Procter & Gamble Company		5.50			2-1-2034		200,000		258,969
Energy: 3.85%
Energy Equipment & Services: 0.13%
Halliburton Company		3.80			11-15-2025		160,000		161,815
Oil, Gas & Consumable Fuels: 3.72%
Anadarko Petroleum Corporation		5.55			3-15-2026		150,000		159,885
Chevron Corporation		2.95			5-16-2026		250,000		250,873
Chevron Corporation		3.19			6-24-2023		250,000		259,742
Cimarex Energy Company		5.88			5-1-2022		350,000		366,710
Columbia Pipeline Group Company		2.45			6-1-2018		210,000		209,633
Concho Resources Incorporated		6.50			1-15-2022		375,000		387,188
ConocoPhillips Company		3.35			11-15-2024		370,000		371,825
Devon Energy Corporation		5.85			12-15-2025		130,000		135,312
EQT Corporation		8.13			6-1-2019		400,000		436,492
Exxon Mobil Corporation		3.04			3-1-2026		390,000		400,993
Florida Gas Transmission Company 144A		4.35			7-15-2025		230,000		222,255
Magellan Midstream Partners LP		5.00			3-1-2026		170,000		186,940
Marathon Oil Corporation		3.85			6-1-2025		410,000		358,910
Newfield Exploration Company		5.63			7-1-2024		249,000		247,755
Pioneer Natural Resource Company		4.45			1-15-2026		190,000		200,591
Plains All American Pipeline LP		4.65			10-15-2025		400,000		379,595
Southwestern Energy Company		4.95			1-23-2025		175,000		146,563
									4,721,262
									��
Financials: 11.04%
Banks: 3.85%
Bank of America Corporation		3.95			4-21-2025		120,000		119,821
Bank of America Corporation		4.00			4-1-2024		700,000		736,721
Chase Capital VI ±		1.26			8-1-2028		1,000,000		813,150

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

92 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
Citigroup Incorporated		3.30	%		4-27-2025	$	130,000	$	130,908
Citigroup Incorporated		3.40			5-1-2026		250,000		251,340
Citigroup Incorporated		4.40			6-10-2025		100,000		102,732
CoreStates Capital Trust II 144A±		1.28			1-15-2027		750,000		628,125
Manufacturers & Traders Trust Company ±		1.65			12-28-2020		758,000		742,304
National Capital Commerce Incorporated ±(i)		1.61			4-1-2027		400,000		321,000
NTC Capital Trust Series A ±		1.15			1-15-2027		450,000		388,125
PNC Bank		3.25			6-1-2025		250,000		258,980
US Bancorp NA		2.95			7-15-2022		200,000		205,158
US Bancorp NA		3.10			4-27-2026		180,000		181,328
									4,879,692
Capital Markets: 1.26%
Goldman Sachs Capital II ±		4.00			12-29-2049		62,000		46,965
Goldman Sachs Group Incorporated		3.50			1-23-2025		265,000		267,260
Goldman Sachs Group Incorporated		4.25			10-21-2025		120,000		122,210
Goldman Sachs Group Incorporated		5.75			1-24-2022		200,000		229,220
Morgan Stanley		3.70			10-23-2024		100,000		103,312
Morgan Stanley		3.95			4-23-2027		180,000		179,466
Morgan Stanley		5.50			7-24-2020		350,000		390,877
The Bank of New York Mellon Corporation		3.25			9-11-2024		250,000		260,786
									1,600,096
Consumer Finance: 0.43%
American Honda Finance Corporation		2.45			9-24-2020		120,000		123,165
Caterpillar Financial Services Corporation		3.75			11-24-2023		150,000		162,091
Daimler Finance North America LLC 144A		2.38			8-1-2018		260,000		263,786
									549,042
Diversified Financial Services: 1.31%
Abay Leasing 2014 LLC		2.65			11-9-2026		503,125		518,431
ABB Treasury Center USA Incorporated 144A		4.00			6-15-2021		510,000		545,666
Berkshire Hathaway Incorporated		2.75			3-15-2023		210,000		215,213
CNH Industrial Capital LLC		3.38			7-15-2019		390,000		385,125
									1,664,435
Insurance: 1.42%
ACE INA Holdings Incorporated		2.88			11-3-2022		110,000		113,005
Minnesota Life Insurance Company 144A		8.25			9-15-2025		650,000		817,222
NLV Financial Corporation 144A		7.50			8-15-2033		565,000		639,611
Pacific LifeCorp 144A		6.00			2-10-2020		200,000		221,874
									1,791,712
REITs: 2.77%
AvalonBay Communities Incorporated		2.95			9-15-2022		190,000		193,343
AvalonBay Communities Incorporated		3.63			10-1-2020		40,000		42,305
Boston Properties LP		3.70			11-15-2018		180,000		187,954
Boston Properties LP		5.88			10-15-2019		200,000		223,213
Duke Realty LP		3.88			10-15-2022		150,000		155,395

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 93

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
REITs (continued)
ERP Operating LP		4.63	%		12-15-2021	$	281,000	$	313,908
Liberty Property LP		3.75			4-1-2025		100,000		101,083
Liberty Property LP		6.63			10-1-2017		400,000		424,494
Potlatch Corporation		7.50			11-1-2019		310,000		342,938
ProLogis LP		3.75			11-1-2025		170,000		178,966
Realty Income Corporation		4.65			8-1-2023		370,000		399,605
Simon Property Group LP		3.38			10-1-2024		300,000		313,616
UDR Incorporated		4.63			1-10-2022		260,000		283,976
Ventas Realty LP		3.50			2-1-2025		150,000		150,067
Vornado Realty LP		2.50			6-30-2019		200,000		201,991
									3,512,854
Health Care: 3.24%
Health Care Equipment & Supplies: 0.64%
Becton Dickinson & Company		3.73			12-15-2024		290,000		307,343
C.R. Bard Incorporated		3.00			5-15-2026		170,000		169,514
Medtronic Incorporated		3.15			3-15-2022		130,000		136,810
Teleflex Incorporated		4.88			6-1-2026		200,000		200,500
									814,167
Health Care Providers & Services: 2.09%
Allina Health System Incorporated		4.81			11-15-2045		235,000		273,527
Ascension Health		3.95			11-15-2046		225,000		231,190
Howard Hughes Medical Institute		3.50			9-1-2023		120,000		129,675
Mayo Clinic		3.77			11-15-2043		120,000		118,640
Mednax Incorporated 144A		5.25			12-1-2023		475,000		485,987
Memorial Sloan Kettering Cancer Center		4.20			7-1-2055		375,000		400,034
Texas Health Resources		4.33			11-15-2055		375,000		412,854
The New York and Presbyterian Hospital		4.02			8-1-2045		175,000		182,910
UnitedHealth Group Incorporated		3.75			7-15-2025		380,000		409,170
									2,643,987
Life Sciences Tools & Services: 0.12%
Thermo Fisher Scientific Incorporated		3.30			2-15-2022		150,000		153,703
Pharmaceuticals: 0.39%
Bayer US Finance LLC 144A		3.38			10-8-2024		240,000		245,644
EMD Finance LLC 144A		2.95			3-19-2022		250,000		253,039
									498,683
Industrials: 3.16%
Aerospace & Defense: 0.23%
BAE Systems Holdings Incorporated 144A		3.80			10-7-2024		100,000		102,924
United Technologies Corporation		3.10			6-1-2022		180,000		188,378
									291,302
Air Freight & Logistics: 0.19%
FedEx Corporation		4.00			1-15-2024		225,000		244,670

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

94 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies: 0.48%
Clean Harbors Incorporated		5.25	%		8-1-2020	$	350,000	$	357,438
Waste Management Incorporated		3.13			3-1-2025		240,000		247,023
									604,461
Construction & Engineering: 0.18%
Valmont Industries Incorporated		5.00			10-1-2044		260,000		230,731
Machinery: 1.22%
Actuant Corporation		5.63			6-15-2022		425,000		433,500
Briggs & Stratton Corporation		6.88			12-15-2020		350,000		383,250
Deere & Company		2.60			6-8-2022		340,000		344,696
Oshkosh Corporation		5.38			3-1-2022		375,000		387,188
									1,548,634
Road & Rail: 0.58%
Burlington Northern Santa Fe LLC		3.05			9-1-2022		100,000		104,721
Burlington Northern Santa Fe LLC		3.40			9-1-2024		150,000		159,896
Burlington Northern Santa Fe LLC		3.45			9-15-2021		250,000		267,079
Union Pacific Corporation		7.88			1-15-2019		171,000		196,451
									728,147
Transportation Infrastructure: 0.28%
Vessel Management Service		3.43			8-15-2036		348,000		356,383
Information Technology: 1.17%
Electronic Equipment, Instruments & Components: 0.22%
Jabil Circuit Incorporated		8.25			3-15-2018		250,000		271,875
IT Services: 0.09%
Fiserv Incorporated		4.75			6-15-2021		100,000		109,789
Semiconductors & Semiconductor Equipment: 0.20%
Micron Technology Incorporated 144A		7.50			9-15-2023		245,000		257,250
Software: 0.36%
Oracle Corporation		2.50			5-15-2022		220,000		223,573
Oracle Corporation		3.40			7-8-2024		220,000		232,887
									456,460
Technology Hardware, Storage & Peripherals: 0.30%
Hewlett Packard Enterprise Company 144A		4.90			10-15-2025		375,000		383,548
Materials: 1.78%
Chemicals: 0.69%
Ecolab Incorporated		4.35			12-8-2021		330,000		366,095
Scotts Miracle-Gro Company 144A		6.00			10-15-2023		390,000		413,400
Valspar Corporation		3.30			2-1-2025		100,000		98,656
									878,151

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 95

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Containers & Packaging: 0.56%
Ball Corporation		5.00	%		3-15-2022	$	350,000	$	365,750
Sealed Air Corporation 144A		6.50			12-1-2020		300,000		342,000
									707,750
Metals & Mining: 0.25%
Alcoa Incorporated		5.40			4-15-2021		300,000		310,500
Paper & Forest Products: 0.28%
Georgia Pacific LLC 144A		3.73			7-15-2023		340,000		355,194
Telecommunication Services: 0.95%
Diversified Telecommunication Services: 0.95%
AT&T Incorporated		2.40			3-15-2017		400,000		403,856
AT&T Incorporated		4.75			5-15-2046		280,000		277,637
Verizon Communications Incorporated		3.50			11-1-2024		110,000		114,257
Verizon Communications Incorporated		5.15			9-15-2023		350,000		401,890
									1,197,640
Utilities: 2.69%
Electric Utilities: 2.12%
Entergy Texas Incorporated		7.13			2-1-2019		250,000		281,877
Great River Energy 144A		5.83			7-1-2017		261,811		267,131
IPALCO Enterprises Incorporated		3.45			7-15-2020		350,000		353,500
ITC Holdings Corporation		3.65			6-15-2024		120,000		122,751
Monongahela Power Company 144A		4.10			4-15-2024		380,000		408,084
Northern States Power Company of Wisconsin		3.30			6-15-2024		370,000		387,003
Otter Tail Corporation (i)		9.00			12-15-2016		350,000		361,291
PacifiCorp		3.35			7-1-2025		130,000		137,063
Tenaska Alabama II Partners LP 144A		7.00			6-30-2021		164,954		166,604
Trans-Allegheny Interstate Line Company 144A		3.85			6-1-2025		200,000		208,454
									2,693,758
Gas Utilities: 0.57%
AmeriGas Finance LLC		7.00			5-20-2022		375,000		395,156
Boardwalk Pipelines Company		5.95			6-1-2026		325,000		325,544
									720,700
Total Corporate Bonds and Notes (Cost $39,867,746)									41,120,407
Municipal Obligations: 8.93%
Alaska: 0.25%
Alaska Taxable Build America Bonds Series 2010A (GO Revenue)		5.74			8-1-2033		250,000		322,840
Arizona: 0.90%
Arizona School Facilities Board Refunding Certificates of Participation Series A-3 (Miscellaneous Revenue)		2.38			9-1-2019		235,000		239,263
Maricopa County AZ Elementary School District #28 Kyrene Elementary Build America Bonds Series D (GO Revenue)		5.38			7-1-2019		800,000		900,280
									1,139,543

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

96 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Arkansas: 0.29%
Arkansas Taxable Bond Amendment 82 Series A (GO Revenue)		2.61	%		7-1-2021	$	350,000	$	368,431
Georgia: 0.49%
Cherokee County GA School System Build America Bonds (GO Revenue)		5.87			8-1-2028		500,000		622,730
Indiana: 0.28%
Indiana Housing & CDA Series A-2 (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.51			1-1-2039		40,000		40,536
Indianapolis IN Local Public Improvement Bond Bank Build America Bonds (Miscellaneous Revenue)		5.85			1-15-2030		250,000		311,410
									351,946
Kentucky: 0.04%
Kentucky Housing Corporation Series D (Housing Revenue)		5.75			7-1-2037		50,000		50,098
Maryland: 0.25%
Baltimore County MD (GO Revenue)		3.57			8-1-2032		300,000		311,568
Massachusetts: 0.67%
Boston MA Series C Qualified School Construction Bonds (GO Revenue)		4.40			4-1-2026		400,000		441,632
Massachusetts Build America Bonds Series D (GO Revenue)		4.50			8-1-2031		350,000		405,682
									847,314
Minnesota: 0.23%
Minnetonka MN Independent School District #276 Series E (GO Revenue, South Dakota Credit Program Insured)		2.55			1-1-2024		290,000		296,531
Missouri: 0.26%
Missouri Higher Education Loan Authority Notes Class A-1 (Education Revenue) ±		1.48			8-27-2029		338,721		334,626
New Jersey: 0.99%
Hudson County NJ Improvement Authority Hudson County Lease Project (Miscellaneous Revenue, AGM Insured)		7.40			12-1-2025		1,030,000		1,254,592
North Carolina: 0.94%
Duke University North Carolina Series A (Education Revenue)		5.85			4-1-2037		300,000		404,118
North Carolina Education Assistance Authority Student Loan Notes 2011-1 Series A3 (Education Revenue) ±		1.52			10-25-2041		650,000		631,794
University of North Carolina Chapel Hill Refunding Bonds Series 2016C (Education Revenue)		3.33			12-1-2036		150,000		153,980
									1,189,892
Ohio: 0.54%
Cuyahoga County OH Build America Bonds Series B (GO Revenue)		6.03			12-1-2034		325,000		409,910
Ohio Veterans Compensation (GO Revenue)		3.38			10-1-2021		250,000		268,460
									678,370
Oklahoma: 0.32%
Oklahoma Water Resource Board Revolving Fund Series A (Water & Sewer Revenue)		3.27			4-1-2023		375,000		406,549

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 97

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Texas: 0.90%
Clear Creek TX Independent School District Taxable Refunding Series B (GO Revenue)		3.40	%		2-15-2022	$	375,000	$	405,649
Harris County TX Taxable Refunding Permanent Improvement Series B (GO Revenue)		2.12			10-1-2021		500,000		507,725
Texas State A&M University (Education Revenue)		3.11			5-15-2028		220,000		225,436
									1,138,810
Virginia: 0.20%
Virginia State HDA (Housing Revenue) %%		3.10			6-25-2041		250,000		250,348
Washington: 0.87%
King County WA Economic Development Taxable Bond Series C (GO Revenue)		5.03			12-1-2023		230,000		264,438
King County WA School District #210 (GO Revenue, AGM Insured)		4.90			12-1-2022		400,000		438,096
Washington Build America Bonds (Tax Revenue)		5.09			8-1-2033		325,000		395,707
									1,098,241
West Virginia: 0.42%
Ohio County WV Special District Excise Tax Series A (Tax Revenue)		8.25			3-1-2035		475,000		534,670
Wisconsin: 0.09%
Milwaukee County WI Taxable Pension Promissory Notes Series A (GO Revenue)		6.84			12-1-2028		90,000		118,907
Total Municipal Obligations (Cost $10,453,269)									11,316,006
Non-Agency Mortgage-Backed Securities: 12.38%
Commercial Mortgage Pass-Through Certificate Series 2010-C1 Class A3 144A		4.21			7-10-2046		700,000		756,168
Commercial Mortgage Pass-Through Certificate Series 2012-CR2 Class A4		3.15			8-15-2045		550,000		575,007
Commercial Mortgage Pass-Through Certificate Series 2012-CR3 Class A3		2.82			10-15-2045		620,000		636,941
Commercial Mortgage Pass-Through Certificate Series 2012-UBS5 Class A3		3.55			9-10-2047		630,000		664,141
Commercial Mortgage Pass-Through Certificate Series 2013-CR12 Class ASB		3.62			10-10-2046		550,000		586,902
Commercial Mortgage Pass-Through Certificate Series 2013-CR13 Class A4 ±		4.19			11-10-2023		600,000		665,637
Commercial Mortgage Pass-Through Certificate Series 2013-CR7 Class A4		3.21			3-10-2046		630,000		659,812
Credit Suisse First Boston Commercial Mortgage Trust Series 2004-AR5 Class 10A1 ±		2.75			6-25-2034		592,191		595,832
GS Mortgage Securities Trust Series 2011-GC3 Class A4 144A		4.75			3-10-2044		498,499		544,075
GS Mortgage Securities Trust Series 2011-GC5 Class A4		3.71			8-10-2044		545,000		582,359
GS Mortgage Securities Trust Series 2012-GCJ7 Class A4		3.38			5-10-2045		560,000		590,387
GS Mortgage Securities Trust Series 2013-GC10 Class AAB		2.56			2-10-2046		212,500		216,710
GS Mortgage Securities Trust Series 2013-GC12 Class AAB		2.68			6-10-2046		212,500		217,391
GS Mortgage Securities Trust Series 2013-GC14 Class A5		4.24			8-10-2046		615,000		682,817
GS Mortgage Securities Trust Series 2013-GC16 Class A4		4.27			11-10-2046		350,000		389,727
JPMorgan Chase Commercial Mortgage Securities Trust Series 2010-C2 Class A3 144A		4.07			11-15-2043		395,000		420,311
JPMorgan Chase Commercial Mortgage Securities Trust Series 2013-C12 Class ASB		3.16			7-15-2045		550,000		572,497
MMAF Equipment Finance LLC Series 2015-AA Class A4 144A		1.93			7-16-2021		500,000		502,700
Morgan Stanley Bank of America Merrill Lynch Trust Series 2014-C15 Class ASB		3.65			4-15-2047		550,000		584,522
Morgan Stanley Capital I Trust Series 2011-C2 Class A4 144A		4.66			6-15-2044		500,000		551,419
Morgan Stanley Capital I Trust Series 2011-C3 Class A4		4.12			7-15-2049		530,000		574,743
Motel 6 Trust Series 2015-MTL6 Class B 144A		3.30			2-5-2030		500,000		500,516
Nomura Asset Acceptance Corporation Series 2004-R2 Class A1 144A±		6.50			10-25-2034		975,563		984,759
Sequoia Mortgage Trust Series 10 Class 1A ±		1.24			10-20-2027		264,892		258,101
Structured Asset Securities Corporation Series 2007-RM1 Class A1 144A±(i)(a)		0.73			5-25-2047		1,883,961		1,233,994
Towd Point Mortgage Trust Series 2016-2 Class A1A 144A±(a)		2.75			8-25-2055		450,000		450,006
WF RBS Commercial Mortgage Trust Series 2013-C17 Class A4		4.02			12-15-2046		630,000		690,593
Total Non-Agency Mortgage-Backed Securities (Cost $16,167,367)									15,688,067

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

98 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities: 4.29%
TIPS		0.38	%		7-15-2025	$	632,539	$	639,210
U.S. Treasury Bond		2.50			2-15-2045		665,000		645,492
U.S. Treasury Bond		2.50			2-15-2046		190,000		184,293
U.S. Treasury Bond		2.50			5-15-2046		250,000		242,744
U.S. Treasury Bond ##		2.88			8-15-2045		1,850,000		1,938,526
U.S. Treasury Bond		3.00			11-15-2045		550,000		590,778
U.S. Treasury Bond		4.50			2-15-2036		880,000		1,202,540
Total U.S. Treasury Securities (Cost $5,236,374)									5,443,583
Yankee Corporate Bonds and Notes: 5.74%
Consumer Discretionary: 0.27%
Media: 0.27%
Pearson Dollar Finance Two plc 144A		6.25			5-6-2018		325,000		348,203
Energy: 1.84%
Energy Equipment & Services: 0.42%
Ensco plc		4.70			3-15-2021		160,000		125,600
Schlumberger Norge AS 144A		4.20			1-15-2021		380,000		408,916
									534,516
Oil, Gas & Consumable Fuels: 1.42%
BP Capital Markets plc		3.81			2-10-2024		110,000		115,553
BP Capital Markets plc		4.50			10-1-2020		350,000		383,202
Petroleos Mexicanos		2.29			2-15-2024		220,000		223,425
Petroleos Mexicanos		2.83			2-15-2024		460,000		476,587
Petroleos Mexicanos		6.38			1-23-2045		250,000		234,075
Total Capital International SA		3.70			1-15-2024		200,000		212,691
Weatherford International Limited «		4.50			4-15-2022		190,000		147,250
									1,792,783
Financials: 1.54%
Banks: 0.71%
Bank of Nova Scotia		4.50			12-16-2025		250,000		257,089
Credit Suisse New York		3.63			9-9-2024		250,000		260,168
HSBC		3.60			5-25-2023		250,000		252,022
Royal Bank of Canada		4.65			1-27-2026		120,000		125,323
									894,602
Diversified Financial Services: 0.83%
Shell International Finance BV		3.25			5-11-2025		200,000		204,732
Shell International Finance BV		3.40			8-12-2023		370,000		385,080
Tyco Electronics Group SA		3.50			2-3-2022		450,000		467,511
									1,057,323
Health Care: 0.18%
Pharmaceuticals: 0.18%
Actavis Funding SCS		4.55			3-15-2035		230,000		226,633

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 99

MANAGED FIXED INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 0.52%
Aerospace & Defense: 0.40%
BAE Systems plc 144A		4.75	%		10-11-2021	$	470,000	$	515,433
Road & Rail: 0.12%
Canadian Pacific Railway Company		2.90			2-1-2025		150,000		149,549
Information Technology: 0.58%
Semiconductors & Semiconductor Equipment: 0.30%
TSMC Global Limited 144A		1.63			4-3-2018		380,000		378,817
Technology Hardware, Storage & Peripherals: 0.28%
Seagate HDD Cayman		4.75			6-1-2023		425,000		355,884
Materials: 0.49%
Metals & Mining: 0.49%
Rio Tinto Finance (USA) Limited		3.75			9-20-2021		370,000		386,846
Teck Resources Limited		3.00			3-1-2019		240,000		229,800
									616,646
Telecommunication Services: 0.32%
Wireless Telecommunication Services: 0.32%
Rogers Communications Incorporated		4.10			10-1-2023		370,000		402,651
Total Yankee Corporate Bonds and Notes (Cost $7,170,407)									7,273,040
	Yield					Shares
Short-Term Investments: 3.47%
Investment Companies: 3.47%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45					143,100		143,100
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)##		0.41					4,250,997		4,250,997
Total Short-Term Investments (Cost $4,394,097)									4,394,097

Total investments in securities (Cost $124,932,078) *	101.35	%		128,466,552
Other assets and liabilities, net	(1.35	)		(1,712,822	)
Total net assets	100.00	%	$	126,753,730

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

100 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

MANAGED FIXED INCOME PORTFOLIO

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

± 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.

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

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

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

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $124,949,952 and unrealized gains (losses) consists of:

Gross unrealized gains	$	5,110,592
Gross unrealized losses		(1,593,992	)
Net unrealized gains	$	3,516,600

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 101

REAL RETURN PORTFOLIO

Security name	Shares		Value
Common Stocks: 16.92%
Consumer Staples: 3.87%
Beverages: 0.39%
Constellation Brands Incorporated Class A		697	$	106,746
The Coca-Cola Company		3,173		141,516
				248,262
Food & Staples Retailing: 0.55%
The Kroger Company		2,083		74,488
Wal-Mart Stores Incorporated		1,764		124,856
Walgreens Boots Alliance Incorporated		2,009		155,497
				354,841
Food Products: 1.38%
Biostime International Holdings Limited		176,000		537,915
Marine Harvest ASA		4,555		76,065
Mead Johnson Nutrition Company		970		79,812
Mondelez International Incorporated Class A		2,400		106,776
The Hershey Company		909		84,401
				884,969
Household Products: 1.22%
Church & Dwight Company Incorporated		1,092		107,540
Reckitt Benckiser Group plc		4,568		454,854
The Procter & Gamble Company		2,721		220,510
				782,904
Personal Products: 0.08%
The Estee Lauder Companies Incorporated Class A		574		52,682
Tobacco: 0.25%
Philip Morris International		1,604		158,283
Energy: 3.41%
Energy Equipment & Services: 0.34%
Halliburton Company		2,474		104,353
Schlumberger Limited		876		66,839
Weatherford International plc †		8,288		46,496
				217,688
Oil, Gas & Consumable Fuels: 3.07%
Anadarko Petroleum Corporation		1,640		85,050
BP plc		104,961		543,092
Chevron Corporation		2,867		289,567
Cimarex Energy Company		927		107,792
Eni SpA		32,056		489,710
EOG Resources Incorporated		1,489		121,145
Occidental Petroleum Corporation		1,817		137,074
Phillips 66 Company		640		51,430

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

102 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Pioneer Natural Resources Company		603	$	96,673
Valero Energy Corporation		848		46,386
				1,967,919
Financials: 4.49%
REITs: 4.49%
American Homes 4 Rent Class A		3,735		68,500
American Tower Corporation		4,616		488,280
AvalonBay Communities Incorporated		1,406		252,911
Boston Properties Incorporated		2,087		262,190
Camden Property Trust		1,931		164,541
Equinix Incorporated		446		161,452
Essex Property Trust Incorporated		384		87,256
General Growth Properties Incorporated		9,763		262,332
Host Hotels & Resorts Incorporated		6,728		103,611
Physicians Realty Trust		12,864		244,287
Prologis Incorporated		4,182		198,770
Public Storage Incorporated		560		142,078
Simon Property Group Incorporated		1,418		280,254
Ventas Incorporated		2,466		163,570
				2,880,032
Materials: 5.15%
Chemicals: 2.57%
Akzo Nobel NV		8,858		601,207
Dow Chemical Company		1,751		89,931
Ecolab Incorporated		436		51,117
International Flavors & Fragrances Incorporated		253		32,637
LyondellBasell Industries NV Class A		290		23,594
Monsanto Company		244		27,443
Nitto Denko Corporation		10,400		684,560
PolyOne Corporation		875		32,786
PPG Industries Incorporated		504		54,271
Praxair Incorporated		468		51,414
				1,648,960
Construction Materials: 0.08%
Martin Marietta Materials Incorporated		267		50,474
Containers & Packaging: 0.09%
Crown Holdings Incorporated †		1,051		54,831
Metals & Mining: 2.41%
Agnico-Eagle Mines Limited-U.S. Exchange Traded Shares		4,600		206,632
Detour Gold Corporation †		9,800		193,631
Fresnillo plc		8,800		128,602
Goldcorp Incorporated-U.S. Exchange Traded Shares		5,500		92,510
Newmont Mining Corporation		8,600		278,726
Randgold Resources Limited ADR		2,850		240,284

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 103

REAL RETURN PORTFOLIO

Security name							Shares		Value
Metals & Mining (continued)
Royal Gold Incorporated								2,377	$	133,421
Silver Wheaton Corporation								7,000		130,340
Steel Dynamics Incorporated								1,880		46,417
Tahoe Resources Incorporated								8,000		95,535
										1,546,098
Total Common Stocks (Cost $10,010,837)										10,847,943
	Interest rate				Maturity date		Principal
Corporate Bonds and Notes: 10.42%
Consumer Discretionary: 3.77%
Auto Components: 0.53%
American Axle & Manufacturing Incorporated		6.25	%			3-15-2021	$	100,000		104,000
Cooper Tire & Rubber Company (i)		8.00				12-15-2019		15,000		17,138
Goodyear Tire & Rubber Company		7.00				5-15-2022		85,000		91,269
Tenneco Incorporated		6.88		��		12-15-2020		125,000		129,525
										341,932
Diversified Consumer Services: 0.16%
Service Corporation International		5.38				1-15-2022		100,000		104,375
Hotels, Restaurants & Leisure: 0.53%
Hilton Worldwide Finance LLC		5.63				10-15-2021		100,000		103,561
MGM Resorts International		7.63				1-15-2017		105,000		108,281
NCL Corporation Limited 144A		5.25				11-15-2019		125,000		127,500
										339,342
Household Durables: 0.57%
Calatlantic Group Incorporated		6.63				5-1-2020		15,000		16,538
DR Horton Incorporated		3.63				2-15-2018		135,000		137,363
Lennar Corporation		4.50				6-15-2019		100,000		103,250
Tempur Sealy International Incorporated		6.88				12-15-2020		100,000		106,320
										363,471
Media: 0.93%
CCO Holdings LLC		6.63				1-31-2022		125,000		132,625
CSC Holdings LLC		7.63				7-15-2018		75,000		81,375
DISH DBS Corporation		4.25				4-1-2018		130,000		133,250
Nexstar Broadcasting Group Incorporated		6.88				11-15-2020		75,000		78,188
Sinclair Television Group Incorporated		6.38				11-1-2021		85,000		89,675
TEGNA Incorporated		5.13				10-15-2019		50,000		51,375
TEGNA Incorporated		5.13				7-15-2020		30,000		31,050
										597,538
Multiline Retail: 0.16%
Dollar Tree Incorporated 144A		5.25				3-1-2020		100,000		104,219

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

104 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Specialty Retail: 0.53%
Best Buy Company Incorporated		5.00	%		8-1-2018	$	100,000	$	104,750
L Brands Incorporated		6.90			7-15-2017		120,000		126,900
Sally Beauty Holdings Incorporated		5.75			6-1-2022		100,000		104,000
									335,650
Textiles, Apparel & Luxury Goods: 0.36%
HanesBrands Incorporated		6.38			12-15-2020		125,000		128,985
The William Carter Company		5.25			8-15-2021		100,000		103,500
									232,485
Consumer Staples: 0.72%
Beverages: 0.16%
Cott Beverages Incorporated		6.75			1-1-2020		100,000		104,500
Food Products: 0.36%
Pinnacle Foods Incorporated		4.88			5-1-2021		100,000		102,000
Smithfield Foods Incorporated		7.75			7-1-2017		120,000		127,560
									229,560
Household Products: 0.20%
Spectrum Brands Incorporated		6.38			11-15-2020		120,000		125,850
Energy: 0.85%
Energy Equipment & Services: 0.15%
NGPL PipeCo LLC 144A		7.12			12-15-2017		95,000		99,750
Oil, Gas & Consumable Fuels: 0.70%
Kinder Morgan Incorporated		7.00			6-15-2017		60,000		62,627
Rockies Express Pipeline LLC 144A		6.00			1-15-2019		50,000		51,875
Sabine Pass LNG LP		7.50			11-30-2016		65,000		66,463
Targa Resources Partners Incorporated		5.00			1-15-2018		130,000		132,600
Tesoro Corporation		4.25			10-1-2017		65,000		66,463
Tesoro Logistics LP		5.88			10-1-2020		65,000		66,950
									446,978
Financials: 1.60%
Banks: 0.21%
CIT Group Incorporated		4.25			8-15-2017		105,000		106,239
CIT Group Incorporated		5.25			3-15-2018		25,000		25,813
									132,052
Consumer Finance: 1.00%
Ally Financial Incorporated		6.25			12-1-2017		125,000		130,313
Diamond 1 Finance Corporation 144A%%		3.48			6-1-2019		100,000		101,329
General Motors Financial Company Incorporated		3.25			5-15-2018		135,000		137,552
Navient Corporation		4.63			9-25-2017		130,000		132,600
Toll Brothers Finance Corporation		4.00			12-31-2018		135,000		140,063
									641,857

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 105

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
REITs: 0.39%
Iron Mountain Incorporated 144A		6.00	%		10-1-2020	$	100,000	$	105,500
VEREIT Operating Partnership LP		2.00			2-6-2017		135,000		135,173
VEREIT Operating Partnership LP %%		4.13			6-1-2021		10,000		10,100
									250,773
Health Care: 0.68%
Health Care Providers & Services: 0.68%
Centene Corporation 144A		5.63			2-15-2021		65,000		67,600
Fresenius Medical Care Holdings Incorporated		6.88			7-15-2017		125,000		131,719
HCA Incorporated		8.00			10-1-2018		115,000		128,800
Tenet Healthcare Corporation		6.25			11-1-2018		100,000		105,125
									433,244
Industrials: 0.93%
Airlines: 0.16%
US Airways Group Incorporated		6.13			6-1-2018		100,000		104,000
								��
Building Products: 0.14%
USG Corporation		9.75			1-15-2018		80,000		89,422
Commercial Services & Supplies: 0.17%
ACCO Brands Corporation		6.75			4-30-2020		105,000		110,906
Machinery: 0.24%
Case New Holland Industrial Incorporated		7.88			12-1-2017		65,000		69,550
SPX Flow Incorporated		6.88			9-1-2017		80,000		83,300
									152,850
Trading Companies & Distributors: 0.22%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		100,000		104,438
United Rentals North America Incorporated		7.38			5-15-2020		33,000		34,320
									138,758
Information Technology: 0.62%
Communications Equipment: 0.16%
ViaSat Incorporated		6.88			6-15-2020		100,000		103,125
Electronic Equipment, Instruments & Components: 0.13%
Jabil Circuit Incorporated		8.25			3-15-2018		75,000		81,563
Internet Software & Services: 0.20%
IAC/InterActiveCorp		4.88			11-30-2018		123,000		125,921
Software: 0.13%
Activision Blizzard Incorporated 144A		5.63			9-15-2021		80,000		84,000
Materials: 0.63%
Chemicals: 0.13%
Ashland Incorporated		3.88			4-15-2018		80,000		82,000

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

106 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Containers & Packaging: 0.32%
Owens-Illinois Incorporated		7.80	%		5-15-2018	$	120,000	$	130,800
Reynolds Group Holdings		5.75			10-15-2020		70,000		72,188
									202,988
Metals & Mining: 0.18%
Alcoa Incorporated		6.75			7-15-2018		60,000		64,800
Steel Dynamics Incorporated		6.13			8-15-2019		50,000		51,875
									116,675
Telecommunication Services: 0.52%
Diversified Telecommunication Services: 0.35%
Frontier Communications Corporation		8.13			10-1-2018		60,000		65,100
Hughes Satelite Systems Corporation		6.50			6-15-2019		75,000		80,438
SBA Communications Corporation		5.63			10-1-2019		80,000		82,900
									228,438
Wireless Telecommunication Services: 0.17%
T-Mobile USA Incorporated		6.25			4-1-2021		5,000		5,238
T-Mobile USA Incorporated		6.46			4-28-2019		100,000		101,688
									106,926
Utilities: 0.10%
Independent Power & Renewable Electricity Producers: 0.10%
NRG Energy Incorporated		7.63			1-15-2018		60,000		64,650
Total Corporate Bonds and Notes (Cost $6,659,854)									6,675,798
Loans: 3.55%
Consumer Discretionary: 0.66%
Auto Components: 0.15%
Allison Transmission Incorporated ±		3.50			8-23-2019		100,000		100,264
Media: 0.30%
Live Nation Entertainment Incorporated ±		3.50			8-16-2020		100,000		100,125
Virgin Media Investment Holdings Limited ±		3.65			6-30-2023		90,898		90,929
									191,054
Multiline Retail: 0.21%
Michaels Stores Incorporated ±		3.75			1-28-2020		132,944		133,110
Financials: 0.21%
Diversified Financial Services: 0.21%
Delos Finance SARL ±		3.50			3-6-2021		135,000		135,405
Health Care: 0.34%
Health Care Equipment & Supplies: 0.16%
Prestige Brands Incorporated ±%%<		0.00			9-3-2021		100,000		100,250

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 107

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services: 0.18%
Community Health Systems Incorporated ±		3.92	%		12-31-2018	$	118,263	$	118,079
									118,079
Industrials: 1.02%
Aerospace & Defense: 0.19%
TransDigm Incorporated ±		3.75			2-28-2020		118,522		118,485
Airlines: 0.21%
Delta Air Lines Incorporated ±		0.03			8-24-2022		134,325		134,224
Commercial Services & Supplies: 0.62%
Hertz Corporation ±		3.00			3-11-2018		132,944		132,575
KAR Auction Services Incorporated ±		3.94			3-9-2021		133,082		133,525
ServiceMaster Company ±		4.25			7-1-2021		133,308		133,808
									399,908
Information Technology: 0.50%
Internet Software & Services: 0.10%
Zayo Group LLC ±		3.75			5-6-2021		62,460		62,518
IT Services: 0.16%
First Data Corporation ±		4.19			7-8-2022		100,000		100,208
Semiconductors & Semiconductor Equipment: 0.24%
Avago Technologies ±		4.25			2-1-2023		100,000		100,239
NXP Semiconductors NV ±		3.75			12-7-2020		53,454		53,602
									153,841
Materials: 0.41%
Chemicals: 0.20%
Ineos US Finance LLC ±		3.75			12-15-2020		132,973		131,810
Containers & Packaging: 0.21%
Berry Plastics Group Incorporated ±		3.50			2-8-2020		132,944		132,969
Telecommunication Services: 0.41%
Diversified Telecommunication Services: 0.41%
Level 3 Financing Incorporated ±		3.50			5-31-2022		135,000		134,943
West Corporation ±		3.25			6-30-2018		127,491		127,350
									262,293
Total Loans (Cost $2,267,585)									2,274,418
U.S. Treasury Securities: 65.19%
TIPS		0.13			4-15-2018		283,256		286,837
TIPS		0.13			4-15-2019		1,564,840		1,587,721
TIPS		0.13			4-15-2020		3,848,323		3,897,478
TIPS		0.13			4-15-2021		959,403		969,708
TIPS		0.13			1-15-2022		1,535,891		1,542,670

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

108 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
TIPS		0.13	%		7-15-2022	$	1,672,139	$	1,682,807
TIPS		0.13			1-15-2023		1,738,128		1,733,964
TIPS		0.13			7-15-2024		1,885,170		1,872,185
TIPS		0.25			1-15-2025		1,558,153		1,553,020
TIPS		0.38			7-15-2023		1,723,957		1,755,047
TIPS		0.38			7-15-2025		1,812,274		1,831,388
TIPS		0.63			7-15-2021		1,415,603		1,470,586
TIPS		0.63			1-15-2024		1,750,055		1,803,011
TIPS		0.63			1-15-2026		1,968,939		2,032,955
TIPS		0.63			2-15-2043		569,586		526,414
TIPS		0.75			2-15-2042		848,245		808,671
TIPS		0.75			2-15-2045		1,172,899		1,113,980
TIPS		1.00			2-15-2046		472,289		483,309
TIPS		1.13			1-15-2021		1,322,455		1,398,238
TIPS		1.25			7-15-2020		1,266,453		1,348,310
TIPS		1.38			7-15-2018		1,065,505		1,115,784
TIPS		1.38			1-15-2020		704,633		746,673
TIPS		1.38			2-15-2044		883,710		971,678
TIPS		1.63			1-15-2018		312,546		324,470
TIPS		1.75			1-15-2028		676,235		774,069
TIPS		1.88			7-15-2019		524,106		564,124
TIPS		2.00			1-15-2026		719,778		831,625
TIPS		2.13			1-15-2019		460,231		492,094
TIPS		2.13			2-15-2040		385,560		484,239
TIPS		2.13			2-15-2041		380,541		481,771
TIPS		2.38			1-15-2025		1,149,467		1,351,386
TIPS		2.38			1-15-2027		649,369		781,584
TIPS		2.50			1-15-2029		659,849		817,749
TIPS		2.63			7-15-2017		206,786		215,870
TIPS		3.38			4-15-2032		201,210		287,020
TIPS		3.63			4-15-2028		713,973		969,572
TIPS		3.88			4-15-2029		622,791		878,784
Total U.S. Treasury Securities (Cost $40,364,353)									41,786,791
Yankee Corporate Bonds and Notes: 1.21%
Consumer Discretionary: 0.32%
Auto Components: 0.16%
Schaeffler Holding Finance BV 144A		6.25			11-15-2019		100,000		104,500
Automobiles: 0.16%
Jaguar Land Rover Automotive plc 144A		4.13			12-15-2018		100,000		102,750
Consumer Staples: 0.16%
Food & Staples Retailing: 0.16%
Tesco plc 144A		5.50			11-15-2017		100,000		104,652
Financials: 0.26%
Banks: 0.26%
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		80,000		83,200

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 109

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
Royal Bank of Scotland Group plc		4.70	%		7-3-2018	$	80,000	$	82,507
									165,707
Health Care: 0.15%
Pharmaceuticals: 0.15%
Mallinckrodt International Finance SA		3.50			4-15-2018		100,000		97,250
Information Technology: 0.17%
Communications Equipment: 0.17%
Nokia Corporation		5.38			5-15-2019		100,000		106,600
Materials: 0.15%
Containers & Packaging: 0.15%
Ardagh Packaging Finance plc 144A±		3.63			12-15-2019		95,000		95,238
Total Yankee Corporate Bonds and Notes (Cost $774,066)									776,697
	Yield					Shares
Short-Term Investments: 1.04%
Investment Companies: 0.96%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.23					618,330		618,330
						Principal
U.S. Treasury Securities: 0.08%
U.S. Treasury Bill (z)#		0.30			6-16-2016	$	50,000		49,997
Total Short-Term Investments (Cost $668,323)									668,327

Total investments in securities (Cost $60,745,018) *	98.33	%		63,029,974
Other assets and liabilities, net	1.67			1,067,907
Total net assets	100.00	%	$	64,097,881

† Non-income-earning security

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

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

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

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

(l) The issuer of the security is an affiliated person of the Portfolio 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 and/or unfunded loans.

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

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

* Cost for federal income tax purposes is $60,839,053 and unrealized gains (losses) consists of:

Gross unrealized gains	$	2,850,475
Gross unrealized losses		(659,554	)
Net unrealized gains	$	2,190,921

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

110 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 23.33%
FHLMC		6.00	%		7-1-2017	$	6,356	$	6,412
FHLMC		7.50			7-17-2017		8,298		8,364
FHLMC Series T-54 Class 4A ±		3.14			2-25-2043		415,626		438,143
FHLMC Series T-57 Class 1A2		7.00			7-25-2043		518,364		621,624
FHLMC Series T-63 Class 1A1 ±		1.58			2-25-2045		358,728		360,705
FHLMC Structured Pass-Through Securities Series T-54 Class 3A		7.00			2-25-2043		383,901		456,802
FHLMC Structured Pass-Through Securities Series T-55 Class 1A2		7.00			3-25-2043		578,557		644,152
FHLMC Structured Pass-Through Securities Series T-58 Class 4A		7.50			9-25-2043		644,577		771,594
FNMA ±		1.58			10-1-2034		196,179		199,964
FNMA ±		1.58			4-1-2044		152,455		155,324
FNMA ±		1.58			10-1-2044		207,364		211,366
FNMA ±		1.72			7-1-2017		61		61
FNMA ±		1.84			4-1-2037		237,977		245,337
FNMA ±		1.87			9-1-2033		115,950		119,870
FNMA ±		1.91			4-1-2034		271,239		285,902
FNMA ±		1.92			10-1-2033		304,047		315,239
FNMA ±		2.06			6-1-2033		279,113		293,232
FNMA ±		2.16			8-1-2035		241,485		253,645
FNMA ±		2.20			12-1-2033		250,884		263,025
FNMA ±		2.29			1-1-2036		187,181		195,330
FNMA ±		2.34			7-1-2035		180,369		190,071
FNMA ±		2.46			6-1-2033		200,430		206,150
FNMA		5.50			2-1-2017		12,484		12,589
FNMA Series 2003-W4 Class 3A ±		6.44			10-25-2042		237,132		271,650
FNMA Series 2004-W2 Class 2A2		7.00			2-25-2044		170,650		198,744
FNMA Series 2007-88 Class HC ±		2.59			9-25-2037		207,716		220,182
HUD		0.83			8-1-2016		150,000		150,066
Total Agency Securities (Cost $6,627,572)									7,095,543
Asset-Backed Securities: 26.77%
Ally Auto Receivables Trust Series 2013-2 Class A3		0.79			1-15-2018		26,907		26,898
Ally Auto Receivables Trust Series 2014-SN1 Class A3		0.75			2-21-2017		824		823
Ally Auto Receivables Trust Series 2014-SN2 Class A2B ±		0.74			3-20-2017		9,568		9,567
Ally Auto Receivables Trust Series 2015-1 Class A2		0.92			2-15-2018		92,514		92,484
Ally Auto Receivables Trust Series 2016-1 Class A2A		1.20			8-15-2018		140,000		140,113
Ally Auto Receivables Trust Series 2016-2 Class A2		1.17			10-15-2018		140,000		140,054
Ally Auto Receivables Trust Series 2016-3 Class A2		1.19			12-17-2018		150,000		149,998
American Express Credit Account Master Trust Series 2014-4 Class A		1.43			6-15-2020		130,000		130,551
AmeriCredit Automobile Receivables Trust Series 2013-5 Class A3		0.90			9-10-2018		32,771		32,764
AmeriCredit Automobile Receivables Trust Series 2014-1 Class A3		0.90			2-8-2019		54,456		54,422
AmeriCredit Automobile Receivables Trust Series 2014-4 Class A3		1.27			7-8-2019		125,000		124,951
AmeriCredit Automobile Receivables Trust Series 2015-2 Class A3		1.27			1-8-2020		135,000		134,827
AmeriCredit Automobile Receivables Trust Series 2016-1 Class A2 ±		1.19			6-10-2019		140,000		140,216
AmeriCredit Automobile Receivables Trust Series 2016-2 Class A2A		1.42			10-8-2019		140,000		139,923
Bank of the West Auto Trust Series 2014-1 Class A3 144A		1.09			3-15-2019		114,639		114,556
Bank of the West Auto Trust Series 2015-1 Class A2 144A±		0.78			4-16-2018		55,217		55,194
BMW Vehicle Lease Trust Series 2014-1 Class A3		0.73			2-21-2017		27,406		27,397
Capital Auto Receivables Asset Trust Series 2014-2 Class A4		1.62			10-22-2018		150,000		150,271
Capital Auto Receivables Asset Trust Series 2015-1 Class A2		1.42			6-20-2018		130,000		130,057
Capital Auto Receivables Asset Trust Series 2015-2 Class A1B ±		0.84			10-20-2017		150,000		149,887

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 111

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Capital Auto Receivables Asset Trust Series 2016-1 Class A2B ±		1.14	%		11-20-2018	$	75,000	$	75,121
Capital One Multi-Asset Execution Trust Series 2014-A2 Class A2		1.26			1-15-2020		100,000		100,184
CarMax Auto Owner Trust Series 2014-1 Class A3		0.79			10-15-2018		64,197		64,064
CarMax Auto Owner Trust Series 2015-1 Class A3		1.38			11-15-2019		130,000		130,294
CarMax Auto Owner Trust Series 2015-3 Class A2B ±		0.88			11-15-2018		111,109		111,231
CarMax Auto Owner Trust Series 2016-1 Class A2		1.30			4-15-2019		140,000		140,236
CarMax Auto Owner Trust Series 2016-2 Class A2A		1.24			6-17-2019		150,000		149,833
Chase Issuance Trust Series 2014-A6 Class A6		1.26			7-15-2019		120,000		120,267
Chrysler Capital Auto Receivables Trust Series 2014-AA Class A3 144A		0.83			9-17-2018		27,339		27,326
CNH Equipment Trust Series 2014-A Class A3		0.84			5-15-2019		55,020		54,945
College Loan Corporation Trust Series 2004-1 Class A4 ±		0.83			4-25-2024		103,057		101,488
Fifth Third Auto Trust Series 2014-1 Class A3		0.68			4-16-2018		34,255		34,235
Fifth Third Auto Trust Series 2014-2 Class A3		0.89			11-15-2018		97,525		97,506
Ford Credit Auto Owner Trust Series 2014-A Class A3		0.79			5-15-2018		87,813		87,764
Ford Credit Auto Owner Trust Series 2014-B Class A3		0.90			10-15-2018		83,179		83,153
Ford Credit Auto Owner Trust Series 2014-C Class A3		1.06			5-15-2019		250,000		250,030
Ford Credit Auto Owner Trust Series 2016-A Class A2 ±		0.83			12-15-2018		140,000		140,191
Ford Credit Auto Owner Trust Series 2016-B Class A2A		1.08			3-15-2019		150,000		149,958
GE Equipment Small Ticket LLC Series 2014-1A Class A3 144A		0.95			9-25-2017		58,190		58,127
GM Financial Automobile Lease Series 2014-1A Class A3 144A		1.01			5-22-2017		39,551		39,548
GM Financial Automobile Lease Series 2016-1A Class A2		1.30			7-20-2018		140,000		139,907
GM Financial Automobile Lease Series 2016-2 Class A2A		1.28			10-22-2018		160,000		159,689
GSAMP Trust Series 2005-SEA2 Class A1 144A±		0.80			1-25-2045		138,887		137,356
Honda Auto Receivables Owner Trust Series 2014-1 Class A3		0.67			11-21-2017		52,813		52,776
Honda Auto Receivables Owner Trust Series 2014-4 Class A3		0.99			9-17-2018		95,356		95,348
Honda Auto Receivables Owner Trust Series 2015-3 Class A2		0.92			11-20-2017		123,122		123,122
Honda Auto Receivables Owner Trust Series 2016-2 A2		1.13			9-15-2018		150,000		149,995
Hyundai Auto Lease Securitization Trust Series 2015-A Class A3 144A		1.42			9-17-2018		130,000		130,213
Hyundai Auto Lease Securitization Trust Series 2015-B Class A3 144A		1.40			11-15-2018		140,000		140,239
Hyundai Auto Lease Securitization Trust Series 2016-A Class A2 144A		1.33			7-16-2018		140,000		140,088
Hyundai Auto Lease Securitization Trust Series 2016-B Class A2A 144A		1.24			11-15-2018		150,000		149,995
Hyundai Auto Receivables Trust Series 2014-A Class A3		0.79			7-16-2018		51,917		51,883
Hyundai Auto Receivables Trust Series 2015-A Class A3		1.05			4-15-2019		130,000		129,996
Hyundai Auto Receivables Trust Series 2016-A Class A2		1.21			6-17-2019		130,000		130,007
John Deere Owner Trust Series 2014-A Class A3		0.92			4-16-2018		63,999		63,974
John Deere Owner Trust Series 2015-A Class A3		1.32			6-17-2019		130,000		130,181
Mercedes Benz Auto Lease Trust Series 2016-A Class A2A		1.34			7-16-2018		75,000		75,127
Mercedes Benz Auto Receivables Trust Series 2015-1 Class A2B ±		0.70			6-15-2018		99,802		99,815
Mercedes-Benz Auto Lease Trust Series 2015-A Class A3		1.10			8-15-2017		130,000		130,068
Nissan Auto Receivables Owner Trust Series 2014-A Class A3		0.72			8-15-2018		54,334		54,252
Nissan Auto Receivables Owner Trust Series 2014-B Class A3		1.11			5-15-2019		130,000		130,077
Nissan Auto Receivables Owner Trust Series 2015-A Class A3		1.05			10-15-2019		135,000		134,898
Nissan Auto Receivables Owner Trust Series 2015-B Class A2B ±		0.71			7-16-2018		105,555		105,625
Nissan Auto Receivables Owner Trust Series 2016-A Class A2A		1.22			8-15-2018		150,000		149,893
Santander Drive Auto Receivables Trust Series 2015-3 Class A2A		1.02			9-17-2018		57,853		57,828
Santander Drive Auto Receivables Trust Series 2015-4 Class A2B ±		1.13			12-17-2018		78,958		79,030
Santander Drive Auto Receivables Trust Series 2016-2 Class A2A		1.38			7-15-2019		150,000		149,891
SunTrust Auto Receivables Trust Series 2015-1A Class A2 144A		0.99			6-15-2018		84,283		84,285
Toyota Auto Receivables Owner Trust 2016-B Class A2A		1.02			10-15-2018		180,000		179,866
Toyota Auto Receivables Owner Trust Series 2014-A Class A3		0.67			12-15-2017		51,039		50,993

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

112 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Toyota Auto Receivables Owner Trust Series 2014-B Class A3		0.76	%		3-15-2018	$	77,492	$	77,439
Toyota Auto Receivables Owner Trust Series 2015-B Class A2B ±		0.64			11-15-2017		89,223		89,246
Toyota Auto Receivables Owner Trust Series 2015-C Class A2B ±		0.76			2-15-2018		101,333		101,382
Volkswagen Auto Lease Trust Series 2014-A Class A3		0.80			4-20-2017		37,965		37,959
Volkswagen Auto Lease Trust Series 2015-A Class A3		1.25			12-20-2017		130,000		129,612
Volvo Financial Equipment LLC Series 2014-1A Class A3 144A		0.82			4-16-2018		65,828		65,685
Volvo Financial Equipment LLC Series 2015-1A Class A3 144A		1.51			6-17-2019		150,000		149,907
World Omni Auto Receivables Trust Series 2015-B		0.96			7-15-2019		123,812		123,575
Total Asset-Backed Securities (Cost $8,143,016)									8,141,676
Corporate Bonds and Notes: 26.49%
Consumer Discretionary: 1.10%
Automobiles: 0.33%
American Honda Finance Corporation ±		1.48			2-22-2019		50,000		50,520
Hyundai Capital America 144A		1.45			2-6-2017		50,000		49,987
									100,507
Hotels, Restaurants & Leisure: 0.24%
McDonald’s Corporation		5.80			10-15-2017		70,000		74,309
Specialty Retail: 0.53%
Lowe’s Companies Incorporated		1.63			4-15-2017		160,000		160,855
Consumer Staples: 2.35%
Beverages: 1.09%
Anheuser-Busch InBev NV Companies Incorporated		1.38			7-15-2017		140,000		140,354
Brown Forman Corporation		1.00			1-15-2018		100,000		99,536
PepsiCo Incorporated ±		0.88			7-17-2017		90,000		90,134
									330,024
Food Products: 1.26%
Cargill Incorporated 144A		1.90			3-1-2017		114,000		114,773
Diageo Capital plc		1.50			5-11-2017		90,000		90,321
General Mills Incorporated		5.70			2-15-2017		85,000		87,825
Kraft Heinz Company 144A		1.60			6-30-2017		90,000		90,332
									383,251
Energy: 1.19%
Oil, Gas & Consumable Fuels: 1.19%
Chevron Corporation ±		0.75			2-22-2017		110,000		109,940
Chevron Corporation ±		1.13			5-16-2018		60,000		60,070
Chevron Corporation		1.34			11-9-2017		30,000		30,077
Exxon Mobil Corporation ±		1.23			2-28-2018		90,000		90,747
Marathon Oil Corporation		6.00			10-1-2017		70,000		72,066
									362,900

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 113

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Financials: 10.21%
Banks: 3.33%
Bank of America Corporation		2.00	%		1-11-2018	$	50,000	$	50,185
Bank of America Corporation		3.88			3-22-2017		70,000		71,423
Berkshire Hathaway Finance Corporation ±		1.32			3-15-2019		100,000		100,879
Branch Banking & Trust Company ±		0.95			9-13-2016		250,000		250,080
Citigroup Incorporated		1.80			2-5-2018		150,000		150,162
Citigroup Incorporated		1.85			11-24-2017		40,000		40,105
HSBC USA Incorporated ±		1.40			8-7-2018		110,000		109,581
JPMorgan Chase & Company		3.15			7-5-2016		120,000		120,249
JPMorgan Chase & Company		6.00			1-15-2018		60,000		64,167
US Bancorp ±		1.12			11-15-2018		55,000		54,949
									1,011,780
Capital Markets: 1.99%
Bank of New York Mellon Corporation ±		1.50			8-17-2020		90,000		89,715
Charles Schwab Corporation		2.20			7-25-2018		90,000		91,079
Goldman Sachs Group Incorporated ±		1.68			4-25-2019		70,000		70,211
Goldman Sachs Group Incorporated		2.38			1-22-2018		40,000		40,430
Goldman Sachs Group Incorporated		5.95			1-18-2018		50,000		53,331
Morgan Stanley		4.75			3-22-2017		50,000		51,384
Morgan Stanley		5.55			4-27-2017		115,000		119,445
State Street Corporation ±		1.53			8-18-2020		90,000		90,269
									605,864
Consumer Finance: 2.54%
American Honda Finance Corporation		0.95			5-5-2017		60,000		60,014
American Honda Finance Corporation		1.55			12-11-2017		30,000		30,156
BMW Bank North America		0.70			7-18-2016		245,000		245,112
Caterpillar Financial Service		1.80			11-13-2018		90,000		91,187
Daimler Finance North America LLC 144A		2.63			9-15-2016		150,000		150,700
John Deere Capital Corporation ±		1.20			1-8-2019		75,000		75,401
Toyota Motor Credit Corporation		2.05			1-12-2017		120,000		120,832
									773,402
Diversified Financial Services: 0.61%
AIG Global Funding 144A		1.65			12-15-2017		100,000		100,222
General Electric Capital Corporation		5.63			9-15-2017		80,000		84,605
									184,827
Insurance: 0.76%
Marsh & McLennan Company Incorporated		2.55			10-15-2018		54,000		54,922
New York Life Global Funding 144A		1.55			11-2-2018		70,000		70,253
Travelers Company Incorporated		5.80			5-15-2018		97,000		105,152
									230,327
REITs: 0.98%
AvalonBay Communities Incorporated		5.70			3-15-2017		80,000		82,561
Boston Properties LP		3.70			11-15-2018		90,000		93,977

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

114 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
REITs (continued)
ERP Operating LP		5.75	%		6-15-2017	$	30,000	$	31,348
Simon Property Group LP		2.15			9-15-2017		90,000		90,845
									298,731
Health Care: 1.90%
Biotechnology: 0.22%
AbbVie Incorporated		1.80			5-14-2018		65,000		65,117
Health Care Equipment & Supplies: 0.46%
Becton Dickinson & Company		1.80			12-15-2017		50,000		50,206
Medtronic pIc ±		1.43			3-15-2020		90,000		90,916
									141,122
Health Care Providers & Services: 0.63%
Cardinal Health Incorporated		1.90			6-15-2017		90,000		90,526
UnitedHealth Group Incorporated		1.45			7-17-2017		70,000		70,300
UnitedHealth Group Incorporated		1.70			2-15-2019		30,000		30,186
									191,012
Pharmaceuticals: 0.59%
Johnson & Johnson ±		0.91			3-1-2019		90,000		90,172
Merck & Company Incorporated ±		0.75			2-10-2017		90,000		90,021
									180,193
Industrials: 2.29%
Aerospace & Defense: 0.40%
Lockheed Martin Corporation		1.85			11-23-2018		30,000		30,266
Northrop Grumman Corporation		1.75			6-1-2018		90,000		90,141
									120,407
Commercial Services & Supplies: 0.26%
Cintas Corporation No. 2		2.85			6-1-2016		80,000		80,000
Electrical Equipment: 0.56%
ABB Treasury Center USA Incorporated 144A		2.50			6-15-2016		90,000		90,056
Eaton Corporation		1.50			11-2-2017		80,000		80,166
									170,222
Industrial Conglomerates: 0.16%
Roper Industries Incorporated		1.85			11-15-2017		50,000		50,110
Machinery: 0.32%
Parker Hannifin Corporation		5.50			5-15-2018		90,000		97,338
Road & Rail: 0.59%
Burlington Northern Santa Fe LLC		5.65			5-1-2017		80,000		83,374
Union Pacific Corporation		5.75			11-15-2017		90,000		95,910
									179,284

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 115

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 1.58%
Communications Equipment: 0.39%
Cisco Systems Incorporated ±		0.94	%		6-15-2018	$	90,000	$	90,154
Cisco Systems Incorporated ±		1.25			2-21-2018		30,000		30,208
									120,362
IT Services: 0.16%
Visa Incorporated		1.20			12-14-2017		50,000		50,145
Software: 0.30%
Oracle Corporation ±		0.83			7-7-2017		90,000		90,158
Technology Hardware, Storage & Peripherals: 0.73%
Apple Incorporated		0.90			5-12-2017		90,000		90,104
Apple Incorporated		1.70			2-22-2019		30,000		30,278
HP Enterprise Company 144A		2.45			10-5-2017		100,000		100,875
									221,257
Materials: 0.89%
Chemicals: 0.89%
Ecolab Incorporated		3.00			12-8-2016		90,000		90,928
Praxair Incorporated		1.05			11-7-2017		90,000		89,818
Sherwin-Williams Company		1.35			12-15-2017		90,000		90,019
									270,765
Telecommunication Services: 0.73%
Diversified Telecommunication Services: 0.73%
AT&T Incorporated		1.60			2-15-2017		90,000		90,316
Verizon Communications Incorporated		1.35			6-9-2017		130,000		130,392
									220,708
Utilities: 4.25%
Electric Utilities: 2.91%
Alabama Power Company Series Q		5.50			10-15-2017		90,000		94,834
Commonwealth Edison Company		5.95			8-15-2016		120,000		121,249
Connecticut Light & Power		5.38			3-1-2017		75,000		77,359
Florida Power & Light Company		5.55			11-1-2017		115,000		121,779
Florida Power & Light Company		5.80			9-15-2017		80,000		84,540
Public Service Colorado 1st Mortgage		5.80			8-1-2018		39,000		42,578
Southern California Edison Company		1.13			5-1-2017		90,000		90,149
Union Electric Company		6.40			6-15-2017		120,000		126,541
Westar Energy Incorporated		5.15			1-1-2017		75,000		76,481
Xcel Energy Incorporated		1.20			6-1-2017		50,000		49,945
									885,455
Gas Utilities: 0.30%
Southern California Gas Company		5.45			4-15-2018		85,000		90,810

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

116 Wells Fargo Allocation Funds Portfolio of investments—May 31, 2016

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Multi-Utilities: 1.04%
Consumers Energy Company		5.15	%		2-15-2017	$	130,000	$	133,910
Entergy Mississippi Incorporated		3.25			6-1-2016		80,000		80,000
Peco Energy Company		5.35			3-1-2018		96,000		102,597
									316,507
Total Corporate Bonds and Notes (Cost $8,038,308)									8,057,749
Municipal Obligations: 0.92%
Arizona: 0.23%
Arizona School Facilities Board Certificate of Participation Series A-3 (Miscellaneous Revenue)		0.95			9-1-2016		70,000		70,008
Michigan: 0.20%
Chippewa Valley MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		1.18			5-1-2017		60,000		60,226
Minnesota: 0.10%
Saint Paul MN Housing & RDA HealthPartners Obligated Group Series B (Health Revenue)		1.04			7-1-2016		30,000		30,005
North Carolina: 0.39%
North Carolina Education Assistance Authority Student Loan Notes Series 2011-1 Tranche A-2 (Education Revenue) ±		1.54			1-26-2026		118,723		118,519
Total Municipal Obligations (Cost $278,623)									278,758
Non-Agency Mortgage-Backed Securities: 6.55%
Bear Stearns Commercial Mortgage Securities Trust Series 2007-PW16 Class A1A ±		5.72			6-11-2040		86,357		89,258
Bear Stearns Commercial Mortgage Securities Trust Series 2007-PW17 Class A1A ±		5.65			6-11-2050		124,107		128,762
CGGS Commercial Mortgage Trust Series 2016 144A±		2.08			2-15-2033		130,000		130,938
CIT Education Loan Trust Series 2005-1 Class A3 ±		0.75			3-15-2026		63,901		63,281
CNH Equipment Trust Series 2014-B Class A3		0.91			5-15-2019		76,630		76,546
CNH Equipment Trust Series 2015 Class A2B ±		0.90			12-17-2018		134,312		134,434
CNH Equipment Trust Series 2016-B Class A2A (a)		1.31			10-15-2019		150,000		150,058
Commercial Mortgage Trust Pass-Through Certificates Series 2007-C9 Class A4 ±		5.81			12-10-2049		127,339		131,741
Dell Equipment Finance Trust Series 2015-1 Class A2 144A		1.01			7-24-2017		86,863		86,830
GAHR Commercial Mortgage Trust Series 2015 Class AFL1 144A±		1.73			12-15-2016		138,717		138,806
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class A1A		5.44			1-15-2049		92,917		94,574
MMAF Equipment Finance LLC Series 2016-A Class A2 144A		1.39			12-17-2018		150,000		149,900
Morgan Stanley Capital I Series 2007-T27 Class A4 ±		5.64			6-11-2042		121,607		125,980
SCG Trust Series 2013-SRP1 Class A 144A±		1.83			11-15-2026		140,000		139,750
SLMA Series 2006-1 Class A5 ±		0.75			7-26-2021		135,000		134,119
Structured Asset Securities Corporation Series 2006-RF3 Class 1A1 144A		6.00			10-25-2036		124,536		123,245
Towd Point Mortgage Trust Series 2015-6 Class A1 144A±(a)		3.50			4-25-2055		92,048		93,986
Total Non-Agency Mortgage-Backed Securities (Cost $2,001,056)									1,992,208
U.S. Treasury Securities: 12.89%
U.S. Treasury Note		0.63			7-31-2017		300,000		299,437
U.S. Treasury Note		0.63			9-30-2017		1,350,000		1,346,783
U.S. Treasury Note		0.75			2-28-2018		875,000		873,223
U.S. Treasury Note		0.88			7-15-2017		1,400,000		1,401,477
Total U.S. Treasury Securities (Cost $3,919,962)									3,920,920

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

Portfolio of investments—May 31, 2016 Wells Fargo Allocation Funds 117

STABLE INCOME PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Yankee Corporate Bonds and Notes: 1.70%
Energy: 0.30%
Oil, Gas & Consumable Fuels: 0.30%
Shell International Finance Company ±		0.95	%		5-10-2017	$	90,000	$	90,096
Financials: 0.92%
Banks: 0.59%
Bank of Nova Scotia ±		1.10			6-11-2018		90,000		89,815
Toronto Dominion Bank ±		1.18			7-23-2018		90,000		89,992
									179,807
Diversified Financial Services: 0.33%
ConocoPhillips Canada Funding Company		5.63			10-15-2016		100,000		101,611
Industrials: 0.48%
Road & Rail: 0.48%
Canadian National Railway Company		1.45			12-15-2016		90,000		90,251
Canadian National Railway Company		5.80			6-1-2016		57,000		57,000
									147,251
Total Yankee Corporate Bonds and Notes (Cost $519,012)									518,765
	Yield					Shares
Short-Term Investments: 1.04%
Investment Companies: 1.04%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					317,146		317,146
Total Short-Term Investments (Cost $317,146)									317,146

Total investments in securities (Cost $29,844,695) *	99.69	%		30,322,765
Other assets and liabilities, net	0.31			95,436
Total net assets	100.00	%	$	30,418,201

± 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.

(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 Portfolio 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 $29,844,695 and unrealized gains (losses) consists of:

Gross unrealized gains	$	510,739
Gross unrealized losses		(32,669	)
Net unrealized gains	$	478,070

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

118 Wells Fargo Allocation Funds Statements of assets and liabilities—May 31, 2016

	C&B Large Cap Value Portfolio			Diversified Large Cap Growth Portfolio
Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	278,436,916		$	113,251,607
In affiliated securities, at value (see cost below)		26,317,459			5,231,602
Total investments, at value (see cost below)		304,754,375			118,483,209
Cash		17,670			0
Foreign currency, at value (see cost below)		0			0
Receivable for investments sold		259,153			922,481
Receivable for dividends		554,970			120,029
Receivable for securities lending income		3,494			1,484
Prepaid expenses and other assets		592			330
Total assets		305,590,254			119,527,533
Liabilities
Payable for investments purchased		0			591,975
Payable upon receipt of securities loaned		12,454,900			3,113,406
Payable for daily variation margin on open futures contracts		0			0
Due to custodian bank		0			0
Advisory fee payable		159,438	��		47,773
Accrued expenses and other liabilities		11,627			15,903
Total liabilities		12,625,965			3,769,057
Total net assets	$	292,964,289		$	115,758,476
Investments in unaffiliated securities (including securities on loan), at cost	$	210,754,976		$	76,805,738
Investments in affiliated securities, at cost	$	26,317,459		$	5,231,602
Total investments, at cost	$	237,072,435		$	82,037,340
Securities on loan, at value	$	12,216,762		$	3,056,884
Foreign currency, at cost	$	0		$	0

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

Statements of assets and liabilities—May 31, 2016 Wells Fargo Allocation Funds 119

Emerging Growth Portfolio		Index Portfolio		International Growth Portfolio		International Value Portfolio		Large Company Value Portfolio		Small Company Growth Portfolio		Small Company Value Portfolio
$	881,803,132	$	2,280,382,178	$	139,081,211	$	493,603,692	$	77,925,106	$	1,165,439,366	$	213,456,058
	107,801,958		67,271,596		12,373,217		16,847,390		2,883,174		191,548,024		10,841,628
	989,605,090		2,347,653,774		151,454,428		510,451,082		80,808,280		1,356,987,390		224,297,686
	0		22,803		0		0		9,201		0		0
	0		0		293,888		8,634,767		0		0		0
	2,761,183		1,362,819		866,987		33,527		699,380		7,015,660		4,010,253
	59,172		5,412,117		417,958		3,701,260		198,742		442,558		189,778
	149,480		6,050		53,622		232,005		3,040		204,650		20,988
	625		1,706		797		494		538		5,660		615
	992,575,550		2,354,459,269		153,087,680		523,053,135		81,719,181		1,364,655,918		228,519,320
	642,370		1,078,571		1,738,254		0		796,799		15,415,653		4,829,981
	92,823,723		12,693,253		2,506,158		14,316,539		1,759,295		151,177,536		5,965,825
	0		36,000		0		0		0		0		0
	0		0		328,836		0		0		682,735		0
	581,155		167,698		106,110		361,069		40,657		771,774		143,912
	40,637		71,289		31,707		56,557		7,600		11,780		9,832
	94,087,885		14,046,811		4,711,065		14,734,165		2,604,351		168,059,478		10,949,550
$	898,487,665	$	2,340,412,458	$	148,376,615	$	508,318,970	$	79,114,830	$	1,196,596,440	$	217,569,770
$	694,969,727	$	1,093,021,946	$	123,433,617	$	550,701,975	$	66,303,876	$	1,086,280,944	$	191,380,274
$	107,801,958	$	53,161,799	$	12,373,217	$	16,847,390	$	2,883,174	$	191,548,024	$	10,841,628
$	802,771,685	$	1,146,183,745	$	135,806,834	$	567,549,365	$	69,187,050	$	1,277,828,968	$	202,221,902
$	91,305,713	$	12,474,646	$	2,382,463	$	13,468,272	$	1,690,157	$	149,147,065	$	5,896,435
$	0	$	0	$	296,547	$	8,869,296	$	0	$	0	$	0

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

120 Wells Fargo Allocation Funds Statements of assets and liabilities—May 31, 2016

	Core Bond Portfolio		Managed Fixed Income Portfolio
Assets
Investments
In unaffiliated securities, at value (see cost below)	$	4,530,168,228	$	124,072,455
In affiliated securities, at value (see cost below)		198,368,365		4,394,097
Total investments, at value (see cost below)		4,728,536,593		128,466,552
Cash		7,419		7,006
Segregated cash		0		0
Foreign currency, at value (see cost below)		0		0
Receivable for investments sold		1,149,740,110		0
Principal paydown receivable		143,538		0
Receivable for dividends and interest		17,908,065		940,980
Receivable for daily variation margin on open futures contracts		0		0
Receivable for securities lending income		5,040		372
Prepaid expenses and other assets		28,457		1,533
Total assets		5,896,369,222		129,416,443
Liabilities
Payable for investments purchased		1,554,183,980		2,478,918
Payable upon receipt of securities loaned		0		143,100
Payable for daily variation margin on open futures contracts		0		0
Advisory fee payable		1,244,119		33,208
Shareholder report expenses payable		1,507		2,570
Custodian and accounting fees payable		57,367		4,668
Accrued expenses and other liabilities		47,191		249
Total liabilities		1,555,534,164		2,662,713
Total net assets	$	4,340,835,058	$	126,753,730
Investments in unaffiliated securities, at cost	$	4,493,188,530	$	120,537,981
Investments in affiliated securities, at cost	$	198,368,365	$	4,394,097
Total investments, at cost	$	4,691,556,895	$	124,932,078
Securities on loan, at value	$	0	$	140,535
Foreign currency, at cost	$	0	$	0

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

Statements of assets and liabilities—May 31, 2016 Wells Fargo Allocation Funds 121

Real Return Portfolio		Stable Income Portfolio
$	62,411,644	$	30,005,619
	618,330		317,146
	63,029,974		30,322,765
	0		0
	0		12,274
	21,680		0
	1,190,800		0
	0		0
	263,082		92,033
	31		0
	2,930		15
	206		324
	64,508,703		30,427,411
	388,377		0
	0		0
	1,203		117
	15,974		1,921
	2,654		4,124
	1,809		1,966
	805		1,082
	410,822		9,210
$	64,097,881	$	30,418,201
$	60,126,688	$	29,527,549
$	618,330	$	317,146
$	60,745,018	$	29,844,695
$	0	$	0
$	21,777	$	0

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

122 Wells Fargo Allocation Funds Statements of operations—year ended May 31, 2016

	C&B Large Cap Value Portfolio			Diversified Large Cap Growth Portfolio
Investment income
Dividends*	$	6,182,005		$	1,033,489
Income from affiliated securities		30,399			6,535
Securities lending income, net		20,442			11,053
Interest		0			0
Total investment income		6,232,846			1,051,077
Expenses
Advisory fee		2,013,954			747,058
Custody and accounting fees		23,584			23,283
Professional fees		44,260			48,177
Shareholder report expenses		1,061			2,050
Trustees’ fees and expenses		12,601			19,695
Other fees and expenses		9,104			13,402
Total expenses		2,104,564			853,665
Less: Fee waivers and/or expense reimbursements		0			(138,673	)
Net expenses		2,104,564			714,992
Net investment income (loss)		4,128,282			336,085
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		14,000,084			5,117,947
Affiliated securities		0			0
Futures transactions		0			0
Net realized gain (losses) on investments		14,000,084			5,117,947
Net change in unrealized gains (losses) on:
Unaffiliated securities		(18,760,215	)		(7,846,480	)
Affiiliated securities		0			0
Futures transactions		0			0
Net change in unrealized gains (losses) on investments		(18,760,215	)		(7,846,480	)
Net realized and unrealized gains (losses) on investments		(4,760,131	)		(2,728,533	)
Net increase (decrease) in net assets resulting from operations	$	(631,849	)	$	(2,392,448	)
* Net of foreign dividend withholding taxes in the amount of		$38,949			$2,403

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

Statements of operations—year ended May 31, 2016 Wells Fargo Allocation Funds 123

Emerging Growth Portfolio			Index Portfolio			International Growth Portfolio			International Value Portfolio			Large Company Value Portfolio			Small Company Growth Portfolio			Small Company Value Portfolio
$	1,009,155		$	53,355,178		$	3,063,804		$	16,120,553		$	1,726,450		$	4,949,491		$	2,915,555
	44,350			1,008,833			19,787			11,579			5,223			143,025			17,302
	2,887,743			137,335			126,956			723,831			38,150			2,906,307			102,931
	0			1,715			0			0			0			0			0
	3,941,248			54,503,061			3,210,547			16,855,963			1,769,823			7,998,823			3,035,788
	7,746,284			2,086,232			1,270,909			4,189,538			504,535			8,131,574			1,655,212
	59,221			144,630			86,894			187,952			10,912			68,505			22,717
	46,987			60,723			57,356			60,833			46,940			48,594			46,658
	4,524			7,122			1,429			2,646			1,125			1,984			2,789
	12,250			9,545			16,976			11,965			15,565			11,943			12,045
	34,034			264,943			48,726			53,937			14,613			25,031			9,443
	7,903,300			2,573,195			1,482,290			4,506,871			593,690			8,287,631			1,748,864
	0			(11,554	)		0			0			(20,538	)		0			0
	7,903,300			2,561,641			1,482,290			4,506,871			573,152			8,287,631			1,748,864
	(3,962,052	)		51,941,420			1,728,257			12,349,092			1,196,671			(288,808	)		1,286,924
	18,746,231			153,490,597			(1,635,815	)		(1,517,228	)		(1,089,821	)		(95,998,247	)		12,552,384
	0			1,980,988			0			0			0			0			0
	0			(1,069,185	)		0			0			0			0			0
	18,746,231			154,402,400			(1,635,815	)		(1,517,228	)		(1,089,821	)		(95,998,247	)		12,552,384
	(175,228,106	)		(175,233,159	)		(20,243,476	)		(73,474,825	)		(3,378,107	)		(55,183,521	)		(24,625,962	)
	0			(5,340,034	)		0			0			0			0			0
	0			950,920			0			0			0			0			0
	(175,228,106	)		(179,622,273	)		(20,243,476	)		(73,474,825	)		(3,378,107	)		(55,183,521	)		(24,625,962	)
	(156,481,875	)		(25,219,873	)		(21,879,291	)		(74,992,053	)		(4,467,928	)		(151,181,768	)		(12,073,578	)
$	(160,443,927	)	$	26,721,547		$	(20,151,034	)	$	(62,642,961	)	$	(3,271,257	)	$	(151,470,576	)	$	(10,786,654	)
	$0			$26,513			$278,962			$2,059,737			$882			$10,989			$0

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

124 Wells Fargo Allocation Funds Statements of operations—year ended May 31, 2016

	Core Bond Portfolio			Managed Fixed Income Portfolio
Investment income
Interest*	$	84,398,045		$	4,235,725
Income from affiliated securities		558,083			8,545
Securities lending income, net		140,636			2,790
Dividends**		0			0
Total investment income		85,096,764			4,247,060
Expenses
Advisory fee		13,642,706			483,661
Custody and accounting fees		207,548			16,323
Professional fees		78,405			56,291
Shareholder report expenses		4,066			2,616
Trustees’ fees and expenses		11,445			14,388
Other fees and expenses		23,050			7,353
Total expenses		13,967,220			580,632
Less: Fee waivers and/or expense reimbursements		(517,427	)		(110,513	)
Net expenses		13,449,793			470,119
Net investment income		71,646,971			3,776,941
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		33,934,338			1,250,302
Futures transactions		0			0
TBA sale commitments		(189,467	)		0
Net realized gain (losses) on investments		33,744,871			1,250,302
Net change in unrealized gains (losses) on:
Unaffiliated securities		4,164,647			(257,799	)
Futures transactions		0			0
Net change in unrealized gains (losses) on investments		4,164,647			(257,799	)
Net realized and unrealized gains (losses) on investments		37,909,518			992,503
Net increase in net assets resulting from operations	$	109,556,489		$	4,769,444
* Net of foreign interest withholding taxes in the amount of		$0			$25
** Net of foreign dividend withholding taxes in the amount of		$0			$0

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

Statements of operations—year ended May 31, 2016 Wells Fargo Allocation Funds 125

Real Return Portfolio			Stable Income Portfolio
$	816,658		$	449,902
	1,913			2,017
	11,283			256
	223,749			0
	1,053,603			452,175
	222,726			83,551
	12,881			9,872
	45,224			53,826
	1,435			1,080
	18,201			17,918
	8,575			5,937
	309,042			172,184
	(64,822	)		(59,251	)
	244,220			112,933
	809,383			339,242
	(74,459	)		2,319
	(57,211	)		(30,710	)
	0			0
	(131,670	)		(28,391	)
	490,429			(86,200	)
	(5,454	)		3,799
	484,975			(82,401	)
	353,305			(110,792	)
$	1,162,688		$	228,450
	$0			$0
	$12,907			$0

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

126 Wells Fargo Allocation Funds Statements of changes in net assets

	C&B Large Cap Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	4,128,282		$	3,962,347
Net realized gains on investments		14,000,084			41,880,494
Net change in unrealized gains (losses) on investments		(18,760,215	)		(13,267,776	)
Net increase (decrease) in net assets resulting from operations		(631,849	)		32,575,065
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		38,393,377			32,358,693
Withdrawals		(80,332,043	)		(46,347,409	)
Net decrease in net assets resulting from capital share transactions		(41,938,666	)		(13,988,716	)
Total increase (decrease) in net assets		(42,570,515	)		18,586,349
Net assets
Beginning of period		335,534,804			316,948,455
End of period	$	292,964,289		$	335,534,804

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

Statements of changes in net assets Wells Fargo Allocation Funds 127

	Diversified Large Cap Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	336,085		$	378,418
Net realized gains on investments		5,117,947			13,356,513
Net change in unrealized gains (losses) on investments		(7,846,480	)		2,762,375
Net increase (decrease) in net assets resulting from operations		(2,392,448	)		16,497,306
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		7,089,759			1,385,145
Withdrawals		(12,268,696	)		(38,000,934	)
Net decrease in net assets resulting from capital share transactions		(5,178,937	)		(36,615,789	)
Total decrease in net assets		(7,571,385	)		(20,118,483	)
Net assets
Beginning of period		123,329,861			143,448,344
End of period	$	115,758,476		$	123,329,861

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

128 Wells Fargo Allocation Funds Statements of changes in net assets

	Emerging Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment loss	$	(3,962,052	)	$	(7,075,125	)
Net realized gains on investments		18,746,231			124,199,895
Net change in unrealized gains (losses) on investments		(175,228,106	)		125,177,937
Net increase (decrease) in net assets resulting from operations		(160,443,927	)		242,302,707
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		105,565,223			45,776,720
Withdrawals		(194,401,064	)		(236,510,647	)
Net decrease in net assets resulting from capital share transactions		(88,835,841	)		(190,733,927	)
Total increase (decrease) in net assets		(249,279,768	)		51,568,780
Net assets
Beginning of period		1,147,767,433			1,096,198,653
End of period	$	898,487,665		$	1,147,767,433

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

Statements of changes in net assets Wells Fargo Allocation Funds 129

	Index Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	51,941,420		$	54,937,429
Net realized gains on investments		154,402,400			151,694,995
Net change in unrealized gains (losses) on investments		(179,622,273	)		106,085,589
Net increase in net assets resulting from operations		26,721,547			312,718,013
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		66,728,942			163,917,502
Withdrawals		(523,281,965	)		(543,742,749	)
Net decrease in net assets resulting from capital share transactions		(456,553,023	)		(379,825,247	)
Total decrease in net assets		(429,831,476	)		(67,107,234	)
Net assets
Beginning of period		2,770,243,934			2,837,351,168
End of period	$	2,340,412,458		$	2,770,243,934

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

130 Wells Fargo Allocation Funds Statements of changes in net assets

	International Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	1,728,257		$	1,168,188
Net realized gains (losses) on investments		(1,635,815	)		5,764,586
Net change in unrealized gains (losses) on investments		(20,243,476	)		1,080,710
Net increase (decrease) in net assets resulting from operations		(20,151,034	)		8,013,484
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		15,674,750			9,541,797
Withdrawals		(5,551,430	)		(15,259,152	)
Net increase (decrease) in net assets resulting from capital share transactions		10,123,320			(5,717,355	)
Total increase (decrease) in net assets		(10,027,714	)		2,296,129
Net assets
Beginning of period		158,404,329			156,108,200
End of period	$	148,376,615		$	158,404,329

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

Statements of changes in net assets Wells Fargo Allocation Funds 131

	International Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	12,349,092		$	12,375,837
Net realized gains (losses) on investments		(1,517,228	)		12,459,307
Net change in unrealized gains (losses) on investments		(73,474,825	)		(27,933,255	)
Net decrease in net assets resulting from operations		(62,642,961	)		(3,098,111	)
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		46,792,442			42,159,536
Withdrawals		(10,044,159	)		(17,083,113	)
Net increase in net assets resulting from capital share transactions		36,748,283			25,076,423
Total increase (decrease) in net assets		(25,894,678	)		21,978,312
Net assets
Beginning of period		534,213,648			512,235,336
End of period	$	508,318,970		$	534,213,648

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

132 Wells Fargo Allocation Funds Statements of changes in net assets

	Large Company Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	1,196,671		$	964,436
Net realized gains (losses) on investments		(1,089,821	)		9,724,164
Net change in unrealized gains (losses) on investments		(3,378,107	)		(3,904,014	)
Net increase (decrease) in net assets resulting from operations		(3,271,257	)		6,784,586
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		6,867,155			1,636,829
Withdrawals		(6,977,356	)		(21,975,522	)
Net decrease in net assets resulting from capital share transactions		(110,201	)		(20,338,693	)
Total decrease in net assets		(3,381,458	)		(13,554,107	)
Net assets
Beginning of period		82,496,288			96,050,395
End of period	$	79,114,830		$	82,496,288

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

Statements of changes in net assets Wells Fargo Allocation Funds 133

	Small Company Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment loss	$	(288,808	)	$	(1,603,331	)
Net realized gains (losses) on investments		(95,998,247	)		17,519,892
Net change in unrealized gains (losses) on investments		(55,183,521	)		73,745,204
Net increase (decrease) in net assets resulting from operations		(151,470,576	)		89,661,765
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		708,902,550			343,108,775
Withdrawals		(112,220,954	)		(37,300,648	)
Net increase in net assets resulting from capital share transactions		596,681,596			305,808,127
Total increase in net assets		445,211,020			395,469,892
Net assets
Beginning of period		751,385,420			355,915,528
End of period	$	1,196,596,440		$	751,385,420

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

134 Wells Fargo Allocation Funds Statements of changes in net assets

	Small Company Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	1,286,924		$	1,850,375
Net realized gains on investments		12,552,384			16,879,349
Net change in unrealized gains (losses) on investments		(24,625,962	)		(3,678,556	)
Net increase (decrease) in net assets resulting from operations		(10,786,654	)		15,051,168
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		36,132,062			22,862,632
Withdrawals		(23,471,861	)		(28,565,086	)
Net increase (decrease) in net assets resulting from capital share transactions		12,660,201			(5,702,454	)
Total increase in net assets		1,873,547			9,348,714
Net assets
Beginning of period		215,696,223			206,347,509
End of period	$	217,569,770		$	215,696,223

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

Statements of changes in net assets Wells Fargo Allocation Funds 135

	Core Bond Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	71,646,971		$	58,488,996
Net realized gains on investments		33,744,871			54,777,871
Net change in unrealized gains (losses) on investments		4,164,647			(15,603,380	)
Net increase in net assets resulting from operations		109,556,489			97,663,487
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		1,207,036,360			1,275,843,092
Withdrawals		(728,304,768	)		(517,501,361	)
Net increase in net assets resulting from capital share transactions		478,731,592			758,341,731
Total increase in net assets		588,288,081			856,005,218
Net assets
Beginning of period		3,752,546,977			2,896,541,759
End of period	$	4,340,835,058		$	3,752,546,977

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

136 Wells Fargo Allocation Funds Statements of changes in net assets

	Managed Fixed Income Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	3,776,941		$	3,704,473
Net realized gains on investments		1,250,302			1,635,962
Net change in unrealized gains (losses) on investments		(257,799	)		(507,703	)
Net increase in net assets resulting from operations		4,769,444			4,832,732
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		18,117,390			17,767,001
Withdrawals		(17,218,838	)		(14,012,007	)
Net increase in net assets resulting from capital share transactions		898,552			3,754,994
Total increase in net assets		5,667,996			8,587,726
Net assets
Beginning of period		121,085,734			112,498,008
End of period	$	126,753,730		$	121,085,734

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

Statements of changes in net assets Wells Fargo Allocation Funds 137

	Real Return Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	809,383		$	400,921
Net realized gains (losses) on investments		(131,670	)		1,132,514
Net change in unrealized gains (losses) on investments		484,975			(896,307	)
Net increase in net assets resulting from operations		1,162,688			637,128
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		29,489,684			12,526,145
Withdrawals		(14,951,275	)		(11,966,906	)
Net increase in net assets resulting from capital share transactions		14,538,409			559,239
Total increase in net assets		15,701,097			1,196,367
Net assets
Beginning of period		48,396,784			47,200,417
End of period	$	64,097,881		$	48,396,784

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

138 Wells Fargo Allocation Funds Statements of changes in net assets

	Stable Income Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	339,242		$	308,337
Net realized gains (losses) on investments		(28,391	)		148
Net change in unrealized gains (losses) on investments		(82,401	)		(79,402	)
Net increase in net assets resulting from operations		228,450			229,083
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		5,915,120			3,703,378
Withdrawals		(2,801,173	)		(1,665,191	)
Net increase in net assets resulting from capital share transactions		3,113,947			2,038,187
Total increase in net assets		3,342,397			2,267,270
Net assets
Beginning of period		27,075,804			24,808,534
End of period	$	30,418,201		$	27,075,804

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

Financial highlights Wells Fargo Allocation Funds 139

	Ratio to average net assets (annualized)									Total return			Portfolio turnover rate
	Net investment income (loss)			Gross expenses			Net expenses
C&B Large Cap Value Portfolio
Year ended May 31, 2016		1.33	%		0.68	%		0.68	%		0.35	%		29	%
Year ended May 31, 2015		1.20	%		0.68	%		0.68	%		10.29	%		35	%
Year ended May 31, 2014		1.35	%		0.68	%		0.68	%		17.80	%		22	%
Year ended May 31, 2013		1.73	%		0.68	%		0.68	%		29.30	%		18	%
Year ended May 31, 2012		1.81	%		0.68	%		0.68	%		(4.61	)%		21	%
Diversified Large Cap Growth Portfolio
Year ended May 31, 2016		0.29	%		0.74	%		0.62	%		(2.28	)%		59	%
Year ended May 31, 2015		0.28	%		0.72	%		0.62	%		13.11	%		46	%
Year ended May 31, 2014		0.15	%		0.72	%		0.62	%		21.70	%		54	%
Year ended May 31, 2013		0.51	%		0.71	%		0.62	%		20.30	%		56	%
Year ended May 31, 2012		0.24	%		0.71	%		0.62	%		1.26	%		79	%
Emerging Growth Portfolio
Year ended May 31, 2016		(0.40	)%		0.80	%		0.80	%		(14.47	)%		66	%
Year ended May 31, 2015		(0.63	)%		0.80	%		0.80	%		24.02	%		56	%
Year ended May 31, 2014		(0.62	)%		0.80	%		0.80	%		11.92	%		63	%
Year ended May 31, 2013		(0.47	)%		0.80	%		0.80	%		20.53	%		65	%
Year ended May 31, 2012		(0.57	)%		0.80	%		0.80	%		(4.83	)%		75	%
Index Portfolio
Year ended May 31, 2016		2.12	%		0.11	%		0.10	%		1.62	%		4	%
Year ended May 31, 2015		1.96	%		0.11	%		0.11	%		11.69	%		4	%
Year ended May 31, 2014		1.99	%		0.10	%		0.10	%		20.33	%		5	%
Year ended May 31, 2013		2.20	%		0.09	%		0.09	%		27.22	%		4	%
Year ended May 31, 2012		2.09	%		0.10	%		0.10	%		(0.52	)%		9	%
International Growth Portfolio
Year ended May 31, 2016		1.16	%		0.99	%		0.99	%		(12.40	)%		62	%
Year ended May 31, 2015		0.76	%		1.00	%		1.00	%		5.13	%		51	%
Year ended May 31, 2014		1.13	%		1.00	%		1.00	%		16.45	%		46	%
Year ended May 31, 2013		1.63	%		1.04	%		1.04	%		30.34	%		46	%
Year ended May 31, 2012		2.04	%		0.97	%		0.90	%		(9.44	)%		69	%
International Value Portfolio
Year ended May 31, 2016		2.50	%		0.91	%		0.91	%		(11.85	)%		14	%
Year ended May 31, 2015		2.45	%		0.91	%		0.91	%		(1.04	)%		18	%
Year ended May 31, 2014		3.09	%		0.91	%		0.91	%		18.22	%		11	%
Year ended May 31, 2013		3.04	%		0.91	%		0.91	%		29.45	%		16	%
Year ended May 31, 2012		3.44	%		0.91	%		0.85	%		(21.07	)%		9	%
Large Company Value Portfolio
Year ended May 31, 2016		1.54	%		0.76	%		0.74	%		(3.92	)%		50	%
Year ended May 31, 2015		1.09	%		0.74	%		0.74	%		7.90	%		72	%
Year ended May 31, 2014		0.99	%		0.73	%		0.73	%		20.26	%		62	%
Year ended May 31, 2013		1.49	%		0.78	%		0.74	%		28.91	%		95	%
Year ended May 31, 2012		1.67	%		0.77	%		0.74	%		(6.06	)%		104	%
Small Company Growth Portfolio
Year ended May 31, 2016		(0.03	)%		0.80	%		0.80	%		(13.86	)%		49	%
Year ended May 31, 2015		(0.32	)%		0.82	%		0.82	%		18.07	%		58	%
Year ended May 31, 2014		(0.37	)%		0.83	%		0.83	%		23.47	%		77	%
Year ended May 31, 2013		(0.02	)%		0.86	%		0.86	%		31.39	%		109	%
Year ended May 31, 2012		(0.12	)%		0.83	%		0.83	%		(10.75	)%		107	%

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

140 Wells Fargo Allocation Funds Financial highlights

	Ratio to average net assets (annualized)									Total return			Portfolio turnover rate
	Net investment income			Gross expenses			Net expenses
Small Company Value Portfolio
Year ended May 31, 2016		0.62	%		0.85	%		0.85	%		(4.96	)%		72	%
Year ended May 31, 2015		0.89	%		0.84	%		0.84	%		7.29	%		54	%
Year ended May 31, 2014		0.89	%		0.85	%		0.85	%		18.09	%		47	%
Year ended May 31, 2013		0.58	%		0.85	%		0.85	%		30.76	%		57	%
Year ended May 31, 2012		0.69	%		0.84	%		0.84	%		(7.17	)%		60	%
Core Bond Portfolio
Year ended May 31, 2016		1.86	%		0.36	%		0.35	%		2.78	%		667	%
Year ended May 31, 2015		1.82	%		0.37	%		0.35	%		3.22	%		586	%
Year ended May 31, 2014		1.94	%		0.37	%		0.35	%		2.90	%		646	%
Year ended May 31, 2013		1.75	%		0.37	%		0.35	%		2.61	%		547	%
Year ended May 31, 2012		2.33	%		0.37	%		0.35	%		8.20	%		803	%
Managed Fixed Income Portfolio
Year ended May 31, 2016		3.12	%		0.48	%		0.39	%		3.95	%		25	%
Year ended May 31, 2015		3.20	%		0.48	%		0.39	%		4.23	%		31	%
Year ended May 31, 2014		3.33	%		0.48	%		0.39	%		3.07	%		35	%
Year ended May 31, 2013		3.42	%		0.47	%		0.39	%		4.81	%		49	%
Year ended May 31, 2012		3.83	%		0.46	%		0.39	%		6.97	%		51	%
Real Return Portfolio
Year ended May 31, 2016		1.45	%		0.56	%		0.44	%		1.29	%		29	%
Year ended May 31, 2015		0.89	%		0.57	%		0.44	%		1.50	%		57	%
Year ended May 31, 2014		1.45	%		0.53	%		0.44	%		(0.26	)%		9	%
Year ended May 31, 2013		1.52	%		0.50	%		0.44	%		(1.86	)%		15	%
Year ended May 31, 2012		3.00	%		0.48	%		0.44	%		12.62	%		23	%
Stable Income Portfolio
Year ended May 31, 2016		1.22	%		0.62	%		0.41	%		0.83	%		20	%
Year ended May 31, 2015		1.20	%		0.64	%		0.41	%		0.89	%		26	%
Year ended May 31, 2014		1.41	%		0.66	%		0.41	%		1.52	%		33	%
Year ended May 31, 2013		1.50	%		0.58	%		0.41	%		2.78	%		20	%
Year ended May 31, 2012		1.76	%		0.59	%		0.41	%		1.71	%		11	%

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

Notes to financial statements Wells Fargo Allocation Funds 141

1. ORGANIZATION

Wells Fargo Master 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 following portfolios: Wells Fargo C&B Large Cap Value Portfolio (“C&B Large Cap Value Portfolio”), Wells Fargo Diversified Large Cap Growth Portfolio (“Diversified Large Cap Growth Portfolio”), Wells Fargo Emerging Growth Portfolio (“Emerging Growth Portfolio”), Wells Fargo Index Portfolio (“Index Portfolio”), Wells Fargo International Growth Portfolio (“International Growth Portfolio”), Wells Fargo International Value Portfolio (“International Value Portfolio”), Wells Fargo Large Company Value Portfolio (“Large Company Value Portfolio”), Wells Fargo Small Company Growth Portfolio (“Small Company Growth Portfolio”), Wells Fargo Small Company Value Portfolio (“Small Company Value Portfolio”), Wells Fargo Core Bond Portfolio (“Core Bond Portfolio”), Wells Fargo Managed Fixed Income Portfolio (“Managed Fixed Income Portfolio”), Wells Fargo Real Return Portfolio (“Real Return Portfolio”), and Wells Fargo Stable Income Portfolio (“Stable Income Portfolio”) (each, a “Portfolio”, collectively, the “Portfolios”). Each Portfolio is a diversified series of the Trust.

The Portfolios, which are master portfolios in a master/feeder structure, offer their shares to multiple feeder funds and other affiliated master portfolios rather than directly to the public.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each Portfolio, 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), although the Portfolios may deviate from this calculation time under unusual or unexpected circumstances.

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 principal 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 Portfolio’s Valuation Procedures.

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 of Wells Fargo Funds Management, LLC (“Funds Management”).

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 Portfolios 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 May 31, 2016, such fair value pricing was not 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. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued normally 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

142 Wells Fargo Allocation Funds Notes to financial statements

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

Foreign currency translation

The accounting records of the Portfolios are maintained in U.S. dollars. The value 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.

Security loans

The Portfolios may lend their 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 Portfolios continue to receive interest or dividends on the securities loaned. The Portfolios receive collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Portfolios on the next business day. In a securities lending transaction, the net asset value of the Portfolios 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 Portfolios fluctuate from time to time. In the event of default or bankruptcy by the borrower, the Portfolios 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 Portfolios have the right under the lending agreement to recover the securities from the borrower on demand.

The Portfolios lend their 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”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). 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 Statements of Operations.

When-issued transactions

Each Portfolio may purchase securities on a forward commitment or when-issued basis. A Portfolio records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Portfolio’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the

Notes to financial statements Wells Fargo Allocation Funds 143

Portfolio begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Loans

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

Futures contracts

The Portfolios are subject to interest rate risk or equity price risk in the normal course of pursuing its investment objectives. A Portfolio 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 Portfolio 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 Statements of Assets and Liabilities as an asset or liability and in the Statements 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 Portfolios since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

TBA sale commitments

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

Inflation-indexed bonds and TIPS

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

Mortgage dollar roll transactions

Each Portfolio may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, a Portfolio sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar

144 Wells Fargo Allocation Funds Notes to financial statements

security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, a Portfolio foregoes principal and interest paid on the securities. A Portfolio is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. A Portfolio accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.

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.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

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

Federal and other taxes

Each Portfolio is treated as a separate entity for federal income tax purposes. The Portfolios are not required to pay federal income taxes on their net investment income and net capital gain as they are treated as partnerships for federal income tax purposes. All interest, dividends, gains and losses of a Portfolio are deemed to have been “passed through” to the interestholders in proportion to their holdings of the Portfolio regardless of whether such interest, dividends and gains have been distributed by the Portfolio.

Each Portfolio’s income tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal revenue authority. Management has analyzed each Portfolio’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.

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 each Portfolio’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). Each Portfolio’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 Portfolio’s own assumptions in determining the fair value of investments)

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

Notes to financial statements Wells Fargo Allocation Funds 145

The following is a summary of the inputs used in valuing each Portfolio’s assets and liabilities as of May 31, 2016:

C&B Large Cap Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	39,284,297	$	0	$	0	$	39,284,297
Consumer staples		19,100,896		0		0		19,100,896
Energy		17,758,921		0		0		17,758,921
Financials		76,240,999		0		0		76,240,999
Health care		44,180,838		0		0		44,180,838
Industrials		53,765,968		0		0		53,765,968
Information technology		14,076,445		0		0		14,076,445
Materials		14,028,552		0		0		14,028,552
Short-term investments
Investment companies		13,862,559		0		0		13,862,559
Investments measured at net asset value*								12,454,900
Total assets	$	292,299,475	$	0	$	0	$	304,754,375

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $12,454,900 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Diversified Large Cap Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	29,503,276	$	0	$	0	$	29,503,276
Consumer staples		9,135,507		0		0		9,135,507
Energy		1,379,452		0		0		1,379,452
Financials		2,559,149		0		0		2,559,149
Health care		16,475,660		0		0		16,475,660
Industrials		7,788,848		0		0		7,788,848
Information technology		43,031,066		0		0		43,031,066
Materials		3,378,649		0		0		3,378,649
Short-term investments
Investment companies		2,118,196		0		0		2,118,196
Investments measured at net asset value*								3,113,406
Total assets	$	115,369,803	$	0	$	0	$	118,483,209

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $3,113,406 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

146 Wells Fargo Allocation Funds Notes to financial statements

Emerging Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	109,137,314	$	0	$	0	$	109,137,314
Energy		25,543,672		0		0		25,543,672
Financials		48,113,098		0		0		48,113,098
Health care		289,674,989		0		0		289,674,989
Industrials		103,520,118		0		0		103,520,118
Information technology		305,813,941		0		0		305,813,941
Short-term investments
Investment companies		14,978,235		0		0		14,978,235
Investments measured at net asset value*								92,823,723
Total assets	$	896,781,367	$	0	$	0	$	989,605,090

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $92,823,723 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Index Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	289,694,308	$	0	$	0	$	289,694,308
Consumer staples		232,754,716		0		0		232,754,716
Energy		164,580,503		0		0		164,580,503
Financials		376,210,320		0		0		376,210,320
Health care		339,368,191		0		0		339,368,191
Industrials		231,365,470		0		0		231,365,470
Information technology		470,278,237		0		0		470,278,237
Materials		65,656,243		0		0		65,656,243
Telecommunication services		61,249,364		0		0		61,249,364
Utilities		77,036,436		0		0		77,036,436
Short-term investments
Investment companies		24,960,298		0		0		24,960,298
U.S. Treasury securities		1,806,435		0		0		1,806,435
Investments measured at net asset value*								12,693,253
Total assets	$	2,334,960,521	$	0	$	0	$	2,347,653,774
Liabilities
Futures contracts	$	36,000	$	0	$	0	$	36,000
Total liabilities	$	36,000	$	0	$	0	$	36,000

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $12,693,253 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo Allocation Funds 147

International Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Belgium	$	2,938,206	$	0	$	0	$	2,938,206
Canada		2,250,330		0		0		2,250,330
China		2,541,486		0		0		2,541,486
Denmark		381,268		0		0		381,268
France		12,797,598		0		0		12,797,598
Germany		20,329,351		0		0		20,329,351
Hong Kong		4,686,104		0		0		4,686,104
Ireland		7,904,971		0		0		7,904,971
Japan		18,993,997		0		0		18,993,997
Mexico		1,246,753		0		0		1,246,753
South Korea		14,650		0		0		14,650
Spain		2,487,845		0		0		2,487,845
Sweden		1,433,455		0		0		1,433,455
Switzerland		12,652,706		0		0		12,652,706
Taiwan		1,785,144		0		0		1,785,144
United Kingdom		33,515,136		0		0		33,515,136
United States		8,935,376		0		0		8,935,376
Participation Notes
Ireland		0		2,418,886		0		2,418,886
Preferred stocks
Germany		1,767,949		0		0		1,767,949
Short-term investments
Investment companies		9,867,059		0		0		9,867,059
Investments measured at net asset value*								2,506,158
Total assets	$	146,529,384	$	2,418,886	$	0	$	151,454,428

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investments, LLC valued at $2,506,158 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

148 Wells Fargo Allocation Funds Notes to financial statements

International Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Australia	$	28,434,311	$	0	$	48,710	$	28,483,021
Austria		5,746,241		0		0		5,746,241
Belgium		4,130,894		0		0		4,130,894
Brazil		4,150,492		0		0		4,150,492
Canada		7,819,869		0		0		7,819,869
China		14,102,164		0		0		14,102,164
Czech Republic		1,044,370		0		0		1,044,370
Denmark		1,226,054		0		0		1,226,054
Finland		1,974,732		0		0		1,974,732
France		45,224,124		0		0		45,224,124
Germany		47,995,403		0		0		47,995,403
Hong Kong		9,988,633		0		0		9,988,633
Hungary		1,196,850		0		0		1,196,850
India		2,865,322		0		0		2,865,322
Ireland		4,655,800		0		0		4,655,800
Israel		5,473,993		0		0		5,473,993
Italy		5,639,354		0		0		5,639,354
Japan		109,897,120		0		0		109,897,120
Liechtenstein		599,721		0		0		599,721
Netherlands		6,898,832		0		0		6,898,832
Norway		6,230,948		0		0		6,230,948
Poland		1,982,872		0		0		1,982,872
Portugal		1,401,875		0		0		1,401,875
Russia		4,194,456		0		0		4,194,456
Singapore		4,050,076		0		0		4,050,076
South Africa		1,860,099		0		0		1,860,099
South Korea		12,328,179		0		0		12,328,179
Spain		8,854,110		0		0		8,854,110
Sweden		10,406,680		0		0		10,406,680
Switzerland		31,110,463		0		0		31,110,463
Taiwan		2,154,895		0		0		2,154,895
Thailand		5,047,806		0		0		5,047,806
United Kingdom		93,883,267		0		0		93,883,267
Preferred stocks
Brazil		978,198		0		0		978,198
Rights
Brazil		0		6,779		0		6,779
Short-term investments
Investment companies		2,530,851		0		0		2,530,851
Investments measured at net asset value*								14,316,539
Total assets	$	496,079,054	$	6,779	$	48,710	$	510,451,082

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $14,316,539 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo Allocation Funds 149

Large Company Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	5,992,355	$	0	$	0	$	5,992,355
Consumer staples		5,245,325		0		0		5,245,325
Energy		8,764,370		0		0		8,764,370
Financials		22,808,234		0		0		22,808,234
Health care		10,075,327		0		0		10,075,327
Industrials		8,482,370		0		0		8,482,370
Information technology		8,745,638		0		0		8,745,638
Materials		2,668,280		0		0		2,668,280
Telecommunication services		1,794,709		0		0		1,794,709
Utilities		3,348,498		0		0		3,348,498
Short-term investments
Investment companies		1,123,879		0		0		1,123,879
Investments measured at net asset value*								1,759,295
Total assets	$	79,048,985	$	0	$	0	$	80,808,280

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $1,759,295 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Small Company Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	167,660,319	$	0	$	0	$	167,660,319
Consumer staples		31,118,946		0		0		31,118,946
Energy		32,226,308		0		0		32,226,308
Financials		112,573,141		0		0		112,573,141
Health care		277,040,158		0		0		277,040,158
Industrials		196,541,616		0		0		196,541,616
Information technology		323,772,888		0		0		323,772,888
Materials		24,505,990		0		0		24,505,990
Short-term investments
Investment companies		40,370,488		0		0		40,370,488
Investments measured at net asset value*								151,177,536
Total assets	$	1,205,809,854	$	0	$	0	$	1,356,987,390

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $151,177,536 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

150 Wells Fargo Allocation Funds Notes to financial statements

Small Company Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	31,528,281	$	0	$	0	$	31,528,281
Consumer staples		5,274,964		0		0		5,274,964
Energy		13,960,510		0		0		13,960,510
Financials		85,916,166		0		0		85,916,166
Health care		8,309,486		0		0		8,309,486
Industrials		16,923,555		0		0		16,923,555
Information technology		32,348,308		0		0		32,348,308
Materials		8,659,206		0		0		8,659,206
Utilities		10,535,582		0		0		10,535,582
Warrants
Health care		0		0		0		0
Short-term investments
Investment companies		4,875,803		0		0		4,875,803
Investments measured at net asset value*								5,965,825
Total assets	$	218,331,861	$	0	$	0	$	224,297,686

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $5,965,825 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Core Bond Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	1,325,492,614	$	0	$	1,325,492,614
Asset-backed securities		0		573,632,539		0		573,632,539
Corporate bonds and notes		0		810,667,590		0		810,667,590
Municipal obligations		0		39,954,459		0		39,954,459
Non-agency mortgage-backed securities		0		134,383,718		0		134,383,718
U.S. Treasury securities		1,324,440,171		0		0		1,324,440,171
Yankee corporate bonds and notes		0		226,546,839		0		226,546,839
Yankee government bonds		0		95,050,298		0		95,050,298
Short-term investments
Investment companies		198,368,365		0		0		198,368,365
Total assets	$	1,522,808,536	$	3,205,728,057	$	0	$	4,728,536,593

Notes to financial statements Wells Fargo Allocation Funds 151

Managed Fixed Income Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	37,905,371	$	0	$	37,905,371
Asset-backed securities		0		5,325,981		0		5,325,981
Corporate bonds and notes		0		41,120,407		0		41,120,407
Municipal obligations		0		11,316,006		0		11,316,006
Non-agency mortgage-backed securities		0		14,454,073		1,233,994		15,688,067
U.S. Treasury securities		5,443,583		0		0		5,443,583
Yankee corporate bonds and notes		0		7,273,040		0		7,273,040
Short-term investments
Investment companies		4,250,997		0		0		4,250,997
Investments measured at net asset value*								143,100
Total assets	$	9,694,580	$	117,394,878	$	1,233,994	$	128,466,552

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $143,100 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Real Return Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer staples	$	2,481,941	$	0	$	0	$	2,481,941
Energy		2,185,607		0		0		2,185,607
Financials		2,880,032		0		0		2,880,032
Materials		3,300,363		0		0		3,300,363
Corporate bonds and notes		0		6,675,798		0		6,675,798
Loans		0		2,274,418		0		2,274,418
U.S. Treasury securities		41,786,791		0		0		41,786,791
Yankee corporate bonds and notes		0		776,697		0		776,697
Short-term investments
Investment companies		618,330		0		0		618,330
U.S. Treasury securities		49,997		0		0		49,997
		53,303,061		9,726,913		0		63,029,974
Futures contracts		31		0		0		31
Total assets	$	53,303,092	$	9,726,913	$	0	$	63,030,005
Liabilities
Futures contracts	$	1,203	$	0	$	0	$	1,203
Total liabilities	$	1,203	$	0	$	0	$	1,203

152 Wells Fargo Allocation Funds Notes to financial statements

Stable Income Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	7,095,543	$	0	$	7,095,543
Asset-backed securities		0		8,141,676		0		8,141,676
Corporate bonds and notes		0		8,057,749		0		8,057,749
Municipal obligations		0		278,758		0		278,758
Non-agency mortgage-backed securities		0		1,992,208		0		1,992,208
U.S. Treasury securities		3,920,920		0		0		3,920,920
Yankee corporate bonds and notes		0		518,765		0		518,765
Short-term investments
Investment companies		317,146		0		0		317,146
Total assets	$	4,238,066	$	26,084,699	$	0	$	30,322,765
Liabilities
Futures contracts	$	117	$	0	$	0	$	117
Total liabilities	$	117	$	0	$	0	$	117

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

The Portfolios recognize transfers between levels within the fair value hierarchy at the end of the reporting period. At May 31, 2016, the Portfolios did not have any transfers into/out of Level 1, Level 2 or Level 3, except International Value Portfolio which had an immaterial transfer between Level 1 and Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo. The adviser is responsible for implementing investment policies and guidelines and for supervising the subadvisers, who are responsible for day-to-day portfolio management of the Portfolios. Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee which is calculated based on the average daily net assets of each Portfolio.

Funds Management has retained the services of certain subadvisers to provide daily portfolio management for the Portfolios. Funds Management has engaged WellsCap, Peregrine Capital Management, Inc. (“Peregrine”) (an affiliate of Funds Management and a direct wholly owned subsidiary of Wells Fargo), Artisan Partners Limited Partnership, Cooke & Bieler, L.P., Golden Capital Management, LLC (an affiliate of Funds Management), LSV Asset Management, and Phocas Financial Corporation as subadvisers.

The fees for subadvisory services are borne by Funds Management. The subadvisers are each entitled to receive from Funds Management an annual subadvisory fee which is calculated based on the average daily net assets of each Portfolio.

Notes to financial statements Wells Fargo Allocation Funds 153

The annual advisory and subadvisory fee rates for each Portfolio are as follows:

	Advisory fee						Effective rate for the year ended May 31, 2016				Subadvisory fee
	starting at			declining to						Subadviser	starting at			declining to
C&B Large Cap Value Portfolio		0.65	%		0.475	%		0.65	%	Cooke & Bieler, L.P.		0.38	%		0.30	%
Diversified Large Cap Growth Portfolio		0.65			0.475			0.65		WellsCap		0.30			0.20
Emerging Growth Portfolio		0.80			0.68			0.79		WellsCap		0.55			0.40
Index Portfolio		0.10			0.05			0.09		Golden Capital Management, LLC		0.05			0.02
International Growth Portfolio		0.85			0.70			0.85		Artisan Partners Limited Partnership		0.80			0.50
International Value Portfolio		0.85			0.70			0.85		LSV Asset Management		0.35			0.30
Large Company Value Portfolio		0.65			0.475			0.65		Phocas Financial Corporation		0.29			0.20
Small Company Growth Portfolio		0.80			0.68			0.79		Peregrine Capital Management, Inc.		0.50			0.45
Small Company Value Portfolio		0.80			0.68			0.80		Peregrine Capital Management, Inc.		0.45			0.40
Core Bond Portfolio		0.40			0.30			0.35		WellsCap		0.20			0.10
Managed Fixed Income Portfolio		0.40			0.30			0.40		WellsCap		0.20			0.10
Real Return Portfolio		0.40			0.30			0.40		WellsCap		0.20			0.10
Stable Income Portfolio		0.30			0.225			0.30		Galliard Capital Management, Inc.		0.28			0.18

Funds Management has voluntarily waived and/or reimbursed advisory fees to the extent necessary to maintain certain net operating expense ratios for the Portfolios.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended May 31, 2016 were as follows:

	Purchases at cost				Sales proceeds
	U.S. government		Non-U.S. government		U.S. government		Non-U.S. government
C&B Large Cap Value Portfolio	$	0	$	85,183,352	$	0	$	114,963,169
Diversified Large Cap Growth Portfolio		0		66,502,732		0		72,054,473
Emerging Growth Portfolio		0		645,259,305		0		731,708,252
Index Portfolio		0		102,056,002		0		425,715,055
International Growth Portfolio		0		93,383,839		0		88,165,073
International Value Portfolio		0		116,965,232		0		66,237,230
Large Company Value Portfolio		0		40,427,589		0		38,186,695
Small Company Growth Portfolio		0		1,109,978,075		0		480,747,665
Small Company Value Portfolio		0		164,018,108		0		145,721,707
Core Bond Portfolio		24,379,101,867		3,479,831,644		23,990,784,629		2,994,795,146
Managed Fixed Income Portfolio		18,980,575		24,268,744		17,908,760		11,830,653
Real Return Portfolio		19,521,137		12,085,988		10,372,097		4,914,247
Stable Income Portfolio		4,718,255		11,562,924		799,123		4,557,635

As of May 31, 2016, Real Return Portfolio had unfunded term loan commitments of $100,313.

154 Wells Fargo Allocation Funds Notes to financial statements

6. INVESTMENTS IN AFFILIATES

An affiliated investment is a company which is under common ownership or control of the Portfolio or which the Portfolio has ownership of at least 5% of the outstanding voting shares. The following is a summary of transactions for the long-term holdings of issuers that were either affiliates of Index Portfolio at the beginning of the period or the end of the period.

	Shares, beginning of period	Shares purchases	Shares sold		Shares, end of period		Value, end of period		Income from affiliated securities		Realized gains on affiliated securities
Wells Fargo & Company	674,695	0		90,743		583,952	$	29,618,045	$	944,748	$	1,980,988

7. DERIVATIVE TRANSACTIONS

During the year ended May 31, 2016, Index Portfolio used uninvested cash to enter into futures contracts to gain market exposure. During the year ended May 31, 2016, Real Return Portfolio and Stable Income Portfolio entered into futures contracts to speculate on interest rates and to help manage the duration of each portfolio.

At May 31, 2016, the Portfolios had long and short futures contracts outstanding as follows:

	Expiration date	Counterparty	Contracts	Type	Contract value at May 31, 2016		Unrealized gains (losses)
Index Portfolio	6-16-2016	Jefferies Bache	60 Long	S&P 500 Index	$	31,423,500	$	1,118,000
Real Return Portfolio	9-21-2016	JPMorgan	2 Short	10-Year U.S. Treasury Notes		259,375		(217	)
Real Return Portfolio	9-21-2016	JPMorgan	3 Short	U.S. Treasury Bonds		489,938		(3,004	)
Real Return Portfolio	9-30-2016	JPMorgan	10 Short	5-Year U.S. Treasury Notes		1,201,172		(2,233	)
Stable Income Portfolio	9-30-2016	JPMorgan	15 Short	5-Year U.S. Treasury Notes		1,801,758		(3,867	)

As of May 31, 2016, Stable Income Portfolio had segregated $12,274 as cash collateral for open futures contracts.

The Portfolios had average notional amounts in futures contracts during the year ended May 31, 2016 as follows:

	Long contracts		Short contracts
Index Portfolio	$	29,775,935	$	0
Real Return Portfolio		80,886		1,223,081
Stable Income Portfolio		0		1,966,559

The receivable and payable for daily variation margin on open futures contracts reflected in the Statements of Assets and Liabilities only represents the current day’s variation margin. The realized gains or losses and change in unrealized gains or losses on derivative instruments are reflected in the Statements of Operations.

For certain types of derivative transactions, the Portfolios have 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 Portfolios 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 Portfolios under ISDA Master Agreements or similar agreements, if any, will be reported separately in the Statements of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments or 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 Statements of Assets and Liabilities are not offset across transactions between each Portfolio and the applicable counterparty. A reconciliation of the gross amounts on the Statements of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Notes to financial statements Wells Fargo Allocation Funds 155

	Derivative type	Counterparty	Gross amounts of assets in the Statements of Assets and Liabilities		Amounts subject to netting agreements			Collateral received		Net amount of assets
Real Return Portfolio	Futures – variation margin	JPMorgan	$	31	$	(31	)	$	0	$	0

	Derivative type	Counterparty	Gross amounts of liabilities in the Statements of Assets and Liabilities		Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Index Portfolio	Futures – variation margin	Jefferies Bache	$	36,000	$	0		$	(36,000	)	$	0
Real Return Portfolio	Futures – variation margin	JPMorgan	$	1,203	$	(31	)	$	(1,172	)	$	0
Stable Income Portfolio	Futures – variation margin	JPMorgan	$	117	$	0		$	(117	)	$	0

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

8. CONCENTRATION RISKS

Concentration risks result from exposure to a limited number of sectors. Portfolios that invest a substantial portion of their assets in a sector may be more affected by changes in that sector than would be a portfolio whose investments are not heavily weighted in any sector. The Portfolio of Investments or Summary Portfolio of Investments includes information on each Portfolio’s holdings, including sector composition, country and/or geographical composition as relevant.

9. INDEMNIFICATION

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

10. REDEMPTION IN-KIND

After the close of business on October 29, 2015, Wells Fargo Core Bond Fund, which invests all of its assets in Core Bond Portfolio, redeemed assets through an in-kind redemption. In the redemption transaction, Wells Fargo Core Bond Fund issued securities which it received from Core Bond Portfolio with a value of $223,656,162 along with cash in the amount of $20,349,815. Core Bond Portfolio recognized gains in the amount of $1,735,222, which are reflected on the Statements of Operations. The redemption in-kind represented 6.35% of Core Bond Portfolio and is reflected on the Statements of Changes in Net Assets.

156 Wells Fargo Allocation Funds Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO MASTER TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments or summary portfolios of investments (for Wells Fargo Index Portfolio and Wells Fargo Core Bond Portfolio), of the Wells Fargo C&B Large Cap Value Portfolio, Wells Fargo Diversified Large Cap Growth Portfolio, Wells Fargo Emerging Growth Portfolio, Wells Fargo Index Portfolio, Wells Fargo International Growth Portfolio, Wells Fargo International Value Portfolio, Wells Fargo Large Company Value Portfolio, Wells Fargo Small Company Growth Portfolio, Wells Fargo Small Company Value Portfolio, Wells Fargo Core Bond Portfolio, Wells Fargo Managed Fixed Income Portfolio, Wells Fargo Real Return Portfolio, and Wells Fargo Stable Income Portfolio (formerly known as Wells Fargo Advantage C&B Large Cap Value Portfolio, Wells Fargo Advantage Diversified Large Cap Growth Portfolio, Wells Fargo Advantage Emerging Growth Portfolio, Wells Fargo Advantage Index Portfolio, Wells Fargo Advantage International Growth Portfolio, Wells Fargo Advantage International Value Portfolio, Wells Fargo Advantage Large Company Value Portfolio, Wells Fargo Advantage Small Company Growth Portfolio, Wells Fargo Advantage Small Company Value Portfolio, Wells Fargo Advantage Core Bond Portfolio, Wells Fargo Advantage Managed Fixed Income Portfolio, Wells Fargo Advantage Real Return Portfolio, and Wells Fargo Advantage Stable Income Portfolio, respectively), thirteen of the portfolios constituting the Wells Fargo Master Trust (collectively the “Portfolios”), as of May 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned Portfolios of Wells Fargo Master Trust as of May 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

Other information (unaudited) Wells Fargo Allocation Funds 157

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, the percentage of ordinary income dividends qualifying for the corporate dividends-received deduction was as follows for the fiscal year ended May 31, 2016:

	Dividends-received deduction
Growth Balanced Fund		67.98	%
Moderate Balanced Fund		28.60

Pursuant to Section 852 of the Internal Revenue Code, the following amounts were designated as long-term capital gain distributions for the fiscal year ended May 31, 2016:

	Long-term capital gain distributions
Moderate Balanced Fund	$	6,284,057

Pursuant to Section 854 of the Internal Revenue Code, the following amounts of income dividends paid during the fiscal year ended May 31, 2016 have been designated as qualified dividend income (QDI):

	QDI
Growth Balanced Fund	$	2,568,800
Moderate Balanced Fund		1,146,131

For the fiscal year ended May 31, 2016, the following amounts have been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Interest-related dividends
Growth Balanced Fund	$	1,258,021
Moderate Balanced Fund		1,697,481

For the fiscal year ended May 31, 2016, the following amounts have been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Short-term Capital gain dividends
Moderate Balanced Fund	$	435,504

For the fiscal year ended May 31, 2016, the percentage of ordinary income distributed which was derived from interest on U.S. government securities was as follows:

	% of U.S. government income
Growth Balanced Fund		4.04	%
Moderate Balanced Fund		4.48

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

158 Wells Fargo Allocation Funds Other information (unaudited)

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings are publicly available on the website (wellsfargofunds.com) on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) is publicly available on the website on a monthly, seven-day or more delayed basis. Each Fund and Portfolio 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, each 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 Allocation Funds 159

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 142 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

160 Wells Fargo Allocation Funds 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

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

Officers

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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016*	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
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 the Growth Balanced Fund, Moderate Balanced Fund, International Growth Portfolio, and International Value Portfolio and Assistant Treasurer of the remaining funds in this shareholder report. In addition, Jeremy DePalma acts as Treasurer of 65 other funds and Assistant Treasurer of 64 other funds in the Fund Complex. Nancy Wiser serves as Treasurer of the remaining funds in this shareholder report as well as 64 other funds.

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.

* Michael Whitaker became Chief Compliance Officer effective May 16, 2016.

Other information (unaudited) Wells Fargo Allocation Funds 161

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

Wells Fargo Growth Balanced Fund, Wells Fargo Moderate Balanced Fund, Wells Fargo C&B Large Cap Value Portfolio, Wells Fargo Diversified Large Cap Growth Portfolio, Wells Fargo Emerging Growth Portfolio, Wells Fargo Index Portfolio, Wells Fargo Real Return Portfolio, Wells Fargo International Growth Portfolio, Wells Fargo International Value Portfolio, Wells Fargo Large Company Value Portfolio, Wells Fargo Managed Fixed Income Portfolio, Wells Fargo Small Company Growth Portfolio, Wells Fargo Small Company Value Portfolio, Wells Fargo Core Bond Portfolio and Wells Fargo Stable Income Portfolio

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (each, a “Board” and collectively, the “Boards”) of each of Wells Fargo Funds Trust (“Funds Trust”) and Wells Fargo Master Trust (“Master Trust”) (collectively, the “Trusts”), must determine annually whether to approve the continuation of the Trusts’ investment management, advisory and sub-advisory agreements, as applicable. In this regard, at an in-person meeting held on May 24-25, 2016 (the “Meeting”), the Funds Trust Board, all the members of which have no direct or indirect interest in the investment management, advisory and sub-advisory agreements and are not “interested persons” of the Trusts, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for each of the Wells Fargo Growth Balanced Fund and Wells Fargo Moderate Balanced Fund (individually, a “Gateway Fund” and collectively, the “Gateway Funds”) an investment management agreement (the “Gateway Fund Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”).

At the Meeting, the Master Trust Board, all the members of which are Independent Trustees, reviewed and approved an investment advisory agreement (the “Master Portfolio Advisory Agreement”) with Funds Management for each of the Wells Fargo C&B Large Cap Value Portfolio, Wells Fargo Diversified Large Cap Growth Portfolio, Wells Fargo Emerging Growth Portfolio, Wells Fargo Index Portfolio, Wells Fargo Real Return Portfolio, Wells Fargo International Growth Portfolio, Wells Fargo International Value Portfolio, Wells Fargo Large Company Value Portfolio, Wells Fargo Managed Fixed Income Portfolio, Wells Fargo Small Company Growth Portfolio, Wells Fargo Small Company Value Portfolio, Wells Fargo Core Bond Portfolio, and Wells Fargo Stable Income Portfolio (individually, a “Master Portfolio” and collectively, the “Master Portfolios”). The Gateway Funds and the Master Portfolios are collectively referred to as the “Funds.”

The Master Trust Board also reviewed and approved the following at the Meeting: (i) an investment sub-advisory agreement with Wells Capital Management Incorporated (“WellsCap”) for each of the Diversified Large Cap Growth Portfolio, Emerging Growth Portfolio, Real Return Portfolio and Core Bond Portfolio; (ii) an investment sub-advisory agreement with Artisan Partners Limited Partnership (“Artisan”) for the International Growth Portfolio; (iii) an investment sub-advisory agreement with Cooke & Bieler L.P. (“Cooke & Bieler”) for the C&B Large Cap Value Portfolio; (iv) an investment sub-advisory agreement with LSV Asset Management (“LSV”) for the International Value Portfolio; (v) an investment sub-advisory agreement with Peregrine Capital Management, Inc. (“Peregrine”) for each of the Small Company Growth Portfolio and Small Company Value Portfolio; (vi) an investment sub-advisory agreement with Golden Capital Management, LLC (“Golden”) for the Index Portfolio; (vii) an investment sub-advisory agreement with Phocas Financial Corporation (“Phocas”) for the Large Company Value Portfolio; and (viii) an investment sub-advisory agreement with Galliard Capital Management, Inc. (“Galliard”) for Managed Fixed Income Portfolio and Stable Income Portfolio (collectively, the “Sub-Advisory Agreements”).

WellsCap, Artisan, Cooke & Bieler, LSV, Peregrine, Golden, Phocas and Galliard are collectively referred to as the “Sub-Advisers”, and the Gateway Fund Management Agreement, the Master Portfolio Advisory Agreement and the Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements.”

The Gateway Funds are gateway blended funds that each invests all of their assets in multiple Master Portfolios.

At the Meeting, the Boards considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Advisers and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2016, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Boards have adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the Boards in the discharge of their duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Boards, Funds Management and the Sub-Advisers were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Boards’ annual contract renewal process earlier in 2016. In considering and approving the Advisory

162 Wells Fargo Allocation Funds Other information (unaudited)

Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Boards considered not only the specific information presented in connection with the Meetings, but also the knowledge gained over time through interaction with Funds Management and the Sub-Advisers about various topics. In this regard, the Boards reviewed reports of Funds Management at each of their quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Boards and the teams mentioned above confer with portfolio managers at various times throughout the year. The Boards did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Funds Trust Board unanimously approved the continuation of the Gateway Fund Management Agreement for a one-year period. Additionally, after its deliberations, the Master Trust Board unanimously approved the continuation of the Master Portfolio Advisory Agreement and the Sub-Advisory Agreements, each for a one-year term. The Boards also determined that the compensation payable to Funds Management and each of the Sub-Advisers was reasonable. The Boards considered the approval of the Advisory Agreements for the Funds as part of their consideration of agreements for funds across the complex, but their approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Boards in support of their approvals.

Nature, extent and quality of services

The Boards received and considered various information regarding the nature, extent and quality of services provided to the Funds by Funds Management and the Sub-Advisers under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services, as well as, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Funds.

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

Fund performance and expenses

The Boards considered the performance results for each of the Funds over various time periods ended December 31, 2015. The Boards considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the respective Funds (each, a “Universe”), and in comparison to each Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Boards received a description of the methodology used by Broadridge to select the mutual funds in each performance Universe.

The Funds Trust Board noted that the performance of each Gateway Fund (Administrator Class) relative to its respective Universe was as follows: (i) the performance of the Growth Balanced Fund was higher than the average performance of its Universe for all periods under review; and (ii) the performance of the Moderate Balanced Fund was higher than the average performance of its Universe for all periods under review.

The Funds Trust Board also noted that the performance of each Gateway Fund relative to its respective benchmark was as follows: (i) the performance of the Growth Balanced Fund was higher than or in range of its benchmark, the Growth Balanced Composite Index, which is a proprietary index used by the Funds Trust Board to help it assess the Growth Balanced Fund’s relative performance, for all periods under review; and (ii) the performance of the Moderate Balanced Fund was higher than or in range of its benchmark, the Moderate Balanced Composite Index, which is a proprietary index used by the Funds Trust Board to help it assess the Moderate Balanced Fund’s relative performance, for all periods under review.

The Master Trust Board took note of the performance of the Master Portfolios in the context of reviewing the performance of the Gateway Funds.

The Funds Trust Board also received and considered information regarding each Gateway Fund’s net operating expense ratios, which include fees and expenses of the corresponding Master Portfolio, and their various components, including actual management fees assessed at the Gateway Fund and Master Portfolio levels, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Funds Trust Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge

Other information (unaudited) Wells Fargo Allocation Funds 163

to be similar to each Gateway Fund (the “Groups”). The Funds Trust Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Funds Trust Board noted that the net operating expense ratios of the Growth Balanced Fund were lower than or in range of the median net operating expense ratios of its expense Groups for all share classes. The Funds Trust Board also noted that the net operating expense ratios of the Moderate Balanced Fund were lower than or equal to the median net operating expense ratios of its expense Groups for all share classes.

With respect to the Master Portfolios, the Master Trust Board reviewed the fee rates that are payable to Funds Management for investment advisory services (as discussed below), which are the only fees charged at the Master Portfolio level, relative to a corresponding expense Group.

The Boards took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management, advisory and sub-advisory fee rates

The Funds Trust Board noted that the Gateway Funds are gateway blended funds that invest all of their assets in multiple master portfolios, and therefore pay an advisory fee to Funds Management. The Funds Trust Board also noted that the fee rate to be paid by the Gateway Funds under the Gateway Fund Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by each Gateway Fund under the Gateway Fund Advisory Agreement and Administration Agreement with Funds Management.

The Funds Trust Board reviewed and considered the fee rates that are payable by each Gateway Fund to Funds Management under the Gateway Fund Management Agreement, as well as the contractual fee rates payable by each Gateway Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”).

The Master Trust Board reviewed and considered the contractual investment advisory fee rates that are payable by the Master Portfolios to Funds Management for investment advisory services under the Master Portfolio Advisory Agreement (the “Advisory Agreement Rates”). The Master Trust Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Advisers for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Funds Trust Board was a comparison of each Gateway Fund’s Management Rate, which, except in the case of the Diversified Equity Fund, include the advisory fees paid at the Master Portfolio level, with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Funds Trust Board noted that the Management Rates of the Growth Balanced Fund were lower than the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes. The Funds Trust Board also noted that the Management Rates of the Moderate Balanced Fund were lower than the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes.

The Master Trust Board reviewed a comparison of the Advisory Agreement Rates of each Master Portfolio with those of other funds in each Master Portfolio’s respective expense Group at a common asset level. The Master Trust Board noted that the Advisory Agreement Rates of each Master Portfolio were lower than or equal to the median rate for the Master Portfolio’s respective expense Group.

The Master Trust Board also received and considered information about the portions of the total management fees that were retained by Funds Management after payment of the fees to the Sub-Advisers for sub-advisory services. With respect to the Master Portfolios sub-advised by Artisan, Cooke & Bieler, LSV and Phocas, the Master Trust Board considered this amount in comparison to the median amount retained by advisers to funds in a sub-advised expense universe that was determined by Broadridge to be similar to the respective Master Portfolio. In assessing the reasonableness of these amounts, the Master Trust Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Advisers, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and WellsCap, Peregrine, Golden and Galliard, the Master Trust Board ascribed limited relevance to the allocation of the advisory fee between them. The Master Trust Board noted that the Small Company Growth Portfolio and Small Company Value Portfolio were each subject to a reduction in each of their investment sub-advisory fee breakpoint effective May 1, 2016 due to a new breakpoint schedule in the Sub-Advisory Agreement with Peregrine that was

164 Wells Fargo Allocation Funds Other information (unaudited)

approved by the Board at the April 2016 Board meeting. With respect to Artisan, Cooke & Bieler, LSV and Phocas, the Master Trust Board considered that the Sub-Advisory Agreement Rates paid to each of these Sub-Advisers had been negotiated by Funds Management on an arm’s-length basis.

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

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

Profitability

The Boards received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Funds and the fund family as a whole. The Boards also received and considered information concerning the profitability of WellsCap, Peregrine, Galliard and Golden, if any, from providing services to the fund family as a whole, noting that their profitability information with respect to providing services to the Funds was subsumed in the Wells Fargo and Funds Management profitability analysis. The Boards did not receive or consider profitability information with respect to Artisan, Cooke & Bieler, LSV and Phocas, as the sub-advisory fees paid to them had been negotiated by Funds Management on an arm’s-length basis.

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

Economies of scale

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

The Boards concluded that the Funds’ fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Funds and their shareholders.

Other benefits to Funds Management and the Sub-Advisers

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

The Boards also reviewed information about soft dollar credits earned and utilized by WellsCap, Artisan, Cooke & Bieler, Peregrine and Golden, fees earned by Funds Management and WellsCap from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on their consideration of the factors and information they deemed relevant, including those described here, the Boards did not find that any ancillary benefits received by Funds Management and its affiliates, including WellsCap, Peregrine, Golden and Galliard, or by Artisan, Cooke & Bieler, LSV or Phocas, were unreasonable.

Other information (unaudited) Wells Fargo Allocation Funds 165

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Funds Trust Board unanimously approved the continuation of the Gateway Fund Management Agreement for a one-year period. Additionally, after its deliberations, the Master Trust Board unanimously approved the continuation of the Master Portfolio Advisory Agreement and the Sub-Advisory Agreements, each for a one-year term. The Boards also determined that the compensation payable to Funds Management and each of the Sub-Advisers was reasonable.

166 Wells Fargo Allocation Funds List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, email, visit the Funds’ 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 Funds. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Funds’ 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

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

243136 07-16 AAFLD/AR110 05-16

Annual Report

May 31, 2016

Equity Gateway Funds

n Wells Fargo C&B Large Cap Value Fund

n Wells Fargo Diversified Equity Fund

n Wells Fargo Emerging Growth Fund

n Wells Fargo Index Fund

n Wells Fargo International Value Fund

n Wells Fargo Small Company Growth Fund

n Wells Fargo Small Company Value 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	32
Portfolios of investments
Wells Fargo C&B Large Cap Value Fund	35
Wells Fargo Diversified Equity Fund	35
Wells Fargo Emerging Growth Fund	36
Wells Fargo Index Fund	36
Wells Fargo International Value Fund	37
Wells Fargo Small Company Growth Fund	37
Wells Fargo Small Company Value Fund	38
Financial statements
Statements of assets and liabilities	40
Statements of operations	42
Statements of changes in net assets	44
Financial highlights	52
Notes to financial statements	66
Report of independent registered public accounting firm	73

Master portfolios
Portfolio of investments
Wells Fargo C&B Large Cap Value Portfolio	74
Wells Fargo Diversified Large Cap Growth Portfolio	77
Wells Fargo Emerging Growth Portfolio	82
Wells Fargo Index Portfolio (Summary portfolio of investments)*	86
Wells Fargo International Growth Portfolio	93
Wells Fargo International Value Portfolio	97
Wells Fargo Large Company Value Portfolio	105
Wells Fargo Small Company Growth Portfolio	110
Wells Fargo Small Company Value Portfolio	116
Financial statements
Statements of assets and liabilities	122
Statements of operations	124
Statements of changes in net assets	126
Financial highlights	135
Notes to financial statements	137
Report of independent registered public accounting firm	148
Other information	149
List of abbreviations	158

* 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/index-ann.pdf or by calling Wells Fargo Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSR, is also available on the SEC’s website at sec.gov.

The views expressed and any forward-looking statements are as of May 31, 2016, 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 Equity Gateway Funds Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

By July 2015, equity markets were declining, led by stocks in China, which endured the largest one-day in eight years.

Global equity markets around the world hit low points before starting to rebound in the middle of February 2016 when business data improved and central bankers reasserted their commitment to initiatives that are intended to spark economic growth.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Equity Gateway Funds for the 12-month period that ended May 31, 2016. During much of the period, global equity, bond, and currency markets were volatile as recessionary pressures and diverging central bank policies concerned investors. As the period closed, investor confidence appeared to improve based on favorable economic data in key markets and central bank monetary policies that were intended to support increased business activity.

Shifting investor sentiment reflected changing economic and business data.

Early in the period, U.S. unemployment data improved and major European economies reported second-quarter 2015 gross domestic product growth. As the summer months arrived, oil prices declined once again after a spring rally, concerns arose about Greece’s ability to repay its sovereign debt, and the U.S. dollar strengthened in anticipation of a federal funds interest-rate increase. By July 2015, equity markets were declining, led by stocks in China, which endured the largest one-day loss in eight years on July 27, 2015.

The S&P 500 Index,¹ a common measure of U.S. stock performance, fell into correction territory—defined as a loss of 10% or more—in August 2015 before recovering a portion of those losses. The Index then traded in a narrow range at its lower level for another month, retested the August lows in late September, and regained most of its year-to-date-2015 losses from October through December. As anticipated, the U.S. Federal Reserve (Fed) increased the federal funds rate in December and suggested it planned to pursue additional increases in 2016. During the first six weeks of 2016, the Index suffered the worst loss to open a year on record before trending higher through the end of the period. By the end of the period, the Index recorded a 1.72% gain.

Overseas, the Morgan Stanley Capital Index (MSCI) All Country World Index (ACWI) ex USA Index (Net)² and the MSCI Emerging Markets (EM) Index (Net)³ recorded negative return patterns. In August 2015, China allowed its currency’s value to decline in an attempt to bolster exports and the U.S. dollar strengthened, which negatively affected investment returns and U.S. corporate profits earned overseas. During the fourth quarter of 2015, Japan’s economy contracted, China’s manufacturing sector retrenched, and growth appeared to slow in Europe.

Global equity markets around the world hit low points before starting to rebound in the middle of February 2016 when business data improved and central bankers reasserted their commitment to initiatives that are intended to spark economic growth. The European Central Bank (ECB) pushed the deposit interest rate further into negative territory. The Bank of Japan followed the ECB’s lead by setting a

¹  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.

²  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

³  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

Letter to shareholders (unaudited) Wells Fargo Equity Gateway Funds 3

negative deposit rate. Negative deposit interest rates are intended to encourage banks to lend assets rather than keep them on deposit. The People’s Bank of China reduced reserve ratios in February, which also was intended to encourage lending. The ECB expanded and extended its bond-buying program, which injects liquidity into the markets and encourages investment. For its part, the Fed acknowledged that risks to global growth existed and indicated it would base further rate increases on data indicating the risks were being successfully addressed.

For the 12-month reporting period, the MSCI ACWI ex USA Index (Net) and MSCI EM Index (Net) recorded returns of -11.39% and -17.63%, respectively.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo 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 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

British Exit from European Union (“Brexit”)

On June 23, 2016, the United Kingdom (UK) voted to leave the European Union (EU). It is expected that the UK’s exit from the EU will take place within two years after giving formal notice to the EU of its intention to withdraw; however, the exact timeframe is unknown. There is considerable uncertainty about how the UK exit from the EU will be conducted, how negotiations of necessary treaties and trade agreements will proceed or how the financial markets will react. In addition, it is not yet known whether Brexit will increase the likelihood of other countries seeking to depart the EU. Immediately following the vote, markets in the UK, Europe and the world were negatively impacted. In light of the uncertainties surrounding the impact of Brexit on the broader global economy, the negative impact could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on Europe for their business activities and revenues. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

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 Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo C&B Large Cap Value Fund¹

Investment objective

The Fund seeks maximum long-term total return (current income and capital appreciation), consistent with minimizing risk to principal.

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

Cooke & Bieler, L.P.

Portfolio managers

Andrew Armstrong, CFA^®

Steve Lyons, CFA^®

Michael M. Meyer, CFA^®

Edward W. O’Connor, CFA^®

R. James O’Neil, CFA^®

Mehul Trivedi, CFA^®

William Weber, CFA^®

Average annual total returns (%) as of May 31, 2016

		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 (CBEAX)	7-26-2004		(5.85	)		8.15		5.10		(0.08	)		9.44		5.73		1.24		1.15
Class B (CBEBX)*	7-26-2004		(5.81	)		8.35		5.18		(0.81	)		8.64		5.18		1.99		1.90
Class C (CBECX)	7-26-2004		(1.82	)		8.64		4.95		(0.82	)		8.64		4.95		1.99		1.90
Administrator Class (CBLLX)	7-26-2004		–			–		–		0.11			9.68		5.94		1.16		1.00
Institutional Class (CBLSX)	7-26-2004		–			–		–		0.33			9.92		6.22		0.91		0.80
Russell 1000® Value Index4	–		–			–		–		(0.06	)		10.70		6.11		–		–

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

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 5

Wells Fargo C&B Large Cap Value Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁵

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

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 September 30, 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 expense cap. Net expenses from the affiliated master portfolio are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Russell 1000^® Value Index. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

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

⁷  Amounts represent the sector distribution of the affiliated master portfolio which are calculated based on the total long-term investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo C&B Large Cap Value Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 1000^® Value Index,⁴ by 2 basis points (bps; 100 bps equals 1.00%) for the 12-month period that ended May 31, 2016.

n Sector allocation detracted from performance including utilities and telecommunication services which were underweight relative to the benchmark. A consumer discretionary overweight contributed to performance.

n Aiding performance was an underweight to the energy sector as well as security selection in six of the eight Global Industry Classification Standard economic sectors in which the Fund invested.

Strong stock selection aided the Fund’s relative performance during the period.

The global economy remained fragile, but the U.S. economy saw evidence of improvement, particularly as the end of the period approached. Against this backdrop, the Fund underperformed its benchmark by 2 bps.

Favorable stock selection drove Fund performance higher in six of eight sectors to which the portfolio had exposure. Stock selection in the health care sector was the largest contributor, with two of the companies ranking among the Fund’s top five contributors. Offsetting this bright spot were the Fund’s industrials and information technology (IT) holdings. Headwinds affecting energy and commodities exposures negatively affected the Fund’s industrials holdings while IT holding QUALCOMM Incorporated dragged on performance as a result of the licensing-fee collection regulatory issue.

Sector weightings hurt relative performance. Unfavorable positioning included a zero weight to utilities and telecommunication services and an overweight to consumer discretionary. These detractors were partially offset by an overweight to industrials and an underweight to energy.

Ten largest holdings (%) as of May 31, 20166
Laboratory Corporation of America Holdings	3.37
State Street Corporation	3.24
JPMorgan Chase & Company	3.20
Omnicom Group Incorporated	2.92
UnitedHealth Group Incorporated	2.91
The Progressive Corporation	2.85
Twenty-First Century Fox Incorporated Class A	2.85
RenaissanceRe Holdings Limited	2.85
Crown Holdings Incorporated	2.67
AerCap Holdings NV	2.62

Contributors during the period included insurance provider The Progressive Corporation; advertising agency Omnicom Group Incorporated; tobacco producer Philip Morris International Incorporated; medical technology company Becton, Dickinson and Company; and health care company Johnson & Johnson. Laggards included financial services holding company State Street Corporation, diversified retailer Kohl’s Corporation, crude oil producer Devon Energy Corporation, and financial data systems provider American Express Company.

Market turbulence persistence provided us with a number of opportunities.

During the period, we added to existing holdings and initiated positions in the following: industrial supply company W.W. Grainger, Incorporated; aviation electronics and communication systems builder Rockwell Collins, Incorporated; airplane lessor AerCap Holdings N.V.; analog integrated circuits manufacturer Linear Technology Corporation; pharmaceutical company Abbott Laboratories; restaurant chain owner Brinker International, Incorporated; appliance manufacturer Whirlpool Corporation; coatings company Axalta Coating Systems Limited; insurance underwriter The Chubb Corporation; and private-label credit card provider Alliance Data Systems Corporation.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 7

Wells Fargo C&B Large Cap Value Fund (continued)

To make room for these positions, we trimmed existing holdings and eliminated biopharmaceutical company Baxalta Incorporated; health care company Baxter International Incorporated; technology solutions provider Fiserv, Incorporated; insurance broker Willis Group Holdings plc; fast food chain operator McDonald’s Corporation; and consumer products company Colgate-Palmolive Company, all of which reached our price targets. We also completed the elimination of communications equipment developer QUALCOMM in early 2016 due to concerns about the effects on royalty revenues of licensing-fee collection regulations in China.

Sector distribution as of May 31, 2016⁷

Continued market volatility highlights the importance of our long-term perspective.

The level of volatility we experienced in 2015 seems to us to be closer to the norm. In our view, lower market volatility levels during the prior six years were the exception and were driven largely by the effects of quantitative easing–related government bond buying. While this new normal may be nerve-wracking, we believe our investment style lends itself well to the new backdrop.

The start to 2016 was the worst ever recorded for the broad equity market, as measured by the Russell 1000^® Value Index. Fear of impending disaster, both foreign and domestic, drove less-stalwart investors away from stocks. By February 11, 2016, worries of global recession pushed

the index into correction territory and oil prices down 29%. And then, sentiments turned. The index rebounded nearly 14% before quarter-end, and oil roared back 46%. Both finished the first quarter of 2016 in positive territory, turning a wild quarter into a placid 1.6% point-to-point index return.

We continue to find companies that we consider to be great at reasonable valuations and firmly believe that the Fund’s holdings will perform well if the economy continues to achieve progress forward. We also see a degree of downside mitigation if it does not. We are excited about the portfolio’s current positioning and its enviable collection of reasonably valued, financially strong, well-positioned companies that we believe can dependably grow earnings and cash flows, and we believe the portfolio will compound value at an above-average rate.

Please see footnotes on page 5.

8 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Diversified Equity Fund¹

Investment objective

The Fund seeks long-term total capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadvisers for the affiliated master portfolios

Artisan Partners Limited Partnership

Cooke & Bieler, L.P.

Golden Capital Management, LLC

LSV Asset Management

Peregrine Capital Management, Inc.

Phocas Financial Corporation

Wells Capital Management Incorporated

Portfolio managers

Thomas C. Biwer, CFA^®

Aldo Ceccarelli, CFA^®

Erik Sens, CFA^®

Average annual total returns (%) as of May 31, 2016

		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 (NVDAX)	5-2-1996		(9.74	)		6.77		4.57		(4.24	)		8.04		5.19		1.39		1.25
Class B (NVDBX)*	5-6-1996		(9.61	)		7.00		4.64		(4.61	)		7.31		4.64		2.14		2.00
Class C (WFDEX)	10-1-1998		(5.96	)		7.24		4.40		(4.96	)		7.24		4.40		2.14		2.00
Administrator Class (NVDEX)	11-11-1994		–			–		–		(3.98	)		8.32		5.46		1.31		1.00
Diversified Equity Composite Index4	–		–			–		–		(1.26	)		9.76		6.57		–		–
MSCI EAFE Index (Net)5	–		–			–		–		(9.68	)		2.12		1.92		–		–
Russell 1000® Growth Index6	–		–			–		–		1.61			12.11		8.78		–		–
Russell 1000® Value Index7	–		–			–		–		(0.06	)		10.70		6.11		–		–
Russell 2000® Index8	–		–			–		–		(5.97	)		7.86		6.27		–		–
S&P 500 Index9	–		–			–		–		1.72			11.67		7.41		–		–

* Effective June 7, 2016, Class B shares are no longer offered by the Fund.

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

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 9

Wells Fargo Diversified Equity Fund (continued)

Growth of $10,000 investment as of May 31, 2016¹⁰

¹  The Fund is a gateway feeder fund that invests all of its assets in two or more affiliated master portfolios of the Wells Fargo Master Trust in varying proportions. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolios in which it invests.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.59% in net expenses from affiliated master portfolios. 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 net expenses from affiliated master portfolios.

³  The manager has contractually committed through September 30, 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 expense cap. Net expenses from the affiliated master portfolios are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  Source: Wells Fargo Funds Management, LLC. The Diversified Equity Composite Index is weighted 15% in the MSCI EAFE Index (Net), 25% in the Russell 1000^® Growth Index, 25% in the Russell 1000^® Value Index, 10% in the Russell 2000^® Index, and 25% in the S&P 500 Index. You cannot invest directly in an index.

⁵  The Morgan Stanley Capital International (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. Source: MSCI. MSCI makes no 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. You cannot invest directly in an index.

⁶  The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁷  The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

⁸  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁹  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.

¹⁰  The chart compares the performance of Class A shares for the most recent ten years with the Diversified Equity Composite Index, the MSCI EAFE Index (Net), the Russell 1000^® Growth Index, the Russell 1000^® Value Index, the Russell 2000^® Index, and the S&P 500 Index. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

¹¹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities of the affiliated master portfolios allocable to the Fund divided by the total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

¹²  Amounts represent the sector distribution of the affiliated master portfolios which are calculated based on the total long-term investments of the affiliated master portfolios. These amounts are subject to change and may have changed since the date specified.

10 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Diversified Equity Fund (continued)

MANAGERS’ DISCUSSION

Fund highlights

n The Fund underperformed its custom benchmark, the Diversified Equity Composite Index, for the 12-month period that ended May 31, 2016, during a volatile period for global equities.

n Largely responsible for the lagging performance was the general underperformance by underlying funds compared with their individual style benchmarks.

Global equity markets experienced higher volatility during the period.

Equity markets experienced sizable volatility during the 12-month period that ended May 31, 2016. Markets swooned in late August 2015 and then recovered, just to falter again at the start of 2016. Despite the volatility, select U.S. market segments achieved nominal gains over the time span. Foreign markets generally provided negative returns, with many European and Asian markets declining 10% or more for the period.

Investors were grappling with many concerns, but market volatility mainly was driven by two significant issues: questions about when the U.S. Federal Reserve would raise rates and whether or not Chinese economic data would continue to weaken. After much uncertainty throughout the year, the Federal Open Market Committee decided in December to raise the federal funds rate and indicated a likely slow path toward normalizing monetary policy. The devaluation of the Chinese currency by that nation’s central bank in August was seen by many as indicative of underlying economic weakness. Both events contributed to the elevated volatility. Additionally, crude oil prices declined and varied greatly during the period, heightening investor uncertainty.

Despite these challenges, select U.S. equity market segments provided small positive returns. One notable phenomenon was the unusually narrow market leadership. Just a few stocks contributed a large portion of the gains in several indexes or markets; these few stocks were some of the largest constituents of the broad indexes. Excluding that narrow set of stocks, many indexes would have provided negative returns. This effect also can be seen in the relative weakness of mid-cap and small-cap stocks; small-cap stocks, as measured by the Russell 2000^® Index,⁸ lost 5.97% during the period.

The Fund is designed to provide diversification at two levels: across asset classes (U.S. large-cap core, growth and value stocks, U.S. small-cap stocks, and international stocks) and across funds and managers, both of which are widely thought to provide investors a smoother ride, especially in volatile markets. In most periods, some underlying funds will outperform their individual style benchmarks while others underperform. Over market cycles, we hope the two will balance out yet deliver outperformance in total. In the 12 months that ended May 31, 2016, the Fund encountered significant underperformance among underlying managers. This was the primary reason the Fund lagged its custom benchmark.

Among the Fund’s U.S. equity holdings, the Wells Fargo Diversified Large Cap Growth Portfolio, which is overseen by two managers, was the biggest detractor, owing to its emphasis on high-growth companies, which were hard-hit during the period. Also detracting significantly was the Wells Fargo Large Company Value Portfolio, which suffered from poor stock selection among its energy and technology holdings. In the small-cap segment of the Fund, the three underlying portfolios also trailed their style benchmarks. In the Fund’s international segment, the Wells Fargo International Growth Portfolio was a major detractor, suffering from weak stock selection in the European consumer staples and industrials sectors. Contributing positively to returns was the Fund’s investment in the Wells Fargo International Value Portfolio, which outperformed due partly to strong stock selection in the U.K. and Japan.

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 11

Wells Fargo Diversified Equity Fund (continued)

Ten largest holdings (%) as of May 31, 201611
Facebook Incorporated Class A	1.61
Apple Incorporated	1.57
Amazon.com Incorporated	1.52
Alphabet Incorporated Class A	1.43
Exxon Mobil Corporation	1.26
JPMorgan Chase & Company	1.03
Medtronic plc	1.03
Alphabet Incorporated Class C	1.01
Visa Incorporated Class A	1.00
Microsoft Corporation	0.97

Sector distribution as of May 31, 2016¹²

No changes were made to the Fund’s composition.

The Fund’s overall asset allocation among the underlying funds remains aligned with the composition of its composite benchmark: 25% in U.S. large-cap value portfolios, 25% in U.S. large-cap blend portfolios, 25% in U.S. large-cap growth portfolios, 10% in U.S. small-cap portfolios, and 15% in international portfolios.

Equities remain attractive.

After eight years of intermittent growth and trillions spent on monetary stimulus, global economies seem to be heading in the right direction. It’s too early to call for the world’s economies to boom—and we don’t see volatility going away—but monetary policy may be starting to have some traction. Further, the stability we have been looking for in China and in commodity prices is starting to be evident. Monetary stimulus, particularly in Europe and Japan, is showing results.

We believe the U.S. stock market still offers unlocked potential. The risk of a recession is low, in our opinion. Instead, we expect earnings to improve at the end of the year for many businesses around the globe. Speculation about negative interest rates is giving way to expectations of a federal funds rate hike over the next several months. We expect volatile markets around the globe, which likely will create investment opportunity.

Please see footnotes on page 9.

12 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Emerging Growth Fund¹

The Fund is closed to most new investors.²

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

Wells Capital Management Incorporated

Portfolio managers

Joseph M. Eberhardy, CFA^®, CPA

Thomas C. Ognar, CFA^®

Bruce C. Olson, CFA^®

Average annual total returns (%) as of May 31, 2016³

		Including sales charge							Excluding sales charge							Expense ratios4 (%)
	Inception date	1 year			5 year		Since inception		1 year			5 year		Since inception		Gross		Net5
Class A (WEMAX)	3-31-2008		(19.83	)		4.58		5.51		(14.94	)		5.82		6.19		1.34		1.34
Class C (WEMCX)	3-31-2008		(16.59	)		5.03		5.40		(15.59	)		5.03		5.40		2.09		2.09
Administrator Class (WFGDX)	1-31-2007		–			–		–		(14.80	)		6.00		6.40		1.26		1.20
Institutional Class (WEMIX)	3-31-2008		–			–		–		(14.62	)		6.31		6.66		1.01		0.90
Russell 2000® Growth Index6	–		–			–		–		(9.13	)		8.15		6.76		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, 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. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market. The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 13.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 13

Wells Fargo Emerging Growth Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁷

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

²  Please see the Fund’s current Statement of Additional Information for further details.

³  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. If these expenses had not been included, returns would be higher. 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 Institutional Class shares prior to their inception reflects the performance of Administrator Class shares, and includes the higher expenses applicable to Administrator Class shares. If these expenses had not been included, returns would be higher.

⁴  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.

⁵  The manager has contractually committed through September 30, 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 1.35% for Class A, 2.10% for Class C, 1.20% for Administrator Class, and 0.90% 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 expense cap. Net expenses from the affiliated master portfolio are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁶  The Russell 2000^® Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁷  The chart compares the performance of Class A shares since inception with the Russell 2000^® Growth Index. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁸  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities of the affiliated master portfolio allocable to the Fund divided by the total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁹  Amounts represent the sector distribution of the affiliated master portfolio which are calculated based on the total long-term investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

* This security was not held in the Fund at the end of the reporting period

14 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Emerging Growth Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 2000^® Growth Index, for the 12-month period that ended May 31, 2016.

n The Fund’s relative underperformance was driven primarily by stock selection within the health care, consumer discretionary, and information technology (IT) sectors.

n Stock selection within the energy and financials sectors contributed positively to the Fund’s performance.

Smaller-cap growth stocks underperformed the broad stock market.

For much of the period, investor sentiment deteriorated in an environment of generally rising spreads for high-yield bonds and declining oil prices. As a result, investors tended to favor larger-market-cap stocks, leading smaller-cap growth stocks to decline significantly. Although small-cap growth stocks recovered slightly by the end of the period, they still significantly underperformed large-caps for the 12-month reporting period.

Select holdings within the health care, consumer discretionary, and IT sectors detracted from performance.

Within health care, stock selection in the biotechnology, providers and services, and equipment and services industries influenced the Fund’s underperformance. PTC Therapeutics, Incorporated,* declined after the FDA informed the company that its application for review of a new drug, Translarna, was deemed insufficiently complete to permit a substantive review. Behavioral-health holding Acadia Healthcare Company, Incorporated, also detracted from performance in the midst of a general decline in the health care sector in late summer 2015 and early 2016. The company, which has been expanding its European operations, came under pressure again more recently over concerns that Britain may withdraw from the European Union.

Holdings in the hotels, restaurants, and leisure and retail industries drove weakness in the consumer discretionary sector. Fiesta Restaurant Group, Incorporated, reported slower-than-expected same-store sales growth, citing inclement weather and a nationwide egg shortage as the primary concerns. Also, The Habit Restaurants, Incorporated, reported generally strong results throughout the year but saw its stock decline due to investors’ concern about increased labor costs. Within retail, Boot Barn Holdings, Incorporated,* which has exposure to the oil and gas industries in Texas, Colorado, Wyoming, and North Dakota, reported lower same-store sales after falling oil prices led to layoffs across those regions.

Sharp declines in several holdings with significant market opportunities in faster-growing areas, such as cloud services, data analytics, and network security, largely influenced weakness in the IT sector. These holdings declined due to multiple factors, including investors’ general preference during much of the period for select mega-cap IT companies with well-established products. Due partly to this investor preference, many small-cap IT companies that were actively reinvesting in their businesses to expand market share were pressured at times during the period. Company-specific factors also influenced underperformance; while Demandware, Incorporated—a cloud-based, e-commerce platform provider—generated solid sales growth, the company suffered due to some delays in completing several large deals. SPS Commerce, Incorporated, also struggled to meet expectations after experiencing higher-than-expected turnover among its sales staff.

Please see footnotes on page 13.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 15

Wells Fargo Emerging Growth Fund (continued)

Ten largest holdings (%) as of May 31, 20168
Proofpoint Incorporated	3.69
MarketAxess Holdings Incorporated	3.62
Acadia Healthcare Company Incorporated	3.43
SPS Commerce Incorporated	2.71
InterXion Holding NV	2.65
Envestnet Incorporated	2.29
Q2 Holdings Incorporated	2.21
On Assignment Incorporated	2.14
Wageworks Incorporated	2.13
Ligand Pharmaceuticals Incorporated	2.01

Sector distribution as of May 31, 2016⁹

Holdings within the energy and financials sectors benefited performance.

Among the Fund’s energy holdings, RSP Permian, Incorporated, delivered the top results, driven by effective execution in a challenging environment. In financials, MarketAxess Holdings Incorporated continued to expand its market presence through its electronic bond-trading platform.

We continue to focus on consistently implementing our process.

Over the course of the 12-month period, we made modest adjustments to the Fund to capitalize on opportunities and position for the future. Using our bottom-up research process, we added select IT companies to the Fund that met our criteria for robust and sustainable growth that, in our view, had been underappreciated by the market. Funding for these purchases came primarily from sales of certain holdings within the consumer discretionary and health care sectors.

Given the abundant political and economic headlines dominating the media in the U.S. and worldwide over much of the reporting period, we expect heightened market volatility to continue into summer 2016 and through November 2016’s general election. With this volatility, we intend to capitalize on potential

opportunities as the valuation gaps of the companies held within the Fund widen and contract. We maintain strong conviction for the rapidly growing companies within the Fund; many holdings have been trading at multiyear-low valuations relative to the broad market. Our investment strategy—seeking robust growth companies with sustainable business models that, in our view, are underappreciated by investors—should position us, going forward, to take advantage of opportunities within the market for the benefit of Fund shareholders.

Please see footnotes on page 13.

16 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Index Fund¹

Investment objective

The Fund seeks to replicate the total return of S&P 500 Index, before fees and expenses.

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

Golden Capital Management, LLC

Portfolio managers

John R. Campbell, CFA^®

Justin Carr, CFA^®

David Neal, CFA^®

Average annual total returns (%) as of May 31, 2016²

		Including sales charge							Excluding sales charge						Expense ratios3 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net4
Class A (WFILX)	11-4-1998		(4.59	)		9.77		6.23		1.24		11.08		6.86		0.63		0.56
Class B (WFMIX)*	11-3-1998		(4.22	)		9.98		6.30		0.48		10.25		6.30		1.38		1.31
Class C (WFINX)	4-30-1999		(0.52	)		10.26		6.06		0.48		10.26		6.06		1.38		1.31
Administrator Class (WFIOX)	2-14-1985		–			–		–		1.49		11.41		7.16		0.40		0.25
S&P 500 Index5	–		–			–		–		1.72		11.67		7.41		–		–

* Class B shares are closed to investment, except in connection with the reinvestment of any distribution 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 5.75%. 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 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. The use of derivatives may reduce returns and/or increase volatility. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 17.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 17

Wells Fargo Index Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁶

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

²  Historical performance shown for all classes of the Fund prior to July 19, 2010, is based on the performance of the Fund’s predecessor, Evergreen Equity Index Fund.

³  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.

⁴  The manager has contractually committed through September 30, 2017 (September 30, 2016 for Administrator Class), 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 0.45% for Class A, 1.20% for Class B, 1.20% for Class C, and 0.25% for Administrator Class. After this time, the caps may be increased or the commitment to maintain the caps 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 expense cap. Net expenses from the affiliated master portfolio are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁵  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.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the S&P 500 Index. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

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

⁸  Amounts represent the sector distribution of the affiliated master portfolio which are calculated based on the total long-term investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

18 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Index Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund trailed its benchmark, the S&P 500 Index,⁵ for the 12-month period that ended May 31, 2016.

n Energy was the bottom-performing sector as nearly 60% of its constituents posted double-digit declines, including six that lost over half their value. The materials, health care, and financials sectors also declined during the period.

n The utilities, telecommunication services, and consumer staples sectors posted the highest returns in the S&P 500 Index.

The Fund achieved its goal to approximate the performance of the S&P 500 Index before the deduction of fees and expenses. The Fund trailed the index after fees and expenses for the 12-month period ended May 31, 2016. The Fund’s management team rebalances the portfolio in order to reflect the ongoing changes in its benchmark’s constituents and weights. One cannot invest directly in the benchmark, and timing of cash flows and other practical issues affect the Fund’s tracking error, which is a measure of how closely a portfolio follows the index to which it is benchmarked. The team uses an investment process designed to control trading and implementation costs and reduce tracking error to the benchmark as much as possible.

The S&P 500 Index delivered positive returns during six months of the reporting period.

The S&P 500 Index delivered positive returns during six months of the reporting period, but there also were several months of decline. The top-performing sectors were utilities, telecommunication services, and consumer staples. Of the four sectors with negative returns, energy was the worst performer. During the period, U.S. gross domestic product growth declined from 3.9% during the second quarter of 2015 to 0.8% in the first quarter of 2016.

During the period, manufacturing activity slowed through December 2015 and generally improved from January to May 2016. Retail sales were weak with the exception of a relatively stronger estimate for April 2016. Unemployment improved from 5.5% in May 2015 to 4.7% in May 2016 (though it ticked up briefly in March and April 2016). Inflation remained low and was actually at or below zero for the last half of 2015. Consumer confidence declined toward the end of the period. In the fourth quarter of 2015, the U.S. Federal Reserve (Fed) raised the federal funds rate target by 0.25% to a range of 0.25% to 0.50%. This was the first rate increase in nearly a decade. After its March 2016 meeting, the Fed downwardly revised its year-end federal funds rate projection to 0.9% from 1.4%. In the second half of 2015, the U.S. dollar continued to appreciate against most major currencies, but that trend changed in the first quarter of 2016 as the U.S. dollar weakened. After several years of healthy profits, U.S. corporations saw a decline in profits.

Ten largest holdings (%) as of May 31, 20167
Apple Incorporated	2.99
Microsoft Corporation	2.27
Exxon Mobil Corporation	2.00
Johnson & Johnson	1.68
General Electric Company	1.52
Amazon.com Incorporated	1.51
Facebook Incorporated Class A	1.47
Berkshire Hathaway Incorporated Class B	1.42
AT&T Incorporated	1.30
JPMorgan Chase & Company	1.30

The utilities, telecommunication services, and consumer staples sectors were the top performers.

The utilities, telecommunication services, and consumer staples sectors were the top performers. These sectors traditionally are viewed as defensive in nature, yet they were the only sectors to post double-digit returns during the period. The strength was broad-based in utilities and consumer staples as approximately 60% of their constituents posted double-digit returns. AT&T Incorporated was the top performer in the telecommunication services sector.

Please see footnotes on page 17.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 19

Wells Fargo Index Fund (continued)

Sector distribution as of May 31, 2016⁸

Energy was the worst-performing sector for the period, though materials, health care, and financials also declined. Weakness within the energy sector was as pervasive as strength in utilities and consumer staples as nearly 60% of its constituents posted double-digit declines. Six of the sector’s 42 stocks—Chesapeake Energy Corporation; CONSOL Energy Incorporated; Ensco plc; Kinder Morgan, Incorporated; Marathon Oil Corporation; and The Williams Companies, Incorporated—lost over half their value. The Fund held positions in Chesapeake Energy, Kinder Morgan, Marathon Oil, and The Williams Companies. The bottom performers within materials, health care, and financials were CF Industries Holdings, Incorporated; Endo International plc; and Genworth Financial, Incorporated, respectively. The Fund held positions in CF Industries and Genworth Financial.

Please see footnotes on page 17.

20 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo International Value Fund¹

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

LSV Asset Management

Portfolio managers

Josef Lakonishok

Puneed Mansharamani, CFA^®

Menno Vermeulen, CFA^®

Average annual total returns (%) as of May 31, 2016²

		Including sales charge									Excluding sales charge									Expense ratios3 (%)
	Inception date	1 year			5 year			10 year			1 year			5 year			10 year			Gross		Net4
Class A (WFFAX)	10-31-2003		(17.35	)		(0.72	)		(0.53	)		(12.31	)		0.46			0.06			1.45		1.35
Class C (WFVCX)	4-8-2005		(13.95	)		(0.29	)		(0.70	)		(12.95	)		(0.29	)		(0.70	)		2.20		2.10
Administrator Class (WFVDX)	4-8-2005		–			–			–			(12.36	)		0.64			0.26			1.37		1.25
Institutional Class (WFVIX)	8-31-2006		–			–			–			(11.98	)		0.88			0.48			1.12		1.00
MSCI EAFE Value Index (Net)5	–		–			–			–			(13.76	)		0.89			0.70			–		–

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. 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 21.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 21

Wells Fargo International Value Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁶

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

²  Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Administrator Class shares, and includes the higher expenses applicable to Administrator Class shares. If these expenses had not been included, returns would be higher.

³  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.

⁴  The manager has contractually committed through September 30, 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 expense cap. Net expenses from the affiliated master portfolio are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁵  The Morgan Stanley Capital International (MSCI) Europe, Australasia, and Far East (EAFE) Value Index (Net) is a free-float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of value securities within developed equity markets, excluding the U.S. and Canada. The MSCI EAFE Value 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. 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. You cannot invest directly in an index.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the MSCI EAFE Value Index (Net). The chart assumes a hypothetical $10,000 investment of in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁷  The MSCI EAFE (Europe, Australasia, Far East) 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.

⁸  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

⁹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities of the affiliated master portfolio allocable to the Fund divided by the total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

¹⁰  Amounts represent the composition of the affiliated master portfolio which are calculated based on the total long-term investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

22 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo International Value Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the Morgan Stanley Capital International (MSCI) Europe, Australasia, and Far East (EAFE) Value Index (Net),⁵ for the 12-month period that ended May 31, 2016.

n The Fund benefited from solid stock selection over the past 12 months despite the headwind of value stocks lagging growth stocks in the period.

n The most significant changes in sector exposures during the period were increases in the Fund’s weights in industrials and health care stocks and decreases in financials and energy stocks. The Fund is underweight the financials, energy, and utilities sectors relative to the MSCI EAFE Value Index (Net) and overweight the industrials, consumer discretionary, and consumer staples sectors.

International developed stock markets declined over the past 12 months, with the MSCI EAFE Index (Net)⁷ returning -9.68%. Value stocks underperformed, and the MSCI EAFE Value Index (Net) declined 13.76%. Defensive sectors such as consumer staples, health care, telecommunication services, and utilities held up best in the period, while materials, consumer discretionary, and financials stocks lagged. Emerging markets trailed the developed markets by a wide margin, with the MSCI Emerging Markets (EM) Index (Net)⁸ declining 17.63%.

Ten largest holdings (%) as of May 31, 20169
Nippon Telegraph & Telephone Corporation	2.02
Sanofi SA	1.62
Royal Dutch Shell plc Class B	1.36
Swiss Reinsurance AG	1.34
BP plc	1.32
BAE Systems plc	1.29
Allianz AG	1.15
Magna International Incorporated	1.05
Gas Natural SDG SA	1.05
Daimler AG	1.02

Favorable stock selection allowed the Fund to outperform despite the fact that value stocks and emerging markets underperformed.

The Fund outperformed its benchmark, the MSCI EAFE Value Index (Net), for the 12-month period that ended May 31, 2016. Value stocks trailed growth stocks over the period, adversely affecting the Fund’s performance given our deep value discipline. However, the Fund benefited from strong stock selection, particularly in the materials, consumer staples, and financials sectors. The Fund’s exposure to emerging markets had a negative effect on results because emerging markets trailed the developed markets by nearly 8 percentage points.

Top-contributing positions included out-of-benchmark exposure to Smurfit Kappa Group plc and Mondi plc as well as a lack of exposure to Glencore plc in the materials sector; exposure to Royal Ahold N.V., KT&G Corporation, and Marine Harvest ASA in the consumer staples sector; and holdings in Challenger Limited and Amlin plc as well as a lack of exposure to HSBC Holdings plc in the financials sector. The Fund also was aided by its exposure to telecommunication services company NTT DOCOMO, Incorporated, and industrials company Thales S.A. Detractors included holdings in GlaxoSmithKline plc and Bayer AG in the health care sector and exposure to Credit Suisse Group AG and Resona Holdings, Incorporated, in the financials sector. The Fund was also negatively affected by its underweight to Siemens AG as well as a lack of exposure to Nestle S.A. and Imperial Brands plc; all three of those stocks posted strong returns.

Please see footnotes on page 21.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 23

Wells Fargo International Value Fund (continued)

Sector distribution as of May 31, 2016¹⁰

Country allocation as of May 31, 2016¹⁰

The most significant changes in sector exposures during the period were increases in the Fund’s weight in industrials and health care stocks and decreases in financials and energy stocks. In the health care sector, we initiated positions in pharmaceutical companies AstraZeneca plc and Bayer AG and added to holdings of Sanofi S.A. and Toho Holdings Company, Limited. Within industrials, we initiated or added to several stocks, including aerospace and defense company BAE Systems plc and airlines EasyJet plc and Qantas Airways Limited. We also added to or initiated positions in several Japanese industrials, including Sojitz Corporation; Central Glass Company, Limited; Fujikura Limited; and Nisshinbo Holdings Incorporated. Although the reduction in the Fund’s allocation to energy and financials was partially a result of the sectors’ poor performance, we also reduced the Fund’s exposure to the energy sector by selling ENI S.p.A. and trimming positions in China Petroleum & Chemical Corporation and JX Holdings, Incorporated. Within financials, Amlin plc left the portfolio after a takeover, while we trimmed the Fund’s holdings of Standard Chartered plc and Hannover Ruck SE.

The Fund is underweight the financials, energy, and utilities sectors relative to the value benchmark and overweight the industrials, consumer discretionary, and consumer staples sectors. At the end of the reporting period, the Fund’s emerging markets exposure stood at 11.5% of the portfolio.

We believe that the Fund remains attractive based on valuation.

The Fund remains attractively positioned from a valuation standpoint. As of the end of the reporting period, the stocks within the Fund were trading at an average price of approximately 11 times forecasted earnings per share and 6 times cash flow per share compared with 13 times forward earnings per share and 9 times cash flow per share for the MSCI EAFE Value Index (Net). We believe that the emerging markets portion of the portfolio was trading at particularly attractive valuations of less than 10 times forecasted earnings per share and 6 times cash flow per share. We continue to concentrate on finding attractively valued companies that are generating strong cash flows and earnings and that we believe could produce strong performance going forward.

Please see footnotes on page 21.

24 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Small Company Growth Fund¹

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

Peregrine Capital Management, Inc.

Portfolio managers

William A. Grierson, CFA^®

Daniel J. Hagen, CFA^®

James P. Ross, CFA^®

Paul E. von Kuster, CFA^®

Average annual total returns (%) as of May 31, 2016²

		Including sales charge							Excluding sales charge							Expense ratios3 (%)
	Inception date	1 year			5 year		10 year		1 year			5 year		10 year		Gross		Net4
Class A (WFSAX)	1-30-2004		(19.14	)		6.20		6.05		(14.20	)		7.47		6.68		1.36		1.35
Class B (WFSBX)*	1-30-2004		(19.83	)		6.36		6.11		(14.83	)		6.67		6.11		2.11		2.10
Class C (WSMCX)	1-30-2004		(15.84	)		6.67		5.89		(14.84	)		6.67		5.89		2.11		2.10
Class R6 (WSCRX)	10-31-2014		–			–		–		(13.83	)		7.97		7.14		0.93		0.90
Administrator Class (NVSCX)	11-11-1994		–			–		–		(14.04	)		7.70		6.93		1.28		1.20
Institutional Class (WSCGX)	3-31-2008		–			–		–		(13.85	)		7.96		7.14		1.03		0.95
Russell 2000® Growth Index5	–		–			–		–		(9.13	)		8.15		7.20		–		–

* 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 5.75%. 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. Class R6, 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. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 25.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 25

Wells Fargo Small Company Growth Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁶

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

²  Historical performance shown for Class R6 shares prior to their inception reflects the performance of Institutional Class shares, and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, returns would be higher. Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Administrator Class shares, and includes the higher expenses applicable to Administrator Class shares. If these expenses had not been included, returns would be higher.

³  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.

⁴  The manager has contractually committed through September 30, 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 expense cap. Net expenses from the affiliated master portfolio are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁵  The Russell 2000^® Growth Index measures the performance shown of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Russell 2000^® Growth Index. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

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

⁸  Amounts represent the sector distribution of the affiliated master portfolio which are calculated based on the total long-term investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

* This security was not held in the Fund at the end of the reporting period

26 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Small Company Growth Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Russell 2000^® Growth Index⁵ for the 12-month period that ended May 31, 2016.

n Select holdings within the consumer discretionary, financials, and materials sectors detracted from Fund performance.

n The Fund’s holdings within the energy sector contributed to relative performance.

A number of broad concerns, including sluggish economic growth in both the U.S. and China, led to bouts of heightened investor risk aversion from August 2015 through the end of the reporting period. Worries about slowing growth combined with overproduction led to sharply falling oil prices for much of the period, from more than $60 per barrel in May 2015 to a low of $26 per barrel in February 2016. As the period progressed, market results worldwide shifted to higher degrees of correlation with the movement of oil prices, triggering continued market declines, especially in small-cap stocks. Other unique risk factors during the period included uncertainties over the timing and magnitude of expected interest-rate increases by the U.S. Federal Reserve (Fed) and the outcome of the 2016 U.S. presidential election.

The combined impact of these concerns contributed to an environment in which investors’ behavior often became driven more by risk aversion than by companies’ underlying fundamentals. As a result, the reporting period was marked by relatively brief, but painful, instances of significant dislocation between the strength of companies’ fundamentals in comparison with their respective stock prices.

Ten largest holdings (%) as of May 31, 20167
SS&C Technologies Holdings Incorporated	1.79
ICON plc ADR	1.50
Copart Incorporated	1.37
IMAX Corporation	1.33
Evercore Partners Incorporated Class A	1.30
Hub Group Incorporated Class A	1.29
Teradyne Incorporated	1.28
Qlik Technologies Incorporated	1.26
Cadence Design Systems Incorporated	1.26
Marketo Incorporated	1.25

Stock selection within the consumer discretionary, financials, and materials sectors detracted from Fund performance.

Within the consumer discretionary sector, fears over a weak holiday season (which ultimately did not manifest) coupled with a strong downward-trending stock market in the third quarter of 2015 and in early 2016 drove a high degree of stock-price dislocation relative to companies’ underlying fundamentals. As small-cap stocks began to recover from significant declines in early 2016, these issues were partly remedied. However, some dislocation remained; for example, Party City Holdco Incorporated’s stock price declined materially over the reporting period to a valuation well below that of the broad market

despite the company’s report of nearly double-digit growth in earnings per share in 2015. The period’s weaker-than-usual capital-markets environment contributed to disappointing fundamentals for certain Fund holdings within the financials sector, including LPL Financial Holdings Incorporated,* a full-service online brokerage. The Fed’s indications of a more moderate approach to interest-rate increases also negatively affected a number of financials holdings. Within the materials sector, stock selection detracted from returns. Flotek Industries, Incorporated,* a provider of oil-field chemicals and services, declined following disclosure of technological and data issues affecting some of the company’s services.

Stock selection within the energy sector contributed to relative returns.

Select Fund holdings within the energy sector delivered strong results, driving outperformance relative to the benchmark’s energy sector for the reporting period. We tend to emphasize energy-related companies with leading asset positions, fundamental strength to weather a variety of oil-price environments, and favorable cost structures. The Fund’s key contributors in this sector included Diamondback Energy, Incorporated, and QEP Resources, Incorporated.

Please see footnotes on page 25.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 27

Wells Fargo Small Company Growth Fund (continued)

Sector distribution as of May 31, 2016⁸

We remain focused on consistent implementation of our disciplined process.

Our team has employed the same bottom-up style for more than 30 years. We believe the combination of our disciplined investment process and experienced team has been the key to the success of this investment style over time. Looking ahead, we remain focused on identifying attractive growth companies with potentially underappreciated opportunities relative to their valuations. We are of the opinion these stocks ultimately may be rewarded by the marketplace, which could lead to outperformance and may add value to the Fund.

Please see footnotes on page 25.

28 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Small Company Value Fund¹

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

Peregrine Capital Management, Inc.

Portfolio managers

Jason R. Ballsrud, CFA^®

Tasso H. Coin, Jr., CFA^®

Douglas G. Pugh, CFA^®

Average annual total returns (%) as of May 31, 2016²

		Including sales charge							Excluding sales charge							Expense ratios3 (%)
	Inception date	1 year			5 year		10 year		1 year			5 year		10 year		Gross		Net4
Class A (SCVAX)	1-31-2002		(10.91	)		6.04		4.12		(5.48	)		7.30		4.74		1.45		1.35
Class C (SCVFX)	8-30-2002		(7.20	)		6.49		3.97		(6.20	)		6.49		3.97		2.20		2.10
Administrator Class (SCVIX)	1-31-2002		–			–		–		(5.36	)		7.52		5.00		1.37		1.20
Institutional Class (SCVNX)	7-30-2010		–			–		–		(5.13	)		7.73		5.13		1.12		1.00
Russell 2000® Value Index5	–		–			–		–		(2.75	)		7.55		5.25		–		–

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 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. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 29.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 29

Wells Fargo Small Company Value Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁶

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

²  Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Administrator Class shares and includes the higher expenses applicable to Administrator Class shares. If these expenses had not been included, returns would be higher.

³  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.

⁴  The manager has contractually committed through September 30, 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 expense cap. Net expenses from the affiliated master portfolio are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

⁵  The Russell 2000^® Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. You cannot invest directly in an index.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Russell 2000^® Value Index. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁷  The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index.

⁸  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities of the affiliated master portfolio allocable to the Fund divided by the total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁹  Amounts represent the sector distribution of the affiliated master portfolio which are calculated based on the total long-term investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

30 Wells Fargo Equity Gateway Funds Performance highlights (unaudited)

Wells Fargo Small Company Value Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Russell 2000^® Value Index,⁵ for the 12-month period that ended May 31, 2016.

n The Fund’s relative performance trailed the benchmark in the economically sensitive consumer discretionary and information technology (IT) sectors.

n Outperformance driven by strong stock selection relative to the index was most significant in the energy and health care sectors.

Markets were volatile for the one-year period that ended May 31, 2016. Strong market performance in early 2015 gave way to a bear market that emerged during mid-2015 as investors grew concerned about slowing economic growth and recessionary pressures. Stock prices generally declined through mid-February 2016 before a rebound occurred during the last several weeks of the period. In this unsettled environment, investors tended to sell small-cap stocks and buy large-cap growth stocks. Large-cap growth stocks delivered a positive return during the period as measured by the Russell 1000^® Growth Index,⁷ a common measure of large-cap growth stock performance. As market losses and stock sales increased, the Fund experienced relatively higher losses because less-liquid smaller-cap and economically sensitive stocks came under greater pressure. Once stock prices stabilized and began to recover in late-February 2016, the Fund once again started to gather outperformance over the benchmark. In our view, the shake-up in the markets was unwarranted and the rapid recovery that ensued in the late first quarter of 2016 was understandable.

Despite a volatile market, areas of strength benefited the Fund.

Fund performance was pressured most substantially in the consumer discretionary and IT sectors. Retail stocks within the consumer discretionary sector saw dramatic price declines as earnings were pressured when consumer confidence waned during the second half of 2015. We elected to sell certain of these holdings in favor of higher-quality retailers that have exhibited strong recovery patterns in the past and therefore offered a better risk/return opportunity for the portfolio. The Fund’s IT positions in aggregate lagged as investors tended to sell value stocks within the sector in favor of larger or more growth-oriented IT stocks. In particular, less than a handful of large-cap growth stocks—given the moniker the FANG stocks, for Facebook, Amazon, Netflix, and Google—dramatically outperformed the market and appeared immune at times to macroeconomic fears.

The Fund’s energy sector positions, though negative in absolute terms for the period, outperformed the energy stocks in the benchmark, which were hard hit by the collapse in energy prices. In our analysis, our energy positions were of higher quality with many holding hedges that allowed them to sidestep much of the maelstrom brought on by the precipitous fall in oil prices. The portfolio’s health care positions were also a bright spot, delivering a positive return for the year and outperforming the health care stocks in the benchmark.

Ten largest holdings (%) as of May 31, 20168
Great Western Bancorp Incorporated	1.58
Western Alliance Bancorp	1.56
Primerica Incorporated	1.50
Avista Corporation	1.48
Talmer Bancorp Incorporated Class A	1.43
Equity Commonwealth	1.41
Scholastic Corporation	1.40
PrivateBancorp Incorporated	1.38
Lions Gate Entertainment Corporation	1.32
Generac Holdings Incorporated	1.29

Sector distribution as of May 31, 2016⁹

Please see footnotes on page 29.

Performance highlights (unaudited) Wells Fargo Equity Gateway Funds 31

Wells Fargo Small Company Value Fund (continued)

Portfolio turnover was driven by sales of stocks we viewed as fully valued as well as our desire to add new investments to the portfolio.

Changes to the Fund’s holdings over the period were consistent with our strict value-oriented investment process. Following our sell discipline, we sold stocks that reached our estimates of fair value relative to their peer groups. During the one-year period, we added 63 new positions from a mix of different sectors. The number of Fund holdings continued to range between 90 and 110 at any given time during the period, with all holdings possessing strong value characteristics based on our analysis.

While small-cap value stocks have lagged the overall market for several quarters, we remain confident in our deep-value investment philosophy and believe the Fund is well positioned to potentially benefit from a long overdue market rotation. The key to this rotation would be a solidified and accelerating economic recovery. Key catalysts such as a recovery in housing and new household formation among members of the Millennial generation may be the opening acts to higher sustainable economic output, which could support small-cap value stock performance.

In our view, because the market has been slow to recognize the strength of the improving underlying operating performance of small-cap companies, their stocks are priced at favorable levels that offer an optimal entry point for investors. In this environment, we are finding opportunities to buy attractive stocks at valuations that have not been seen for several years now. Our disciplined bottom-up process is focused on identifying the best values in each sector and helping us capture consistent outperformance versus the benchmark. Although this year is off to a volatile start, we believe the portfolio is positioned to outperform in the coming year as investors seeking to diversify returns recognize the fundamental opportunity and attractive valuations of the portfolio’s holdings.

Please see footnotes on page 29.

32 Wells Fargo Equity Gateway Funds 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 December 1, 2015 to May 31, 2016.

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.

Wells Fargo C&B Large Cap Value Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,022.63	$	5.82		1.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.25	$	5.81		1.15	%
Class B
Actual	$	1,000.00	$	1,018.87	$	9.59		1.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.50	$	9.57		1.90	%
Class C
Actual	$	1,000.00	$	1,019.19	$	9.59		1.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.50	$	9.57		1.90	%
Administrator Class
Actual	$	1,000.00	$	1,023.81	$	5.06		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.00	$	5.05		1.00	%
Institutional Class
Actual	$	1,000.00	$	1,024.41	$	4.05		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.00	$	4.04		0.80	%

Please see footnote on page 34.

Fund expenses (unaudited) Wells Fargo Equity Gateway Funds 33

Wells Fargo Diversified Equity Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	984.08	$	6.20		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.75	$	6.31		1.25	%
Class B
Actual	$	1,000.00	$	984.00	$	9.77		1.97	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.15	$	9.92		1.97	%
Class C
Actual	$	1,000.00	$	980.19	$	9.90		2.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.00	$	10.08		2.00	%
Administrator Class
Actual	$	1,000.00	$	985.41	$	4.96		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.00	$	5.05		1.00	%
Wells Fargo Emerging Growth Fund
Class A
Actual	$	1,000.00	$	924.16	$	6.49		1.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.26	$	6.80		1.35	%
Class C
Actual	$	1,000.00	$	919.85	$	10.07		2.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.51	$	10.57		2.10	%
Administrator Class
Actual	$	1,000.00	$	924.32	$	5.77		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.06		1.20	%
Institutional Class
Actual	$	1,000.00	$	925.61	$	4.33		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.50	$	4.55		0.90	%
Wells Fargo Index Fund
Class A
Actual	$	1,000.00	$	1,017.20	$	2.27		0.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.75	$	2.28		0.45	%
Class B
Actual	$	1,000.00	$	1,013.39	$	6.04		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.06		1.20	%
Class C
Actual	$	1,000.00	$	1,013.34	$	6.04		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.06		1.20	%
Administrator Class
Actual	$	1,000.00	$	1,018.18	$	1.26		0.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.75	$	1.26		0.25	%

Please see footnote on page 34.

34 Wells Fargo Equity Gateway Funds Fund expenses (unaudited)

Wells Fargo International Value Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	969.61	$	6.65		1.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.25	$	6.81		1.35	%
Class C
Actual	$	1,000.00	$	966.15	$	10.32		2.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.50	$	10.58		2.10	%
Administrator Class
Actual	$	1,000.00	$	970.68	$	6.16		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.75	$	6.31		1.25	%
Institutional Class
Actual	$	1,000.00	$	971.08	$	4.93		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.00	$	5.05		1.00	%
Wells Fargo Small Company Growth Fund
Class A
Actual	$	1,000.00	$	924.19	$	6.46		1.34	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.29	$	6.77		1.34	%
Class B
Actual	$	1,000.00	$	920.99	$	9.97		2.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.62	$	10.46		2.08	%
Class C
Actual	$	1,000.00	$	920.91	$	10.05		2.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.53	$	10.54		2.09	%
Class R6
Actual	$	1,000.00	$	926.35	$	4.33		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.50	$	4.55		0.90	%
Administrator Class
Actual	$	1,000.00	$	925.09	$	5.78		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.06		1.20	%
Institutional Class
Actual	$	1,000.00	$	926.10	$	4.57		0.95	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.25	$	4.80		0.95	%
Wells Fargo Small Company Value Fund
Class A
Actual	$	1,000.00	$	984.78	$	6.70		1.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.25	$	6.81		1.35	%
Class C
Actual	$	1,000.00	$	981.07	$	10.40		2.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.50	$	10.58		2.10	%
Administrator Class
Actual	$	1,000.00	$	985.55	$	5.96		1.20	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.00	$	6.06		1.20	%
Institutional Class
Actual	$	1,000.00	$	986.83	$	4.97		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.00	$	5.05		1.00	%

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).

Portfolios of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 35

C&B LARGE CAP VALUE FUND

Security name	Value
Investment Companies: 100.00%
Affiliated Master Portfolios: 100.00%
Wells Fargo C&B Large Cap Value Portfolio	$	252,625,889
Total Investment Companies (Cost $194,366,573)		252,625,889

Total investments in securities (Cost $194,366,573) *	100.00	%		252,625,889
Other assets and liabilities, net	(0.00	)		(9,716	)
Total net assets	100.00	%	$	252,616,173

*	Cost for federal income tax purposes is $201,424,793 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	51,201,096
	Gross unrealized losses		0
	Net unrealized gains	$	51,201,096

DIVERSIFIED EQUITY FUND

Security name	Value
Investment Companies: 100.06%
Affiliated Master Portfolios: 100.06%
Wells Fargo C&B Large Cap Value Portfolio	$	17,549,648
Wells Fargo Diversified Large Cap Growth Portfolio		53,011,559
Wells Fargo Emerging Growth Portfolio		5,349,574
Wells Fargo Index Portfolio		52,872,245
Wells Fargo International Growth Portfolio		15,634,453
Wells Fargo International Value Portfolio		15,806,203
Wells Fargo Large Company Value Portfolio		35,299,653
Wells Fargo Small Company Growth Portfolio		5,329,774
Wells Fargo Small Company Value Portfolio		10,680,165
Total Investment Companies (Cost $165,981,249)		211,533,274

Total investments in securities (Cost $165,981,249) *	100.06	%		211,533,274
Other assets and liabilities, net	(0.06	)		(125,719	)
Total net assets	100.00	%	$	211,407,555

*	Cost for federal income tax purposes is $173,861,221 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	37,672,053
	Gross unrealized losses		0
	Net unrealized gains	$	37,672,053

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

36 Wells Fargo Equity Gateway Funds Portfolios of investments—May 31, 2016

EMERGING GROWTH FUND

Security name	Value
Investment Companies: 100.06%
Affiliated Master Portfolios: 100.06%
Wells Fargo Emerging Growth Portfolio	$	815,110,887
Total Investment Companies (Cost $653,109,010)		815,110,887

Total investments in securities (Cost $653,109,010) *	100.06	%		815,110,887
Other assets and liabilities, net	(0.06	)		(507,260	)
Total net assets	100.00	%	$	814,603,627

*	Cost for federal income tax purposes is $657,243,782 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	157,867,105
	Gross unrealized losses		0
	Net unrealized gains	$	157,867,105

INDEX FUND

Security name	Value
Investment Companies: 100.09%
Affiliated Master Portfolios: 100.09%
Wells Fargo Index Portfolio	$	2,224,794,535
Total Investment Companies (Cost $871,427,701)		2,224,794,535

Total investments in securities (Cost $871,427,701) *	100.09	%		2,224,794,535
Other assets and liabilities, net	(0.09	)		(2,093,436	)
Total net assets	100.00	%	$	2,222,701,099

*	Cost for federal income tax purposes is $917,294,054 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	1,307,500,481
	Gross unrealized losses		0
	Net unrealized gains	$	1,307,500,481

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

Portfolios of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 37

INTERNATIONAL VALUE FUND

Security name	Value
Investment Companies: 99.97%
Affiliated Master Portfolios: 99.97%
Wells Fargo International Value Portfolio	$	473,721,935
Total Investment Companies (Cost $526,903,907)		473,721,935

Total investments in securities (Cost $526,903,907) *	99.97	%		473,721,935
Other assets and liabilities, net	0.03			154,630
Total net assets	100.00	%	$	473,876,565

*	Cost for federal income tax purposes is $527,840,357 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	0
	Gross unrealized losses		(54,118,422	)
	Net unrealized losses	$	(54,118,422	)

SMALL COMPANY GROWTH FUND

Security name	Value
Investment Companies: 99.15%
Affiliated Master Portfolios: 99.15%
Wells Fargo Small Company Growth Portfolio	$	1,183,630,838
Total Investment Companies (Cost $1,149,153,992)		1,183,630,838

Total investments in securities (Cost $1,149,153,992) *	99.15	%		1,183,630,838
Other assets and liabilities, net	0.85			10,200,001
Total net assets	100.00	%	$	1,193,830,839

*	Cost for federal income tax purposes is $1,170,032,707 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	13,598,131
	Gross unrealized losses		0
	Net unrealized gains	$	13,598,131

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

38 Wells Fargo Equity Gateway Funds Portfolios of investments—May 31, 2016

SMALL COMPANY VALUE FUND

Security name	Value
Investment Companies: 100.26%
Affiliated Master Portfolios: 100.26%
Wells Fargo Small Company Value Portfolio	$	121,259,745
Total Investment Companies (Cost $111,820,445)		121,259,745

Total investments in securities (Cost $111,820,445) *	100.26	%		121,259,745
Other assets and liabilities, net	(0.26	)		(313,869	)
Total net assets	100.00	%	$	120,945,876

*	Cost for federal income tax purposes is $116,877,360 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	4,382,385
	Gross unrealized losses		0
	Net unrealized gains	$	4,382,385

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

This page is intentionally left blank.

40 Wells Fargo Equity Gateway Funds Statements of assets and liabilities—May 31, 2016

	C&B Large Cap Value Fund			Diversified Equity Fund
Assets
Investments in affiliated Master Portfolio(s), at value (see cost below)	$	252,625,889		$	211,533,274
Cash		469			0
Receivable for Fund shares sold		103,507			41,442
Receivable from manager		15,340			0
Prepaid expenses and other assets		44,293			16,892
Total assets		252,789,498			211,591,608
Liabilities
Payable for Fund shares redeemed		94,613			84,909
Management fee payable		0			2,916
Distribution fees payable		4,639			1,845
Administration fees payable		33,942			27,662
Shareholder report expenses payable		8,362			21,776
Shareholder servicing fees payable		24,998			44,125
Accrued expenses and other liabilities		6,771			820
Total liabilities		173,325			184,053
Total net assets	$	252,616,173		$	211,407,555
NET ASSETS CONSIST OF
Paid-in capital	$	199,696,226		$	167,366,146
Undistributed (accumulated) net investment income (loss)		910,811			473,513
Accumulated net realized gains (losses) on investments		(6,250,180	)		(1,984,129	)
Net unrealized gains (losses) on investments		58,259,316			45,552,025
Total net assets	$	252,616,173		$	211,407,555
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	88,387,101		$	67,596,969
Shares outstanding – Class A1		7,045,320			2,475,796
Net asset value per share – Class A		$12.55			$27.30
Maximum offering price per share – Class A2		$13.32			$28.97
Net assets – Class B	$	104,938		$	711
Shares outstanding – Class B1		8,260			29
Net asset value per share – Class B		$12.70			$24.49
Net assets – Class C	$	7,282,057		$	2,846,425
Shares outstanding – Class C1		583,270			113,302
Net asset value per share – Class C		$12.48			$25.12
Net assets – Class R6		N/A			N/A
Shares outstanding – Class R61		N/A			N/A
Net asset value per share – Class R6		N/A			N/A
Net assets – Administrator Class	$	23,209,917		$	140,963,450
Shares outstanding – Administrator Class1		1,850,268			5,148,658
Net asset value per share – Administrator Class		$12.54			$27.38
Net assets – Institutional Class	$	133,632,160			N/A
Shares outstanding – Institutional Class1		10,626,034			N/A
Net asset value per share – Institutional Class		$12.58			N/A
Investments in affiliated Master Portfolio(s), at cost	$	194,366,573		$	165,981,249

¹  Each 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.

Statements of assets and liabilities—May 31, 2016 Wells Fargo Equity Gateway Funds 41

Emerging Growth Fund			Index Fund		International Value Fund			Small Company Growth Fund			Small Company Value Fund
$	815,110,887		$	2,224,794,535	$	473,721,935		$	1,183,630,838		$	121,259,745
	0			36		0			0			0
	431,832			1,984,182		1,110,409			13,837,370			408,320
	28,803			189,576		30,395			3,720			12,628
	44,199			51,895		38,807			152,854			29,481
	815,615,721			2,227,020,224		474,901,546			1,197,624,782			121,710,174
	789,648			3,604,351		947,882			3,573,885			723,513
	0			0		0			0			0
	2,353			50,811		524			16,686			1,251
	95,414			289,690		51,912			121,174			14,662
	68,146			46,921		17,369			10,655			3,324
	44,572			276,184		3,746			58,400			18,553
	11,961			51,168		3,548			13,143			2,995
	1,012,094			4,319,125		1,024,981			3,793,943			764,298
$	814,603,627		$	2,222,701,099	$	473,876,565		$	1,193,830,839		$	120,945,876
$	669,977,965		$	812,899,809	$	557,477,053		$	1,268,354,177		$	192,148,076
	(1,370,106	)		16,373,457		7,379,031			(511,635	)		291,961
	(16,006,109	)		40,060,999		(37,797,547	)		(108,488,549	)		(80,933,461	)
	162,001,877			1,353,366,834		(53,181,972	)		34,476,846			9,439,300
$	814,603,627		$	2,222,701,099	$	473,876,565		$	1,193,830,839		$	120,945,876
$	127,153,799		$	639,496,219	$	4,981,190		$	128,674,626		$	23,151,460
	10,135,732			10,175,460		388,325			3,414,142			1,145,225
	$12.55			$62.85		$12.83			$37.69			$20.22
	$13.32			$66.68		$13.61			$39.99			$21.45
	N/A		$	1,071,212		N/A		$	17,062			N/A
	N/A			16,658		N/A			508			N/A
	N/A			$64.31		N/A			$33.59			N/A
$	3,814,808		$	79,857,866	$	782,958		$	26,945,662		$	2,003,710
	329,427			1,265,221		62,341			792,080			110,425
	$11.58			$63.12		$12.56			$34.02			$18.15
	N/A			N/A		N/A		$	229,390,606			N/A
	N/A			N/A		N/A			5,767,613			N/A
	N/A			N/A		N/A			$39.77			N/A
$	99,791,558		$	1,502,275,802	$	11,873,218		$	130,103,796		$	64,022,554
	7,785,361			23,721,522		919,950			3,332,123			3,099,560
	$12.82			$63.33		$12.91			$39.05			$20.66
$	583,843,462			N/A	$	456,239,199		$	678,699,087		$	31,768,152
	44,219,594			N/A		35,827,889			17,076,168			1,529,365
	$13.20			N/A		$12.73			$39.75			$20.77
$	653,109,010		$	871,427,701	$	526,903,907		$	1,149,153,992		$	111,820,445

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

42 Wells Fargo Equity Gateway Funds Statements of operations—year ended May 31, 2016

	C&B Large Cap Value Fund			Diversified Equity Fund
Investment income
Dividends allocated from affiliated Master Portfolio(s)*	$	5,396,471		$	3,993,990
Securities lending income allocated from affiliated Master Portfolio(s)		17,748			100,403
Interest allocated from affiliated Master Portfolio(s)		0			39
Affiliated income allocated from affiliated Master Portfolio(s)		26,439			34,523
Expenses allocated from affiliated Master Portfolio(s)		(1,836,920	)		(1,381,070	)
Waivers allocated from affiliated Master Portfolio(s)		0			77,072
Total investment income (loss)		3,603,738			2,824,957
Expenses
Management fee		135,336			668,208
Administration fees
Class A		130,295			154,811
Class B		337			61
Class C		15,369			7,609
Class R6		N/A			N/A
Administrator Class		49,318			187,009
Institutional Class		170,632			N/A
Investor Class		87,078	1		N/A
Shareholder servicing fees
Class A		153,044			180,323
Class B		387			70
Class C		17,922			8,854
Administrator Class		97,483			367,380
Investor Class		68,029	1		N/A
Distribution fees
Class B		1,161			211
Class C		53,766			26,563
Custody and accounting fees		11,544			9,875
Professional fees		32,925			31,578
Registration fees		66,198			45,783
Shareholder report expenses		27,282			31,015
Trustees’ fees and expenses		12,257			13,019
Interest expense		0			0
Other fees and expenses		12,432			9,376
Total expenses		1,142,795			1,741,745
Less: Fee waivers and/or expense reimbursements		(388,259	)		(602,364	)
Net expenses		754,536			1,139,381
Net investment income (loss)		2,849,202			1,685,576
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on securities transaction allocated from affiliated Master Portfolio(s)		11,830,809			13,338,712
Net change in unrealized gains (losses) on securities transactions allocated from affiliated Master Portfolio(s)		(16,093,129	)		(26,151,655	)
Net realized and unrealized gains (losses) on investments		(4,262,320	)		(12,812,943	)
Net increase (decrease) in net assets resulting from operations	$	(1,413,118	)	$	(11,127,367	)
* Net of foreign dividend withholding taxes allocated from affiliated Master Portfolio(s) in the amount of		$33,927			$101,477

¹  For the period from June 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.

²  For the period from June 1, 2015 to December 8, 2015. Class B shares of the Fund were no longer offered to shareholders effective December 9, 2015.

³  For the period from June 1, 2015 to January 7, 2016. Class B shares of the Fund were no longer offered to shareholders effective January 8, 2016.

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

Statements of operations—year ended May 31, 2016 Wells Fargo Equity Gateway Funds 43

Emerging Growth Fund			Index Fund			International Value Fund			Small Company Growth Fund			Small Company Value Fund
$	924,377		$	50,839,516		$	15,006,915		$	4,892,441		$	1,586,314
	2,642,118			130,852			674,021			2,873,991			56,768
	0			1,633			0			0			0
	40,616			959,100			10,774			141,412			9,510
	(7,255,174	)		(2,452,026	)		(4,193,055	)		(8,191,978	)		(954,898	)
	0			11,023			0			0			0
	(3,648,063	)		49,490,098			11,498,655			(284,134	)		697,694
	452,398			1,166,745			229,784			513,817			56,548
	278,371			1,166,679			10,844			257,233			49,981
	N/A			3,107			2	2		86			29	3
	9,279			168,410			1,803			53,649			4,725
	N/A			N/A			N/A			36,074			N/A
	150,218			2,055,056			139,165			191,770			82,570
	794,310			N/A			438,504			774,218			28,838
	55,252	1		290,084	1		N/A			N/A			N/A
	324,745			1,365,521			12,633			301,576			58,203
	N/A			3,602			2	2		100			34	3
	10,787			196,413			2,102			62,943			5,496
	266,558			1,606,960			287,915			376,786			162,206
	43,166	1		223,991	1		N/A			N/A			N/A
	N/A			10,805			8	2		299			102	3
	32,361			589,239			6,307			188,829			16,489
	35,324			88,900			17,984			39,869			5,573
	32,929			31,926			33,855			32,891			31,342
	71,165			77,687			53,359			132,644			62,415
	112,717			112,450			33,405			80,692			11,849
	11,946			5,534			12,049			16,013			17,549
	0			510			0			0			0
	23,234			32,013			10,261			21,803			9,198
	2,704,760			9,195,632			1,289,982			3,081,292			603,147
	(748,747	)		(3,548,383	)		(544,334	)		(436,129	)		(186,900	)
	1,956,013			5,647,249			745,648			2,645,163			416,247
	(5,604,076	)		43,842,849			10,753,007			(2,929,297	)		281,447
	16,759,240			145,902,899			(1,414,408	)		(96,538,450	)		5,081,876
	(161,957,206	)		(169,888,364	)		(68,327,246	)		(52,968,762	)		(11,987,449	)
	(145,197,966	)		(23,985,465	)		(69,741,654	)		(149,507,212	)		(6,905,573	)
$	(150,802,042	)	$	19,857,384		$	(58,988,647	)	$	(152,436,509	)	$	(6,624,126	)
	$0			$25,267			$1,917,871			$10,858			$0

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

44 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	C&B Large Cap Value Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	2,849,202					$	2,657,630
Net realized gains on investments					11,830,809						35,718,120
Net change in unrealized gains (losses) on investments					(16,093,129	)					(10,878,572	)
Net increase (decrease) in net assets resulting from operations					(1,413,118	)					27,497,178
Distributions to shareholders from
Net investment income
Class A					(704,407	)					(191,216	)
Class C					(5,711	)					(4,396	)
Administrator Class					(390,601	)					(542,158	)
Institutional Class					(1,708,080	)					(1,502,171	)
Investor Class					0	1					(465,119	)
Net realized gains
Class A					(2,768,349	)					0
Class B					(4,185	)					0
Class C					(226,860	)					0
Administrator Class					(1,238,469	)					0
Institutional Class					(4,289,359	)					0
Total distributions to shareholders					(11,336,021	)					(2,705,060	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		5,575,994			70,098,722			130,294			1,649,118
Class B		1,293			16,730			2,800			33,928
Class C		62,571			770,614			79,178			996,261
Administrator Class		262,362			3,228,873			918,168			11,427,828
Institutional Class		4,202,150			52,013,737			3,151,544			39,122,654
Investor Class		97,970	1		1,221,665	1		516,799			6,496,956
					127,350,341						59,726,745
Reinvestment of distributions
Class A		283,128			3,389,659			13,941			178,728
Class B		341			4,144			0			0
Class C		18,836			224,790			328			4,197
Administrator Class		129,270			1,547,567			40,849			523,278
Institutional Class		125,571			1,506,294			39,316			504,812
Investor Class		0	1		0	1		35,187			451,449
					6,672,454						1,662,464
Payment for shares redeemed
Class A		(886,210	)		(10,862,850	)		(534,599	)		(6,629,667	)
Class B		(14,555	)		(187,133	)		(20,246	)		(256,296	)
Class C		(86,496	)		(1,042,353	)		(98,840	)		(1,234,205	)
Administrator Class		(2,802,823	)		(34,387,115	)		(1,188,416	)		(14,887,845	)
Institutional Class		(3,825,560	)		(47,032,229	)		(1,771,504	)		(22,562,089	)
Investor Class		(5,539,205	)1		(69,791,462	)1		(1,183,734	)		(14,758,082	)
					(163,303,142	)					(60,328,184	)
Net increase (decrease) in net assets resulting from capital share transactions					(29,280,347	)					1,061,025
Total increase (decrease) in net assets					(42,029,486	)					25,853,143
Net assets
Beginning of period					294,645,659						268,792,516
End of period				$	252,616,173					$	294,645,659
Undistributed net investment income				$	910,811					$	1,073,489

¹  For the period from June 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.

Statements of changes in net assets Wells Fargo Equity Gateway Funds 45

	Diversified Equity Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	1,685,576					$	1,736,992
Net realized gains on investments					13,338,712						29,109,484
Net change in unrealized gains (losses) on investments					(26,151,655	)					(4,344,945	)
Net increase (decrease) in net assets resulting from operations					(11,127,367	)					26,501,531
Distributions to shareholders from
Net investment income
Class A					(221,131	)					(390,822	)
Administrator Class					(839,164	)					(1,510,404	)
Net realized gains
Class A					(8,544,677	)					(7,603,395	)
Class B					(4,748	)					(21,431	)
Class C					(466,528	)					(406,484	)
Administrator Class					(17,061,026	)					(19,427,983	)
Total distributions to shareholders					(27,137,274	)					(29,360,519	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		94,693			2,811,823			72,592			2,360,097
Class B		230			6,416			1,406			41,124
Class C		11,634			316,337			18,482			554,242
Administrator Class		415,025			11,962,561			481,984			15,640,677
					15,097,137						18,596,140
Reinvestment of distributions
Class A		320,487			8,727,909			255,678			7,964,368
Class B		121			2,943			757			21,428
Class C		17,905			449,232			13,515			392,475
Administrator Class		649,470			17,753,217			663,957			20,758,097
					26,933,301						29,136,368
Payment for shares redeemed
Class A		(457,048	)		(12,951,934	)		(318,000	)		(10,362,321	)
Class B		(1,838	)		(44,756	)		(27,329	)		(827,317	)
Class C		(54,060	)		(1,358,279	)		(33,140	)		(1,009,906	)
Administrator Class		(1,073,233	)		(31,084,914	)		(2,856,844	)		(92,459,859	)
					(45,439,883	)					(104,659,403	)
Net decrease in net assets resulting from capital share transactions					(3,409,445	)					(56,926,895	)
Total decrease in net assets					(41,674,086	)					(59,785,883	)
Net assets
Beginning of period					253,081,641						312,867,524
End of period				$	211,407,555					$	253,081,641
Undistributed net investment income				$	473,513					$	46,525

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

46 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	Emerging Growth Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment loss				$	(5,604,076	)				$	(9,024,176	)
Net realized gains on investments					16,759,240						112,708,948
Net change in unrealized gains (losses) on investments					(161,957,206	)					117,750,083
Net increase (decrease) in net assets resulting from operations					(150,802,042	)					221,434,855
Distributions to shareholders from
Net realized gains
Class A					(17,578,574	)					(9,447,019	)
Class C					(550,009	)					(383,862	)
Administrator Class					(13,726,906	)					(11,952,978	)
Institutional Class					(69,855,887	)					(49,504,949	)
Investor Class					0	1					(3,083,544	)
Total distributions to shareholders					(101,711,376	)					(74,372,352	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,191,945			46,782,655			589,286			9,273,753
Class C		10,483			144,504			4,497			66,858
Administrator Class		2,336,832			33,830,513			2,507,269			40,410,865
Institutional Class		11,852,732			173,650,959			10,077,065			166,502,610
Investor Class		89,491	1		1,444,439	1		128,783			2,057,466
					255,853,070						218,311,552
Reinvestment of distributions
Class A		1,300,151			17,174,997			606,373			9,247,183
Class C		41,108			503,162			24,422			350,946
Administrator Class		810,410			10,932,427			665,028			10,314,584
Institutional Class		4,771,143			66,223,470			2,893,200			45,886,151
Investor Class		0	1		0	1		196,696			2,981,905
					94,834,056						68,780,769
Payment for shares redeemed
Class A		(2,239,881	)		(30,073,121	)		(2,238,922	)		(35,052,130	)
Class C		(47,632	)		(594,685	)		(50,484	)		(748,028	)
Administrator Class		(4,765,394	)		(70,399,879	)		(6,591,370	)		(106,561,035	)
Institutional Class		(14,016,874	)		(206,834,361	)		(14,421,358	)		(236,697,488	)
Investor Class		(2,736,791	)1		(40,078,310	)1		(409,799	)		(6,362,087	)
					(347,980,356	)					(385,420,768	)
Net increase (decrease) in net assets resulting from capital share transactions					2,706,770						(98,328,447	)
Total increase (decrease) in net assets					(249,806,648	)					48,734,056
Net assets
Beginning of period					1,064,410,275						1,015,676,219
End of period				$	814,603,627					$	1,064,410,275
Accumulated net investment loss				$	(1,370,106	)				$	(3,804,464	)

¹  For the period from June 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.

Statements of changes in net assets Wells Fargo Equity Gateway Funds 47

	Index Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	43,842,849					$	45,846,902
Net realized gains on investments					145,902,899						143,388,775
Net change in unrealized gains (losses) on investments					(169,888,364	)					102,650,064
Net increase in net assets resulting from operations					19,857,384						291,885,741
Distributions to shareholders from
Net investment income
Class A					(11,172,028	)					(6,566,177	)
Class B					(6,396	)					(12,077	)
Class C					(728,373	)					(604,147	)
Administrator Class					(31,972,442	)					(34,295,290	)
Investor Class					0	1					(3,502,692	)
Net realized gains
Class A					(39,384,515	)					(5,235,617	)
Class B					(83,225	)					(31,633	)
Class C					(4,840,929	)					(945,801	)
Administrator Class					(97,917,183	)					(22,741,125	)
Investor Class					0	1					(2,537,733	)
Total distributions to shareholders					(186,105,091	)					(76,472,292	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,880,729			256,525,864			388,150			25,178,381
Class B		149			8,695			146			9,762
Class C		135,073			8,323,805			86,074			5,639,238
Administrator Class		3,967,724			247,773,885			5,874,897			384,950,475
Investor Class		142,837	1		9,251,027	1		810,418			52,754,953
					521,883,276						468,532,809
Reinvestment of distributions
Class A		806,782			49,545,858			174,805			11,529,519
Class B		1,408			88,216			614			41,109
Class C		52,914			3,262,843			13,660			904,452
Administrator Class		2,060,178			127,480,756			829,053			55,036,997
Investor Class		0	1		0	1		90,165			5,962,586
					180,377,673						73,474,663
Payment for shares redeemed
Class A		(1,123,946	)		(69,747,531	)		(910,851	)		(59,490,312	)
Class B		(15,549	)		(1,010,540	)		(24,275	)		(1,605,163	)
Class C		(162,173	)		(10,047,846	)		(112,909	)		(7,341,983	)
Administrator Class		(9,338,168	)		(589,128,029	)		(11,398,138	)		(748,386,873	)
Investor Class		(3,630,262	)1		(242,534,900	)1		(480,314	)		(31,414,981	)
					(912,468,846	)					(848,239,312	)
Net decrease in net assets resulting from capital share transactions					(210,207,897	)					(306,231,840	)
Total decrease in net assets					(376,455,604	)					(90,818,391	)
Net assets
Beginning of period					2,599,156,703						2,689,975,094
End of period				$	2,222,701,099					$	2,599,156,703
Undistributed net investment income				$	16,373,457					$	17,817,859

¹  For the period from June 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.

48 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	International Value Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	10,753,007					$	9,858,076
Net realized gains (losses) on investments					(1,414,408	)					11,094,516
Net change in unrealized gains (losses) on investments					(68,327,246	)					(25,271,313	)
Net decrease in net assets resulting from operations					(58,988,647	)					(4,318,721	)
Distributions to shareholders from
Net investment income
Class A					(74,978	)					(124,398	)
Class C					(6,472	)					(15,574	)
Administrator Class					0						(11,810,387	)
Institutional Class					(8,593,037	)					(99,504	)
Total distributions to shareholders					(8,674,487	)					(12,049,863	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		137,751			1,746,788			96,792			1,420,552
Class C		26,626			345,603			16,755			237,604
Administrator Class		1,268,931			18,094,801			6,638,872			95,650,707
Institutional Class		38,985,756			524,060,776			125,680			1,859,946
					544,247,968						99,168,809
Reinvestment of distributions
Class A		5,589			73,109			9,086			123,662
Class C		454			5,827			1,125			15,035
Administrator Class		0			0			874,917			11,802,625
Institutional Class		662,612			8,587,447			6,675			90,113
					8,666,383						12,031,435
Payment for shares redeemed
Class A		(143,571	)		(1,876,076	)		(152,548	)		(2,261,304	)
Class B		(134	)1		(1,823	)1		(1,476	)		(21,755	)
Class C		(28,008	)		(352,174	)		(15,291	)		(213,669	)
Administrator Class		(33,457,218	)		(455,926,251	)		(4,339,458	)		(63,303,960	)
Institutional Class		(4,077,552	)		(51,283,434	)		(28,692	)		(410,073	)
					(509,439,758	)					(66,210,761	)
Net increase in net assets resulting from capital share transactions					43,474,593						44,989,483
Total increase (decrease) in net assets					(24,188,541	)					28,620,899
Net assets
Beginning of period					498,065,106						469,444,207
End of period				$	473,876,565					$	498,065,106
Undistributed net investment income				$	7,379,031					$	5,915,574

¹  For the period from June 1, 2015 to December 8, 2015. Class B shares of the Fund were no longer offered to shareholders effective December 9, 2015.

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

Statements of changes in net assets Wells Fargo Equity Gateway Funds 49

	Small Company Growth Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment loss				$	(2,929,297	)				$	(2,896,434	)
Net realized gains (losses) on investments					(96,538,450	)					16,034,580
Net change in unrealized gains (losses) on investments					(52,968,762	)					73,081,605
Net increase (decrease) in net assets resulting from operations					(152,436,509	)					86,219,751
Distributions to shareholders from
Net realized gains
Class A					(959,782	)					(1,858,139	)
Class B					(390	)					(3,974	)
Class C					(215,622	)					(460,132	)
Class R6					(879,243	)					(1,115	)1
Administrator Class					(1,038,580	)					(5,745,406	)
Institutional Class					(4,261,265	)					(12,434,827	)
Total distributions to shareholders					(7,354,882	)					(20,503,593	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,891,844			116,614,639			1,510,052			64,079,862
Class B		550			20,540			529			19,657
Class C		578,225			21,398,369			290,683			11,238,963
Class R6		6,430,379			268,578,557			13,839	1		637,602	1
Administrator Class		1,812,201			76,404,712			2,449,329			104,749,365
Institutional Class		13,905,905			582,506,295			6,506,083			283,139,829
					1,065,523,112						463,865,278
Reinvestment of distributions
Class A		23,512			924,981			43,783			1,755,706
Class B		10			368			93			3,360
Class C		4,971			177,103			9,491			347,563
Class R6		20,281			840,043			27	1		1,115	1
Administrator Class		25,417			1,035,227			138,133			5,721,481
Institutional Class		79,935			3,310,125			218,839			9,195,633
					6,287,847						17,024,858
Payment for shares redeemed
Class A		(1,436,430	)		(53,673,216	)		(388,500	)		(16,048,290	)
Class B		(1,960	)		(71,547	)		(1,539	)		(58,026	)
Class C		(221,799	)		(7,390,685	)		(49,730	)		(1,913,997	)
Class R6		(696,900	)		(27,316,064	)		(13	)1		(614	)1
Administrator Class		(2,556,843	)		(105,996,475	)		(1,451,172	)		(62,196,609	)
Institutional Class		(6,761,785	)		(270,191,008	)		(1,407,660	)		(61,985,956	)
					(464,638,995	)					(142,203,492	)
Net increase in net assets resulting from capital share transactions					607,171,964						338,686,644
Total increase in net assets					447,380,573						404,402,802
Net assets
Beginning of period					746,450,266						342,047,464
End of period				$	1,193,830,839					$	746,450,266
Accumulated net investment loss				$	(511,635	)				$	(873,181	)

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

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

50 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	Small Company Value Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	281,447					$	542,897
Net realized gains on investments					5,081,876						7,943,351
Net change in unrealized gains (losses) on investments					(11,987,449	)					(915,138	)
Net increase (decrease) in net assets resulting from operations					(6,624,126	)					7,571,110
Distributions to shareholders from
Net investment income
Class A					(30,336	)					0
Administrator Class					(230,332	)					0
Institutional Class					(170,512	)					0
Total distributions to shareholders					(431,180	)					0
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		184,247			3,586,453			194,148			3,976,608
Class B		708	1		13,845	1		179			3,340
Class C		18,509			342,862			31,950			594,610
Administrator Class		473,663			9,486,626			558,083			11,639,194
Institutional Class		1,003,324			20,946,201			450,222			9,191,898
					34,375,987						25,405,650
Reinvestment of distributions
Class A		1,492			28,226			0			0
Administrator Class		11,843			228,808			0			0
Institutional Class		8,652			167,939			0			0
					424,973						0
Payment for shares redeemed
Class A		(270,420	)		(5,299,278	)		(284,709	)		(5,834,552	)
Class B		(1,264	)1		(21,882	)1		(2,794	)		(51,063	)
Class C		(42,627	)		(755,968	)		(17,350	)		(318,222	)
Administrator Class		(630,158	)		(12,681,576	)		(649,811	)		(13,424,863	)
Institutional Class		(247,681	)		(4,876,787	)		(266,922	)		(5,603,780	)
					(23,635,491	)					(25,232,480	)
Net increase in net assets resulting from capital share transactions					11,165,469						173,170
Total increase in net assets					4,110,163						7,744,280
Net assets
Beginning of period					116,835,713						109,091,433
End of period				$	120,945,876					$	116,835,713
Undistributed net investment income				$	291,961					$	431,085

¹  For the period from June 1, 2015 to January 8, 2016. Class B shares of the Fund were no longer offered to shareholders effective January 9, 2016.

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

This page is intentionally left blank.

52 Wells Fargo Equity Gateway Funds Financial highlights

C&B Large Cap Value Fund	Beginning net asset value per share		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	13.07		0.11	4		(0.14	)		(0.10	)		(0.39	)	$	12.55
Year ended May 31, 2015	$	11.99		0.10			1.07			(0.09	)		0.00		$	13.07
Year ended May 31, 2014	$	10.32		0.09			1.68			(0.10	)		0.00		$	11.99
Year ended May 31, 2013	$	8.13		0.12			2.20			(0.13	)		0.00		$	10.32
Year ended May 31, 2012	$	8.70		0.12			(0.58	)		(0.11	)		0.00		$	8.13
Class B
Year ended May 31, 2016	$	13.22		0.01	4		(0.14	)		0.00			(0.39	)	$	12.70
Year ended May 31, 2015	$	12.14		(0.01	)4		1.09			0.00			0.00		$	13.22
Year ended May 31, 2014	$	10.43		0.02	4		1.69			0.00			0.00		$	12.14
Year ended May 31, 2013	$	8.16		0.05	4		2.22			0.00			0.00		$	10.43
Year ended May 31, 2012	$	8.68		0.05	4		(0.56	)		(0.01	)		0.00		$	8.16
Class C
Year ended May 31, 2016	$	13.01		0.01			(0.14	)		(0.01	)		(0.39	)	$	12.48
Year ended May 31, 2015	$	11.95		(0.00	)5		1.07			(0.01	)		0.00		$	13.01
Year ended May 31, 2014	$	10.29		0.01			1.67			(0.02	)		0.00		$	11.95
Year ended May 31, 2013	$	8.11		0.04			2.20			(0.06	)		0.00		$	10.29
Year ended May 31, 2012	$	8.66		0.05			(0.56	)		(0.04	)		0.00		$	8.11
Administrator Class
Year ended May 31, 2016	$	13.07		0.13	4		(0.15	)		(0.12	)		(0.39	)	$	12.54
Year ended May 31, 2015	$	12.00		0.13			1.06			(0.12	)		0.00		$	13.07
Year ended May 31, 2014	$	10.32		0.12	4		1.68			(0.12	)		0.00		$	12.00
Year ended May 31, 2013	$	8.13		0.13	4		2.21			(0.15	)		0.00		$	10.32
Year ended May 31, 2012	$	8.69		0.13	4		(0.56	)		(0.13	)		0.00		$	8.13
Institutional Class
Year ended May 31, 2016	$	13.11		0.16			(0.14	)		(0.16	)		(0.39	)	$	12.58
Year ended May 31, 2015	$	12.03		0.15			1.08			(0.15	)		0.00		$	13.11
Year ended May 31, 2014	$	10.35		0.14			1.69			(0.15	)		0.00		$	12.03
Year ended May 31, 2013	$	8.16		0.17			2.19			(0.17	)		0.00		$	10.35
Year ended May 31, 2012	$	8.73		0.14			(0.56	)		(0.15	)		0.00		$	8.16

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

⁵  Amount is less than $0.005.

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

Financial highlights Wells Fargo Equity Gateway Funds 53

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income (loss)			Gross expenses1			Net expenses1
	0.89	%		1.25	%		1.15	%		(0.08	)%		29	%	$	88,387
	0.73	%		1.29	%		1.15	%		9.78	%		35	%	$	27,085
	0.86	%		1.31	%		1.15	%		17.25	%		22	%	$	29,537
	1.25	%		1.30	%		1.15	%		28.82	%		18	%	$	23,571
	1.33	%		1.30	%		1.15	%		(5.23	)%		21	%	$	21,380
	0.08	%		2.00	%		1.90	%		(0.81	)%		29	%	$	105
	(0.04	)%		2.04	%		1.90	%		8.90	%		35	%	$	280
	0.17	%		2.06	%		1.90	%		16.40	%		22	%	$	469
	0.57	%		2.03	%		1.89	%		27.82	%		18	%	$	1,167
	0.61	%		2.05	%		1.90	%		(5.84	)%		21	%	$	2,418
	0.11	%		2.00	%		1.90	%		(0.82	)%		29	%	$	7,282
	(0.02	)%		2.04	%		1.90	%		8.93	%		35	%	$	7,654
	0.11	%		2.06	%		1.90	%		16.39	%		22	%	$	7,262
	0.51	%		2.05	%		1.90	%		27.76	%		18	%	$	5,818
	0.58	%		2.05	%		1.90	%		(5.81	)%		21	%	$	5,524
	1.03	%		1.16	%		0.98	%		0.11	%		29	%	$	23,210
	0.92	%		1.13	%		0.95	%		9.93	%		35	%	$	55,705
	1.08	%		1.14	%		0.95	%		17.49	%		22	%	$	53,884
	1.48	%		1.13	%		0.95	%		29.09	%		18	%	$	70,727
	1.54	%		1.13	%		0.95	%		(4.90	)%		21	%	$	81,999
	1.25	%		0.92	%		0.77	%		0.33	%		29	%	$	133,632
	1.18	%		0.86	%		0.70	%		10.15	%		35	%	$	132,768
	1.34	%		0.88	%		0.70	%		17.86	%		22	%	$	104,758
	1.68	%		0.87	%		0.70	%		29.32	%		18	%	$	130,015
	1.78	%		0.87	%		0.70	%		(4.72	)%		21	%	$	96,653

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

54 Wells Fargo Equity Gateway Funds Financial highlights

Diversified Equity Fund	Beginning net asset value per share		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	32.37		0.16			(1.55	)		(0.08	)		(3.60	)	$	27.30
Year ended May 31, 2015	$	32.78		0.14			2.79			(0.15	)		(3.19	)	$	32.37
Year ended May 31, 2014	$	30.65		0.16			5.48			(0.17	)		(3.34	)	$	32.78
Year ended May 31, 2013	$	26.08		0.23	4		6.14			(0.24	)		(1.56	)	$	30.65
Year ended May 31, 2012	$	29.71		0.15			(2.01	)		(0.18	)		(1.59	)	$	26.08
Class B
Year ended May 31, 2016	$	29.46		(0.10	)4		(1.27	)		0.00			(3.60	)	$	24.49
Year ended May 31, 2015	$	30.20		(0.14	)4		2.59			0.00			(3.19	)	$	29.46
Year ended May 31, 2014	$	28.54		(0.10	)4		5.10			0.00			(3.34	)	$	30.20
Year ended May 31, 2013	$	24.36		0.01	4		5.73			0.00			(1.56	)	$	28.54
Year ended May 31, 2012	$	27.87		(0.01	)4		(1.91	)		0.00			(1.59	)	$	24.36
Class C
Year ended May 31, 2016	$	30.22		(0.05	)4		(1.45	)		0.00			(3.60	)	$	25.12
Year ended May 31, 2015	$	30.88		(0.12	)		2.65			0.00			(3.19	)	$	30.22
Year ended May 31, 2014	$	29.13		(0.08	)4		5.18			(0.01	)		(3.34	)	$	30.88
Year ended May 31, 2013	$	24.88		0.02	4		5.84			(0.05	)		(1.56	)	$	29.13
Year ended May 31, 2012	$	28.43		(0.59	)4		(1.37	)		0.00			(1.59	)	$	24.88
Administrator Class
Year ended May 31, 2016	$	32.45		0.24			(1.55	)		(0.16	)		(3.60	)	$	27.38
Year ended May 31, 2015	$	32.84		0.22	4		2.81			(0.23	)		(3.19	)	$	32.45
Year ended May 31, 2014	$	30.70		0.23	4		5.49			(0.24	)		(3.34	)	$	32.84
Year ended May 31, 2013	$	26.12		0.30	4		6.15			(0.31	)		(1.56	)	$	30.70
Year ended May 31, 2012	$	29.78		0.33			(2.13	)		(0.27	)		(1.59	)	$	26.12

¹ Ratios include net expenses allocated from the affiliated Master Portfolios which were as follows:

	Year ended May 31
	2016			2015			2014			2013			2012
Class A		0.59	%		0.59	%		0.58	%		0.57	%		0.56	%
Class B		0.55	%		0.59	%		0.58	%		0.57	%		0.56	%
Class C		0.59	%		0.59	%		0.58	%		0.57	%		0.56	%
Administrator Class		0.59	%		0.59	%		0.58	%		0.57	%		0.56	%

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in each respective affiliated Master Portfolio by the corresponding affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Equity Gateway Funds 55

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income (loss)			Gross expenses1			Net expenses1
	0.60	%		1.41	%		1.25	%		(4.24	)%		39	%	$	67,597
	0.44	%		1.44	%		1.25	%		9.39	%		38	%	$	81,502
	0.48	%		1.43	%		1.25	%		19.10	%		37	%	$	82,186
	0.81	%		1.43	%		1.25	%		25.42	%		44	%	$	75,640
	0.74	%		1.41	%		1.25	%		(5.91	)%		57	%	$	75,751
	(0.36	)%		2.12	%		1.99	%		(4.61	)%		39	%	$	1
	(0.47	)%		2.18	%		2.00	%		8.54	%		38	%	$	45
	(0.34	)%		2.18	%		2.00	%		18.20	%		37	%	$	806
	0.04	%		2.18	%		2.00	%		24.48	%		44	%	$	2,029
	(0.05	)%		2.16	%		2.00	%		(6.61	)%		57	%	$	2,922
	(0.17	)%		2.16	%		2.00	%		(4.96	)%		39	%	$	2,846
	(0.31	)%		2.19	%		2.00	%		8.58	%		38	%	$	4,165
	(0.25	)%		2.19	%		2.00	%		18.23	%		37	%	$	4,292
	0.07	%		2.18	%		2.00	%		24.50	%		44	%	$	2,667
	(0.02	)%		2.16	%		2.00	%		(6.62	)%		57	%	$	2,499
	0.85	%		1.33	%		1.00	%		(3.98	)%		39	%	$	140,963
	0.67	%		1.28	%		1.00	%		9.65	%		38	%	$	167,371
	0.71	%		1.27	%		1.00	%		19.40	%		37	%	$	225,584
	1.06	%		1.27	%		1.00	%		25.75	%		44	%	$	290,011
	0.99	%		1.25	%		1.00	%		(5.67	)%		57	%	$	293,895

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

56 Wells Fargo Equity Gateway Funds Financial highlights

Emerging Growth Fund	Beginning net asset value per share		Net investment loss			Net realized and unrealized gains (losses) on investments			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	16.70		(0.13	)4		(2.28	)		(1.74	)	$	12.55
Year ended May 31, 2015	$	14.61		(0.22	)		3.51			(1.20	)	$	16.70
Year ended May 31, 2014	$	14.10		(0.19	)		1.88			(1.18	)	$	14.61
Year ended May 31, 2013	$	12.44		(0.15	)		2.49			(0.68	)	$	14.10
Year ended May 31, 2012	$	13.12		(0.14	)4		(0.54	)		0.00		$	12.44
Class C
Year ended May 31, 2016	$	15.67		(0.21	)		(2.14	)		(1.74	)	$	11.58
Year ended May 31, 2015	$	13.88		(0.33	)		3.32			(1.20	)	$	15.67
Year ended May 31, 2014	$	13.55		(0.32	)		1.83			(1.18	)	$	13.88
Year ended May 31, 2013	$	12.06		(0.27	)		2.44			(0.68	)	$	13.55
Year ended May 31, 2012	$	12.81		(0.23	)4		(0.52	)		0.00		$	12.06
Administrator Class
Year ended May 31, 2016	$	17.00		(0.12	)4		(2.32	)		(1.74	)	$	12.82
Year ended May 31, 2015	$	14.83		(0.16	)4		3.53			(1.20	)	$	17.00
Year ended May 31, 2014	$	14.28		(0.17	)4		1.90			(1.18	)	$	14.83
Year ended May 31, 2013	$	12.56		(0.12	)		2.52			(0.68	)	$	14.28
Year ended May 31, 2012	$	13.22		(0.12	)4		(0.54	)		0.00		$	12.56
Institutional Class
Year ended May 31, 2016	$	17.40		(0.07	)		(2.39	)		(1.74	)	$	13.20
Year ended May 31, 2015	$	15.11		(0.12	)		3.61			(1.20	)	$	17.40
Year ended May 31, 2014	$	14.49		(0.11	)		1.91			(1.18	)	$	15.11
Year ended May 31, 2013	$	12.70		(0.08	)		2.55			(0.68	)	$	14.49
Year ended May 31, 2012	$	13.33		(0.08	)4		(0.55	)		0.00		$	12.70

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Equity Gateway Funds 57

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment loss			Gross expenses1			Net expenses1
	(0.92	)%		1.35	%		1.35	%		(14.94	)%		68	%	$	127,154
	(1.20	)%		1.39	%		1.37	%		23.32	%		56	%	$	131,638
	(1.20	)%		1.39	%		1.37	%		11.30	%		63	%	$	130,403
	(1.04	)%		1.40	%		1.37	%		19.89	%		65	%	$	125,070
	(1.13	)%		1.41	%		1.37	%		(5.18	)%		75	%	$	125,113
	(1.70	)%		2.10	%		2.10	%		(15.59	)%		68	%	$	3,815
	(1.95	)%		2.14	%		2.12	%		22.35	%		56	%	$	5,101
	(1.95	)%		2.14	%		2.12	%		10.40	%		63	%	$	4,816
	(1.79	)%		2.15	%		2.12	%		19.09	%		65	%	$	4,878
	(1.89	)%		2.17	%		2.12	%		(5.85	)%		75	%	$	5,114
	(0.80	)%		1.23	%		1.20	%		(14.80	)%		68	%	$	99,792
	(1.03	)%		1.21	%		1.20	%		23.45	%		56	%	$	159,813
	(1.03	)%		1.22	%		1.20	%		11.45	%		63	%	$	190,126
	(0.87	)%		1.23	%		1.20	%		20.19	%		65	%	$	200,140
	(0.95	)%		1.22	%		1.19	%		(4.99	)%		75	%	$	185,744
	(0.50	)%		1.01	%		0.90	%		(14.62	)%		68	%	$	583,843
	(0.73	)%		0.96	%		0.90	%		23.89	%		56	%	$	723,946
	(0.73	)%		0.96	%		0.90	%		11.77	%		63	%	$	650,650
	(0.57	)%		0.97	%		0.90	%		20.52	%		65	%	$	578,841
	(0.67	)%		0.98	%		0.90	%		(4.73	)%		75	%	$	526,865

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

58 Wells Fargo Equity Gateway Funds Financial highlights

Index Fund	Beginning net asset value per share		Net investment income			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	67.32		0.81			(0.17	)		(1.08	)		(4.03	)	$	62.85
Year ended May 31, 2015	$	62.14		1.00			5.91			(0.96	)		(0.77	)	$	67.32
Year ended May 31, 2014	$	54.00		0.90			9.59			(0.85	)		(1.50	)	$	62.14
Year ended May 31, 2013	$	44.25		0.86			10.66			(0.83	)		(0.94	)	$	54.00
Year ended May 31, 2012	$	47.17		0.73			(1.35	)		(0.65	)		(1.65	)	$	44.25
Class B
Year ended May 31, 2016	$	68.44		0.61	4		(0.42	)		(0.29	)		(4.03	)	$	64.31
Year ended May 31, 2015	$	62.99		0.49	4		6.02			(0.29	)		(0.77	)	$	68.44
Year ended May 31, 2014	$	54.57		0.45	4		9.70			(0.23	)		(1.50	)	$	62.99
Year ended May 31, 2013	$	44.53		0.47	4		10.78			(0.27	)		(0.94	)	$	54.57
Year ended May 31, 2012	$	47.23		0.38	4		(1.29	)		(0.14	)		(1.65	)	$	44.53
Class C
Year ended May 31, 2016	$	67.55		0.62	4		(0.45	)		(0.57	)		(4.03	)	$	63.12
Year ended May 31, 2015	$	62.37		0.50			5.94			(0.49	)		(0.77	)	$	67.55
Year ended May 31, 2014	$	54.22		0.47			9.62			(0.44	)		(1.50	)	$	62.37
Year ended May 31, 2013	$	44.41		0.48	4		10.71			(0.44	)		(0.94	)	$	54.22
Year ended May 31, 2012	$	47.27		0.39	4		(1.31	)		(0.29	)		(1.65	)	$	44.41
Administrator Class
Year ended May 31, 2016	$	67.80		1.31			(0.51	)		(1.24	)		(4.03	)	$	63.33
Year ended May 31, 2015	$	62.56		1.27			5.90			(1.16	)		(0.77	)	$	67.80
Year ended May 31, 2014	$	54.34		1.08			9.66			(1.02	)		(1.50	)	$	62.56
Year ended May 31, 2013	$	44.52		1.02			10.71			(0.97	)		(0.94	)	$	54.34
Year ended May 31, 2012	$	47.45		0.83			(1.32	)		(0.79	)		(1.65	)	$	44.52

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Equity Gateway Funds 59

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.78	%		0.63	%		0.48	%		1.24	%		4	%	$	639,496
	1.50	%		0.68	%		0.56	%		11.21	%		4	%	$	445,088
	1.53	%		0.67	%		0.56	%		19.77	%		5	%	$	432,448
	1.72	%		0.67	%		0.56	%		26.63	%		4	%	$	407,533
	1.63	%		0.68	%		0.56	%		(0.95	)%		9	%	$	347,412
	0.95	%		1.39	%		1.25	%		0.48	%		4	%	$	1,071
	0.74	%		1.43	%		1.31	%		10.39	%		4	%	$	2,098
	0.77	%		1.42	%		1.31	%		18.86	%		5	%	$	3,412
	0.95	%		1.42	%		1.31	%		25.66	%		4	%	$	5,453
	0.85	%		1.43	%		1.31	%		(1.68	)%		9	%	$	8,869
	0.99	%		1.38	%		1.24	%		0.48	%		4	%	$	79,858
	0.75	%		1.43	%		1.31	%		10.38	%		4	%	$	83,718
	0.78	%		1.42	%		1.31	%		18.89	%		5	%	$	78,118
	0.97	%		1.42	%		1.31	%		25.67	%		4	%	$	70,322
	0.87	%		1.43	%		1.31	%		(1.67	)%		9	%	$	65,245
	1.97	%		0.40	%		0.25	%		1.49	%		4	%	$	1,502,276
	1.81	%		0.37	%		0.25	%		11.56	%		4	%	$	1,832,814
	1.84	%		0.36	%		0.25	%		20.13	%		5	%	$	1,984,845
	2.03	%		0.36	%		0.25	%		27.02	%		4	%	$	1,832,524
	1.94	%		0.37	%		0.25	%		(0.63	)%		9	%	$	1,682,905

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

60 Wells Fargo Equity Gateway Funds Financial highlights

International Value Fund	Beginning net asset value per share		Net investment income			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 2016	$	14.85		0.26			(2.08	)		(0.20	)	$	12.83
Year ended May 31, 2015	$	15.45		0.26	4		(0.53	)		(0.33	)	$	14.85
Year ended May 31, 2014	$	13.40		0.36			1.97			(0.28	)	$	15.45
Year ended May 31, 2013	$	10.64		0.31			2.71			(0.26	)	$	13.40
Year ended May 31, 2012	$	14.03		0.34			(3.36	)		(0.37	)	$	10.64
Class C
Year ended May 31, 2016	$	14.54		0.17			(2.05	)		(0.10	)	$	12.56
Year ended May 31, 2015	$	15.16		0.13			(0.51	)		(0.24	)	$	14.54
Year ended May 31, 2014	$	13.18		0.19			2.00			(0.21	)	$	15.16
Year ended May 31, 2013	$	10.47		0.19			2.70			(0.18	)	$	13.18
Year ended May 31, 2012	$	13.79		0.23	4		(3.28	)		(0.27	)	$	10.47
Administrator Class
Year ended May 31, 2016	$	14.73		0.14	4		(1.96	)		0.00		$	12.91
Year ended May 31, 2015	$	15.35		0.28			(0.52	)		(0.38	)	$	14.73
Year ended May 31, 2014	$	13.31		0.38			1.98			(0.32	)	$	15.35
Year ended May 31, 2013	$	10.57		0.33	4		2.70			(0.29	)	$	13.31
Year ended May 31, 2012	$	13.95		0.35			(3.33	)		(0.40	)	$	10.57
Institutional Class
Year ended May 31, 2016	$	14.75		0.36			(2.12	)		(0.26	)	$	12.73
Year ended May 31, 2015	$	15.38		0.29			(0.51	)		(0.41	)	$	14.75
Year ended May 31, 2014	$	13.34		0.41			1.98			(0.35	)	$	15.38
Year ended May 31, 2013	$	10.58		0.35			2.73			(0.32	)	$	13.34
Year ended May 31, 2012	$	13.98		0.36			(3.33	)		(0.43	)	$	10.58

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Equity Gateway Funds 61

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.98	%		1.46	%		1.39	%		(12.31	)%		14	%	$	4,981
	1.80	%		1.50	%		1.49	%		(1.55	)%		18	%	$	5,768
	2.45	%		1.51	%		1.50	%		17.48	%		11	%	$	6,725
	2.35	%		1.51	%		1.50	%		28.58	%		16	%	$	5,922
	2.81	%		1.46	%		1.46	%		(21.53	)%		9	%	$	4,742
	1.25	%		2.21	%		2.14	%		(12.95	)%		14	%	$	783
	1.07	%		2.25	%		2.24	%		(2.37	)%		18	%	$	920
	1.88	%		2.26	%		2.25	%		16.64	%		11	%	$	920
	1.67	%		2.26	%		2.25	%		27.67	%		16	%	$	595
	1.96	%		2.21	%		2.21	%		(22.14	)%		9	%	$	441
	0.99	%		1.36	%		1.25	%		(12.36	)%		14	%	$	11,873
	2.12	%		1.34	%		1.25	%		(1.35	)%		18	%	$	487,582
	2.76	%		1.34	%		1.25	%		17.81	%		11	%	$	459,415
	2.67	%		1.34	%		1.25	%		28.90	%		16	%	$	372,187
	3.04	%		1.29	%		1.25	%		(21.37	)%		9	%	$	259,969
	2.81	%		1.13	%		1.01	%		(11.98	)%		14	%	$	456,239
	2.42	%		1.07	%		1.05	%		(1.19	)%		18	%	$	3,793
	2.91	%		1.08	%		1.05	%		18.07	%		11	%	$	2,359
	2.81	%		1.08	%		1.05	%		29.20	%		16	%	$	1,941
	3.20	%		1.03	%		1.03	%		(21.26	)%		9	%	$	1,505

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

62 Wells Fargo Equity Gateway Funds Financial highlights

Small Company Growth Fund	Beginning net asset value per share		Net investment loss			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	44.23		(0.22	)4		(6.05	)		0.00			(0.27	)	$	37.69
Year ended May 31, 2015	$	39.44		(0.37	)4		7.08			0.00			(1.92	)	$	44.23
Year ended May 31, 2014	$	34.23		(0.37	)4		7.98			0.00			(2.40	)	$	39.44
Year ended May 31, 2013	$	26.21		(0.15	)		8.17			0.00			0.00		$	34.23
Year ended May 31, 2012	$	29.53		(0.18	)4		(3.14	)		0.00			0.00		$	26.21
Class B
Year ended May 31, 2016	$	39.74		(0.50	)4		(5.38	)		0.00			(0.27	)	$	33.59
Year ended May 31, 2015	$	35.88		(0.62	)4		6.40			0.00			(1.92	)	$	39.74
Year ended May 31, 2014	$	31.55		(0.60	)4		7.33			0.00			(2.40	)	$	35.88
Year ended May 31, 2013	$	24.35		(0.36	)4		7.56			0.00			0.00		$	31.55
Year ended May 31, 2012	$	27.63		(0.37	)4		(2.91	)		0.00			0.00		$	24.35
Class C
Year ended May 31, 2016	$	40.25		(0.46	)4		(5.50	)		0.00			(0.27	)	$	34.02
Year ended May 31, 2015	$	36.32		(0.63	)4		6.48			0.00			(1.92	)	$	40.25
Year ended May 31, 2014	$	31.91		(0.62	)4		7.43			0.00			(2.40	)	$	36.32
Year ended May 31, 2013	$	24.62		(0.37	)4		7.66			0.00			0.00		$	31.91
Year ended May 31, 2012	$	27.95		(0.36	)4		(2.97	)		0.00			0.00		$	24.62
Class R6
Year ended May 31, 2016	$	46.45		(0.03	)		(6.38	)		0.00			(0.27	)	$	39.77
Year ended May 31, 20155	$	42.98		(0.09	)4		5.48			0.00			(1.92	)	$	46.45
Administrator Class
Year ended May 31, 2016	$	45.73		(0.19	)4		(6.22	)		0.00			(0.27	)	$	39.05
Year ended May 31, 2015	$	40.64		(0.30	)4		7.31			0.00			(1.92	)	$	45.73
Year ended May 31, 2014	$	35.13		(0.26	)		8.17			0.00			(2.40	)	$	40.64
Year ended May 31, 2013	$	26.90		(0.09	)4		8.38			(0.06	)		0.00		$	35.13
Year ended May 31, 2012	$	30.22		(0.13	)4		(3.19	)		0.00			0.00		$	26.90
Institutional Class
Year ended May 31, 2016	$	46.44		(0.09	)		(6.33	)		0.00			(0.27	)	$	39.75
Year ended May 31, 2015	$	41.14		(0.20	)4		7.42			0.00			(1.92	)	$	46.44
Year ended May 31, 2014	$	35.46		(0.20	)4		8.28			0.00			(2.40	)	$	41.14
Year ended May 31, 2013	$	27.15		(0.06	)4		8.51			(0.14	)		0.00		$	35.46
Year ended May 31, 2012	$	30.44		(0.07	)4		(3.22	)		0.00			0.00		$	27.15

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

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 is calculated by multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

⁵  For the period from October 31, 2014 (commencement of class operations) to May 31, 2015

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

Financial highlights Wells Fargo Equity Gateway Funds 63

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	(0.57	)%		1.34	%		1.34	%		(14.20	)%		49	%	$	128,675
	(0.90	)%		1.41	%		1.40	%		17.51	%		58	%	$	85,588
	(0.96	)%		1.45	%		1.41	%		22.63	%		77	%	$	30,364
	(0.58	)%		1.53	%		1.45	%		30.55	%		109	%	$	9,357
	(0.70	)%		1.46	%		1.44	%		(11.18	)%		107	%	$	6,450
	(1.38	)%		2.08	%		2.08	%		(14.83	)%		49	%	$	17
	(1.65	)%		2.15	%		2.15	%		16.63	%		58	%	$	76
	(1.71	)%		2.20	%		2.16	%		21.74	%		77	%	$	101
	(1.33	)%		2.28	%		2.20	%		29.57	%		109	%	$	164
	(1.48	)%		2.21	%		2.19	%		(11.87	)%		107	%	$	193
	(1.32	)%		2.09	%		2.09	%		(14.84	)%		49	%	$	26,946
	(1.64	)%		2.16	%		2.15	%		16.62	%		58	%	$	17,334
	(1.71	)%		2.20	%		2.16	%		21.75	%		77	%	$	6,546
	(1.31	)%		2.28	%		2.20	%		29.56	%		109	%	$	2,406
	(1.45	)%		2.22	%		2.19	%		(11.85	)%		107	%	$	1,628
	(0.09	)%		0.91	%		0.90	%		(13.83	)%		49	%	$	229,391
	(0.34	)%		0.91	%		0.90	%		13.00	%		58	%	$	644
	(0.46	)%		1.25	%		1.20	%		(14.04	)%		49	%	$	130,104
	(0.70	)%		1.24	%		1.20	%		17.73	%		58	%	$	185,267
	(0.74	)%		1.29	%		1.20	%		22.92	%		77	%	$	118,456
	(0.30	)%		1.37	%		1.20	%		30.89	%		109	%	$	98,445
	(0.48	)%		1.30	%		1.20	%		(10.99	)%		107	%	$	97,776
	(0.18	)%		1.01	%		0.95	%		(13.85	)%		49	%	$	678,699
	(0.45	)%		0.98	%		0.95	%		18.03	%		58	%	$	457,542
	(0.49	)%		1.02	%		0.95	%		23.19	%		77	%	$	186,581
	(0.19	)%		1.10	%		0.95	%		31.25	%		109	%	$	71,336
	(0.27	)%		1.03	%		0.95	%		(10.78	)%		107	%	$	9,692

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

64 Wells Fargo Equity Gateway Funds Financial highlights

Small Company Value Fund	Beginning net asset value per share		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 2016	$	21.42		0.08			(1.25	)		(0.03	)	$	20.22
Year ended May 31, 2015	$	20.08		0.07			1.27			0.00		$	21.42
Year ended May 31, 2014	$	17.10		0.06			2.92			0.00		$	20.08
Year ended May 31, 2013	$	13.17		(0.00	)4		3.93			0.00		$	17.10
Year ended May 31, 2012	$	14.36		0.03			(1.11	)		(0.11	)	$	13.17
Class C
Year ended May 31, 2016	$	19.34		(0.11	)5		(1.08	)		0.00		$	18.15
Year ended May 31, 2015	$	18.27		(0.08	)5		1.15			0.00		$	19.34
Year ended May 31, 2014	$	15.68		(0.07	)5		2.66			0.00		$	18.27
Year ended May 31, 2013	$	12.16		(0.10	)5		3.62			0.00		$	15.68
Year ended May 31, 2012	$	13.30		(0.08	)5		(1.02	)		(0.04	)	$	12.16
Administrator Class
Year ended May 31, 2016	$	21.90		0.13			(1.30	)		(0.07	)	$	20.66
Year ended May 31, 2015	$	20.49		0.11			1.30			0.00		$	21.90
Year ended May 31, 2014	$	17.42		0.12			2.95			0.00		$	20.49
Year ended May 31, 2013	$	13.39		0.03	5		4.01			(0.01	)	$	17.42
Year ended May 31, 2012	$	14.60		0.06			(1.13	)		(0.14	)	$	13.39
Institutional Class
Year ended May 31, 2016	$	22.02		0.08	5		(1.22	)		(0.11	)	$	20.77
Year ended May 31, 2015	$	20.57		0.14			1.31			0.00		$	22.02
Year ended May 31, 2014	$	17.45		0.13			2.99			0.00		$	20.57
Year ended May 31, 2013	$	13.41		0.06	5		4.03			(0.05	)	$	17.45
Year ended May 31, 2012	$	14.63		0.11			(1.17	)		(0.16	)	$	13.41

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Amount is less than $0.005.

⁵  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Equity Gateway Funds 65

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income (loss)			Gross expenses1			Net expenses1
	0.11	%		1.48	%		1.37	%		(5.48	)%		72	%	$	23,151
	0.33	%		1.50	%		1.40	%		6.62	%		54	%	$	26,339
	0.33	%		1.56	%		1.42	%		17.43	%		47	%	$	26,517
	(0.02	)%		1.57	%		1.45	%		29.84	%		57	%	$	21,652
	0.08	%		1.50	%		1.45	%		(7.44	)%		60	%	$	18,605
	(0.62	)%		2.23	%		2.12	%		(6.20	)%		72	%	$	2,004
	(0.42	)%		2.26	%		2.15	%		5.86	%		54	%	$	2,602
	(0.42	)%		2.31	%		2.17	%		16.52	%		47	%	$	2,192
	(0.76	)%		2.32	%		2.20	%		28.95	%		57	%	$	1,814
	(0.68	)%		2.25	%		2.20	%		(8.20	)%		60	%	$	1,557
	0.28	%		1.39	%		1.20	%		(5.36	)%		72	%	$	64,023
	0.52	%		1.34	%		1.20	%		6.88	%		54	%	$	71,034
	0.55	%		1.39	%		1.20	%		17.62	%		47	%	$	68,358
	0.23	%		1.40	%		1.20	%		30.21	%		57	%	$	60,550
	0.32	%		1.33	%		1.20	%		(7.24	)%		60	%	$	60,333
	0.40	%		1.14	%		1.00	%		(5.13	)%		72	%	$	31,768
	0.75	%		1.07	%		1.00	%		7.05	%		54	%	$	16,850
	0.75	%		1.13	%		1.00	%		17.88	%		47	%	$	11,967
	0.40	%		1.14	%		1.00	%		30.54	%		57	%	$	8,185
	0.59	%		1.05	%		1.00	%		(7.14	)%		60	%	$	62

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

66 Wells Fargo Equity Gateway Funds Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the following funds: Wells Fargo C&B Large Cap Value Fund (“C&B Large Cap Value Fund”), Wells Fargo Diversified Equity Fund (“Diversified Equity Fund“), Wells Fargo Emerging Growth Fund (“Emerging Growth Fund”), Wells Fargo Index Fund (“Index Fund”), Wells Fargo International Value Fund (“International Value Fund”), Wells Fargo Small Company Growth Fund (“Small Company Growth Fund”), and Wells Fargo Small Company Value Fund (“Small Company Value Fund”) (each, a “Fund”, collectively, the “Funds”). Each Fund is a diversified series of the Trust.

After the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class in the applicable Funds 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 applicable Funds.

Each Fund seeks to achieve its investment objective by investing all investable assets in separate diversified portfolios (each, an “affiliated Master Portfolio”, collectively, the “affiliated Master Portfolios”) of Wells Fargo Master Trust, a registered open-end management investment company. Each affiliated Master Portfolio directly acquires portfolio securities, and a Fund investing in an affiliated Master Portfolio acquires an indirect interest in those securities. Each Fund accounts for its investment in the affiliated Master Portfolios as partnership investments and records on a daily basis its share of the affiliated Master Portfolio’s income, expense and realized and unrealized gains and losses. The financial statements of the affiliated Master Portfolios for the year ended May 31, 2016 are included in this report and should be read in conjunction with each Fund’s financial statements. As of May 31, 2016, the Funds own the following percentages of the affiliated Master Portfolios:

C&B Large Cap Value Fund

Diversified Equity Fund

Emerging Growth Fund

Index Fund

International Value Fund

Small Company Growth Fund

Small Company Value Fund

Wells Fargo C&B Large Cap Value Portfolio

86

%

6

%

N/A

N/A

N/A

N/A

N/A

Wells Fargo Diversified Large Cap Growth Portfolio

N/A

46

%

N/A

N/A

N/A

N/A

N/A

Wells Fargo Emerging Growth Portfolio

N/A

1

%

91

%

N/A

N/A

N/A

N/A

Wells Fargo Index Portfolio

N/A

2

%

N/A

95

%

N/A

N/A

N/A

Wells Fargo International Growth Portfolio

N/A

11

%

N/A

N/A

N/A

N/A

N/A

Wells Fargo International Value Portfolio

N/A

3

%

N/A

N/A

93

%

N/A

N/A

Wells Fargo Large Company Value Portfolio

N/A

45

%

N/A

N/A

N/A

N/A

N/A

Wells Fargo Small Company Growth Portfolio

N/A

0

%*

N/A

N/A

N/A

99

%

N/A

Wells Fargo Small Company Value Portfolio

N/A

5

%

N/A

N/A

N/A

N/A

56

%

* The amount owned is less than 1%.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each 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.

Notes to financial statements Wells Fargo Equity Gateway Funds 67

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), although a Fund may deviate from this calculation time under unusual or unexpected circumstances.

Investments in the affiliated Master Portfolios are valued daily based on each Fund’s proportionate share of each affiliated Master Portfolio’s net assets, which are also valued daily. Securities held in the affiliated Master Portfolios are valued as discussed in the Notes to Financial Statements of the affiliated Master Portfolios, which are included elsewhere in this report.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis in each affiliated Master Portfolio. Realized gains or losses in each affiliated Master Portfolio are recorded on the basis of identified cost.

Dividend income in each affiliated Master Portfolio 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 in each affiliated Master Portfolio 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 by each affiliated Master Portfolio. 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.

Each Fund records daily its proportionate share of each affiliated Master Portfolio’s interest and dividend income and realized and unrealized gains or losses.

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

Each Fund is treated as a separate entity for federal income tax purposes. Each 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.

Each 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 each Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to each Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At May 31, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statements of Assets and Liabilities:

	Paid-in capital			Undistributed (accumulated) net investment income (loss)			Accumulated net realized gains (losses) on investments
C&B Large Cap Value Fund	$	186,439		$	(203,081	)	$	16,642
Diversified Equity Fund		273,389			(198,293	)		(75,096	)
Emerging Growth Fund		(8,081,671	)		8,038,434			43,237
Index Fund		0			(1,408,012	)		1,408,012
International Value Fund		0			(615,063	)		615,063
Small Company Growth Fund		7,479,778			3,290,843			(10,770,621	)
Small Company Value Fund		(43,798	)		10,609			33,189

68 Wells Fargo Equity Gateway Funds Notes to financial statements

At May 31, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

	2017		2018		2019		No expiration
							Short-term		Long-term
International Value Fund	$	0	$	31,783,032	$	4,561,591	$	0	$	19,415
Small Company Growth Fund		546,818		0		0		58,698,280		28,260,757
Small Company Value Fund		0		75,262,378		0		0		0

At May 31, 2016, current year deferred post-October capital losses and late-year ordinary losses, which will be recognized on the first day of the following fiscal year were as follows:

	Deferred post-October capital  losses		Late-year ordinary losses deferred
Emerging Growth Fund	$	11,871,337	$	1,370,106
International Value Fund		779,929		0
Small Company Growth Fund		0		615,614
Small Company Value Fund		614,168		0

Class allocations

The separate classes of shares offered by each 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

At May 31, 2016, each affiliated Master Portfolio of each Fund was measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. The aggregate value of affiliated Master Portfolio(s) of each Fund was as follows:

	Aggregate value of affiliated Master Portfolio(s)
C&B Large Cap Value Fund	$	252,625,889
Diversified Equity Fund		211,533,274
Emerging Growth Fund		815,110,887
Index Fund		2,224,794,535
International Value Fund		473,721,935
Small Company Growth Fund		1,183,630,838
Small Company Value Fund		121,259,745

The investment objective of each affiliated Master Portfolio is as follows:

Affiliated Master Portfolio	Investment objective
Wells Fargo C&B Large Cap Value Portfolio	Seeks maximum long-term total return (current income and capital appreciation), consistent with minimizing risk to principal
Wells Fargo Diversified Large Cap Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Emerging Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Index Portfolio	Seeks to replicate the total return of the S&P 500 Index, before expenses
Wells Fargo International Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo International Value Portfolio	Seeks long-term capital appreciation
Wells Fargo Large Company Value Portfolio	Seeks long-term capital appreciation
Wells Fargo Small Company Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Small Company Value Portfolio	Seeks long-term capital appreciation

Notes to financial statements Wells Fargo Equity Gateway Funds 69

Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Wells Fargo Funds Management, LLC (“Funds Management”), an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of each Fund. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of each Fund, supervising the applicable subadviser(s), providing fund-level administrative services in connection with each Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of each Fund. For each Fund that continues to invest substantially all of its assets in a single affiliated Master Portfolio, each Fund pays Funds Management an investment management fee only for fund-level administrative services at an annual rate starting at 0.05% and declining to 0.03% as the average daily net assets of each Fund increase. For Diversified Equity Fund which invests in multiple affiliated Master Portfolios, Funds Management receives a management fee for providing advisory and fund-level administrative services, including the determination of the asset allocations of its investments in the various affiliated Master Portfolios, at an annual rate starting at 0.30% and declining to 0.22% as the average daily net assets of Diversified Equity Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement for Diversified Equity Fund at an annual rate which started at 0.25% and declined to 0.19% as the average daily net assets of Diversified Equity Fund increased. For each Fund that invested all of its assets in a single affiliated Master Portfolio prior to July 1, 2015, Funds Management did not receive an advisory fee. Fund-level administrative services were provided to each Fund by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of each Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended May 31, 2016 have been included in management fee on the Statements of Operations.

For the year ended May 31, 2016, the management fee was equivalent to an annual rate for each Fund as follows:

	Management fee
C&B Large Cap Value Fund		0.05	%
Diversified Equity Fund		0.30
Emerging Growth Fund		0.05
Index Fund		0.05
International Value Fund		0.05
Small Company Growth Fund		0.05
Small Company Value Fund		0.05

Funds Management also serves as the adviser to each affiliated Master Portfolio and is entitled to receive a fee from each affiliated Master Portfolio for those services.

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
	Current rate			Rate prior to July 1, 2015
Class A, Class B, Class C		0.21	%		0.26	%
Class R6		0.03			0.03
Administrator Class		0.13			0.10
Institutional Class		0.13			0.08
Investor Class		0.32			0.32

70 Wells Fargo Equity Gateway Funds Notes to financial statements

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 Funds. 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 to waive fees and/or reimburse expenses to the extent necessary to cap each Fund’s expenses as follows:

	Expiration date	Class A			Class B			Class C			Class R6			Administrator Class			Institutional Class
C&B Large Cap Value Fund	September 30, 2016		1.15	%		1.90	%		1.90	%		N/A			1.00	%		0.80	%
Diversified Equity Fund	September 30, 2016		1.25			2.00			2.00			N/A			1.00			N/A
Emerging Growth Fund	September 30, 2016		1.35			N/A			2.10			N/A			1.20			0.90
Index Fund	September 30, 2017		0.45			1.20			1.20			N/A			0.25	*		N/A
International Value Fund	September 30, 2016		1.35			N/A			2.10			N/A			1.25			1.00
Small Company Growth Fund	September 30, 2016		1.35			2.10			2.10			0.90	%		1.20			0.95
Small Company Value Fund	September 30, 2016		1.35			N/A			2.10			N/A			1.20			1.00

* The expiration date for Administrator Class is September 30, 2016.

Net expenses from affiliated Master Portfolio(s) are included in the expense caps. After the expiration date, each expense 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 the following dates, the expense caps for the following Funds and classes were as follows:

		Class A			Class B			Class C			Class R6			Administrator Class			Institutional Class
C&B Large Cap Value Fund	September 30, 2015		1.15	%		1.90	%		1.90	%		N/A			0.95	%		0.70	%
Diversified Equity Fund	September 30, 2015		1.25			2.00			2.00			N/A			1.00			N/A
Emerging Growth Fund	September 30, 2015		1.37			N/A			2.12			N/A			1.20			0.90
Index Fund	October 23, 2015		0.56			1.31			1.31			N/A			0.25			N/A
International Value Fund	September 30, 2015		1.50			N/A			2.25			N/A			1.25			1.05
Small Company Growth Fund	June 30, 2015		1.40			2.15			2.15			0.90	%		1.20			0.95
Small Company Value Fund	September 30, 2015		1.40			N/A			2.15			N/A			1.20			1.00

Distribution fees

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended May 31, 2016, Funds Distributor received the following amounts in front-end sales charges and contingent deferred sales charges.

	Front-end sales charges Class A		Contingent deferred sales charges
			Class A		Class B		Class C
C&B Large Cap Value Fund	$	2,353	$	0	$	0	$	111
Diversified Equity Fund		9,359		275		0		15
Emerging Growth Fund		1,228		56		N/A		0
Index Fund		14,224		0		210		11
International Value Fund		2,315		0		0		0
Small Company Growth Fund		41,207		12		0		1,646
Small Company Value Fund		942		0		0		0

Notes to financial statements Wells Fargo Equity Gateway Funds 71

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 each applicable Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. Administrator Class of the Index Fund is charged a fee at an annual rate of 0.10% of its average daily net assets.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. Government obligations (if any) and short-term securities, for the year ended May 31, 2016 were as follows:

	Purchases at cost*		Sales proceeds*
C&B Large Cap Value Fund	$	73,454,611	$	99,134,099
Diversified Equity Fund		86,215,468		91,540,365
Emerging Growth Fund		585,381,308		663,808,069
Index Fund		97,014,368		404,684,450
International Value Fund		109,004,384		61,729,014
Small Company Growth Fund		1,097,951,016		475,538,571
Small Company Value Fund		91,413,407		81,216,140

* The Funds seek to achieve their investment objective by investing some or all of their investable assets in affiliated Master Portfolios. Purchases and sales related to these investments have been calculated by aggregating the results of multiplying each Fund’s ownership percentage of the respective affiliated Master Portfolio by the corresponding affiliated Master Portfolio’s purchases and sales.

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 Funds are 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 each 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 Funds, except Diversified Equity Fund, were are parties to a $150,000,000 revolving credit agreement. Diversified Equity Fund and certain other funds in the Trust were parties to a $25,000,000 revolving credit agreement. Interest under each credit agreement was charged to each 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, the applicable Funds paid an annual commitment fee equal to 0.10% under the $150,000,000 credit agreement and an annual commitment fee equal to 0.15% under the $25,000,000 credit agreement. The annual commitment fee applied on the unused balance for each credit agreement was allocated to each participating fund.

During the year ended May 31, 2016, Index Fund had average borrowings outstanding of $36,691 at an average rate of 1.39% and paid interest in the amount of $510.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended May 31, 2016 and May 31, 2015 were as follows:

	Ordinary income				Long-term capital gain
	2016		2015		2016		2015
C&B Large Cap Value Fund	$	2,808,799	$	2,705,060	$	8,527,222	$	0
Diversified Equity Fund		1,825,620		7,274,890		25,311,654		22,085,629
Emerging Growth Fund		0		10,973,787		101,711,376		63,398,565
Index Fund		45,151,660		51,868,400		140,953,431		24,603,892
International Value Fund		8,674,487		12,049,863		0		0
Small Company Growth Fund		0		1,846,056		7,354,882		18,657,537
Small Company Value Fund		431,180		0		0		0

72 Wells Fargo Equity Gateway Funds Notes to financial statements

As of May 31, 2016, the components of distributable earnings on a tax basis were as follows:

	Undistributed ordinary income		Undistributed long-term gain		Unrealized gains (losses)			Late-year ordinary losses deferred			Post-October capital losses deferred			Capital loss carryforward
C&B Large Cap Value Fund	$	910,811	$	808,040	$	51,201,096		$	0		$	0		$	0
Diversified Equity Fund		1,185,879		5,183,471		37,672,053			0			0			0
Emerging Growth Fund		0		0		157,867,105			(1,370,106	)		(11,871,337	)		0
Index Fund		16,678,396		85,622,413		1,307,500,481			0			0			0
International Value Fund		7,661,901		0		(54,118,422	)		0			(779,929	)		(36,364,038	)
Small Company Growth Fund		0		0		13,598,131			(615,614	)		0			(87,505,855	)
Small Company Value Fund		291,961		0		4,382,385			0			(614,168	)		(75,262,378	)

8. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. Through their investments in affiliated Master Portfolio(s), Funds that invest a substantial portion of their assets in a sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Equity Gateway Funds 73

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wells Fargo C&B Large Cap Value Fund, Wells Fargo Diversified Equity Fund, Wells Fargo Emerging Growth Fund, Wells Fargo Index Fund, Wells Fargo International Value Fund, Wells Fargo Small Company Growth Fund, and Wells Fargo Small Company Value Fund (formerly known as Wells Fargo Advantage C&B Large Cap Value Fund, Wells Fargo Advantage Diversified Equity Fund, Wells Fargo Advantage Emerging Growth Fund, Wells Fargo Advantage Index Fund, Wells Fargo Advantage International Value Fund, Wells Fargo Advantage Small Company Growth Fund, and Wells Fargo Advantage Small Company Value Fund, respectively) (the “Funds”), seven of the funds constituting the Wells Fargo Funds Trust, as of May 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with the transfer agent or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned Funds of the Wells Fargo Funds Trust as of May 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

74 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

C&B LARGE CAP VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 95.04%
Consumer Discretionary: 13.41%
Hotels, Restaurants & Leisure: 3.02%
Brinker International Incorporated		78,307	$	3,521,466
Carnival Corporation		111,500		5,323,010
				8,844,476
Household Durables: 1.22%
Whirlpool Corporation		20,400		3,562,248
Media: 5.77%
Omnicom Group Incorporated		102,600		8,549,658
Twenty-First Century Fox Incorporated Class A		289,400		8,357,872
				16,907,530
Multiline Retail: 1.03%
Kohl’s Corporation		84,200		3,034,568
Textiles, Apparel & Luxury Goods: 2.37%
Gildan Activewear Incorporated		232,500		6,935,475
Consumer Staples: 6.52%
Beverages: 1.68%
Diageo plc ADR «		45,120		4,923,946
Household Products: 1.67%
The Procter & Gamble Company		60,390		4,894,006
Personal Products: 1.48%
Unilever NV ADR		96,500		4,319,340
Tobacco: 1.69%
Philip Morris International		50,300		4,963,604
Energy: 6.06%
Oil, Gas & Consumable Fuels: 6.06%
Chevron Corporation		30,900		3,120,900
Devon Energy Corporation		40,100		1,447,209
Exxon Mobil Corporation		82,000		7,299,640
Noble Energy Incorporated		19,870		710,353
World Fuel Services Corporation		112,700		5,180,819
				17,758,921
Financials: 26.02%
Banks: 8.11%
Bank of America Corporation		468,700		6,932,073
JPMorgan Chase & Company		143,470		9,364,287
PNC Financial Services Group Incorporated		83,000		7,448,420
				23,744,780

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 75

C&B LARGE CAP VALUE PORTFOLIO

Security name	Shares		Value
Capital Markets: 3.24%
State Street Corporation		150,600	$	9,496,836
Consumer Finance: 2.15%
American Express Company		95,700		6,293,232
Diversified Financial Services: 2.26%
Berkshire Hathaway Incorporated Class B †		47,200		6,633,488
Insurance: 10.26%
Chubb Limited		49,600		6,279,856
FNF Group		202,900		7,091,355
RenaissanceRe Holdings Limited		72,200		8,339,822
The Progressive Corporation		251,100		8,361,630
				30,072,663
Health Care: 15.08%
Health Care Equipment & Supplies: 4.06%
Abbott Laboratories		138,800		5,500,644
Becton Dickinson & Company		38,400		6,391,680
				11,892,324
Health Care Providers & Services: 8.59%
Cardinal Health Incorporated		85,740		6,769,173
Laboratory Corporation of America Holdings †		77,160		9,872,622
UnitedHealth Group Incorporated		63,690		8,513,442
				25,155,237
Pharmaceuticals: 2.43%
Johnson & Johnson		63,300		7,133,277
Industrials: 18.35%
Aerospace & Defense: 1.48%
Rockwell Collins Incorporated		49,100		4,340,440
Air Freight & Logistics: 2.34%
United Parcel Service Incorporated Class B		66,600		6,865,794
Electrical Equipment: 2.58%
Eaton Corporation plc		122,800		7,568,164
Industrial Conglomerates: 1.70%
3M Company		29,500		4,965,440
Machinery: 4.77%
Donaldson Company Incorporated		190,200		6,373,602
Parker-Hannifin Corporation		66,100		7,590,924
				13,964,526

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

76 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

C&B LARGE CAP VALUE PORTFOLIO

Security name				Shares		Value
Trading Companies & Distributors: 5.48%
AerCap Holdings NV †					196,700	$	7,689,003
W.W. Grainger Incorporated «					19,500		4,452,825
WESCO International Incorporated †«					67,200		3,919,776
							16,061,604
Information Technology: 4.81%
IT Services: 2.87%
Alliance Data Systems Corporation †					22,100		4,910,399
The Western Union Company					179,800		3,497,110
							8,407,509
Semiconductors & Semiconductor Equipment: 1.94%
Linear Technology Corporation					119,800		5,668,936
Materials: 4.79%
Chemicals: 1.07%
Axalta Coating Systems Limited †					111,500		3,138,725
Containers & Packaging: 3.72%
Ball Corporation					42,600		3,079,980
Crown Holdings Incorporated †					149,700		7,809,847
							10,889,827
Total Common Stocks (Cost $210,754,976)							278,436,916
	Yield
Short-Term Investments: 8.98%
Investment Companies: 8.98%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		12,454,900		12,454,900
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			13,862,559		13,862,559
Total Short-Term Investments (Cost $26,317,459)							26,317,459

Total investments in securities (Cost $237,072,435) *	104.02	%		304,754,375
Other assets and liabilities, net	(4.02	)		(11,790,086	)
Total net assets	100.00	%	$	292,964,289

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

† Non-income-earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $245,961,339 and unrealized gains (losses) consists of:

Gross unrealized gains	$	70,742,300
Gross unrealized losses		(11,949,264	)
Net unrealized gains	$	58,793,036

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 77

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 97.83%
Consumer Discretionary: 25.49%
Auto Components: 0.42%
Delphi Automotive plc		7,120	$	483,875
Distributors: 0.63%
LKQ Corporation †		21,990		727,209
Hotels, Restaurants & Leisure: 4.41%
Hilton Worldwide Holdings Incorporated		13,168		273,631
Marriott International Incorporated Class A «		8,000		528,320
McDonald’s Corporation		7,210		880,053
Starbucks Corporation		45,878		2,518,243
Yum! Brands Incorporated		11,080		909,557
				5,109,804
Internet & Catalog Retail: 5.12%
Amazon.com Incorporated †		6,810		4,922,200
Netflix Incorporated †		6,460		662,602
The Priceline Group Incorporated †		270		341,369
				5,926,171
Media: 1.04%
Charter Communications Incorporated Class A †		11		2,408
The Walt Disney Company		12,090		1,199,570
				1,201,978
Multiline Retail: 3.42%
Dollar General Corporation		16,210		1,457,279
Dollar Tree Incorporated †		27,690		2,507,053
				3,964,332
Specialty Retail: 7.49%
CarMax Incorporated Ǡ		17,730		951,392
O’Reilly Automotive Incorporated †		5,550		1,467,587
The Home Depot Incorporated		23,570		3,114,068
The TJX Companies Incorporated		18,600		1,415,832
Tractor Supply Company		15,550		1,494,355
ULTA Salon, Cosmetics and Fragrance Incorporated †		960		223,690
				8,666,924
Textiles, Apparel & Luxury Goods: 2.96%
Coach Incorporated		12,480		491,962
Nike Incorporated Class B		26,160		1,444,555
Under Armour Incorporated Class A «		11,690		441,064
Under Armour Incorporated Class C †		5,230		182,893
VF Corporation		13,840		862,509
				3,422,983

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

78 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Consumer Staples: 7.89%
Beverages: 3.15%
Constellation Brands Incorporated Class A		7,780	$	1,191,507
Dr Pepper Snapple Group Incorporated		11,210		1,024,594
Monster Beverage Corporation †		6,390		958,500
The Coca-Cola Company		10,670		475,882
				3,650,483
Food & Staples Retailing: 2.64%
Costco Wholesale Corporation		10,720		1,594,814
CVS Health Corporation		12,330		1,189,229
Sprouts Farmers Market Incorporated †		11,038		273,301
				3,057,344
Household Products: 0.44%
Colgate-Palmolive Company		7,190		506,248
Personal Products: 0.79%
The Estee Lauder Companies Incorporated Class A		9,910		909,540
Tobacco: 0.87%
Reynolds American Incorporated		20,360		1,011,892
Energy: 1.19%
Energy Equipment & Services: 0.21%
Schlumberger Limited		3,250		247,975
Oil, Gas & Consumable Fuels: 0.98%
Concho Resources Incorporated †		8,480		1,028,963
EOG Resources Incorporated		1,260		102,514
				1,131,477
Financials: 2.21%
Capital Markets: 0.68%
SEI Investments Company		350		18,011
TD Ameritrade Holding Corporation		23,610		771,339
				789,350
Diversified Financial Services: 1.28%
Intercontinental Exchange Incorporated		2,820		764,558
S&P Global Incorporated		6,370		712,230
				1,476,788
REITs: 0.25%
American Tower Corporation		2,770		293,011
Health Care: 14.23%
Biotechnology: 6.39%
Alexion Pharmaceuticals Incorporated †		16,270		2,455,143
Biogen Incorporated †		2,470		715,633

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 79

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Biotechnology (continued)
BioMarin Pharmaceutical Incorporated †		10,910	$	978,082
Celgene Corporation †		15,120		1,595,462
Incyte Corporation †		2,640		222,842
Regeneron Pharmaceuticals Incorporated †		2,390		953,443
Vertex Pharmaceuticals Incorporated †		5,190		483,449
				7,404,054
Health Care Equipment & Supplies: 2.04%
Intuitive Surgical Incorporated †		1,440		913,982
Medtronic plc		17,995		1,448,238
				2,362,220
Health Care Providers & Services: 1.30%
AmerisourceBergen Corporation		1,600		119,968
UnitedHealth Group Incorporated		10,350		1,383,485
				1,503,453
Health Care Technology: 0.84%
Cerner Corporation †		17,441		969,894
Life Sciences Tools & Services: 0.54%
Quintiles Transnational Holdings Incorporated †		9,264		628,933
Pharmaceuticals: 3.12%
Allergan plc †		142		33,477
Bristol-Myers Squibb Company		35,360		2,535,312
Novo Nordisk A/S ADR		9,650		540,786
Zoetis Incorporated		10,492		497,531
				3,607,106
Industrials: 6.73%
Aerospace & Defense: 0.71%
Honeywell International Incorporated		2,150		244,735
The Boeing Company		4,540		572,721
				817,456
Air Freight & Logistics: 0.35%
United Parcel Service Incorporated Class B		3,950		407,206
Airlines: 1.70%
Delta Air Lines Incorporated		14,950		649,727
Southwest Airlines Company		30,910		1,313,057
				1,962,784
Electrical Equipment: 0.17%
Rockwell Automation Incorporated		1,750		203,088
Industrial Conglomerates: 1.17%
3M Company		3,500		589,120

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

80 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name	Shares		Value
Industrial Conglomerates (continued)
Danaher Corporation		7,780	$	765,241
				1,354,361
Professional Services: 0.46%
Verisk Analytics Incorporated †		6,680		530,325
Road & Rail: 2.17%
Canadian Pacific Railway Limited		1,030		133,478
Kansas City Southern		9,460		880,726
Union Pacific Corporation		17,810		1,499,424
				2,513,628
Information Technology: 37.17%
Communications Equipment: 1.31%
Harris Corporation		9,390		739,650
Palo Alto Networks Incorporated †		5,940		774,932
				1,514,582
Internet Software & Services: 12.01%
Alphabet Incorporated Class A †		7,004		5,244,945
Alphabet Incorporated Class C †		2,984		2,195,388
Facebook Incorporated Class A †		48,180		5,724,266
Tencent Holdings Limited ADR		32,810		731,663
				13,896,262
IT Services: 8.90%
Accenture plc Class A		7,720		918,448
Alliance Data Systems Corporation †		1,370		304,400
Cognizant Technology Solutions Corporation Class A †		15,200		933,888
Fidelity National Information Services Incorporated		12,440		923,919
MasterCard Incorporated Class A		20,110		1,928,549
PayPal Holdings Incorporated †		42,670		1,612,499
Visa Incorporated Class A		46,630		3,680,972
				10,302,675
Semiconductors & Semiconductor Equipment: 3.82%
ARM Holdings plc ADR		298		12,844
Broadcom Limited		8,411		1,298,322
Microchip Technology Incorporated «		36,529		1,887,819
Texas Instruments Incorporated		20,220		1,225,332
				4,424,317
Software: 8.44%
Adobe Systems Incorporated †		18,800		1,870,036
Electronic Arts Incorporated †		10,590		812,783
Fortinet Incorporated †		17,780		608,254
Microsoft Corporation		34,800		1,844,400
Red Hat Incorporated †		9,000		697,140

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 81

DIVERSIFIED LARGE CAP GROWTH PORTFOLIO

Security name				Shares		Value
Software (continued)
Salesforce.com Incorporated †					22,154	$	1,854,511
ServiceNow Incorporated †					17,254		1,235,904
Splunk Incorporated †					13,100		752,595
Tableau Software Incorporated Class A †					1,930		99,279
							9,774,902
Technology Hardware, Storage & Peripherals: 2.69%
Apple Incorporated					31,227		3,118,328
Materials: 2.92%
Chemicals: 2.92%
Ecolab Incorporated					13,320		1,561,637
Praxair Incorporated					8,140		894,260
The Sherwin-Williams Company					3,170		922,752
							3,378,649
Total Common Stocks (Cost $76,805,738)							113,251,607
						��
	Yield
Short-Term Investments: 4.52%
Investment Companies: 4.52%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		3,113,406		3,113,406
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			2,118,196		2,118,196
Total Short-Term Investments (Cost $5,231,602)							5,231,602

Total investments in securities (Cost $82,037,340) *	102.35	%		118,483,209
Other assets and liabilities, net	(2.35	)		(2,724,733	)
Total net assets	100.00	%	$	115,758,476

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $82,417,127 and unrealized gains (losses) consists of:

Gross unrealized gains	$	37,113,069
Gross unrealized losses		(1,046,987	)
Net unrealized gains	$	36,066,082

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

82 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

EMERGING GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 98.14%
Consumer Discretionary: 12.15%
Auto Components: 1.67%
Gentherm Incorporated †		90,670	$	3,316,709
Motorcar Parts of America Incorporated †		389,542		11,670,678
				14,987,387
Diversified Consumer Services: 0.93%
Grand Canyon Education Incorporated †		200,830		8,386,661
Hotels, Restaurants & Leisure: 3.79%
Fiesta Restaurant Group Incorporated †		100,565		2,527,198
Jack in the Box Incorporated		58,340		4,970,568
Planet Fitness Incorporated Class A Ǡ		233,881		4,177,115
The Habit Restaurants Incorporated Class A Ǡ		636,258		11,382,656
Wingstop Incorporated Ǡ		269,058		7,506,718
Zoe’s Kitchen Incorporated «†		93,210		3,441,313
				34,005,568
Household Durables: 0.33%
Universal Electronics Incorporated †		45,300		2,941,329
Leisure Products: 0.48%
MCBC Holdings Incorporated †		279,012		4,291,205
Media: 1.31%
IMAX Corporation †		352,460		11,751,016
Specialty Retail: 2.67%
Five Below Incorporated †		76,207		3,190,025
Lithia Motors Incorporated Class A		132,820		10,936,399
Monro Muffler Brake Incorporated		41,437		2,608,459
Sportsman’s Warehouse Holdings Incorporated †		843,623		7,288,903
				24,023,786
Textiles, Apparel & Luxury Goods: 0.97%
G-III Apparel Group Limited †		223,680		8,750,362
Energy: 2.84%
Oil, Gas & Consumable Fuels: 2.84%
Matador Resources Company †		211,056		4,795,192
PDC Energy Incorporated †		145,970		8,473,559
RSP Permian Incorporated †		372,758		12,274,921
				25,543,672
Financials: 5.35%
Capital Markets: 0.30%
Financial Engines Incorporated «		97,090		2,683,568

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 83

EMERGING GROWTH PORTFOLIO

Security name	Shares		Value
Diversified Financial Services: 3.61%
MarketAxess Holdings Incorporated		232,241	$	32,499,806
Thrifts & Mortgage Finance: 1.44%
LendingTree Incorporated Ǡ		155,312		12,929,724
Health Care: 32.24%
Biotechnology: 4.62%
Alder Biopharmaceuticals Incorporated †		109,100		3,280,637
Ligand Pharmaceuticals Incorporated Ǡ		151,180		18,079,616
Radius Health Incorporated Ǡ		138,345		5,016,390
Repligen Corporation †		345,720		8,283,451
Ultragenyx Pharmaceutical Incorporated †		93,134		6,808,095
				41,468,189
Health Care Equipment & Supplies: 14.19%
Abiomed Incorporated †		99,730		9,904,186
Cerus Corporation Ǡ		765,578		4,256,614
Cynosure Incorporated Class A †		350,398		16,738,512
Entellus Medical Incorporated Ǡ		285,455		5,121,063
Glaukos Corporation †		291,082		7,087,847
Inogen Incorporated †		289,670		13,828,846
Integra LifeSciences Holdings Corporation		36,100		2,697,031
Natus Medical Incorporated †		229,400		7,416,502
Nevro Corporation Ǡ		247,965		17,288,120
NxStage Medical Incorporated †		931,950		17,613,855
The Spectranetics Corporation †		885,169		16,216,296
Zeltiq Aesthetics Incorporated Ǡ		328,200		9,340,572
				127,509,444
Health Care Providers & Services: 9.55%
AAC Holdings Incorporated Ǡ		141,639		3,046,655
Acadia Healthcare Company Incorporated †		523,230		30,802,550
Adeptus Health Incorporated Class A Ǡ		79,987		5,719,071
Diplomat Pharmacy Incorporated Ǡ		285,406		9,298,527
ExamWorks Group Incorporated †		482,658		16,849,591
HealthEquity Incorporated †		602,042		15,538,704
Teladoc Incorporated Ǡ		401,259		4,586,390
				85,841,488
Health Care Technology: 0.80%
Veeva Systems Incorporated Class A †		217,920		7,180,464
Life Sciences Tools & Services: 1.99%
ICON plc ADR †		107,780		7,592,023
INC Research Holdings Incorporated Class A †		235,945		10,265,967
				17,857,990
Pharmaceuticals: 1.09%
Intersect ENT Incorporated †		117,220		1,539,099

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

84 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

EMERGING GROWTH PORTFOLIO

Security name	Shares		Value
Pharmaceuticals (continued)
Pacira Pharmaceuticals Incorporated Ǡ		177,990	$	8,278,315
				9,817,414
Industrials: 11.52%
Aerospace & Defense: 0.62%
HEICO Corporation		83,300		5,543,615
Airlines: 0.63%
SkyWest Incorporated		241,600		5,701,760
Building Products: 0.98%
Apogee Enterprises Incorporated		194,950		8,815,639
Commercial Services & Supplies: 0.82%
G&K Services Incorporated Class A		49,560		3,715,018
Multi-Color Corporation		59,400		3,703,590
				7,418,608
Construction & Engineering: 1.39%
Dycom Industries Incorporated †		125,470		10,651,148
Granite Construction Incorporated		42,200		1,811,646
				12,462,794
Machinery: 2.36%
John Bean Technologies Corporation		154,160		9,354,429
Milacron Holdings Corporation Ǡ		454,708		7,457,211
Mueller Water Products Incorporated Class A		397,700		4,378,677
				21,190,317
Professional Services: 4.72%
CEB Incorporated		62,476		3,983,470
On Assignment Incorporated †		510,813		19,242,326
Wageworks Incorporated †		341,866		19,161,589
				42,387,385
Information Technology: 34.04%
Communications Equipment: 0.77%
Infinera Corporation †		528,153		6,924,086
Internet Software & Services: 11.18%
2U Incorporated Ǡ		208,810		5,813,270
Demandware Incorporated †		216,450		10,387,436
Envestnet Incorporated †		607,642		20,532,223
LogMeIn Incorporated †		136,600		8,369,482
Q2 Holdings Incorporated †		794,743		19,852,680
SPS Commerce Incorporated †		446,298		24,323,241
Stamps.com Incorporated †		61,150		5,564,039
Xactly Corporation †		569,901		5,619,224
				100,461,595

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 85

EMERGING GROWTH PORTFOLIO

Security name				Shares		Value
IT Services: 3.02%
InterXion Holding NV †					635,870	$	23,819,690
Maximus Incorporated					56,560		3,260,684
							27,080,374
Semiconductors & Semiconductor Equipment: 2.48%
Cavium Incorporated †					117,580		5,849,605
Microsemi Corporation †					232,060		7,850,590
Monolithic Power Systems Incorporated					126,090		8,615,730
							22,315,925
Software: 16.59%
Callidus Software Incorporated †					730,162		13,551,802
CommVault Systems Incorporated †					80,300		3,635,984
CyberArk Software Limited Ǡ					234,750		10,662,345
Fleetmatics Group plc †					253,480		10,367,332
Guidewire Software Incorporated †					71,181		4,178,325
HubSpot Incorporated †					236,266		11,284,064
Paycom Software Incorporated †					386,950		15,648,258
Paylocity Holding Corporation †					211,353		7,758,769
Proofpoint Incorporated †					564,560		33,094,507
Qlik Technologies Incorporated †					425,270		12,205,249
Rapid7 Incorporated Ǡ					256,669		3,298,197
Ringcentral Incorporated Class A †					524,240		10,348,498
Synchronoss Technologies Incorporated †					241,051		8,501,869
Tyler Technologies Incorporated †					29,335		4,496,762
							149,031,961
Total Common Stocks (Cost $694,969,727)							881,803,132
	Yield
Short-Term Investments: 12.00%
Investment Companies: 12.00%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		92,823,723		92,823,723
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			14,978,235		14,978,235
Total Short-Term Investments (Cost $107,801,958)							107,801,958

Total investments in securities (Cost $802,771,685) *	110.14	%		989,605,090
Other assets and liabilities, net	(10.14	)		(91,117,425	)
Total net assets	100.00	%	$	898,487,665

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $810,183,984 and unrealized gains (losses) consists of:

Gross unrealized gains	$	221,478,685
Gross unrealized losses		(42,057,579	)
Net unrealized gains	$	179,421,106

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

86 Wells Fargo Equity Gateway Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

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
Common Stocks: 98.62%
Consumer Discretionary: 12.38%
Auto Components: 0.34%
Other securities			$	7,886,248		0.34	%
Automobiles: 0.57%
Other securities				13,284,003		0.57
Distributors: 0.13%
Other securities				3,111,665		0.13
Diversified Consumer Services: 0.03%
Other securities				637,041		0.03
Hotels, Restaurants & Leisure: 1.73%
McDonald’s Corporation		113,965		13,910,568		0.59
Starbucks Corporation		186,834		10,255,318		0.44
Other securities				16,388,522		0.70
				40,554,408		1.73
Household Durables: 0.48%
Other securities				11,299,293		0.48
Internet & Catalog Retail: 2.20%
Amazon.com Incorporated †		48,803		35,274,320		1.51
Other securities				16,121,438		0.69
				51,395,758		2.20
Leisure Products: 0.11%
Other securities				2,609,363		0.11
Media: 2.76%
Comcast Corporation Class A		307,530		19,466,649		0.83
The Walt Disney Company		189,735		18,825,507		0.80
Other securities				26,322,549		1.13
				64,614,705		2.76
Multiline Retail: 0.60%
Other securities				14,012,634		0.60
Specialty Retail: 2.61%
The Home Depot Incorporated		160,262		21,173,815		0.90
Other securities				39,991,483		1.71
				61,165,298		2.61
Textiles, Apparel & Luxury Goods: 0.82%
Other securities				19,123,892		0.82

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 87

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Consumer Staples: 9.94%
Beverages: 2.24%
PepsiCo Incorporated		182,703	$	18,484,063		0.79	%
The Coca-Cola Company		492,530		21,966,838		0.94
Other securities				11,966,753		0.51
				52,417,654		2.24
Food & Staples Retailing: 2.27%
CVS Health Corporation		138,851		13,392,179		0.57
Wal-Mart Stores Incorporated		198,315		14,036,736		0.60
Other securities				25,639,454		1.10
				53,068,369		2.27
Food Products: 1.70%
Other securities				39,787,489		1.70
Household Products: 1.90%
The Procter & Gamble Company		335,289		27,171,821		1.16
Other securities				17,458,605		0.74
				44,630,426		1.90
Personal Products: 0.11%
Other securities				2,574,521		0.11
Tobacco: 1.72%
Altria Group Incorporated		247,486		15,750,009		0.67
Philip Morris International		195,840		19,325,491		0.83
Other securities				5,200,757		0.22
				40,276,257		1.72
Energy: 7.03%
Energy Equipment & Services: 1.04%
Schlumberger Limited		175,750		13,409,725		0.57
Other securities				10,958,290		0.47
				24,368,015		1.04
Oil, Gas & Consumable Fuels: 5.99%
Chevron Corporation		238,034		24,041,434		1.03
Exxon Mobil Corporation		524,916		46,728,022		2.00
Other securities				69,443,032		2.96
				140,212,488		5.99
Financials: 16.07%
Banks: 5.55%
Bank of America Corporation		1,305,178		19,303,583		0.82
Citigroup Incorporated		372,647		17,354,171		0.74
JPMorgan Chase & Company		463,928		30,280,581		1.29

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

88 Wells Fargo Equity Gateway Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Banks (continued)
Wells Fargo & Company (l)		583,952	$	29,618,045		1.27	%
Other securities				33,288,574		1.43
				129,844,954		5.55
Capital Markets: 1.93%
Other securities				45,232,634		1.93
Consumer Finance: 0.79%
Other securities				18,550,439		0.79
Diversified Financial Services: 2.10%
Berkshire Hathaway Incorporated Class B †		236,820		33,282,683		1.42
Other securities				15,844,996		0.68
				49,127,679		2.10
Insurance: 2.71%
Other securities				63,425,299		2.71
Real Estate Management & Development: 0.05%
Other securities				1,097,167		0.05
REITs: 2.94%
Other securities				68,932,148		2.94
Health Care: 14.50%
Biotechnology: 3.26%
AbbVie Incorporated		203,663		12,816,513		0.55
Amgen Incorporated		95,066		15,015,675		0.64
Celgene Corporation †		98,804		10,425,798		0.45
Gilead Sciences Incorporated		172,772		15,041,530		0.64
Other securities				23,038,465		0.98
				76,337,981		3.26
Health Care Equipment & Supplies: 2.34%
Medtronic plc		177,741		14,304,596		0.61
Other securities				40,350,847		1.73
				54,655,443		2.34
Health Care Providers & Services: 2.65%
UnitedHealth Group Incorporated		120,167		16,062,723		0.68
Other securities				46,048,368		1.97
				62,111,091		2.65
Health Care Technology: 0.09%
Other securities				2,127,138		0.09
Life Sciences Tools & Services: 0.61%
Other securities				14,366,808		0.61

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 89

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Pharmaceuticals: 5.55%
Allergan plc †		49,889	$	11,761,332		0.50	%
Bristol-Myers Squibb Company		211,023		15,130,349		0.65
Johnson & Johnson		348,788		39,304,920		1.68
Merck & Company Incorporated		350,798		19,735,895		0.84
Pfizer Incorporated		764,495		26,527,977		1.13
Other securities				17,309,257		0.75
				129,769,730		5.55
Industrials: 9.89%
Aerospace & Defense: 2.47%
Honeywell International Incorporated		97,244		11,069,285		0.47
The Boeing Company		78,717		9,930,150		0.42
Other securities				36,863,920		1.58
				57,863,355		2.47
Air Freight & Logistics: 0.72%
Other securities				16,813,712		0.72
Airlines: 0.56%
Other securities				13,101,665		0.56
Building Products: 0.09%
Other securities				2,199,357		0.09
Commercial Services & Supplies: 0.41%
Other securities				9,486,053		0.41
Construction & Engineering: 0.09%
Other securities				2,170,658		0.09
Electrical Equipment: 0.54%
Other securities				12,588,715		0.54
Industrial Conglomerates: 2.48%
3M Company		76,478		12,872,777		0.55
General Electric Company		1,179,405		35,653,413		1.52
Other securities				9,618,219		0.41
				58,144,409		2.48
Machinery: 1.27%
Other securities				29,656,290		1.27
Professional Services: 0.31%
Other securities				7,149,770		0.31
Road & Rail: 0.77%
Other securities				18,072,541		0.77

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

90 Wells Fargo Equity Gateway Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

Security name	Shares		Value		Percent of net assets
Trading Companies & Distributors: 0.18%
Other securities			$	4,118,945		0.18	%
Information Technology: 20.09%
Communications Equipment: 0.99%
Cisco Systems Incorporated		636,069		18,477,804		0.79
Other securities				4,629,500		0.20
				23,107,304		0.99
Electronic Equipment, Instruments & Components: 0.36%
Other securities				8,570,189		0.36
Internet Software & Services: 4.25%
Alphabet Incorporated Class A †		36,983		27,694,720		1.18
Alphabet Incorporated Class C †		37,562		27,635,115		1.18
Facebook Incorporated Class A †		290,084		34,464,880		1.47
Other securities				9,790,121		0.42
				99,584,836		4.25
IT Services: 3.77%
International Business Machines Corporation		111,740		17,178,908		0.73
MasterCard Incorporated Class A		123,941		11,885,942		0.51
Visa Incorporated Class A		242,581		19,149,344		0.82
Other securities				39,987,166		1.71
				88,201,360		3.77
Semiconductors & Semiconductor Equipment: 2.78%
Intel Corporation		597,122		18,863,084		0.81
QUALCOMM Incorporated		188,956		10,377,464		0.44
Other securities				35,787,470		1.53
				65,028,018		2.78
Software: 4.21%
Microsoft Corporation		999,750		52,986,750		2.26
Oracle Corporation		398,281		16,010,896		0.68
Other securities				29,566,155		1.27
				98,563,801		4.21
Technology Hardware, Storage & Peripherals: 3.73%
Apple Incorporated		700,845		69,986,382		2.99
Other securities				17,236,347		0.74
				87,222,729		3.73
Materials: 2.81%
Chemicals: 2.03%
Other securities				47,609,352		2.03

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 91

INDEX PORTFOLIO

Security name						Shares		Value		Percent of net assets
Construction Materials: 0.15%
Other securities								$	3,502,643		0.15	%
Containers & Packaging: 0.31%
Other securities									7,133,000		0.31
Metals & Mining: 0.32%
Other securities									7,411,248		0.32
Telecommunication Services: 2.62%
Diversified Telecommunication Services: 2.62%
AT&T Incorporated							777,524		30,440,065		1.30
Verizon Communications Incorporated							514,941		26,210,497		1.12
Other securities									4,598,802		0.20
									61,249,364		2.62
Utilities: 3.29%
Electric Utilities: 2.00%
Other securities									46,854,436		2.00
Gas Utilities: 0.04%
Other securities									1,001,279		0.04
Independent Power & Renewable Electricity Producers: 0.07%
Other securities									1,576,779		0.07
Multi-Utilities: 1.11%
Other securities									25,936,618		1.11
Water Utilities: 0.07%
Other securities									1,667,324		0.07
Total Common Stocks (Cost $1,106,723,098)									2,308,193,788		98.62
	Yield
Short-Term Investments: 1.69%
Investment Companies: 1.61%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%				12,693,253		12,693,253		0.54
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					24,960,298		24,960,298		1.07
									37,653,551		1.61
				Maturity date		Principal
U.S. Treasury Securities: 0.08%
U.S. Treasury Bill #(z)		0.12			6-9-2016	$	160,000		159,995		0.01
U.S. Treasury Bill #(z)		0.25			7-21-2016		255,000		254,911		0.01
U.S. Treasury Bill #(z)		0.29			8-18-2016		410,000		409,740		0.02
U.S. Treasury Bill #(z)		0.33			9-1-2016		183,000		182,841		0.01

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

92 Wells Fargo Equity Gateway Funds Summary portfolio of investments—May 31, 2016

INDEX PORTFOLIO

Security name	Yield			Maturity date		Principal		Value			Percent of net assets
U.S. Treasury Securities (continued)
U.S. Treasury Bill #(z)		0.37	%		10-6-2016	$	800,000	$	798,948			0.03	%
									1,806,435			0.08
Total Short-Term Investments (Cost $39,460,647)									39,459,986			1.69
Total investments in securities (Cost $1,146,183,745)*									2,347,653,774			100.31
Other assets and liabilities, net									(7,241,316	)		(0.31	)
Total net assets								$	2,340,412,458			100.00	%

† Non-income-earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

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

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

* Cost for federal income tax purposes is $1,208,116,279 and unrealized gains (losses) consists of:

Gross unrealized gains	$	1,232,363,587
Gross unrealized losses		(92,826,092	)
Net unrealized gains	$	1,139,537,495

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 93

INTERNATIONAL GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 90.91%
Belgium: 1.98%
Anheuser-Busch InBev NV (Consumer Staples, Beverages)		7,001	$	886,853
Telenet Group Holding NV (Consumer Discretionary, Media)†		22,809		1,085,943
UCB SA (Health Care, Pharmaceuticals)		13,359		965,410
				2,938,206
Canada: 1.52%
Canadian Pacific Railway Limited (Industrials, Road & Rail)		17,365		2,250,330
China: 1.71%
Baidu Incorporated ADR (Information Technology, Internet Software & Services)†		11,187		1,997,327
Tencent Holdings Limited (Information Technology, Internet Software & Services)		24,400		544,159
				2,541,486
Denmark: 0.26%
ISS A/S (Industrials, Commercial Services & Supplies)		9,457		381,268
France: 8.62%
Groupe Danone SA (Consumer Staples, Food Products)		55,591		3,901,709
L’Oreal SA (Consumer Staples, Personal Products)		8,570		1,610,531
LVMH Moet Hennessy Louis Vuitton SA (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		6,978		1,118,415
Orange SA (Telecommunication Services, Diversified Telecommunication Services)		97,060		1,686,324
Pernod-Ricard SA (Consumer Staples, Beverages)		13,944		1,519,054
Zodiac Aerospace SA (Industrials, Aerospace & Defense)		126,809		2,961,565
				12,797,598
Germany: 13.70%
Allianz AG (Financials, Insurance)		11,863		1,936,348
Bayer AG (Health Care, Pharmaceuticals)		33,356		3,178,034
Beiersdorf AG (Consumer Staples, Personal Products)		27,765		2,523,319
Deutsche Boerse AG (Financials, Diversified Financial Services)		47,920		4,198,808
Linde AG (Materials, Chemicals)		27,933		4,180,214
Vonovia SE (Financials, Real Estate Management & Development)		51,955		1,780,768
Wirecard AG (Information Technology, IT Services)«		56,945		2,531,860
				20,329,351
Hong Kong: 3.16%
AIA Group Limited (Financials, Insurance)		801,200		4,686,104
Ireland: 5.33%
Allegion plc (Industrials, Building Products)		2,032		137,444
Medtronic plc (Health Care, Health Care Equipment & Supplies)		96,515		7,767,527
				7,904,971
Japan: 12.80%
Japan Tobacco Incorporated (Consumer Staples, Tobacco)		137,154		5,452,223
KDDI Corporation (Telecommunication Services, Wireless Telecommunication Services)		53,700		1,569,756
NGK Insulators Limited (Industrials, Machinery)		93,000		2,048,377
Nippon Telegraph and Telephone Corporation (Telecommunication Services, Diversified Telecommunication Services)		31,500		1,381,067

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

94 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

INTERNATIONAL GROWTH PORTFOLIO

Security name	Shares		Value
Japan (continued)
NTT DOCOMO Incorporated (Telecommunication Services, Wireless Telecommunication Services)		140,893	$	3,535,844
Olympus Corporation (Health Care, Health Care Equipment & Supplies)		54,600		2,314,959
Ono Pharmaceutical Company Limited (Health Care, Pharmaceuticals)		22,600		1,004,943
Toyota Motor Corporation (Consumer Discretionary, Automobiles)		32,300		1,686,828
				18,993,997
Mexico: 0.84%
Grupo Televisa SAB ADR (Consumer Discretionary, Media)		46,625		1,246,753
South Korea: 0.01%
Orion Corporation (Consumer Staples, Food Products)		18		14,650
Spain: 1.68%
Grifols SA (Health Care, Biotechnology)		43,240		979,780
Grifols SA ADR (Health Care, Biotechnology)		91,232		1,508,065
				2,487,845
Sweden: 0.96%
Swedbank AB Class A (Financials, Banks)		65,125		1,433,455
Switzerland: 8.53%
Actelion Limited (Health Care, Biotechnology)		15,960		2,618,789
Nestle SA (Consumer Staples, Food Products)		94,160		6,953,062
Roche Holding AG (Health Care, Pharmaceuticals)		9,081		2,383,534
Syngenta AG (Materials, Chemicals)		1,775		697,321
				12,652,706
Taiwan: 1.20%
Taiwan Semiconductor Manufacturing Company Limited (Information Technology, Semiconductors & Semiconductor Equipment)		372,000		1,785,144
United Kingdom: 22.59%
Aon plc (Financials, Insurance)		37,385		4,085,059
Babcock International Group plc (Industrials, Commercial Services & Supplies)		57,838		868,691
British American Tobacco plc (Consumer Staples, Tobacco)		25,042		1,522,597
Coca Cola European Partners plc (Consumer Staples, Beverages)		34,108		1,323,731
Croda International plc (Materials, Chemicals)		11,912		507,231
Delphi Automotive plc (Consumer Discretionary, Auto Components)		37,027		2,516,355
Diageo plc (Consumer Staples, Beverages)		25,404		688,229
Imperial Tobacco Group plc (Consumer Staples, Tobacco)		46,968		2,558,461
Intercontinental Hotels Group plc (Consumer Discretionary, Hotels, Restaurants & Leisure)		31,658		1,220,118
International Consolidated Airlines Group SA (Industrials, Airlines)		283,379		2,197,863
Johnson Matthey plc (Materials, Chemicals)		24,446		1,021,119
Liberty Global plc Class A (Consumer Discretionary, Media) †		73,803		2,756,542
Liberty Global plc Class C (Consumer Discretionary, Media) †		112,794		4,075,249
Lloyds Banking Group plc (Financials, Banks)		2,149,990		2,242,658
Unilever plc (Consumer Staples, Personal Products)		81,147		3,697,470
WPP plc (Consumer Discretionary, Media)		96,877		2,233,763
				33,515,136

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 95

INTERNATIONAL GROWTH PORTFOLIO

Security name						Shares		Value
United States: 6.02%
Amazon.com Incorporated (Consumer Discretionary, Internet & Catalog Retail)†							2,170	$	1,568,454
Cognizant Technology Solutions Corporation Class A (Information Technology, IT Services)†							72,405		4,448,563
WABCO Holdings Incorporated (Industrials, Machinery)†							11,026		1,189,705
Willis Towers Watson plc (Financials, Insurance)							13,503		1,728,654
									8,935,376
Total Common Stocks (Cost $120,591,514)									134,894,376
				Expiration date
Participation Notes: 1.63%
Ireland: 1.63%
HSBC Bank plc (Ryanair Holdings plc) (Industrials, Airlines)					10-29-2018		155,215		2,418,886
Total Participation Notes (Cost $1,623,518)									2,418,886
	Dividend yield
Preferred Stocks: 1.19%
Germany: 1.19%
Henkel AG & Company KGaA (Consumer Staples, Household Products) ±		1.43	%				15,169		1,767,949
Total Preferred Stocks (Cost $1,218,585)									1,767,949
	Yield
Short-Term Investments: 8.34%
Investment Companies: 8.34%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45					2,506,158		2,506,158
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					9,867,059		9,867,059
Total Short-Term Investments (Cost $12,373,217)									12,373,217

Total investments in securities (Cost $135,806,834) *	102.07	%		151,454,428
Other assets and liabilities, net	(2.07	)		(3,077,813	)
Total net assets	100.00	%	$	148,376,615

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

96 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

INTERNATIONAL GROWTH PORTFOLIO

† Non-income-earning security

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

± 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 Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $135,907,466 and unrealized gains (losses) consists of:

Gross unrealized gains	$	17,425,961
Gross unrealized losses		(1,878,999	)
Net unrealized gains	$	15,546,962

The following table shows the percent of total long-term investments by sector as of May 31, 2016:

Consumer Staples	24.75	%
Health Care	16.34
Financials	15.88
Consumer Discretionary	14.03
Industrials	10.39
Information Technology	8.13
Telecommunication Services	5.88
Materials	4.60
	100.00	%

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 97

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 96.91%
Australia: 5.60%
AGL Energy Limited (Utilities, Multi-Utilities)		131,500	$	1,766,830
Arrium Limited (Materials, Metals & Mining) †(a)		3,063,400		48,710
Asaleo Care Limited (Consumer Staples, Personal Products)		1,262,800		1,861,885
Automotive Holdings Group Limited (Consumer Discretionary, Specialty Retail)		410,016		1,155,723
Bendigo Bank Limited (Financials, Banks)		272,500		2,016,762
Boart Longyear Limited (Industrials, Construction & Engineering) †		199,991		14,454
Cabcharge Australia Limited (Industrials, Commercial Services & Supplies) «		207,386		491,634
Challenger Financial Services Group Limited (Financials, Diversified Financial Services)		475,400		3,288,208
CSR Limited (Materials, Construction Materials)		754,900		1,958,719
Downer EDI Limited (Industrials, Commercial Services & Supplies)		518,900		1,466,387
Lendlease Corporation Limited (Financials, Real Estate Management & Development)		350,500		3,402,140
McMillan Shakespeare Limited (Industrials, Professional Services)		158,800		1,719,295
Metcash Limited (Consumer Staples, Food & Staples Retailing) †		1,164,200		1,724,923
Mincor Resources NL (Materials, Metals & Mining) †(i)		570,994		119,679
Mineral Resources Limited (Industrials, Commercial Services & Supplies) «		144,300		857,287
Myer Holdings Limited (Consumer Discretionary, Multiline Retail) «		1,059,500		857,644
Panoramic Resources Limited (Materials, Metals & Mining) †		368,800		31,986
Primary Health Care Limited (Health Care, Health Care Providers & Services)		339,000		950,648
Qantas Airways Limited (Industrials, Airlines)		821,700		1,829,162
Rio Tinto Limited (Materials, Metals & Mining)		58,300		1,883,073
Seven Group Holdings Limited (Industrials, Trading Companies & Distributors)		165,800		659,076
UGL Limited (Industrials, Construction & Engineering) †		152,800		378,796
				28,483,021
Austria: 1.13%
OMV AG (Energy, Oil, Gas & Consumable Fuels) «		62,900		1,753,142
Raiffeisen Bank International AG (Financials, Banks) †		81,200		1,086,425
RHI AG (Materials, Construction Materials) «		64,721		1,272,809
Voestalpine AG (Materials, Metals & Mining)		47,700		1,633,865
				5,746,241
Belgium: 0.81%
Delhaize Group SA (Consumer Staples, Food & Staples Retailing)		39,400		4,130,894
Brazil: 0.82%
Banco do Brasil SA (Financials, Banks)		309,500		1,410,633
Companhia de Saneamento de Minas Gerais SA (Utilities, Water Utilities)		72,400		510,503
JBS SA (Consumer Staples, Food Products)		805,600		2,229,356
				4,150,492
Canada: 1.54%
Magna International Incorporated (Consumer Discretionary, Auto Components)		131,600		5,343,882
Metro Incorporated (Consumer Staples, Food & Staples Retailing)		9,500		321,871
WestJet Airlines Limited (Industrials, Airlines)		120,000		2,154,116
				7,819,869

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

98 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
China: 2.77%
China BlueChemical Limited H Shares (Materials, Chemicals)		1,984,000	$	439,144
China Communications Services Corporation Limited H Shares (Telecommunication Services, Diversified Telecommunication Services)		2,836,000		1,332,098
China Petroleum & Chemical Corporation H Shares (Energy, Oil, Gas & Consumable Fuels)		2,970,000		2,025,673
China Railway Construction Corporation Limited H Shares (Industrials, Construction & Engineering)		1,747,500		2,183,602
Dongfeng Motor Group Company Limited H Shares (Consumer Discretionary, Automobiles)		1,730,000		1,927,973
PICC Property & Casualty Company Limited H Shares (Financials, Insurance)		1,225,000		2,235,370
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health Care, Health Care Providers & Services)		823,400		1,778,033
Shenzhen International Holdings Limited H Shares (Industrials, Transportation Infrastructure)		731,500		1,110,794
TCL Communication Technology Holdings Limited H Shares (Information Technology, Technology Hardware, Storage & Peripherals) «		1,586,000		1,069,477
				14,102,164
Czech Republic: 0.21%
CEZ AS (Utilities, Electric Utilities)		57,500		1,044,370
Denmark: 0.24%
Sydbank AS (Financials, Banks)		43,000		1,226,054
Finland: 0.39%
Tieto Oyj (Information Technology, IT Services)		72,000		1,974,732
France: 8.90%
Alstom SA (Industrials, Machinery) †		83,800		2,104,429
AXA SA (Financials, Insurance)		132,200		3,321,346
BNP Paribas SA (Financials, Banks)		49,100		2,718,718
Cie Generale des Establissements Michelin (Consumer Discretionary, Auto Components)		32,700		3,323,284
Credit Agricole SA (Financials, Banks) «		219,328		2,202,419
Electricite de France SA (Utilities, Electric Utilities) «		148,600		1,979,944
Engie SA (Utilities, Multi-Utilities)		171,900		2,648,058
Orange SA (Telecommunication Services, Diversified Telecommunication Services)		181,900		3,160,337
Renault SA (Consumer Discretionary, Automobiles)		40,500		3,800,557
Sanofi SA (Health Care, Pharmaceuticals)		100,200		8,215,518
SCOR SE (Financials, Insurance)		109,700		3,667,835
Societe Generale SA (Financials, Banks) «		39,000		1,605,120
Thales SA (Industrials, Aerospace & Defense)		22,200		1,923,207
Total SA (Energy, Oil, Gas & Consumable Fuels)		93,700		4,553,352
				45,224,124
Germany: 9.44%
Allianz AG (Financials, Insurance)		35,700		5,827,161
Aurubis AG (Materials, Metals & Mining)		25,900		1,353,132
BASF SE (Materials, Chemicals)		46,500		3,592,186
Bayer AG (Health Care, Pharmaceuticals)		51,400		4,897,199
Bayerische Motoren Werke AG (Consumer Discretionary, Automobiles)		31,200		2,634,498
Daimler AG (Consumer Discretionary, Automobiles)		75,700		5,170,734
Deutsche Bank AG (Financials, Capital Markets)		130,100		2,324,054
E.ON SE (Utilities, Multi-Utilities)		87,200		857,199
Hannover Rueck SE (Financials, Insurance)		16,300		1,838,104
Metro AG (Consumer Staples, Food & Staples Retailing)		108,100		3,551,794
Muenchener Rueckversicherungs Gesellschaft AG (Financials, Insurance)		23,200		4,358,607

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 99

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Germany (continued)
Siemens AG (Industrials, Industrial Conglomerates)		33,900	$	3,650,807
Stada Arzneimittel AG (Health Care, Pharmaceuticals)		56,900		3,030,007
Volkswagen AG (Consumer Discretionary, Automobiles)		22,600		3,488,993
Wincor Nixdorf AG (Information Technology, Technology Hardware, Storage & Peripherals) †		26,600		1,420,928
				47,995,403
Hong Kong: 1.96%
China Resources Cement Holdings Limited (Materials, Construction Materials)		3,186,000		1,045,498
Kingboard Laminates Holdings Limited (Information Technology, Electronic Equipment, Instruments & Components) (i)		2,204,000		1,162,874
Lee & Man Paper Manufacturing Limited (Materials, Paper & Forest Products)		2,338,000		1,546,481
Skyworth Digital Holdings Limited (Consumer Discretionary, Household Durables)		3,680,000		2,221,047
Wheelock & Company Limited (Financials, Real Estate Management & Development)		379,000		1,707,042
Yue Yuen Industrial Holdings Limited (Consumer Discretionary, Textiles, Apparel & Luxury Goods)		611,500		2,305,691
				9,988,633
Hungary: 0.23%
Richter Gedeon (Health Care, Pharmaceuticals)		59,700		1,196,850
India: 0.56%
Gail India Limited GDR (Utilities, Gas Utilities)		1,800		58,860
Tata Motors Limited ADR (Consumer Discretionary, Automobiles)		83,800		2,806,462
				2,865,322
Ireland: 0.92%
C&C Group plc (Consumer Staples, Beverages)		240,000		1,103,660
Smurfit Kappa Group plc (Materials, Containers & Packaging)		130,200		3,552,140
				4,655,800
Israel: 1.08%
Bank Hapoalim Limited (Financials, Banks)		542,900		2,804,192
Teva Pharmaceutical Industries Limited (Health Care, Pharmaceuticals)		51,404		2,669,801
				5,473,993
Italy: 1.11%
Enel SpA (Utilities, Electric Utilities)		688,400		3,120,474
Mediobanca SpA (Financials, Capital Markets)		324,800		2,518,880
				5,639,354
Japan: 21.62%
Adeka Corporation (Materials, Chemicals)		155,300		2,128,915
Aisin Seiki Company Limited (Consumer Discretionary, Auto Components)		46,400		1,917,009
Anritsu Corporation (Information Technology, Electronic Equipment, Instruments & Components)		206,300		1,173,694
Aoyama Trading Company Limited (Consumer Discretionary, Specialty Retail)		24,800		886,874
Aozora Bank Limited (Financials, Banks)		588,000		2,001,860
Calsonic Kansei Corporation (Consumer Discretionary, Auto Components)		326,000		2,543,586
Central Glass Company Limited (Industrials, Building Products)		444,000		2,193,236
CKD Corporation (Industrials, Machinery)		171,200		1,501,198
DCM Holdings Company Limited (Consumer Discretionary, Specialty Retail)		143,100		1,046,742

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

100 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Japan (continued)
Denka Company Limited (Materials, Chemicals)		682,000	$	2,993,200
DIC Incorporated (Materials, Chemicals)		808,700		1,920,694
Eizo Corporation (Information Technology, Technology Hardware, Storage & Peripherals)		63,300		1,792,076
Fujikura Limited (Industrials, Electrical Equipment)		348,000		1,816,445
Geo Holdings Corporation (Consumer Discretionary, Specialty Retail)		91,700		1,263,685
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components)		327,800		1,515,633
Isuzu Motors Limited (Consumer Discretionary, Automobiles)		221,400		2,671,155
Itochu Corporation (Industrials, Trading Companies & Distributors)		200,700		2,522,003
Japan Airlines Company Limited (Industrials, Airlines)		80,700		2,770,043
JFE Holdings Incorporated (Materials, Metals & Mining)		70,000		942,837
KDDI Corporation (Telecommunication Services, Wireless Telecommunication Services)		102,800		3,005,044
Kureha Corporation (Materials, Chemicals)		271,000		1,010,728
Kyorin Company Limited (Health Care, Pharmaceuticals)		99,000		1,917,686
Maeda Road Construction Company Limited (Industrials, Construction & Engineering)		148,000		2,665,029
Makino Milling Machine Company Limited (Industrials, Machinery)		232,000		1,474,945
Marubeni Corporation (Industrials, Trading Companies & Distributors)		516,000		2,483,193
Matsumotokiyoshi Holdings Company Limited (Consumer Staples, Food & Staples Retailing)		60,500		3,310,877
Miraca Holdings Incorporated (Health Care, Health Care Providers & Services)		25,100		1,061,936
Mitsubishi Corporation (Industrials, Trading Companies & Distributors)		35,500		630,591
Mitsubishi Gas Chemical Company Incorporated (Materials, Chemicals)		556,400		3,160,479
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks)		657,100		3,286,242
Mizuho Financial Group Incorporated (Financials, Banks)		2,244,400		3,534,775
Namura Shipbuilding Company Limited (Industrials, Machinery)		108,800		695,628
Nippon Telegraph & Telephone Corporation (Telecommunication Services, Diversified Telecommunication Services)		234,000		10,259,358
Nissan Motor Company Limited (Consumer Discretionary, Automobiles)		419,800		4,264,912
Nisshinbo Holdings Incorporated (Industrials, Industrial Conglomerates)		147,200		1,516,731
NTT DOCOMO Incorporated (Telecommunication Services, Wireless Telecommunication Services)		98,600		2,474,461
Resona Holdings Incorporated (Financials, Banks)		1,013,300		3,856,094
Ricoh Company Limited (Information Technology, Technology Hardware, Storage & Peripherals)		166,000		1,448,106
Sankyu Incorporated (Industrials, Road & Rail)		370,000		1,984,738
Sojitz Corporation (Industrials, Trading Companies & Distributors)		1,160,700		2,599,482
Sumitomo Corporation (Industrials, Trading Companies & Distributors)		285,000		2,927,597
Sumitomo Metal Mining Company Limited (Materials, Metals & Mining)		108,000		1,114,769
Sumitomo Mitsui Financial Group Incorporated (Financials, Banks)		100,400		3,279,422
The Keiyo Bank Limited (Financials, Banks)		62,000		231,797
Toho Holdings Company Limited (Health Care, Health Care Providers & Services)		63,000		1,549,185
Toyo Ink SC Holding Company Limited (Materials, Chemicals)		375,000		1,608,570
Toyo Tire & Rubber Company Limited (Consumer Discretionary, Auto Components)		95,400		1,163,908
Tsumura & Company (Health Care, Pharmaceuticals)		83,700		1,976,570
UBE Industries Limited (Materials, Chemicals)		809,000		1,519,592
Yokohama Rubber Company Limited (Consumer Discretionary, Auto Components)		148,500		2,283,790
				109,897,120
Liechtenstein: 0.12%
VP Bank AG (Financials, Capital Markets)		6,558		599,721
Netherlands: 1.36%
Aegon NV (Financials, Insurance) «		334,000		1,716,908
ING Groep NV (Financials, Banks)		237,100		2,953,346
Koninklijke Ahold NV (Consumer Staples, Food & Staples Retailing)		100,600		2,228,578
				6,898,832

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 101

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Norway: 1.23%
Atea ASA (Information Technology, IT Services) (i)		84,900	$	761,153
DNB Nor ASA (Financials, Banks)		148,800		1,908,559
Marine Harvest ASA (Consumer Staples, Food Products)		97,500		1,628,186
Yara International ASA (Materials, Chemicals)		53,600		1,933,050
				6,230,948
Poland: 0.39%
Asseco Poland SA (Information Technology, Software)		101,800		1,424,673
KGHM Polska Miedz SA (Materials, Metals & Mining)		36,500		558,199
				1,982,872
Portugal: 0.28%
Sonae SGPS SA (Consumer Staples, Food & Staples Retailing)		1,362,100		1,401,875
Russia: 0.82%
Gazprom Neft Sponsored ADR (Energy, Oil, Gas & Consumable Fuels) (i)		150,014		1,860,174
Gazprom Neft Sponsored ADR (Energy, Oil, Gas & Consumable Fuels)		886		10,694
LUKOIL OAO ADR (Energy, Oil, Gas & Consumable Fuels)		60,400		2,323,588
				4,194,456
Singapore: 0.80%
DBS Group Holdings Limited (Financials, Banks)		227,000		2,555,007
United Overseas Bank Limited (Financials, Banks)		113,000		1,495,069
				4,050,076
South Africa: 0.37%
Barclays Africa Group Limited (Financials, Banks)		200,300		1,860,099
South Korea: 2.42%
BNK Financial Group Incorporated (Financials, Banks)		13,188		96,824
E-MART Limited (Consumer Staples, Food & Staples Retailing)		8,500		1,298,037
Industrial Bank of Korea (Financials, Banks)		192,500		1,841,332
KT&G Corporation (Consumer Staples, Tobacco)		31,300		3,348,506
Kwangju Bank (Financials, Banks)		13,510		103,156
SK Telecom Company Limited (Telecommunication Services, Wireless Telecommunication Services)		22,300		4,153,885
Woori Bank (Financials, Banks)		178,044		1,486,439
				12,328,179
Spain: 1.74%
Banco Santander Central Hispano SA (Financials, Banks)		429,681		2,051,461
Distribuidora Internacional SA (Consumer Staples, Food & Staples Retailing)		248,800		1,487,947
Gas Natural SDG SA (Utilities, Gas Utilities)		268,500		5,314,702
				8,854,110
Sweden: 2.05%
Boliden AB (Materials, Metals & Mining)		169,300		2,995,760
Nordea Bank AB (Financials, Banks)		177,300		1,720,637
Skandinaviska Enskilda Banken AB Class A (Financials, Banks)		144,900		1,388,835
Telefonaktiebolaget LM Ericsson Class B (Information Technology, Communications Equipment)		304,500		2,347,264

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

102 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

Security name	Shares		Value
Sweden (continued)
Telia Company AB (Telecommunication Services, Diversified Telecommunication Services)		417,000	$	1,954,184
				10,406,680
Switzerland: 6.12%
Aryzta AG (Consumer Staples, Food Products)		42,100		1,675,529
Baloise Holding AG (Financials, Insurance)		28,800		3,557,988
Credit Suisse Group AG (Financials, Capital Markets) «		273,395		3,746,117
Georg Fischer AG (Industrials, Machinery)		3,000		2,394,869
Swiss Life Holding AG (Financials, Insurance)		15,100		3,914,759
Swiss Reinsurance AG (Financials, Insurance)		75,700		6,800,815
UBS Group AG (Financials, Capital Markets)		158,900		2,455,437
Valiant Holding AG (Financials, Banks)		22,700		2,427,575
Zurich Insurance Group AG (Financials, Insurance)		17,100		4,137,374
				31,110,463
Taiwan: 0.42%
Pegatron Corporation (Information Technology, Technology Hardware, Storage & Peripherals)		1,035,000		2,154,895
Thailand: 0.99%
Bangchak Petroleum PCL (Energy, Oil, Gas & Consumable Fuels)		2,188,900		1,853,442
Thai Oil PCL (Energy, Oil, Gas & Consumable Fuels)		1,003,900		1,784,399
Thanachart Capital PCL (Financials, Banks)		1,481,500		1,409,965
				5,047,806
United Kingdom: 18.47%
3i Group plc (Financials, Capital Markets)		409,100		3,326,999
AMEC Foster Wheeler plc (Energy, Energy Equipment & Services)		83,300		526,988
AstraZeneca plc (Health Care, Pharmaceuticals)		60,300		3,517,873
Aviva plc (Financials, Insurance)		314,900		2,051,472
BAE Systems plc (Industrials, Aerospace & Defense)		939,800		6,582,565
Barclays plc (Financials, Banks)		715,000		1,888,880
Barratt Developments plc (Consumer Discretionary, Household Durables)		318,600		2,731,750
Bellway plc (Consumer Discretionary, Household Durables)		51,700		2,046,462
Berkeley Group Holdings plc (Consumer Discretionary, Household Durables)		58,800		2,789,087
Bovis Homes Group plc (Consumer Discretionary, Household Durables)		108,600		1,588,637
BP plc (Energy, Oil, Gas & Consumable Fuels)		1,298,500		6,718,737
BT Group plc (Telecommunication Services, Diversified Telecommunication Services)		252,200		1,617,432
Carillion plc (Industrials, Construction & Engineering) «		496,300		1,993,277
Centrica plc (Utilities, Multi-Utilities)		898,500		2,652,135
Chemring Group plc (Industrials, Aerospace & Defense)		341,066		681,696
Crest Nicholson Holdings plc (Consumer Discretionary, Household Durables)		264,876		2,255,762
Darty plc (Consumer Discretionary, Specialty Retail)		226,400		551,211
Debenhams plc (Consumer Discretionary, Multiline Retail)		1,238,200		1,326,180
easyJet plc (Industrials, Airlines)		103,400		2,295,811
Firstgroup plc (Industrials, Road & Rail) †		952,400		1,491,140
GlaxoSmithKline plc (Health Care, Pharmaceuticals)		110,500		2,312,616
Home Retail Group plc (Consumer Discretionary, Internet & Catalog Retail)		164,100		392,875
International Consolidated Airlines Group SA (Industrials, Airlines)		182,900		1,418,556
J Sainsbury plc (Consumer Staples, Food & Staples Retailing)		1,211,800		4,712,471
Lloyds Banking Group plc (Financials, Banks)		2,460,500		2,566,551

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 103

INTERNATIONAL VALUE PORTFOLIO

Security name						Shares		Value
United Kingdom (continued)
Marks & Spencer Group plc (Consumer Discretionary, Multiline Retail)							379,900	$	2,089,216
Marston’s plc (Consumer Discretionary, Hotels, Restaurants & Leisure)							558,800		1,235,859
Meggitt plc (Industrials, Aerospace & Defense)							392,800		2,207,378
Mitchells & Butlers plc (Consumer Discretionary, Hotels, Restaurants & Leisure)							236,800		995,640
Mitie Group plc (Industrials, Commercial Services & Supplies) «							539,300		2,200,345
Mondi plc (Materials, Paper & Forest Products)							142,300		2,774,108
Old Mutual plc (Financials, Insurance)							982,800		2,535,143
Paragon Group of Companies plc (Financials, Thrifts & Mortgage Finance)							328,000		1,468,881
Premier Foods plc (Consumer Staples, Food Products) †							73,926		45,505
Redrow plc (Consumer Discretionary, Household Durables)							388,600		2,368,383
Royal Dutch Shell plc Class B (Energy, Oil, Gas & Consumable Fuels)							287,900		6,923,951
Royal Mail plc (Industrials, Air Freight & Logistics)							290,000		2,272,316
Smiths Group plc (Industrials, Industrial Conglomerates)							46,300		752,397
Standard Chartered plc (Financials, Banks)							253,000		1,939,527
Tullett Prebon plc (Financials, Capital Markets)							279,500		1,360,174
Vesuvius plc (Industrials, Machinery)							145,400		726,114
William Morrison Supermarkets plc (Consumer Staples, Food & Staples Retailing)							679,700		1,951,167
									93,883,267
Total Common Stocks (Cost $547,156,375)									492,618,715
	Dividend yield
Preferred Stocks: 0.19%
Brazil: 0.19%
Banco do Estado do Rio Grande do Sul SA (Financials, Banks) ±		8.95	%				349,800		808,288
Companhia Energetica de Minas Gerais SA (Utilities, Water Utilities) ±		8.48					109,056		169,910
Total Preferred Stocks (Cost $3,545,600)									978,198
				Expiration date
Rights: 0.00%
Brazil: 0.00%
Companhia de Saneamento de Minas Gerais (Utilities, Electric Utilities) †(a)					6-20-2016		3,288		6,779
Total Rights (Cost $0)									6,779
	Yield
Short-Term Investments: 3.32%
Investment Companies: 3.32%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45					14,316,539		14,316,539
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					2,530,851		2,530,851
Total Short-Term Investments (Cost $16,847,390)									16,847,390

Total investments in securities (Cost $567,549,365)*	100.42	%		510,451,082
Other assets and liabilities, net	(0.42	)		(2,132,112	)
Total net assets	100.00	%	$	508,318,970

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

104 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

INTERNATIONAL VALUE PORTFOLIO

† Non-income-earning security

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

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

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

± 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 Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $568,923,013 and unrealized gains (losses) consists of:

Gross unrealized gains	$	53,695,416
Gross unrealized losses		(112,167,347	)
Net unrealized losses	$	(58,471,931	)

The following table shows the percent of total long-term investments by sector as of May 31, 2016:

Financials	27.13	%
Consumer Discretionary	14.88
Industrials	14.85
Materials	8.74
Consumer Staples	7.70
Health Care	7.11
Energy	6.15
Telecommunication Services	5.66
Utilities	4.08
Information Technology	3.70
	100.00	%

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 105

LARGE COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 98.50%
Consumer Discretionary: 7.57%
Hotels, Restaurants & Leisure: 1.48%
Norwegian Cruise Line Holdings Limited †		25,250	$	1,171,850
Household Durables: 2.04%
Harman International Industries Incorporated		11,707		915,956
Newell Rubbermaid Incorporated		14,635		697,943
				1,613,899
Leisure Products: 1.26%
Mattel Incorporated		31,393		1,000,809
Media: 1.21%
Scripps Networks Interactive Incorporated Class A		14,827		953,969
Multiline Retail: 0.63%
JCPenny Company Incorporated †«		64,446		502,034
Textiles, Apparel & Luxury Goods: 0.95%
Skechers U.S.A. Incorporated Class A †		24,055		749,794
Consumer Staples: 6.63%
Food & Staples Retailing: 2.68%
CVS Health Corporation		22,018		2,123,636
Food Products: 2.16%
ConAgra Foods Incorporated		17,627		805,554
TreeHouse Foods Incorporated †		9,540		903,438
				1,708,992
Household Products: 1.26%
The Procter & Gamble Company		12,296		996,468
Personal Products: 0.53%
Herbalife Limited †«		7,190		416,229
Energy: 11.08%
Energy Equipment & Services: 0.79%
Baker Hughes Incorporated		7,892		366,031
Noble Corporation plc «		30,604		255,237
				621,268
Oil, Gas & Consumable Fuels: 10.29%
Chevron Corporation		11,430		1,154,430
ConocoPhillips		19,177		839,761
Exxon Mobil Corporation		29,377		2,615,141
Kinder Morgan Incorporated		69,137		1,249,997
Noble Energy Incorporated		35,551		1,270,948

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

106 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

LARGE COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Valero Energy Corporation		18,516	$	1,012,825
				8,143,102
Financials: 28.83%
Banks: 10.71%
Bank of America Corporation		98,811		1,461,415
BOK Financial Corporation «		20,150		1,284,361
Citigroup Incorporated		31,329		1,458,992
First Republic Bank		11,924		863,417
JPMorgan Chase & Company		32,086		2,094,253
KeyCorp		31,683		406,176
SunTrust Banks Incorporated		20,655		905,102
				8,473,716
Capital Markets: 4.62%
Affiliated Managers Group Incorporated †		5,309		921,218
Ameriprise Financial Incorporated		16,468		1,674,302
Goldman Sachs Group Incorporated		6,635		1,058,150
				3,653,670
Insurance: 7.43%
American International Group Incorporated		28,858		1,670,301
Arthur J. Gallagher & Company		21,660		1,046,828
Chubb Limited		7,121		901,590
Endurance Specialty Holdings Limited		11,667		792,423
MetLife Incorporated		32,223		1,467,758
				5,878,900
REITs: 6.07%
Alexandria Real Estate Equities Incorporated		18,859		1,827,437
Equity Residential		8,391		580,741
Pebblebrook Hotel Trust		23,015		580,438
Prologis Incorporated		18,228		866,377
VEREIT Incorporated		98,744		946,955
				4,801,948
Health Care: 12.74%
Biotechnology: 3.40%
AbbVie Incorporated		10,500		660,765
Baxalta Incorporated		33,576		1,518,642
Gilead Sciences Incorporated		5,874		511,390
				2,690,797
Health Care Equipment & Supplies: 1.05%
Medtronic plc		10,277		827,093

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 107

LARGE COMPANY VALUE PORTFOLIO

Security name		Shares		Value
Health Care Providers & Services: 1.81%
Cigna Corporation			5,586	$	715,622
HCA Holdings Incorporated †			9,201		717,862
					1,433,484
Pharmaceuticals: 6.48%
Allergan plc †			4,409		1,039,422
Johnson & Johnson			7,673		864,670
Mallinckrodt plc †			12,316		780,342
Merck & Company Incorporated			16,634		935,829
Pfizer Incorporated			43,334		1,503,690
					5,123,953
Industrials: 10.72%
Aerospace & Defense: 2.19%
Curtiss-Wright Corporation			11,704		974,007
Raytheon Company			5,865		760,515
					1,734,522
Airlines: 0.57%
United Continental Holdings Incorporated †			9,972		449,637
Electrical Equipment: 0.93%
Eaton Corporation plc			11,922		734,753
Industrial Conglomerates: 1.66%
General Electric Company			43,387		1,311,589
Machinery: 1.67%	��
Stanley Black & Decker Incorporated			11,659		1,319,566
Professional Services: 1.01%
Robert Half International Incorporated			19,238		796,799
Road & Rail: 1.65%
Hertz Global Holdings Incorporated †			51,571		499,723
Norfolk Southern Corporation			9,605		807,396
					1,307,119
Trading Companies & Distributors: 1.04%
HD Supply Holdings Incorporated †			23,467		828,385
Information Technology: 11.06%
Electronic Equipment, Instruments & Components: 2.54%
Synnex Corporation			14,052		1,280,137
TE Connectivity Limited			12,197		731,820
					2,011,957

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

108 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

LARGE COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Internet Software & Services: 1.41%
Alphabet Incorporated Class C †		1,511	$	1,111,673
IT Services: 1.04%
Alliance Data Systems Corporation †		3,690		819,881
Semiconductors & Semiconductor Equipment: 2.68%
NXP Semiconductors NV †		14,944		1,412,059
Skyworks Solutions Incorporated		10,610		708,324
				2,120,383
Software: 0.58%
Citrix Systems Incorporated †		5,365		455,596
Technology Hardware, Storage & Peripherals: 2.81%
Apple Incorporated		7,084		707,408
NCR Corporation †		49,182		1,518,740
				2,226,148
Materials: 3.37%
Chemicals: 1.88%
Cabot Corporation		11,987		547,926
FMC Corporation		19,782		939,447
				1,487,373
Containers & Packaging: 1.49%
Crown Holdings Incorporated †		17,198		897,220
WestRock Company		7,162		283,687
				1,180,907
Telecommunication Services: 2.27%
Diversified Telecommunication Services: 2.27%
AT&T Incorporated		22,762		891,132
Verizon Communications Incorporated		17,752		903,577
				1,794,709
Utilities: 4.23%
Electric Utilities: 3.13%
Duke Energy Corporation		15,256		1,193,477
The Southern Company		25,977		1,284,303
				2,477,780
					��
Gas Utilities: 1.10%
Atmos Energy Corporation		11,944		870,718
Total Common Stocks (Cost $66,303,876)				77,925,106

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 109

LARGE COMPANY VALUE PORTFOLIO

Security name	Yield			Shares		Value
Short-Term Investments: 3.64%
Investment Companies: 3.64%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		1,759,295	$	1,759,295
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			1,123,879		1,123,879
Total Short-Term Investments (Cost $2,883,174)							2,883,174

Total investments in securities (Cost $69,187,050)*	102.14	%		80,808,280
Other assets and liabilities, net	(2.14	)		(1,693,450	)
Total net assets	100.00	%	$	79,114,830

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $70,181,391 and unrealized gains (losses) consists of:

Gross unrealized gains	$	13,775,938
Gross unrealized losses		(3,149,049	)
Net unrealized gains	$	10,626,889

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

110 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares		Value
Common Stocks: 97.39%
Consumer Discretionary: 14.01%
Auto Components: 1.32%
Gentherm Incorporated †		324,905	$	11,885,025
Tower International Incorporated		178,475		3,867,553
				15,752,578
Diversified Consumer Services: 1.01%
Houghton Mifflin Harcourt Company †		703,180		12,094,696
Hotels, Restaurants & Leisure: 3.44%
Del Taco Restaurants Incorporated †		660,890		6,172,713
Extended Stay America Incorporated		681,120		9,712,771
Krispy Kreme Doughnuts Incorporated †		537,600		11,493,888
SeaWorld Entertainment Incorporated «		313,480		5,473,361
Zoe’s Kitchen Incorporated †«		226,470		8,361,272
				41,214,005
Household Durables: 0.99%
Tempur-Pedic International Incorporated †		96,410		5,612,990
William Lyon Homes Class A †«		388,969		6,309,077
				11,922,067
Leisure Products: 0.30%
Malibu Boats Incorporated Class A †		262,490		3,569,864
Media: 2.44%
IMAX Corporation †		481,153		16,041,641
Lions Gate Entertainment Corporation «		357,164		7,964,757
Media General Incorporated †		289,410		5,163,074
				29,169,472
Specialty Retail: 3.80%
Burlington Stores Incorporated †		188,080		11,352,509
Chico’s FAS Incorporated		525,617		5,702,944
Dick’s Sporting Goods Incorporated		241,689		10,368,458
Monro Muffler Brake Incorporated		124,471		7,835,449
Party City Holdco Incorporated †		730,240		10,179,546
				45,438,906
Textiles, Apparel & Luxury Goods: 0.71%
Kate Spade & Company †		388,780		8,498,731
Consumer Staples: 2.60%
Food Products: 1.78%
Amplify Snack Brands Incorporated †«		723,199		9,437,747
WhiteWave Foods Company †		265,936		11,874,042
				21,311,789

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 111

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares		Value
Household Products: 0.82%
Central Garden & Pet Company †		60,890	$	1,137,425
Central Garden & Pet Company Class A †		475,575		8,669,732
				9,807,157
Energy: 2.69%
Oil, Gas & Consumable Fuels: 2.69%
Diamondback Energy Incorporated †		110,139		10,017,142
GasLog Limited «		483,053		6,014,010
Memorial Resource Development Corporation †		354,153		5,595,617
QEP Resources Incorporated		568,950		10,599,539
				32,226,308
Financials: 9.41%
Banks: 2.55%
ServisFirst Bancshares Incorporated «		165,480		8,611,579
Signature Bank †		69,675		9,406,125
SVB Financial Group †		113,342		12,490,288
				30,507,992
Capital Markets: 3.25%
Evercore Partners Incorporated Class A		301,814		15,694,328
Stifel Financial Corporation †		258,781		9,776,746
Virtu Financial Incorporated Class A		436,538		7,774,742
Virtus Investment Partners Incorporated		69,078		5,623,640
				38,869,456
Insurance: 1.17%
Argo Group International Holdings Limited		265,607		13,984,214
REITs: 1.19%
QTS Realty Trust Incorporated Class A		275,695		14,245,161
Thrifts & Mortgage Finance: 1.25%
Essent Group Limited †		684,644		14,966,318
Health Care: 23.15%
Biotechnology: 3.91%
Alder Biopharmaceuticals Incorporated †«		180,740		5,434,852
Alnylam Pharmaceuticals Incorporated †		100,665		7,219,694
Cepheid Incorporated †		330,687		9,262,543
Flexion Therapeutics Incorporated †		379,627		6,620,695
Intrexon Corporation «		148,882		4,576,633
Portola Pharmaceuticals Incorporated †		214,134		5,884,402
Radius Health Incorporated †«		112,560		4,081,426
Tesaro Incorporated †«		80,082		3,707,797
				46,788,042

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

112 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares		Value
Health Care Equipment & Supplies: 8.29%
Accuray Incorporated †«		1,254,478	$	6,836,905
Analogic Corporation		128,080		10,502,560
Atricure Incorporated †		452,413		6,555,464
Cerus Corporation †«		1,721,148		9,569,583
Dexcom Incorporated †		154,016		9,932,492
Inogen Incorporated †		260,165		12,420,277
LDR Holding Corporation †		411,724		8,658,556
Nevro Corporation †«		177,490		12,374,603
Novocure Limited †«		412,470		4,590,791
The Spectranetics Corporation †«		491,654		9,007,101
Wright Medical Group NV †		452,394		8,749,300
				99,197,632
Health Care Providers & Services: 6.49%
Adeptus Health Incorporated Class A †«		160,667		11,487,691
AMN Healthcare Services Incorporated †		333,325		12,446,356
Capital Senior Living Corporation †		536,030		9,803,989
HealthEquity Incorporated †		538,630		13,902,040
LifePoint Hospitals Incorporated †		146,046		9,681,389
Surgery Partners Incorporated †		555,680		7,643,378
Teladoc Incorporated †«		376,900		4,307,967
The Ensign Group Incorporated		420,510		8,347,124
				77,619,934
Health Care Technology: 1.80%
Cotiviti Holdings Incorporated †		260,329		4,753,608
Evolent Health Incorporated Class A †«		602,380		9,228,462
Medidata Solutions Incorporated †		165,162		7,587,542
				21,569,612
Life Sciences Tools & Services: 1.51%
ICON plc ADR †		256,392		18,060,252
Pharmaceuticals: 1.15%
Cempra Holdings Incorporated †«		268,840		5,051,504
Pacira Pharmaceuticals Incorporated †«		188,200		8,753,182
				13,804,686
Industrials: 16.42%
Air Freight & Logistics: 1.30%
Hub Group Incorporated Class A †		388,019		15,528,520
Building Products: 5.00%
A.O. Smith Corporation		177,204		14,583,889
Apogee Enterprises Incorporated		314,635		14,227,795
Masonite International Corporation †		130,680		9,125,384
NCI Building Systems Incorporated †		779,634		12,552,107
PGT Incorporated †		870,941		9,336,488
				59,825,663

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 113

SMALL COMPANY GROWTH PORTFOLIO

Security name	Shares		Value
Commercial Services & Supplies: 3.82%
Copart Incorporated †		333,795	$	16,526,190
KAR Auction Services Incorporated		259,840		10,663,834
Mobile Mini Incorporated		279,215		9,618,957
West Corporation		423,880		8,943,868
				45,752,849
Construction & Engineering: 1.69%
Chicago Bridge & Iron Company NV		254,619		9,736,631
Granite Construction Incorporated		243,290		10,444,440
				20,181,071
Machinery: 0.91%
Wabash National Corporation †		770,303		10,922,897
Professional Services: 1.98%
On Assignment Incorporated †		341,274		12,855,792
RPX Corporation †		437,894		4,400,835
TrueBlue Incorporated †		325,860		6,455,287
				23,711,914
Road & Rail: 1.49%
Genesee & Wyoming Incorporated Class A †		166,147		9,980,450
Swift Transportation Company †«		502,826		7,834,029
				17,814,479
Trading Companies & Distributors: 0.23%
Siteone Landscape Supply Incorporated †		99,688		2,804,223
Information Technology: 27.06%
Communications Equipment: 1.35%
Ciena Corporation †		420,890		7,348,739
Infinera Corporation †		673,912		8,834,986
				16,183,725
Electronic Equipment, Instruments & Components: 0.74%
OSI Systems Incorporated †		165,436		8,814,430
Internet Software & Services: 6.27%
2U Incorporated †«		431,071		12,001,017
Benefitfocus Incorporated †«		273,850		10,053,034
Cornerstone OnDemand Incorporated †		366,620		14,668,466
Hortonworks Incorporated †«		592,020		6,914,794
Marketo Incorporated †		429,220		15,121,421
Pandora Media Incorporated †«		528,370		6,229,482
Shopify Incorporated Class A †«		344,870		10,101,242
				75,089,456

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

114 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

SMALL COMPANY GROWTH PORTFOLIO

Security name				Shares		Value
IT Services: 2.88%
Acxiom Corporation †					605,560	$	12,825,761
Maximus Incorporated					190,500		10,982,325
Vantiv Incorporated Class A †					197,360		10,612,047
							34,420,133
Semiconductors & Semiconductor Equipment: 6.17%
Applied Micro Circuits Corporation †					1,207,237		7,943,619
Cypress Semiconductor Corporation					1,143,754		12,158,105
FormFactor Incorporated †					1,103,995		7,915,644
Microsemi Corporation †					394,190		13,335,448
Nanometrics Incorporated †					324,399		6,040,309
Silicon Motion Technology Corporation «					246,514		10,957,547
Teradyne Incorporated					780,857		15,468,777
							73,819,449
Software: 9.65%
Cadence Design Systems Incorporated †					614,135		15,181,417
CyberArk Software Limited †«					239,950		10,898,529
PTC Incorporated †					414,545		14,815,838
Qlik Technologies Incorporated †					530,453		15,224,001
Secureworks Corporation Class A †«					273,420		3,777,297
SS&C Technologies Holdings Incorporated					349,948		21,553,297
Synchronoss Technologies Incorporated †					220,910		7,791,496
The Rubicon Project Incorporated †					652,224		9,555,082
Ultimate Software Group Incorporated †					45,881		9,381,747
Zendesk Incorporated †					296,733		7,266,991
							115,445,695
Materials: 2.05%
Chemicals: 0.17%
Calgon Carbon Corporation					133,782		1,990,676
Metals & Mining: 0.91%
Steel Dynamics Incorporated					440,383		10,873,056
Paper & Forest Products: 0.97%
Boise Cascade Company †					507,067		11,642,258
Total Common Stocks (Cost $1,086,280,944)							1,165,439,366
	Yield
Short-Term Investments: 16.01%
Investment Companies: 16.01%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%		151,177,536		151,177,536
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41			40,370,488		40,370,488
Total Short-Term Investments (Cost $191,548,024)							191,548,024

Total investments in securities (Cost $1,277,828,968) *	113.40	%		1,356,987,390
Other assets and liabilities, net	(13.40	)		(160,390,950	)
Total net assets	100.00	%	$	1,196,596,440

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 115

SMALL COMPANY GROWTH PORTFOLIO

† Non-income-earning security

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

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $1,301,744,639 and unrealized gains (losses) consists of:

Gross unrealized gains	$	153,262,207
Gross unrealized losses		(98,019,456	)
Net unrealized gains	$	55,242,751

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

116 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

SMALL COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Common Stocks: 98.11%
Consumer Discretionary: 14.49%
Auto Components: 1.80%
American Axle & Manufacturing Holdings Incorporated †		135,919	$	2,265,764
Metaldyne Performance Group Incorporated		101,000		1,646,300
				3,912,064
Automobiles: 1.16%
Thor Industries Incorporated		38,950		2,531,750
Hotels, Restaurants & Leisure: 0.66%
ClubCorp Holdings Incorporated		119,494		1,442,293
Household Durables: 1.25%
Beazer Homes Incorporated †		153,160		1,202,306
WCI Communities Incorporated †		87,500		1,505,875
				2,708,181
Media: 2.72%
Lions Gate Entertainment Corporation		128,600		2,867,780
Scholastic Corporation		78,023		3,046,798
				5,914,578
Specialty Retail: 4.92%
Asbury Automotive Group Incorporated †		32,109		1,801,315
Ascena Retail Group Incorporated †		196,620		1,419,596
GNC Holdings Incorporated Class A		61,770		1,609,109
Outerwall Incorporated «		54,010		2,227,913
Rent-A-Center Incorporated		116,600		1,535,622
Urban Outfitters Incorporated †		74,250		2,118,353
				10,711,908
Textiles, Apparel & Luxury Goods: 1.98%
G-III Apparel Group Limited †		53,900		2,108,568
Oxford Industries Incorporated		34,700		2,198,939
				4,307,507
Consumer Staples: 2.42%
Food & Staples Retailing: 1.17%
SUPERVALU Incorporated †		247,150		1,144,305
United Natural Foods Incorporated †		38,020		1,416,625
				2,560,930
Food Products: 1.25%
Darling Ingredients Incorporated †		176,810		2,714,034
Energy: 6.42%
Energy Equipment & Services: 1.09%
RPC Incorporated «		160,300		2,364,425

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 117

SMALL COMPANY VALUE PORTFOLIO

Security name		Shares		Value
Oil, Gas & Consumable Fuels: 5.33%
Callon Petroleum Company †			187,300	$	2,133,347
Carrizo Oil & Gas Incorporated †	��		50,600		1,948,100
Delek US Holdings Incorporated			122,500		1,688,050
Parsley Energy Incorporated Class A †			75,800		1,976,106
RSP Permian Incorporated †			58,540		1,927,722
Scorpio Tankers Incorporated			327,000		1,922,760
					11,596,085
Financials: 39.49%
Banks: 18.42%
BancorpSouth Incorporated			103,592		2,474,813
BankUnited Incorporated			72,150		2,388,165
Cathay General Bancorp			73,000		2,249,860
ConnectOne Bancorp Incorporated			81,120		1,284,941
Customers Bancorp Incorporated †			59,400		1,597,266
FCB Financial Holdings Class A †			63,600		2,351,292
Great Western Bancorp Incorporated			100,940		3,433,979
Pinnacle Financial Partners Incorporated			44,960		2,211,133
PrivateBancorp Incorporated			67,597		2,997,927
Renasant Corporation			75,600		2,601,396
Sterling BanCorp			163,800		2,696,148
Talmer Bancorp Incorporated Class A			155,400		3,098,676
Umpqua Holdings Corporation			130,600		2,088,294
Webster Financial Corporation			70,437		2,758,313
Western Alliance Bancorp †			89,978		3,392,171
Wintrust Financial Corporation			45,977		2,449,195
					40,073,569
Capital Markets: 2.15%
HFF Incorporated Class A			66,400		2,138,080
Stifel Financial Corporation †			67,193		2,538,552
					4,676,632
Consumer Finance: 0.86%
PRA Incorporated †			67,770		1,864,353
Insurance: 5.28%
American Equity Investment Life Holding Company			101,108		1,638,961
Employers Holdings Incorporated			39,034		1,165,165
Horace Mann Educators Corporation			71,710		2,442,443
Kemper Corporation			50,310		1,625,516
OneBeacon Insurance Group Limited Class A			103,456		1,346,997
Primerica Incorporated «			58,063		3,257,915
					11,476,997
Real Estate Management & Development: 0.75%
Alexander & Baldwin Incorporated			43,581		1,641,260

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

118 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

SMALL COMPANY VALUE PORTFOLIO

Security name	Shares		Value
REITs: 12.03%
Brandywine Realty Trust		162,900	$	2,572,191
Corporate Office Properties Trust		100,500		2,716,515
Equity Commonwealth †		106,100		3,065,229
Four Corners Property Trust Incorporated		122,100		2,373,624
Highwoods Properties Incorporated		54,100		2,632,506
Kite Realty Group Trust		79,200		2,128,104
National Health Investors Incorporated		32,400		2,262,492
Parkway Properties Incorporated		130,297		2,273,683
Ramco-Gershenson Properties Trust		150,221		2,705,480
Sabra Health Care REIT Incorporated		82,600		1,729,644
Sunstone Hotel Investors Incorporated		143,180		1,723,887
				26,183,355
Health Care: 3.82%
Health Care Equipment & Supplies: 0.71%
Merit Medical Systems Incorporated †		82,810		1,554,344
Health Care Providers & Services: 3.11%
Kindred Healthcare Incorporated		155,700		1,848,159
Molina Healthcare Incorporated †		57,260		2,773,102
Select Medical Holdings Corporation †		168,420		2,133,881
				6,755,142
Industrials: 7.78%
Commercial Services & Supplies: 1.03%
Quad Graphics Incorporated		116,460		2,237,197
Construction & Engineering: 2.82%
Argan Incorporated		62,300		2,161,810
KBR Incorporated		116,490		1,694,930
Tutor Perini Corporation †		100,795		2,279,983
				6,136,723
Electrical Equipment: 1.29%
Generac Holdings Incorporated †		74,060		2,807,615
Machinery: 1.51%
Chart Industries Incorporated †		83,380		2,164,545
NN Incorporated «		67,190		1,119,385
				3,283,930
Trading Companies & Distributors: 1.13%
Air Lease Corporation		81,800		2,458,090
Information Technology: 14.87%
Communications Equipment: 1.85%
ARRIS International plc †		92,313		2,224,743
NetScout Systems Incorporated †		73,530		1,788,830
				4,013,573

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

Portfolio of investments—May 31, 2016 Wells Fargo Equity Gateway Funds 119

SMALL COMPANY VALUE PORTFOLIO

Security name	Shares		Value
Electronic Equipment, Instruments & Components: 3.75%
Anixter International Incorporated †		28,320	$	1,704,864
Belden Incorporated		35,040		2,266,037
Jabil Circuit Incorporated		113,640		2,168,251
VeriFone Systems Incorporated †		76,800		2,027,520
				8,166,672
Internet Software & Services: 1.73%
Blucora Incorporated †		195,660		1,757,027
IAC/InterActive Corp		35,940		2,008,327
				3,765,354
IT Services: 1.01%
Cardtronics Incorporated †		56,110		2,204,562
Semiconductors & Semiconductor Equipment: 3.76%
Cirrus Logic Incorporated †		65,270		2,349,720
Integrated Device Technology Incorporated †		92,580		2,161,743
Veeco Instruments Incorporated †		73,530		1,308,099
Xcerra Corporation †		362,971		2,370,201
				8,189,763
Software: 1.09%
EPIQ Systems Incorporated		42,760		651,235
Mentor Graphics Corporation		79,807		1,711,062
				2,362,297
Technology Hardware, Storage & Peripherals: 1.68%
Avid Technology Incorporated †		219,320		1,304,954
Super Micro Computer Incorporated †		89,220		2,341,133
				3,646,087
Materials: 3.98%
Chemicals: 2.96%
A. Schulman Incorporated		84,600		2,141,226
Cabot Corporation		42,400		1,938,104
Chemtura Corporation †		88,513		2,361,527
				6,440,857
Metals & Mining: 1.02%
Ferroglobe plc		243,240		2,218,349
Utilities: 4.84%
Electric Utilities: 2.86%
El Paso Electric Company		44,141		1,971,337
PNM Resources Incorporated		60,087		1,973,257
Portland General Electric Company		55,124		2,270,006
				6,214,600

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

120 Wells Fargo Equity Gateway Funds Portfolio of investments—May 31, 2016

SMALL COMPANY VALUE PORTFOLIO

Security name						Shares		Value
Gas Utilities: 0.51%
Southwest Gas Corporation							16,060	$	1,115,046
Multi-Utilities: 1.47%
Avista Corporation							79,710		3,205,936
Total Common Stocks (Cost $191,380,274)									213,456,058
				Expiration date
Warrants: 0.00%
Health Care: 0.00%
Health Care Equipment & Supplies: 0.00%
EnteroMedics Incorporated †(a)					6-13-2016		9,104		0
Total Warrants (Cost $0)									0
	Yield
Short-Term Investments: 4.98%
Investment Companies: 4.98%
Securities Lending Cash Investments LLC (l)(r)(u)		0.45	%				5,965,825		5,965,825
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41					4,875,803		4,875,803
Total Short-Term Investments (Cost $10,841,628)									10,841,628

Total investments in securities (Cost $202,221,902) *	103.09	%		224,297,686
Other assets and liabilities, net	(3.09	)		(6,727,916	)
Total net assets	100.00	%	$	217,569,770

† Non-income-earning security

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

(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 Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $202,899,156 and unrealized gains (losses) consists of:

Gross unrealized gains	$	34,100,284
Gross unrealized losses		(12,701,754	)
Net unrealized gains	$	21,398,530

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

This page is intentionally left blank.

122 Wells Fargo Equity Gateway Funds Statements of assets and liabilities—May 31, 2016

	C&B Large Cap Value Portfolio		Diversified Large Cap Growth Portfolio
Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	278,436,916	$	113,251,607
In affiliated securities, at value (see cost below)		26,317,459		5,231,602
Total investments, at value (see cost below)		304,754,375		118,483,209
Cash		17,670		0
Foreign currency, at value (see cost below)		0		0
Receivable for investments sold		259,153		922,481
Receivable for dividends		554,970		120,029
Receivable for securities lending income		3,494		1,484
Prepaid expenses and other assets		592		330
Total assets		305,590,254		119,527,533
Liabilities
Payable for investments purchased		0		591,975
Payable upon receipt of securities loaned		12,454,900		3,113,406
Payable for daily variation margin on open futures contracts		0		0
Due to custodian bank		0		0
Advisory fee payable		159,438		47,773
Accrued expenses and other liabilities		11,627		15,903
Total liabilities		12,625,965		3,769,057
Total net assets	$	292,964,289	$	115,758,476
Investments in unaffiliated securities (including securities on loan), at cost	$	210,754,976	$	76,805,738
Investments in affiliated securities, at cost	$	26,317,459	$	5,231,602
Total investments, at cost	$	237,072,435	$	82,037,340
Securities on loan, at value	$	12,216,762	$	3,056,884
Foreign currency, at cost	$	0	$	0

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

Statements of assets and liabilities—May 31, 2016 Wells Fargo Equity Gateway Funds 123

Emerging Growth Portfolio		Index Portfolio		International Growth Portfolio		International Value Portfolio		Large Company Value Portfolio		Small Company Growth Portfolio		Small Company Value Portfolio
$	881,803,132	$	2,280,382,178	$	139,081,211	$	493,603,692	$	77,925,106	$	1,165,439,366	$	213,456,058
	107,801,958		67,271,596		12,373,217		16,847,390		2,883,174		191,548,024		10,841,628
	989,605,090		2,347,653,774		151,454,428		510,451,082		80,808,280		1,356,987,390		224,297,686
	0		22,803		0		0		9,201		0		0
	0		0		293,888		8,634,767		0		0		0
	2,761,183		1,362,819		866,987		33,527		699,380		7,015,660		4,010,253
	59,172		5,412,117		417,958		3,701,260		198,742		442,558		189,778
	149,480		6,050		53,622		232,005		3,040		204,650		20,988
	625		1,706		797		494		538		5,660		615
	992,575,550		2,354,459,269		153,087,680		523,053,135		81,719,181		1,364,655,918		228,519,320
	642,370		1,078,571		1,738,254		0		796,799		15,415,653		4,829,981
	92,823,723		12,693,253		2,506,158		14,316,539		1,759,295		151,177,536		5,965,825
	0		36,000		0		0		0		0		0
	0		0		328,836		0		0		682,735		0
	581,155		167,698		106,110		361,069		40,657		771,774		143,912
	40,637		71,289		31,707		56,557		7,600		11,780		9,832
	94,087,885		14,046,811		4,711,065		14,734,165		2,604,351		168,059,478		10,949,550
$	898,487,665	$	2,340,412,458	$	148,376,615	$	508,318,970	$	79,114,830	$	1,196,596,440	$	217,569,770
$	694,969,727	$	1,093,021,946	$	123,433,617	$	550,701,975	$	66,303,876	$	1,086,280,944	$	191,380,274
$	107,801,958	$	53,161,799	$	12,373,217	$	16,847,390	$	2,883,174	$	191,548,024	$	10,841,628
$	802,771,685	$	1,146,183,745	$	135,806,834	$	567,549,365	$	69,187,050	$	1,277,828,968	$	202,221,902
$	91,305,713	$	12,474,646	$	2,382,463	$	13,468,272	$	1,690,157	$	149,147,065	$	5,896,435
$	0	$	0	$	296,547	$	8,869,296	$	0	$	0	$	0

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

124 Wells Fargo Equity Gateway Funds Statements of operations—year ended May 31, 2016

	C&B Large Cap Value Portfolio			Diversified Large Cap Growth Portfolio
Investment income
Dividends*	$	6,182,005		$	1,033,489
Income from affiliated securities		30,399			6,535
Securities lending income, net		20,442			11,053
Interest		0			0
Total investment income		6,232,846			1,051,077
Expenses
Advisory fee		2,013,954			747,058
Custody and accounting fees		23,584			23,283
Professional fees		44,260			48,177
Shareholder report expenses		1,061			2,050
Trustees’ fees and expenses		12,601			19,695
Other fees and expenses		9,104			13,402
Total expenses		2,104,564			853,665
Less: Fee waivers and/or expense reimbursements		0			(138,673	)
Net expenses		2,104,564			714,992
Net investment income (loss)		4,128,282			336,085
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		14,000,084			5,117,947
Affiliated securities		0			0
Futures transactions		0			0
Net realized gain (losses) on investments		14,000,084			5,117,947
Net change in unrealized gains (losses) on:
Unaffiliated securities		(18,760,215	)		(7,846,480	)
Affiiliated securities		0			0
Futures transactions		0			0
Net change in unrealized gains (losses) on investments		(18,760,215	)		(7,846,480	)
Net realized and unrealized gains (losses) on investments		(4,760,131	)		(2,728,533	)
Net increase (decrease) in net assets resulting from operations	$	(631,849	)	$	(2,392,448	)
* Net of foreign dividend withholding taxes in the amount of		$38,949			$2,403

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

Statements of operations—year ended May 31, 2016 Wells Fargo Equity Gateway Funds 125

Emerging Growth Portfolio			Index Portfolio			International Growth Portfolio			International Value Portfolio			Large Company Value Portfolio			Small Company Growth Portfolio			Small Company Value Portfolio
$	1,009,155		$	53,355,178		$	3,063,804		$	16,120,553		$	1,726,450		$	4,949,491		$	2,915,555
	44,350			1,008,833			19,787			11,579			5,223			143,025			17,302
	2,887,743			137,335			126,956			723,831			38,150			2,906,307			102,931
	0			1,715			0			0			0			0			0
	3,941,248			54,503,061			3,210,547			16,855,963			1,769,823			7,998,823			3,035,788
	7,746,284			2,086,232			1,270,909			4,189,538			504,535			8,131,574			1,655,212
	59,221			144,630			86,894			187,952			10,912			68,505			22,717
	46,987			60,723			57,356			60,833			46,940			48,594			46,658
	4,524			7,122			1,429			2,646			1,125			1,984			2,789
	12,250			9,545			16,976			11,965			15,565			11,943			12,045
	34,034			264,943			48,726			53,937			14,613			25,031			9,443
	7,903,300			2,573,195			1,482,290			4,506,871			593,690			8,287,631			1,748,864
	0			(11,554	)		0			0			(20,538	)		0			0
	7,903,300			2,561,641			1,482,290			4,506,871			573,152			8,287,631			1,748,864
	(3,962,052	)		51,941,420			1,728,257			12,349,092			1,196,671			(288,808	)		1,286,924
	18,746,231			153,490,597			(1,635,815	)		(1,517,228	)		(1,089,821	)		(95,998,247	)		12,552,384
	0			1,980,988			0			0			0			0			0
	0			(1,069,185	)		0			0			0			0			0
	18,746,231			154,402,400			(1,635,815	)		(1,517,228	)		(1,089,821	)		(95,998,247	)		12,552,384
	(175,228,106	)		(175,233,159	)		(20,243,476	)		(73,474,825	)		(3,378,107	)		(55,183,521	)		(24,625,962	)
	0			(5,340,034	)		0			0			0			0			0
	0			950,920			0			0			0			0			0
	(175,228,106	)		(179,622,273	)		(20,243,476	)		(73,474,825	)		(3,378,107	)		(55,183,521	)		(24,625,962	)
	(156,481,875	)		(25,219,873	)		(21,879,291	)		(74,992,053	)		(4,467,928	)		(151,181,768	)		(12,073,578	)
$	(160,443,927	)	$	26,721,547		$	(20,151,034	)	$	(62,642,961	)	$	(3,271,257	)	$	(151,470,576	)	$	(10,786,654	)
	$0			$26,513			$278,962			$2,059,737			$882			$10,989			$0

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

126 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	C&B Large Cap Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	4,128,282		$	3,962,347
Net realized gains on investments		14,000,084			41,880,494
Net change in unrealized gains (losses) on investments		(18,760,215	)		(13,267,776	)
Net increase (decrease) in net assets resulting from operations		(631,849	)		32,575,065
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		38,393,377			32,358,693
Withdrawals		(80,332,043	)		(46,347,409	)
Net decrease in net assets resulting from capital share transactions		(41,938,666	)		(13,988,716	)
Total increase (decrease) in net assets		(42,570,515	)		18,586,349
Net assets
Beginning of period		335,534,804			316,948,455
End of period	$	292,964,289		$	335,534,804

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

Statements of changes in net assets Wells Fargo Equity Gateway Funds 127

	Diversified Large Cap Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	336,085		$	378,418
Net realized gains on investments		5,117,947			13,356,513
Net change in unrealized gains (losses) on investments		(7,846,480	)		2,762,375
Net increase (decrease) in net assets resulting from operations		(2,392,448	)		16,497,306
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		7,089,759			1,385,145
Withdrawals		(12,268,696	)		(38,000,934	)
Net decrease in net assets resulting from capital share transactions		(5,178,937	)		(36,615,789	)
Total decrease in net assets		(7,571,385	)		(20,118,483	)
Net assets
Beginning of period		123,329,861			143,448,344
End of period	$	115,758,476		$	123,329,861

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

128 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	Emerging Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment loss	$	(3,962,052	)	$	(7,075,125	)
Net realized gains on investments		18,746,231			124,199,895
Net change in unrealized gains (losses) on investments		(175,228,106	)		125,177,937
Net increase (decrease) in net assets resulting from operations		(160,443,927	)		242,302,707
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		105,565,223			45,776,720
Withdrawals		(194,401,064	)		(236,510,647	)
Net decrease in net assets resulting from capital share transactions		(88,835,841	)		(190,733,927	)
Total increase (decrease) in net assets		(249,279,768	)		51,568,780
Net assets
Beginning of period		1,147,767,433			1,096,198,653
End of period	$	898,487,665		$	1,147,767,433

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

Statements of changes in net assets Wells Fargo Equity Gateway Funds 129

	Index Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	51,941,420		$	54,937,429
Net realized gains on investments		154,402,400			151,694,995
Net change in unrealized gains (losses) on investments		(179,622,273	)		106,085,589
Net increase in net assets resulting from operations		26,721,547			312,718,013
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		66,728,942			163,917,502
Withdrawals		(523,281,965	)		(543,742,749	)
Net decrease in net assets resulting from capital share transactions		(456,553,023	)		(379,825,247	)
Total decrease in net assets		(429,831,476	)		(67,107,234	)
Net assets
Beginning of period		2,770,243,934			2,837,351,168
End of period	$	2,340,412,458		$	2,770,243,934

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

130 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	International Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	1,728,257		$	1,168,188
Net realized gains (losses) on investments		(1,635,815	)		5,764,586
Net change in unrealized gains (losses) on investments		(20,243,476	)		1,080,710
Net increase (decrease) in net assets resulting from operations		(20,151,034	)		8,013,484
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		15,674,750			9,541,797
Withdrawals		(5,551,430	)		(15,259,152	)
Net increase (decrease) in net assets resulting from capital share transactions		10,123,320			(5,717,355	)
Total increase (decrease) in net assets		(10,027,714	)		2,296,129
Net assets
Beginning of period		158,404,329			156,108,200
End of period	$	148,376,615		$	158,404,329

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

Statements of changes in net assets Wells Fargo Equity Gateway Funds 131

	International Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	12,349,092		$	12,375,837
Net realized gains (losses) on investments		(1,517,228	)		12,459,307
Net change in unrealized gains (losses) on investments		(73,474,825	)		(27,933,255	)
Net decrease in net assets resulting from operations		(62,642,961	)		(3,098,111	)
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		46,792,442			42,159,536
Withdrawals		(10,044,159	)		(17,083,113	)
Net increase in net assets resulting from capital share transactions		36,748,283			25,076,423
Total increase (decrease) in net assets		(25,894,678	)		21,978,312
Net assets
Beginning of period		534,213,648			512,235,336
End of period	$	508,318,970		$	534,213,648

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

132 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	Large Company Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	1,196,671		$	964,436
Net realized gains (losses) on investments		(1,089,821	)		9,724,164
Net change in unrealized gains (losses) on investments		(3,378,107	)		(3,904,014	)
Net increase (decrease) in net assets resulting from operations		(3,271,257	)		6,784,586
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		6,867,155			1,636,829
Withdrawals		(6,977,356	)		(21,975,522	)
Net decrease in net assets resulting from capital share transactions		(110,201	)		(20,338,693	)
Total decrease in net assets		(3,381,458	)		(13,554,107	)
Net assets
Beginning of period		82,496,288			96,050,395
End of period	$	79,114,830		$	82,496,288

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

Statements of changes in net assets Wells Fargo Equity Gateway Funds 133

	Small Company Growth Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment loss	$	(288,808	)	$	(1,603,331	)
Net realized gains (losses) on investments		(95,998,247	)		17,519,892
Net change in unrealized gains (losses) on investments		(55,183,521	)		73,745,204
Net increase (decrease) in net assets resulting from operations		(151,470,576	)		89,661,765
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		708,902,550			343,108,775
Withdrawals		(112,220,954	)		(37,300,648	)
Net increase in net assets resulting from capital share transactions		596,681,596			305,808,127
Total increase in net assets		445,211,020			395,469,892
Net assets
Beginning of period		751,385,420			355,915,528
End of period	$	1,196,596,440		$	751,385,420

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

134 Wells Fargo Equity Gateway Funds Statements of changes in net assets

	Small Company Value Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	1,286,924		$	1,850,375
Net realized gains on investments		12,552,384			16,879,349
Net change in unrealized gains (losses) on investments		(24,625,962	)		(3,678,556	)
Net increase (decrease) in net assets resulting from operations		(10,786,654	)		15,051,168
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		36,132,062			22,862,632
Withdrawals		(23,471,861	)		(28,565,086	)
Net increase (decrease) in net assets resulting from capital share transactions		12,660,201			(5,702,454	)
Total increase in net assets		1,873,547			9,348,714
Net assets
Beginning of period		215,696,223			206,347,509
End of period	$	217,569,770		$	215,696,223

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

Financial highlights Wells Fargo Equity Gateway Funds 135

	Ratio to average net assets (annualized)									Total return			Portfolio turnover rate
	Net investment income (loss)			Gross expenses			Net expenses
C&B Large Cap Value Portfolio
Year ended May 31, 2016		1.33	%		0.68	%		0.68	%		0.35	%		29	%
Year ended May 31, 2015		1.20	%		0.68	%		0.68	%		10.29	%		35	%
Year ended May 31, 2014		1.35	%		0.68	%		0.68	%		17.80	%		22	%
Year ended May 31, 2013		1.73	%		0.68	%		0.68	%		29.30	%		18	%
Year ended May 31, 2012		1.81	%		0.68	%		0.68	%		(4.61	)%		21	%
Diversified Large Cap Growth Portfolio
Year ended May 31, 2016		0.29	%		0.74	%		0.62	%		(2.28	)%		59	%
Year ended May 31, 2015		0.28	%		0.72	%		0.62	%		13.11	%		46	%
Year ended May 31, 2014		0.15	%		0.72	%		0.62	%		21.70	%		54	%
Year ended May 31, 2013		0.51	%		0.71	%		0.62	%		20.30	%		56	%
Year ended May 31, 2012		0.24	%		0.71	%		0.62	%		1.26	%		79	%
Emerging Growth Portfolio
Year ended May 31, 2016		(0.40	)%		0.80	%		0.80	%		(14.47	)%		66	%
Year ended May 31, 2015		(0.63	)%		0.80	%		0.80	%		24.02	%		56	%
Year ended May 31, 2014		(0.62	)%		0.80	%		0.80	%		11.92	%		63	%
Year ended May 31, 2013		(0.47	)%		0.80	%		0.80	%		20.53	%		65	%
Year ended May 31, 2012		(0.57	)%		0.80	%		0.80	%		(4.83	)%		75	%
Index Portfolio
Year ended May 31, 2016		2.12	%		0.11	%		0.10	%		1.62	%		4	%
Year ended May 31, 2015		1.96	%		0.11	%		0.11	%		11.69	%		4	%
Year ended May 31, 2014		1.99	%		0.10	%		0.10	%		20.33	%		5	%
Year ended May 31, 2013		2.20	%		0.09	%		0.09	%		27.22	%		4	%
Year ended May 31, 2012		2.09	%		0.10	%		0.10	%		(0.52	)%		9	%
International Growth Portfolio
Year ended May 31, 2016		1.16	%		0.99	%		0.99	%		(12.40	)%		62	%
Year ended May 31, 2015		0.76	%		1.00	%		1.00	%		5.13	%		51	%
Year ended May 31, 2014		1.13	%		1.00	%		1.00	%		16.45	%		46	%
Year ended May 31, 2013		1.63	%		1.04	%		1.04	%		30.34	%		46	%
Year ended May 31, 2012		2.04	%		0.97	%		0.90	%		(9.44	)%		69	%
International Value Portfolio
Year ended May 31, 2016		2.50	%		0.91	%		0.91	%		(11.85	)%		14	%
Year ended May 31, 2015		2.45	%		0.91	%		0.91	%		(1.04	)%		18	%
Year ended May 31, 2014		3.09	%		0.91	%		0.91	%		18.22	%		11	%
Year ended May 31, 2013		3.04	%		0.91	%		0.91	%		29.45	%		16	%
Year ended May 31, 2012		3.44	%		0.91	%		0.85	%		(21.07	)%		9	%
Large Company Value Portfolio
Year ended May 31, 2016		1.54	%		0.76	%		0.74	%		(3.92	)%		50	%
Year ended May 31, 2015		1.09	%		0.74	%		0.74	%		7.90	%		72	%
Year ended May 31, 2014		0.99	%		0.73	%		0.73	%		20.26	%		62	%
Year ended May 31, 2013		1.49	%		0.78	%		0.74	%		28.91	%		95	%
Year ended May 31, 2012		1.67	%		0.77	%		0.74	%		(6.06	)%		104	%
Small Company Growth Portfolio
Year ended May 31, 2016		(0.03	)%		0.80	%		0.80	%		(13.86	)%		49	%
Year ended May 31, 2015		(0.32	)%		0.82	%		0.82	%		18.07	%		58	%
Year ended May 31, 2014		(0.37	)%		0.83	%		0.83	%		23.47	%		77	%
Year ended May 31, 2013		(0.02	)%		0.86	%		0.86	%		31.39	%		109	%
Year ended May 31, 2012		(0.12	)%		0.83	%		0.83	%		(10.75	)%		107	%

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

136 Wells Fargo Equity Gateway Funds Financial highlights

	Ratio to average net assets (annualized)									Total return			Portfolio turnover rate
	Net investment income			Gross expenses			Net expenses
Small Company Value Portfolio
Year ended May 31, 2016		0.62	%		0.85	%		0.85	%		(4.96	)%		72	%
Year ended May 31, 2015		0.89	%		0.84	%		0.84	%		7.29	%		54	%
Year ended May 31, 2014		0.89	%		0.85	%		0.85	%		18.09	%		47	%
Year ended May 31, 2013		0.58	%		0.85	%		0.85	%		30.76	%		57	%
Year ended May 31, 2012		0.69	%		0.84	%		0.84	%		(7.17	)%		60	%

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

Notes to financial statements Wells Fargo Equity Gateway Funds 137

1. ORGANIZATION

Wells Fargo Master 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 following portfolios: Wells Fargo C&B Large Cap Value Portfolio (“C&B Large Cap Value Portfolio”), Wells Fargo Diversified Large Cap Growth Portfolio (“Diversified Large Cap Growth Portfolio”), Wells Fargo Emerging Growth Portfolio (“Emerging Growth Portfolio”), Wells Fargo Index Portfolio (“Index Portfolio”), Wells Fargo International Growth Portfolio (“International Growth Portfolio”), Wells Fargo International Value Portfolio (“International Value Portfolio”), Wells Fargo Large Company Value Portfolio (“Large Company Value Portfolio”), Wells Fargo Small Company Growth Portfolio (“Small Company Growth Portfolio”), and Wells Fargo Small Company Value Portfolio (“Small Company Value Portfolio”), (each a “Portfolio”, collectively, the “Portfolios”). Each Portfolio is a diversified series of the Trust.

The Portfolios, which are master portfolios in a master/feeder structure, offer their shares to multiple feeder funds and other affiliated master portfolios rather than directly to the public.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each Portfolio, 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), although the Portfolios may deviate from this calculation time under unusual or unexpected circumstances.

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 principal 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 Portfolio’s Valuation Procedures.

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 of Wells Fargo Funds Management, LLC (“Funds Management”).

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 Portfolios 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 May 31, 2016, such fair value pricing was not 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. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued normally 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.

138 Wells Fargo Equity Gateway Funds Notes to financial statements

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

Foreign currency translation

The accounting records of the Portfolios are maintained in U.S. dollars. The value 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.

Security loans

The Portfolios may lend their 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 Portfolios continue to receive interest or dividends on the securities loaned. The Portfolios receive collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Portfolios on the next business day. In a securities lending transaction, the net asset value of the Portfolios 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 Portfolios fluctuate from time to time. In the event of default or bankruptcy by the borrower, the Portfolios 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 Portfolios have the right under the lending agreement to recover the securities from the borrower on demand.

The Portfolios lend their 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”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). 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 Statements of Operations.

Futures contracts

The Portfolios are subject to interest rate risk or equity price risk in the normal course of pursuing its investment objectives. A Portfolio 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 Portfolio 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 Statements of Assets and Liabilities as an asset or liability and in the Statements of

Notes to financial statements Wells Fargo Equity Gateway Funds 139

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 Portfolio 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.

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.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

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

Federal and other taxes

Each Portfolio is treated as a separate entity for federal income tax purposes. The Portfolios are not required to pay federal income taxes on their net investment income and net capital gain as they are treated as partnerships for federal income tax purposes. All interest, dividends, gains and losses of a Portfolio are deemed to have been “passed through” to the interest holders in proportion to their holdings of the Portfolio regardless of whether such interest, dividends and gains have been distributed by the Portfolio.

Each Portfolio’s income tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal revenue authority. Management has analyzed each Portfolio’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.

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 each Portfolio’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). Each Portfolio’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 Portfolio’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.

140 Wells Fargo Equity Gateway Funds Notes to financial statements

The following is a summary of the inputs used in valuing each Portfolio’s assets and liabilities as of May 31, 2016:

C&B Large Cap Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	39,284,297	$	0	$	0	$	39,284,297
Consumer staples		19,100,896		0		0		19,100,896
Energy		17,758,921		0		0		17,758,921
Financials		76,240,999		0		0		76,240,999
Health care		44,180,838		0		0		44,180,838
Industrials		53,765,968		0		0		53,765,968
Information technology		14,076,445		0		0		14,076,445
Materials		14,028,552		0		0		14,028,552
Short-term investments
Investment companies		13,862,559		0		0		13,862,559
Investments measured at net asset value*								12,454,900
Total assets	$	292,299,475	$	0	$	0	$	304,754,375

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $12,454,900 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Diversified Large Cap Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	29,503,276	$	0	$	0	$	29,503,276
Consumer staples		9,135,507		0		0		9,135,507
Energy		1,379,452		0		0		1,379,452
Financials		2,559,149		0		0		2,559,149
Health care		16,475,660		0		0		16,475,660
Industrials		7,788,848		0		0		7,788,848
Information technology		43,031,066		0		0		43,031,066
Materials		3,378,649		0		0		3,378,649
Short-term investments
Investment companies		2,118,196		0		0		2,118,196
Investments measured at net asset value*								3,113,406
Total assets	$	115,369,803	$	0	$	0	$	118,483,209

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolios investment in Securities Lending Cash Investment, LLC valued at $3,113,406 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo Equity Gateway Funds 141

Emerging Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	114,950,584	$	0	$	0	$	114,950,584
Energy		25,543,672		0		0		25,543,672
Financials		48,113,098		0		0		48,113,098
Health care		289,674,989		0		0		289,674,989
Industrials		103,520,118		0		0		103,520,118
Information technology		300,000,671		0		0		300,000,671
Short-term investments
Investment companies		14,978,235		0		0		14,978,235
Investments measured at net asset value*								92,823,723
Total assets	$	896,781,367	$	0	$	0	$	989,605,090

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $92,823,723 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Index Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	289,694,308	$	0	$	0	$	289,694,308
Consumer staples		232,754,716		0		0		232,754,716
Energy		164,580,503		0		0		164,580,503
Financials		376,210,320		0		0		376,210,320
Health care		339,368,191		0		0		339,368,191
Industrials		231,365,470		0		0		231,365,470
Information technology		470,278,237		0		0		470,278,237
Materials		65,656,243		0		0		65,656,243
Telecommunication services		61,249,364		0		0		61,249,364
Utilities		77,036,436		0		0		77,036,436
Short-term investments
Investment companies		24,960,298		0		0		24,960,298
U.S. Treasury securities		1,806,435		0		0		1,806,435
Investments measured at net asset value*								12,693,253
Total assets	$	2,334,960,521	$	0	$	0	$	2,347,653,774
Liabilities
Futures contracts	$	36,000	$	0	$	0	$	36,000
Total liabilities	$	36,000	$	0	$	0	$	36,000

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $12,693,253 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

142 Wells Fargo Equity Gateway Funds Notes to financial statements

International Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Belgium	$	2,938,206	$	0	$	0	$	2,938,206
Canada		2,250,330		0		0		2,250,330
China		2,541,486		0		0		2,541,486
Denmark		381,268		0		0		381,268
France		12,797,598		0		0		12,797,598
Germany		20,329,351		0		0		20,329,351
Hong Kong		4,686,104		0		0		4,686,104
Ireland		7,904,971		0		0		7,904,971
Japan		18,993,997		0		0		18,993,997
Mexico		1,246,753		0		0		1,246,753
South Korea		14,650		0		0		14,650
Spain		2,487,845		0		0		2,487,845
Sweden		1,433,455		0		0		1,433,455
Switzerland		12,652,706		0		0		12,652,706
Taiwan		1,785,144		0		0		1,785,144
United Kingdom		33,515,136		0		0		33,515,136
United States		8,935,376		0		0		8,935,376
Participation Notes
Ireland		0		2,418,886		0		2,418,886
Preferred stocks
Germany		1,767,949		0		0		1,767,949
Short-term investments
Investment companies		9,867,059		0		0		9,867,059
Investments measured at net asset value*								2,506,158
Total assets	$	146,529,384	$	2,418,886	$	0	$	151,454,428

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $2,506,158 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo Equity Gateway Funds 143

International Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Australia	$	28,434,311	$	0	$	48,710	$	28,483,021
Austria		5,746,241		0		0		5,746,241
Belgium		4,130,894		0		0		4,130,894
Brazil		4,150,492		0		0		4,150,492
Canada		7,819,869		0		0		7,819,869
China		14,102,164		0		0		14,102,164
Czech Republic		1,044,370		0		0		1,044,370
Denmark		1,226,054		0		0		1,226,054
Finland		1,974,732		0		0		1,974,732
France		45,224,124		0		0		45,224,124
Germany		47,995,403		0		0		47,995,403
Hong Kong		9,988,633		0		0		9,988,633
Hungary		1,196,850		0		0		1,196,850
India		2,865,322		0		0		2,865,322
Ireland		4,655,800		0		0		4,655,800
Israel		5,473,993		0		0		5,473,993
Italy		5,639,354		0		0		5,639,354
Japan		109,897,120		0		0		109,897,120
Liechtenstein		599,721		0		0		599,721
Netherlands		6,898,832		0		0		6,898,832
Norway		6,230,948		0		0		6,230,948
Poland		1,982,872		0		0		1,982,872
Portugal		1,401,875		0		0		1,401,875
Russia		4,194,456		0		0		4,194,456
Singapore		4,050,076		0		0		4,050,076
South Africa		1,860,099		0		0		1,860,099
South Korea		12,328,179		0		0		12,328,179
Spain		8,854,110		0		0		8,854,110
Sweden		10,406,680		0		0		10,406,680
Switzerland		31,110,463		0		0		31,110,463
Taiwan		2,154,895		0		0		2,154,895
Thailand		5,047,806		0		0		5,047,806
United Kingdom		93,883,267		0		0		93,883,267
Preferred stocks
Brazil		978,198		0		0		978,198
Rights
Brazil		0		6,779		0		6,779
Short-term investments
Investment companies		2,530,851		0		0		2,530,851
Investments measured at net asset value*								14,316,539
Total assets	$	496,079,054	$	6,779	$	48,710	$	510,451,082

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $14,316,539 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

144 Wells Fargo Equity Gateway Funds Notes to financial statements

Large Company Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	5,992,355	$	0	$	0	$	5,992,355
Consumer staples		5,245,325		0		0		5,245,325
Energy		8,764,370		0		0		8,764,370
Financials		22,808,234		0		0		22,808,234
Health care		10,075,327		0		0		10,075,327
Industrials		8,482,370		0		0		8,482,370
Information technology		8,745,638		0		0		8,745,638
Materials		2,668,280		0		0		2,668,280
Telecommunication services		1,794,709		0		0		1,794,709
Utilities		3,348,498		0		0		3,348,498
Short-term investments
Investment companies		1,123,879		0		0		1,123,879
Investments measured at net asset value*								1,759,295
Total assets	$	79,048,985	$	0	$	0	$	80,808,280

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $1,759,295 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Small Company Growth Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	167,660,319	$	0	$	0	$	167,660,319
Consumer staples		31,118,946		0		0		31,118,946
Energy		32,226,308		0		0		32,226,308
Financials		112,573,141		0		0		112,573,141
Health care		277,040,158		0		0		277,040,158
Industrials		196,541,616		0		0		196,541,616
Information technology		323,772,888		0		0		323,772,888
Materials		24,505,990		0		0		24,505,990
Short-term investments
Investment companies		40,370,488		0		0		40,370,488
Investments measured at net asset value*								151,177,536
Total assets	$	1,205,809,854	$	0	$	0	$	1,356,987,390

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $151,177,536 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo Equity Gateway Funds 145

Small Company Value Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	31,528,281	$	0	$	0	$	31,528,281
Consumer staples		5,274,964		0		0		5,274,964
Energy		13,960,510		0		0		13,960,510
Financials		85,916,166		0		0		85,916,166
Health care		8,309,486		0		0		8,309,486
Industrials		16,923,555		0		0		16,923,555
Information technology		32,348,308		0		0		32,348,308
Materials		8,659,206		0		0		8,659,206
Utilities		10,535,582		0		0		10,535,582
Warrants
Health care		0		0		0		0
Short-term investments
Investment companies		4,875,803		0		0		4,875,803
Investments measured at net asset value*								5,965,825
Total assets	$	218,331,861	$	0	$	0	$	224,297,686

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Assets and Liabilities. The Portfolio’s investment in Securities Lending Cash Investment, LLC valued at $5,965,825 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

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

The Portfolios recognize transfers between levels within the fair value hierarchy at the end of the reporting period. At May 31, 2016, the Portfolios did not have any transfers into/out of Level 1, Level 2 or Level 3 except International Value Portfolio which had an immaterial transfer between Level 1 and Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo. The adviser is responsible for implementing investment policies and guidelines and for supervising the subadvisers, who are responsible for day-to-day portfolio management of the Portfolios. Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee which is calculated based on the average daily net assets of each Portfolio.

Funds Management has retained the services of certain subadvisers to provide daily portfolio management for the Portfolios. Funds Management has engaged WellsCap, Peregrine Capital Management, Inc. (“Peregrine”) (an affiliate of Funds Management and a direct wholly owned subsidiary of Wells Fargo), Artisan Partners Limited Partnership, Cooke & Bieler, L.P., Golden Capital Management, LLC (an affiliate of Funds Management), LSV Asset Management, and Phocas Financial Corporation as subadvisers.

The fees for subadvisory services are borne by Funds Management. The subadvisers are each entitled to receive from Funds Management an annual subadvisory fee which is calculated based on the average daily net assets of each Portfolio.

146 Wells Fargo Equity Gateway Funds Notes to financial statements

The annual advisory and subadvisory fee rates for each Portfolio are as follows:

	Advisory fee						Effective rate for the year ended May 31, 2016				Subadvisory fee
	starting at			declining to						Subadviser	starting at	declining to
C&B Large Cap Value Portfolio		0.65	%		0.475	%		0.65	%	Cooke & Bieler, L.P.	0.38%		0.30	%
Diversified Large Cap Growth Portfolio		0.65			0.475			0.65		WellsCap	0.30		0.20
Emerging Growth Portfolio		0.80			0.68			0.79		WellsCap	0.55		0.40
Index Portfolio		0.10			0.05			0.09		Golden Capital Management, LLC	0.05		0.02
International Growth Portfolio		0.85			0.70			0.85		Artisan Partners Limited Partnership	0.80		0.50
International Value Portfolio		0.85			0.70			0.85		LSV Asset Management	0.35		0.30
Large Company Value Portfolio		0.65			0.475			0.65		Phocas Financial Corporation	0.29		0.20
Small Company Growth Portfolio		0.80			0.68			0.79		Peregrine Capital Management, Inc.	0.50		0.45
Small Company Value Portfolio		0.80			0.68			0.80		Peregrine Capital Management, Inc.	0.45		0.40

Funds Management has voluntarily waived and/or reimbursed advisory fees to the extent necessary to maintain certain net operating expense ratios for the Portfolios.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended May 31, 2016 were as follows:

	Purchases at cost		Sales proceeds
C&B Large Cap Value Portfolio	$	85,183,352	$	114,963,169
Diversified Large Cap Growth Portfolio		66,502,732		72,054,473
Emerging Growth Portfolio		645,259,305		731,708,252
Index Portfolio		102,056,002		425,715,055
International Growth Portfolio		93,383,839		88,165,073
International Value Portfolio		116,965,232		66,237,230
Large Company Value Portfolio		40,427,589		38,186,695
Small Company Growth Portfolio		1,109,978,075		480,747,665
Small Company Value Portfolio		164,018,108		145,721,707

6. INVESTMENTS IN AFFILIATES

An affiliated investment is a company which is under common ownership or control of the Portfolio or which the Portfolio has ownership of at least 5% of the outstanding voting shares. The following is a summary of transactions for the long-term holdings of issuers that were either affiliates of Index Portfolio at the beginning of the period or the end of the period.

	Shares, beginning of period		Shares purchases		Shares sold		Shares, end of period		Value, end of period		Income from affiliated securities		Realized gains on affiliated securities
Wells Fargo & Company		674,695		0		90,743		583,952	$	29,618,045	$	944,748	$	1,980,988

7. DERIVATIVE TRANSACTIONS

During the year ended May 31, 2016, Index Portfolio used uninvested cash to enter into futures contracts to gain market exposure.

At May 31, 2016, Index Portfolio had long futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at May 31, 2016		Unrealized gains
6-16-2016	Jefferies Bache	60 Long		S&P 500 Index	$	31,423,500	$	1,118,000

Notes to financial statements Wells Fargo Equity Gateway Funds 147

Index Portfolio had an average notional amount of $29,775,935 in long futures contracts outstanding during the year ended May 31, 2016.

The payable for daily variation margin on open futures contracts reflected in the Statements of Assets and Liabilities only represents the current day’s variation margin. The realized gains or losses and change in unrealized gains or losses on derivative instruments are reflected in the Statements of Operations.

For certain types of derivative transactions, the Portfolios have 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 Portfolio 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 Portfolios under ISDA Master Agreements or similar agreements, if any, will be reported separately in the Statements of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments or 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 Statements of Assets and Liabilities are not offset across transactions between the Portfolio and the applicable counterparty. A reconciliation of the gross amounts on the Statements 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 Statements of Assets and Liabilities		Amounts subject to netting agreements		Collateral pledged1			Net amount of liabilities
Index Portfolio	Futures – variation margin	Jefferies Bache	$	36,000	$	0	$	(36,000	)	$	0

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

8. CONCENTRATION RISKS

Concentration risks result from exposure to a limited number of sectors. Portfolios that invest a substantial portion of their assets in a sector may be more affected by changes in that sector than would be a portfolio whose investments are not heavily weighted in any sector. The Portfolio of Investments or Summary Portfolio of Investments includes information on each Portfolio’s holdings, including sector composition, country and/or geographical composition as relevant.

9. INDEMNIFICATION

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

148 Wells Fargo Equity Gateway Funds Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO MASTER TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments or summary portfolios of investments (for Wells Fargo Index Portfolio), of the Wells Fargo C&B Large Cap Value Portfolio, Wells Fargo Diversified Large Cap Growth Portfolio, Wells Fargo Emerging Growth Portfolio, Wells Fargo Index Portfolio, Wells Fargo International Growth Portfolio, Wells Fargo International Value Portfolio, Wells Fargo Large Company Value Portfolio, Wells Fargo Small Company Growth Portfolio and Wells Fargo Small Company Value Portfolio (formerly known as Wells Fargo Advantage C&B Large Cap Value Portfolio, Wells Fargo Advantage Diversified Large Cap Growth Portfolio, Wells Fargo Advantage Emerging Growth Portfolio, Wells Fargo Advantage Index Portfolio, Wells Fargo Advantage International Growth Portfolio, Wells Fargo Advantage International Value Portfolio, Wells Fargo Advantage Large Company Value Portfolio, Wells Fargo Advantage Small Company Growth Portfolio and Wells Fargo Advantage Small Company Value Portfolio, respectively), nine of the portfolios constituting the Wells Fargo Master Trust (collectively the “Portfolios”), as of May 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned Portfolios of Wells Fargo Master Trust as of May 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

Other information (unaudited) Wells Fargo Equity Gateway Funds 149

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, the percentage of ordinary income dividends qualifying for the corporate dividends-received deduction was as follows for the fiscal year ended May 31, 2016:

	Dividends-received deduction
C&B Large Cap Value Fund		100.00	%
Diversified Equity Fund		100.00
Index Fund		98.84
Small Company Value Fund		100.00

Pursuant to Section 852 of the Internal Revenue Code, the following amounts were designated as long-term capital gain distributions for the fiscal year ended May 31, 2016:

	Long-term capital gain distributions
C&B Large Cap Value Fund	$	8,527,222
Diversified Equity Fund		25,311,654
Emerging Growth Fund		101,711,376
Index Fund		140,953,431
Small Company Growth Fund		7,354,882

Pursuant to Section 854 of the Internal Revenue Code, the following amounts of income dividends paid during the fiscal year ended May 31, 2016 have been designated as qualified dividend income (QDI):

	QDI
C&B Large Cap Value Fund	$	2,808,799
Diversified Equity Fund		1,825,620
Index Fund		45,123,990
International Value Fund		8,674,487
Small Company Value Fund		431,180

For the fiscal year ended May 31, 2016, the following amounts have been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Short-term capital gain dividends
Diversified Equity Fund	$	765,257
Index Fund		1,272,421

Pursuant to Section 853 of the Internal Revenue Code, International Value Fund expects to designate amounts as foreign taxes paid for the fiscal year ended May 31, 2016. Additional details will be available in the semiannual report.

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

150 Wells Fargo Equity Gateway Funds Other information (unaudited)

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings are publicly available on the website (wellsfargofunds.com) on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) is publicly available on the website on a monthly, seven-day or more delayed basis. Each Fund and Portfolio 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, each 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 Equity Gateway Funds 151

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 142 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

152 Wells Fargo Equity Gateway Funds 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

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

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years 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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	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.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016*	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
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 the International Value Fund, International Growth Portfolio and International Value Portfolio and Assistant Treasurer of the remaining funds in this shareholder report. In addition, Jeremy DePalma acts as Treasurer of 66 other funds and Assistant Treasurer of 60 other funds in the Fund Complex. Nancy Wiser serves as Treasurer of the remaining funds in this shareholder report as well as 60 other funds.

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.

* Michael Whitaker became Chief Compliance Officer effective May 16, 2016.

Other information (unaudited) Wells Fargo Equity Gateway Funds 153

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

Wells Fargo C&B Large Cap Value Fund, Wells Fargo Diversified Equity Fund, Wells Fargo Emerging Growth Fund, Wells Fargo Index Fund, Wells Fargo International Value Fund, Wells Fargo Small Company Growth Fund, Wells Fargo Small Company Value Fund, Wells Fargo C&B Large Cap Value Portfolio, Wells Fargo Diversified Large Cap Growth Portfolio, Wells Fargo Emerging Growth Portfolio, Wells Fargo Index Portfolio, Wells Fargo International Growth Portfolio, Wells Fargo International Value Portfolio, Wells Fargo Large Company Value Portfolio, Wells Fargo Small Company Growth Portfolio and Wells Fargo Small Company Value Portfolio

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (each, a “Board” and collectively, the “Boards”) of each of Wells Fargo Funds Trust (“Funds Trust”) and Wells Fargo Master Trust (“Master Trust”) (collectively, the “Trusts”) must determine annually whether to approve the continuation of the Trusts’ investment management, advisory and sub-advisory agreements, as applicable. In this regard, at an in-person meeting held on May 24-25, 2016 (the “Meeting”), the Funds Trust Board, all the members of which have no direct or indirect interest in the investment management, advisory and sub-advisory agreements and are not “interested persons” of the Trusts, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for each of the Wells Fargo C&B Large Cap Value Fund, Wells Fargo Diversified Equity Fund, Wells Fargo Emerging Growth Fund, Wells Fargo Index Fund, Wells Fargo International Value Fund, Wells Fargo Small Company Growth Fund and Wells Fargo Small Company Value Fund (individually, a “Gateway Fund” and collectively, the “Gateway Funds”) an investment management agreement (the “Gateway Fund Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”).

At the Meeting, the Master Trust Board, all the members of which are Independent Trustees, reviewed and approved an investment advisory agreement (the “Master Portfolio Advisory Agreement”) with Funds Management for each of the Wells Fargo C&B Large Cap Value Portfolio, Wells Fargo Diversified Large Cap Growth Portfolio, Wells Fargo Emerging Growth Portfolio, Wells Fargo Index Portfolio, Wells Fargo International Growth Portfolio, Wells Fargo International Value Portfolio, Wells Fargo Large Company Value Portfolio, Wells Fargo Small Company Growth Portfolio and Wells Fargo Small Company Value Portfolio (individually, a “Master Portfolio” and collectively, the “Master Portfolios”). The Gateway Funds and the Master Portfolios are collectively referred to as the “Funds.”

The Master Trust Board also reviewed and approved the following at the Meeting: (i) an investment sub-advisory agreement with Wells Capital Management Incorporated (“WellsCap”) for each of the Diversified Large Cap Growth Portfolio and Emerging Growth Portfolio; (ii) an investment sub-advisory agreement with Artisan Partners Limited Partnership (“Artisan”) for the International Growth Portfolio; (iii) an investment sub-advisory agreement with Cooke & Bieler L.P. (“Cooke & Bieler”) for the C&B Large Cap Value Portfolio; (iv) an investment sub-advisory agreement with LSV Asset Management (“LSV”) for the International Value Portfolio; (v) an investment sub-advisory agreement with Peregrine Capital Management, Inc. (“Peregrine”) for each of the Small Company Growth Portfolio and Small Company Value Portfolio; (vi) an investment sub-advisory agreement with Golden Capital Management, LLC (“Golden”) for the Index Portfolio; and (vii) an investment sub-advisory agreement with Phocas Financial Corporation (“Phocas”) for the Large Company Value Portfolio (collectively, the “Sub-Advisory Agreements”). WellsCap, Artisan, Cooke & Bieler, LSV, Peregrine, Golden and Phocas are collectively referred to as the “Sub-Advisers”, and the Gateway Fund Management Agreement, the Master Portfolio Advisory Agreement and the Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements.”

The Diversified Equity Fund is a gateway blended fund that invests all of its assets in multiple Master Portfolios. The C&B Large Cap Value Fund, Emerging Growth Fund, Index Fund, International Value Fund, Small Company Growth Fund and Small Company Value Fund are gateway feeder funds that invest substantially all of their assets in the C&B Large Cap Value Portfolio, Emerging Growth Portfolio, Index Portfolio, International Value Portfolio, Small Company Growth Portfolio and Small Company Value Portfolio, respectively. Each of these Master Portfolios has a substantially similar investment objective and substantially similar investment strategies to the respective Gateway Fund. Information provided to the Boards regarding these Funds is also applicable to the Master Portfolios identified above, as relevant.

At the Meeting, the Boards considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Advisers and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2016, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Boards have adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the Boards in the discharge of their duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

154 Wells Fargo Equity Gateway Funds Other information (unaudited)

In providing information to the Boards, Funds Management and the Sub-Advisers were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Boards’ annual contract renewal process earlier in 2016. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Boards considered not only the specific information presented in connection with the Meetings, but also the knowledge gained over time through interaction with Funds Management and the Sub-Advisers about various topics. In this regard, the Boards reviewed reports of Funds Management at each of their quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Boards and the teams mentioned above confer with portfolio managers at various times throughout the year. The Boards did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Funds Trust Board unanimously approved the continuation of the Gateway Fund Management Agreement for a one-year period. Additionally, after its deliberations, the Master Trust Board unanimously approved the continuation of the Master Portfolio Advisory Agreement and each Sub-Advisory Agreement for a one-year term. The Boards also determined that the compensation payable to Funds Management and each of the Sub-Advisers was reasonable. The Boards considered the approval of the Advisory Agreements for the Funds as part of their consideration of agreements for funds across the complex, but their approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Boards in support of their approvals.

Nature, extent and quality of services

The Boards received and considered various information regarding the nature, extent and quality of services provided to the Funds by Funds Management and the Sub-Advisers under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services, as well as, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Funds.

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

Fund performance and expenses

The Boards considered the performance results for each of the Funds over various time periods ended December 31, 2015. The Boards considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the respective Funds (each, a “Universe”), and in comparison to each Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Boards received a description of the methodology used by Broadridge to select the mutual funds in each performance Universe.

The Funds Trust Board noted that the performance of each Gateway Fund (Administrator Class) relative to its respective Universe was as follows: (i) the performance of the C&B Large Cap Value Fund was higher than or in range of the average performance of its Universe for all periods under review; (ii) the performance of the Diversified Equity Fund was higher than or in range of the average performance of its Universe for all periods under review except the three- and ten-year periods; (iii) the performance of the Emerging Growth Fund was higher than or in range of the average performance of its Universe for all periods under review except the one-year period; (iv) the performance of the Index Fund was higher than the average performance of its Universe for all periods under review; (v) the performance of the International Value Fund was higher than or in range of the average performance of its Universe for all periods under review; (vi) the performance of the Small Company Growth Fund was higher than the average performance of its Universe for all periods under review except the one-year period; and (vii) the performance of the Small Company Value Fund was higher than the average performance of its Universe for all periods under review except the ten-year period.

The Funds Trust Board also noted that the performance of each Gateway Fund relative to its respective benchmark was as follows: (i) the performance of the C&B large Cap Value Fund was higher than or in range of its benchmark, the Russell 1000 Value Index, for all periods under review except the five-year period; (ii) the performance of the Diversified Equity Fund was lower than its benchmark, the Diversified Equity Composite Index, which is a proprietary index used by the Funds Trust Board to help it assess the Diversified Equity Fund’s relative performance, for all periods under review; (iii) the performance of the Emerging Growth Fund was lower than its benchmark, the Russell 2000^® Growth Index, for all periods

Other information (unaudited) Wells Fargo Equity Gateway Funds 155

under review; (iv) the performance of the Index Fund was in range of its benchmark, the S&P 500 Index, for all periods under review; (v) the performance of the International Value Fund was higher than or in range of its benchmark, the MSCI EAFE Value Index, for all periods under review except the three-year period; (vi) the performance of the Small Company Growth Fund was higher than or in range of its benchmark, the Russell 2000^® Growth Index, for all periods under review except the one-year period; and (vii) the performance of the Small Company Value Fund was higher than its benchmark, the Russell 2000^® Value Index, for all periods under review except the ten-year period.

The Funds Trust Board received information concerning, and discussed factors contributing to the underperformance of certain Gateway Funds for certain periods as noted above. Funds Management advised the Funds Trust Board about certain market conditions and investment decisions that it believed contributed to such underperformance. The Master Trust Board took note of the performance of the Master Portfolios in the context of reviewing the performance of the Gateway Funds.

The Funds Trust Board also received and considered information regarding each Gateway Fund’s net operating expense ratios, which include fees and expenses of the corresponding Master Portfolio, and their various components, including actual management fees assessed at the Gateway Fund and Master Portfolio levels, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Funds Trust Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to each Gateway Fund (the “Groups”). The Funds Trust Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Funds Trust Board noted that the net operating expense ratios of the Gateway Funds were as follows: (i) the net operating expense ratios of the C&B Large Cap Value Fund were lower than the median net operating expense ratios of its expense Groups for all share classes; (ii) the net operating expense ratios of the Diversified Equity Fund were lower than the median net operating expense ratios of its expense Groups for all share classes; (iii) the net operating expense ratios of the Emerging Growth Fund were equal to or lower than the median net operating expense ratios for its expense Groups for all share classes; (iv) the net operating expense ratios of the Index Fund were lower than the median net operating expense ratios for its expense Groups for all share classes; (v) the net operating expense ratios of the International Value Fund were equal to or lower than the median net operating expense ratios for its expense Groups for all share classes; (vi) the net operating expense ratios of the Small Company Growth Fund were lower than or in range of the net operating expense ratios for its expense Groups for all share classes; and (vii) the net operating expense ratios of the Small Company Value Fund were lower than or equal to the net operating expense ratios for its expense Groups for all share classes.

With respect to the Master Portfolios, the Master Trust Board reviewed the fee rates that are payable to Funds Management for investment advisory services (as discussed below), which are the only fees charged at the Master Portfolio level, relative to a corresponding expense Group.

The Boards took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management, advisory and sub-advisory fee rates

Except with respect to the Diversified Equity Fund, the Funds Trust Board noted that Funds Management receives no advisory fees from a Gateway Fund as long as the Gateway Fund continues to invest all (or substantially all) of its assets in a single master portfolio. If a Gateway Fund were to change its investment structure so that it begins to invest in two or more master portfolios (a gateway blended fund), Funds Management would be entitled to receive an annual fee of 0.25% of the Gateway Fund’s average daily net assets for providing investment advisory services to the Gateway Fund, including allocating the Gateway Fund’s assets among various master portfolios. The Funds Trust Board noted that the Diversified Equity Fund is a gateway blended fund that invests in multiple master portfolios and therefore pays an advisory fee to Funds Management.

The Funds Trust Board reviewed and considered the fee rates that are payable by each Gateway Fund to Funds Management under the Gateway Fund Management Agreement, as well as the contractual fee rates payable by each Gateway Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”).

The Master Trust Board reviewed and considered the contractual investment advisory fee rates that are payable by the Master Portfolios to Funds Management for investment advisory services under the Master Portfolio Advisory Agreement (the “Advisory Agreement Rates”). The Master Trust Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Advisers for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

156 Wells Fargo Equity Gateway Funds Other information (unaudited)

Among other information reviewed by the Funds Trust Board was a comparison of each Gateway Fund’s Management Rate, which, except in the case of the Diversified Equity Fund, include the advisory fees paid at the Master Portfolio level, with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Funds Trust Board noted that the Management Rates of the Gateway Funds were as follows: (i) the Management Rates of the C&B Large Cap Value Fund were lower than or equal to the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes; (ii) the Management Rates for the Diversified Equity Fund were lower than the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes; (iii) the Management Rates for the Emerging Growth Fund were equal to or in range of the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes; (iv) the Management Rates for the Index Fund were in range of the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes; (v) the Management Rates for the International Value Fund were in range of the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes except the Administrator Class; (vi) the Management Rates for the Small Company Growth Fund were lower than or in range of the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes; and (vii) the Management Rates for the Small Company Value Fund were lower than the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes.

The Master Trust Board reviewed a comparison of the Advisory Agreement Rates of each Master Portfolio with those of other funds in each Master Portfolio’s respective expense Group at a common asset level. The Master Trust Board noted that the Advisory Agreement Rates of each Master Portfolio were lower than or equal to the median rate for the Master Portfolio’s respective expense Group. The Master Trust Board also discussed and accepted Funds Management’s proposal to revise the Master Portfolio Advisory Agreement to reduce fees at all asset levels for the International Growth Portfolio and the International Value Portfolio.

The Master Trust Board also received and considered information about the portions of the total management fees that were retained by Funds Management after payment of the fees to the Sub-Advisers for sub-advisory services. With respect to the Master Portfolios sub-advised by Artisan, Cooke & Bieler, LSV and Phocas, the Master Trust Board considered this amount in comparison to the median amount retained by advisers to funds in a sub-advised expense universe that was determined by Broadridge to be similar to the respective Master Portfolio. In assessing the reasonableness of these amounts, the Master Trust Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Advisers, and about Funds Management’s on-going oversight services. However, given the current affiliation between Funds Management and WellsCap, Peregrine and Golden, the Master Trust Board ascribed limited relevance to the allocation of the fees between them. The Master Trust Board noted that the Small Company Growth Portfolio and Small Company Value Portfolio were each subject to a reduction in its investment sub-advisory fee breakpoint effective May 1, 2016 due to a new breakpoint schedule in the Sub-Advisory Agreement with Peregrine that was approved by the Board at the April 2016 Board meeting. With respect to Artisan, Cooke & Bieler, LSV and Phocas, the Master Trust Board considered that the Sub-Advisory Agreement Rates paid to each of these Sub-Advisers had been negotiated by Funds Management on an arm’s-length basis.

Other than with respect to the Wells Fargo Diversified Large Cap Growth Portfolio, the Boards also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Advisers to other types of clients with investment strategies similar to those of the Funds. In this regard, the Boards received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

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

Profitability

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

Other information (unaudited) Wells Fargo Equity Gateway Funds 157

also received and considered information concerning the profitability of WellsCap, Peregrine, and Golden, if any, from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Funds was subsumed in the Wells Fargo and Funds Management profitability analysis. The Boards did not receive or consider profitability information with respect to Artisan, Cooke & Bieler, LSV and Phocas, as the sub-advisory fees paid to them had been negotiated by Funds Management on an arm’s-length basis.

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

Economies of scale

With respect to possible economies of scale, the Boards noted the existence of breakpoints in each Master Portfolio’s advisory fee structure and each Gateway Fund’s management fee structure, which operate generally to reduce the Funds’ expense ratios as the Funds grow in size. They considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Master Trust Board discussed and accepted Funds Management’s proposal to revise the Master Portfolio Advisory Agreement to reduce fees at all asset levels for the International Growth Portfolio and the International Value Portfolio. The Boards also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Funds and the fund family as a whole. The Boards considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Boards concluded that the Funds’ fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Funds and their shareholders.

Other benefits to Funds Management and the Sub-Advisers

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

The Boards also reviewed information about soft dollar credits earned and utilized by WellsCap, Artisan, Cooke & Bieler, Peregrine and Golden, fees earned by Funds Management and WellsCap from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on their consideration of the factors and information they deemed relevant, including those described here, the Boards did not find that any ancillary benefits received by Funds Management and its affiliates, including WellsCap, Peregrine and Golden, or by Artisan, Cooke & Bieler, LSV or Phocas, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Funds Trust Board unanimously approved the continuation of the Gateway Fund Management Agreement for a one-year period. Additionally, at the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Master Trust Board unanimously approved the continuation of the Master Portfolio Advisory Agreement for a one-year term and each Sub-Advisory Agreement for a one-year term. The Boards also determined that the compensation payable to Funds Management and each of the Sub-Advisers was reasonable.

158 Wells Fargo Equity Gateway Funds List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, email, visit the Funds’ 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 Funds. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Funds’ 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

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

243137 07-16 AEGLD/AR111 05-16

Annual Report

May 31, 2016

Income Funds

n Wells Fargo Core Bond Fund

n Wells Fargo Real Return Fund

Reduce clutter. Save trees.

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

Letter to shareholders	2
Performance highlights	4
Fund expenses	12
Portfolios of investments
Wells Fargo Core Bond Fund	14
Wells Fargo Real Return Fund	14
Financial statements
Statements of assets and liabilities	15
Statements of operations	16
Statements of changes in net assets	17
Financial highlights	20
Notes to financial statements	24
Report of independent registered public accounting firm	29

Master portfolios
Portfolio of investments
Wells Fargo Core Bond Portfolio (Summary portfolio of investments)*	30
Wells Fargo Real Return Bond Portfolio	36
Financial statements
Statements of assets and liabilities	45
Statements of operations	46
Statements of changes in net assets	47
Financial highlights	49
Notes to financial statements	50
Report of independent registered public accounting firm	56
Other information	57
List of abbreviations	64

* 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/core-bond-ann.pdf or by calling Wells Fargo Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSR, is also available on the SEC’s website at sec.gov.

The views expressed and any forward-looking statements are as of May 31, 2016, 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 Income Funds Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

The U.S. Federal Reserve (Fed) embarked on a tightening cycle and raised the target federal funds rate to between 0.25% and 0.50% in December 2015.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Income Funds for the 12-month period that ended May 31, 2016. Central-bank policies, moderate U.S. economic growth, and weakness in certain emerging markets economies and commodities drove bond markets. The Barclays U.S. Aggregate Bond Index¹ returned 2.99% during the reporting period.

Monetary policies remained accommodative despite a move to normalize policy in the U.S.

The U.S. Federal Reserve (Fed) embarked on a tightening cycle and raised the target federal funds rate to between 0.25% and 0.50% in December 2015. However, Fed Chair Janet Yellen has emphasized that the Fed expects to raise rates only gradually, depending on economic data. In addition, the Fed is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities back into agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until normalization of the level of the federal funds rate is well underway.

The European Central Bank cut all three of its short-term rates during the reporting period, increased its asset-purchase program from 60 billion euros per month to 80 billion, expanded the list of eligible securities to include investment-grade nonbank debt, and created a fund-to-lend program where banks could be paid to lend money. In Japan, the Bank of Japan (BOJ) maintained an aggressive monetary program aimed at combating deflation. The BOJ set a negative deposit rate at the end of January 2016, its latest effort to encourage banks to lend rather than hold deposits.

Global economic growth was below trend, and oil prices garnered attention.

Developed countries experienced subtrend growth and subdued inflation. In the U.S., however, economic growth advanced and inflation, as measured by the Consumer Price Index, excluding food and energy, rose 2.1% over the past 12 months. Oil prices continued to fall dramatically, reaching a secular low of $26 per barrel in February 2016 before increasing to $49 per barrel by the end of the reporting period.

Uncertainty around the divergence between U.S. and non-U.S. economic growth, persistent weakness in European and Japanese inflation, risks of a hard landing in China, and the recalibration of energy and commodity prices weighed on the markets. Periods of greater volatility aided perceived safe-haven investments, such as U.S. Treasuries. As uncertainty about these issues waned, riskier assets tended to outperform. Over the course of the reporting period, asset classes within the Barclays U.S. Aggregate Bond Index performed as follows: Investment-grade corporate bonds returned 3.62%, commercial mortgage-backed securities returned 3.36%, asset-backed securities returned 1.81%, and mortgage-backed securities returned 2.71%. U.S. Treasury Inflation-Protected Securities returned 1.23%.

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

¹  The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index

Letter to shareholders (unaudited) Wells Fargo Income Funds 3

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 appeared to function well over the past year with sufficient liquidity.

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

British Exit from European Union (“Brexit”)

On June 23, 2016, the United Kingdom (UK) voted to leave the European Union (EU). It is expected that the UK’s exit from the EU will take place within two years after giving formal notice to the EU of its intention to withdraw; however, the exact timeframe is unknown. There is considerable uncertainty about how the UK exit from the EU will be conducted, how negotiations of necessary treaties and trade agreements will proceed or how the financial markets will react. In addition, it is not yet known whether Brexit will increase the likelihood of other countries seeking to depart the EU. Immediately following the vote, markets in the UK, Europe and the world were negatively impacted. In light of the uncertainties surrounding the impact of Brexit on the broader global economy, the negative impact could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on Europe for their business activities and revenues. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

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 Income Funds Performance highlights (unaudited)

Wells Fargo Core Bond Fund¹

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

Wells Capital Management Incorporated

Portfolio managers

Troy Ludgood

Thomas O’Connor, CFA®

Average annual total returns (%) as of May 31, 2016²

		Including sales charge							Excluding sales charge						Expense ratios3 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net4
Class A (MBFAX)	10-31-2001		(2.24	)		2.52		4.81		2.36		3.47		5.29		0.85		0.78
Class B (MBFBX)*	10-31-2001		(3.40	)		2.35		4.71		1.60		2.71		4.71		1.60		1.53
Class C (MBFCX)	10-31-2001		0.61			2.70		4.47		1.61		2.70		4.47		1.60		1.53
Class R (WTRRX)	7-9-2010		–			–		–		2.13		3.23		5.02		1.10		1.03
Class R4 (MBFRX)	11-30-2012		–			–		–		2.65		3.75		5.57		0.62		0.52
Class R6 (WTRIX)	11-30-2012		–			–		–		2.81		3.89		5.69		0.47		0.37
Administrator Class (MNTRX)	6-30-1997		–			–		–		2.47		3.58		5.40		0.79		0.70
Institutional Class (MBFIX)	10-31-2001		–			–		–		2.76		3.86		5.68		0.52		0.42
Barclays U.S. Aggregate Bond Index5	–		–			–		–		2.99		3.33		4.97		–		–

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

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, 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. Class R, Class R4, Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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). 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 foreign investment risk and mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Income Funds 5

Wells Fargo Core Bond Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁶

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

²  Historical performance shown for Class R shares prior to their inception reflects the performance of Administrator Class shares, adjusted to reflect the higher expenses applicable to Class R shares. Historical performance shown for Class R4 shares prior to their inception reflects the performance of Institutional Class shares, adjusted to reflect the higher expenses applicable to Class R4 shares. Historical performance shown for Class R6 shares prior to their inception reflects the performance of Institutional Class shares and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, returns would be higher.

³  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.

⁴  The manager has contractually committed through September 30, 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 expense cap. Net expenses from the affiliated master portfolio are included in the cap. Without this cap, the Fund’s returns would have been lower.

⁵  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Barclays U.S. Aggregate Bond Index. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

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

⁸  Amounts represent the portfolio allocation of the affiliated master portfolio which are calculated based on the total long-term investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo Income Funds Performance highlights (unaudited)

Wells Fargo Core Bond Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays U.S. Aggregate Bond Index,⁵ for the 12-month period that ended May 31, 2016.

n Detractors from performance included positions in Federal Family Education Loan Program (FFELP) student loan floating-rate bonds. In credit, positioning in the pipelines, energy, and consumer cyclical subsectors detracted. An overweight to commercial mortgage-backed securities (CMBS) also held back results.

n Contributors to performance included security selection within the credit sector, particularly in the technology, consumer noncyclical, and telecom subsectors, along with security selection and active relative-value trading within fixed-rate agency mortgages.

n The Fund does not invest by anticipating interest-rate movements because we seek to avoid macro bets; therefore, duration had a neutral effect on performance. Instead, the Fund seeks to capture relative value with bottom-up security selection.

Macro events, accommodative monetary policy, and oil-price swings set the stage for fixed income.

The period began with Greek drama firmly taking center stage. Greek voters surprised the markets in a snap referendum by voting overwhelmingly to reject European austerity. As the Greek crisis abated, new concerns emerged for investors, most notably the dramatic sell-off in Chinese equities, which heightened concerns that China’s growth was slowing rapidly and a hard economic landing was becoming more likely.

In December 2015, the long-awaited U.S. Federal Reserve (Fed) rate hike finally arrived at the December 15 Federal Open Market Committee meeting. The federal funds target rate was increased for the first time in more than nine years, and Fed Chair Janet Yellen emphasized that suggested future rate hikes would be gradual and data dependent. Although the rate move was well telegraphed and expected by the market, risk assets stumbled following the announcement, spooked by a path of future interest-rate projections. Adding fuel to the sell-off were investors’ concerns over oil and other industrial commodities making fresh lows for the year. A late year-end rally repaired some of the damage, but uncertainty loomed.

We believe in bottom-up security selection rather than top-down macro bets.

Consistent with our bottom-up process, we maintained a neutral duration. We ended the period with a slight risk-adjusted overweight to mortgage-backed securities and CMBS compared with the benchmark because we believed valuations were close to fair. We maintained an overweight to credit because issuance remained strong and provided security selection opportunities. Notable contributors to performance for the period included security selection within the technology, consumer noncyclical, and telecom sectors. Positioning in the pipeline, energy, and consumer cyclical subsectors detracted.

In asset-backed securities (ABS), we maintained a risk-adjusted overweight that contributed to performance because fundamental valuations looked attractive and primary and secondary market technicals provided a tailwind. The Fund’s holdings of FFELP debt, however, detracted from performance. Student loan ABS remained under pressure because Moody’s Investors Service has placed a number of student loans originated under the FFELP on review for a downgrade due to an elevated risk of low payment rates, driven by a combination of low rates of voluntary prepayments, persistently high volumes of loans in deferment and forbearance, and the growing popularity of the income-based repayment and extended repayment programs.

We continue to focus on risk management and seek relative-value opportunities.

As was the case in the first quarter of 2015, U.S. gross domestic product in the first quarter of 2016 came in below expectations of 1.0% at 0.8% annualized, down from an anemic 1.4% in the fourth quarter of 2015. Employment in the U.S. continued to improve, with the unemployment rate falling to 5.0% as of the nonfarm payroll release in early May 2015.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Income Funds 7

Wells Fargo Core Bond Fund (continued)

European officials maintained an accommodative stance as European Central Bank (ECB) President Mario Draghi delivered more on the stimulus front, announcing nonfinancial corporate bonds would be included in ECB purchase programs. All eyes will continue to be on the Fed as it remains data dependent going forward.

We believe fixed-income markets will provide plenty of opportunities as we move through the balance of 2016. Increased volatility and a continued strong corporate issuance will provide opportunity for us to add value through our bottom-up, active, relative-value investment management approach, where we remain particularly focused on risk management. We continue to focus on bottom-up security selection and intend to take advantage of relative-value dislocations as they arise.

Ten largest holdings (%) as of May 31, 20167
U.S. Treasury Note, 1.38%, 1-31-2021	4.80
U.S. Treasury Note, 0.88%, 5-15-2019	3.73
U.S. Treasury Note, 0.88%, 4-15-2019	3.59
U.S. Treasury Note, 0.88%, 3-31-2018	3.36
U.S. Treasury Note, 0.75%, 1-31-2018	2.69
U.S. Treasury Note, 1.38%, 5-31-2021	2.49
GNMA, 3.50%, 8-23-2046	2.33
U.S. Treasury Bond, 2.50%, 2-15-2046	2.17
GNMA, 3.00%, 8-23-2046	1.79
FHLMC, 3.50%, 8-16-2046	1.62

Portfolio allocation as of May 31, 2016⁸

Please see footnotes on page 5.

8 Wells Fargo Income Funds Performance highlights (unaudited)

Wells Fargo Real Return Fund¹

Investment objective

The Fund seeks returns that exceed the rate of inflation over the long-term.

Manager

Wells Fargo Funds Management, LLC

Subadviser for the affiliated master portfolio

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA®, FRM

Michael Bradshaw, CFA®

Christian L. Chan, CFA®

Ann M. Miletti

Jay N. Mueller, CFA®

Thomas M. Prince, CFA®

Dale Winner, CFA®

Average annual total returns (%) as of May 31, 2016

		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 (IPBAX)	2-28-2003		(3.54	)		1.20		3.54		1.01		2.13		4.02		1.45		0.85
Class B (IPBBX)*	2-28-2003		(4.69	)		1.00		3.50		0.31		1.38		3.50		2.20		1.60
Class C (IPBCX)	2-28-2003		(0.79	)		1.37		3.27		0.21		1.37		3.27		2.20		1.60
Administrator Class (IPBIX)	2-28-2003		–			–		–		1.21		2.38		4.31		1.39		0.60
Barclays U.S. TIPS Index4	–		–			–		–		1.23		2.38		4.56		–		–
Consumer Price Index5	–		–			–		–		1.02		1.23		1.72		–		–

* 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 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. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price.

The use of derivatives may reduce returns and/or increase volatility. 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 Fund is exposed to mortgage- and asset-backed securities risk and small-company securities risk. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo Income Funds 9

Wells Fargo Real Return Fund (continued)

Growth of $10,000 investment as of May 31, 2016⁶

¹  The Fund is a gateway feeder fund that invests all of its assets in a single affiliated master portfolio of the Wells Fargo Master Trust with a substantially similar investment objective and substantially similar investment strategies. References to the investment activities of the Fund are intended to refer to the investment activities of the affiliated master portfolio in which it invests.

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 September 30, 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 expense cap. Net expenses from the affiliated master portfolio are included in the cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index is an index of inflation indexed linked U.S. Treasury securities. You cannot invest directly in an index.

⁵  The Consumer Price Index (CPI) for All Urban Consumers in U.S. All Items is published monthly by the U.S. government as an indicator of changes in price levels (or inflation) paid by urban consumers for a representative basket of goods and services. You cannot invest directly in an index.

⁶  The chart compares the performance of Class A shares since inception with the Barclays U.S. TIPS Index and CPI. The chart assumes a hypothetical $10,000 investment in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

⁷  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. 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. You cannot invest directly in an index.

⁸  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities of the affiliated master portfolio allocable to the Fund divided by the total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁹  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.

¹⁰  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.

¹¹  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹²  Amounts represent the effective maturity of the affiliated master portfolio which are calculated based on the total fixed-income investments of the affiliated master portfolio. These amounts are subject to change and may have changed since the date specified.

10 Wells Fargo Income Funds Performance highlights (unaudited)

Wells Fargo Real Return Fund (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmarks, the Barclays U.S. Treasury Inflation-Protected Securities Index,⁴ and the Consumer Price Index,⁵ for the 12-month period that ended May 31, 2016.

n Exposure to global stocks detracted from the relative performance of the Fund amid a sharp sell-off in overseas markets during the period.

n Allocations to real estate investment trusts (REITs) and gold-mining stocks contributed positively to the relative performance of the Fund.

Weakness in China, coupled with wild swings in oil prices, drove volatility higher during the 12-month period.

The 12-month period was marked by several periods of elevated volatility, sharp reversals in global equity markets, and a divergence in policies among global central banks. After reaching their all-time highs in mid-2015, stock prices declined sharply in August 2015 amid turmoil in Chinese equities and the devaluation of the yuan. Fears of a global slowdown sent several equity markets into correction territory for the first time since the financial crisis. Meanwhile, the Volatility Index, which is a forward-looking measure of market volatility, soared to levels last seen in 2011 when U.S. government debt was downgraded. Markets recovered in the fourth quarter of 2015 as contagion fears abated and a strengthening U.S. job market buoyed investor sentiment.

The second round of heightened volatility occurred in early 2016, right on the heels of the U.S. Federal Reserve’s first rate hike since 2006. Although the event itself initially had a muted impact on financial markets, the prospect of tighter U.S. monetary conditions in the face of renewed turmoil in China and another sharp fall in the price of oil below $30 per barrel rekindled concerns about the fragility of global macroeconomic conditions. The resulting sell-off was steep and marked the worst start to the year in recent history. Prices on risk assets such as stocks, high-yield bonds, and emerging markets currencies fell precipitously, as did inflation expectations. Long-term U.S. Treasury bonds and gold, on the other hand, benefited from the overall flight to safety. From year-end 2015 to the low point in mid-February 2016, global stock markets fell 11.4% (as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) Index (Net))⁷ while gold prices and long-term U.S. Treasury bonds gained 10.5% and 17.7%, respectively. Markets reversed course in February and March as investors shifted into a risk-taking mode, in large part due to a rebound in oil prices and a renewed sense of optimism surrounding the willingness of central banks to provide additional stimulus.

Ten largest holdings (%) as of May 31, 20168
TIPS, 0.13%, 4-15-2020	6.05
TIPS, 0.63%, 1-15-2026	3.16
TIPS, 0.13%, 7-15-2024	2.91
TIPS, 0.38%, 7-15-2025	2.84
TIPS, 0.63%, 1-15-2024	2.80
TIPS, 0.38%, 7-15-2023	2.73
TIPS, 0.13%, 1-15-2023	2.69
TIPS, 0.13%, 7-15-2022	2.61
TIPS, 0.13%, 4-15-2019	2.47
TIPS, 0.25%, 1-15-2025	2.41

The Fund uses a multi-asset-class strategy to target inflation protection.

During the 12-month period, we maintained allocations to Treasury Inflation-Protected Securities (TIPS) as well as other inflation-sensitive sectors, such as REITs, short-term high-yield bonds, and inflation-sensitive equities. We used this multi-asset-class strategy to target greater inflation protection and real returns than a traditional inflation-hedged strategy while seeking to achieve similar levels of volatility.

Exposure to global stocks detracted from the relative performance of the Fund amid a sharp sell-off in overseas markets during the period. While U.S. equity markets posted slightly positive gains, international developed

and emerging markets stocks ended the period firmly in negative territory. For the 12-month period, large-cap U.S. stocks (as measured by the S&P 500 Index)⁹ gained 1.7% while international developed and emerging markets stocks (as measured by the MSCI Europe, Australasia, Far East (EAFE) Index (Net)¹⁰ and the MSCI Emerging Markets (EM) Index (Net),¹¹) lost 9.7% and 17.6%, respectively. Meanwhile, allocations to REITs and gold-mining stocks contributed positively to the relative performance of the Fund.

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo Income Funds 11

Wells Fargo Real Return Fund (continued)

Effective maturity distribution as of May 31, 2016¹²

We continue to find TIPS and inflation-sensitive equities attractive relative to nominal Treasury bonds and notes.

We expect the European Central Bank and the Bank of Japan to maintain accommodative monetary policies in order to combat subdued inflationary pressures and bolster their respective economies. Meanwhile, U.S. economic growth has shown signs of resilience as evidenced by a steadily declining unemployment rate and rising consumer confidence.

With bond yields hovering near the all-time lows reached during the height of the European debt crisis, our view is that there is a fair amount of downside risk to U.S. government bonds should there be an uptick in inflationary pressures. In the current macroeconomic environment, where yields and inflation expectations remain depressed by historical standards, we continue to find value in TIPS, shorter-term high-yield bonds, and inflation-sensitive global stocks.

Please see footnotes on page 9.

12 Wells Fargo Income Funds 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 December 1, 2015 to May 31, 2016.

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.

Wells Fargo Core Bond Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,026.53	$	3.95		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.10	$	3.94		0.78	%
Class B
Actual	$	1,000.00	$	1,022.75	$	7.74		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.35	$	7.72		1.53	%
Class C
Actual	$	1,000.00	$	1,022.89	$	7.74		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.35	$	7.72		1.53	%
Class R
Actual	$	1,000.00	$	1,025.73	$	5.22		1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.85	$	5.20		1.03	%
Class R4
Actual	$	1,000.00	$	1,028.36	$	2.64		0.52	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.40	$	2.63		0.52	%
Class R6
Actual	$	1,000.00	$	1,028.32	$	1.88		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.15	$	1.87		0.37	%

Please see footnote on page 13.

Fund expenses (unaudited) Wells Fargo Income Funds 13

Wells Fargo Core Bond Fund (continued)	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period1		Net annualized expense ratio
Administrator Class
Actual	$	1,000.00	$	1,027.42	$	3.55		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.50	$	3.54		0.70	%
Institutional Class
Actual	$	1,000.00	$	1,028.88	$	2.13		0.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.90	$	2.12		0.42	%
Wells Fargo Real Return Fund
Class A
Actual	$	1,000.00	$	1,043.22	$	4.34		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.75	$	4.29		0.85	%
Class B
Actual	$	1,000.00	$	1,039.55	$	8.16		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.00	$	8.07		1.60	%
Class C
Actual	$	1,000.00	$	1,038.45	$	8.15		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.00	$	8.07		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,044.34	$	3.07		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.00	$	3.03		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).

14 Wells Fargo Income Funds Portfolios of investments—May 31, 2016

CORE BOND FUND

Security name	Value
Investment Companies: 99.94%
Affiliated Master Portfolios: 99.94%
Wells Fargo Core Bond Portfolio	$	3,905,568,217
Total Investment Companies (Cost $3,877,624,021)		3,905,568,217

Total investments in securities (Cost $3,877,624,021) *	99.94	%		3,905,568,217
Other assets and liabilities, net	0.06			2,470,823
Total net assets	100.00	%	$	3,908,039,040

* Cost for federal income tax purposes is $3,881,216,516 and unrealized gains (losses) consists of:

Gross unrealized gains	$	24,351,701
Gross unrealized losses		0
Net unrealized gains	$	24,351,701

REAL RETURN FUND

Security name	Value
Investment Companies: 99.56%
Affiliated Master Portfolios: 99.56%
Wells Fargo Real Return Portfolio	$	45,019,976
Total Investment Companies (Cost $43,936,521)		45,019,976

Total investments in securities (Cost $43,936,521) *	99.56	%		45,019,976
Other assets and liabilities, net	0.44			199,399
Total net assets	100.00	%	$	45,219,375

* Cost for federal income tax purposes is $43,877,578 and unrealized gains (losses) consists of:

Gross unrealized gains	$	1,142,398
Gross unrealized losses		0
Net unrealized gains	$	1,142,398

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

Statements of assets and liabilities—May 31, 2016 Wells Fargo Income Funds 15

	Core Bond Fund			Real Return Fund
Assets
Investment in the affiliated Master Portfolio, at value (see cost below)	$	3,905,568,217		$	45,019,976
Receivable for Fund shares sold		12,964,462			214,979
Receivable from administrator		0			8,340
Prepaid expenses and other assets		120,624			27,222
Total assets		3,918,653,303			45,270,517
Liabilities
Dividends payable		1,015,552			0
Payable for Fund shares redeemed		8,899,004			28,217
Distribution fees payable		46,629			3,677
Administration fees payable		214,251			0
Shareholder report expenses payable		40,392			5,219
Shareholder servicing fees payable		282,997			9,661
Accrued expenses and other liabilities		115,438			4,368
Total liabilities		10,614,263			51,142
Total net assets	$	3,908,039,040		$	45,219,375
NET ASSETS CONSIST OF
Paid-in capital	$	3,900,747,221		$	43,990,664
Undistributed net investment income		2,098,037			128,869
Accumulated net realized gains (losses) on investments		(22,750,414	)		16,387
Net unrealized gains on investments		27,944,196			1,083,455
Total net assets	$	3,908,039,040		$	45,219,375
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	699,273,150		$	18,938,223
Shares outstanding – Class A1		52,654,841			1,903,750
Net asset value per share – Class A		$13.28			$9.95
Maximum offering price per share – Class A2		$13.91			$10.42
Net assets – Class B	$	502,330		$	20,856
Shares outstanding – Class B1		37,948			2,135
Net asset value per share – Class B		$13.24			$9.77
Net assets – Class C	$	66,612,481		$	5,653,637
Shares outstanding – Class C1		5,064,124			578,598
Net asset value per share – Class C		$13.15			$9.77
Net assets – Class R	$	17,984,874			N/A
Shares outstanding – Class R1		1,387,080			N/A
Net asset value per share – Class R		$12.97			N/A
Net assets – Class R4	$	41,271,569			N/A
Share outstanding – Class R41		3,187,357			N/A
Net asset value per share – Class R4		$12.95			N/A
Net assets – Class R6	$	450,791,171			N/A
Shares outstanding – Class R61		34,810,671			N/A
Net asset value per share – Class R6		$12.95			N/A
Net assets – Administrator Class	$	529,530,285		$	20,606,659
Shares outstanding – Administrator Class1		40,839,230			2,054,281
Net asset value per share – Administrator Class		$12.97			$10.03
Net assets – Institutional Class	$	2,102,073,180			N/A
Shares outstanding – Institutional Class1		162,355,106			N/A
Net asset value per share – Institutional Class		$12.95			N/A
Investment in the affiliated Master Portfolio, at cost	$	3,877,624,021		$	43,936,521

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.

16 Wells Fargo Income Funds Statements of operations—year ended May 31, 2016

	Core Bond Fund			Real Return Fund
Investment income
Interest allocated from the affiliated Master Portfolio	$	74,734,498		$	548,833
Dividends allocated from the affiliated Master Portfolio*		0			153,294
Affiliated income allocated from the affiliated Master Portfolio		496,271			1,332
Securities lending income allocated from the affiliated Master Portfolio		124,087			7,736
Expenses allocated from the affiliated Master Portfolio		(12,367,744	)		(210,581	)
Waivers allocated from the affiliated Master Portfolio		457,699			44,127
Total investment income		63,444,811			544,741
Expenses
Management fee		1,703,243			19,014
Administration fees
Class A		936,796			25,821
Class B		1,496			84
Class C		108,638			11,615
Class R		26,042			N/A
Class R4		34,171			N/A
Class R6		173,888			N/A
Administrator Class		476,870			14,577
Institutional Class		1,286,681			N/A
Investor Class		53,448	1		N/A
Shareholder servicing fees
Class A		1,463,744			40,345
Class B		2,337			131
Class C		169,747			18,149
Class R		40,690			N/A
Class R4		42,713			N/A
Administrator Class		1,190,776			35,698
Investor Class		70,326	1		N/A
Distribution fees
Class B		7,012			393
Class C		509,240			54,445
Class R		40,690			N/A
Custody and accounting fees		129,134			3,022
Professional fees		30,035			31,388
Registration fees		167,768			51,552
Shareholder report expenses		192,624			980
Trustees’ fees and expenses		87,410			20,122
Other fees and expenses		39,106			5,883
Total expenses		8,984,625			333,219
Less: Fee waivers and/or expense reimbursements		(2,424,877	)		(158,049	)
Net expenses		6,559,748			175,170
Net investment income		56,885,063			369,571
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on securities transaction allocated from the affiliated Master Portfolio		30,089,873			(94,342	)
Net change in unrealized gains (losses) on securities transactions allocated from the affiliated Master Portfolio		4,892,256			448,378
Net realized and unrealized gains (losses) on investments		34,982,129			354,036
Net increase in net assets resulting from operations	$	91,867,192		$	723,607
* Net of foreign dividend withholding taxes allocated from the affiliated Master Portfolio in the amount of		$0			$8,889

¹  For the period from June 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.

Statements of changes in net assets Wells Fargo Income Funds 17

	Core Bond Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	56,885,063				$	44,382,432
Net realized gains on investments					30,089,873					47,175,434
Net change in unrealized gains (losses) on investments					4,892,256					(14,214,826	)
Net increase in net assets resulting from operations					91,867,192					77,343,040
Distributions to shareholders from
Net investment income
Class A					(8,389,835	)				(6,367,850	)
Class B					(6,347	)				(13,601	)
Class C					(461,896	)				(526,070	)
Class R					(192,416	)				(204,535	)
Class R4					(721,295	)				(301,362	)
Class R6					(10,656,813	)				(8,573,230	)
Administrator Class					(7,206,291	)				(6,530,804	)
Institutional Class					(28,855,628	)				(21,645,383	)
Investor Class					(390,665	)1				(1,042,999	)
Total distributions to shareholders					(56,881,186	)				(45,205,834	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		30,562,544			401,063,165			17,971,486		235,630,095
Class B		7,110			92,496			5,794		75,748
Class C		1,245,714			16,170,020			1,111,855		14,430,938
Class R		516,463			6,608,967			783,753		10,023,919
Class R4		457,816			5,844,509			4,293,814		55,081,322
Class R6		22,221,787			284,183,219			44,555,184		572,349,232
Administrator Class		20,672,744			264,372,378			16,736,880		215,246,257
Institutional Class		91,619,539			1,171,763,978			49,516,356		633,001,084
Investor Class		428,364	1		5,459,036	1		1,213,452		15,517,521
					2,155,557,768					1,751,356,116
Reinvestment of distributions
Class A		581,976			7,639,126			428,287		5,615,379
Class B		470			6,137			992		12,927
Class C		17,152			222,796			17,848		231,386
Class R		5,857			74,968			6,287		80,370
Class R4		56,422			721,295			23,328		301,362
Class R6		793,053			10,128,176			663,379		8,507,857
Administrator Class		554,050			7,096,753			501,436		6,420,079
Institutional Class		1,683,434			21,533,371			1,327,635		16,973,646
Investor Class		25,095	1		319,617	1		80,287		1,027,384
					47,742,239					39,170,390

Please see footnote on page 18.

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

18 Wells Fargo Income Funds Statements of changes in net assets

	Core Bond Fund
	Year ended May 31, 2016						Year ended May 31, 2015
	Shares						Shares
Capital share transactions (continued)
Payment for shares redeemed
Class A		(16,942,422	)	$	(222,433,710	)		(10,589,489	)	$	(138,586,528	)
Class B		(72,544	)		(947,339	)		(115,766	)		(1,507,965	)
Class C		(1,783,639	)		(23,130,654	)		(1,858,972	)		(24,109,058	)
Class R		(412,502	)		(5,265,096	)		(860,205	)		(11,034,948	)
Class R4		(1,165,926	)		(14,848,260	)		(479,442	)		(6,178,101	)
Class R6		(44,787,565	)		(570,876,875	)		(11,617,990	)		(149,382,398	)
Administrator Class		(18,365,649	)		(234,906,387	)		(11,799,313	)		(150,982,820	)
Institutional Class		(36,979,227	)		(472,735,235	)		(40,315,878	)		(513,863,486	)
Investor Class		(6,089,488	)1		(77,924,960	)1		(1,491,148	)		(19,075,189	)
					(1,623,068,516	)					(1,014,720,493	)
Net increase in net assets resulting from capital share transactions					580,231,491						775,806,013
Total increase in net assets					615,217,497						807,943,219
Net assets
Beginning of period					3,292,821,543						2,484,878,324
End of period				$	3,908,039,040					$	3,292,821,543
Undistributed net investment income				$	2,098,037					$	2,094,160

¹  For the period from June 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.

Statements of changes in net assets Wells Fargo Income Funds 19

	Real Return Fund
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	369,571					$	102,117
Net realized gains (losses) on investments					(94,342	)					740,740
Net change in unrealized gains (losses) on investments					448,378						(641,821	)
Net increase in net assets resulting from operations					723,607						201,036
Distributions to shareholders from
Net investment income
Class A					(105,174	)					(118,899	)
Class B					(215	)					(784	)
Class C					(19,227	)					(40,049	)
Administrator Class					(118,294	)					(57,817	)
Net realized gains
Class A					(240,328	)					(105,640	)
Class B					(692	)					(1,138	)
Class C					(113,074	)					(66,105	)
Administrator Class					(250,329	)					(44,811	)
Total distributions to shareholders					(847,333	)					(435,243	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,242,256			12,000,616			382,302			3,837,289
Class B		0			0			333			3,340
Class C		195,517			1,891,126			85,006			845,717
Administrator Class		1,653,728			16,251,043			571,353			5,803,056
					30,142,785						10,489,402
Reinvestment of distributions
Class A		30,219			289,502			20,753			205,634
Class B		97			907			197			1,922
Class C		12,509			117,358			9,408			91,880
Administrator Class		34,404			332,457			9,708			96,877
					740,224						396,313
Payment for shares redeemed
Class A		(657,483	)		(6,397,152	)		(639,048	)		(6,367,493	)
Class B		(7,500	)		(71,235	)		(9,996	)		(98,538	)
Class C		(382,563	)		(3,632,916	)		(250,951	)		(2,472,907	)
Administrator Class		(686,150	)		(6,659,978	)		(150,035	)		(1,512,161	)
					(16,761,281	)					(10,451,099	)
Net increase in net assets resulting from capital share transactions					14,121,728						434,616
Total increase in net assets					13,998,002						200,409
Net assets
Beginning of period					31,221,373						31,020,964
End of period				$	45,219,375					$	31,221,373
Undistributed (overdistributed) net investment income				$	128,869					$	(223	)

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

20 Wells Fargo Income Funds Financial highlights

Core Bond Fund	Beginning net asset value per share		Net investment income			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	13.16		0.19	4		0.12			(0.19	)		0.00		$	13.28
Year ended May 31, 2015	$	12.98		0.18			0.19			(0.19	)		0.00		$	13.16
Year ended May 31, 2014	$	13.02		0.19			0.12			(0.20	)		(0.15	)	$	12.98
Year ended May 31, 2013	$	13.46		0.18			0.12			(0.18	)		(0.56	)	$	13.02
Year ended May 31, 2012	$	13.05		0.26			0.72			(0.26	)		(0.31	)	$	13.46
Class B
Year ended May 31, 2016	$	13.12		0.09	4		0.12			(0.09	)		0.00		$	13.24
Year ended May 31, 2015	$	12.94		0.09	4		0.18			(0.09	)		0.00		$	13.12
Year ended May 31, 2014	$	12.98		0.10	4		0.12			(0.11	)		(0.15	)	$	12.94
Year ended May 31, 2013	$	13.43		0.08	4		0.10			(0.07	)		(0.56	)	$	12.98
Year ended May 31, 2012	$	13.01		0.16			0.73			(0.16	)		(0.31	)	$	13.43
Class C
Year ended May 31, 2016	$	13.03		0.09			0.12			(0.09	)		0.00		$	13.15
Year ended May 31, 2015	$	12.86		0.09			0.17			(0.09	)		0.00		$	13.03
Year ended May 31, 2014	$	12.90		0.10			0.12			(0.11	)		(0.15	)	$	12.86
Year ended May 31, 2013	$	13.34		0.07			0.12			(0.07	)		(0.56	)	$	12.90
Year ended May 31, 2012	$	12.93		0.16			0.72			(0.16	)		(0.31	)	$	13.34
Class R
Year ended May 31, 2016	$	12.85		0.15	4		0.12			(0.15	)		0.00		$	12.97
Year ended May 31, 2015	$	12.67		0.15	4		0.18			(0.15	)		0.00		$	12.85
Year ended May 31, 2014	$	12.71		0.16	4		0.12			(0.17	)		(0.15	)	$	12.67
Year ended May 31, 2013	$	13.16		0.14	4		0.11			(0.14	)		(0.56	)	$	12.71
Year ended May 31, 2012	$	12.76		0.22			0.71			(0.22	)		(0.31	)	$	13.16
Class R4
Year ended May 31, 2016	$	12.83		0.22			0.12			(0.22	)		0.00		$	12.95
Year ended May 31, 2015	$	12.66		0.21			0.18			(0.22	)		0.00		$	12.83
Year ended May 31, 2014	$	12.70		0.22			0.12			(0.23	)		(0.15	)	$	12.66
Year ended May 31, 20135	$	13.46		0.10	4		(0.21	)		(0.09	)		(0.56	)	$	12.70
Class R6
Year ended May 31, 2016	$	12.83		0.24			0.12			(0.24	)		0.00		$	12.95
Year ended May 31, 2015	$	12.66		0.23			0.17			(0.23	)		0.00		$	12.83
Year ended May 31, 2014	$	12.70		0.24			0.12			(0.25	)		(0.15	)	$	12.66
Year ended May 31, 20135	$	13.46		0.11	4		(0.21	)		(0.10	)		(0.56	)	$	12.70
Administrator Class
Year ended May 31, 2016	$	12.85		0.19			0.12			(0.19	)		0.00		$	12.97
Year ended May 31, 2015	$	12.67		0.19	4		0.18			(0.19	)		0.00		$	12.85
Year ended May 31, 2014	$	12.71		0.21			0.11			(0.21	)		(0.15	)	$	12.67
Year ended May 31, 2013	$	13.16		0.19			0.10			(0.18	)		(0.56	)	$	12.71
Year ended May 31, 2012	$	12.76		0.27			0.71			(0.27	)		(0.31	)	$	13.16
Institutional Class
Year ended May 31, 2016	$	12.83		0.23			0.12			(0.23	)		0.00		$	12.95
Year ended May 31, 2015	$	12.66		0.22			0.18			(0.23	)		0.00		$	12.83
Year ended May 31, 2014	$	12.70		0.23			0.12			(0.24	)		(0.15	)	$	12.66
Year ended May 31, 2013	$	13.14		0.22			0.12			(0.22	)		(0.56	)	$	12.70
Year ended May 31, 2012	$	12.75		0.31			0.69			(0.30	)		(0.31	)	$	13.14

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

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 is calculated by multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

⁵  For the period from November 30, 2012 (commencement of class operations) to May 31, 2013

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

Financial highlights Wells Fargo Income Funds 21

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.43	%		0.83	%		0.78	%		2.36	%		667	%	$	699,273
	1.39	%		0.83	%		0.78	%		2.85	%		586	%	$	506,043
	1.52	%		0.83	%		0.78	%		2.46	%		646	%	$	397,780
	1.31	%		0.83	%		0.80	%		2.14	%		547	%	$	408,864
	1.91	%		0.82	%		0.82	%		7.65	%		803	%	$	450,013
	0.68	%		1.58	%		1.53	%		1.60	%		667	%	$	502
	0.67	%		1.58	%		1.53	%		2.09	%		586	%	$	1,350
	0.77	%		1.58	%		1.53	%		1.70	%		646	%	$	2,742
	0.56	%		1.57	%		1.55	%		1.31	%		547	%	$	8,208
	1.23	%		1.57	%		1.57	%		6.95	%		803	%	$	11,998
	0.68	%		1.58	%		1.53	%		1.61	%		667	%	$	66,612
	0.65	%		1.58	%		1.53	%		2.02	%		586	%	$	72,798
	0.77	%		1.58	%		1.53	%		1.71	%		646	%	$	81,187
	0.53	%		1.58	%		1.55	%		1.39	%		547	%	$	116,837
	1.18	%		1.57	%		1.57	%		6.90	%		803	%	$	127,677
	1.18	%		1.08	%		1.03	%		2.13	%		667	%	$	17,985
	1.15	%		1.08	%		1.03	%		2.63	%		586	%	$	16,411
	1.27	%		1.08	%		1.03	%		2.23	%		646	%	$	17,077
	1.04	%		1.07	%		1.05	%		1.83	%		547	%	$	19,548
	1.67	%		1.07	%		1.07	%		7.43	%		803	%	$	20,088
	1.69	%		0.60	%		0.52	%		2.65	%		667	%	$	41,272
	1.53	%		0.59	%		0.52	%		3.07	%		586	%	$	49,261
	1.78	%		0.58	%		0.52	%		2.75	%		646	%	$	17
	1.56	%		0.57	%		0.52	%		(0.84	)%		547	%	$	10
	1.84	%		0.45	%		0.37	%		2.81	%		667	%	$	450,791
	1.76	%		0.45	%		0.37	%		3.23	%		586	%	$	726,165
	1.94	%		0.45	%		0.37	%		2.91	%		646	%	$	290,977
	1.72	%		0.45	%		0.37	%		(0.77	)%		547	%	$	205,225
	1.51	%		0.77	%		0.70	%		2.47	%		667	%	$	529,530
	1.47	%		0.77	%		0.70	%		2.96	%		586	%	$	487,981
	1.60	%		0.77	%		0.70	%		2.57	%		646	%	$	412,419
	1.43	%		0.76	%		0.70	%		2.19	%		547	%	$	526,028
	2.08	%		0.76	%		0.70	%		7.83	%		803	%	$	802,788
	1.79	%		0.50	%		0.42	%		2.76	%		667	%	$	2,102,073
	1.75	%		0.50	%		0.42	%		3.17	%		586	%	$	1,360,398
	1.88	%		0.50	%		0.42	%		2.85	%		646	%	$	1,208,745
	1.67	%		0.50	%		0.42	%		2.56	%		547	%	$	1,505,192
	2.32	%		0.49	%		0.42	%		8.05	%		803	%	$	1,965,338

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

22 Wells Fargo Income Funds Financial highlights

Real Return Fund	Beginning net asset value per share		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
Class A
Year ended May 31, 2016	$	10.07		0.10	4		(0.01	)		(0.07	)		(0.14	)	$	9.95
Year ended May 31, 2015	$	10.11		0.05	4		0.07			(0.08	)		(0.08	)	$	10.07
Year ended May 31, 2014	$	10.85		0.10	4		(0.21	)		(0.09	)		(0.54	)	$	10.11
Year ended May 31, 2013	$	11.66		0.11			(0.36	)		(0.21	)		(0.35	)	$	10.85
Year ended May 31, 2012	$	10.84		0.27			1.01			(0.36	)		(0.10	)	$	11.66
Class B
Year ended May 31, 2016	$	9.91		0.06	4		(0.04	)		(0.02	)		(0.14	)	$	9.77
Year ended May 31, 2015	$	9.99		(0.03	)4		0.07			(0.04	)		(0.08	)	$	9.91
Year ended May 31, 2014	$	10.75		0.01	4		(0.20	)		(0.03	)		(0.54	)	$	9.99
Year ended May 31, 2013	$	11.58		0.03	4		(0.36	)		(0.15	)		(0.35	)	$	10.75
Year ended May 31, 2012	$	10.76		0.19	4		1.00			(0.27	)		(0.10	)	$	11.58
Class C
Year ended May 31, 2016	$	9.92		0.03	4		(0.02	)		(0.02	)		(0.14	)	$	9.77
Year ended May 31, 2015	$	10.00		(0.03	)4		0.08			(0.05	)		(0.08	)	$	9.92
Year ended May 31, 2014	$	10.76		0.03	4		(0.21	)		(0.04	)		(0.54	)	$	10.00
Year ended May 31, 2013	$	11.59		0.04			(0.37	)		(0.15	)		(0.35	)	$	10.76
Year ended May 31, 2012	$	10.77		0.19			1.00			(0.27	)		(0.10	)	$	11.59
Administrator Class
Year ended May 31, 2016	$	10.15		0.13	4		(0.02	)		(0.09	)		(0.14	)	$	10.03
Year ended May 31, 2015	$	10.17		0.10	4		0.06			(0.10	)		(0.08	)	$	10.15
Year ended May 31, 2014	$	10.90		0.13	4		(0.22	)		(0.10	)		(0.54	)	$	10.17
Year ended May 31, 2013	$	11.71		0.15	4		(0.37	)		(0.24	)		(0.35	)	$	10.90
Year ended May 31, 2012	$	10.89		0.39	4		0.92			(0.39	)		(0.10	)	$	11.71

¹  Ratios include net expenses allocated from the affiliated Master Portfolio.

²  Total return calculations do not include any sales charges.

³  Portfolio turnover rate is calculated by multiplying the Fund’s investment percentage in the affiliated Master Portfolio by the affiliated Master Portfolio’s portfolio turnover rate.

⁴  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Income Funds 23

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate3			Net assets at end of period (000s omitted)
Net investment income (loss)			Gross expenses1			Net expenses1
	0.98	%		1.20	%		0.85	%		1.01	%		29	%	$	18,938
	0.47	%		1.31	%		0.85	%		1.24	%		57	%	$	12,977
	0.96	%		1.20	%		0.85	%		(0.76	)%		9	%	$	15,415
	1.09	%		1.08	%		0.85	%		(2.27	)%		15	%	$	28,298
	2.42	%		1.11	%		0.85	%		12.02	%		23	%	$	36,935
	0.65	%		1.95	%		1.60	%		0.31	%		29	%	$	21
	(0.30	)%		2.05	%		1.60	%		0.45	%		57	%	$	95
	0.09	%		1.95	%		1.60	%		(1.53	)%		9	%	$	190
	0.29	%		1.83	%		1.60	%		(3.02	)%		15	%	$	571
	1.69	%		1.84	%		1.60	%		11.25	%		23	%	$	899
	0.30	%		1.95	%		1.60	%		0.21	%		29	%	$	5,654
	(0.33	)%		2.06	%		1.60	%		0.46	%		57	%	$	7,471
	0.29	%		1.95	%		1.60	%		(1.46	)%		9	%	$	9,095
	0.39	%		1.83	%		1.60	%		(3.01	)%		15	%	$	13,774
	1.68	%		1.86	%		1.60	%		11.24	%		23	%	$	15,631
	1.30	%		1.13	%		0.60	%		1.21	%		29	%	$	20,607
	0.99	%		1.27	%		0.60	%		1.56	%		57	%	$	10,679
	1.31	%		1.14	%		0.60	%		(0.51	)%		9	%	$	6,320
	1.34	%		1.02	%		0.60	%		(2.08	)%		15	%	$	8,271
	3.42	%		1.01	%		0.60	%		12.26	%		23	%	$	9,833

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

24 Wells Fargo Income Funds Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the following funds: Wells Fargo Core Bond Fund (“Core Bond Fund”) and Wells Fargo Real Return Fund (“Real Return Fund”) (each, a “Fund”, collectively, the “Funds”). Each Fund is a diversified series of the Trust.

After the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Investor Class shareholders of Core Bond Fund 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 Core Bond Fund.

Each Fund seeks to achieve its investment objective by investing all investable assets in a separate diversified portfolio (an “affiliated Master Portfolio”) of Wells Fargo Master Trust, a registered open-end management investment company. Each affiliated Master Portfolio directly acquires portfolio securities, and a Fund investing in an affiliated Master Portfolio acquires an indirect interest in those securities. Each Fund accounts for its investment in the affiliated Master Portfolio as a partnership investment and records on a daily basis its share of the affiliated Master Portfolio’s income, expense, and realized and unrealized gains and losses. The financial statements of each affiliated Master Portfolio for the year ended May 31, 2016 are included in this report and should be read in conjunction with each Fund’s financial statements. As of May 31, 2016, Core Bond Fund owned 90% of Wells Fargo Core Bond Portfolio and Real Return Fund owned 70% of Wells Fargo Real Return Portfolio.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each 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), although the Funds may deviate from this calculation time under unusual or unexpected circumstances.

An investment in an affiliated Master Portfolio is valued daily based on each Fund’s proportionate share of each affiliated Master Portfolio’s net assets, which is also valued daily. Securities held in the affiliated Master Portfolio are valued as discussed in the Notes to Financial Statements of the affiliated Master Portfolio, which are included elsewhere in this report.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis in each affiliated Master Portfolio. Realized gains or losses in each affiliated Master Portfolio 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 by each affiliated Master Portfolio. 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 in each affiliated Master Portfolio 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 in each affiliated Master Portfolio is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Each Fund records daily its proportionate share of each affiliated Master Portfolio’s interest and dividend income and realized and unrealized gains or losses.

Notes to financial statements Wells Fargo Income Funds 25

Distributions to shareholders

For Core Bond Fund, distributions to shareholders from net investment income are accrued daily and paid monthly. For Real Return Fund, distributions to shareholders from net investment income are recorded on the ex-dividend date. 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

Each Fund is treated as a separate entity for federal income tax purposes. Each 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.

Each 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 each Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to each Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At May 31, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statements of Assets and Liabilities:

	Paid-in capital			Undistributed net investment income		Accumulated net realized gains (losses) on investments
Core Bond Fund	$	(2,412,754	)	$	0	$	2,412,754
Real Return Fund		3,798			2,431		(6,229	)

As of May 31, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

			No expiration
	2017		Short-term		Long-term
Core Bond Fund	$	17,505,682	$	0	$	0
Real Return Fund		0		19,900		22,656

As of May 31, 2016, Core Bond Fund had $1,802,544 of current year deferred post-October capital losses, which will be recognized on the first day of the following fiscal year.

Class allocations

The separate classes of shares offered by each 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.

26 Wells Fargo Income Funds Notes to financial statements

3. FAIR VALUATION MEASUREMENTS

At May 31, 2016, the affiliated Master Portfolio of each Fund was measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. The investment objective of each affiliate Master Portfolio and the value of each affiliated Master Portfolio was as follows:

Affiliated Master Portfolio	Investment objective	Value of affiliated Master Portfolio
Wells Fargo Core Bond Portfolio	Seeks total return, consisting of income and capital appreciation	$	3,905,568,217
Wells Fargo Real Return Portfolio	Seeks returns that exceed the rate of inflation over the long-term		45,019,976

Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Wells Fargo Funds Management (“Funds Management”), an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of each 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 each Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with each Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of each Fund. As long as each Fund continues to invest substantially all of its assets in a single affiliated Master Portfolio, each Fund pays Funds Management an investment management fee only for fund-level administrative services. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.05% and declining to 0.03% as the average daily net assets of each Fund increase.

Prior to July 1, 2015, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of each Fund increased. For financial statement purposes, the fund-level administration fee under the prior administration agreement for each Fund has been included in management fee on the Statements of Operations.

For the year ended May 31, 2016, the management fee was equivalent to an annual rate of 0.05% of each Fund’s average daily net assets.

Funds Management also serves as the adviser to each affiliated Master Portfolio and is entitled to receive a fee from each affiliated Master Portfolio for those services.

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, Class R		0.16	%
Class R4, Institutional Class		0.08
Class R6		0.03
Administrator Class		0.10
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 Funds. 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

Notes to financial statements Wells Fargo Income Funds 27

specific expenses. Funds Management has committed through September 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap each Fund’s expenses as follows:

	Class A			Class B			Class C			Class R		Class R4		Class R6		Administrator Class			Institutional Class
Core Bond Fund		0.78	%		1.53	%		1.53	%		1.03%		0.52%		0.37%		0.70	%		0.42%
Real Return Fund		0.85			1.60			1.60			N/A		N/A		N/A		0.60			N/A

Net expenses from affiliated Master Portfolios are included in the expense caps. After the expiration date, each expense 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, Class C and Class R shares of the applicable Funds pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to the Class B, Class C and Class R shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter of each Fund, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares and 0.25% of the average daily net assets of Class R shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended May 31, 2016, Funds Distributor received the following amounts in front-end sales charges and contingent deferred sales charges:

	Front-end sales charges Class A		Contingent deferred sales charges
			Class B		Class C
Core Bond Fund	$	11,080	$	161	$	36
Real Return Fund		665		0		0

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C, Class R, Administrator Class, and Investor Class of each applicable Fund is charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. Class R4 shares are charged a fee at an annual rate of 0.10% of its average daily net assets.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended May 31, 2016 were as follows:

	Purchases at cost*				Sales proceeds*
	U.S. government		Non-U.S. government		U.S. government		Non-U.S. government
Core Bond Fund	$	21,934,549,372	$	3,130,900,368	$	21,585,169,658	$	2,694,499,673
Real Return Fund		13,711,054		8,488,831		7,285,046		3,451,618

* The Funds seek to achieve their investment objective by investing all of their investable assets in a single affiliated Master Portfolio. Purchases and sales have been calculated by multiplying each Fund’s ownership percentage of the respective affiliated Master Portfolio by the affiliated Master Portfolio’s purchases and sales.

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 each 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 each 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.

28 Wells Fargo Income Funds Notes to financial statements

For the year ended May 31, 2016, there were no borrowings by the Funds under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended May 31 2016, and May 31, 2015, were as follows:

	Ordinary income				Long-term capital gain
	2016		2015		2016		2015
Core Bond Fund	$	56,881,186	$	45,205,834	$	0	$	0
Real Return Fund		334,615		217,549		512,718		217,694

As of May 31, 2016, the components of distributable earnings on a tax basis were as follows:

	Undistributed ordinary income		Unrealized gains		Post-October capital losses deferred			Capital loss carryforward
Core Bond Fund	$	3,263,896	$	24,351,701	$	(1,802,544	)	$	(17,505,682	)
Real Return Fund		128,869		1,142,398		0			(42,556	)

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 Funds and, therefore, cannot be estimated.

9. REDEMPTION IN-KIND

After the close of business on October 29, 2015, Core Bond Fund redeemed assets through an in-kind redemption. In the redemption transaction, Core Bond Fund made a corresponding in-kind redemption from Wells Fargo Core Bond Portfolio which distributed securities to Core Bond Fund. These securities with a value of $223,656,162 along with cash in the amount of $20,349,815 were then in turn distributed to the shareholder. Core Bond Fund recognized gains in the amount of $1,542,694, which are reflected on the Statements of Operations. The redemption in-kind by a shareholder of Class R6 represented 7.17% of Core Bond Fund and is reflected on the Statements of Changes in Net Assets.

10. SUBSEQUENT DISTRIBUTIONS

On June 24, 2016, Real Return Fund declared distributions from net investment income to shareholders of record on

June 23, 2016. The per share amounts payable on June 27, 2016 were as follows:

	Net investment income
Class A	$	0.01905
Class B		0.00000
Class C		0.00000
Administrator Class		0.01901

On July 25, 2016, Real Return Fund declared distributions from net investment income to shareholders of record on July 22, 2016. The per share amounts payable on July 26, 2016 were as follows:

	Net investment income
Class A	$	0.01165
Class B		0.00000
Class C		0.00000
Administrator Class		0.01198

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

Report of independent registered public accounting firm Wells Fargo Income Funds 29

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wells Fargo Core Bond Fund and the Wells Fargo Real Return Fund (formerly known as Wells Fargo Advantage Core Bond Fund and the Wells Fargo Advantage Real Return Fund) (the “Funds”), two of the funds constituting the Wells Fargo Funds Trust, as of May 31, 2016, and the related statements of operations for the year then ended, statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of May 31, 2016, by correspondence with the transfer agent or by other appropriate audit procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned funds of the Wells Fargo Funds Trust as of May 31, 2016, the results of their operations for the year then ended, changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

30 Wells Fargo Income Funds Summary portfolio of investments—May 31, 2016

CORE BOND PORTFOLIO

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: 30.53%
FHLMC		3.00	%		2-15-2045	$	19,734,107	$	20,112,137		0.46	%
FHLMC		1.13-7.00			8-1-2017 to 4-1-2046		181,825,901		193,227,923		4.47
FHLMC		3.50			7-1-2032		15,970,400		16,975,238		0.39
FHLMC		3.50			4-1-2044		16,257,869		17,198,235		0.40
FHLMC		3.50			12-1-2045		14,237,054		14,991,659		0.35
FHLMC		3.50			2-1-2046		15,782,716		16,620,139		0.38
FHLMC %%		3.50			8-16-2046		67,700,000		70,571,956		1.63
FHLMC		4.00			8-1-2044		20,216,471		21,888,997		0.50
FHLMC		4.00			10-1-2045		14,278,557		15,358,973		0.35
FHLMC %%		4.00			7-14-2046		22,600,000		24,070,270		0.55
FHLMC Series 300 Class 300		3.00			1-15-2043		18,852,363		19,215,529		0.44
FNMA		0.00-8.16			4-1-2017 to 6-13-2046		381,070,503		404,080,072		9.30
FNMA		3.00			10-25-2042		17,620,845		17,947,513		0.41
FNMA		3.00			6-1-2043		14,511,441		14,929,579		0.34
FNMA		3.50			5-1-2031		12,277,838		13,123,375		0.30
FNMA		3.50			11-1-2035		11,089,398		11,759,608		0.27
FNMA		3.50			6-1-2045		18,189,829		19,162,602		0.44
FNMA		3.50			8-1-2045		11,133,388		11,728,810		0.27
FNMA		3.50			4-1-2046		18,707,016		19,752,827		0.46
FNMA %%		3.50			8-16-2046		25,300,000		26,402,922		0.61
FNMA		4.00			9-1-2043		11,153,542		12,034,251		0.28
FNMA		4.00			12-1-2044		12,945,627		14,049,558		0.32
FNMA		4.00			6-1-2045		13,076,370		14,191,462		0.33
FNMA		4.50			2-1-2044		14,393,935		15,894,690		0.37
GNMA		3.00-5.00			3-15-2041 to 6-21-2046		66,418,696		71,336,967		1.64
GNMA		3.00			8-23-2046		75,600,000		77,918,180		1.80
GNMA %%		3.50			8-23-2046		96,100,000		101,149,046		2.33
GNMA %%		4.00			2-20-2046		32,980,001		35,208,766		0.81
Other securities									14,591,330		0.33
Total Agency Securities (Cost $1,319,170,583)									1,325,492,614		30.53
Asset-Backed Securities: 13.21%
Ally Master Owner Trust Series 2012-5 Class A		1.54			9-15-2019		13,065,000		13,080,442		0.30
Capital Auto Receivables Asset Trust		1.39-2.01			2-20-2018 to 10-20-2020		74,929,605		75,085,096		1.72
Capital One Multi Asset Execution Trust 2016-A1 Class A1 ±		0.90			2-15-2022		17,837,000		17,898,939		0.41
Discover Card Execution Note Series 2016-A2 Class A2 ±		0.97			9-15-2021		16,036,000		16,130,398		0.37
Ford Credit Auto Owner Trust		0.57-2.44			10-15-2017 to 1-15-2027		29,620,260		29,897,230		0.68
Ford Credit Auto Owner Trust Series 2016-1 Class A		2.31			8-15-2027		14,875,000		15,006,009		0.35
SLM Student Loan Trust		0.68-4.37			4-25-2019 to 1-25-2072		133,292,178		128,674,193		2.96
SMB Private Education Loan Trust		1.03-2.98			7-15-2022 to 5-15-2031		64,510,684		64,383,276		1.49
Synchrony Credit Card Master Note Trust Series 2016-2 Class A		2.21			5-15-2024		12,411,000		12,410,516		0.29
Other securities									201,066,440		4.64
Total Asset-Backed Securities (Cost $575,588,312)									573,632,539		13.21

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Income Funds 31

CORE BOND PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Corporate Bonds and Notes: 18.68%
Consumer Discretionary: 1.47%
Automobiles: 0.39%
Other securities								$	16,790,759		0.39	%
Hotels, Restaurants & Leisure: 0.21%
Other securities									9,333,120		0.21
Household Durables: 0.12%
Other securities									5,323,211		0.12
Media: 0.75%
Other securities									32,431,634		0.75
Consumer Staples: 1.79%
Beverages: 0.55%
Anheuser-Busch InBev Finance Company		3.65	%		2-1-2026	$	11,459,000		11,908,136		0.27
Other securities									12,195,876		0.28
									24,104,012		0.55
Food & Staples Retailing: 0.22%
Other securities									9,490,939		0.22
Food Products: 0.64%
Other securities									27,665,603		0.64
Tobacco: 0.38%
Other securities									16,495,109		0.38
Energy: 2.19%
Energy Equipment & Services: 0.12%
Other securities									5,100,096		0.12
Oil, Gas & Consumable Fuels: 2.07%
Other securities									89,794,938		2.07
Financials: 6.62%
Banks: 1.96%
Other securities									84,870,363		1.96
Capital Markets: 1.47%
Morgan Stanley		4.00			7-23-2025		14,175,000		14,883,509		0.34
Other securities									48,796,760		1.13
									63,680,269		1.47
Consumer Finance: 1.26%
Other securities									54,689,470		1.26
Diversified Financial Services: 0.41%
Other securities									18,004,368		0.41

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

32 Wells Fargo Income Funds Summary portfolio of investments—May 31, 2016

CORE BOND PORTFOLIO

Security name	Value		Percent of net assets
Insurance: 0.56%
Other securities	$	24,416,968		0.56	%
IT Services: 0.08%
Other securities		3,627,502		0.08
REITs: 0.81%
Other securities		34,986,918		0.81
Health Care: 1.26%
Biotechnology: 0.62%
Other securities		27,065,449		0.62
Health Care Providers & Services: 0.24%
Other securities		10,330,033		0.24
Pharmaceuticals: 0.40%
Other securities		17,152,759		0.40
Industrials: 0.90%
Aerospace & Defense: 0.39%
Other securities		16,878,061		0.39
Air Freight & Logistics: 0.07%
Other securities		3,042,489		0.07
Construction & Engineering: 0.05%
Other securities		2,051,187		0.05
Road & Rail: 0.33%
Other securities		14,331,886		0.33
Transportation Infrastructure: 0.06%
Other securities		2,872,293		0.06
Information Technology: 1.12%
IT Services: 0.39%
Other securities		17,009,696		0.39
Semiconductors & Semiconductor Equipment: 0.19%
Other securities		8,081,238		0.19
Technology Hardware, Storage & Peripherals: 0.54%
Other securities		23,380,313		0.54
Materials: 0.24%
Chemicals: 0.08%
Other securities		3,409,272		0.08

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Income Funds 33

CORE BOND PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Containers & Packaging: 0.09%
Other securities								$	3,845,910		0.09	%
Metals & Mining: 0.07%
Other securities									3,177,317		0.07
Telecommunication Services: 1.57%
Diversified Telecommunication Services: 1.57%
AT&T Incorporated		2.80-4.80	%		2-17-2021 to 6-15-2044	$	48,304,000		49,578,672		1.14
Other securities									18,544,041		0.43
									68,122,713		1.57
Utilities: 1.59%
Electric Utilities: 1.03%
Other securities									44,726,698		1.03
Gas Utilities: 0.11%
Other securities									4,745,775		0.11
Multi-Utilities: 0.45%
Other securities									19,639,222		0.45
Total Corporate Bonds and Notes (Cost $793,938,757)									810,667,590		18.68
Municipal Obligations: 0.92%
California: 0.27%
Other securities									11,581,748		0.27
Nevada: 0.19%
Other securities									8,326,483		0.19
New Jersey: 0.16%
Other securities									6,984,507		0.16
New York: 0.12%
Other securities									5,337,684		0.12
Ohio: 0.03%
Other securities									1,465,329		0.03
Texas: 0.15%
Other securities									6,258,708		0.15
Total Municipal Obligations (Cost $32,423,389)									39,954,459		0.92
Non-Agency Mortgage-Backed Securities: 3.10%
Other securities									134,383,718		3.10
Total Non-Agency Mortgage-Backed Securities (Cost $131,754,696)									134,383,718		3.10

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

34 Wells Fargo Income Funds Summary portfolio of investments—May 31, 2016

CORE BOND PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
U.S. Treasury Securities: 30.51%
U.S. Treasury Bond		2.50	%		2-15-2046	$	97,270,000	$	94,348,106		2.17	%
U.S. Treasury Bond		2.50			5-15-2046		21,802,000		21,169,241		0.49
U.S. Treasury Bond ##		2.88			8-15-2045		28,446,000		29,807,198		0.69
U.S. Treasury Note		0.75			1-31-2018		117,195,000		116,984,401		2.69
U.S. Treasury Note		0.75			4-30-2018		37,441,000		37,348,858		0.86
U.S. Treasury Note		0.88			11-30-2017		17,550,000		17,562,338		0.40
U.S. Treasury Note		0.88			3-31-2018		145,749,000		145,737,632		3.36
U.S. Treasury Note		0.88			5-31-2018		31,597,000		31,590,839		0.73
U.S. Treasury Note		0.88			4-15-2019		156,804,000		156,130,213		3.60
U.S. Treasury Note ##		0.88			5-15-2019		162,591,000		161,828,773		3.73
U.S. Treasury Note		1.00			5-15-2018		31,525,000		31,587,798		0.73
U.S. Treasury Note		1.25			3-31-2021		24,971,000		24,820,774		0.57
U.S. Treasury Note		1.38			1-31-2021		208,632,000		208,697,093		4.81
U.S. Treasury Note		1.38			5-31-2021		108,284,000		108,300,892		2.49
U.S. Treasury Note		1.63			11-30-2020		63,040,000		63,830,459		1.47
U.S. Treasury Note		1.63			5-31-2023		16,178,000		16,107,221		0.37
U.S. Treasury Note		1.63			2-15-2026		29,111,000		28,513,992		0.66
U.S. Treasury Note		1.63			5-15-2026		30,682,000		30,074,343		0.69
Total U.S. Treasury Securities (Cost $1,322,216,760)									1,324,440,171		30.51
Yankee Corporate Bonds and Notes: 5.22%
Consumer Discretionary: 0.20%
Media: 0.20%
Other securities									8,574,676		0.20
Energy: 0.68%
Oil, Gas & Consumable Fuels: 0.68%
Other securities									29,720,643		0.68
Financials: 3.25%
Banks: 2.62%
Other securities									113,661,490		2.62
Consumer Finance: 0.14%
Other securities									6,064,000		0.14
Diversified Financial Services: 0.35%
Other securities									15,352,266		0.35
Insurance: 0.14%
Other securities									6,005,914		0.14
Health Care: 0.66%
Pharmaceuticals: 0.66%
Other securities									28,544,631		0.66
Industrials: 0.07%
Marine: 0.07%
Other securities									3,165,798		0.07

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

Summary portfolio of investments—May 31, 2016 Wells Fargo Income Funds 35

CORE BOND PORTFOLIO

Security name						Value			Percent of net assets
Information Technology: 0.09%
Internet Software & Services: 0.09%
Other securities						$	3,939,050			0.09	%
Materials: 0.19%
Chemicals: 0.04%
Other securities							1,713,181			0.04
Metals & Mining: 0.15%
Other securities							6,378,982			0.15
Utilities: 0.08%
Electric Utilities: 0.08%
Other securities							3,426,208			0.08
Total Yankee Corporate Bonds and Notes (Cost $224,850,713)							226,546,839			5.22
Yankee Government Bonds: 2.19%
Other securities							95,050,298			2.19
Total Yankee Government Bonds (Cost $93,245,320)							95,050,298			2.19
	Yield			Shares
Short-Term Investments: 4.57%
Investment Companies: 4.57%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)##		0.41	%		198,368,365		198,368,365			4.57
Total Short-Term Investments (Cost $198,368,365)							198,368,365			4.57
Total investments in securities (Cost $4,691,556,895) *							4,728,536,593			108.93
Other assets and liabilities, net							(387,701,535	)		(8.93	)
Total net assets						$	4,340,835,058			100.00	%

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

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

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

(l) The issuer of the security is an affiliated person of the Portfolio 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 $4,697,050,907 and unrealized gains (losses) consists of:

Gross unrealized gains	$	47,813,964
Gross unrealized losses		(16,328,278	)
Net unrealized gains	$	31,485,686

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

36 Wells Fargo Income Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Shares		Value
Common Stocks: 16.92%
Consumer Staples: 3.87%
Beverages: 0.39%
Constellation Brands Incorporated Class A		697	$	106,746
The Coca-Cola Company		3,173		141,516
				248,262
Food & Staples Retailing: 0.55%
The Kroger Company		2,083		74,488
Wal-Mart Stores Incorporated		1,764		124,856
Walgreens Boots Alliance Incorporated		2,009		155,497
				354,841
Food Products: 1.38%
Biostime International Holdings Limited		176,000		537,915
Marine Harvest ASA		4,555		76,065
Mead Johnson Nutrition Company		970		79,812
Mondelez International Incorporated Class A		2,400		106,776
The Hershey Company		909		84,401
				884,969
Household Products: 1.22%
Church & Dwight Company Incorporated		1,092		107,540
Reckitt Benckiser Group plc		4,568		454,854
The Procter & Gamble Company		2,721		220,510
				782,904
Personal Products: 0.08%
The Estee Lauder Companies Incorporated Class A		574		52,682
Tobacco: 0.25%
Philip Morris International		1,604		158,283
Energy: 3.41%
Energy Equipment & Services: 0.34%
Halliburton Company		2,474		104,353
Schlumberger Limited		876		66,839
Weatherford International plc †		8,288		46,496
				217,688
Oil, Gas & Consumable Fuels: 3.07%
Anadarko Petroleum Corporation		1,640		85,050
BP plc		104,961		543,092
Chevron Corporation		2,867		289,567
Cimarex Energy Company		927		107,792
Eni SpA		32,056		489,710
EOG Resources Incorporated		1,489		121,145
Occidental Petroleum Corporation		1,817		137,074
Phillips 66 Company		640		51,430

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

Portfolio of investments—May 31, 2016 Wells Fargo Income Funds 37

REAL RETURN PORTFOLIO

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Pioneer Natural Resources Company		603	$	96,673
Valero Energy Corporation		848		46,386
				1,967,919
Financials: 4.49%
REITs: 4.49%
American Homes 4 Rent Class A		3,735		68,500
American Tower Corporation		4,616		488,280
AvalonBay Communities Incorporated		1,406		252,911
Boston Properties Incorporated		2,087		262,190
Camden Property Trust		1,931		164,541
Equinix Incorporated		446		161,452
Essex Property Trust Incorporated		384		87,256
General Growth Properties Incorporated		9,763		262,332
Host Hotels & Resorts Incorporated		6,728		103,611
Physicians Realty Trust		12,864		244,287
Prologis Incorporated		4,182		198,770
Public Storage Incorporated		560		142,078
Simon Property Group Incorporated		1,418		280,254
Ventas Incorporated		2,466		163,570
				2,880,032
Materials: 5.15%
Chemicals: 2.57%
Akzo Nobel NV		8,858		601,207
Dow Chemical Company		1,751		89,931
Ecolab Incorporated		436		51,117
International Flavors & Fragrances Incorporated		253		32,637
LyondellBasell Industries NV Class A		290		23,594
Monsanto Company		244		27,443
Nitto Denko Corporation		10,400		684,560
PolyOne Corporation		875		32,786
PPG Industries Incorporated		504		54,271
Praxair Incorporated		468		51,414
				1,648,960
Construction Materials: 0.08%
Martin Marietta Materials Incorporated		267		50,474
Containers & Packaging: 0.09%
Crown Holdings Incorporated †		1,051		54,831
Metals & Mining: 2.41%
Agnico-Eagle Mines Limited-U.S. Exchange Traded Shares		4,600		206,632
Detour Gold Corporation †		9,800		193,631
Fresnillo plc		8,800		128,602
Goldcorp Incorporated-U.S. Exchange Traded Shares		5,500		92,510
Newmont Mining Corporation		8,600		278,726
Randgold Resources Limited ADR		2,850		240,284

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

38 Wells Fargo Income Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name						Shares		Value
Metals & Mining (continued)
Royal Gold Incorporated							2,377	$	133,421
Silver Wheaton Corporation							7,000		130,340
Steel Dynamics Incorporated							1,880		46,417
Tahoe Resources Incorporated							8,000		95,535
									1,546,098
Total Common Stocks (Cost $10,010,837)									10,847,943
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 10.42%
Consumer Discretionary: 3.77%
Auto Components: 0.53%
American Axle & Manufacturing Incorporated		6.25	%		3-15-2021	$	100,000		104,000
Cooper Tire & Rubber Company (i)		8.00			12-15-2019		15,000		17,138
Goodyear Tire & Rubber Company		7.00			5-15-2022		85,000		91,269
Tenneco Incorporated		6.88			12-15-2020		125,000		129,525
									341,932
Diversified Consumer Services: 0.16%
Service Corporation International		5.38			1-15-2022		100,000		104,375
Hotels, Restaurants & Leisure: 0.53%
Hilton Worldwide Finance LLC		5.63			10-15-2021		100,000		103,561
MGM Resorts International		7.63			1-15-2017		105,000		108,281
NCL Corporation Limited 144A		5.25			11-15-2019		125,000		127,500
									339,342
Household Durables: 0.57%
Calatlantic Group Incorporated		6.63			5-1-2020		15,000		16,538
DR Horton Incorporated		3.63			2-15-2018		135,000		137,363
Lennar Corporation		4.50			6-15-2019		100,000		103,250
Tempur Sealy International Incorporated		6.88			12-15-2020		100,000		106,320
									363,471
Media: 0.93%
CCO Holdings LLC		6.63			1-31-2022		125,000		132,625
CSC Holdings LLC		7.63			7-15-2018		75,000		81,375
DISH DBS Corporation		4.25			4-1-2018		130,000		133,250
Nexstar Broadcasting Group Incorporated		6.88			11-15-2020		75,000		78,188
Sinclair Television Group Incorporated		6.38			11-1-2021		85,000		89,675
TEGNA Incorporated		5.13			10-15-2019		50,000		51,375
TEGNA Incorporated		5.13			7-15-2020		30,000		31,050
									597,538
Multiline Retail: 0.16%
Dollar Tree Incorporated 144A		5.25			3-1-2020		100,000		104,219

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

Portfolio of investments—May 31, 2016 Wells Fargo Income Funds 39

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Specialty Retail: 0.53%
Best Buy Company Incorporated		5.00	%		8-1-2018	$	100,000	$	104,750
L Brands Incorporated		6.90			7-15-2017		120,000		126,900
Sally Beauty Holdings Incorporated		5.75			6-1-2022		100,000		104,000
									335,650
Textiles, Apparel & Luxury Goods: 0.36%
HanesBrands Incorporated		6.38			12-15-2020		125,000		128,985
The William Carter Company		5.25			8-15-2021		100,000		103,500
									232,485
Consumer Staples: 0.72%
Beverages: 0.16%
Cott Beverages Incorporated		6.75			1-1-2020		100,000		104,500
Food Products: 0.36%
Pinnacle Foods Incorporated		4.88			5-1-2021		100,000		102,000
Smithfield Foods Incorporated		7.75			7-1-2017		120,000		127,560
									229,560
Household Products: 0.20%
Spectrum Brands Incorporated		6.38			11-15-2020		120,000		125,850
Energy: 0.85%
Energy Equipment & Services: 0.15%
NGPL PipeCo LLC 144A		7.12			12-15-2017		95,000		99,750
Oil, Gas & Consumable Fuels: 0.70%
Kinder Morgan Incorporated		7.00			6-15-2017		60,000		62,627
Rockies Express Pipeline LLC 144A		6.00			1-15-2019		50,000		51,875
Sabine Pass LNG LP		7.50			11-30-2016		65,000		66,463
Targa Resources Partners Incorporated		5.00			1-15-2018		130,000		132,600
Tesoro Corporation		4.25			10-1-2017		65,000		66,463
Tesoro Logistics LP		5.88			10-1-2020		65,000		66,950
									446,978
Financials: 1.60%
Banks: 0.21%
CIT Group Incorporated		4.25			8-15-2017		105,000		106,239
CIT Group Incorporated		5.25			3-15-2018		25,000		25,813
									132,052
Consumer Finance: 1.00%
Ally Financial Incorporated		6.25			12-1-2017		125,000		130,313
Diamond 1 Finance Corporation 144A%%		3.48			6-1-2019		100,000		101,329
General Motors Financial Company Incorporated		3.25			5-15-2018		135,000		137,552
Navient Corporation		4.63			9-25-2017		130,000		132,600
Toll Brothers Finance Corporation		4.00			12-31-2018		135,000		140,063
									641,857

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

40 Wells Fargo Income Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
REITs: 0.39%
Iron Mountain Incorporated 144A		6.00	%		10-1-2020	$	100,000	$	105,500
VEREIT Operating Partnership LP		2.00			2-6-2017		135,000		135,173
VEREIT Operating Partnership LP %%		4.13			6-1-2021		10,000		10,100
									250,773
Health Care: 0.68%
Health Care Providers & Services: 0.68%
Centene Corporation 144A		5.63			2-15-2021		65,000		67,600
Fresenius Medical Care Holdings Incorporated		6.88			7-15-2017		125,000		131,719
HCA Incorporated		8.00			10-1-2018		115,000		128,800
Tenet Healthcare Corporation		6.25			11-1-2018		100,000		105,125
									433,244
Industrials: 0.93%
Airlines: 0.16%
US Airways Group Incorporated		6.13			6-1-2018		100,000		104,000
Building Products: 0.14%
USG Corporation		9.75			1-15-2018		80,000		89,422
Commercial Services & Supplies: 0.17%
ACCO Brands Corporation		6.75			4-30-2020		105,000		110,906
Machinery: 0.24%
Case New Holland Industrial Incorporated		7.88			12-1-2017		65,000		69,550
SPX Flow Incorporated		6.88			9-1-2017		80,000		83,300
									152,850
Trading Companies & Distributors: 0.22%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		100,000		104,438
United Rentals North America Incorporated		7.38			5-15-2020		33,000		34,320
									138,758
Information Technology: 0.62%
Communications Equipment: 0.16%
ViaSat Incorporated		6.88			6-15-2020		100,000		103,125
Electronic Equipment, Instruments & Components: 0.13%
Jabil Circuit Incorporated		8.25			3-15-2018		75,000		81,563
Internet Software & Services: 0.20%
IAC/InterActiveCorp		4.88			11-30-2018		123,000		125,921
Software: 0.13%
Activision Blizzard Incorporated 144A		5.63			9-15-2021		80,000		84,000
Materials: 0.63%
Chemicals: 0.13%
Ashland Incorporated		3.88			4-15-2018		80,000		82,000

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

Portfolio of investments—May 31, 2016 Wells Fargo Income Funds 41

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Containers & Packaging: 0.32%
Owens-Illinois Incorporated		7.80	%		5-15-2018	$	120,000	$	130,800
Reynolds Group Holdings		5.75			10-15-2020		70,000		72,188
									202,988
Metals & Mining: 0.18%
Alcoa Incorporated		6.75			7-15-2018		60,000		64,800
Steel Dynamics Incorporated		6.13			8-15-2019		50,000		51,875
									116,675
Telecommunication Services: 0.52%
Diversified Telecommunication Services: 0.35%
Frontier Communications Corporation		8.13			10-1-2018		60,000		65,100
Hughes Satelite Systems Corporation		6.50			6-15-2019		75,000		80,438
SBA Communications Corporation		5.63			10-1-2019		80,000		82,900
									228,438
Wireless Telecommunication Services: 0.17%
T-Mobile USA Incorporated		6.25			4-1-2021		5,000		5,238
T-Mobile USA Incorporated		6.46			4-28-2019		100,000		101,688
									106,926
Utilities: 0.10%
Independent Power & Renewable Electricity Producers: 0.10%
NRG Energy Incorporated		7.63			1-15-2018		60,000		64,650
Total Corporate Bonds and Notes (Cost $6,659,854)									6,675,798
Loans: 3.55%
Consumer Discretionary: 0.66%
Auto Components: 0.15%
Allison Transmission Incorporated ±		3.50			8-23-2019		100,000		100,264
Media: 0.30%
Live Nation Entertainment Incorporated ±		3.50			8-16-2020		100,000		100,125
Virgin Media Investment Holdings Limited ±		3.65			6-30-2023		90,898		90,929
									191,054
Multiline Retail: 0.21%
Michaels Stores Incorporated ±		3.75			1-28-2020		132,944		133,110
Financials: 0.21%
Diversified Financial Services: 0.21%
Delos Finance SARL ±		3.50			3-6-2021		135,000		135,405
Health Care: 0.34%
Health Care Equipment & Supplies: 0.16%
Prestige Brands Incorporated ±%%<		0.00			9-3-2021		100,000		100,250

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

42 Wells Fargo Income Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services: 0.18%
Community Health Systems Incorporated ±		3.92	%		12-31-2018	$	118,263	$	118,079
									118,079
Industrials: 1.02%
Aerospace & Defense: 0.19%
TransDigm Incorporated ±		3.75			2-28-2020		118,522		118,485
Airlines: 0.21%
Delta Air Lines Incorporated ±		0.03			8-24-2022		134,325		134,224
Commercial Services & Supplies: 0.62%
Hertz Corporation ±		3.00			3-11-2018		132,944		132,575
KAR Auction Services Incorporated ±		3.94			3-9-2021		133,082		133,525
ServiceMaster Company ±		4.25			7-1-2021		133,308		133,808
									399,908
Information Technology: 0.50%
Internet Software & Services: 0.10%
Zayo Group LLC ±		3.75			5-6-2021		62,460		62,518
IT Services: 0.16%
First Data Corporation ±		4.19			7-8-2022		100,000		100,208
Semiconductors & Semiconductor Equipment: 0.24%
Avago Technologies ±		4.25			2-1-2023		100,000		100,239
NXP Semiconductors NV ±		3.75			12-7-2020		53,454		53,602
									153,841
Materials: 0.41%
Chemicals: 0.20%
Ineos US Finance LLC ±		3.75			12-15-2020		132,973		131,810
Containers & Packaging: 0.21%
Berry Plastics Group Incorporated ±		3.50			2-8-2020		132,944		132,969
Telecommunication Services: 0.41%
Diversified Telecommunication Services: 0.41%
Level 3 Financing Incorporated ±		3.50			5-31-2022		135,000		134,943
West Corporation ±		3.25			6-30-2018		127,491		127,350
									262,293
Total Loans (Cost $2,267,585)									2,274,418
U.S. Treasury Securities: 65.19%
TIPS		0.13			4-15-2018		283,256		286,837
TIPS		0.13			4-15-2019		1,564,840		1,587,721
TIPS		0.13			4-15-2020		3,848,323		3,897,478
TIPS		0.13			4-15-2021		959,403		969,708
TIPS		0.13			1-15-2022		1,535,891		1,542,670

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

Portfolio of investments—May 31, 2016 Wells Fargo Income Funds 43

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
TIPS		0.13	%		7-15-2022	$	1,672,139	$	1,682,807
TIPS		0.13			1-15-2023		1,738,128		1,733,964
TIPS		0.13			7-15-2024		1,885,170		1,872,185
TIPS		0.25			1-15-2025		1,558,153		1,553,020
TIPS		0.38			7-15-2023		1,723,957		1,755,047
TIPS		0.38			7-15-2025		1,812,274		1,831,388
TIPS		0.63			7-15-2021		1,415,603		1,470,586
TIPS		0.63			1-15-2024		1,750,055		1,803,011
TIPS		0.63			1-15-2026		1,968,939		2,032,955
TIPS		0.63			2-15-2043		569,586		526,414
TIPS		0.75			2-15-2042		848,245		808,671
TIPS		0.75			2-15-2045		1,172,899		1,113,980
TIPS		1.00			2-15-2046		472,289		483,309
TIPS		1.13			1-15-2021		1,322,455		1,398,238
TIPS		1.25			7-15-2020		1,266,453		1,348,310
TIPS		1.38			7-15-2018		1,065,505		1,115,784
TIPS		1.38			1-15-2020		704,633		746,673
TIPS		1.38			2-15-2044		883,710		971,678
TIPS		1.63			1-15-2018		312,546		324,470
TIPS		1.75			1-15-2028		676,235		774,069
TIPS		1.88			7-15-2019		524,106		564,124
TIPS		2.00			1-15-2026		719,778		831,625
TIPS		2.13			1-15-2019		460,231		492,094
TIPS		2.13			2-15-2040		385,560		484,239
TIPS		2.13			2-15-2041		380,541		481,771
TIPS		2.38			1-15-2025		1,149,467		1,351,386
TIPS		2.38			1-15-2027		649,369		781,584
TIPS		2.50			1-15-2029		659,849		817,749
TIPS		2.63			7-15-2017		206,786		215,870
TIPS		3.38			4-15-2032		201,210		287,020
TIPS		3.63			4-15-2028		713,973		969,572
TIPS		3.88			4-15-2029		622,791		878,784
Total U.S. Treasury Securities (Cost $40,364,353)									41,786,791
Yankee Corporate Bonds and Notes: 1.21%
Consumer Discretionary: 0.32%
Auto Components: 0.16%
Schaeffler Holding Finance BV 144A		6.25			11-15-2019		100,000		104,500
Automobiles: 0.16%
Jaguar Land Rover Automotive plc 144A		4.13			12-15-2018		100,000		102,750
Consumer Staples: 0.16%
Food & Staples Retailing: 0.16%
Tesco plc 144A		5.50			11-15-2017		100,000		104,652
Financials: 0.26%
Banks: 0.26%
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		80,000		83,200

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

44 Wells Fargo Income Funds Portfolio of investments—May 31, 2016

REAL RETURN PORTFOLIO

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
Royal Bank of Scotland Group plc		4.70	%		7-3-2018	$	80,000	$	82,507
									165,707
Health Care: 0.15%
Pharmaceuticals: 0.15%
Mallinckrodt International Finance SA		3.50			4-15-2018		100,000		97,250
Information Technology: 0.17%
Communications Equipment: 0.17%
Nokia Corporation		5.38			5-15-2019		100,000		106,600
Materials: 0.15%
Containers & Packaging: 0.15%
Ardagh Packaging Finance plc 144A±		3.63			12-15-2019		95,000		95,238
Total Yankee Corporate Bonds and Notes (Cost $774,066)									776,697
	Yield					Shares
Short-Term Investments: 1.04%
Investment Companies: 0.96%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.23					618,330		618,330
						Principal
U.S. Treasury Securities: 0.08%
U.S. Treasury Bill (z)#		0.30			6-16-2016	$	50,000		49,997
Total Short-Term Investments (Cost $668,323)									668,327

Total investments in securities (Cost $60,745,018) *	98.33	%		63,029,974
Other assets and liabilities, net	1.67			1,067,907
Total net assets	100.00	%	$	64,097,881

† Non-income-earning security

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

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

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

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

(l) The issuer of the security is an affiliated person of the Portfolio 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 and/or unfunded loans.

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

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

* Cost for federal income tax purposes is $60,839,053 and unrealized gains (losses) consists of:

Gross unrealized gains	$	2,850,475
Gross unrealized losses		(659,554	)
Net unrealized gains	$	2,190,921

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

Statements of assets and liabilities—May 31, 2016 Wells Fargo Income Funds 45

	Core Bond Portfolio		Real Return Portfolio
Assets
Investments
In unaffiliated securities, at value (see cost below)	$	4,530,168,228	$	62,411,644
In affiliated securities, at value (see cost below)		198,368,365		618,330
Total investments, at value (see cost below)		4,728,536,593		63,029,974
Cash		7,419		0
Foreign currency, at value (see cost below)		0		21,680
Receivable for investments sold		1,149,740,110		1,190,800
Principal paydown receivable		143,538		0
Receivable for dividends and interest		17,908,065		263,082
Receivable for daily variation margin on open futures contracts		0		31
Receivable for securities lending income		5,040		2,930
Prepaid expenses and other assets		28,457		206
Total assets		5,896,369,222		64,508,703
Liabilities
Payable for investments purchased		1,554,183,980		388,377
Payable for daily variation margin on open futures contracts		0		1,203
Advisory fee payable		1,244,119		15,974
Accrued expenses and other liabilities		106,065		5,268
Total liabilities		1,555,534,164		410,822
Total net assets	$	4,340,835,058	$	64,097,881
Investments in unaffiliated securities, at cost	$	4,493,188,530	$	60,126,688
Investments in affiliated securities, at cost	$	198,368,365	$	618,330
Total investments, at cost	$	4,691,556,895	$	60,745,018
Foreign currency, at cost	$	0	$	21,777

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

46 Wells Fargo Income Funds Statements of operations—year ended May 31, 2016

	Core Bond Portfolio			Real Return Portfolio
Investment income
Interest	$	84,398,045		$	816,658
Income from affiliated securities		558,083			1,913
Securities lending income, net		140,636			11,283
Dividends*		0			223,749
Total investment income		85,096,764			1,053,603
Expenses
Advisory fee		13,642,706			222,726
Custody and accounting fees		207,548			12,881
Professional fees		78,405			45,224
Shareholder report expenses		4,066			1,435
Trustees’ fees and expenses		11,445			18,201
Other fees and expenses		23,050			8,575
Total expenses		13,967,220			309,042
Less: Fee waivers and/or expense reimbursements		(517,427	)		(64,822	)
Net expenses		13,449,793			244,220
Net investment income		71,646,971			809,383
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		33,934,338			(74,459	)
Futures transactions		0			(57,211	)
TBA sale commitments		(189,467	)		0
Net realized gain (losses) on investments		33,744,871			(131,670	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		4,164,647			490,429
Futures transactions		0			(5,454	)
Net change in unrealized gains (losses) on investments		4,164,647			484,975
Net realized and unrealized gains (losses) on investments		37,909,518			353,305
Net increase in net assets resulting from operations	$	109,556,489		$	1,162,688
* Net of foreign dividend withholding taxes in the amount of		$0			$12,907

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

Statements of changes in net assets Wells Fargo Income Funds 47

	Core Bond Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	71,646,971		$	58,488,996
Net realized gains on investments		33,744,871			54,777,871
Net change in unrealized gains (losses) on investments		4,164,647			(15,603,380	)
Net increase in net assets resulting from operations		109,556,489			97,663,487
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		1,207,036,360			1,275,843,092
Withdrawals		(728,304,768	)		(517,501,361	)
Net increase in net assets resulting from capital share transactions		478,731,592			758,341,731
Total increase in net assets		588,288,081			856,005,218
Net assets
Beginning of period		3,752,546,977			2,896,541,759
End of period	$	4,340,835,058		$	3,752,546,977

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

48 Wells Fargo Income Funds Statements of changes in net assets

	Real Return Portfolio
	Year ended May 31, 2016			Year ended May 31, 2015
Operations
Net investment income	$	809,383		$	400,921
Net realized gains (losses) on investments		(131,670	)		1,132,514
Net change in unrealized gains (losses) on investments		484,975			(896,307	)
Net increase in net assets resulting from operations		1,162,688			637,128
Capital share transactions
Transactions in investors’ beneficial interests
Contributions		29,489,684			12,526,145
Withdrawals		(14,951,275	)		(11,966,906	)
Net increase in net assets resulting from capital share transactions		14,538,409			559,239
Total increase in net assets		15,701,097			1,196,367
Net assets
Beginning of period		48,396,784			47,200,417
End of period	$	64,097,881		$	48,396,784

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

Financial highlights Wells Fargo Income Funds 49

	Ratio to average net assets (annualized)									Total return			Portfolio turnover rate
	Net investment income			Gross expenses			Net expenses
Core Bond Portfolio
Year ended May 31, 2016		1.86	%		0.36	%		0.35	%		2.78	%		667	%
Year ended May 31, 2015		1.82	%		0.37	%		0.35	%		3.22	%		586	%
Year ended May 31, 2014		1.94	%		0.37	%		0.35	%		2.90	%		646	%
Year ended May 31, 2013		1.75	%		0.37	%		0.35	%		2.61	%		547	%
Year ended May 31, 2012		2.33	%		0.37	%		0.35	%		8.20	%		803	%
Real Return Portfolio
Year ended May 31, 2016		1.45	%		0.56	%		0.44	%		1.29	%		29	%
Year ended May 31, 2015		0.89	%		0.57	%		0.44	%		1.50	%		57	%
Year ended May 31, 2014		1.45	%		0.53	%		0.44	%		(0.26	)%		9	%
Year ended May 31, 2013		1.52	%		0.50	%		0.44	%		(1.86	)%		15	%
Year ended May 31, 2012		3.00	%		0.48	%		0.44	%		12.62	%		23	%

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

50 Wells Fargo Income Funds Notes to financial statements

1. ORGANIZATION

Wells Fargo Master 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 following portfolios: the Wells Fargo Core Bond Portfolio (“Core Bond Portfolio”) and the Wells Fargo Real Return Portfolio (“Real Return Portfolio”) (each, a “Portfolio”, collectively, the “Portfolios”). Each Portfolio is a diversified series of the Trust.

The Portfolios, which are master portfolios in a master/feeder structure, offer their shares to multiple feeder funds and other affiliated master portfolios rather than directly to the public.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each Portfolio, 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), although the Portfolios may deviate from this calculation time under unusual or unexpected circumstances.

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 principal 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 Portfolio’s Valuation Procedures.

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 normally 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 of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

Security loans

The Portfolios may lend their 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 Portfolios continue to receive interest or dividends on the securities loaned. The Portfolios receive collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Portfolios on the next business day. In a securities lending transaction, the net asset value of the Portfolios will be affected by an increase or decrease in the value

Notes to financial statements Wells Fargo Income Funds 51

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 Portfolios fluctuate from time to time. In the event of default or bankruptcy by the borrower, the Portfolios 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 Portfolios have the right under the lending agreement to recover the securities from the borrower on demand.

The Portfolios lend their 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”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). 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 Statements of Operations.

When-issued transactions

Each Portfolio may purchase securities on a forward commitment or when-issued basis. A Portfolio records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Portfolio’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Portfolio begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Loans

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

Futures contracts

The Portfolio is subject to interest rate risk in the normal course of pursuing its investment objectives. A Portfolio 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 Portfolio 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 Statements of Assets and Liabilities as an asset or liability and in the Statements 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 Portfolio since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

TBA sale commitments

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

52 Wells Fargo Income Funds Notes to financial statements

Inflation-indexed bonds and TIPS

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

Mortgage dollar roll transactions

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

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Dividend income is recognized on the ex-dividend date.

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

Federal and other taxes

Each Portfolio is treated as a separate entity for federal income tax purposes. The Portfolios are not required to pay federal income taxes on their net investment income and net capital gain as they are treated as partnerships for federal income tax purposes. All interest, dividends, gains and losses of a Portfolio are deemed to have been “passed through” to the interestholders in proportion to their holdings of the Portfolio regardless of whether such interest, dividends and gains have been distributed by the Portfolio.

Each Portfolio’s income tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal revenue authority. Management has analyzed each Portfolio’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.

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 each Portfolio’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). Each Portfolio’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:

Notes to financial statements Wells Fargo Income Funds 53

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 Portfolio’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 each Portfolio’s assets and liabilities as of May 31, 2016:

Core Bond Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	1,325,492,614	$	0	$	1,325,492,614
Asset-backed securities		0		573,632,539		0		573,632,539
Corporate bonds and notes		0		810,667,590		0		810,667,590
Municipal obligations		0		39,954,459		0		39,954,459
Non-agency mortgage-backed securities		0		134,383,718		0		134,383,718
U.S. Treasury securities		1,324,440,171		0		0		1,324,440,171
Yankee corporate bonds and notes		0		226,546,839		0		226,546,839
Yankee government bonds		0		95,050,298		0		95,050,298
Short-term investments
Investment companies		198,368,365		0		0		198,368,365
Total assets	$	1,522,808,536	$	3,205,728,057	$	0	$	4,728,536,593

Real Return Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer staples	$	2,481,941	$	0	$	0	$	2,481,941
Energy		2,185,607		0		0		2,185,607
Financials		2,880,032		0		0		2,880,032
Materials		3,300,363		0		0		3,300,363
Corporate bonds and notes		0		6,675,798		0		6,675,798
Loans		0		2,274,418		0		2,274,418
U.S. Treasury securities		41,786,791		0		0		41,786,791
Yankee corporate bonds and notes		0		776,697		0		776,697
Short-term investments
Investment companies		618,330		0		0		618,330
U.S. Treasury securities		49,997		0		0		49,997
		53,303,061		9,726,913		0		63,029,974
Futures contracts		31		0		0		31
Total assets	$	53,303,092	$	9,726,913	$	0	$	63,030,005
Liabilities
Futures contracts	$	1,203	$	0	$	0	$	1,203
Total liabilities	$	1,203	$	0	$	0	$	1,203

54 Wells Fargo Income Funds Notes to financial statements

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

The Portfolios recognize transfers between levels within the fair value hierarchy at the end of the reporting period. At May 31, 2016, the Portfolios did not have any transfers into/out of Level 1, Level 2 or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo. The adviser is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Portfolios.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of each Portfolio increase. For the year ended May 31, 2016, the advisory fee for Core Bond Portfolio and Real Return Portfolio was equivalent to an annual rate of 0.35% and 0.40%, respectively, of each Portfolio’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Portfolios. The fees for subadvisory services are borne by Funds Management. WellsCap is the subadviser to each Portfolio 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 each Portfolio increases.

Funds Management has voluntarily waived and/or reimbursed advisory fees to the extent necessary to maintain certain net operating expense ratios for the Portfolios.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended May 31, 2016 were as follows:

	Purchases at cost				Sales proceeds
	U.S. government		Non-U.S. government		U.S. government		Non-U.S. government
Core Bond Portfolio	$	24,379,101,867	$	3,479,831,644	$	23,990,784,629	$	2,994,795,146
Real Return Portfolio		19,521,137		12,085,988		10,372,097		4,914,247

As of May 31, 2016, Real Return Portfolio had unfunded term loan commitments of $100,313.

6. DERIVATIVE TRANSACTIONS

During the year ended May 31, 2016, Real Return Portfolio entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At May 31, 2016, the Real Return Portfolio had short futures contracts outstanding as follows:

Expiration date	Counterparty		Contracts		Type		Contract value at May 31, 2016		Unrealized losses
9-21-2016	JPMorgan			2 Short		10-Year U.S. Treasury Notes	$	259,375	$	(217	)
9-21-2016	JPMorgan			3 Short		U.S. Treasury Bonds		489,938		(3,004	)
9-30-2016	JPMorgan	��		10 Short		5-Year U.S. Treasury Notes		1,201,172		(2,233	)

Real Return Portfolio had an average notional amount of $80,886 and $1,223,081 in long and short futures contracts during the year ended May 31, 2016.

The receivable and payable for daily variation margin on open futures contracts reflected in the Statements of Assets and Liabilities only represents the current day’s variation margin. The realized gains or losses and change in unrealized gains or losses on derivative instruments are reflected in the Statements of Operations.

Notes to financial statements Wells Fargo Income Funds 55

For certain types of derivative transactions, the Portfolios have 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 Portfolio 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 Portfolios under ISDA Master Agreements or similar agreements, if any, will be reported separately in the Statements of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments or 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 Statements of Assets and Liabilities are not offset across transactions between the Portfolio and the applicable counterparty. A reconciliation of the gross amounts on the Statements 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 Statements of Assets and Liabilities		Amounts subject to netting agreements			Collateral received		Net amount of assets
Real Return Portfolio	Futures – variation margin	JPMorgan	$	31	$	(31	)	$	0	$	0

	Derivative type	Counterparty	Gross amounts of liabilities in the Statements of Assets and Liabilities		Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Real Return Portfolio	Futures – variation margin	JPMorgan	$	1,203	$	(31	)	$	(1,172	)	$	0

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

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 Portfolios and, therefore, cannot be estimated.

8. REDEMPTION IN-KIND

After the close of business on October 29, 2015, Wells Fargo Core Bond Fund, which invests all of its assets in Core Bond Portfolio, redeemed assets through an in-kind redemption. In the redemption transaction, Wells Fargo Core Bond Fund issued securities which it received from Core Bond Portfolio with a value of $223,656,162 along with cash in the amount of $20,349,815. Core Bond Portfolio recognized gains in the amount of $1,735,222, which are reflected on the Statements of Operations. The redemption in-kind represented 6.35% of Core Bond Portfolio and is reflected on the Statements of Changes in Net Assets.

56 Wells Fargo Income Funds Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO MASTER TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments or summary portfolio of investments (for Wells Fargo Core Bond Portfolio), of the Wells Fargo Core Bond Portfolio and Wells Fargo Real Return Portfolio (formerly known as Wells Fargo Advantage Core Bond Portfolio and Wells Fargo Advantage Real Return Portfolio, respectively), two of the portfolios constituting the Wells Fargo Master Trust (collectively the “Portfolios”), as of May 31, 2016, and the related statements of operations for the year then ended, statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned Portfolios of Wells Fargo Master Trust as of May 31, 2016, the results of their operations for the year then ended, changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

Other information (unaudited) Wells Fargo Income Funds 57

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, the following amounts were designated as long-term capital gain distributions for the fiscal year ended May 31, 2016:

	Long-term capital gain distributions
Real Return Fund	$	512,718

Pursuant to Section 854 of the Internal Revenue Code, the following amounts of income dividends paid during the fiscal year ended May 31, 2016 have been designated as qualified dividend income (QDI):

	QDI
Real Return Fund	$	85,886

For the fiscal year ended May 31, 2016, the following amounts have been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Interest-related dividends
Core Bond Fund	$	50,056,376
Real Return Fund		182,135

For the fiscal year ended May 31, 2016, the following amounts have been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Short-term capital gain dividends
Real Return Fund	$	91,639

For the fiscal year ended May 31, 2016, the percentage of ordinary income distributed which was derived from interest on U.S. government securities was as follows:

	% of U.S. government income
Core Bond Fund		19.96	%
Real Return Fund		33.91

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings are publicly available on the website (wellsfargofunds.com) on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) is publicly available on the website on a monthly, seven-day or more delayed basis. Each Fund and Portfolio 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, each 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.

58 Wells Fargo Income Funds 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 142 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
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 Income Funds 59

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

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

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years 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.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016*	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 73 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

* Michael Whitaker became Chief Compliance Officer effective May 16, 2016.

60 Wells Fargo Income Funds Other information (unaudited)

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

Wells Fargo Real Return Fund, Wells Fargo Core Bond Fund, Wells Fargo Real Return Portfolio and Wells Fargo Core Bond Portfolio

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (each, a “Board” and collectively, the “Boards”) of each of Wells Fargo Funds Trust (“Funds Trust”) and Wells Fargo Master Trust (“Master Trust”) (collectively, the “Trusts”) must determine annually whether to approve the continuation of the Trusts’ investment management, advisory and sub-advisory agreements, as applicable. In this regard, at an in-person meeting held on May 24-25, 2016 (the “Meeting”), the Funds Trust Board, all the members of which have no direct or indirect interest in the investment management, advisory and sub-advisory agreements and are not “interested persons” of the Trusts, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for each of the Wells Fargo Real Return Fund and Wells Fargo Core Bond Fund (individually, a “Gateway Fund” and collectively, the “Gateway Funds”) an investment management agreement (the “Gateway Fund Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”).

At the Meeting, the Master Trust Board, all the members of which are Independent Trustees, reviewed and approved an investment advisory agreement (the “Master Portfolio Advisory Agreement”) with Funds Management for each of the Wells Fargo Real Return Portfolio and Wells Fargo Core Bond Portfolio (individually, a “Master Portfolio” and collectively, the “Master Portfolios”). The Gateway Funds and the Master Portfolios are collectively referred to as the “Funds.”

The Master Trust Board also reviewed and approved at the Meeting an investment sub-advisory agreement with Wells Capital Management Incorporated (the “Sub-Adviser”) for each of the Master Portfolios (the “Sub-Advisory Agreements”). The Gateway Fund Management Agreement, the Master Portfolio Advisory Agreement and the Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements.”

The Real Return Fund and Core Bond Fund are gateway feeder funds that invest substantially all of their assets in the Real Return Portfolio and Core Bond Portfolio, respectively. Each of these Master Portfolios has a substantially similar investment objective and substantially similar investment strategies to the respective Gateway Fund. Information provided to the Boards regarding the Gateway Funds is also applicable to the respective Master Portfolios identified above, as relevant.

At the Meeting, the Boards considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2016, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Boards have adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the Boards in the discharge of their duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Boards, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Boards’ annual contract renewal process earlier in 2016. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Boards considered not only the specific information presented in connection with the Meetings, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Boards reviewed reports of Funds Management at each of their quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Boards and the teams mentioned above confer with portfolio managers at various times throughout the year. The Boards did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Funds Trust Board unanimously approved the continuation of the Gateway Fund Management Agreement for a one-year period. Additionally, after its deliberations, the Master Trust Board unanimously approved the continuation of the Master Portfolio Advisory Agreement and each Sub-Advisory Agreement for a one-year term. The Boards also determined that the compensation payable to Funds Management and each of the Sub-Advisers was reasonable. The Boards considered the approval of the Advisory Agreements for the Funds as part of their consideration of agreements for funds across the complex, but their approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Boards in support of their approvals.

Other information (unaudited) Wells Fargo Income Funds 61

Nature, extent and quality of services

The Boards received and considered various information regarding the nature, extent and quality of services provided to the Funds by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services, as well as, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Funds.

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

Fund performance and expenses

The Boards considered the performance results for each of the Funds over various time periods ended March 31, 2015. The Boards considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the respective Funds (each, a “Universe”), and in comparison to each Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Boards received a description of the methodology used by Broadridge to select the mutual funds in each performance Universe.

The Funds Trust Board noted that the performance of each Gateway Fund (Administrator Class) relative to its respective Universe was as follows: (i) the performance of the Real Return Fund was higher than the average performance of its Universe for all periods under review; and (ii) the performance of the Core Bond Fund was higher than the average performance of its Universe for all periods under review.

The Funds Trust Board also noted that the performance of each Gateway Fund relative to its respective benchmark was as follows: (i) the performance of the Real Return Fund was higher than or in range of its benchmark, the Barclays U.S. TIPS Index, for all periods under review except the five- and ten-year periods; and (ii) the performance of the Core Bond Fund was higher than or in range of its benchmark, the Barclays U.S. Aggregate Bond Index, for all periods under review except the one-year period.

The Master Trust Board took note of the performance of the Master Portfolios in the context of reviewing the performance of the Gateway Funds.

The Funds Trust Board also received and considered information regarding each Gateway Fund’s net operating expense ratios, which include fees and expenses of the corresponding Master Portfolio, and their various components, including actual management fees assessed at the Gateway Fund and Master Portfolio levels, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Funds Trust Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to each Gateway Fund (the “Groups”). The Funds Trust Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Funds Trust Board noted that the net operating expense ratios of the Gateway Funds were as follows: (i) the net operating expense ratios of the Real Return Fund were lower than or in range of the median net operating expense ratios of its expense Groups for all share classes; and (ii) the net operating expense ratios of the Core Bond Fund were lower than the median net operating expense ratios of its expense Groups for all share classes.

With respect to the Master Portfolios, the Master Trust Board reviewed the fee rates that are payable to Funds Management for investment advisory services (as discussed below), which are the only fees charged at the Master Portfolio level, relative to a corresponding expense Group.

The Boards took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management, advisory and sub-advisory fee rates

The Funds Trust Board noted that Funds Management receives no advisory fees from a Gateway Fund as long as the Gateway Fund continues to invest all (or substantially all) of its assets in a single master portfolio. If a Gateway Fund were to change its investment structure so that it begins to invest in two or more master portfolios (a gateway blended fund), Funds Management would be entitled to receive an annual fee of 0.25% of the Gateway Fund’s average daily net assets for providing investment advisory services to the Gateway Fund, including allocating the Gateway Fund’s assets among various master portfolios.

62 Wells Fargo Income Funds Other information (unaudited)

The Funds Trust Board reviewed and considered the fee rates that are payable by each Gateway Fund to Funds Management under the Gateway Fund Management Agreement, as well as the contractual fee rates payable by each Gateway Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”).

The Master Trust Board reviewed and considered the contractual investment advisory fee rates that are payable by the Master Portfolios to Funds Management for investment advisory services under the Master Portfolio Advisory Agreement (the “Advisory Agreement Rates”). The Master Trust Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Advisers for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Funds Trust Board was a comparison of each Gateway Fund’s Management Rate, which include the advisory fees paid at the Master Portfolio level, with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Funds Trust Board noted that the Management Rates of the Gateway Funds were as follows: (i) the Management Rates of the Real Return Fund were in range of the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes; and (ii) the Management Rates for the Core Bond Fund were equal to or in range of the sum of the management fee rates and transfer agency costs of its respective expense Groups for all share classes.

The Master Trust Board reviewed a comparison of the Advisory Agreement Rates of each Master Portfolio with those of other funds in each Master Portfolio’s respective expense Group at a common asset level. The Master Trust Board noted that the Advisory Agreement Rates of each Master Portfolio were equal to or in range of the median rate for the Master Portfolio’s respective expense Group.

The Master Trust Board also received and considered information about the portions of the total management fees that were retained by Funds Management after payment of the fees to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of these amounts, the Master Trust Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the current affiliation between Funds Management and the Sub-Adviser, the Master Trust Board ascribed limited relevance to the allocation of the fees between them.

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

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

Profitability

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

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

Other information (unaudited) Wells Fargo Income Funds 63

Economies of scale

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

The Boards concluded that the Funds’ fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Funds and their shareholders.

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Funds Trust Board unanimously approved the continuation of the Gateway Fund Management Agreement for a one-year period. Additionally, at the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Master Trust Board unanimously approved the continuation of the Master Portfolio Advisory Agreement for a one-year term and each Sub-Advisory Agreement for a one-year term. The Boards also determined that the compensation payable to Funds Management and each of the Sub-Advisers was reasonable.

64 Wells Fargo Income Funds 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 Funds’ 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 Funds. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Funds’ 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

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

243138 07-16 AILD/AR103 05-16

Annual Report

May 31, 2016

WealthBuilder^SM Portfolios

n Wells Fargo WealthBuilder Conservative Allocation Portfolio

n Wells Fargo WealthBuilder Moderate Balanced Portfolio

n Wells Fargo WealthBuilder Growth Balanced Portfolio

n Wells Fargo WealthBuilder Growth Allocation Portfolio

n Wells Fargo WealthBuilder Equity Portfolio

n Wells Fargo WealthBuilder Tactical Equity Portfolio

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
Wells Fargo WealthBuilder Conservative Allocation Portfolio	4
Wells Fargo WealthBuilder Moderate Balanced Portfolio	8
Wells Fargo WealthBuilder Growth Balanced Portfolio	12
Wells Fargo WealthBuilder Growth Allocation Portfolio	16
Wells Fargo WealthBuilder Equity Portfolio	20
Wells Fargo WealthBuilder Tactical Equity Portfolio	24
Fund expenses	28
Portfolios of investments
Wells Fargo WealthBuilder Conservative Allocation Portfolio	29
Wells Fargo WealthBuilder Moderate Balanced Portfolio	31
Wells Fargo WealthBuilder Growth Balanced Portfolio	33
Wells Fargo WealthBuilder Growth Allocation Portfolio	35
Wells Fargo WealthBuilder Equity Portfolio	37
Wells Fargo WealthBuilder Tactical Equity Portfolio	38
Financial statements
Statements of assets and liabilities	40
Statements of operations	42
Statements of changes in net assets	44
Financial highlights	50
Notes to financial statements	52
Report of independent registered public accounting firm	66
Other information	67
List of abbreviations	75

The views expressed and any forward-looking statements are as of May 31, 2016, 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 Funds 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 WealthBuilder Portfolios Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

During much of the period, global equity, bond, and currency markets were volatile as recessionary pressures and diverging central bank policies concerned investors.

During the fourth quarter of 2015, Japan’s economy contracted, China’s manufacturing sector retrenched, and growth appeared to slow in Europe.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo WealthBuilder Portfolios for the 12-month period that ended May 31, 2016. During much of the period, global equity, bond, and currency markets were volatile as recessionary pressures and diverging central bank policies concerned investors. As the period closed, investor confidence appeared to improve based on favorable economic data in key markets and central bank monetary policies that were intended to support increased business activity.

Shifting investor sentiment reflected changing economic and business data.

Early in the period, oil prices declined after a spring rally, negotiations about Greece’s ability to repay its sovereign debt grew contentious, and the U.S. dollar strengthened. By July 2015, equity markets were declining, led by stocks in China, which endured the largest one-day loss since 2007 on July 27, 2015.

The S&P 500 Index,¹ a common measure of U.S. stock performance, fell into correction territory—defined as a loss of 10% or more—during August 2015 before recovering somewhat. The index retested the August lows in late September before recovering most of its year-to-date-2015 losses from October through December. As anticipated, the U.S. Federal Reserve (the Fed) increased the federal funds rate in December and suggested it planned to pursue additional increases in 2016. During the first six weeks of 2016, the index suffered the worst loss to open a year on record before trending higher. By the end of the 12-month reporting period, the index recorded a 1.72% gain.

Overseas, the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net)² and the MSCI Emerging Markets (EM) Index (Net)³ recorded negative returns. In August 2015, China allowed its currency’s value to decline in an attempt to bolster exports. The U.S. dollar strengthened, which negatively affected investment returns and U.S. corporate profits earned overseas. During the fourth quarter of 2015, Japan’s economy contracted, China’s manufacturing sector retrenched, and growth appeared to slow in Europe.

Global equity markets hit low points before starting to rebound in the middle of February 2016 when business data improved and central bankers reasserted their commitment to initiatives intended to encourage economic activity. The European Central Bank (ECB) pushed the deposit interest rate further into negative territory. The Bank of Japan (BOJ) followed the ECB’s lead by setting a negative deposit rate. Negative deposit interest rates are intended to encourage banks to lend assets rather than keep them on deposit. The People’s Bank of China (PBOC) reduced reserve ratios, which also was intended to encourage lending. The ECB expanded its bond-buying program, which injects liquidity into the markets and encourages investment.

For the 12-month reporting period, the MSCI ACWI ex USA Index (Net) and MSCI EM Index (Net) recorded returns of -11.39% and -17.63%, respectively.

A December federal funds rate increase marked divergence of central bank policies.

Bond markets were volatile as well. The Fed’s decision to tighten credit conditions through higher interest rates contrasted with actions by the ECB, the PBOC, and the BOJ. In January 2016, amid falling stock markets, U.S. corporate profits declined for the

¹  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.

²  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

³  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

Letter to shareholders (unaudited) Wells Fargo WealthBuilder Portfolios 3

second consecutive quarter. The Fed expressed hesitancy about additional credit tightening in the near term, which investors appeared to read as accommodative of business activity. Overall, policy actions of central banks and intermittently positive economic data heartened investors as the period drew to a close.

Bond markets benefited during the period, with the Barclays Global Aggregate ex U.S. Dollar Bond Index⁴ gaining 7.25%, the Barclays U.S. Aggregate Bond Index⁵ gaining 2.99%, and the Barclays U.S. Treasury Index⁶ adding 3.01% during the period.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo 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 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

British Exit from European Union (“Brexit”)

On June 23, 2016, the United Kingdom (UK) voted to leave the European Union (EU). It is expected that the UK’s exit from the EU will take place within two years after giving formal notice to the EU of its intention to withdraw; however, the exact timeframe is unknown. There is considerable uncertainty about how the UK exit from the EU will be conducted, how negotiations of necessary treaties and trade agreements will proceed or how the financial markets will react. In addition, it is not yet known whether Brexit will increase the likelihood of other countries seeking to depart the EU. Immediately following the vote, markets in the UK, Europe and the world were negatively impacted. In light of the uncertainties surrounding the impact of Brexit on the broader global economy, the negative impact could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on Europe for their business activities and revenues. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

Notice to shareholders

At a meeting held on July 15, 2016, shareholders of the Wells Fargo WealthBuilder Equity Portfolio approved the merger of the Portfolio into the Wells Fargo WealthBuilder Tactical Equity Portfolio. Following the merger, which occurred after the close of business on July 22, 2016, the Wells Fargo WealthBuilder Tactical Equity Portfolio changed its name to the Wells Fargo WealthBuilder Equity Portfolio.

For current information about your Fund investments, 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  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.

⁵  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁶  The Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index.

4 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Conservative Allocation Portfolio

Investment objective

The Portfolio seeks current income with a secondary emphasis on capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA^®, FRM

Christian L. Chan, CFA^®

Average annual total returns (%) as of May 31, 2016

Including sales charge

Excluding sales charge

Expense ratios1 (%)

Inception date

1 year

5 year

10 year

1 year

5 year

10 year

Gross

Net2

Wells Fargo WealthBuilder Conservative Allocation Portfolio (WBCAX)

9-30-2004

(2.59

)

1.79

3.20

(1.11

)

2.10

3.36

2.04

2.04

WealthBuilder Conservative Allocation Composite Index3

–

–

–

–

1.87

4.36

5.37

–

–

Barclays U.S. Aggregate Bond Index4

–

–

–

–

2.99

3.33

4.97

–

–

MSCI ACWI ex USA Index (Net)5

–

–

–

–

(11.39

)

0.12

2.01

–

–

Russell 3000® Index6

–

–

–

–

0.22

11.15

7.39

–

–

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 Portfolio’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 WealthBuilder Portfolios, the maximum front-end sales charge is 1.50%.

Balanced funds may invest in stocks and bonds. 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 Portfolio. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Portfolio and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. The Portfolio will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Portfolio is exposed to alternative investment risk, foreign investment risk, high-yield securities risk, mortgage- and asset-backed securities risk, and smaller-company investment risk. Consult the Portfolio’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 5

Wells Fargo WealthBuilder Conservative Allocation Portfolio (continued)

Growth of $10,000 investment as of May 31, 2016¹⁰

¹  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.54% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

²  The manager has contractually committed through September 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Portfolio’s Total Annual Fund Operating Expenses After Fee Waiver at 1.50%. 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, net expenses from affiliated master portfolios, and extraordinary expenses are excluded from the expense cap. Without this cap, the Portfolio’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The WealthBuilder Conservative Allocation Composite Index is comprised of the following indexes: Barclays U.S. Aggregate Bond Index (80%), MSCI ACWI ex USA Index (Net) (6%) and Russell 3000^® Index (14%). You cannot invest directly in an index.

⁴  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁵  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

⁶  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁷  The S&P 500 Index consists of approximately 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.

⁸  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁹  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹⁰  The chart compares the performance of the Portfolio for the most recent ten years with the WealthBuilder Conservative Allocation Composite Index, the Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA Index (Net) and the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses and assumes the maximum initial sales charge of 1.50%.

¹¹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by the total net assets of the Portfolio. Holdings are subject to change and may have changed since the date specified.

¹²  Current target allocation includes the effect of any tactical futures overlay that may be in place. Effective cash is comprised of the net impact of long and/or short futures contracts held as part of dynamic risk management strategy. The amounts are subject to change and may have changed since the date specified.

6 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Conservative Allocation Portfolio (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Portfolio underperformed its benchmark, the WealthBuilder Conservative Allocation Composite Index, for the 12-month period that ended May 31, 2016.

n The Portfolio’s bond investments added value on an absolute basis but underperformed relative to the benchmark, primarily due to an allocation to U.S. high yield bonds.

n The Portfolio’s equity investments overall underperformed their benchmarks, due primarily to its overweight to U.S. small cap funds.

n The Portfolio’s allocation to commodities was a significant detractor from performance.

n Tactical asset allocation added to performance through the period. During market corrections in August 2015 and January 2016, the portfolio management team tactically shifted the Portfolio’s allocation during periods of depressed equity prices, which added value.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections during the previous 12 months. Amid fears of contagion from international markets, U.S. equities sold off heavily during August 2015 and January 2016. In August, the contraction was fueled by fears of collapsing growth in China. In January, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive down international demand for U.S. goods. Despite the headwinds, the S&P 500 Index⁷ ended the period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investments.

U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index,⁴ rose 2.99%, outperforming large-cap stocks. Small-cap stocks, as measured by the Russell 2000^® Index,⁸ returned -5.97%. International stocks returned -11.39%, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net).⁵ Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets (EM) Index (Net).⁹

Ten largest holdings (%) as of May 31, 201611
Wells Fargo Core Bond Portfolio	23.80
Wells Fargo Short Duration Government Bond Fund Class R6	18.32
Wells Fargo Government Securities Fund Institutional Class	14.03
PIMCO High Yield Fund Institutional Class	10.15
Oppenheimer International Bond Fund Class Y	4.59
MFS Value Fund Class I	3.03
PIMCO CommodityRealReturn Strategy Fund Institutional Class	2.72
Thornburg International Value Fund Institutional Class	1.82
Voya Global Real Estate Fund Class I	1.79
T. Rowe Price Blue Chip Growth Fund Retail Class	1.78

The Portfolio’s allocation to stocks and bonds is determined by a combination of inputs from multiple quantitative as well as qualitative factors.

During the period, the portfolio management team took tactical advantage of equity price movements. Through our overlays, we tactically increased equity exposures through the first correction in August 2015, increasing equity holdings as Chinese and U.S. markets sold off. As the market correction reversed in the following months, the overlay added value to the Portfolio’s performance. Again in January and February 2016, we saw a similar correction and used our overlays to overweight equities. Through effective execution of our hedging strategy, the team again added to the Portfolio’s returns.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 7

Wells Fargo WealthBuilder Conservative Allocation Portfolio (continued)

During the last 12 months, the team altered the Portfolio’s exposure to international stocks, trimming exposure to emerging markets to increase investments in Japan. The currency exposures to the euro and the yen were tactically hedged.

We also expanded bond investments to include municipal bonds. This helped diversify the sources of fixed-income returns during the period.

Current target allocation as of May 31, 2016¹²

We remain cautiously optimistic about the longer-term outlook for stocks.

Bond yields continued to be depressed. The potential for future interest-rate hikes may be a headwind to increases in overall output in the general U.S. economy. With yields at historical lows, there continues to be a duration risk in bonds.

Internationally, the accommodative policies of the ECB and BOJ are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Neutral target allocation

Please see footnotes on page 5.

8 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Moderate Balanced Portfolio

Investment objective

The Portfolio seeks a combination of current income and capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA^®, FRM

Christian L. Chan, CFA^®

Average annual total returns (%) as of May 31, 2016

Including sales charge

Excluding sales charge

Expense ratios1 (%)

Inception date

1 year

5 year

10 year

1 year

5 year

10 year

Gross

Net2

Wells Fargo WealthBuilder Moderate Balanced Portfolio (WBBBX)

9-30-2004

(3.49

)

3.10

3.52

(2.02

)

3.42

3.68

2.11

2.11

WealthBuilder Moderate Balanced Composite Index3

–

–

–

–

0.66

5.33

5.66

–

–

Barclays U.S. Aggregate Bond Index4

–

–

–

–

2.99

3.33

4.97

–

–

MSCI ACWI ex USA Index (Net)5

–

–

–

–

(11.39

)

0.12

2.01

–

–

Russell 3000® Index6

–

–

–

–

0.22

11.15

7.39

–

–

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 Portfolio’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 WealthBuilder Portfolios, the maximum front-end sales charge is 1.50%.

Balanced funds may invest in stocks and bonds. 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 Portfolio. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Portfolio and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. The Portfolio will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Portfolio is exposed to alternative investment risk, foreign investment risk, high-yield securities risk, mortgage-and asset-backed securities risk, and smaller-company investment risk. Consult the Portfolio’s prospectus for additional information on these and other risks.

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 9

Wells Fargo WealthBuilder Moderate Balanced Portfolio (continued)

Growth of $10,000 investment as of May 31, 2016⁷

¹  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.61% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

²  The manager has contractually committed through September 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Portfolio’s Total Annual Fund Operating Expenses After Fee Waiver at 1.50%. 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, net expenses from affiliated master portfolios, and extraordinary expenses are excluded from the expense cap. Without this cap, the Portfolio’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The WealthBuilder Moderate Balanced Composite Index is comprised of the following indexes: Barclays U.S. Aggregate Bond Index (60%), MSCI ACWI ex USA Index (Net) (12%) and Russell 3000^® Index (28%). You cannot invest directly in an index.

⁴  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁵  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

⁶  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁷  The chart compares the performance of the Portfolio for the most recent ten years with the WealthBuilder Moderate Balanced Composite Index, the Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA Index (Net), and the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses and assumes the maximum initial sales charge of 1.50%.

⁸  The S&P 500 Index consists of approximately 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.

⁹  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

¹⁰  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹¹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by the total net assets of the Portfolio. Holdings are subject to change and may have changed since the date specified.

¹²  Current target allocation includes the effect of any tactical futures overlay that may be in place. Effective cash is comprised of the net impact of long and/or short futures contracts held as part of dynamic risk management strategy. The amounts are subject to change and may have changed since the date specified.

10 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Moderate Balanced Portfolio (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Portfolio underperformed its benchmark, the WealthBuilder Moderate Balanced Composite Index, for the 12-month period that ended May 31, 2016.

n The Portfolio’s bond investments added value on an absolute basis but underperformed relative to the benchmark, primarily due to an allocation to U.S. high yield bonds.

n The Portfolio’s equity investments overall underperformed their benchmarks, due primarily to its overweight to U.S. small cap funds.

n The Portfolio’s allocation to commodities was a significant detractor from performance.

n Tactical asset allocation added to performance through the period. During market corrections in August 2015 and January 2016, the portfolio management team tactically shifted the Portfolio’s allocation during periods of depressed equity prices, which added value.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections during the previous 12 months. Amid fears of contagion from international markets, U.S. equities sold off heavily during August 2015 and January 2016. In August, the contraction was fueled by fears of collapsing growth in China. In January, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive down international demand for U.S. goods. Despite the potential headwinds, the S&P 500 Index⁸ ended the period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) both increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investments.

U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index,⁴ rose 2.99%, outperforming large-cap stocks. Small-cap stocks, as measured by the Russell 2000^® Index,⁹ returned -5.97%. International stocks returned -11.39%, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net).⁵ Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets (EM) Index (Net).¹⁰

Ten largest holdings (%) as of May 31, 201611
Wells Fargo Core Bond Portfolio	17.18
Wells Fargo Short Duration Government Bond Fund Class R6	10.53
Wells Fargo Government Securities Fund Institutional Class	10.39
PIMCO High Yield Fund Institutional Class	8.41
MFS Value Fund Class I	6.09
Oppenheimer International Bond Fund Class Y	4.40
Thornburg International Value Fund Institutional Class	3.62
T. Rowe Price Blue Chip Growth Fund Retail Class	3.55
Oakmark Fund Class I	3.06
Invesco Growth and Income Fund Class R6	3.04

The Portfolio’s allocation to stocks and bonds is determined by a combination of inputs from multiple quantitative as well as qualitative factors.

During the period, the portfolio management team took tactical advantage of equity price movements. Through our overlays, we tactically increased equity exposures through the first correction in August 2015, increasing equity holdings as Chinese and U.S. markets sold off. As the market correction reversed in the following months, the overlay added value to the Portfolio’s performance. Again in January and February 2016, we saw a similar correction and used our overlays to overweight equities. Through effective execution of our hedging strategy, the team again added to the Portfolio’s returns.

Please see footnotes on page 9.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 11

Wells Fargo WealthBuilder Moderate Balanced Portfolio (continued)

During the past 12 months, the team altered the Portfolio’s exposure to international stocks, trimming exposure to emerging markets to increase investments in Japan. Currency exposures to the euro and the yen were tactically hedged.

We also expanded bond investments to include municipal bonds. This helped diversify the sources of fixed-income returns during the period.

Current target allocation as of May 31, 2016¹²

We remain cautiously optimistic about the longer-term outlook for stocks.

Bond yields continued to be depressed. The potential for future interest-rate hikes may be a headwind to increases in overall output in the general U.S. economy. With yields at historical lows, there continues to be a duration risk in bonds.

Internationally, the accommodative policies of the ECB and BOJ are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Neutral target allocation

Please see footnotes on page 9.

12 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Growth Balanced Portfolio

Investment objective

The Portfolio seeks a combination of capital appreciation and current income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA^®, FRM Christian L. Chan, CFA^®

Average annual total returns (%) as of May 31, 2016

Including sales charge

Excluding sales charge

Expense ratios1 (%)

Inception date

1 year

5 year

10 year

1 year

5 year

10 year

Gross

Net2

Wells Fargo WealthBuilder Growth Balanced Portfolio (WBGBX)

10-1-1997

(4.84

)

4.35

3.59

(3.39

)

4.66

3.75

2.17

2.17

WealthBuilder Growth Balanced Composite Index3

–

–

–

–

(0.62

)

6.22

5.84

–

–

Barclays U.S. Aggregate Bond Index4

–

–

–

–

2.99

3.33

4.97

–

–

MSCI ACWI ex USA Index (Net)5

–

–

–

–

(11.39

)

0.12

2.01

–

–

Russell 3000® Index6

–

–

–

–

0.22

11.15

7.39

–

–

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 Portfolio’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 WealthBuilder Portfolios, the maximum front-end sales charge is 1.50%.

Balanced funds may invest in stocks and bonds. 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 Portfolio. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Portfolio and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. The Portfolio will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Portfolio is exposed to alternative investment risk, foreign investment risk, high-yield securities risk, mortgage- and asset-backed securities risk, and smaller-company investment risk. Consult the Portfolio’s prospectus for additional information on these and other risks.

Please see footnotes on page 13.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 13

Wells Fargo WealthBuilder Growth Balanced Portfolio (continued)

Growth of $10,000 investment as of May 31, 2016¹⁰

¹  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.68% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

²  The manager has contractually committed through September 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Portfolio’s Total Annual Fund Operating Expenses After Fee Waiver at 1.50%. 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, net expenses from affiliated master portfolios, and extraordinary expenses are excluded from the expense cap. Without this cap, the Portfolio’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The WealthBuilder Growth Balanced Composite Index is comprised of the following indexes: Barclays U.S. Aggregate Bond Index (40%), MSCI ACWI ex USA Index (Net) (18%) and Russell 3000^® Index (42%). You cannot invest directly in an index.

⁴  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁵  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

⁶  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁷  The S&P 500 Index consists of approximately 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.

⁸  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁹  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹⁰  The chart compares the performance of the Portfolio for the most recent ten years with the WealthBuilder Growth Balanced Composite Index, the Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA Index (Net), and the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses and assumes the maximum initial sales charge of 1.50%.

¹¹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by the total net assets of the Portfolio. Holdings are subject to change and may have changed since the date specified.

¹²  Current target allocation includes the effect of any tactical futures overlay that may be in place. Effective cash is comprised of the net impact of long and/or short futures contracts held as part of dynamic risk management strategy. The amounts are subject to change and may have changed since the date specified.

14 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Growth Balanced Portfolio (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Portfolio underperformed its benchmark, the WealthBuilder Growth Balanced Composite Index, for the 12-month period that ended May 31, 2016.

n The Portfolio’s equity investments overall underperformed their benchmarks, due primarily to its overweight to U.S. small cap funds.

n The Portfolio’s bond investments added value on an absolute basis but underperformed relative to the benchmark, primarily due to an allocation to U.S. high yield bonds.

n The Portfolio’s allocation to commodities was a significant detractor from performance.

n Tactical asset allocation added performance through the period. During market corrections in August 2015 and January 2016, the portfolio management team tactically shifted the Portfolio’s allocation during periods of depressed equity prices, which added value.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections during the previous 12 months. Amid fears of contagion from international markets, U.S. equities sold off heavily during August 2015 and January 2016. In August, the contraction was fueled by fears of collapsing growth in China. In January, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive drown international demand for U.S. goods. Despite the headwinds, the S&P 500 Index⁷ ended the period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investors.

U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index,⁴ rose 2.99%, outperforming large-cap stocks. Small-cap stocks, as measured by the Russell 2000^® Index,⁸ returned -5.97%. International stocks returned -11.39%, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net).⁵ Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets (EM) Index (Net).⁹

Ten largest holdings (%) as of May 31, 201611
Wells Fargo Core Bond Portfolio	11.27
MFS Value Fund Class I	9.12
Wells Fargo Government Securities Fund Institutional Class	8.90
PIMCO High Yield Fund Institutional Class	6.41
Thornburg International Value Fund Institutional Class	5.41
T. Rowe Price Blue Chip Growth Fund Retail Class	5.31
Oppenheimer International Bond Fund Class Y	4.71
Oakmark Fund Class I	4.59
Invesco Growth and Income Fund Class R6	4.58
American Century Growth Fund Institutional Class	3.79

The Portfolio’s allocation to stocks and bonds is determined by a combination of inputs from multiple quantitative as well as qualitative factors.

During the period, the portfolio management team took tactical advantage of equity price movements. Through our overlays, we tactically increased equity exposures through the first correction in August 2015, increasing equity holdings as Chinese and U.S. markets sold off. As the market correction reversed in the following months, the overlay added value to the Portfolio’s performance. Again in January and February 2016, we saw a similar correction and used our overlays to overweight equities. Through effective hedging of our hedging strategy, the team again added to the Portfolio’s returns.

Please see footnotes on page 13.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 15

Wells Fargo WealthBuilder Growth Balanced Portfolio (continued)

During the past 12 months, the team altered the Portfolio’s exposure to international stocks, trimming exposure to emerging markets to increase investments in Japan. Currency exposures to the euro and the yen were tactically hedged.

We also expanded bond investments to include municipal bonds. This helped diversify the sources of fixed-income returns during the period.

Current target allocation as of May 31, 2016¹²

We remain cautiously optimistic about the longer- term outlook for stocks.

Bond yields continue to be depressed. The potential for future interest-rate hikes may be a headwind to increases in overall output in the general economy. With yields at historical lows, there continues to be a duration risk in bonds.

Internationally, the accommodative policies of the ECB and BOJ are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed international economies, emerging markets stocks are at low valuation

levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Neutral target allocation

Please see footnotes on page 13.

16 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Growth Allocation Portfolio

Investment objective

The Portfolio seeks capital appreciation with a secondary emphasis on current income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA^®, FRM

Christian L. Chan, CFA^®

Average annual total returns (%) as of May 31, 2016

Including sales charge

Excluding sales charge

Expense ratios1 (%)

Inception date

1 year

5 year

10 year

1 year

5 year

10 year

Gross

Net2

Wells Fargo WealthBuilder Growth Allocation Portfolio (WBGGX)

9-30-2004

(6.22

)

4.85

3.46

(4.79

)

5.17

3.62

2.24

2.24

WealthBuilder Growth Allocation Composite Index3

–

–

–

–

(1.96

)

7.04

5.90

–

–

Barclays U.S. Aggregate Bond Index4

–

–

–

–

2.99

3.33

4.97

–

–

MSCI ACWI ex USA Index (Net)5

–

–

–

–

(11.39

)

0.12

2.01

–

–

Russell 3000® Index6

–

–

–

–

0.22

11.15

7.39

–

–

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 Portfolio’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 WealthBuilder Portfolios, the maximum front-end sales charge is 1.50%.

Balanced funds may invest in stocks and bonds. 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 Portfolio. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Portfolio and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. The Portfolio will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Portfolio is exposed to alternative investment risk, foreign investment risk, high-yield securities risk, mortgage- and asset-backed securities risk, and smaller-company investment risk. Consult the Portfolio’s prospectus for additional information on these and other risks.

Please see footnotes on page 17.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 17

Wells Fargo WealthBuilder Growth Allocation Portfolio (continued)

Growth of $10,000 investment as of May 31, 2016¹⁰

¹  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.74% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

²  The manager has contractually committed through September 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Portfolio’s Total Annual Fund Operating Expenses After Fee Waiver at 1.50%. 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, net expenses from affiliated master portfolios, and extraordinary expenses are excluded from the expense cap. Without this cap, the Portfolio’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The WealthBuilder Growth Allocation Composite Index is comprised of the following indexes: Barclays U.S. Aggregate Bond Index (20%), MSCI ACWI ex USA Index (Net) (24%) and Russell 3000^® Index (56%). You cannot invest directly in an index.

⁴  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage. You cannot invest directly in an index.

⁵  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

⁶  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁷  The S&P 500 Index consists of approximately 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.

⁸  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁹  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹⁰  The chart compares the performance of the Portfolio for the most recent ten years with the WealthBuilder Growth Allocation Composite Index, the Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA Index (Net), and the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses and assumes the maximum initial sales charge of 1.50%.

¹¹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by the total net assets of the Portfolio. Holdings are subject to change and may have changed since the date specified.

¹²  Current target allocation includes the effect of any tactical futures overlay that may be in place. Effective cash is comprised of the net impact of long and/or short futures contracts held as part of dynamic risk management strategy. The amounts are subject to change and may have changed since the date specified.

18 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Growth Allocation Portfolio (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Portfolio underperformed its benchmark, the WealthBuilder Growth Allocation Composite Index, for the 12-month period that ended May 31, 2016.

n The Portfolio’s equity investments overall underperformed their benchmarks, due primarily to its overweight to U.S. small cap funds.

n The Portfolio’s bond investments added value on an absolute basis but underperformed relative to the benchmark primarily due to an allocation to U.S. high yield bonds.

n The Portfolio’s allocation to commodities was a significant detractor from performance.

n Tactical asset allocation added to performance through the period. During market corrections in August 2015 and January 2016, the portfolio management team tactically shifted the Portfolio’s allocation during periods of depressed equity prices, which added value.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections during the previous 12 months. Amid fears of contagion from international markets, U.S. equities sold off heavily during August 2015 and January 2016. In August, the contraction was fueled by fears of collapsing growth in China. In January, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive down international demand for U.S. goods. Despite the potential headwinds, the S&P 500 Index⁷ ended the period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) both increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investments.

U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index,⁴ rose 2.99%, outperforming large-cap stocks. Small-cap stocks, as measured by the Russell 2000^® Index,⁸ returned -5.97%. International stocks returned -11.39%, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net).⁵ Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets (EM) Index (Net).⁹

Ten largest holdings (%) as of May 31, 201611
MFS Value Fund Class I	12.07
Thornburg International Value Fund Institutional Class	7.17
T. Rowe Price Blue Chip Growth Fund Retail Class	7.03
Oakmark Fund Class I	6.07
Invesco Growth and Income Fund Class R6	6.05
American Century Growth Fund Institutional Class	5.01
Wells Fargo International Growth Portfolio	4.75
Wells Fargo Core Bond Portfolio	4.62
Wells Fargo Endeavor Select Fund Institutional Class	4.03
Wells Fargo Large Cap Growth Fund Class R6	4.01

The Portfolio’s allocation to stocks and bonds is determined by a combination of inputs from multiple quantitative as well as qualitative factors.

During the period, the portfolio management team took tactical advantage of equity price movements. Through our overlays, we tactically increased equity exposures through the first correction in August 2015, increasing equity holdings as Chinese and U.S. markets sold off. As the market correction reversed in the following months, the overlay added value to the Portfolio’s performance. Again in January and February 2016, we saw a similar correction and used our overlays to overweight equities. Through effective execution of our hedging strategy, the team again added to the Portfolio’s returns.

Please see footnotes on page 17.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 19

Wells Fargo WealthBuilder Growth Allocation Portfolio (continued)

During the past 12 months, the team altered the Portfolio’s exposure to international stocks, trimming exposure to emerging markets to increase investments in Japan. Currency exposures to the euro and the yen were tactically hedged.

We also expanded bond investments to include municipal bonds. This helped diversify the sources of fixed-income returns during the period.

Current target allocation as of May 31, 2016¹²

We remain cautiously optimistic about the longer-term outlook for stocks.

Bond yields continued to be depressed. The potential for future interest-rate hikes may be a headwind to increases in overall output in the general U.S. economy. With yields at historical lows, there continues to be a duration risk in bonds.

Internationally, the accommodative policies of the ECB and BOJ are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Neutral target allocation

Please see footnotes on page 17.

20 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Equity Portfolio

Investment objective

The Portfolio seeks long-term capital appreciation with no emphasis on income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA^®, FRM

Christian L. Chan, CFA^®

Average annual total returns (%) as of May 31, 2016

Including sales charge

Excluding sales charge

Expense ratios1 (%)

Inception date

1 year

5 year

10 year

1 year

5 year

10 year

Gross

Net2

Wells Fargo WealthBuilder Equity Portfolio (WBGIX)

10-1-1997

(6.85

)

5.44

3.35

(5.43

)

5.76

3.50

2.35

2.29

WealthBuilder Equity Composite Index3

–

–

–

–

(3.37

)

7.79

5.84

–

–

MSCI ACWI ex USA Index (Net)4

–

–

–

–

(11.39

)

0.12

2.01

–

–

Russell 3000® Index5

–

–

–

–

0.22

11.15

7.39

–

–

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 Portfolio’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 WealthBuilder Portfolios, the maximum front-end sales charge is 1.50%.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. The Portfolio will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. 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 Portfolio is exposed to alternative investment risk, foreign investment risk and smaller-company investment risk. Consult the Portfolio’s prospectus for additional information on these and other risks.

Please see footnotes on page 21.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 21

Wells Fargo WealthBuilder Equity Portfolio (continued)

Growth of $10,000 investment as of May 31, 2016¹⁰

¹  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.79% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

²  The manager has contractually committed through September 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Portfolio’s Total Annual Fund Operating Expenses After Fee Waiver at 1.50%. 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, net expenses from affiliated master portfolios, and extraordinary expenses are excluded from the expense cap. Without this cap, the Portfolio’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The WealthBuilder Equity Composite Index is weighted 30% in the MSCI ACWI ex USA Index (Net) and 70% in the Russell 3000^® Index. You cannot invest directly in an index.

⁴  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

⁵  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁶  The S&P 500 Index consists of approximately 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.

⁷  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁸  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁹  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

¹⁰  The chart compares the performance of the Portfolio for the most recent ten years with the WealthBuilder Equity Composite Index, the MSCI ACWI ex USA Index (Net), and the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses and assumes the maximum initial sales charge of 1.50%.

¹¹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by the total net assets of the Portfolio. Holdings are subject to change and may have changed since the date specified.

¹²  Amounts are calculated based on the long-term investments of the Portfolio. These amounts are subject to change and may have changed since the date specified.

22 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Equity Portfolio (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Portfolio underperformed its benchmark, the WealthBuilder Equity Composite Index, during the preceding 12-month period that ended on May 31, 2016.

n Underlying U.S. funds posted narrow losses and underperformed their U.S. equity benchmark; the large cap growth funds were the biggest detractor.

n Underlying international funds suffered significant losses yet outperformed their international benchmark as a group.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections, defined as a loss of 10% or more, during the previous 12 months. Amid fears of contagion from international markets, U.S. equities sold off heavily during August 2015 and January 2016. During August, the contraction was fueled by fears of collapsing growth in China. During January 2016, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive down international demand for U.S. goods. Despite the potential headwinds, the S&P 500 Index⁶ ended the period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investments.

U.S. bonds, as measured by the Barclays U.S. Aggregate Bond Index,⁷ rose 2.99%, outperforming large-cap stocks. Small-cap stocks, as measured by the Russell 2000^® Index,⁸ returned -5.97%. International stocks returned -11.39%, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net).⁴ Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets (EM) Index (Net).⁹

The Portfolio remained broadly diversified among the four main stock segments: international, small-cap, large-cap growth, and large-cap value stocks.

Ten largest holdings (%) as of May 31, 201611
MFS Value Fund Class I	14.97
T. Rowe Price Blue Chip Growth Fund Retail Class	10.52
Thornburg International Value Fund Institutional Class	8.94
Oakmark Fund Class I	7.55
Invesco Growth and Income Fund Class R6	7.53
American Century Growth Fund Institutional Class	7.47
Wells Fargo Endeavor Select Fund Insitutional Class	6.00
Wells Fargo Large Cap Growth Fund Class R6	6.00
Wells Fargo International Growth Portfolio	5.90
Dodge & Cox International Stock Fund	2.99

Bond yields continued to be depressed. The potential for future interest-rate hikes may be a headwind to increases in overall output in the U.S. general economy.

Internationally, the accommodative policies of the ECB and BOJ are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Please see footnotes on page 21.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 23

Wells Fargo WealthBuilder Equity Portfolio (continued)

Portfolio allocation as of May 31, 2016¹²

Please see footnotes on page 21.

24 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Tactical Equity Portfolio

Investment objective

The Portfolio seeks long-term capital appreciation with no emphasis on income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA^®, FRM

Christian L. Chan, CFA^®

Average annual total returns (%) as of May 31, 2016

Including sales charge

Excluding sales charge

Expense ratios1 (%)

Inception date

1 year

5 year

10 year

1 year

5 year

10 year

Gross

Net2

Wells Fargo WealthBuilder Tactical Equity Portfolio (WBGAX)

10-1-1997

(7.53

)

5.33

3.50

(6.12

)

5.64

3.66

2.29

2.29

WealthBuilder Tactical Equity Composite Index3

–

–

–

–

(3.37

)

7.79

5.84

–

–

MSCI ACWI ex USA Index (Net)4

–

–

–

–

(11.39

)

0.12

2.01

–

–

Russell 3000® Index5

–

–

–

–

0.22

11.15

7.39

–

–

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 Portfolio’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 WealthBuilder Portfolios, the maximum front-end sales charge is 1.50%.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. The Portfolio will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. 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 Portfolio is exposed to alternative investment risk, foreign investment risk and smaller-company investment risk. Consult the Portfolio’s prospectus for additional information on these and other risks.

Please see footnotes on page 25.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 25

Wells Fargo WealthBuilder Tactical Equity Portfolio (continued)

Growth of $10,000 investment as of May 31, 2016⁹

¹  Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.79% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

²  The manager has contractually committed through September 30, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Portfolio’s Total Annual Fund Operating Expenses After Fee Waiver at 1.50%. 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, net expenses from affiliated master portfolios, and extraordinary expenses are excluded from the expense cap. Without this cap, the Portfolio’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The WealthBuilder Tactical Equity Composite Index is weighted 30% in the MSCI ACWI ex USA Index (Net) and 70% in the Russell 3000^® Index. You cannot invest directly in an index.

⁴  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

⁵  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

⁶  The S&P 500 Index consists of approximately 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.

⁷  The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁸  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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.

⁹  The chart compares the performance of the Portfolio for the most recent ten years with the WealthBuilder Tactical Equity Composite Index, the MSCI ACWI ex USA Index (Net), and the Russell 3000^® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses and assumes the maximum initial sales charge of 1.50%.

¹⁰  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by the total net assets of the Portfolio. Holdings are subject to change and may have changed since the date specified.

¹¹  Current target allocation includes the effect of any tactical futures overlay that may be in place. Effective cash is comprised of the net impact of long and/or short futures contracts held as part of dynamic risk management strategy. The amounts are subject to change and may have changed since the date specified.

26 Wells Fargo WealthBuilder Portfolios Performance highlights (unaudited)

Wells Fargo WealthBuilder Tactical Equity Portfolio (continued)

MANAGER’S DISCUSSION

Fund highlights

n The Portfolio underperformed its benchmark, the WealthBuilder Tactical Equity Composite Index, for the 12-month period that ended May 31, 2016.

n Underlying U.S. funds posted narrow losses and underperformed their U.S. equity benchmark; the large cap growth funds were the biggest detractor.

n Underlying international funds suffered significant losses yet outperformed their international benchmark as a group.

n The tactical hedging of the yen and euro also detracted from performance.

Equity markets experienced two corrections during the previous 12 months.

Global equity markets experienced two corrections during the previous 12 months. Amid fears of contagion from international markets, U.S. equities sold off heavily during August 2015 and January 2016. In August, the contraction was fueled by fears of collapsing growth in China. In January, in addition to renewed fears of lower output in China and softer domestic economic data, oil prices dropped below $30 a barrel.

The second correction, which followed the first hike in the federal funds interest rate in a decade, raised concerns that the U.S. Federal Reserve acted too hastily. U.S. investors feared a contracting global economy coupled with the currency and business effects of a rate hike would drive down international demand for U.S. goods. Despite the potential headwinds, the S&P 500 Index⁶ ended the period up 1.72%.

The European Central Bank (ECB) and the Bank of Japan (BOJ) increased monetary stimulus programs that were intended to bolster their local economies. Brazil’s business and political woes continued and China reduced its economic growth forecasts, which tended to restrain investor enthusiasm for international investments.

Small-cap stocks, as measured by the Russell 2000^® Index,⁷ returned -5.97%. International stocks returned -11.39%, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net).⁴ Within international stocks, emerging markets stocks fell the most at -17.63%, as measured by the MSCI Emerging Markets Index (Net).⁸

Ten largest holdings (%) as of May 31, 201610
MFS Value Fund Class I	14.90
Thornburg International Value Fund Institutional Class	8.94
T. Rowe Price Blue Chip Growth Fund Retail Class	8.72
Oakmark Fund Class I	7.51
Invesco Growth and Income Fund Class R6	7.48
American Century Growth Fund Institutional Class	6.22
Wells Fargo International Growth Portfolio	5.89
Wells Fargo Large Cap Growth Fund Class R6	4.99
Wells Fargo Endeavor Select Fund Institutional Class	4.96
Wells Fargo Emerging Growth Portfolio	3.78

During the period, the team altered the Portfolio’s exposure to international stocks, trimming exposure to emerging markets to increase investments in Japan. Currency exposures to the euro and the yen were tactically hedged.

We continue to prefer stocks to bonds.

Bond yields continued to be depressed. The potential for future interest-rate hikes may be a headwind to increases in overall output in the general U.S. economy.

Please see footnotes on page 25.

Performance highlights (unaudited) Wells Fargo WealthBuilder Portfolios 27

Wells Fargo WealthBuilder Tactical Equity Portfolio (continued)

Current target allocation as of May 31, 2016¹¹

Internationally, the accommodative policies of the ECB and BOJ are intended to help bolster their local economies. We believe these central banks will continue to support growth in their economies, which should be supportive of asset prices. In addition to developed international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Neutral target allocation

Please see footnotes on page 25.

28 Wells Fargo WealthBuilder Portfolios 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 (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 December 1, 2015 to May 31, 2016.

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.

Wells Fargo WealthBuilder Conservative Allocation Portfolio	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period¹		Net annualized expense ratio
Actual	$	1,000.00	$	1,011.41	$	7.54		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.50	$	7.57		1.50	%
Wells Fargo WealthBuilder Moderate Balanced Portfolio
Actual	$	1,000.00	$	1,005.56	$	7.46		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.56	$	7.51		1.49	%
Wells Fargo WealthBuilder Growth Balanced Portfolio
Actual	$	1,000.00	$	997.74	$	7.44		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.55	$	7.52		1.49	%
Wells Fargo WealthBuilder Growth Allocation Portfolio
Actual	$	1,000.00	$	987.85	$	7.45		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.50	$	7.57		1.50	%
Wells Fargo WealthBuilder Equity Portfolio
Actual	$	1,000.00	$	980.58	$	7.43		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.50	$	7.57		1.50	%
Wells Fargo WealthBuilder Tactical Equity Portfolio
Actual	$	1,000.00	$	974.37	$	7.40		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.50	$	7.57		1.50	%

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

Portfolio of investments—May 31, 2016 Wells Fargo WealthBuilder Portfolios 29

WEALTHBUILDER CONSERVATIVE ALLOCATION PORTFOLIO

Security name	Shares		Value
Exchange-Traded Funds: 1.67%
iShares MSCI Japan Index ETF		44,690	$	526,448
iShares National AMT-Free Municipal Bond ETF		68,291		7,670,445
WisdomTree Japan Hedged Equity ETF		12,066		529,576
Total Exchange-Traded Funds (Cost $8,588,214)				8,726,469
Investment Companies: 98.35%
Affiliated Master Portfolios: 26.54%
Wells Fargo Core Bond Portfolio				124,676,465
Wells Fargo Emerging Growth Portfolio				4,016,944
Wells Fargo International Growth Portfolio				6,315,708
Wells Fargo Small Company Value Portfolio				4,015,017
				139,024,134
Alternative Investment Funds: 6.46%
AQR Managed Futures Strategy Fund Class I		508,557		5,009,285
PIMCO CommodityRealReturn Strategy Fund Institutional Class		2,058,075		14,262,460
The Arbitrage Fund Class I †		394,333		5,177,593
Voya Global Real Estate Fund Class I		469,303		9,371,972
				33,821,310
Bond Funds: 47.09%
Oppenheimer International Bond Fund Class Y		4,220,182		24,055,035
PIMCO High Yield Fund Institutional Class		6,240,034		53,165,086
Wells Fargo Government Securities Fund Institutional Class (l)		6,475,834		73,500,715
Wells Fargo Short Duration Government Bond Fund Class R6 (l)		9,604,049		95,944,445
				246,665,281
Stock Funds: 18.26%
American Century Growth Fund Institutional Class		232,292		6,636,591
Calamos Market Neutral Income Fund Investor Class		388,696		4,975,307
DFA International Small Cap Value Portfolio Institutional Class		111,394		2,108,679
Dodge & Cox International Stock Fund		88,144		3,174,941
Invesco Growth and Income Fund Class R6		330,124		7,959,302
MFS Value Fund Class I		454,341		15,892,858
Oakmark Fund Class I		122,871		7,974,318
Oppenheimer Developing Markets Fund Class Y		51,569		1,587,812
Royce Pennsylvania Mutual Fund Investor Class		398,317		4,007,071
T. Rowe Price Blue Chip Growth Fund Retail Class †		132,769		9,304,455
T. Rowe Price International Discovery Fund		39,107		2,119,983
Templeton Institutional Foreign Equity Fund Primary Class		169,278		3,155,345
Thornburg International Value Fund Institutional Class		395,118		9,518,397
Wells Fargo Emerging Markets Equity Fund Class R6 (l)		139,881		2,622,762
Wells Fargo Endeavor Select Fund Institutional Class †(l)		571,104		5,305,551
Wells Fargo Large Cap Growth Fund Class R6 (l)		116,760		5,305,562
Wells Fargo Small Cap Value Fund Class R6 †(l)		194,282		4,015,817
				95,664,751
Total Investment Companies (Cost $503,676,170)				515,175,476

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

30 Wells Fargo WealthBuilder Portfolios Portfolio of investments—May 31, 2016

WEALTHBUILDER CONSERVATIVE ALLOCATION PORTFOLIO

Security name	Yield					Shares		Value
Short-Term Investments: 0.26%
Investment Companies: 0.21%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41	%				1,091,019	$	1,091,019
				Maturity date		Principal
U.S. Treasury Securities: 0.05%
U.S. Treasury Bill (z)#		0.13			6-9-2016	$	283,000		282,991
Total Short-Term Investments (Cost $1,374,010)									1,374,010

Total investments in securities (Cost $513,638,394) *	100.28	%		525,275,955
Other assets and liabilities, net	(0.28	)		(1,444,057	)
Total net assets	100.00	%	$	523,831,898

† Non-income-earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

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

* Cost for federal income tax purposes is $521,144,249 and unrealized gains (losses) consists of:

Gross unrealized gains	$	26,475,829
Gross unrealized losses		(22,344,123	)
Net unrealized gains	$	4,131,706

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

Portfolio of investments—May 31, 2016 Wells Fargo WealthBuilder Portfolios 31

WEALTHBUILDER MODERATE BALANCED PORTFOLIO

Security name	Shares		Value
Exchange-Traded Funds: 1.46%
iShares MSCI Japan Index ETF		141,519	$	1,667,094
iShares National AMT-Free Municipal Bond ETF		78,431		8,809,370
WisdomTree Japan Hedged Equity ETF		37,016		1,624,630
Total Exchange-Traded Funds (Cost $12,274,318)				12,101,094
Investment Companies: 98.28%
Affiliated Master Portfolios: 22.67%
Wells Fargo Core Bond Portfolio				143,176,887
Wells Fargo Emerging Growth Portfolio				12,882,232
Wells Fargo International Growth Portfolio				19,977,315
Wells Fargo Small Company Value Portfolio				12,834,637
				188,871,071
Alternative Investment Funds: 6.47%
AQR Managed Futures Strategy Fund Class I		806,041		7,939,505
PIMCO CommodityRealReturn Strategy Fund Institutional Class		3,279,426		22,726,420
The Arbitrage Fund Class I †		630,740		8,281,617
Voya Global Real Estate Fund Class I		749,182		14,961,161
				53,908,703
Bond Funds: 33.73%
Oppenheimer International Bond Fund Class Y		6,436,861		36,690,108
PIMCO High Yield Fund Institutional Class		8,229,000		70,111,082
Wells Fargo Government Securities Fund Institutional Class (l)		7,628,131		86,579,284
Wells Fargo Short Duration Government Bond Fund Class R6 (l)		8,779,414		87,706,343
				281,086,817
Stock Funds: 35.41%
American Century Growth Fund Institutional Class		737,977		21,083,997
Calamos Market Neutral Income Fund Investor Class		511,981		6,553,363
DFA International Small Cap Value Portfolio Institutional Class		353,748		6,696,452
Dodge & Cox International Stock Fund		278,574		10,034,228
Invesco Growth and Income Fund Class R6		1,051,800		25,358,896
MFS Value Fund Class I		1,451,125		50,760,361
Oakmark Fund Class I		392,403		25,466,968
Oppenheimer Developing Markets Fund Class Y		162,632		5,007,450
Royce Pennsylvania Mutual Fund Investor Class		1,265,156		12,727,473
T. Rowe Price Blue Chip Growth Fund Retail Class †		422,199		29,587,731
T. Rowe Price International Discovery Fund		124,701		6,760,029
Templeton Institutional Foreign Equity Fund Primary Class		534,943		9,971,335
Thornburg International Value Fund Institutional Class		1,250,877		30,133,618
Wells Fargo Emerging Markets Equity Fund Class R6 (l)		439,818		8,246,588
Wells Fargo Endeavor Select Fund Institutional Class †(l)		1,825,750		16,961,217
Wells Fargo Large Cap Growth Fund Class R6 (l)		371,415		16,877,116
Wells Fargo Small Cap Value Fund Class R6 †(l)		619,765		12,810,541
				295,037,363
Total Investment Companies (Cost $799,354,307)				818,903,954

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

32 Wells Fargo WealthBuilder Portfolios Portfolio of investments—May 31, 2016

WEALTHBUILDER MODERATE BALANCED PORTFOLIO

Security name	Yield					Shares		Value
Short-Term Investments: 0.26%
Investment Companies: 0.15%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41	%				1,265,358	$	1,265,358
				Maturity date		Principal
U.S. Treasury Securities: 0.11%
U.S. Treasury Bill (z)#		0.13			6-9-2016	$	912,000		911,970
Total Short-Term Investments (Cost $2,177,329)									2,177,328

Total investments in securities (Cost $813,805,954) *	100.00	%		833,182,376
Other assets and liabilities, net	0.00			35,267
Total net assets	100.00	%	$	833,217,643

† Non-income-earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

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

* Cost for federal income tax purposes is $820,542,776 and unrealized gains (losses) consists of:

Gross unrealized gains	$	59,617,237
Gross unrealized losses		(46,977,637	)
Net unrealized gains	$	12,639,600

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

Portfolio of investments—May 31, 2016 Wells Fargo WealthBuilder Portfolios 33

WEALTHBUILDER GROWTH BALANCED PORTFOLIO

Security name	Shares		Value
Exchange-Traded Funds: 1.23%
iShares MSCI Japan Index ETF		246,069	$	2,898,693
iShares National AMT-Free Municipal Bond ETF		56,390		6,333,725
WisdomTree Japan Hedged Equity ETF		60,553		2,657,671
Total Exchange-Traded Funds (Cost $12,540,581)				11,890,089
Investment Companies: 98.50%
Affiliated Master Portfolios: 19.47%
Wells Fargo Core Bond Portfolio				108,943,380
Wells Fargo Emerging Growth Portfolio				22,368,837
Wells Fargo International Growth Portfolio				34,619,242
Wells Fargo Small Company Value Portfolio				22,334,971
				188,266,430
Alternative Investment Funds: 6.43%
AQR Managed Futures Strategy Fund Class I		922,649		9,088,096
PIMCO CommodityRealReturn Strategy Fund Institutional Class		3,807,866		26,388,513
The Arbitrage Fund Class I †		731,423		9,603,578
Voya Global Real Estate Fund Class I		859,202		17,158,262
				62,238,449
Bond Funds: 20.02%
Oppenheimer International Bond Fund Class Y		7,983,619		45,506,630
PIMCO High Yield Fund Institutional Class		7,272,638		61,962,876
Wells Fargo Government Securities Fund Institutional Class (l)		7,584,472		86,083,752
				193,553,258
Stock Funds: 52.58%
American Century Growth Fund Institutional Class		1,282,082		36,629,071
Calamos Market Neutral Income Fund Investor Class		504,066		6,452,041
DFA International Small Cap Value Portfolio Institutional Class		616,969		11,679,230
Dodge & Cox International Stock Fund		486,048		17,507,448
Invesco Growth and Income Fund Class R6		1,835,702		44,258,776
MFS Value Fund Class I		2,521,110		88,188,420
Oakmark Fund Class I		684,123		44,399,585
Oppenheimer Developing Markets Fund Class Y		284,082		8,746,876
Royce Pennsylvania Mutual Fund Investor Class		2,201,587		22,147,962
T. Rowe Price Blue Chip Growth Fund Retail Class †		733,038		51,371,297
T. Rowe Price International Discovery Fund		216,748		11,749,898
Templeton Institutional Foreign Equity Fund Primary Class		932,570		17,383,098
Thornburg International Value Fund Institutional Class		2,173,337		52,355,698
Wells Fargo Emerging Markets Equity Fund Class R6 (l)		770,740		14,451,367
Wells Fargo Endeavor Select Fund Institutional Class †(l)		3,160,092		29,357,259
Wells Fargo Large Cap Growth Fund Class R6 (l)		644,959		29,306,936
Wells Fargo Small Cap Value Fund Class R6 †(l)		1,083,617		22,398,371
				508,383,333
Total Investment Companies (Cost $915,439,728)				952,441,470

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

34 Wells Fargo WealthBuilder Portfolios Portfolio of investments—May 31, 2016

WEALTHBUILDER GROWTH BALANCED PORTFOLIO

Security name	Yield					Shares		Value
Short-Term Investments: 0.27%
Investment Companies: 0.14%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41	%				1,324,716	$	1,324,716
				Maturity date		Principal
U.S. Treasury Securities: 0.13%
U.S. Treasury Bill (z)#		0.12			6-9-2016	$	1,315,000		1,314,957
Total Short-Term Investments (Cost $2,639,677)									2,639,673

Total investments in securities (Cost $930,619,986) *	100.00	%		966,971,232
Other assets and liabilities, net	0.00			(39,054	)
Total net assets	100.00	%	$	966,932,178

† Non-income-earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

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

* Cost for federal income tax purposes is $944,392,131 and unrealized gains (losses) consists of:

Gross unrealized gains	$	80,978,171
Gross unrealized losses		(58,399,070	)
Net unrealized gains	$	22,579,101

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

Portfolio of investments—May 31, 2016 Wells Fargo WealthBuilder Portfolios 35

WEALTHBUILDER GROWTH ALLOCATION PORTFOLIO

Security name	Shares		Value
Exchange-Traded Funds: 1.02%
iShares MSCI Japan Index ETF		144,590	$	1,703,270
iShares National AMT-Free Municipal Bond ETF		10,072		1,131,287
WisdomTree Japan Hedged Equity ETF		35,214		1,545,542
Total Exchange-Traded Funds (Cost $4,865,164)				4,380,099
Investment Companies: 98.73%
Affiliated Master Portfolios: 15.45%
Wells Fargo Core Bond Portfolio				19,855,433
Wells Fargo Emerging Growth Portfolio				12,994,194
Wells Fargo International Growth Portfolio				20,388,098
Wells Fargo Small Company Value Portfolio				13,139,432
				66,377,157
Alternative Investment Funds: 6.35%
AQR Managed Futures Strategy Fund Class I		395,016		3,890,906
PIMCO CommodityRealReturn Strategy Fund Institutional Class		1,677,987		11,628,447
The Arbitrage Fund Class I †		317,335		4,166,610
Voya Global Real Estate Fund Class I		379,483		7,578,283
				27,264,246
Bond Funds: 7.37%
Oppenheimer International Bond Fund Class Y		1,496,114		8,527,848
PIMCO High Yield Fund Institutional Class		1,342,286		11,436,276
Wells Fargo Government Securities Fund Institutional Class (l)		1,029,283		11,682,358
				31,646,482
Stock Funds: 69.56%
American Century Growth Fund Institutional Class		753,096		21,515,945
Calamos Market Neutral Income Fund Class I		311,585		3,988,289
DFA International Small Cap Value Portfolio Institutional Class		362,814		6,868,073
Dodge & Cox International Stock Fund		283,708		10,219,171
Invesco Growth and Income Fund Class R6		1,078,068		25,992,213
MFS Value Fund Class I		1,482,311		51,851,227
Oakmark Fund Class I		402,070		26,094,317
Oppenheimer Developing Markets Fund Class Y		166,424		5,124,203
Royce Pennsylvania Mutual Fund Investor Class		1,294,310		13,020,757
T. Rowe Price Blue Chip Growth Fund Retail Class †		430,898		30,197,344
T. Rowe Price International Discovery Fund		127,390		6,905,827
Templeton Institutional Foreign Equity Fund Primary Class		547,200		10,199,807
Thornburg International Value Fund Institutional Class		1,278,453		30,797,941
Wells Fargo Emerging Markets Equity Fund Class R6 (l)		450,592		8,448,600
Wells Fargo Endeavor Select Fund Institutional Class †(l)		1,862,181		17,299,658
Wells Fargo Large Cap Growth Fund Class R6 (l)		379,154		17,228,754
Wells Fargo Small Cap Value Fund Class R6 †(l)		634,547		13,116,082
				298,868,208
Total Investment Companies (Cost $409,002,191)				424,156,093

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

36 Wells Fargo WealthBuilder Portfolios Portfolio of investments—May 31, 2016

WEALTHBUILDER GROWTH ALLOCATION PORTFOLIO

Security name	Yield			Maturity date		Principal		Value
Short-Term Investments: 0.16%
U.S. Treasury Securities: 0.16%
U.S. Treasury Bill (z)#		0.11	%		6-9-2016	$	696,000	$	695,977
Total Short-Term Investments (Cost $695,980)									695,977

Total investments in securities (Cost $414,563,335) *	99.91	%		429,232,169
Other assets and liabilities, net	0.09			395,427
Total net assets	100.00	%	$	429,627,596

† Non-income earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

* Cost for federal income tax purposes is $417,545,054 and unrealized gains (losses) consists of:

Gross unrealized gains	$	38,949,926
Gross unrealized losses		(27,262,811	)
Net unrealized gains	$	11,687,115

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

Portfolio of investments—May 31, 2016 Wells Fargo WealthBuilder Portfolios 37

WEALTHBUILDER EQUITY PORTFOLIO

Security name				Shares		Value
Investment Companies: 99.88%
Affiliated Master Portfolios: 10.97%
Wells Fargo Emerging Growth Portfolio						$	3,397,239
Wells Fargo International Growth Portfolio							7,906,391
Wells Fargo Small Company Value Portfolio							3,390,251
							14,693,881
Stock Funds: 88.91%
American Century Growth Fund Institutional Class					350,394		10,010,746
DFA International Small Cap Value Portfolio Institutional Class					140,850		2,666,295
Dodge & Cox International Stock Fund					111,262		4,007,672
Invesco Growth and Income Fund Class R6					418,353		10,086,489
MFS Value Fund Class I					573,370		20,056,466
Oakmark Fund Class I					155,908		10,118,404
Oppenheimer Developing Markets Fund Class Y					107,577		3,312,310
Royce Pennsylvania Mutual Fund Investor Class					335,175		3,371,864
T. Rowe Price Blue Chip Growth Fund Retail Class †					201,020		14,087,469
T. Rowe Price International Discovery Fund					49,414		2,678,720
Templeton Institutional Foreign Equity Fund Primary Class					213,608		3,981,661
Thornburg International Value Fund Institutional Class					497,102		11,975,187
Wells Fargo Emerging Markets Equity Fund Class R6 (l)					175,032		3,281,845
Wells Fargo Endeavor Select Fund Institutional Class †(l)					865,622		8,041,633
Wells Fargo Large Cap Growth Fund Class R6 (l)					176,914		8,038,992
Wells Fargo Small Cap Value Fund Class R6 (l)†					164,410		3,398,353
							119,114,106
Total Investment Companies (Cost $118,968,622)							133,807,987
	Yield
Short-Term Investments: 0.12%
Investment Companies: 0.12%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41	%		155,252		155,252
Total Short-Term Investments (Cost $155,252)							155,252

Total investments in securities (Cost $119,123,874) *	100.00	%		133,963,239
Other assets and liabilities, net	(0.00	)		669
Total net assets	100.00	%	$	133,963,908

† Non-income earning security

(l) The issuer of the security is an affiliated person of the Portfolio 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 $116,840,949 and unrealized gains (losses) consists of:

Gross unrealized gains	$	21,593,225
Gross unrealized losses		(4,470,935	)
Net unrealized gains	$	17,122,290

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

38 Wells Fargo WealthBuilder Portfolios Portfolio of investments—May 31, 2016

WEALTHBUILDER TACTICAL EQUITY PORTFOLIO

Security name						Shares		Value
Exchange-Traded Funds: 0.98%
iShares MSCI Japan Index ETF							177,120	$	2,086,474
WisdomTree Japan Hedged Equity ETF							46,565		2,043,738
Total Exchange-Traded Funds (Cost $4,759,463)									4,130,212
Investment Companies: 98.56%
Affiliated Master Portfolios: 13.45%
Wells Fargo Emerging Growth Portfolio									16,004,365
Wells Fargo International Growth Portfolio									24,932,164
Wells Fargo Small Company Value Portfolio									15,975,319
									56,911,848
Stock Funds: 85.11%
American Century Growth Fund Institutional Class							920,724		26,305,080
DFA International Small Cap Value Portfolio Institutional Class							442,820		8,382,577
Dodge & Cox International Stock Fund							350,790		12,635,467
Invesco Growth and Income Fund Class R6							1,313,060		31,657,871
MFS Value Fund Class I							1,802,611		63,055,319
Oakmark Fund Class I							489,422		31,763,462
Oppenheimer Developing Markets Fund Class Y							203,794		6,274,817
Royce Pennsylvania Mutual Fund Investor Class							1,582,918		15,924,158
T. Rowe Price Blue Chip Growth Fund Retail Class †							526,432		36,892,362
T. Rowe Price International Discovery Fund							155,012		8,403,177
Templeton Institutional Foreign Equity Fund Primary Class							673,637		12,556,596
Thornburg International Value Fund Institutional Class							1,569,514		37,809,594
Wells Fargo Emerging Markets Equity Fund Class R6 (l)							553,651		10,380,950
Wells Fargo Endeavor Select Fund Institutional Class †(l)							2,260,399		20,999,107
Wells Fargo Large Cap Growth Fund Class R6 (l)							464,289		21,097,281
Wells Fargo Small Cap Value Fund Class R6 (l)†							773,175		15,981,519
									360,119,337
Total Investment Companies (Cost $386,981,706)									417,031,185
	Yield
Short-Term Investments: 0.42%
Investment Companies: 0.29%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.41	%				1,212,049		1,212,049
				Maturity date		Principal
U.S. Treasury Securities: 0.13%
U.S. Treasury Bill (z)#		0.10			6-9-2016	$	272,000		271,991
U.S. Treasury Bill (z)#		0.25			6-16-2016		300,000		299,981
									571,972
Total Short-Term Investments (Cost $1,784,008)									1,784,021

Total investments in securities (Cost $393,525,177) *	99.96	%		422,945,418
Other assets and liabilities, net	0.04			163,169
Total net assets	100.00	%	$	423,108,587

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

Portfolio of investments—May 31, 2016 Wells Fargo WealthBuilder Portfolios 39

WEALTHBUILDER TACTICAL EQUITY PORTFOLIO

† Non-income earning security

(l) The issuer of the security is an affiliated person of the Portfolio as defined in the Investment Company Act of 1940.

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

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

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

* Cost for federal income tax purposes is $392,018,132 and unrealized gains (losses) consists of:

Gross unrealized gains	$	49,858,431
Gross unrealized losses		(18,931,145	)
Net unrealized gains	$	30,927,286

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

40 Wells Fargo WealthBuilder Portfolios Statements of assets and liabilities—May 31, 2016

	WealthBuilder Conservative Allocation Portfolio		WealthBuilder Moderate Balanced Portfolio
Assets
Investments
In unaffiliated Underlying Funds and securities, at value (see cost below)	$	198,465,950	$	413,864,858
In affiliated Underlying Funds, at value (see cost below)		187,785,871		230,446,447
In affiliated Master Portfolios, at value (see cost below)		139,024,134		188,871,071
Total investments, at value (see cost below)		525,275,955		833,182,376
Cash		432,436		650,405
Receivable for investments sold		0		0
Receivable for Portfolio shares sold		560,282		1,966,788
Receivable for dividends		593,405		731,179
Receivable for daily variation margin on open futures contracts		37,156		120,378
Prepaid expenses and other assets		11,650		22,875
Total assets		526,910,884		836,674,001
Liabilities
Payable for investments purchased		1,019,909		1,370,948
Payable for Portfolio shares redeemed		1,377,285		1,011,820
Management fee payable		110,207		175,325
Distribution fee payable		332,254		525,976
Administration fee payable		93,031		147,273
Shareholder servicing fees payable		110,751		175,325
Accrued expenses and other liabilities		35,549		49,691
Total liabilities		3,078,986		3,456,358
Total net assets	$	523,831,898	$	833,217,643
NET ASSETS CONSIST OF
Paid-in capital	$	511,455,366	$	797,080,422
Undistributed (overdistributed/accumulated) net investment income (loss)		5,393		194,432
Accumulated net realized gains (losses) on investments		851,609		16,948,623
Net unrealized gains on investments		11,519,530		18,994,166
Total net assets	$	523,831,898	$	833,217,643
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets	$	523,831,898	$	833,217,643
Shares outstanding1		50,715,548		73,104,274
Net asset value per share		$10.33		$11.40
Maximum offering price per share2		$10.49		$11.57
Investments in unaffiliated Underlying Funds and securities, at cost	$	188,630,032	$	389,404,837
Investments in affiliated Underlying Funds, at cost	$	184,761,362	$	231,154,310
Investments in affiliated Master Portfolios, at cost	$	140,247,000	$	193,246,807
Total investments, at cost	$	513,638,394	$	813,805,954

¹  Each Portfolio has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/98.50 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.

Statements of assets and liabilities—May 31, 2016 Wells Fargo WealthBuilder Portfolios 41

WealthBuilder Growth Balanced Portfolio			WealthBuilder Growth Allocation Portfolio			WealthBuilder Equity Portfolio		WealthBuilder Tactical Equity Portfolio
$	595,782,401		$	295,079,560		$	96,353,283	$	296,362,664
	182,922,401			67,775,452			22,916,075		69,670,906
	188,266,430			66,377,157			14,693,881		56,911,848
	966,971,232			429,232,169			133,963,239		422,945,418
	1,150,924			744,067			189,223		583,577
	176,490			222,883			55,525		204,374
	1,596,680			427,597			41,117		549,641
	594,326			104,512			0		0
	205,203			119,366			0		143,213
	26,573			19,900			10,186		11,642
	970,721,428			430,870,494			134,259,290		424,437,865
	599,896			105,494			0		0
	1,931,104			580,971			122,883		794,469
	203,287			86,874			17,285		83,365
	609,862			269,667			83,779		265,024
	170,761			75,507			23,458		74,207
	203,287			89,889			27,926		88,341
	71,053			34,496			20,051		23,872
	3,789,250			1,242,898			295,382		1,329,278
$	966,932,178		$	429,627,596		$	133,963,908	$	423,108,587
$	909,204,883		$	399,859,087		$	113,870,870	$	415,776,670
	(253,996	)		(827,470	)		249		(1,656,016	)
	22,233,054			16,263,690			5,253,424		(20,082,063	)
	35,748,237			14,332,289			14,839,365		29,069,996
$	966,932,178		$	429,627,596		$	133,963,908	$	423,108,587
$	966,932,178		$	429,627,596		$	133,963,908	$	423,108,587
	72,736,327			32,091,673			8,840,440		23,182,768
	$13.29			$13.39			$ 15.15		$18.25
	$13.49			$13.59			$ 15.38		$18.53
$	546,453,981		$	270,218,432		$	78,225,043	$	253,320,457
$	187,538,451		$	73,406,430		$	24,426,847	$	75,924,884
$	196,627,554		$	70,938,473		$	16,471,984	$	64,279,836
$	930,619,986		$	414,563,335		$	119,123,874	$	393,525,177

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

42 Wells Fargo WealthBuilder Portfolios Statements of operations—year ended May 31, 2016

	WealthBuilder Conservative Allocation Portfolio			WealthBuilder Moderate Balanced Portfolio
Investment income
Dividends from unaffiliated Underlying Funds	$	6,231,002		$	10,680,927
Dividends from affiliated Underlying Funds		2,759,247			3,000,700
Interest allocated from affiliated Master Portfolios		2,741,174			3,230,662
Dividends allocated from affiliated Master Portfolios*		199,318			640,067
Affiliated income allocated from affiliated Master Portfolios		18,916			24,826
Securities lending income allocated from affiliated Master Portfolios		23,942			66,501
Interest		932			2,941
Expenses allocated from affiliated Master Portfolios		(579,370	)		(939,625	)
Waivers allocated from affiliated Master Portfolios		16,928			19,981
Total investment income		11,412,089			16,726,980
Expenses
Management fee		1,309,479			2,119,467
Administration fee		1,122,161			1,816,895
Shareholder servicing fees		1,309,198			2,119,265
Distribution fee		3,928,436			6,358,400
Custody and accounting fees		72,536			69,948
Professional fees		33,064			33,065
Registration fees		55,394			51,397
Shareholder report expenses		30,631			50,998
Trustees’ fees and expenses		11,946			12,762
Interest expense		0			196
Other fees and expenses		12,099			17,432
Total expenses		7,884,944			12,649,825
Less: Fee waivers and/or expense reimbursements		(28,076	)		(26,755	)
Net expenses		7,856,868			12,623,070
Net investment income (loss)		3,555,221			4,103,910
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated Underlying Funds		(2,899,285	)		(5,620,203	)
Affiliated Underlying Funds		2,529,182			6,248,403
Futures transactions		1,154,418			4,016,277
Capital gain distributions from unaffiliated Underlying Funds		5,508,933			15,227,361
Capital gain distributions from affiliated Underlying Funds		3,400,243			10,512,134
Securities transactions allocated from affiliated Master Portfolios		2,119,669			2,665,697
Net realized gains on investments		11,813,160			33,049,669
Net change in unrealized gains (losses) on:
Unaffiliated Underlying Funds		(12,623,549	)		(32,029,937	)
Affiliated Underlying Funds		(6,425,127	)		(17,917,730	)
Futures transactions		(101,264	)		(329,989	)
Securities transactions allocated from affiliated Master Portfolios		(2,630,630	)		(6,700,077	)
Net change in unrealized gains (losses) on investments		(21,780,570	)		(56,977,733	)
Net realized and unrealized gains (losses) on investments		(9,967,410	)		(23,928,064	)
Net decrease in net assets resulting from operations	$	(6,412,189	)	$	(19,824,154	)
* Net of foreign dividend withholding taxes allocated from affiliated Master Portfolios in the amount of		$11,833			$37,563

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

Statements of operations—year ended May 31, 2016 Wells Fargo WealthBuilder Portfolios 43

WealthBuilder Growth Balanced Portfolio			WealthBuilder Growth Allocation Portfolio			WealthBuilder Equity Portfolio			WealthBuilder Tactical Equity Portfolio
$	13,038,158		$	5,160,866		$	1,241,238		$	3,836,613
	1,508,851			384,611			84,425			244,064
	2,461,446			449,304			0			0
	1,109,600			655,174			228,930			807,916
	23,078			7,212			1,495			5,339
	109,230			62,868			18,834			77,198
	3,866			1,899			0			1,060
	(1,107,173	)		(488,014	)		(137,865	)		(512,282	)
	15,227			2,781			0			0
	17,162,283			6,236,701			1,437,057			4,459,908
	2,445,721			1,083,548			345,126			1,069,051
	2,097,321			928,715			296,034			916,634
	2,446,722			1,083,548			345,126			1,068,091
	7,340,937			3,250,645			1,035,377			3,207,154
	85,427			59,471			42,520			53,491
	32,563			32,559			33,397			33,010
	68,329			48,502			30,445			45,080
	76,681			42,745			10,541			27,466
	12,945			12,945			19,716			19,693
	0			0			0			0
	16,153			9,507			9,828			12,146
	14,622,799			6,552,185			2,168,110			6,451,816
	(32,007	)		(50,895	)		(97,356	)		(41,199	)
	14,590,792			6,501,290			2,070,754			6,410,617
	2,571,491			(264,589	)		(633,697	)		(1,950,709	)
	(6,126,547	)		(3,540,408	)		(653,058	)		(2,172,860	)
	11,117,761			5,121,030			2,937,910			7,459,886
	3,538,361			1,311,829			0			(1,026,916	)
	24,764,396			14,060,805			5,266,620			16,693,017
	18,074,387			10,494,175			4,166,746			12,703,560
	2,557,938			400,333			679,628			1,235,698
	53,926,296			27,847,764			12,397,846			34,892,385
	(50,548,022	)		(27,039,330	)		(9,779,876	)		(29,748,400	)
	(30,380,758	)		(16,953,094	)		(7,836,049	)		(22,507,470	)
	(729,291	)		(504,273	)		0			(832,133	)
	(10,855,595	)		(5,921,658	)		(2,644,250	)		(8,206,963	)
	(92,513,666	)		(50,418,355	)		(20,260,175	)		(61,294,966	)
	(38,587,370	)		(22,570,591	)		(7,862,329	)		(26,402,581	)
$	(36,015,879	)	$	(22,835,180	)	$	(8,496,026	)	$	(28,353,290	)
	$65,186			$38,406			$14,997			$47,180

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

44 Wells Fargo WealthBuilder Portfolios Statements of changes in net assets

	WealthBuilder Conservative Allocation Portfolio
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	3,555,221					$	1,894,442
Net realized gains on investments					11,813,160						18,152,708
Net change in unrealized gains (losses) on investments					(21,780,570	)					(10,251,043	)
Net increase (decrease) in net assets resulting from operations					(6,412,189	)					9,796,107
Distributions to shareholders from
Net investment income					(4,111,475	)					(2,454,091	)
Net realized gains					(13,989,868	)					(12,035,964	)
Total distributions to shareholders					(18,101,343	)					(14,490,055	)
Capital share transactions		Shares						Shares
Proceeds from shares sold		11,262,600			116,710,681			10,584,440			114,883,902
Reinvestment of distributions		1,769,710			18,074,814			1,349,657			14,475,121
Payment for shares redeemed		(12,671,692	)		(131,499,027	)		(14,783,524	)		(160,542,713	)
Net increase (decrease) in net assets resulting from capital share transactions					3,286,468						(31,183,690	)
Total decrease in net assets					(21,227,064	)					(35,877,638	)
Net assets
Beginning of period					545,058,962						580,936,600
End of period				$	523,831,898					$	545,058,962
Undistributed net investment income				$	5,393					$	83,465

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

Statements of changes in net assets Wells Fargo WealthBuilder Portfolios 45

	WealthBuilder Moderate Balanced Portfolio
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	4,103,910					$	1,846,584
Net realized gains on investments					33,049,669						46,273,697
Net change in unrealized gains (losses) on investments					(56,977,733	)					(18,591,731	)
Net increase (decrease) in net assets resulting from operations					(19,824,154	)					29,528,550
Distributions to shareholders from
Net investment income					(5,066,403	)					(4,792,750	)
Net realized gains					(33,712,193	)					(25,821,821	)
Total distributions to shareholders					(38,778,596	)					(30,614,571	)
Capital share transactions		Shares						Shares
Proceeds from shares sold		12,731,081			147,098,031			14,751,165			179,406,067
Reinvestment of distributions		3,437,045			38,720,686			2,554,487			30,574,626
Payment for shares redeemed		(16,329,458	)		(187,173,600	)		(15,061,182	)		(183,046,028	)
Net increase (decrease) in net assets resulting from capital share transactions					(1,354,883	)					26,934,665
Total increase (decrease) in net assets					(59,957,633	)					25,848,644
Net assets
Beginning of period					893,175,276						867,326,632
End of period				$	833,217,643					$	893,175,276
Undistributed net investment income				$	194,432					$	8,089

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

46 Wells Fargo WealthBuilder Portfolios Statements of changes in net assets

	WealthBuilder Growth Balanced Portfolio
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment income				$	2,571,491					$	624,272
Net realized gains on investments					53,926,296						71,458,770
Net change in unrealized gains (losses) on investments					(92,513,666	)					(25,710,997	)
Net increase (decrease) in net assets resulting from operations					(36,015,879	)					46,372,045
Distributions to shareholders from
Net investment income					(4,755,991	)					(7,084,736	)
Net realized gains					(47,555,710	)					(31,685,911	)
Total distributions to shareholders					(52,311,701	)					(38,770,647	)
Capital share transactions		Shares						Shares
Proceeds from shares sold		11,752,345			160,180,764			13,462,004			193,585,803
Reinvestment of distributions		3,970,170			52,269,033			2,738,063			38,748,055
Payment for shares redeemed		(13,141,127	)		(175,600,976	)		(10,990,169	)		(158,117,020	)
Net increase in net assets resulting from capital share transactions					36,848,821						74,216,838
Total increase (decrease) in net assets					(51,478,759	)					81,818,236
Net assets
Beginning of period					1,018,410,937						936,592,701
End of period				$	966,932,178					$	1,018,410,937
Undistributed (overdistributed) net investment income				$	(253,996	)				$	64,025

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

Statements of changes in net assets Wells Fargo WealthBuilder Portfolios 47

	WealthBuilder Growth Allocation Portfolio
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment loss				$	(264,589	)				$	(833,169	)
Net realized gains on investments					27,847,764						36,094,950
Net change in unrealized gains (losses) on investments					(50,418,355	)					(9,975,831	)
Net increase (decrease) in net assets resulting from operations					(22,835,180	)					25,285,950
Distributions to shareholders from
Net investment income					(1,351,047	)					(3,617,950	)
Net realized gains					(24,150,116	)					(17,215,777	)
Total distributions to shareholders					(25,501,163	)					(20,833,727	)
Capital share transactions		Shares						Shares
Proceeds from shares sold		5,396,148			74,412,404			5,982,612			88,279,600
Reinvestment of distributions		1,913,338			25,485,665			1,439,960			20,806,021
Payment for shares redeemed		(5,456,680	)		(73,073,460	)		(4,390,446	)		(64,636,176	)
Net increase in net assets resulting from capital share transactions					26,824,609						44,449,445
Total increase (decrease) in net assets					(21,511,734	)					48,901,668
Net assets
Beginning of period					451,139,330						402,237,662
End of period				$	429,627,596					$	451,139,330
Accumulated net investment loss				$	(827,470	)				$	(299,681	)

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

48 Wells Fargo WealthBuilder Portfolios Statements of changes in net assets

	WealthBuilder Equity Portfolio
	Year ended May 31, 2016						Year ended May 31, 2015
Operations
Net investment loss				$	(633,697	)				$	(633,406	)
Net realized gains on investments					12,397,846						14,978,752
Net change in unrealized gains (losses) on investments					(20,260,175	)					(4,136,119	)
Net increase (decrease) in net assets resulting from operations					(8,496,026	)					10,209,227
Capital share transactions		Shares						Shares
Proceeds from shares sold		1,036,835			15,730,212			1,596,485			24,451,434
Payment for shares redeemed		(1,479,012	)		(21,987,898	)		(1,564,539	)		(24,079,607	)
Net increase (decrease) in net assets resulting from capital share transactions					(6,257,686	)					371,827
Total increase (decrease) in net assets					(14,753,712	)					10,581,054
Net assets
Beginning of period					148,717,620						138,136,566
End of period				$	133,963,908					$	148,717,620
Undistributed (accumulated) net investment income (loss)				$	249					$	(226,350	)

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

Statements of changes in net assets Wells Fargo WealthBuilder Portfolios 49

	WealthBuilder Tactical Equity Portfolio
	Year ended May 31, 2016								Year ended May 31, 2015
Operations
Net investment loss				$	(1,950,709	)			$	(1,889,760	)
Net realized gains on investments					34,892,385					44,444,424
Net change in unrealized gains (losses) on investments					(61,294,966	)				(11,412,075	)
Net increase (decrease) in net assets resulting from operations					(28,353,290	)				31,142,589
Capital share transactions		Shares					Shares
Proceeds from shares sold		3,205,454			58,573,911		4,276,140			79,661,839
Payment for shares redeemed		(3,286,179	)		(59,408,002	)	(4,359,610	)		(80,457,955	)
Net decrease in net assets resulting from capital share transactions					(834,091	)				(796,116	)
Total increase (decrease) in net assets					(29,187,381	)				30,346,473
Net assets
Beginning of period					452,295,968					421,949,495
End of period				$	423,108,587				$	452,295,968
Accumulated net investment loss				$	(1,656,016	)			$	(998,320	)

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

50 Wells Fargo WealthBuilder Portfolios Financial highlights

	Beginning net asset value per share		Net investment income (loss)			Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Distributions from net realized gains			Ending net asset value per share
WealthBuilder Conservative Allocation Portfolio
Year ended May 31, 2016	$	10.82		0.07			(0.20	)		(0.08	)		(0.28	)	$	10.33
Year ended May 31, 2015	$	10.92		0.04			0.15			(0.05	)		(0.24	)	$	10.82
Year ended May 31, 2014	$	10.95		0.03			0.42			(0.05	)		(0.43	)	$	10.92
Year ended May 31, 2013	$	10.57		0.06			0.59			(0.08	)		(0.19	)	$	10.95
Year ended May 31, 2012	$	11.02		0.16			(0.20	)		(0.21	)		(0.20	)	$	10.57
WealthBuilder Moderate Balanced Portfolio
Year ended May 31, 2016	$	12.19		0.05			(0.30	)		(0.07	)		(0.47	)	$	11.40
Year ended May 31, 2015	$	12.21		0.03			0.39			(0.07	)		(0.37	)	$	12.19
Year ended May 31, 2014	$	12.03		0.02			0.91			(0.04	)		(0.71	)	$	12.21
Year ended May 31, 2013	$	10.96		0.04	3		1.21			(0.06	)		(0.12	)	$	12.03
Year ended May 31, 2012	$	11.50		0.13	3		(0.48	)		(0.19	)		(0.00	)4	$	10.96
WealthBuilder Growth Balanced Portfolio
Year ended May 31, 2016	$	14.52		0.03			(0.53	)		(0.06	)		(0.67	)	$	13.29
Year ended May 31, 2015	$	14.42		0.01			0.67			(0.10	)		(0.48	)	$	14.52
Year ended May 31, 2014	$	12.90		0.01			1.55			(0.04	)		0.00		$	14.42
Year ended May 31, 2013	$	10.97		0.01			1.95			(0.03	)		0.00		$	12.90
Year ended May 31, 2012	$	11.82		0.09			(0.82	)		(0.12	)		0.00		$	10.97
WealthBuilder Growth Allocation Portfolio
Year ended May 31, 2016	$	14.92		(0.01	)		(0.71	)		(0.04	)		(0.77	)	$	13.39
Year ended May 31, 2015	$	14.78		(0.02	)		0.89			(0.12	)		(0.61	)	$	14.92
Year ended May 31, 2014	$	13.08		(0.03	)		1.89			(0.00	)4		(0.16	)	$	14.78
Year ended May 31, 2013	$	10.87		(0.01	)		2.23			(0.01	)		0.00		$	13.08
Year ended May 31, 2012	$	11.83		0.05	3		(0.94	)		(0.07	)		0.00		$	10.87
WealthBuilder Equity Portfolio
Year ended May 31, 2016	$	16.02		(0.07	)		(0.80	)		0.00			0.00		$	15.15
Year ended May 31, 2015	$	14.93		(0.07	)		1.16			0.00			0.00		$	16.02
Year ended May 31, 2014	$	12.82		(0.08	)		2.19			0.00			0.00		$	14.93
Year ended May 31, 2013	$	10.34		(0.05	)		2.53			0.00			0.00		$	12.82
Year ended May 31, 2012	$	11.45		(0.04	)		(1.07	)		0.00			0.00		$	10.34
WealthBuilder Tactical Equity Portfolio
Year ended May 31, 2016	$	19.44		(0.08	)		(1.11	)		0.00			0.00		$	18.25
Year ended May 31, 2015	$	18.07		(0.08	)		1.45			0.00			0.00		$	19.44
Year ended May 31, 2014	$	15.61		(0.08	)		2.54			0.00			0.00		$	18.07
Year ended May 31, 2013	$	13.12		(0.07	)		2.58			(0.02	)		0.00		$	15.61
Year ended May 31, 2012	$	13.89		(0.08	)3		(0.69	)		0.00			0.00		$	13.12

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31
	2016			2015			2014			2013			2012
WealthBuilder Conservative Allocation Portfolio		0.11	%		0.11	%		0.09	%		0.10	%		0.10	%
WealthBuilder Moderate Balanced Portfolio		0.11	%		0.11	%		0.10	%		0.12	%		0.11	%
WealthBuilder Growth Balanced Portfolio		0.11	%		0.11	%		0.12	%		0.15	%		0.14	%
WealthBuilder Growth Allocation Portfolio		0.11	%		0.11	%		0.12	%		0.15	%		0.15	%
WealthBuilder Equity Portfolio		0.10	%		0.10	%		0.12	%		0.21	%		0.21	%
WealthBuilder Tactical Equity Portfolio		0.12	%		0.12	%		0.13	%		0.17	%		0.16	%

²  Total return calculations do not include any sales charges.

³  Calculated based upon average shares outstanding

⁴  Amount is less than $0.005.

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

Financial highlights Wells Fargo WealthBuilder Portfolios 51

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income (loss)			Gross expenses1			Net expenses1
	0.68	%		1.51	%		1.50	%		(1.11	)%		198	%	$	523,832
	0.34	%		1.55	%		1.50	%		1.75	%		169	%	$	545,059
	0.32	%		1.55	%		1.50	%		4.19	%		139	%	$	580,937
	0.53	%		1.54	%		1.50	%		6.19	%		128	%	$	659,977
	1.51	%		1.54	%		1.50	%		(0.32	)%		176	%	$	662,092
	0.48	%		1.49	%		1.49	%		(2.02	)%		150	%	$	833,218
	0.21	%		1.55	%		1.50	%		3.44	%		129	%	$	893,175
	0.17	%		1.54	%		1.50	%		7.94	%		110	%	$	867,327
	0.34	%		1.54	%		1.50	%		11.42	%		115	%	$	799,251
	1.20	%		1.54	%		1.50	%		(2.96	)%		145	%	$	709,801
	0.26	%		1.49	%		1.49	%		(3.39	)%		100	%	$	966,932
	0.06	%		1.54	%		1.50	%		4.89	%		89	%	$	1,018,411
	0.04	%		1.54	%		1.50	%		12.07	%		94	%	$	936,593
	0.06	%		1.54	%		1.50	%		17.85	%		117	%	$	788,285
	0.84	%		1.54	%		1.50	%		(6.17	)%		131	%	$	689,816
	(0.06	)%		1.51	%		1.50	%		(4.79	)%		59	%	$	429,628
	(0.20	)%		1.55	%		1.50	%		6.14	%		53	%	$	451,139
	(0.19	)%		1.57	%		1.50	%		14.28	%		60	%	$	402,238
	(0.13	)%		1.57	%		1.50	%		20.39	%		98	%	$	324,723
	0.49	%		1.57	%		1.50	%		(7.47	)%		96	%	$	276,657
	(0.46	)%		1.57	%		1.50	%		(5.43	)%		26	%	$	133,964
	(0.46	)%		1.61	%		1.50	%		7.30	%		24	%	$	148,718
	(0.53	)%		1.61	%		1.50	%		16.46	%		26	%	$	138,137
	(0.38	)%		1.63	%		1.50	%		23.98	%		44	%	$	121,888
	(0.39	)%		1.60	%		1.50	%		(9.69	)%		24	%	$	109,727
	(0.46	)%		1.51	%		1.50	%		(6.12	)%		27	%	$	423,109
	(0.44	)%		1.55	%		1.50	%		7.58	%		27	%	$	452,296
	(0.45	)%		1.56	%		1.50	%		15.76	%		23	%	$	421,949
	(0.49	)%		1.56	%		1.50	%		19.16	%		67	%	$	371,334
	(0.58	)%		1.56	%		1.50	%		(5.54	)%		31	%	$	346,832

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

52 Wells Fargo WealthBuilder Portfolios Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the following funds: Wells Fargo WealthBuilder Conservative Allocation Portfolio (“WealthBuilder Conservative Allocation Portfolio”), Wells Fargo WealthBuilder Moderate Balanced Portfolio (“WealthBuilder Moderate Balanced Portfolio”), Wells Fargo WealthBuilder Growth Balanced Portfolio (“WealthBuilder Growth Balanced Portfolio” ), Wells Fargo WealthBuilder Growth Allocation Portfolio (“WealthBuilder Growth Allocation Portfolio” ), Wells Fargo WealthBuilder Equity Portfolio ("WealthBuilder Equity Portfolio") and Wells Fargo WealthBuilder Tactical Equity Portfolio (“WealthBuilder Tactical Equity Portfolio” ) (each, a “Portfolio”, collectively, the “Portfolios”). Each Portfolio is a diversified series of the Trust.

Each Portfolio is a fund-of-funds that may invest in various affiliated mutual funds, unaffiliated mutual funds and exchange-traded funds (collectively, the “Underlying Funds”) to pursue its investment objective. The Underlying Funds incur separate expenses in seeking to achieve their investment objectives. The investment in affiliated funds may also include investments in one or more separate diversified portfolios (each, an “affiliated Master Portfolio”, collectively, the “affiliated Master Portfolios”) of Wells Fargo Master Trust, a registered open-end management investment company. Each affiliated Master Portfolio directly acquires portfolio securities, and a Portfolio investing in an affiliated Master Portfolio acquires an indirect interest in those securities. Each Portfolio accounts for its investment in the affiliated Master Portfolios as partnership investments and records on a daily basis its share of the affiliated Master Portfolio’s income, expense and realized and unrealized gains and losses. The financial statements and financial highlights for the Underlying Funds are presented in separate financial statements and may be obtained by contacting Investor Services for the Wells Fargo Funds or by contacting the servicing agent of the unaffiliated mutual funds.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each Portfolio, 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), although the Portfolios may deviate from this calculation time under unusual or unexpected circumstances.

Investments in mutual funds are valued at net asset per share as reported by the Underlying Funds as of the close of the regular trading on the New York Stock Exchange on each day the exchange is open for trading. Investments in affiliated Master Portfolios are valued daily based on each Portfolio’s proportionate share of each affiliated Master Portfolio’s net assets, which are also valued daily.

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 principal 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 Portfolio’s Valuation Procedures.

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 Portfolios. 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.

Notes to financial statements Wells Fargo WealthBuilder Portfolios 53

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

Futures contracts

Each Portfolio is subject to interest rate risk, equity price risk and foreign exchange rate risk in the normal course of pursuing its investment objectives. A Portfolio may buy and sell futures contracts in order to effect tactical allocation changes in a Portfolio. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Portfolio 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 Statements of Assets and Liabilities as an asset or liability and in the Statements 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 Portfolio 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.

Income dividends and capital gain distributions from Underlying Funds are recorded on the ex-dividend date. Capital gain distributions from Underlying Funds are treated as realized gains.

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.

Each Portfolio records on a daily basis its proportionate share of each affiliated Master Portfolio’s interest and dividend income, in addition to expenses and realized and unrealized gains and losses.

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

Each Portfolio is treated as a separate entity for federal income tax purposes. Each Portfolio 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.

Each Portfolio’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 each Portfolio’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to each Portfolio’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent

54 Wells Fargo WealthBuilder Portfolios Notes to financial statements

differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At May 31, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statements of Assets and Liabilities:

	Paid-in capital			Undistributed (overdistributed/ accumulated) net investment income (loss)		Accumulated net realized gains (losses) on investments
WealthBuilder Conservative Allocation Portfolio	$	54,967		$	478,182	$	(533,149	)
WealthBuilder Moderate Balanced Portfolio		63,687			1,148,836		(1,212,523	)
WealthBuilder Growth Balanced Portfolio		49,468			1,866,479		(1,915,947	)
WealthBuilder Growth Allocation Portfolio		22,426			1,087,847		(1,110,273	)
WealthBuilder Equity Portfolio		(397,649	)		860,296		(462,647	)
WealthBuilder Tactical Equity Portfolio		(67,684	)		1,293,013		(1,225,329	)

As of May 31, 2016, WealthBuilder Tactical Equity Portfolio had capital loss carryforwards that are available to offset future net realized capital gains in the amount of $21,843,731 expiring in 2018.

At May 31, 2016, late-year ordinary losses which will be recognized on the first day of the following fiscal year were as follows:

	Late-year ordinary losses deferred
WealthBuilder Growth Balanced Portfolio	$	330,925
WealthBuilder Growth Allocation Portfolio		847,057
WealthBuilder Tactical Equity Portfolio		1,751,638

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 each Portfolio’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). Each Portfolio’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 Portfolio’s own assumptions in determining the fair value of investments)

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

Notes to financial statements Wells Fargo WealthBuilder Portfolios 55

The following is a summary of the inputs used in valuing each Portfolio’s assets and liabilities as of May 31, 2016:

WealthBuilder Conservative Allocation Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	8,726,469	$	0	$	0	$	8,726,469
Investment companies		376,151,342		0		0		376,151,342
Short-term investments
Investment companies		1,091,019		0		0		1,091,019
U.S. Treasury securities		282,991		0		0		282,991
Investments measured at net asset value*								139,024,134
		386,251,821		0		0		525,275,955
Futures contracts		37,156		0		0		37,156
Total assets	$	386,288,977	$	0	$	0	$	525,313,111

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $139,024,134. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

WealthBuilder Moderate Balanced Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	12,101,094	$	0	$	0	$	12,101,094
Investment companies		630,032,883		0		0		630,032,883
Short-term investments
Investment companies		1,265,358		0		0		1,265,358
U.S. Treasury securities		911,970		0		0		911,970
Investments measured at net asset value*								188,871,071
		644,311,305		0		0		833,182,376
Futures contracts		120,378		0		0		120,378
Total assets	$	644,431,683	$	0	$	0	$	833,302,754

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $188,871,071. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

WealthBuilder Growth Balanced Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	11,890,089	$	0	$	0	$	11,890,089
Investment companies		764,175,040		0		0		764,175,040
Short-term investments
Investment companies		1,324,716		0		0		1,324,716
U.S. Treasury securities		1,314,957		0		0		1,314,957
Investments measured at net asset value*								188,266,430
		778,704,802		0		0		966,971,232
Futures contracts		205,203		0		0		205,203
Total assets	$	778,910,005	$	0	$	0	$	967,176,435

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $188,266,430. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

56 Wells Fargo WealthBuilder Portfolios Notes to financial statements

WealthBuilder Growth Allocation Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	4,380,099	$	0	$	0	$	4,380,099
Investment companies		357,778,936		0		0		357,778,936
Short-term investments
U.S. Treasury securities		695,977		0		0		695,977
Investments measured at net asset value*								66,377,157
		362,855,012		0		0		429,232,169
Futures contracts		119,366		0		0		119,366
Total assets	$	362,974,378	$	0	$	0	$	429,351,535

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $66,377,157. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

WealthBuilder Equity Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Investment companies	$	119,114,106	$	0	$	0	$	119,114,106
Short-term investments
Investment companies		155,252		0		0		155,252
Investments measured at net asset value*								14,693,881
Total assets	$	119,269,358	$	0	$	0	$	133,963,239

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $14,693,881. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

WealthBuilder Tactical Equity Portfolio	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	4,130,212	$	0	$	0	$	4,130,212
Investment companies		360,119,337		0		0		360,119,337
Short-term investments
Investment companies		1,212,049		0		0		1,212,049
U.S. Treasury securities		571,972		0		0		571,972
Investments measured at net asset value*								56,911,848
		366,033,570		0		0		422,945,418
Futures contracts		143,213		0		0		143,213
Total assets	$	366,176,783	$	0	$	0	$	423,088,631

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $56,911,848. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo WealthBuilder Portfolios 57

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

The Portfolios recognize transfers between levels within the fair value hierarchy at the end of the reporting period. At May 31, 2016, the Portfolios did not have any transfers into/out of Level 1, Level 2, or Level 3.

The investment objective of each affiliated Master Portfolio is as follows:

Affiliated Master Portfolio	Investment objective
Wells Fargo Core Bond Portfolio	Seeks total return, consisting of income and capital appreciation
Wells Fargo Emerging Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo International Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Small Company Value Portfolio	Seeks long-term capital appreciation

4. TRANSACTIONS WITH AFFILIATES

Management fee

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

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.20% and declined to 0.15% as the average daily net assets of each Portfolio increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of each Portfolio increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended May 31, 2016 have been included in management fee on the Statements of Operations.

For the year ended May 31, 2016, the management fee was equivalent to an annual rate of 0.25% of each Portfolio’s average daily net assets.

Funds Management also serves as the adviser to and is entitled to receive a fee from each affiliated Master Portfolio and affiliated Underlying Fund for those services.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Portfolios. 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 each Portfolio and is paid an annual subadvisory fee of 0.15% of the daily net assets of each Portfolio.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to each Portfolio, 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 a fee at an annual rate of 0.21% of the average daily net assets of each Portfolio. Prior to July 1, 2015, the class-level administration fee was 0.26% of the average daily net assets of each Portfolio.

For the year ended May 31, 2016, the administration fee was equivalent to an annual rate of 0.21% of each Portfolio’s average daily net assets.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Portfolios. Funds Management has committed through September 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap each Portfolio’s expenses at 1.50%. Acquired fund fees and expenses and net expenses from underlying affiliated Master Portfolios are excluded from the expense caps. 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.

58 Wells Fargo WealthBuilder Portfolios Notes to financial statements

Distribution fee

The Trust has adopted a Distribution Plan for each Portfolio pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter of each Portfolio, at an annual rate of 0.75% of each Portfolio’s average daily net assets.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Portfolio shares. For the year ended May 31, 2016, Funds Distributor received the following amounts in front-end sales charges:

	Front-end sales charges
WealthBuilder Conservative Allocation Portfolio	$	15,956
WealthBuilder Moderate Balanced Portfolio		22,240
WealthBuilder Growth Balanced Portfolio		21,421
WealthBuilder Growth Allocation Portfolio		10,500
WealthBuilder Equity Portfolio		1,685
WealthBuilder Tactical Equity Portfolio		5,968

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby each Portfolio is charged a fee at an annual rate of 0.25% of its average daily net assets.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended May 31, 2016 were as follows:

	Purchases at cost*				Sales proceeds*
	U.S. government		Non-U.S. government		U.S. government		Non-U.S. government
WealthBuilder Conservative Allocation Portfolio	$	700,211,064	$	379,857,145	$	689,057,904	$	356,594,614
WealthBuilder Moderate Balanced Portfolio		804,113,593		513,095,745		791,305,444		485,684,904
WealthBuilder Growth Balanced Portfolio		611,850,519		438,934,940		602,104,791		379,887,639
WealthBuilder Growth Allocation Portfolio		111,512,576		174,673,643		109,736,372		143,314,184
WealthBuilder Equity Portfolio		0		39,175,859		0		36,432,032
WealthBuilder Tactical Equity Portfolio		0		139,717,203		0		115,860,875

* The Portfolios seek to achieve their investment objective by investing some of their investable assets in affiliated Master Portfolios. Purchases and sales related to these investments have been calculated by aggregating the results of multiplying such Portfolio’s ownership percentage of the respective affiliated Master Portfolio by the corresponding affiliated Master Portfolio’s purchases and sales. Purchases and sales of the affiliated and unaffiliated Underlying Funds in which the Portfolios invest are actual aggregate purchases and sales of those investments.

6. INVESTMENTS IN AFFILIATES

An affiliated investment is a company which is under common ownership or control of the Portfolio or which the Portfolio has ownership of at least 5% of the outstanding voting shares. The following is a summary of transactions for the long-term holdings of issuers that were affiliates of each Portfolio at the end of the period.

Notes to financial statements Wells Fargo WealthBuilder Portfolios 59

	Shares, beginning of period		Shares purchases		Shares sold		Shares, end of period		Value, end of period		Dividends from affiliated Underlying Funds		Capital gain distributions from affiliated Underlying Funds
WealthBuilder Conservative Allocation Portfolio
Wells Fargo Emerging Markets Equity Fund Class R6		0		164,339		24,458		139,881	$	2,622,762	$	33,041	$	0
Wells Fargo Emerging Markets Equity Fund Institutional Class		124,192		2,809		127,001		0		0		0		0
Wells Fargo Endeavor Select Fund Institutional Class		383,422		253,287		65,605		571,104		5,305,551		0		1,685,127
Wells Fargo Government Securities Fund Institutional Class		8,120,190		439,277		2,083,633		6,475,834		73,500,715		951,276		380,907
Wells Fargo Large Cap Growth Fund Class R6		0		129,446		12,686		116,760		5,305,562		24,122		265,589
Wells Fargo Large Cap Growth Fund Institutional Class		109,534		460		109,994		0		0		0		0
Wells Fargo Short Duration Government Bond Fund Class R6		0		10,522,450		918,401		9,604,049		95,944,445		1,595,977		0
Wells Fargo Short Duration Government Bond Fund Institutional Class		10,057,069		27,125		10,084,194		0		0		153,142		0
Wells Fargo Small Cap Value Fund Class R6		0		228,169		33,887		194,282		4,015,817		0		1,068,620
Wells Fargo Small Cap Value Fund Institutional Class		142,460		2,624		145,084		0		0		0		0
									$	186,694,852	$	2,757,558	$	3,400,243
WealthBuilder Moderate Balanced Portfolio
Wells Fargo Emerging Markets Equity Fund Class R6		0		488,142		48,324		439,818	$	8,246,588	$	107,202	$	0
Wells Fargo Emerging Markets Equity Fund Institutional Class		405,178		10,572		415,750		0		0		0		0
Wells Fargo Endeavor Select Fund Institutional Class		1,261,792		651,547		87,589		1,825,750		16,961,217		0		5,595,995
Wells Fargo Government Securities Fund Institutional Class		9,734,764		735,438		2,842,071		7,628,131		86,579,284		1,166,094		473,506
Wells Fargo Large Cap Growth Fund Class R6		0		390,625		19,210		371,415		16,877,116		80,044		881,309
Wells Fargo Large Cap Growth Fund Institutional Class		359,376		559		359,935		0		0		0		0
Wells Fargo Short Duration Government Bond Fund Class R6		0		10,152,057		1,372,643		8,779,414		87,706,343		1,494,374		0
Wells Fargo Short Duration Government Bond Fund Institutional Class		10,077,017		93,318		10,170,335		0		0		151,237		0
Wells Fargo Small Cap Value Fund Class R6		0		695,926		76,161		619,765		12,810,541		0		3,561,324
Wells Fargo Small Cap Value Fund Institutional Class		466,718		4,350		471,068		0		0		0		0
									$	229,181,089	$	2,998,951	$	10,512,134
WealthBuilder Growth Balanced Portfolio
Wells Fargo Emerging Markets Equity Fund Class R6		0		839,026		68,286		770,740	$	14,451,367	$	187,642	$	0
Wells Fargo Emerging Markets Equity Fund Institutional Class		690,996		22,616		713,612		0		0		0		0
Wells Fargo Endeavor Select Fund Institutional Class		2,144,141		1,099,195		83,244		3,160,092		29,357,259		0		9,803,698
Wells Fargo Government Securities Fund Institutional Class		10,020,967		1,077,001		3,513,496		7,584,472		86,083,752		1,176,214		482,951
Wells Fargo Large Cap Growth Fund Class R6		0		660,680		15,721		644,959		29,306,936		140,373		1,545,548
Wells Fargo Large Cap Growth Fund Institutional Class		612,153		4,533		616,686		0		0		0		0
Wells Fargo Small Cap Value Fund Class R6		0		1,207,814		124,197		1,083,617		22,398,371		0		6,242,190
Wells Fargo Small Cap Value Fund Institutional Class		791,335		8,732		800,067		0		0		0		0
									$	181,597,685	$	1,504,229	$	18,074,387

60 Wells Fargo WealthBuilder Portfolios Notes to financial statements

	Shares, beginning of period		Shares purchases		Shares sold		Shares, end of period		Value, end of period		Dividends from affiliated Underlying Funds		Capital gain distributions from affiliated Underlying Funds
WealthBuilder Growth Allocation Portfolio
Wells Fargo Emerging Markets Equity Fund Class R6		0		491,689		41,097		450,592	$	8,448,600	$	111,978	$	0
Wells Fargo Emerging Markets Equity Fund Institutional Class		411,518		7,708		419,226		0		0		0		0
Wells Fargo Endeavor Select Fund Institutional Class		1,269,337		679,615		86,771		1,862,181		17,299,658		0		5,782,289
Wells Fargo Government Securities Fund Institutional Class		1,743,801		527,068		1,241,586		1,029,283		11,682,358		187,979		81,134
Wells Fargo Large Cap Growth Fund Class R6		0		387,475		8,321		379,154		17,228,754		83,074		913,895
Wells Fargo Large Cap Growth Fund Institutional Class		363,446		692		364,138		0		0		0		0
Wells Fargo Small Cap Value Fund Class R6		0		723,225		88,678		634,547		13,116,082		0		3,716,857
Wells Fargo Small Cap Value Fund Institutional Class		474,722		0		474,722		0		0		0		0
									$	67,775,452	$	383,031	$	10,494,175
WealthBuilder Equity Portfolio
Wells Fargo Emerging Markets Equity Fund Class R6		0		203,957		28,925		175,032	$	3,281,845	$	44,426	$	0
Wells Fargo Emerging Markets Equity Fund Institutional Class		172,208		2,819		175,027		0		0		0		0
Wells Fargo Endeavor Select Fund Institutional Class		633,517		313,194		81,089		865,622		8,041,633		0		2,757,903
Wells Fargo Large Cap Growth Fund Class R6		0		194,011		17,097		176,914		8,038,992		39,451		435,280
Wells Fargo Large Cap Growth Fund Institutional Class		181,327		427		181,754		0		0		0		0
Wells Fargo Small Cap Value Fund Class R6		0		195,509		31,099		164,410		3,398,353		0		973,563
Wells Fargo Small Cap Value Fund Institutional Class		131,197		19		131,216		0		0		0		0
									$	22,760,823	$	83,877	$	4,166,746
WealthBuilder Tactical Equity Portfolio
Wells Fargo Emerging Markets Equity Fund Class R6		0		626,807		73,156		553,651	$	10,380,950	$	138,530	$	0
Wells Fargo Emerging Markets Equity Fund Institutional Class		521,226		12,149		533,375		0		0		0		0
Wells Fargo Endeavor Select Fund Institutional Class		1,596,060		837,708		173,369		2,260,399		20,999,107		0		7,093,144
Wells Fargo Large Cap Growth Fund Class R6		0		492,426		28,137		464,289		21,097,281		101,557		1,118,438
Wells Fargo Large Cap Growth Fund Institutional Class		456,474		3,827		460,301		0		0		0		0
Wells Fargo Small Cap Value Fund Class R6		0		904,121		130,946		773,175		15,981,519		0		4,491,978
Wells Fargo Small Cap Value Fund Institutional Class		597,307		2,617		599,924		0		0		0		0
									$	68,458,857	$	240,087	$	12,703,560

In addition, each Portfolio’s ownership of affiliated Master Portfolios was as follows:

	% of ownership, beginning of period			% of ownership, end of period			Value, end of period
WealthBuilder Conservative Allocation Portfolio
Wells Fargo Core Bond Portfolio		4	%		3	%	$	124,676,465
Wells Fargo Emerging Growth Portfolio		0	*		0	*		4,016,944
Wells Fargo International Growth Portfolio		4			4			6,315,708
Wells Fargo Small Company Value Portfolio		2			2			4,015,017
							$	139,024,134

Notes to financial statements Wells Fargo WealthBuilder Portfolios 61

	% of ownership, beginning of period			% of ownership, end of period			Value, end of period
WealthBuilder Moderate Balanced Portfolio
Wells Fargo Core Bond Portfolio		4	%		3	%	$	143,176,887
Wells Fargo Emerging Growth Portfolio		1			1			12,882,232
Wells Fargo International Growth Portfolio		13			13			19,977,315
Wells Fargo Small Company Value Portfolio		6			6			12,834,637
							$	188,871,071
WealthBuilder Growth Balanced Portfolio
Wells Fargo Core Bond Portfolio		3			3			108,943,380
Wells Fargo Emerging Growth Portfolio		2			2			22,368,837
Wells Fargo International Growth Portfolio		23			23			34,619,242
Wells Fargo Small Company Value Portfolio		11			10			22,334,971
							$	188,266,430
WealthBuilder Growth Allocation Portfolio
Wells Fargo Core Bond Portfolio		1			0	*		19,855,433
Wells Fargo Emerging Growth Portfolio		1			1			12,994,194
Wells Fargo International Growth Portfolio		14			14			20,388,098
Wells Fargo Small Company Value Portfolio		6			6			13,139,432
							$	66,377,157
WealthBuilder Equity Portfolio
Wells Fargo Emerging Growth Portfolio		0	*		0	*		3,397,239
Wells Fargo International Growth Portfolio		6			5			7,906,391
Wells Fargo Small Company Value Portfolio		2			2			3,390,251
							$	14,693,881
WealthBuilder Tactical Equity Portfolio
Wells Fargo Emerging Growth Portfolio		1			2			16,004,365
Wells Fargo International Growth Portfolio		17			17			24,932,164
Wells Fargo Small Company Value Portfolio		8			7			15,975,319
							$	56,911,848

* The amount invested is less than 1%.

7. DERIVATIVE TRANSACTIONS

During the year ended May 31, 2016, the Portfolios entered into futures contracts to gain market exposure to certain asset classes consistent with an active asset allocation strategy.

At May 31, 2016, the Portfolios had short futures contracts outstanding as follows:

	Expiration date	Counterparty	Contracts	Type	Contract value at May 31, 2016		Unrealized losses
WealthBuilder Conservative Allocation Portfolio	6-13-2016	Goldman Sachs	50 Short	Japanese Yen Futures	$	5,652,813	$	(87,126	)
	9-21-2016	Goldman Sachs	98 Short	10-Year U.S. Treasury Notes		12,709,375		(30,905	)
WealthBuilder Moderate Balanced Portfolio	6-13-2016	Goldman Sachs	162 Short	Japanese Yen Futures		18,315,113		(282,287	)
	9-21-2016	Goldman Sachs	317 Short	10-Year U.S. Treasury Notes		41,110,938		(99,969	)
WealthBuilder Growth Balanced Portfolio	6-13-2016	Goldman Sachs	280 Short	Japanese Yen Futures		31,655,750		(487,903	)
	9-21-2016	Goldman Sachs	365 Short	10-Year U.S. Treasury Notes		47,335,938		(115,106	)
WealthBuilder Growth Allocation Portfolio	6-13-2016	Goldman Sachs	164 Short	Japanese Yen Futures		18,541,225		(285,772	)
	9-21-2016	Goldman Sachs	161 Short	10-Year U.S. Treasury Notes		20,879,688		(50,773	)
WealthBuilder Tactical Equity Portfolio	6-13-2016	Goldman Sachs	201 Short	Japanese Yen Futures		22,724,306		(350,245	)

62 Wells Fargo WealthBuilder Portfolios Notes to financial statements

The Portfolios had average notional amounts in futures contracts outstanding during the year ended May 31, 2016 as follows:

	Long contracts		Short contracts
WealthBuilder Conservative Allocation Portfolio	$	4,251,249	$	16,368,021
WealthBuilder Moderate Balanced Portfolio		13,671,969		53,152,203
WealthBuilder Growth Balanced Portfolio		15,784,880		76,809,163
WealthBuilder Growth Allocation Portfolio		6,936,468		40,837,421
WealthBuilder Tactical Equity Portfolio		0		33,976,664

A summary of derivative instruments by primary risk exposure is outlined in the following tables, unless the only primary risk exposure category is already reflected in the appropriate financial statements.

The fair value of derivative instruments as of May 31, 2016 was as follows for WealthBuilder Conservative Allocation Portfolio:

	Asset derivatives				Liability derivatives
	Statements of Assets and Liabilities location	Fair value			Statements of Assets and Liabilities location	Fair value
Interest rate contracts	Receivable for daily variation margin on open futures contracts	$	1,531	*	Payable for daily variation margin on open futures contracts	$	0
Foreign exchange contracts	Receivable for daily variation margin on open futures contracts		35,625	*	Payable for daily variation margin on open futures contracts		0
		$	37,156			$	0

* Only the current day’s variation margin as of May 31, 2016 is reported separately on the Statements of Assets and Liabilities.

The effect of derivative instruments on the Statements of Operations for the year ended May 31, 2016 was as follows for WealthBuilder Conservative Allocation Portfolio:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains (losses) on derivatives
Interest rate contracts	$	92,007		$	10,107
Equity contracts		1,568,115			56,731
Foreign exchange contracts		(505,704	)		(168,102	)
	$	1,154,418		$	(101,264	)

The fair value of derivative instruments as of May 31, 2016 was as follows for WealthBuilder Moderate Balanced Portfolio:

	Asset derivatives				Liability derivatives
	Statements of Assets and Liabilities location	Fair value			Statements of Assets and Liabilities location	Fair value
Interest rate contracts	Receivable for daily variation margin on open futures contracts	$	4,953	*	Payable for daily variation margin on open futures contracts	$	0
Foreign exchange contracts	Receivable for daily variation margin on open futures contracts		115,425	*	Payable for daily variation margin on open futures contracts		0
		$	120,378			$	0

* Only the current day’s variation margin as of May 31, 2016 is reported separately on the Statements of Assets and Liabilities.

Notes to financial statements Wells Fargo WealthBuilder Portfolios 63

The effect of derivative instruments on the Statements of Operations for the year ended May 31, 2016 was as follows for WealthBuilder Moderate Balanced Portfolio:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains (losses) on derivatives
Interest rate contracts	$	275,983		$	33,321
Equity contracts		5,426,610			186,217
Foreign exchange contracts		(1,686,316	)		(549,527	)
	$	4,016,277		$	(329,989	)

The fair value of derivative instruments as of May 31, 2016 was as follows for WealthBuilder Growth Balanced Portfolio:

	Asset derivatives				Liability derivatives
	Statements of Assets and Liabilities location	Fair value			Statements of Assets and Liabilities location	Fair value
Interest rate contracts	Receivable for daily variation margin on open futures contracts	$	5,703	*	Payable for daily variation margin on open futures contracts	$	0
Foreign exchange contracts	Receivable for daily variation margin on open futures contracts		199,500	*	Payable for daily variation margin on open futures contracts		0
		$	205,203			$	0

* Only the current day’s variation margin as of May 31, 2016 is reported separately on the Statements of Assets and Liabilities.

The effect of derivative instruments on the Statements of Operations for the year ended May 31, 2016 was as follows for WealthBuilder Growth Balanced Portfolio:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains (losses) on derivatives
Interest rate contracts	$	312,750		$	35,894
Equity contracts		5,679,240			217,190
Foreign exchange contracts		(2,453,629	)		(982,375	)
	$	3,538,361		$	(729,291	)

The fair value of derivative instruments as of May 31, 2016 was as follows for WealthBuilder Growth Allocation Portfolio:

	Asset derivatives				Liability derivatives
	Statements of Assets and Liabilities location	Fair value			Statements of Assets and Liabilities location	Fair value
Interest rate contracts	Receivable for daily variation margin on open futures contracts	$	2,516	*	Receivable for daily variation margin on open futures contracts	$	0
Foreign exchange contracts	Receivable for daily variation margin on open futures contracts		116,850	*	Payable for daily variation margin on open futures contracts		0
		$	119,366			$	0

* Only the current day’s variation margin as of May 31, 2016 is reported separately on the Statements of Assets and Liabilities.

64 Wells Fargo WealthBuilder Portfolios Notes to financial statements

The effect of derivative instruments on the Statements of Operations for the year ended May 31, 2016 was as follows for WealthBuilder Growth Allocation Portfolio:

	Amount of realized gains (losses) on derivatives			Change in unrealized gains (losses) on derivatives
Interest rate contracts	$	146,158		$	16,338
Equity contracts		2,457,614			95,352
Foreign exchange contracts		(1,291,943	)		(615,963	)
	$	1,311,829		$	(504,273	)

For WealthBuilder Tactical Equity Portfolio, the receivable for daily variation margin on open futures contracts reflected in the Statements of Assets and Liabilities only represents the current day’s variation margin. The realized gains (losses) and change in unrealized gain/losses on futures contracts are reflected in the Statements of Operations.

For certain types of derivative transactions, the Portfolios have 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 Portfolios 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 Portfolios under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statements 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 Statements of Assets and Liabilities are not offset across transactions between each Portfolio and the applicable counterparty. A reconciliation of the gross amounts on the Statements 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 Statements of Assets and Liabilities		Amounts subject to netting agreements		Collateral received		Net amount of assets
WealthBuilder Conservative Allocation Portfolio	Futures – variation margin	Goldman Sachs	$	37,156		$0		$0		$37,156
WealthBuilder Moderate Balanced Portfolio	Futures – variation margin	Goldman Sachs		120,378		0		0		120,378
WealthBuilder Growth Balanced Portfolio	Futures – variation margin	Goldman Sachs		205,203		0		0		205,203
WealthBuilder Growth Allocation Portfolio	Futures – variation margin	Goldman Sachs		119,366		0		0		119,366
WealthBuilder Tactical Equity Portfolio	Futures – variation margin	Goldman Sachs		143,213		0		0		143,213

8. 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 each Portfolio 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 each Portfolio 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 Portfolio. 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 Portfolio.

For the year ended May 31, 2016, there were no borrowings under the agreement by any Portfolio, except WealthBuilder Moderate Balanced Portfolio. During the year ended May 31, 2016, the WealthBuilder Moderate Balanced Portfolio had average borrowings outstanding of $13,901 at an average rate of 1.41% and paid interest in the amount of $196.

Notes to financial statements Wells Fargo WealthBuilder Portfolios 65

9. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended May 31, 2016 and May 31, 2015 were as follows:

	Ordinary income				Long-term capital gain
	2016		2015		2016		2015
WealthBuilder Conservative Allocation Portfolio	$	6,539,989	$	6,136,988	$	11,561,354	$	8,353,067
WealthBuilder Moderate Balanced Portfolio		9,901,937		8,323,885		28,876,659		22,290,686
WealthBuilder Growth Balanced Portfolio		7,325,526		7,084,736		44,986,175		31,685,911
WealthBuilder Growth Allocation Portfolio		1,351,047		3,617,950		24,150,116		17,215,777

As of May 31, 2016, the components of distributable earnings on a tax basis were as follows:

	Undistributed ordinary income		Undistributed long-term gain		Unrealized gains			Late-year ordinary losses deferred			Capital loss carryforward
WealthBuilder Conservative Allocation Portfolio	$	441,955	$	7,802,871	$	4,131,706		$	0		$	0
WealthBuilder Moderate Balanced Portfolio		389,008		23,108,613		12,639,600			0			0
WealthBuilder Growth Balanced Portfolio		0		35,479,119		22,579,101			(330,925	)		0
WealthBuilder Growth Allocation Portfolio		0		18,928,451		11,687,115			(847,057	)		0
WealthBuilder Equity Portfolio		0		2,970,748		17,122,290	��		0			0
WealthBuilder Tactical Equity Portfolio		0		0		30,927,286			(1,751,638	)		(21,843,731	)

10. 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 Portfolios and, therefore, cannot be estimated.

11. SUBSEQUENT DISTRIBUTIONS

On June 24, 2016, the Portfolios declared distributions from net investment income to shareholders of record on June 23, 2016. The per share amounts payable on June 27, 2016 were as follows:

	Net investment income
WealthBuilder Conservative Allocation Portfolio	$	0.00471
WealthBuilder Moderate Balanced Portfolio	$	0.00862

On July 20, 2016, WealthBuilder Equity Portfolio declared distributions from net investment income and long-term capital gains to shareholders of record on July 19, 2016. The per share amounts payable on July 21, 2016 were as follows:

Net investment income	Long-term capital gains
$0.00386	$0.34829

On July 25, 2016, WealthBuilder Conservative Allocation Portfolio declared distributions from net investment income in the amount of $0.00663 per share to shareholders of record on July 22, 2016. This amount was paid to shareholders on July 26, 2016.

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

12. SUBSEQUENT EVENTS

After the close of business on July 22, 2016, WealthBuilder Tactical Equity Portfolio acquired the net assets of WealthBuilder Equity Portfolio in a tax-free exchange for shares of WealthBuilder Tactical Equity Portfolio. Shareholders of Wells Fargo WealthBuilder Equity Portfolio received corresponding shares of WealthBuilder Tactical Equity Portfolio. In addition, WealthBuilder Tactical Equity Portfolio changed its name to Wells Fargo WealthBuilder Equity Portfolio.

66 Wells Fargo WealthBuilder Portfolios Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wells Fargo WealthBuilder Conservative Allocation Portfolio, Wells Fargo WealthBuilder Moderate Balanced Portfolio, Wells Fargo WealthBuilder Growth Balanced Portfolio, Wells Fargo WealthBuilder Growth Allocation Portfolio, Wells Fargo WealthBuilder Equity Portfolio, and Wells Fargo WealthBuilder Tactical Equity Portfolio (formerly known as Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio, Wells Fargo Advantage WealthBuilder Equity Portfolio, and Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio, respectively) (the “Funds”), six of the funds constituting the Wells Fargo Funds Trust, as of May 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2016, by correspondence with the transfer agents and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned Funds of the Wells Fargo Funds Trust as of May 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

Other information (unaudited) Wells Fargo WealthBuilder Portfolios 67

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, the percentage of ordinary income dividends qualifying for the corporate dividends-received deduction was as follows for the fiscal year ended May 31, 2016:

	Dividends-received deduction
WealthBuilder Growth Allocation Portfolio		11.76	%

Pursuant to Section 852 of the Internal Revenue Code, the following amounts were designated as long-term capital gain distributions for the fiscal year ended May 31, 2016:

	Long-term capital gain distributions
WealthBuilder Conservative Allocation Portfolio	$	11,561,354
WealthBuilder Moderate Balanced Portfolio		28,876,659
WealthBuilder Growth Balanced Portfolio		44,986,175
WealthBuilder Growth Allocation Portfolio		24,150,116

Pursuant to Section 854 of the Internal Revenue Code, the following amounts of income dividends paid during the fiscal year ended May 31, 2016 have been designated as qualified dividend income (QDI):

	QDI
WealthBuilder Moderate Balanced Portfolio	$	750,045
WealthBuilder Growth Balanced Portfolio		1,164,565
WealthBuilder Growth Allocation Portfolio		560,670

For the fiscal year ended May 31, 2016, the following amounts have been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Interest-related dividends
WealthBuilder Conservative Allocation Portfolio	$	909,357
WealthBuilder Moderate Balanced Portfolio		804,545
WealthBuilder Growth Balanced Portfolio		516,087
WealthBuilder Growth Allocation Portfolio		66,336

For the fiscal year ended May 31, 2016, the following amounts have been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Short-term capital gain dividends
WealthBuilder Conservative Allocation Portfolio	$	2,469,716
WealthBuilder Moderate Balanced Portfolio		4,835,534
WealthBuilder Growth Balanced Portfolio		2,568,962

68 Wells Fargo WealthBuilder Portfolios Other information (unaudited)

For the fiscal year ended May 31, 2016, the percentage of ordinary income distributed which was derived from interest on U.S. government securities was as follows:

	% of U.S. government income
WealthBuilder Conservative Allocation Portfolio		2.76	%
WealthBuilder Moderate Balanced Portfolio		1.77	%
WealthBuilder Growth Balanced Portfolio		1.57	%
WealthBuilder Growth Allocation Portfolio		1.08	%

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings are publicly available on the website (wellsfargofunds.com) on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) is publicly available on the website on a monthly, seven-day or more delayed basis. Each Portfolio 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, each 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 WealthBuilder Portfolios 69

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 142 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

70 Wells Fargo WealthBuilder Portfolios 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
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
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

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

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years 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	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.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016*	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
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 69 funds and Assistant Treasurer of 73 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

* Michael Whitaker became Chief Compliance Officer effective May 16, 2016.

Other information (unaudited) Wells Fargo WealthBuilder Portfolios 71

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo WealthBuilder Conservative Allocation Portfolio, Wells Fargo WealthBuilder Equity Portfolio, Wells Fargo WealthBuilder Growth Allocation Portfolio, Wells Fargo WealthBuilder Growth Balanced Portfolio, Wells Fargo WealthBuilder Moderate Balanced Portfolio and Wells Fargo WealthBuilder Tactical Equity Portfolio

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 24-25, 2016 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Wells Fargo WealthBuilder Conservative Allocation Portfolio, Wells Fargo WealthBuilder Equity Portfolio, Wells Fargo WealthBuilder Growth Allocation Portfolio, Wells Fargo WealthBuilder Growth Balanced Portfolio, Wells Fargo WealthBuilder Moderate Balanced Portfolio and Wells Fargo WealthBuilder Tactical Equity Portfolio (collectively, the “Funds”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2016, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2016. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board noted that at its February 2016 meeting, the Board approved the merger of the WealthBuilder Equity Portfolio into the WealthBuilder Tactical Equity Portfolio, pending shareholder approval. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Funds by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Funds.

At the Meeting, the Board also received and considered a presentation that the Trustees had requested from Funds Management, which reviewed, among other things, the Funds and their investment strategies, the Funds’ tactical asset allocation process, a volatility analysis, an assessment of performacne and the process of evaluating and selecting unaffiliated underlying mutual funds.

72 Wells Fargo WealthBuilder Portfolios Other information (unaudited)

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

Fund performance and expenses

The Board considered the performance results for the Funds over various time periods ended December 31, 2015. The Board considered each Fund’s performance results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to each Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe.

The Board noted that the performance of each Fund relative to its respective Universe was as follows: (i) the performance of the WealthBuilder Conservative Allocation Portfolio was lower than the average performance of its Universe for all periods under review except the one-year period; (ii) the performance of the WealthBuilder Equity Portfolio was higher than the average performance of its Universe for all periods under review except the ten-year period; (iii) the performance of the WealthBuilder Growth Allocation Portfolio was higher than the average performance of its Universe for all periods under review except the five- and ten-year periods; (iv) the performance of the WealthBuilder Growth Balanced Portfolio was lower than the average performance of its Universe for all periods under review except the one-year period; (v) the performance of the WealthBuilder Moderate Balanced Portfolio was lower than the average performance of its Universe for all periods under review except the one-year period; and (vi) the performance of the WealthBuilder Tactical Equity Portfolio was lower than the average performance of its Universe for all periods under review.

The Board also noted that the performance of each Fund relative to its respective benchmark was as follows: (i) the performance of the WealthBuilder Conservative Allocation Portfolio was lower than the performance of its benchmark, the WealthBuilder Conservative Allocation Composite Index, which is a proprietary index used by the Board to help it assess the Fund’s relative performance, for all periods under review; (ii) the performance of the WealthBuilder Equity Portfolio was lower than the performance of its benchmark, the WealthBuilder Equity Composite Index, which is a proprietary index used by the Board to help it assess the Fund’s relative performance, for all periods under review except the one-year period; (iii) the performance of the WealthBuilder Growth Allocation Portfolio was lower than the performance of its benchmark, the WealthBuilder Growth Allocation Composite Index, which is a proprietary index used by the Board to help it assess the Fund’s relative performance, for all periods under review; (iv) the performance of the WealthBuilder Growth Balanced Portfolio was lower than the performance of its benchmark, the WealthBuilder Growth Balanced Composite Index, which is a proprietary index used by the Board to help it assess the Fund’s relative performance, for all periods under review except the three-year period; (v) the performance of the WealthBuilder Moderate Balanced Portfolio was lower than the performance of its benchmark, the WealthBuilder Moderate Balanced Composite Index, which is a proprietary index used by the Board to help it assess the Fund’s relative performance, for all periods under review; and (vi) the performance of the WealthBuilder Tactical Equity Portfolio was lower than the performance of its benchmark, the WealthBuilder Tactical Equity Composite Index, which is a proprietary index used by the Board to help it assess the Fund’s relative performance, for all periods under review except the one-year period.

The Board received information concerning, and discussed factors contributing to, the relative underperformance of certain Funds for certain periods as noted above. The Board took note of the explanations for the relative underperformance in these periods, including with respect to the market conditions and investment decisions that affected the relevant Funds’ performance, and of recent improved relative performance. The Board noted that a new portfolio management team assumed investment management responsibilities for the Funds in 2013.

The Board also received and considered information regarding each Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios for each Fund in comparison to the median ratios of funds in expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year.

Based on the Broadridge reports, the Board noted that: (i) the net operating expense ratio of the WealthBuilder Conservative Allocation Portfolio, including underlying mutual fund expenses, was in range of the median net operating expense ratio of its expense Group; (ii) the net operating expense ratio of the WealthBuilder Equity Portfolio, including

Other information (unaudited) Wells Fargo WealthBuilder Portfolios 73

underlying mutual fund expenses, was higher than the median net operating expense ratio of its expense Group; (iii) the net operating expense ratio of the WealthBuilder Growth Allocation Portfolio, including underlying mutual fund expenses, was higher than the median net operating expense ratio of its expense Group; (iv) the net operating expense ratio of the WealthBuilder Growth Balanced Portfolio, including underlying mutual fund expenses, was in range of the median net operating expense ratio of its expense Group; (v) the net operating expense ratio of the WealthBuilder Moderate Balanced Portfolio, including underlying mutual fund expenses, was higher than the median net operating expense ratio of its expense Group; and (vi) the net operating expense ratio of the WealthBuilder Tactical Equity Portfolio, including underlying mutual fund expenses, was higher than the median net operating expense ratio of its expense Group. The Board noted that the Funds invest in both affiliated and unaffiliated underlying mutual funds, while most of the funds included in each expense Group, and all of the funds identified by Funds Management as being in a competitor sub-group, invest only in affiliated funds. The Board also considered that the Funds are designed to offer exposure to a wide range of investment styles, including alternatives, while maintaining a low investment minimum.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Funds to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Funds to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Funds’ Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rate for each Fund was higher than the average rate for the Fund’s expense Group. The Board also noted that the Funds are among the few funds-of-funds utilizing both affiliated and unaffiliated underlying funds, and received information from Funds Management about the process and resources required to evaluate and select unaffiliated underlying mutual funds.

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

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

Profitability

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

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Funds’ management fee structure, which operate generally to reduce the Funds’ expense ratios as the Funds grow in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered

74 Wells Fargo WealthBuilder Portfolios Other information (unaudited)

that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Funds and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo WealthBuilder Portfolios 75

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 Portfolios’ 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 Portfolios. 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 Portfolios’ 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

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

243139 07-16 AWBP/AR102 05-16

Annual Report

May 31, 2016

Dynamic Target Date Funds

n Wells Fargo Dynamic Target Today Fund

n Wells Fargo Dynamic Target 2015 Fund

n Wells Fargo Dynamic Target 2020 Fund

n Wells Fargo Dynamic Target 2025 Fund

n Wells Fargo Dynamic Target 2030 Fund

n Wells Fargo Dynamic Target 2035 Fund

n Wells Fargo Dynamic Target 2040 Fund

n Wells Fargo Dynamic Target 2045 Fund

n Wells Fargo Dynamic Target 2050 Fund

n Wells Fargo Dynamic Target 2055 Fund

n Wells Fargo Dynamic Target 2060 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
Wells Fargo Dynamic Target Today Fund	5
Wells Fargo Dynamic Target 2015 Fund	6
Wells Fargo Dynamic Target 2020 Fund	7
Wells Fargo Dynamic Target 2025 Fund	8
Wells Fargo Dynamic Target 2030 Fund	9
Wells Fargo Dynamic Target 2035 Fund	10
Wells Fargo Dynamic Target 2040 Fund	11
Wells Fargo Dynamic Target 2045 Fund	12
Wells Fargo Dynamic Target 2050 Fund	13
Wells Fargo Dynamic Target 2055 Fund	14
Wells Fargo Dynamic Target 2060 Fund	15
Fund expenses	21
Portfolios of investments
Wells Fargo Dynamic Target Today Fund	26
Wells Fargo Dynamic Target 2015 Fund	28
Wells Fargo Dynamic Target 2020 Fund	30
Wells Fargo Dynamic Target 2025 Fund	32
Wells Fargo Dynamic Target 2030 Fund	34
Wells Fargo Dynamic Target 2035 Fund	36
Wells Fargo Dynamic Target 2040 Fund	38
Wells Fargo Dynamic Target 2045 Fund	40
Wells Fargo Dynamic Target 2050 Fund	42
Wells Fargo Dynamic Target 2055 Fund	44
Wells Fargo Dynamic Target 2060 Fund	45
Financial statements
Statements of assets and liabilities	48
Statements of operations	52
Statements of changes in net assets	55
Financial highlights	66
Notes to financial statements	88
Report of independent registered public accounting firm	105
Other information	106
List of abbreviations	113

The views expressed and any forward-looking statements are as of May 31, 2016, 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 Funds 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 Dynamic Target Date Funds Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

During much of the period, global equity, bond, and currency markets were volatile as recessionary pressures and diverging central bank policies concerned investors.

During the last month of 2015, Japan’s economy contracted, China’s manufacturing sector retrenched, and growth appeared to slow in Europe.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Dynamic Target Date Funds since commencement of operations on November 30, 2015 through May 31, 2016. During much of the period, global equity, bond, and currency markets were volatile as recessionary pressures and diverging central bank policies concerned investors. As the period closed, investor confidence appeared to improve based on favorable economic data in key markets and central bank monetary policies that were intended to support increased business activity.

Shifting investor sentiment reflected changing economic and business data.

The S&P 500 Index,¹ a common measure of U.S. stock performance recorded a gain of 1.92% for the six-month reporting period that ended May 31, 2016. As anticipated, the U.S. Federal Reserve (Fed) increased the federal funds rate in December and suggested it planned to pursue additional increases in 2016. During the first six weeks of 2016, the index suffered the worst loss to open a year on record before trending higher through the end of May 2016. While the U.S. dollar strengthened, which negatively affected investment returns and U.S. corporate profits earned overseas, improving domestic economic data and the Fed’s indications that it would maintain accommodative monetary policies helped improve investor sentiment.

Overseas, the People’s Bank of China (PBOC) allowed the value of the country’s currency to decline in an attempt to bolster exports. The U.S. dollar strengthened, which negatively affected investment returns and U.S. corporate profits earned overseas. During the last month of 2015, Japan’s economy contracted, China’s manufacturing sector retrenched, and growth appeared to slow in Europe.

Global equity markets hit low points before starting to rebound in the middle of February 2016 when business data improved and central bankers reasserted their commitment to initiatives intended to encourage economic activity. The European Central Bank (ECB) pushed the deposit interest rate further into negative territory. The Bank of Japan (BOJ) followed the ECB’s lead by setting a negative deposit rate. Negative deposit interest rates are intended to encourage banks to lend assets rather than keep them on deposit. The PBOC reduced reserve ratios, which also was intended to encourage lending. The ECB expanded its bond-buying program, which injects liquidity into the markets and encourages investment.

For the six-month reporting period, the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net)² and MSCI Emerging Markets (EM) Index (Net)³ recorded returns of -1.37% and 0.04%, respectively.

A December federal funds rate increase marked divergence of central bank policies.

Bond markets were volatile as well. The Fed’s decision to tighten credit conditions through higher interest rates contrasted with actions by the ECB, the PBOC, and the BOJ. In January 2016, amid falling stock markets, U.S. corporate profits declined for the

¹  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.

²  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 markets, excluding the U.S. and Canada. 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. You cannot invest directly in an index.

³  The MSCI Emerging Markets (EM) 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 EM Index (Net) 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. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Dynamic Target Date Funds 3

second consecutive quarter. The Fed expressed hesitancy about additional credit tightening in the near term, which investors appeared to read as accommodative of business activity. Overall, policy actions of central banks and intermittently positive economic data heartened investors as the period drew to a close.

Bond markets benefited during the period, with the Barclays Global Aggregate ex U.S. Dollar Bond Index⁴ gaining 9.17%, the Barclays U.S. Aggregate Bond Index⁵ gaining 6.43%, and the Barclays U.S. Treasury Index⁶ adding 2.92% during the period.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo 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 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

British Exit from European Union (“Brexit”)

On June 23, 2016, the United Kingdom (UK) voted to leave the European Union (EU). It is expected that the UK’s exit from the EU will take place within two years after giving formal notice to the EU of its intention to withdraw; however, the exact timeframe is unknown. There is considerable uncertainty about how the UK exit from the EU will be conducted, how negotiations of necessary treaties and trade agreements will proceed or how the financial markets will react. In addition, it is not yet known whether Brexit will increase the likelihood of other countries seeking to depart the EU. Immediately following the vote, markets in the UK, Europe and the world were negatively impacted. In light of the uncertainties surrounding the impact of Brexit on the broader global economy, the negative impact could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on Europe for their business activities and revenues. Any further exits from the EU, or the possibility of such exits, would likely cause additional market disruption globally and introduce new legal and regulatory uncertainties.

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  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.

⁵  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, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁶  The Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index.

4 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

Wells Fargo Dynamic Target Date Funds

Investment objective

Each Fund seeks total return over time, consistent with its strategic target allocation

Wells Fargo Dynamic Target Date Funds	Corresponding S&P Target Date Index
Dynamic Target Today Fund	S&P Target Date Retirement Income Index
Dynamic Target 2015 Fund	S&P Target Date 2015 Index
Dynamic Target 2020 Fund	S&P Target Date 2020 Index
Dynamic Target 2025 Fund	S&P Target Date 2025 Index
Dynamic Target 2030 Fund	S&P Target Date 2030 Index
Dynamic Target 2035 Fund	S&P Target Date 2035 Index
Dynamic Target 2040 Fund	S&P Target Date 2040 Index
Dynamic Target 2045 Fund	S&P Target Date 2045 Index
Dynamic Target 2050 Fund	S&P Target Date 2050 Index
Dynamic Target 2055 Fund	S&P Target Date 2055+ Index
Dynamic Target 2060 Fund	S&P Target Date 2055+ Index

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christian Chan, CFA^®

Kandarp Acharya, CFA^®, FRM

The target date represents the year in which investors may likely begin withdrawing assets. Each Fund gradually seeks to reduce market risk as the target date approaches and after it arrives by decreasing equity exposure and increasing fixed income exposure. The principal value is not guaranteed at any time, including at the target date.

The Funds invest 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. Alternative investments, such as short sales, commodities and merger arbitrage strategies, 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 each Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on each 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. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). Each Fund is exposed to foreign investment risk, mortgage- and asset-backed securities risk, new fund risk, regulatory risk, and smaller-company investment risk. Consult each Fund’s prospectus for additional information on these and other risks.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 5

Dynamic Target Today Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios1 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WDYAX)	11-30-2015		(5.05	)		0.75	*		1.38		0.98
Class C (WDYCX)	11-30-2015		(0.62	)		0.38	*		2.13		1.73
Class R (WDYRX)	11-30-2015		–			0.63	*		1.63		1.23
Class R4 (WDYYX)	11-30-2015		–			0.98	*		1.05		0.67
Class R6 (WDYZX)	11-30-2015		–			0.99	*		0.90		0.52
S&P Target Date Retirement Income Index3	–		–			2.04			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

6 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

Dynamic Target 2015 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios5 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WDTAX)	11-30-2015		(5.53	)		0.24	*		1.40		1.00
Class C (WDTCX)	11-30-2015		(1.13	)		(0.13	)*		2.15		1.75
Class R (WDTRX)	11-30-2015		–			0.12	*		1.65		1.25
Class R4 (WDTYX)	11-30-2015		–			0.37	*		1.07		0.69
Class R6 (WDTZX)	11-30-2015		–			0.48	*		0.92		0.54
S&P Target Date 2015 Index3	–		–			1.74			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 7

Dynamic Target 2020 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios6 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WDTDX)	11-30-2015		(5.51	)		0.25	*		1.42		1.02
Class C (WDTEX)	11-30-2015		(1.09	)		(0.09	)*		2.17		1.77
Class R (WDTFX)	11-30-2015		–			0.16	*		1.67		1.27
Class R4 (WDTGX)	11-30-2015		–			0.41	*		1.09		0.71
Class R6 (WDTHX)	11-30-2015		–			0.52	*		0.94		0.56
S&P Target Date 2020 Index3	–		–			1.58			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

8 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

Dynamic Target 2025 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios7 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WDTIX)	11-30-2015		(6.01	)		(0.27	)*		1.44		1.04
Class C (WDTJX)	11-30-2015		(1.63	)		(0.64	)*		2.19		1.79
Class R (WDTKX)	11-30-2015		–			(0.39	)*		1.69		1.29
Class R4 (WDTLX)	11-30-2015		–			(0.04	)*		1.11		0.73
Class R6 (WDTMX)	11-30-2015		–			(0.03	)*		0.96		0.58
S&P Target Date 2025 Index3	–		–			1.43			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 9

Dynamic Target 2030 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios8 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WDTNX)	11-30-2015		(6.26	)		(0.55	)*		1.45		1.06
Class C (WDTOX)	11-30-2015		(1.89	)		(0.91	)*		2.20		1.81
Class R (WDTPX)	11-30-2015		–			(0.66	)*		1.70		1.31
Class R4 (WDTQX)	11-30-2015		–			(0.31	)*		1.12		0.75
Class R6 (WDTSX)	11-30-2015		–			(0.29	)*		0.97		0.60
S&P Target Date 2030 Index3	–		–			1.29			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

10 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

Dynamic Target 2035 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios9 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WDTTX)	11-30-2015		(6.53	)		(0.82	)*		1.46		1.07
Class C (WDCTX)	11-30-2015		(2.26	)		(1.28	)*		2.21		1.82
Class R (WDTUX)	11-30-2015		–			(0.93	)*		1.71		1.32
Class R4 (WDTVX)	11-30-2015		–			(0.68	)*		1.13		0.76
Class R6 (WDTWX)	11-30-2015		–			(0.66	)*		0.98		0.61
S&P Target Date 2035 Index3	–		–			1.15			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 11

Dynamic Target 2040 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios10 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WTDAX)	11-30-2015		(6.78	)		(1.10	)*		1.47		1.08
Class C (WTDCX)	11-30-2015		(2.43	)		(1.45	)*		2.22		1.83
Class R (WTDDX)	11-30-2015		–			(1.21	)*		1.72		1.33
Class R4 (WTDEX)	11-30-2015		–			(0.96	)*		1.14		0.77
Class R6 (WTDFX)	11-30-2015		–			(0.84	)*		0.99		0.62
S&P Target Date 2040 Index3	–		–			1.04			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

12 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

Dynamic Target 2045 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios10 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WTDGX)	11-30-2015		(6.68	)		(0.99	)*		1.47		1.08
Class C (WTDHX)	11-30-2015		(2.33	)		(1.35	)*		2.22		1.83
Class R (WTDIX)	11-30-2015		–			(1.10	)*		1.72		1.33
Class R4 (WTDJX)	11-30-2015		–			(0.75	)*		1.14		0.77
Class R6 (WTDKX)	11-30-2015		–			(0.74	)*		0.99		0.62
S&P Target Date 2045 Index3	–		–			0.95			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 13

Dynamic Target 2050 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios10 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WTDLX)	11-30-2015		(6.67	)		(0.98	)*		1.47		1.08
Class C (WTDMX)	11-30-2015		(2.33	)		(1.35	)*		2.22		1.83
Class R (WTDNX)	11-30-2015		–			(1.10	)*		1.72		1.33
Class R4 (WTDOX)	11-30-2015		–			(0.75	)*		1.14		0.77
Class R6 (WTDPX)	11-30-2015		–			(0.74	)*		0.99		0.62
S&P Target Date 2050 Index3	–		–			0.82			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

14 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

Dynamic Target 2055 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios10 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WTDQX)	11-30-2015		(6.58	)		(0.88	)*		1.47		1.08
Class C (WTDRX)	11-30-2015		(2.23	)		(1.25	)*		2.22		1.83
Class R (WTDSX)	11-30-2015		–			(1.00	)*		1.72		1.33
Class R4 (WTDTX)	11-30-2015		–			(0.75	)*		1.14		0.77
Class R6 (WTDUX)	11-30-2015		–			(0.63	)*		0.99		0.62
S&P Target Date 2055+ Index3	–		–			0.75			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 15

Dynamic Target 2060 Fund

Average annual total returns (%) as of May 31, 2016

		Including sales charge			Excluding sales charge			Expense ratios10 (%)
	Inception date	Since inception			Since inception			Gross		Net2
Class A (WTDVX)	11-30-2015		(6.48	)		(0.78	)*		1.47		1.08
Class C (WTDWX)	11-30-2015		(2.13	)		(1.15	)*		2.22		1.83
Class R ((WTDYX)	11-30-2015		–			(0.90	)*		1.72		1.33
Class R4 (WTDZX)	11-30-2015		–			(0.65	)*		1.14		0.77
Class R6 (WTSZX)	11-30-2015		–			(0.53	)*		0.99		0.62
S&P Target Date 2055+ Index3	–		–			0.75			–		–

* Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles.

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 and 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. Class R, Class R4 and Class R6 shares are sold without a front-end sales charge or contingent deferred sales charge.

Growth of $10,000 investment as of May 31, 2016⁴

Please see footnotes on page 20.

16 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

MANAGER’S DISCUSSION

Highlights

Each Dynamic Target Date Fund seeks total returns over time, consistent with its strategic target allocation. The Funds invest primarily in underlying mutual funds and exchange-traded funds to diversify each Fund’s investments among the following asset classes: equity, fixed income, and alternative-style and inflation-hedging investments.

The portfolio management team employs three levers as it seeks to manage investment risk.

The Dynamic Target Date Funds incorporate three levers as they seek to manage investment risk over each Fund’s investment time horizon: tactical asset allocation, volatility management, and tail risk management. Tactical asset allocation uses timely shifts toward assets with higher expected returns and is driven by the market outlook of the Wells Fargo Asset Management Allocation Committee. Volatility management reduces exposure to risky assets in high-volatility markets and adds risky assets in low-volatility markets. Tail risk management uses institutional hedging techniques in an effort to mitigate risk during severe market downturns when a portfolio’s value falls to a specific level. Volatility management and tail risk management comprise the Dynamic Risk Hedging (DRH) strategy.

During the period, tactical asset allocation benefited all Funds and DRH benefited most Funds.

Eleven Funds comprise the Dynamic Target Date Funds series. For the six-month period from the launch of the Funds on November 30, 2015, through May 31, 2016, each Dynamic Target Date Fund underperformed its custom S&P Target Date Index.³

An equity-market correction, defined as a loss of 10% or more, during January and February 2016 proved to be a challenging environment for the underlying managers. The Funds’ underlying equity fund investments tended to underperform their benchmarks in the volatile market environment. The Funds’ bond investments added to performance on an absolute basis but underperformed their benchmarks. The market correction and the subsequent equity rallies left these historically inversely correlated markets difficult to navigate for the underlying funds.

Tactical asset allocation added to performance during the period for all of the Dynamic Target Date Funds. During the January/February 2016 correction, which bottomed on February 11, 2016, the portfolio management team tactically shifted portfolio allocations to increase equity exposure during periods of depressed equity prices, which contributed to Fund performance when equity markets subsequently rallied.

DRH contributed to performance for the longest-dated Dynamic Target Date Funds in the series, beginning with the Dynamic Target 2020 Fund through the Dynamic Target 2060 Fund, and detracted from performance for the near-term Dynamic Target Today Fund and Dynamic Target 2015 Fund. For the longest-dated Funds, the overlay, through which the portfolio management team took large short positions during the correction, protected the portfolio from some downside risk, reduced portfolio volatility, and added to overall performance. For the Dynamic Target Today Fund and the Dynamic Target 2015 Fund, the whipsawing market that followed the correction limited the effectiveness of the hedging strategy. Because the shorter dated funds are more conservative, the Dynamic Target Today Fund and the Dynamic Target 2015 Fund have lower equity allocations compared with the longer-dated funds. During the market correction, smaller portions were hedged compared to longer-dated portfolios. During the downturn the overlay protected the Funds, but the following whipsawing market overwhelmed the gains for the Dynamic Target 2015 Fund and the Dynamic Target Date Today Fund.

We remain cautiously optimistic about the longer-term investment outlook.

Bond yields continued to be depressed. The potential for future interest-rate hikes may be a headwind to increases in overall output in the general U.S. economy. Especially with yields at historic lows, there continues to be a duration risk in bonds.

Internationally, the accommodative monetary policies of the European Central Bank and the Bank of Japan are intended to bolster their local economies. We believe these central banks will continue to support growth in their economies, and that should be supportive of asset prices. In addition to developed international economies, emerging markets stocks are at low valuation levels not seen in years. Finally, domestic stocks and the U.S. economy have shown resilience in the past year. We look to market signals and economic releases to help inform the changing state of U.S. markets.

Please see footnotes on page 20.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 17

Ten largest holdings (%) as of May 31, 2016¹¹

Dynamic Target Today Fund		Dynamic Target 2015 Fund
Wells Fargo Core Bond Portfolio	12.96	Schwab U.S. Broad Market ETF	13.19
Schwab U.S. Aggregate Bond ETF	10.79	Wells Fargo Core Bond Portfolio	9.50
Wells Fargo Strategic Income Fund Institutional Class	9.76	Schwab U.S. Aggregate Bond ETF	7.91
Wells Fargo Short-Term Bond Fund Institutional Class	9.75	Wells Fargo Strategic Income Fund Institutional Class	7.15
Schwab U.S. Broad Market ETF	9.14	Wells Fargo Short-Term Bond Fund Institutional Class	7.14
Wells Fargo Real Return Portfolio	5.39	Wells Fargo Diversified International Fund Class R6	6.54
Wells Fargo International Bond Fund Class R6	5.32	Schwab International Equity ETF	5.52
Calamos Market Neutral Income Fund Class I	4.94	Calamos Market Neutral Income Fund Class I	4.92
Wells Fargo Diversified International Fund Class R6	4.55	Wells Fargo Real Return Portfolio	3.95
Schwab International Equity ETF	3.83	Wells Fargo International Bond Fund Class R6	3.92

Dynamic Target 2020 Fund		Dynamic Target 2025 Fund
Schwab U.S. Broad Market ETF	15.67	Schwab U.S. Broad Market ETF	17.97
Wells Fargo Diversified International Fund Class R6	7.79	Wells Fargo Diversified International Fund Class R6	8.94
Wells Fargo Core Bond Portfolio	7.40	Schwab International Equity ETF	7.54
Schwab International Equity ETF	6.57	Wells Fargo Core Bond Portfolio	5.50
Schwab U.S. Aggregate Bond ETF	6.16	Calamos Market Neutral Income Fund Class I	4.89
Wells Fargo Strategic Income Fund Institutional Class	5.57	Wells Fargo Premier Large Company Growth Fund Class R6	4.87
Wells Fargo Short-Term Bond Fund Institutional Class	5.57	Wells Fargo Endeavor Select Fund Institutional Class	4.86
Calamos Market Neutral Income Fund Class I	4.90	Schwab U.S. Aggregate Bond ETF	4.58
Wells Fargo Premier Large Company Growth Fund Class R6	4.24	Wells Fargo Strategic Income Fund Institutional Class	4.14
Wells Fargo Endeavor Select Fund Institutional Class	4.23	Wells Fargo Short-Term Bond Fund Institutional Class	4.14

Dynamic Target 2030 Fund		Dynamic Target 2035 Fund
Schwab U.S. Broad Market ETF	20.26	Schwab U.S. Broad Market ETF	21.81
Wells Fargo Diversified International Fund Class R6	10.07	Wells Fargo Diversified International Fund Class R6	10.84
Schwab International Equity ETF	8.50	Schwab International Equity ETF	9.15
Wells Fargo Premier Large Company Growth Fund Class R6	5.48	Wells Fargo Endeavor Select Fund Institutional Class	5.90
Wells Fargo Endeavor Select Fund Institutional Class	5.48	Wells Fargo Premier Large Company Growth Fund Class R6	5.90
Calamos Market Neutral Income Fund Class I	4.88	Calamos Market Neutral Income Fund Class I	4.90
Wells Fargo Emerging Markets Equity Income Fund Class R6	4.56	Wells Fargo Emerging Markets Equity Income Fund Class R6	4.89
Wells Fargo Enterprise Fund Class R6	3.97	Wells Fargo Enterprise Fund Class R6	4.29
Wells Fargo Special Mid Cap Value Fund Class R6	3.95	Wells Fargo Special Mid Cap Value Fund Class R6	4.26
Wells Fargo Large Company Value Portfolio	3.65	Wells Fargo Large Company Value Portfolio	3.93

Please see footnotes on page 20.

18 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

Dynamic Target 2040 Fund		Dynamic Target 2045 Fund
Schwab U.S. Broad Market ETF	22.76	Schwab U.S. Broad Market ETF	23.16
Wells Fargo Diversified International Fund Class R6	11.38	Wells Fargo Diversified International Fund Class R6	11.52
Schwab International Equity ETF	9.59	Schwab International Equity ETF	9.72
Wells Fargo Premier Large Company Growth Fund Class R6	6.16	Wells Fargo Premier Large Company Growth Fund Class R6	6.27
Wells Fargo Endeavor Select Fund Institutional Class	6.14	Wells Fargo Endeavor Select Fund Institutional Class	6.24
Wells Fargo Emerging Markets Equity Income Fund Class R6	5.25	Wells Fargo Emerging Markets Equity Income Fund Class R6	5.22
Calamos Market Neutral Income Fund Class I	4.93	Calamos Market Neutral Income Fund Class I	4.90
Wells Fargo Enterprise Fund Class R6	4.46	Wells Fargo Enterprise Fund Class R6	4.52
Wells Fargo Special Mid Cap Value Fund Class R6	4.44	Wells Fargo Special Mid Cap Value Fund Class R6	4.50
Wells Fargo Large Company Value Portfolio	4.10	Wells Fargo Large Company Value Portfolio	4.17

Dynamic Target 2050 Fund		Dynamic Target 2055 Fund
Schwab U.S. Broad Market ETF	23.17	Schwab U.S. Broad Market ETF	23.17
Wells Fargo Diversified International Fund Class R6	11.52	Wells Fargo Diversified International Fund Class R6	11.52
Schwab International Equity ETF	9.72	Schwab International Equity ETF	9.72
Wells Fargo Premier Large Company Growth Fund Class R6	6.26	Wells Fargo Premier Large Company Growth Fund Class R6	6.26
Wells Fargo Endeavor Select Fund Institutional Class	6.25	Wells Fargo Endeavor Select Fund Institutional Class	6.25
Wells Fargo Emerging Markets Equity Income Fund Class R6	5.21	Wells Fargo Emerging Markets Equity Income Fund Class R6	5.21
Calamos Market Neutral Income Fund Class I	4.90	Calamos Market Neutral Income Fund Class I	4.90
Wells Fargo Enterprise Fund Class R6	4.52	Wells Fargo Enterprise Fund Class R6	4.53
Wells Fargo Special Mid Cap Value Fund Class R6	4.51	Wells Fargo Special Mid Cap Value Fund Class R6	4.51
Wells Fargo Large Company Value Portfolio	4.17	Wells Fargo Large Company Value Portfolio	4.17
Dynamic Target 2060 Fund
Schwab U.S. Broad Market ETF	23.17
Wells Fargo Diversified International Fund Class R6	11.52
Schwab International Equity ETF	9.72
Wells Fargo Premier Large Company Growth Fund Class R6	6.26
Wells Fargo Endeavor Select Fund Institutional Class	6.25
Wells Fargo Emerging Markets Equity Income Fund Class R6	5.21
Calamos Market Neutral Income Fund Class I	4.90
Wells Fargo Enterprise Fund Class R6	4.52
Wells Fargo Special Mid Cap Value Fund Class R6	4.51
Wells Fargo Large Company Value Portfolio	4.17

Please see footnotes on page 20.

Performance highlights (unaudited) Wells Fargo Dynamic Target Date Funds 19

Allocations as of May 31, 2016¹²

Dynamic Target Today Fund							Dynamic Target 2015 Fund							Dynamic 2020 Today Fund
	Effective Allocation			Strategic Target Allocation				Effective Allocation			Strategic Target Allocation				Effective Allocation			Strategic Target Allocation
Equity		36	%		35	%	Equity		51	%		51	%	Equity		61	%		60	%
Fixed-Income		44	%		50	%	Fixed-Income		31	%		36	%	Fixed-Income		23	%		29	%
Alternative Investments		15	%		15	%	Alternative Investments		13	%		13	%	Alternative Investments		11	%		11	%
Effective Cash		5	%		0	%	Effective Cash		5	%		0	%	Effective Cash		5	%		0	%
Dynamic 2025 Today Fund							Dynamic 2030 Today Fund							Dynamic 2035 Today Fund
	Effective Allocation			Strategic Target Allocation				Effective Allocation			Strategic Target Allocation				Effective Allocation			Strategic Target Allocation
Equity		70	%		70	%	Equity		79	%		78	%	Equity		85	%		85	%
Fixed-Income		16	%		21	%	Fixed-Income		9	%		14	%	Fixed-Income		4	%		9	%
Alternative Investments		9	%		9	%	Alternative Investments		7	%		8	%	Alternative Investments		6	%		6	%
Effective Cash		5	%		0	%	Effective Cash		5	%		0	%	Effective Cash		5	%		0	%
Dynamic 2040 Today Fund							Dynamic 2045 Today Fund							Dynamic 2050 Today Fund
	Effective Allocation			Strategic Target Allocation				Effective Allocation			Strategic Target Allocation				Effective Allocation			Strategic Target Allocation
Equity		89	%		89	%	Equity		90	%		90	%	Equity		90	%		90	%
Fixed-Income		0	%		6	%	Fixed-Income		(1)	%		4	%	Fixed-Income		(1)	%		5	%
Alternative Investments		6	%		5	%	Alternative Investments		6	%		6	%	Alternative Investments		6	%		5	%
Effective Cash		5	%		0	%	Effective Cash		5	%		0	%	Effective Cash		5	%		0	%
Dynamic 2055 Today Fund							Dynamic 2060 Today Fund
	Effective Allocation			Strategic Target Allocation				Effective Allocation			Strategic Target Allocation
Equity		90	%		90	%	Equity		90	%		90	%
Fixed-Income		(1)	%		5	%	Fixed-Income		(1)	%		5	%
Alternative Investments		6	%		5	%	Alternative Investments		6	%		5	%
Effective Cash		5	%		0	%	Effective Cash		5	%		0	%

Please see footnotes on page 20.

20 Wells Fargo Dynamic Target Date Funds Performance highlights (unaudited)

¹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.48% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

²  The manager has committed through September 30, 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, and extraordinary expenses are excluded from the expense cap. Acquired fund fees and expenses and net expenses from the affiliated master portfolios are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

³  The S&P Target Date Indexes (each, an index, or collectively, the indexes) are a series of indexes designed as benchmarks for multi-asset class portfolios with risk profiles that become more conservative over time, each corresponding to a target retirement date. The index series reflects the market consensus for asset allocations for different target date horizons. In particular, each index is representative of the investment opportunity available to investors for the corresponding target date horizon, with asset class exposures driven by a survey of available target date funds for that horizon. The index returns include hypothetical back-tested performance. You cannot invest directly in an index.

⁴  The chart compares the performance of Class A shares since inception with the respective S&P Target Date Indexes. The chart assumes a hypothetical $10,000 investment in Class A and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁵  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.50% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

⁶  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.52% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

⁷  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.54% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

⁸  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.55% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

⁹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.56% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

¹⁰  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.57% of acquired fund fees and expenses and net expenses from affiliated master portfolios. 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 and net expenses from affiliated master portfolios.

¹¹  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

¹²  The effective allocation includes the effect of any tactical futures overlay that may be in place. Effective cash is comprised of the net impact of long and/or short futures contracts held as part of dynamic risk management strategy. The amounts are subject to change and may have changed since the date specified.

Fund expenses (unaudited) Wells Fargo Dynamic Target Date Funds 21

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 December 1, 2015 to May 31, 2016.

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.

Dynamic Target Today Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,007.47	$	2.66		0.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.35	$	2.68		0.53	%
Class C
Actual	$	1,000.00	$	1,003.78	$	6.41		1.28	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.60	$	6.46		1.28	%
Class R
Actual	$	1,000.00	$	1,006.26	$	3.88		0.77	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.13	$	3.91		0.77	%
Class R4
Actual	$	1,000.00	$	1,009.76	$	1.11		0.22	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.90	$	1.11		0.22	%
Class R6
Actual	$	1,000.00	$	1,009.90	$	0.33		0.07	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.67	$	0.33		0.07	%

Please see footnote on page 25.

22 Wells Fargo Dynamic Target Date Funds Fund expenses (unaudited)

Dynamic Target 2015 Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,002.36	$	2.25		0.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.75	$	2.28		0.45	%
Class C
Actual	$	1,000.00	$	998.65	$	6.40		1.28	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.60	$	6.46		1.28	%
Class R
Actual	$	1,000.00	$	1,001.15	$	3.84		0.77	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	3.87		0.77	%
Class R4
Actual	$	1,000.00	$	1,003.65	$	1.10		0.22	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.90	$	1.11		0.22	%
Class R6
Actual	$	1,000.00	$	1,004.81	$	0.32		0.06	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.68	$	0.32		0.06	%
Dynamic Target 2020 Fund
Class A
Actual	$	1,000.00	$	1,002.51	$	2.71		0.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.30	$	2.73		0.54	%
Class C
Actual	$	1,000.00	$	999.08	$	6.43		1.29	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.57	$	6.49		1.29	%
Class R
Actual	$	1,000.00	$	1,001.58	$	3.88		0.77	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.13	$	3.91		0.77	%
Class R4
Actual	$	1,000.00	$	1,004.08	$	1.13		0.23	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.87	$	1.14		0.23	%
Class R6
Actual	$	1,000.00	$	1,005.24	$	0.35		0.07	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.65	$	0.35		0.07	%
Dynamic Target 2025 Fund
Class A
Actual	$	1,000.00	$	997.26	$	2.28		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.71	$	2.31		0.46	%
Class C
Actual	$	1,000.00	$	993.56	$	6.46		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.52	$	6.54		1.30	%
Class R
Actual	$	1,000.00	$	996.06	$	3.87		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.13	$	3.92		0.78	%
Class R4
Actual	$	1,000.00	$	999.57	$	1.17		0.23	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.83	$	1.19		0.23	%
Class R6
Actual	$	1,000.00	$	999.72	$	0.38		0.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.62	$	0.39		0.08	%

Please see footnote on page 25.

Fund expenses (unaudited) Wells Fargo Dynamic Target Date Funds 23

Dynamic Target 2030 Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	994.54	$	2.23		0.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.76	$	2.27		0.45	%
Class C
Actual	$	1,000.00	$	990.94	$	6.48		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.49	$	6.57		1.30	%
Class R
Actual	$	1,000.00	$	993.42	$	3.94		0.79	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.04	$	4.00		0.79	%
Class R4
Actual	$	1,000.00	$	996.94	$	1.20		0.24	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.79	$	1.22		0.24	%
Class R6
Actual	$	1,000.00	$	997.09	$	0.43		0.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.57	$	0.43		0.09	%
Dynamic Target 2035 Fund
Class A
Actual	$	1,000.00	$	991.77	$	2.71		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.27	$	2.76		0.55	%
Class C
Actual	$	1,000.00	$	987.20	$	6.46		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.50	$	6.56		1.30	%
Class R
Actual	$	1,000.00	$	990.69	$	3.92		0.79	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.07	$	3.97		0.79	%
Class R4
Actual	$	1,000.00	$	993.20	$	1.20		0.24	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.80	$	1.21		0.24	%
Class R6
Actual	$	1,000.00	$	993.35	$	0.41		0.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.58	$	0.42		0.08	%
Dynamic Target 2040 Fund
Class A
Actual	$	1,000.00	$	989.02	$	2.64		0.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.35	$	2.68		0.53	%
Class C
Actual	$	1,000.00	$	985.47	$	6.47		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.48	$	6.58		1.30	%
Class R
Actual	$	1,000.00	$	987.94	$	3.96		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.02	$	4.03		0.80	%
Class R4
Actual	$	1,000.00	$	990.43	$	1.21		0.24	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.79	$	1.23		0.24	%
Class R6
Actual	$	1,000.00	$	991.58	$	0.44		0.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.56	$	0.45		0.09	%

Please see footnote on page 25.

24 Wells Fargo Dynamic Target Date Funds Fund expenses (unaudited)

Dynamic Target 2045 Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	990.08	$	2.65		0.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.33	$	2.70		0.53	%
Class C
Actual	$	1,000.00	$	986.52	$	6.46		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.50	$	6.56		1.30	%
Class R
Actual	$	1,000.00	$	989.00	$	3.96		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.02	$	4.02		0.80	%
Class R4
Actual	$	1,000.00	$	992.50	$	1.19		0.24	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.80	$	1.21		0.24	%
Class R6
Actual	$	1,000.00	$	992.64	$	0.43		0.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.57	$	0.44		0.09	%
Dynamic Target 2050 Fund
Class A
Actual	$	1,000.00	$	990.20	$	2.63		0.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.35	$	2.68		0.53	%
Class C
Actual	$	1,000.00	$	986.50	$	6.46		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.50	$	6.56		1.30	%
Class R
Actual	$	1,000.00	$	988.99	$	3.97		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.01	$	4.03		0.80	%
Class R4
Actual	$	1,000.00	$	992.50	$	1.20		0.24	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.80	$	1.22		0.24	%
Class R6
Actual	$	1,000.00	$	992.64	$	0.43		0.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.57	$	0.44		0.09	%
Dynamic Target 2055 Fund
Class A
Actual	$	1,000.00	$	991.21	$	2.71		0.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.28	$	2.75		0.54	%
Class C
Actual	$	1,000.00	$	987.50	$	6.46		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.50	$	6.56		1.30	%
Class R
Actual	$	1,000.00	$	989.99	$	3.97		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.01	$	4.03		0.80	%
Class R4
Actual	$	1,000.00	$	992.50	$	1.20		0.24	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.80	$	1.21		0.24	%
Class R6
Actual	$	1,000.00	$	993.65	$	0.43		0.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.57	$	0.44		0.09	%

Please see footnote on page 25.

Fund expenses (unaudited) Wells Fargo Dynamic Target Date Funds 25

Dynamic Target 2060 Fund	Beginning account value 12-1-2015		Ending account value 5-31-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	992.22	$	2.74		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.25	$	2.78		0.55	%
Class C
Actual	$	1,000.00	$	988.54	$	6.46		1.30	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.50	$	6.56		1.30	%
Class R
Actual	$	1,000.00	$	991.02	$	3.97		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.01	$	4.03		0.80	%
Class R4
Actual	$	1,000.00	$	993.51	$	1.19		0.24	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.80	$	1.21		0.24	%
Class R6
Actual	$	1,000.00	$	994.66	$	0.43		0.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,024.57	$	0.43		0.09	%

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).

26 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET TODAY FUND

Security name						Shares		Value
Exchange-Traded Funds: 28.71%
iShares Global Infrastructure ETF							2,544	$	101,353
Schwab International Equity ETF							7,015		193,965
Schwab U.S. Aggregate Bond ETF							10,334		545,739
Schwab U.S. Broad Market ETF							9,166		462,425
Schwab U.S. REIT ETF							3,621		148,606
Total Exchange-Traded Funds (Cost $1,439,799)									1,452,088
Investment Companies: 70.31%
Affiliated Master Portfolios: 23.78%
Wells Fargo C&B Large Cap Value Portfolio									82,650
Wells Fargo Core Bond Portfolio									655,585
Wells Fargo Large Company Value Portfolio									83,192
Wells Fargo Real Return Portfolio									272,449
Wells Fargo Small Company Growth Portfolio									54,661
Wells Fargo Small Company Value Portfolio									54,373
									1,202,910
Fixed-Income Funds: 24.83%
Wells Fargo International Bond Fund Class R6 (l)†							26,414		268,895
Wells Fargo Short-Term Bond Fund Institutional Class (l)							56,295		493,140
Wells Fargo Strategic Income Fund Institutional Class (l)							54,721		493,585
									1,255,620
Equity Funds: 21.70%
Calamos Market Neutral Income Fund Class I							19,502		249,625
Wells Fargo Diversified International Fund Class R6 (l)							20,420		229,932
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							10,965		104,277
Wells Fargo Endeavor Select Fund Institutional Class (l)†							13,451		124,955
Wells Fargo Enterprise Fund Class R6 (l)†							2,082		91,018
Wells Fargo Intrinsic Value Fund Class R6 (l)							7,085		82,395
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							8,539		125,178
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							2,795		90,377
									1,097,757
Total Investment Companies (Cost $3,588,173)									3,556,287
	Yield			Maturity date		Principal
Short-Term Investments: 0.06%
U.S. Treasury Securities: 0.06%
U.S. Treasury Bill (z)#		0.09	%		6-9-2016	$	3,000		3,000
Total Short-Term Investments (Cost $3,000)									3,000

Total investments in securities (Cost $5,030,972) *	99.08	%		5,011,375
Other assets and liabilities, net	0.92			46,473
Total net assets	100.00	%	$	5,057,848

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 27

DYNAMIC TARGET TODAY FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,035,702 and unrealized gains (losses) consists of:

Gross unrealized gains	$	81,745
Gross unrealized losses		(106,072	)
Net unrealized losses	$	(24,327	)

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

28 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2015 FUND

Security name						Shares		Value
Exchange-Traded Funds: 30.56%
iShares Global Infrastructure ETF							2,561	$	102,030
Schwab International Equity ETF							10,231		282,887
Schwab U.S. Aggregate Bond ETF							7,678		405,475
Schwab U.S. Broad Market ETF							13,405		676,282
Schwab U.S. REIT ETF							2,450		100,548
Total Exchange-Traded Funds (Cost $1,560,574)									1,567,222
Investment Companies: 68.50%
Affiliated Master Portfolios: 21.27%
Wells Fargo C&B Large Cap Value Portfolio									120,498
Wells Fargo Core Bond Portfolio									487,203
Wells Fargo Large Company Value Portfolio									121,833
Wells Fargo Real Return Portfolio									202,701
Wells Fargo Small Company Growth Portfolio									79,555
Wells Fargo Small Company Value Portfolio									79,184
									1,090,974
Fixed-Income Funds: 18.22%
Wells Fargo International Bond Fund Class R6 (l)†							19,765		201,204
Wells Fargo Short-Term Bond Fund Institutional Class (l)							41,805		366,215
Wells Fargo Strategic Income Fund Institutional Class (l)							40,667		366,819
									934,238
Equity Funds: 29.01%
Calamos Market Neutral Income Fund Class I							19,730		252,550
Wells Fargo Diversified International Fund Class R6 (l)							29,792		335,454
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							15,909		151,293
Wells Fargo Endeavor Select Fund Institutional Class (l)†							19,614		182,215
Wells Fargo Enterprise Fund Class R6 (l)†							3,023		132,116
Wells Fargo Intrinsic Value Fund Class R6 (l)							10,319		120,009
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							12,459		182,654
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							4,068		131,520
									1,487,811
Total Investment Companies (Cost $3,572,635)									3,513,023
	Yield			Maturity date		Principal
Short-Term Investments: 0.06%
U.S. Treasury Securities: 0.06%
U.S. Treasury Bill (z)#		0.09	%		6-9-2016	$	3,000		3,000
Total Short-Term Investments (Cost $3,000)									3,000

Total investments in securities (Cost $5,136,209) *	99.12	%		5,083,245
Other assets and liabilities, net	0.88			45,165
Total net assets	100.00	%	$	5,128,410

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 29

DYNAMIC TARGET 2015 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,143,240 and unrealized gains (losses) consists of:

Gross unrealized gains	$	84,764
Gross unrealized losses		(144,759	)
Net unrealized losses	$	(59,995	)

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

30 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2020 FUND

Security name						Shares		Value
Exchange-Traded Funds: 31.39%
iShares Global Infrastructure ETF							1,329	$	52,947
Schwab International Equity ETF							12,002		331,855
Schwab U.S. Aggregate Bond ETF							5,892		311,157
Schwab U.S. Broad Market ETF							15,686		791,359
Schwab U.S. REIT ETF							2,395		98,291
Total Exchange-Traded Funds (Cost $1,589,344)									1,585,609
Investment Companies: 67.61%
Affiliated Master Portfolios: 19.80%
Wells Fargo C&B Large Cap Value Portfolio									141,485
Wells Fargo Core Bond Portfolio									373,767
Wells Fargo Large Company Value Portfolio									142,659
Wells Fargo Real Return Portfolio									155,360
Wells Fargo Small Company Growth Portfolio									93,500
Wells Fargo Small Company Value Portfolio									93,123
									999,894
Fixed-Income Funds: 14.18%
Wells Fargo International Bond Fund Class R6 (l)†							15,093		153,647
Wells Fargo Short-Term Bond Fund Institutional Class (l)							32,087		281,078
Wells Fargo Strategic Income Fund Institutional Class (l)							31,187		281,303
									716,028
Equity Funds: 33.63%
Calamos Market Neutral Income Fund Class I							19,351		247,698
Wells Fargo Diversified International Fund Class R6 (l)							34,923		393,234
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							18,721		178,035
Wells Fargo Endeavor Select Fund Institutional Class (l)†							23,007		213,737
Wells Fargo Enterprise Fund Class R6 (l)†							3,573		156,168
Wells Fargo Intrinsic Value Fund Class R6 (l)							12,107		140,801
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							14,603		214,087
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							4,789		154,841
									1,698,601
Total Investment Companies (Cost $3,501,318)									3,414,523
	Yield			Maturity date		Principal
Short-Term Investments: 0.06%
U.S. Treasury Securities: 0.06%
U.S. Treasury Bill (z)#		0.09	%		6-9-2016	$	3,000		3,000
Total Short-Term Investments (Cost $3,000)									3,000

Total investments in securities (Cost $5,093,662) *	99.06	%		5,003,132
Other assets and liabilities, net	0.94			47,365
Total net assets	100.00	%	$	5,050,497

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 31

DYNAMIC TARGET 2020 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,101,693 and unrealized gains (losses) consists of:

Gross unrealized gains	$	80,782
Gross unrealized losses		(179,343	)
Net unrealized losses	$	(98,561	)

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

32 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2025 FUND

Security name						Shares		Value
Exchange-Traded Funds: 32.10%
iShares Global Infrastructure ETF							1,271	$	50,637
Schwab International Equity ETF							13,895		384,197
Schwab U.S. Aggregate Bond ETF							4,419		233,367
Schwab U.S. Broad Market ETF							18,156		915,970
Schwab U.S. REIT ETF							1,271		52,162
Total Exchange-Traded Funds (Cost $1,643,164)									1,636,333
Investment Companies: 66.88%
Affiliated Master Portfolios: 18.48%
Wells Fargo C&B Large Cap Value Portfolio									163,963
Wells Fargo Core Bond Portfolio									280,198
Wells Fargo Large Company Value Portfolio									165,213
Wells Fargo Real Return Portfolio									116,379
Wells Fargo Small Company Growth Portfolio									108,232
Wells Fargo Small Company Value Portfolio									107,945
									941,930
Fixed-Income Funds: 10.54%
Wells Fargo International Bond Fund Class R6 (l)†							11,328		115,318
Wells Fargo Short-Term Bond Fund Institutional Class (l)							24,065		210,808
Wells Fargo Strategic Income Fund Institutional Class (l)							23,392		210,993
									537,119
Equity Funds: 37.86%
Calamos Market Neutral Income Fund Class I							19,476		249,291
Wells Fargo Diversified International Fund Class R6 (l)							40,448		455,447
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							21,645		205,847
Wells Fargo Endeavor Select Fund Institutional Class (l)†							26,665		247,716
Wells Fargo Enterprise Fund Class R6 (l)†							4,136		180,779
Wells Fargo Intrinsic Value Fund Class R6 (l)							14,010		162,940
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							16,918		248,021
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							5,546		179,300
									1,929,341
Total Investment Companies (Cost $3,505,356)									3,408,390
	Yield			Maturity date		Principal
Short-Term Investments: 0.06%
U.S. Treasury Securities: 0.06%
U.S. Treasury Bill (z)#		0.16	%		6-9-2016	$	3,000		3,000
Total Short-Term Investments (Cost $3,000)									3,000

Total investments in securities (Cost $5,151,520) *	99.04	%		5,047,723
Other assets and liabilities, net	0.96			48,724
Total net assets	100.00	%	$	5,096,447

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 33

DYNAMIC TARGET 2025 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,164,832 and unrealized gains (losses) consists of:

Gross unrealized gains	$	81,827
Gross unrealized losses		(198,936	)
Net unrealized losses	$	(117,109	)

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

34 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2030 FUND

Security name						Shares		Value
Exchange-Traded Funds: 32.79%
iShares Global Infrastructure ETF							84	$	3,347
Schwab International Equity ETF							15,579		430,759
Schwab U.S. Aggregate Bond ETF							2,892		152,727
Schwab U.S. Broad Market ETF							20,352		1,026,758
Schwab U.S. REIT ETF							1,191		48,879
Total Exchange-Traded Funds (Cost $1,677,198)									1,662,470
Investment Companies: 66.08%
Affiliated Master Portfolios: 17.16%
Wells Fargo C&B Large Cap Value Portfolio									183,237
Wells Fargo Core Bond Portfolio									183,263
Wells Fargo Large Company Value Portfolio									185,029
Wells Fargo Real Return Portfolio									76,203
Wells Fargo Small Company Growth Portfolio									121,286
Wells Fargo Small Company Value Portfolio									120,766
									869,784
Fixed-Income Funds: 6.92%
Wells Fargo International Bond Fund Class R6 (l)†							7,426		75,599
Wells Fargo Short-Term Bond Fund Institutional Class (l)							15,716		137,676
Wells Fargo Strategic Income Fund Institutional Class (l)							15,278		137,803
									351,078
Equity Funds: 42.00%
Calamos Market Neutral Income Fund Class I							19,328		247,398
Wells Fargo Diversified International Fund Class R6 (l)							45,343		510,563
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							24,282		230,925
Wells Fargo Endeavor Select Fund Institutional Class (l)†							29,879		277,575
Wells Fargo Enterprise Fund Class R6 (l)†							4,608		201,433
Wells Fargo Intrinsic Value Fund Class R6 (l)							15,710		182,703
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							18,961		277,974
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							6,195		200,284
									2,128,855
Total Investment Companies (Cost $3,467,841)									3,349,717
	Yield			Maturity date		Principal
Short-Term Investments: 0.16%
U.S. Treasury Securities: 0.16%
U.S. Treasury Bill (z)#		0.17	%		6-9-2016	$	8,000		8,000
Total Short-Term Investments (Cost $8,000)									8,000

Total investments in securities (Cost $5,153,039) *	99.03	%		5,020,187
Other assets and liabilities, net	0.97			48,934
Total net assets	100.00	%	$	5,069,121

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 35

DYNAMIC TARGET 2030 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,170,821 and unrealized gains (losses) consists of:

Gross unrealized gains	$	86,941
Gross unrealized losses		(237,575	)
Net unrealized losses	$	(150,634	)

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

36 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2035 FUND

Security name						Shares		Value
Exchange-Traded Funds: 33.02%
Schwab International Equity ETF							16,531	$	457,082
Schwab U.S. Aggregate Bond ETF							1,894		100,022
Schwab U.S. Broad Market ETF							21,603		1,089,871
Schwab U.S. REIT ETF							78		3,201
Total Exchange-Traded Funds (Cost $1,669,762)									1,650,176
Investment Companies: 65.84%
Affiliated Master Portfolios: 16.37%
Wells Fargo C&B Large Cap Value Portfolio									194,790
Wells Fargo Core Bond Portfolio									120,029
Wells Fargo Large Company Value Portfolio									196,262
Wells Fargo Real Return Portfolio									49,934
Wells Fargo Small Company Growth Portfolio									128,545
Wells Fargo Small Company Value Portfolio									128,239
									817,799
Fixed-Income Funds: 4.60%
Wells Fargo International Bond Fund Class R6 (l)†							4,862		49,499
Wells Fargo Short-Term Bond Fund Institutional Class (l)							10,291		90,151
Wells Fargo Strategic Income Fund Institutional Class (l)							10,002		90,218
									229,868
Equity Funds: 44.87%
Calamos Market Neutral Income Fund Class I							19,130		244,870
Wells Fargo Diversified International Fund Class R6 (l)							48,108		541,697
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							25,721		244,602
Wells Fargo Endeavor Select Fund Institutional Class (l)†							31,745		294,912
Wells Fargo Enterprise Fund Class R6 (l)†							4,907		214,493
Wells Fargo Intrinsic Value Fund Class R6 (l)							16,667		193,840
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							20,115		294,888
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							6,592		213,103
									2,242,405
Total Investment Companies (Cost $3,416,963)									3,290,072
	Yield			Maturity date		Principal
Short-Term Investments: 0.16%
U.S. Treasury Securities: 0.16%
U.S. Treasury Bill (z)#		0.16	%		6-9-2016	$	8,000		8,000
Total Short-Term Investments (Cost $8,000)									8,000

Total investments in securities (Cost $5,094,725) *	99.02	%		4,948,248
Other assets and liabilities, net	0.98			48,879
Total net assets	100.00	%	$	4,997,127

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 37

DYNAMIC TARGET 2035 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,120,977 and unrealized gains (losses) consists of:

Gross unrealized gains	$	78,049
Gross unrealized losses		(250,778	)
Net unrealized losses	$	(172,729	)

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

38 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2040 FUND

Security name						Shares		Value
Exchange-Traded Funds: 33.58%
Schwab International Equity ETF							17,425	$	481,801
Schwab U.S. Aggregate Bond ETF							1,177		62,157
Schwab U.S. Broad Market ETF							22,665		1,143,449
Total Exchange-Traded Funds (Cost $1,707,950)									1,687,407
Investment Companies: 65.33%
Affiliated Master Portfolios: 15.64%
Wells Fargo C&B Large Cap Value Portfolio									204,823
Wells Fargo Core Bond Portfolio									74,638
Wells Fargo Large Company Value Portfolio									205,888
Wells Fargo Real Return Portfolio									31,179
Wells Fargo Small Company Growth Portfolio									134,931
Wells Fargo Small Company Value Portfolio									134,356
									785,815
Fixed-Income Funds: 2.85%
Wells Fargo International Bond Fund Class R6 (l)†							3,052		31,074
Wells Fargo Short-Term Bond Fund Institutional Class (l)							6,399		56,055
Wells Fargo Strategic Income Fund Institutional Class (l)							6,216		56,065
									143,194
Equity Funds: 46.84%
Calamos Market Neutral Income Fund Class I							19,357		247,772
Wells Fargo Diversified International Fund Class R6 (l)							50,806		572,075
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							27,749		263,893
Wells Fargo Endeavor Select Fund Institutional Class (l)†							33,204		308,468
Wells Fargo Enterprise Fund Class R6 (l)†							5,128		224,148
Wells Fargo Intrinsic Value Fund Class R6 (l)							17,620		204,920
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							21,100		309,319
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							6,898		223,027
									2,353,622
Total Investment Companies (Cost $3,413,960)									3,282,631
	Yield			Maturity date		Principal
Short-Term Investments: 0.16%
U.S. Treasury Securities: 0.16%
U.S. Treasury Bill (z)#		0.15	%		6-9-2016	$	8,000		8,000
Total Short-Term Investments (Cost $8,000)									8,000

Total investments in securities (Cost $5,129,910) *	99.07	%		4,978,038
Other assets and liabilities, net	0.93			46,896
Total net assets	100.00	%	$	5,024,934

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 39

DYNAMIC TARGET 2040 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,161,917 and unrealized gains (losses) consists of:

Gross unrealized gains	$	78,315
Gross unrealized losses		(262,194	)
Net unrealized losses	$	(183,879	)

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

40 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2045 FUND

Security name						Shares		Value
Exchange-Traded Funds: 33.86%
Schwab International Equity ETF							17,553	$	485,341
Schwab U.S. Aggregate Bond ETF							924		48,796
Schwab U.S. Broad Market ETF							22,934		1,157,020
Total Exchange-Traded Funds (Cost $1,712,754)									1,691,157
Investment Companies: 64.96%
Affiliated Master Portfolios: 15.42%
Wells Fargo C&B Large Cap Value Portfolio									206,212
Wells Fargo Core Bond Portfolio									58,631
Wells Fargo Large Company Value Portfolio									208,245
Wells Fargo Real Return Portfolio									24,508
Wells Fargo Small Company Growth Portfolio									136,547
Wells Fargo Small Company Value Portfolio									135,787
									769,930
Fixed-Income Funds: 2.25%
Wells Fargo International Bond Fund Class R6 (l)†							2,400		24,429
Wells Fargo Short-Term Bond Fund Institutional Class (l)							5,029		44,052
Wells Fargo Strategic Income Fund Institutional Class (l)							4,884		44,050
									112,531
Equity Funds: 47.29%
Calamos Market Neutral Income Fund Class I							19,119		244,725
Wells Fargo Diversified International Fund Class R6 (l)							51,090		575,277
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							27,405		260,619
Wells Fargo Endeavor Select Fund Institutional Class (l)†							33,574		311,902
Wells Fargo Enterprise Fund Class R6 (l)†							5,165		225,760
Wells Fargo Intrinsic Value Fund Class R6 (l)							17,713		206,005
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							21,347		312,954
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							6,958		224,957
									2,362,199
Total Investment Companies (Cost $3,379,908)									3,244,660
	Yield			Maturity date		Principal
Short-Term Investments: 0.24%
U.S. Treasury Securities: 0.24%
U.S. Treasury Bill (z)#		0.14	%		6-9-2016	$	12,000		12,000
Total Short-Term Investments (Cost $12,000)									12,000

Total investments in securities (Cost $5,104,662) *	99.06	%		4,947,817
Other assets and liabilities, net	0.94			47,060
Total net assets	100.00	%	$	4,994,877

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 41

DYNAMIC TARGET 2045 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,134,118 and unrealized gains (losses) consists of:

Gross unrealized gains	$	78,456
Gross unrealized losses		(264,757	)
Net unrealized losses	$	(186,301	)

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

42 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2050 FUND

Security name						Shares		Value
Exchange-Traded Funds: 33.85%
Schwab International Equity ETF							17,510	$	484,152
Schwab U.S. Aggregate Bond ETF							911		48,110
Schwab U.S. Broad Market ETF							22,879		1,154,246
Total Exchange-Traded Funds (Cost $1,708,103)									1,686,508
Investment Companies: 64.90%
Affiliated Master Portfolios: 15.39%
Wells Fargo C&B Large Cap Value Portfolio									205,801
Wells Fargo Core Bond Portfolio									57,723
Wells Fargo Large Company Value Portfolio									207,750
Wells Fargo Real Return Portfolio									24,045
Wells Fargo Small Company Growth Portfolio									136,006
Wells Fargo Small Company Value Portfolio									135,381
									766,706
Fixed-Income Funds: 2.22%
Wells Fargo International Bond Fund Class R6 (l)†							2,354		23,968
Wells Fargo Short-Term Bond Fund Institutional Class (l)							4,947		43,333
Wells Fargo Strategic Income Fund Institutional Class (l)							4,804		43,333
									110,634
Equity Funds: 47.29%
Calamos Market Neutral Income Fund Class I							19,064		244,023
Wells Fargo Diversified International Fund Class R6 (l)							50,959		573,793
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							27,289		259,515
Wells Fargo Endeavor Select Fund Institutional Class (l)†							33,498		311,200
Wells Fargo Enterprise Fund Class R6 (l)†							5,158		225,436
Wells Fargo Intrinsic Value Fund Class R6 (l)							17,669		205,496
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							21,287		312,073
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							6,945		224,524
									2,356,060
Total Investment Companies (Cost $3,368,585)									3,233,400
	Yield			Maturity date		Principal
Short-Term Investments: 0.24%
U.S. Treasury Securities: 0.24%
U.S. Treasury Bill #(z)		0.14	%		6-9-2016	$	12,000		12,000
Total Short-Term Investments (Cost $12,000)									12,000

Total investments in securities (Cost $5,088,688) *	98.99	%		4,931,908
Other assets and liabilities, net	1.01			50,194
Total net assets	100.00	%	$	4,982,102

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 43

DYNAMIC TARGET 2050 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

# 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 $5,118,490 and unrealized gains (losses) consists of:

Gross unrealized gains	$	78,219
Gross unrealized losses		(264,801	)
Net unrealized losses	$	(186,582	)

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

44 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2055 FUND

Security name						Shares		Value
Exchange-Traded Funds: 33.85%
Schwab International Equity ETF							17,497	$	483,792
Schwab U.S. Aggregate Bond ETF							910		48,057
Schwab U.S. Broad Market ETF							22,862		1,153,388
Total Exchange-Traded Funds (Cost $1,706,943)									1,685,237
Investment Companies: 64.90%
Affiliated Master Portfolios: 15.39%
Wells Fargo C&B Large Cap Value Portfolio									205,664
Wells Fargo Core Bond Portfolio									57,675
Wells Fargo Large Company Value Portfolio									207,571
Wells Fargo Real Return Portfolio									24,024
Wells Fargo Small Company Growth Portfolio									135,893
Wells Fargo Small Company Value Portfolio									135,300
									766,127
Fixed-Income Funds: 2.22%
Wells Fargo International Bond Fund Class R6 (l)†							2,352		23,947
Wells Fargo Short-Term Bond Fund Institutional Class (l)							4,942		43,295
Wells Fargo Strategic Income Fund Institutional Class (l)							4,800		43,297
									110,539
Equity Funds: 47.29%
Calamos Market Neutral Income Fund Class I							19,051		243,856
Wells Fargo Diversified International Fund Class R6 (l)							50,920		573,363
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							27,258		259,224
Wells Fargo Endeavor Select Fund Institutional Class (l)†							33,480		311,031
Wells Fargo Enterprise Fund Class R6 (l)†							5,158		225,452
Wells Fargo Intrinsic Value Fund Class R6 (l)							17,654		205,318
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							21,272		311,852
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							6,941		224,397
									2,354,493
Total Investment Companies (Cost $3,367,032)									3,231,159
	Yield			Maturity date		Principal
Short-Term Investments: 0.24%
U.S. Treasury Securities: 0.24%
U.S. Treasury Bill #(z)		0.14	%		6-9-2016	$	12,000		12,000
Total Short-Term Investments (Cost $12,000)									12,000

Total investments in securities (Cost $5,085,975) *	98.99	%		4,928,396
Other assets and liabilities, net	1.01			50,280
Total net assets	100.00	%	$	4,978,676

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

# 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 $5,115,251 and unrealized gains (losses) consists of:

Gross unrealized gains	$	78,155
Gross unrealized losses		(265,010	)
Net unrealized losses	$	(186,855	)

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

Portfolio of investments—May 31, 2016 Wells Fargo Dynamic Target Date Funds 45

DYNAMIC TARGET 2060 FUND

Security name						Shares		Value
Exchange-Traded Funds: 33.85%
Schwab International Equity ETF							17,514	$	484,262
Schwab U.S. Aggregate Bond ETF							912		48,163
Schwab U.S. Broad Market ETF							22,884		1,154,498
Total Exchange-Traded Funds (Cost $1,708,436)									1,686,923
Investment Companies: 64.90%
Affiliated Master Portfolios: 15.39%
Wells Fargo C&B Large Cap Value Portfolio									205,825
Wells Fargo Core Bond Portfolio									57,794
Wells Fargo Large Company Value Portfolio									207,761
Wells Fargo Real Return Portfolio									24,073
Wells Fargo Small Company Growth Portfolio									136,041
Wells Fargo Small Company Value Portfolio									135,400
									766,894
Fixed-Income Funds: 2.22%
Wells Fargo International Bond Fund Class R6 (l)†							2,358		24,007
Wells Fargo Short-Term Bond Fund Institutional Class (l)							4,955		43,405
Wells Fargo Strategic Income Fund Institutional Class (l)							4,810		43,386
									110,798
Equity Funds: 47.29%
Calamos Market Neutral Income Fund Class I							19,070		244,090
Wells Fargo Diversified International Fund Class R6 (l)							50,970		573,927
Wells Fargo Emerging Markets Equity Income Fund Class R6 (l)							27,299		259,611
Wells Fargo Endeavor Select Fund Institutional Class (l)†							33,509		311,295
Wells Fargo Enterprise Fund Class R6 (l)†							5,158		225,440
Wells Fargo Intrinsic Value Fund Class R6 (l)							17,674		205,552
Wells Fargo Premier Large Company Growth Fund Class R6 (l)†							21,293		312,157
Wells Fargo Special Mid Cap Value Fund Class R6 (l)							6,946		224,549
									2,356,621
Total Investment Companies (Cost $3,370,370)									3,234,313
	Yield			Maturity date		Principal
Short-Term Investments: 0.24%
U.S. Treasury Securities: 0.24%
U.S. Treasury Bill #(z)		0.14	%		6-9-2016	$	12,000		12,000
Total Short-Term Investments (Cost $12,000)									12,000

Total investments in securities (Cost $5,090,806) *	98.99	%		4,933,236
Other assets and liabilities, net	1.01			50,219
Total net assets	100.00	%	$	4,983,455

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

46 Wells Fargo Dynamic Target Date Funds Portfolio of investments—May 31, 2016

DYNAMIC TARGET 2060 FUND

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

† Non-income-earning security

# 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 $5,119,539 and unrealized gains (losses) consists of:

Gross unrealized gains	$	78,275
Gross unrealized losses		(264,578	)
Net unrealized losses	$	(186,303	)

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

This page is intentionally left blank.

48 Wells Fargo Dynamic Target Date Funds Statements of assets and liabilities—May 31, 2016

	Dynamic Target Today Fund			Dynamic Target 2015 Fund
Assets
Investments
In affiliated Underlying Funds, at value (see cost below)	$	2,103,752		$	2,169,499
In unaffiliated Underlying Funds and securities, at value (see cost below)		1,704,713			1,822,772
In affiliated Master Portfolios, at value (see cost below)		1,202,910			1,090,974
Total investments, at value (see cost below)		5,011,375			5,083,245
Cash		48			19
Receivable for investments sold		196			257
Receivable for Fund shares sold		0			0
Receivable for dividends		658			488
Receivable for daily variation margin on open futures contracts		31			31
Receivable from manager		18,013			17,551
Prepaid expenses and other assets		50,981			50,987
Total assets		5,081,302			5,152,578
Liabilities
Payable for investments purchased		876			756
Payable for Fund shares redeemed		0			1,250
Distribution fees payable		85			84
Administration fees payable		178			193
Shareholder report expenses payable		10,167			10,167
Custodian and accounting fees payable		10,436			10,006
Professional fees payable		1,712			1,712
Total liabilities		23,454			24,168
Total net assets	$	5,057,848		$	5,128,410
NET ASSETS CONSIST OF
Paid-in capital	$	5,018,954		$	5,114,710
Undistributed net investment income		29,433			26,353
Accumulated net realized gains on investments		29,689			40,942
Net unrealized losses on investments		(20,228	)		(53,595	)
Total net assets	$	5,057,848		$	5,128,410
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	100,950		$	198,702
Shares outstanding – Class A1		10,035			19,881
Net asset value per share – Class A		$10.06			$9.99
Maximum offering price per share – Class A2		$10.67			$10.60
Net assets – Class C	$	100,572		$	100,020
Shares outstanding – Class C1		10,028			10,037
Net asset value per share – Class C		$10.03			$9.97
Net assets – Class R	$	100,824		$	100,272
Shares outstanding – Class R1		10,033			10,042
Net asset value per share – Class R		$10.05			$9.99
Net assets – Class R4	$	101,107		$	100,551
Share outstanding – Class R41		10,037			10,047
Net asset value per share – Class R4		$10.07			$10.01
Net assets – Class R6	$	4,654,395		$	4,628,865
Shares outstanding – Class R61		461,784			462,212
Net asset value per share – Class R6		$10.08			$10.01
Investments in affiliated Underlying Funds, at cost	$	2,177,117		$	2,280,043
Investments in unaffiliated Underlying Funds and securities, at cost	$	1,695,088		$	1,818,467
Investments in affiliated Master Portfolios, at cost	$	1,158,767		$	1,037,699
Total investments, at cost	$	5,030,972		$	5,136,209

¹  Each 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.

Statements of assets and liabilities—May 31, 2016 Wells Fargo Dynamic Target Date Funds 49

Dynamic Target 2020 Fund			Dynamic Target 2025 Fund			Dynamic Target 2030 Fund			Dynamic Target 2035 Fund			Dynamic Target 2040 Fund			Dynamic Target 2045 Fund			Dynamic Target 2050 Fund
$	2,166,931		$	2,217,169		$	2,232,535		$	2,227,403		$	2,249,044		$	2,230,005		$	2,222,671
	1,836,307			1,888,624			1,917,868			1,903,046			1,943,179			1,947,882			1,942,531
	999,894			941,930			869,784			817,799			785,815			769,930			766,706
	5,003,132			5,047,723			5,020,187			4,948,248			4,978,038			4,947,817			4,931,908
	157			253			215			217			26,488			148			143
	78			28			28			0			28			55			55
	0			0			0			50			0			0			0
	375			282			184			121			73			59			58
	31			31			31			31			31			31			31
	17,025			19,225			19,258			19,267			17,416			17,803			18,448
	51,127			50,216			50,218			50,231			49,766			50,627			50,435
	5,071,925			5,117,758			5,090,121			5,018,165			5,071,840			5,016,540			5,001,078
	630			566			439			356			26,609			242			282
	0			0			0			0			0			0			0
	84			83			83			83			82			82			82
	179			190			187			177			178			177			174
	10,168			10,231			10,105			10,106			10,205			10,169			8,138
	9,693			9,337			9,282			9,413			9,410			9,281			9,448
	674			904			904			903			422			1,712			852
	21,428			21,311			21,000			21,038			46,906			21,663			18,976
$	5,050,497		$	5,096,447		$	5,069,121		$	4,997,127		$	5,024,934		$	4,994,877		$	4,982,102
$	5,044,282		$	5,108,469		$	5,101,326		$	5,050,847		$	5,089,633		$	5,054,259		$	5,041,580
	24,266			22,478			20,699			19,497			18,542			18,377			18,348
	73,110			69,928			80,579			73,891			69,262			79,717			79,585
	(91,161	)		(104,428	)		(133,483	)		(147,108	)		(152,503	)		(157,476	)		(157,411	)
$	5,050,497		$	5,096,447		$	5,069,121		$	4,997,127		$	5,024,934		$	4,994,877		$	4,982,102
$	118,907		$	187,873		$	173,435		$	119,179		$	157,051		$	121,180		$	108,422
	11,897			18,894			17,495			12,066			15,947			12,285			10,993
	$9.99			$9.94			$9.91			$9.88			$9.85			$9.86			$9.86
	$10.60			$10.55			$10.51			$10.48			$10.45			$10.46			$10.46
$	100,058		$	99,591		$	99,329		$	98,969		$	98,765		$	98,883		$	98,883
	10,041			10,046			10,050			10,053			10,056			10,056			10,056
	$9.96			$9.91			$9.88			$9.84			$9.82			$9.83			$9.83
$	100,310		$	99,844		$	99,584		$	99,223		$	99,018		$	99,136		$	99,135
	10,046			10,051			10,055			10,058			10,061			10,061			10,061
	$9.99			$9.93			$9.90			$9.87			$9.84			$9.85			$9.85
$	100,590		$	100,120		$	99,856		$	99,495		$	99,289		$	99,408		$	99,408
	10,051			10,056			10,060			10,063			10,065			10,066			10,066
	$10.01			$9.96			$9.93			$9.89			$9.86			$9.88			$9.88
$	4,630,632		$	4,609,019		$	4,596,917		$	4,580,261		$	4,570,811		$	4,576,270		$	4,576,254
	462,410			462,646			462,826			462,960			463,073			463,098			463,100
	$10.01			$9.96			$9.93			$9.89			$9.87			$9.88			$9.88
$	2,308,733		$	2,374,910		$	2,415,514		$	2,421,899		$	2,449,929		$	2,435,333		$	2,427,755
$	1,842,449		$	1,897,707		$	1,934,766		$	1,924,729		$	1,965,704		$	1,971,494		$	1,966,123
$	942,480		$	878,903		$	802,759		$	748,097		$	714,277		$	697,835		$	694,810
$	5,093,662		$	5,151,520		$	5,153,039		$	5,094,725		$	5,129,910		$	5,104,662		$	5,088,688

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

50 Wells Fargo Dynamic Target Date Funds Statements of assets and liabilities—May 31, 2016

	Dynamic Target 2055 Fund			Dynamic Target 2060 Fund
Assets
Investments
In affiliated Underlying Funds, at value (see cost below)	$	2,221,176		$	2,223,329
In unaffiliated Underlying Funds and securities, at value (see cost below)		1,941,093			1,943,013
In affiliated Master Portfolios, at value (see cost below)		766,127			766,894
Total investments, at value (see cost below)		4,928,396			4,933,236
Cash		149			110
Receivable for investments sold		55			106
Receivable for dividends		58			58
Receivable for daily variation margin on open futures contracts		31			31
Receivable from manager		17,851			18,391
Prepaid expenses and other assets		51,056			50,393
Total assets		4,997,596			5,002,325
Liabilities
Payable for investments purchased		279			257
Distribution fees payable		82			83
Administration fees payable		173			174
Shareholder report expenses payable		8,138			8,158
Custodian and accounting fees payable		9,396			9,346
Professional fees payable		852			852
Total liabilities		18,920			18,870
Total net assets	$	4,978,676		$	4,983,455
NET ASSETS CONSIST OF
Paid-in capital	$	5,035,727		$	5,034,536
Undistributed net investment income		18,338			18,379
Accumulated net realized gains on investments		82,821			88,741
Net unrealized losses on investments		(158,210	)		(158,201	)
Total net assets	$	4,978,676		$	4,983,455
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	102,557		$	101,245
Shares outstanding – Class A1		10,393			10,247
Net asset value per share – Class A		$9.87			$9.88
Maximum offering price per share – Class A2		$10.47			$10.48
Net assets – Class C	$	98,932		$	99,056
Shares outstanding – Class C1		10,056			10,056
Net asset value per share – Class C		$9.84			$9.85
Net assets – Class R	$	99,184		$	99,308
Shares outstanding – Class R1		10,061			10,061
Net asset value per share – Class R		$9.86			$9.87
Net assets – Class R4	$	99,458		$	99,582
Share outstanding – Class R41		10,066			10,066
Net asset value per share – Class R4		$9.88			$9.89
Net assets – Class R6	$	4,578,545		$	4,584,264
Shares outstanding – Class R61		463,100			463,099
Net asset value per share – Class R6		$9.89			$9.90
Investments in affiliated Underlying Funds, at cost	$	2,426,880		$	2,429,277
Investments in unaffiliated Underlying Funds and securities, at cost	$	1,964,796		$	1,966,574
Investments in affiliated Master Portfolios, at cost	$	694,299		$	694,955
Total investments, at cost	$	5,085,975		$	5,090,806

¹  Each 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.

This page is intentionally left blank.

52 Wells Fargo Dynamic Target Date Funds Statements of operations—year ended May 31, 2016¹

	Dynamic Target Today Fund			Dynamic Target 2015 Fund
Investment income
Dividends from unaffiliated Underlying Funds	$	18,908		$	20,803
Dividends from affiliated Underlying Funds		17,275			16,399
Interest allocated from affiliated Master Portfolios		8,429			6,161
Dividends allocated from affiliated Master Portfolios*		2,951			3,879
Interest		19			20
Securities lending income allocated from affiliated Master Portfolios		181			240
Affiliated income allocated from affiliated Master Portfolios		95			82
Expenses allocated from affiliated Master Portfolios		(2,880	)		(2,826	)
Waivers allocated from affiliated Master Portfolios		203			157
Total investment income		45,181			44,915
Expenses
Management fee		4,916			4,927
Administration fees
Class A		103			161
Class C		103			102
Class R		103			102
Class R4		40			39
Class R6		678			672
Shareholder servicing fees
Class A		123			192
Class C		123			121
Class R		123			122
Class R4		49			49
Distribution fees
Class C		368			364
Class R		123			122
Custody and accounting fees		12,992			12,991
Professional fees		24,943			24,943
Registration fees		39,121			38,821
Shareholder report expenses		23,977			23,978
Trustees’ fees and expenses		8,251			8,251
Other fees and expenses		2,732			3,005
Total expenses		118,868			118,962
Less: Fee waivers and/or expense reimbursements		(116,004	)		(116,091	)
Net expenses		2,864			2,871
Net investment income		42,317			42,044
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated Underlying Funds		(246	)		(8,424	)
Affiliated Underlying Funds		(4,088	)		(1,473	)
Futures transactions		(6,695	)		(949	)
Capital gain distributions from unaffiliated Underlying Funds		3,701			3,693
Capital gain distributions from affiliated Underlying Funds		68,288			96,727
Securities transactions allocated from affiliated Master Portfolios		(25,201	)		(40,860	)
Net realized gains on investments		35,759			48,714
Net change in unrealized gains (losses) on:
Unaffiliated Underlying Funds		9,625			4,305
Affiliated Underlying Funds		(73,365	)		(110,544	)
Futures transactions		(631	)		(631	)
Securities transactions allocated from affiliated Master Portfolios		44,143			53,275
Net change in unrealized gains (losses) on investments		(20,228	)		(53,595	)
Net realized and unrealized gains (losses) on investments		15,531			(4,881	)
Net increase (decrease) in net assets resulting from operations	$	57,848		$	37,163
* Net of foreign dividend withholding taxes allocated from affiliated Master Portfolios in the amount of		$39			$33

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

Statements of operations—year ended May 31, 2016¹ Wells Fargo Dynamic Target Date Funds 53

Dynamic Target 2020 Fund			Dynamic Target 2025 Fund			Dynamic Target 2030 Fund			Dynamic Target 2035 Fund			Dynamic Target 2040 Fund			Dynamic Target 2045 Fund			Dynamic Target 2050 Fund
$	21,288		$	22,223		$	22,755		$	22,979		$	23,558		$	23,639		$	23,579
	15,810			15,406			14,943			14,696			14,388			14,345			14,287
	4,733			3,529			2,291			1,514			913			749			741
	4,375			4,903			5,365			5,660			5,865			5,923			5,908
	31			32			36			43			41			40			39
	271			304			334			351			365			369			368
	73			67			60			55			51			50			50
	(2,761	)		(2,750	)		(2,707	)		(2,678	)		(2,651	)		(2,644	)		(2,636	)
	127			103			78			63			50			47			47
	43,947			43,817			43,155			42,683			42,580			42,518			42,383
	4,864			4,880			4,843			4,808			4,800			4,796			4,783
	110			154			135			119			121			117			104
	102			101			101			100			100			100			100
	102			101			101			100			100			100			100
	39			39			38			38			38			38			38
	670			667			664			661			660			660			660
	131			183			160			141			144			140			124
	121			120			120			119			119			119			119
	121			121			120			120			119			119			119
	49			48			48			48			48			48			48
	363			361			360			358			357			357			357
	121			121			120			120			119			119			119
	12,990			12,991			12,990			12,990			12,990			12,990			13,139
	23,904			25,634			25,634			25,634			24,853			24,943			22,082
	38,621			39,175			39,175			39,175			40,240			39,121			39,175
	23,978			24,041			23,915			23,915			24,014			23,977			23,966
	8,251			6,976			6,976			6,976			6,841			8,251			8,743
	3,082			3,201			3,201			3,201			3,032			3,082			2,732
	117,619			118,914			118,701			118,623			118,695			119,077			116,508
	(114,681	)		(115,772	)		(115,402	)		(115,369	)		(115,337	)		(115,772	)		(113,238	)
	2,938			3,142			3,299			3,254			3,358			3,305			3,270
	41,009			40,675			39,856			39,429			39,222			39,213			39,113
	(2,115	)		(2,583	)		(4,823	)		(6,604	)		(7,667	)		(6,911	)		(7,069	)
	(9,454	)		(14,797	)		(18,596	)		(25,491	)		(30,289	)		(28,886	)		(29,036	)
	26,466			22,407			33,447			31,462			29,800			37,278			37,269
	3,685			3,671			3,664			3,664			3,646			3,658			3,646
	114,607			130,735			146,900			157,679			164,908			166,707			166,707
	(51,238	)		(59,698	)		(69,235	)		(75,391	)		(79,282	)		(80,166	)		(79,970	)
	81,951			79,735			91,357			85,319			81,116			91,680			91,547
	(6,142	)		(9,083	)		(16,898	)		(21,684	)		(22,526	)		(23,613	)		(23,592	)
	(141,802	)		(157,741	)		(182,979	)		(194,496	)		(200,885	)		(205,327	)		(205,084	)
	(631	)		(631	)		(631	)		(631	)		(631	)		(631	)		(631	)
	57,414			63,027			67,025			69,703			71,539			72,095			71,896
	(91,161	)		(104,428	)		(133,483	)		(147,108	)		(152,503	)		(157,476	)		(157,411	)
	(9,210	)		(24,693	)		(42,126	)		(61,789	)		(71,387	)		(65,796	)		(65,864	)
$	31,799		$	15,982		$	(2,270	)	$	(22,360	)	$	(32,165	)	$	(26,583	)	$	(26,751	)
	$29			$26			$23			$21			$19			$19			$19

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

54 Wells Fargo Dynamic Target Date Funds Statements of operations—year ended May 31, 2016¹

	Dynamic Target 2055 Fund			Dynamic Target 2060 Fund
Investment income
Dividends from unaffiliated Underlying Funds	$	23,579		$	23,580
Dividends from affiliated Underlying Funds		14,287			14,306
Interest allocated from affiliated Master Portfolios		741			741
Dividends allocated from affiliated Master Portfolios*		5,899			5,913
Interest		43			39
Securities lending income allocated from affiliated Master Portfolios		367			368
Affiliated income allocated from affiliated Master Portfolios		50			50
Expenses allocated from affiliated Master Portfolios		(2,635	)		(2,637	)
Waivers allocated from affiliated Master Portfolios		47			47
Total investment income		42,378			42,407
Expenses
Management fee		4,783			4,785
Administration fees
Class A		102			101
Class C		100			100
Class R		100			100
Class R4		38			38
Class R6		660			660
Shareholder servicing fees
Class A		122			120
Class C		119			119
Class R		119			119
Class R4		48			48
Distribution fees
Class C		358			358
Class R		119			119
Custody and accounting fees		13,140			12,989
Professional fees		22,082			22,082
Registration fees		38,588			39,130
Shareholder report expenses		23,966			23,966
Trustees’ fees and expenses		8,743			8,743
Other fees and expenses		2,701			2,732
Total expenses		115,888			116,309
Less: Fee waivers and/or expense reimbursements		(112,613	)		(113,049	)
Net expenses		3,275			3,260
Net investment income		39,103			39,147
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated Underlying Funds		(7,134	)		(6,737	)
Affiliated Underlying Funds		(28,556	)		(28,228	)
Futures transactions		40,080			45,280
Capital gain distributions from unaffiliated Underlying Funds		3,646			3,647
Capital gain distributions from affiliated Underlying Funds		166,707			166,707
Securities transactions allocated from affiliated Master Portfolios		(79,960	)		(79,968	)
Net realized gains on investments		94,783			100,701
Net change in unrealized gains (losses) on:
Unaffiliated Underlying Funds		(23,703	)		(23,561	)
Affiliated Underlying Funds		(205,704	)		(205,948	)
Futures transactions		(631	)		(631	)
Securities transactions allocated from affiliated Master Portfolios		71,828			71,939
Net change in unrealized gains (losses) on investments		(158,210	)		(158,201	)
Net realized and unrealized gains (losses) on investments		(63,427	)		(57,500	)
Net increase (decrease) in net assets resulting from operations	$	(24,324	)	$	(18,353	)
* Net of foreign dividend withholding taxes allocated from affiliated Master Portfolios in the amount of		$19			$19

¹ For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

Statements of changes in net assets Wells Fargo Dynamic Target Date Funds 55

	Dynamic Target Today Fund
	Year ended May 31, 20161
Operations
Net investment income			$	42,317
Net realized gains on investments				35,759
Net change in unrealized gains (losses) on investments				(20,228	)
Net increase in net assets resulting from operations				57,848
Distributions to shareholders from
Net investment income
Class A				(341	)
Class C				(274	)
Class R				(321	)
Class R4				(368	)
Class R6				(17,595	)
Total distributions to shareholders				(18,899	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		10,000		100,000
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,000,000
Reinvestment of distributions
Class A		35		341
Class C		28		274
Class R		33		321
Class R4		37		368
Class R6		1,784		17,595
				18,899
Net increase in net assets resulting from capital share transactions				5,018,899
Total increase in net assets				5,057,848
Net assets
Beginning of period				0
End of period			$	5,057,848
Undistributed net investment income			$	29,433

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

56 Wells Fargo Dynamic Target Date Funds Statements of changes in net assets

	Dynamic Target 2015 Fund
	Year ended May 31, 20161
Operations
Net investment income				$	42,044
Net realized gains on investments					48,714
Net change in unrealized gains (losses) on investments					(53,595	)
Net increase in net assets resulting from operations					37,163
Distributions to shareholders from
Net investment income
Class A					(429	)
Class C					(361	)
Class R					(409	)
Class R4					(457	)
Class R6					(21,726	)
Total distributions to shareholders					(23,382	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		20,347			196,247
Class C		10,000			100,000
Class R		10,000			100,000
Class R4		10,000			100,000
Class R6		460,000			4,600,000
					5,096,247
Reinvestment of distributions
Class A		44			429
Class C		37			361
Class R		42			409
Class R4		47			457
Class R6		2,212			21,726
					23,382
Payment for shares redeemed
Class A		(510	)		(5,000	)
Net increase in net assets resulting from capital share transactions					5,114,629
Total increase in net assets					5,128,410
Net assets
Beginning of period					0
End of period				$	5,128,410
Undistributed net investment income				$	26,353

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

Statements of changes in net assets Wells Fargo Dynamic Target Date Funds 57

	Dynamic Target 2020 Fund
	Year ended May 31, 20161
Operations
Net investment income				$	41,009
Net realized gains on investments					81,951
Net change in unrealized gains (losses) on investments					(91,161	)
Net increase in net assets resulting from operations					31,799
Distributions to shareholders from
Net investment income
Class A					(520	)
Class C					(402	)
Class R					(451	)
Class R4					(499	)
Class R6					(23,616	)
Total distributions to shareholders					(25,488	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		13,233			131,778
Class C		10,000			100,000
Class R		10,000			100,000
Class R4		10,000			100,000
Class R6		460,000			4,600,000
					5,031,778
Reinvestment of distributions
Class A		53			520
Class C		41			402
Class R		46			451
Class R4		51			499
Class R6		2,410			23,616
					25,488
Payment for shares redeemed
Class A		(1,389	)		(13,080	)
Net increase in net assets resulting from capital share transactions					5,044,186
Total increase in net assets					5,050,497
Net assets
Beginning of period					0
End of period				$	5,050,497
Undistributed net investment income				$	24,266

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

58 Wells Fargo Dynamic Target Date Funds Statements of changes in net assets

	Dynamic Target 2025 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	40,675
Net realized gains on investments				79,735
Net change in unrealized gains (losses) on investments				(104,428	)
Net increase in net assets resulting from operations				15,982
Distributions to shareholders from
Net investment income
Class A				(520	)
Class C				(451	)
Class R				(500	)
Class R4				(548	)
Class R6				(25,875	)
Total distributions to shareholders				(27,894	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		18,841		180,465
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,080,465
Reinvestment of distributions
Class A		53		520
Class C		46		451
Class R		51		500
Class R4		56		548
Class R6		2,646		25,875
				27,894
Net increase in net assets resulting from capital share transactions				5,108,359
Total increase in net assets				5,096,447
Net assets
Beginning of period				0
End of period			$	5,096,447
Undistributed net investment income			$	22,478

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

Statements of changes in net assets Wells Fargo Dynamic Target Date Funds 59

	Dynamic Target 2030 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	39,856
Net realized gains on investments				91,357
Net change in unrealized gains (losses) on investments				(133,483	)
Net decrease in net assets resulting from operations				(2,270	)
Distributions to shareholders from
Net investment income
Class A				(584	)
Class C				(490	)
Class R				(536	)
Class R4				(586	)
Class R6				(27,614	)
Total distributions to shareholders				(29,810	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		17,435		171,391
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,071,391
Reinvestment of distributions
Class A		60		584
Class C		50		490
Class R		55		536
Class R4		60		586
Class R6		2,826		27,614
				29,810
Net increase in net assets resulting from capital share transactions				5,101,201
Total increase in net assets				5,069,121
Net assets
Beginning of period				0
End of period			$	5,069,121
Undistributed net investment income			$	20,699

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

60 Wells Fargo Dynamic Target Date Funds Statements of changes in net assets

	Dynamic Target 2035 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	39,429
Net realized gains on investments				85,319
Net change in unrealized gains (losses) on investments				(147,108	)
Net decrease in net assets resulting from operations				(22,360	)
Distributions to shareholders from
Net investment income
Class A				(676	)
Class C				(517	)
Class R				(564	)
Class R4				(613	)
Class R6				(28,856	)
Total distributions to shareholders				(31,226	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		11,997		119,487
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,019,487
Reinvestment of distributions
Class A		69		676
Class C		53		517
Class R		58		564
Class R4		63		613
Class R6		2,960		28,856
				31,226
Net increase in net assets resulting from capital share transactions				5,050,713
Total increase in net assets				4,997,127
Net assets
Beginning of period				0
End of period			$	4,997,127
Undistributed net investment income			$	19,497

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

Statements of changes in net assets Wells Fargo Dynamic Target Date Funds 61

	Dynamic Target 2040 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	39,222
Net realized gains on investments				81,116
Net change in unrealized gains (losses) on investments				(152,503	)
Net decrease in net assets resulting from operations				(32,165	)
Distributions to shareholders from
Net investment income
Class A				(695	)
Class C				(544	)
Class R				(589	)
Class R4				(637	)
Class R6				(29,928	)
Total distributions to shareholders				(32,393	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		15,876		157,099
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,057,099
Reinvestment of distributions
Class A		71		695
Class C		56		544
Class R		61		589
Class R4		65		637
Class R6		3,073		29,928
				32,393
Net increase in net assets resulting from capital share transactions				5,089,492
Total increase in net assets				5,024,934
Net assets
Beginning of period				0
End of period			$	5,024,934
Undistributed net investment income			$	18,542

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

62 Wells Fargo Dynamic Target Date Funds Statements of changes in net assets

	Dynamic Target 2045 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	39,213
Net realized gains on investments				91,680
Net change in unrealized gains (losses) on investments				(157,476	)
Net decrease in net assets resulting from operations				(26,583	)
Distributions to shareholders from
Net investment income
Class A				(695	)
Class C				(549	)
Class R				(595	)
Class R4				(642	)
Class R6				(30,176	)
Total distributions to shareholders				(32,657	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		12,214		121,460
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,021,460
Reinvestment of distributions
Class A		71		695
Class C		56		549
Class R		61		595
Class R4		66		642
Class R6		3,098		30,176
				32,657
Net increase in net assets resulting from capital share transactions				5,054,117
Total increase in net assets				4,994,877
Net assets
Beginning of period				0
End of period			$	4,994,877
Undistributed net investment income			$	18,377

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

Statements of changes in net assets Wells Fargo Dynamic Target Date Funds 63

	Dynamic Target 2050 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	39,113
Net realized gains on investments				91,547
Net change in unrealized gains (losses) on investments				(157,411	)
Net decrease in net assets resulting from operations				(26,751	)
Distributions to shareholders from
Net investment income
Class A				(614	)
Class C				(546	)
Class R				(593	)
Class R4				(642	)
Class R6				(30,190	)
Total distributions to shareholders				(32,585	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		10,930		108,853
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,008,853
Reinvestment of distributions
Class A		63		614
Class C		56		546
Class R		61		593
Class R4		66		642
Class R6		3,100		30,190
				32,585
Net increase in net assets resulting from capital share transactions				5,041,438
Total increase in net assets				4,982,102
Net assets
Beginning of period				0
End of period			$	4,982,102
Undistributed net investment income			$	18,348

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

64 Wells Fargo Dynamic Target Date Funds Statements of changes in net assets

	Dynamic Target 2055 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	39,103
Net realized gains on investments				94,783
Net change in unrealized gains (losses) on investments				(158,210	)
Net decrease in net assets resulting from operations				(24,324	)
Distributions to shareholders from
Net investment income
Class A				(614	)
Class C				(546	)
Class R				(593	)
Class R4				(642	)
Class R6				(30,190	)
Total distributions to shareholders				(32,585	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		10,330		103,000
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,003,000
Reinvestment of distributions
Class A		63		614
Class C		56		546
Class R		61		593
Class R4		66		642
Class R6		3,100		30,190
				32,585
Net increase in net assets resulting from capital share transactions				5,035,585
Total increase in net assets				4,978,676
Net assets
Beginning of period				0
End of period			$	4,978,676
Undistributed net investment income			$	18,338

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

Statements of changes in net assets Wells Fargo Dynamic Target Date Funds 65

	Dynamic Target 2060 Fund
	Year ended May 31, 20161
Operations
Net investment income			$	39,147
Net realized gains on investments				100,701
Net change in unrealized gains (losses) on investments				(158,201	)
Net decrease in net assets resulting from operations				(18,353	)
Distributions to shareholders from
Net investment income
Class A				(615	)
Class C				(549	)
Class R				(595	)
Class R4				(642	)
Class R6				(30,185	)
Total distributions to shareholders				(32,586	)
Capital share transactions		Shares
Proceeds from shares sold
Class A		10,184		101,808
Class C		10,000		100,000
Class R		10,000		100,000
Class R4		10,000		100,000
Class R6		460,000		4,600,000
				5,001,808
Reinvestment of distributions
Class A		63		615
Class C		56		549
Class R		61		595
Class R4		66		642
Class R6		3,099		30,185
				32,586
Net increase in net assets resulting from capital share transactions				5,034,394
Total increase in net assets				4,983,455
Net assets
Beginning of period				0
End of period			$	4,983,455
Undistributed net investment income			$	18,379

¹  For the period from November 30, 2015 (commencement of operations) to May 31, 2016

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

66 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target Today Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments		Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		0.03		(0.03	)	$	10.06
Class C
Year ended May 31, 20163	$	10.00		0.03		0.03		(0.03	)	$	10.03
Class R
Year ended May 31, 20163	$	10.00		0.05		0.03		(0.03	)	$	10.05
Class R4
Year ended May 31, 20163	$	10.00		0.08		0.03		(0.04	)	$	10.07
Class R6
Year ended May 31, 20163	$	10.00		0.09		0.03		(0.04	)	$	10.08

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.11	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.11	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 67

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.31	%		5.22	%		0.53	%		0.95	%		66	%	$	101
	0.56	%		5.97	%		1.28	%		0.58	%		66	%	$	101
	1.06	%		5.47	%		0.77	%		0.83	%		66	%	$	101
	1.62	%		4.94	%		0.22	%		1.08	%		66	%	$	101
	1.77	%		4.79	%		0.07	%		1.19	%		66	%	$	4,654

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

68 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2015 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.07		(0.04	)		(0.04	)	$	9.99
Class C
Year ended May 31, 20163	$	10.00		0.03		(0.02	)		(0.04	)	$	9.97
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.02	)		(0.04	)	$	9.99
Class R4
Year ended May 31, 20163	$	10.00		0.08		(0.02	)		(0.05	)	$	10.01
Class R6
Year ended May 31, 20163	$	10.00		0.09		(0.03	)		(0.05	)	$	10.01

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.12	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 69

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.16	%		5.21	%		0.45	%		0.34	%		38	%	$	199
	0.56	%		5.96	%		1.28	%		0.07	%		38	%	$	100
	1.06	%		5.46	%		0.77	%		0.32	%		38	%	$	100
	1.61	%		4.93	%		0.22	%		0.57	%		38	%	$	101
	1.77	%		4.78	%		0.06	%		0.58	%		38	%	$	4,629

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

70 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2020 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.03	)		(0.04	)	$	9.99
Class C
Year ended May 31, 20163	$	10.00		0.03		(0.03	)		(0.04	)	$	9.96
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.01	)		(0.05	)	$	9.99
Class R4
Year ended May 31, 20163	$	10.00		0.08		(0.02	)		(0.05	)	$	10.01
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.02	)		(0.05	)	$	10.01

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 71

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.33	%		5.21	%		0.54	%		0.35	%		38	%	$	119
	0.53	%		5.97	%		1.29	%		0.01	%		38	%	$	100
	1.03	%		5.47	%		0.77	%		0.36	%		38	%	$	100
	1.59	%		4.94	%		0.23	%		0.61	%		38	%	$	101
	1.74	%		4.79	%		0.07	%		0.62	%		38	%	$	4,631

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

72 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2025 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.07		(0.08	)		(0.05	)	$	9.94
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.06	)		(0.05	)	$	9.91
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.07	)		(0.05	)	$	9.93
Class R4
Year ended May 31, 20163	$	10.00		0.08		(0.07	)		(0.05	)	$	9.96
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.06	)		(0.06	)	$	9.96

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.12	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 73

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.09	%		5.25	%		0.46	%		(0.07	)%		38	%	$	188
	0.52	%		6.00	%		1.30	%		(0.44	)%		38	%	$	100
	1.02	%		5.50	%		0.78	%		(0.19	)%		38	%	$	100
	1.58	%		4.97	%		0.23	%		0.16	%		38	%	$	100
	1.73	%		4.82	%		0.08	%		0.17	%		38	%	$	4,609

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

74 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2030 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.10	)		(0.05	)	$	9.91
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.09	)		(0.05	)	$	9.88
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.10	)		(0.05	)	$	9.90
Class R4
Year ended May 31, 20163	$	10.00		0.07		(0.08	)		(0.06	)	$	9.93
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.09	)		(0.06	)	$	9.93

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 75

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.19	%		5.29	%		0.45	%		(0.34	)%		22	%	$	173
	0.49	%		6.03	%		1.30	%		(0.70	)%		22	%	$	99
	1.00	%		5.53	%		0.79	%		(0.46	)%		22	%	$	100
	1.55	%		5.00	%		0.24	%		(0.10	)%		22	%	$	100
	1.70	%		4.85	%		0.09	%		(0.09	)%		22	%	$	4,597

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

76 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2035 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.12	)		(0.06	)	$	9.88
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.13	)		(0.05	)	$	9.84
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.12	)		(0.06	)	$	9.87
Class R4
Year ended May 31, 20163	$	10.00		0.07		(0.12	)		(0.06	)	$	9.89
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.13	)		(0.06	)	$	9.89

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.12	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 77

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.24	%		5.32	%		0.55	%		(0.62	)%		19	%	$	119
	0.48	%		6.06	%		1.30	%		(1.08	)%		19	%	$	99
	0.99	%		5.57	%		0.79	%		(0.73	)%		19	%	$	99
	1.54	%		5.03	%		0.24	%		(0.48	)%		19	%	$	99
	1.69	%		4.88	%		0.08	%		(0.46	)%		19	%	$	4,580

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

78 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2040 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.15	)		(0.06	)	$	9.85
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.15	)		(0.05	)	$	9.82
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.15	)		(0.06	)	$	9.84
Class R4
Year ended May 31, 20163	$	10.00		0.07		(0.15	)		(0.06	)	$	9.86
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.14	)		(0.07	)	$	9.87

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 79

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.22	%		5.33	%		0.53	%		(0.90	)%		15	%	$	157
	0.47	%		6.07	%		1.30	%		(1.25	)%		15	%	$	99
	0.99	%		5.58	%		0.80	%		(1.00	)%		15	%	$	99
	1.53	%		5.04	%		0.24	%		(0.76	)%		15	%	$	99
	1.69	%		4.90	%		0.09	%		(0.64	)%		15	%	$	4,571

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

80 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2045 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.14	)		(0.06	)	$	9.86
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.14	)		(0.05	)	$	9.83
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.14	)		(0.06	)	$	9.85
Class R4
Year ended May 31, 20163	$	10.00		0.07		(0.13	)		(0.06	)	$	9.88
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.13	)		(0.07	)	$	9.88

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 81

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.23	%		5.36	%		0.53	%		(0.79	)%		14	%	$	121
	0.48	%		6.10	%		1.30	%		(1.15	)%		14	%	$	99
	0.99	%		5.60	%		0.80	%		(0.90	)%		14	%	$	99
	1.54	%		5.07	%		0.24	%		(0.55	)%		14	%	$	99
	1.69	%		4.92	%		0.09	%		(0.53	)%		14	%	$	4,576

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

82 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2050 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.14	)		(0.06	)	$	9.86
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.14	)		(0.05	)	$	9.83
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.14	)		(0.06	)	$	9.85
Class R4
Year ended May 31, 20163	$	10.00		0.07		(0.13	)		(0.06	)	$	9.88
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.13	)		(0.07	)	$	9.88

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 83

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.22	%		5.25	%		0.53	%		(0.78	)%		14	%	$	108
	0.48	%		6.00	%		1.30	%		(1.15	)%		14	%	$	99
	0.98	%		5.51	%		0.80	%		(0.90	)%		14	%	$	99
	1.53	%		4.97	%		0.24	%		(0.55	)%		14	%	$	99
	1.69	%		4.82	%		0.09	%		(0.53	)%		14	%	$	4,576

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

84 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2055 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.13	)		(0.06	)	$	9.87
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.13	)		(0.05	)	$	9.84
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.13	)		(0.06	)	$	9.86
Class R4
Year ended May 31, 20163	$	10.00		0.07		(0.13	)		(0.06	)	$	9.88
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.12	)		(0.07	)	$	9.89

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 85

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.21	%		5.23	%		0.54	%		(0.68	)%		14	%	$	103
	0.47	%		5.98	%		1.30	%		(1.05	)%		14	%	$	99
	0.98	%		5.48	%		0.80	%		(0.80	)%		14	%	$	99
	1.53	%		4.95	%		0.24	%		(0.55	)%		14	%	$	99
	1.69	%		4.80	%		0.09	%		(0.43	)%		14	%	$	4,579

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

86 Wells Fargo Dynamic Target Date Funds Financial highlights

Dynamic Target 2060 Fund	Beginning net asset value per share		Net investment income		Net realized and unrealized gains (losses) on investments			Distributions from net investment income			Ending net asset value per share
Class A
Year ended May 31, 20163	$	10.00		0.06		(0.12	)		(0.06	)	$	9.88
Class C
Year ended May 31, 20163	$	10.00		0.02		(0.12	)		(0.05	)	$	9.85
Class R
Year ended May 31, 20163	$	10.00		0.05		(0.12	)		(0.06	)	$	9.87
Class R4
Year ended May 31, 20163	$	10.00		0.07		(0.12	)		(0.06	)	$	9.89
Class R6
Year ended May 31, 20163	$	10.00		0.08		(0.11	)		(0.07	)	$	9.90

¹  Ratios do not reflect net expenses allocated from the affiliated Master Portfolios. Including annualized net expenses allocated from the affiliated Master Portfolios, the expense ratios would be increased by the following amounts:

	Year ended May 31, 20163
Class A		0.10	%
Class C		0.10	%
Class R		0.11	%
Class R4		0.10	%
Class R6		0.11	%

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

³  For the period from November 30, 2015 (commencement of class operations) to May 31, 2016

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

Financial highlights Wells Fargo Dynamic Target Date Funds 87

Ratio to average net assets (annualized)									Total return2			Portfolio turnover rate			Net assets at end of period (000s omitted)
Net investment income			Gross expenses1			Net expenses1
	1.22	%		5.24	%		0.55	%		(0.58	)%		14	%	$	101
	0.48	%		5.99	%		1.30	%		(0.94	)%		14	%	$	99
	0.98	%		5.50	%		0.80	%		(0.70	)%		14	%	$	99
	1.53	%		4.96	%		0.24	%		(0.45	)%		14	%	$	100
	1.69	%		4.81	%		0.09	%		(0.33	)%		14	%	$	4,584

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

88 Wells Fargo Dynamic Target Date Funds Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the following funds: Wells Fargo Dynamic Target Today Fund (“Dynamic Target Today Fund”), Wells Fargo Dynamic Target 2015 Fund (“Dynamic Target 2015 Fund”), Wells Fargo Dynamic Target 2020 Fund (“Dynamic Target 2020 Fund”), Wells Fargo Dynamic Target 2025 Fund (“Dynamic Target 2025 Fund”), Wells Fargo Dynamic Target 2030 Fund (“Dynamic Target 2030 Fund”), Wells Fargo Dynamic Target 2035 Fund (“Dynamic Target 2035 Fund”), Wells Fargo Dynamic Target 2040 Fund (“Dynamic Target 2040 Fund”), Wells Fargo Dynamic Target 2045 Fund (“Dynamic Target 2045 Fund”), Wells Fargo Dynamic Target 2050 Fund (“Dynamic Target 2050 Fund”), Wells Fargo Dynamic Target 2055 Fund (“Dynamic Target 2055 Fund”) and Wells Fargo Dynamic Target 2060 Fund (“Dynamic Target 2060 Fund”) (each, a “Fund”, collectively, the “Funds”). Each Fund is a diversified series of the Trust.

Each Fund is a fund-of-funds that primarily invests in various affiliated mutual funds, unaffiliated mutual funds and exchange-traded funds (collectively, the “Underlying Funds”) to pursue its investment objective. The Underlying Funds incur separate expenses in seeking to achieve their investment objectives. The investment in affiliated mutual funds may also include investments in one or more separate diversified portfolios (each, an “affiliated Master Portfolio”, collectively, the “affiliated Master Portfolios”) of Wells Fargo Master Trust, a registered open-end management investment company. Each affiliated Master Portfolio directly acquires portfolio securities, and a Fund investing in an affiliated Master Portfolio acquires an indirect interest in those securities. Each Fund accounts for its investment in an affiliated Master Portfolios as partnership investments and records on a daily basis its share of the affiliated Master Portfolio’s income, expense and realized and unrealized gains and losses. The financial statements and financial highlights for the Underlying Funds are presented in separate financial statements and may be obtained by contacting Investor Services for the Wells Fargo Funds or by contacting the servicing agent of the unaffiliated mutual funds.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each 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), although a Fund may deviate from this calculation time under unusual or unexpected circumstances.

Investments in mutual funds are valued at net asset per share as reported by the Underlying Funds as of the close of the regular trading on the New York Stock Exchange on each day the exchange is open for trading. Investments in affiliated Master Portfolios are valued daily based on each Fund’s proportionate share of each affiliated Master Portfolio’s net assets, which are also valued daily.

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 principal 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 each Fund’s Valuation Procedures.

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 Funds. 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.

Notes to financial statements Wells Fargo Dynamic Target Date Funds 89

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

Futures contracts

Each Fund is subject to interest rate risk and equity price risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to effect tactical allocation changes in the Fund. 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 Statements of Assets and Liabilities as an asset or liability and in the Statements 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.

Income dividends and capital gain distributions from Underlying Funds are recorded on the ex-dividend date. Capital gain distributions from Underlying Funds are treated as realized gains.

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.

Each Fund records on a daily basis its proportionate share of each affiliated Master Portfolio’s interest and dividend income, in addition to expenses and realized and unrealized gains and losses.

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

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

Each Fund’s income and federal excise tax returns and all financial records supporting the returns for the fiscal year since commencement of operations will be subject to examination by the federal and Delaware revenue authorities. The Fund is not subject to examination by federal and state tax authorities for tax years before 2015, the year the Fund commenced operations.

Reclassifications are made to each Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values

90 Wells Fargo Dynamic Target Date Funds Notes to financial statements

per share. At May 31, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statements of Assets and Liabilities:

	Paid-in capital		Undistributed net investment income		Accumulated net realized gains on investments
Dynamic Target Today Fund	$	55	$	6,015	$	(6,070	)
Dynamic Target 2015 Fund		81		7,691		(7,772	)
Dynamic Target 2020 Fund		96		8,745		(8,841	)
Dynamic Target 2025 Fund		110		9,697		(9,807	)
Dynamic Target 2030 Fund		125		10,653		(10,778	)
Dynamic Target 2035 Fund		134		11,294		(11,428	)
Dynamic Target 2040 Fund		141		11,713		(11,854	)
Dynamic Target 2045 Fund		142		11,821		(11,963	)
Dynamic Target 2050 Fund		142		11,820		(11,962	)
Dynamic Target 2055 Fund		142		11,820		(11,962	)
Dynamic Target 2060 Fund		142		11,818		(11,960	)

Class allocations

The separate classes of shares offered by each 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 each 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). Each Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

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

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

Notes to financial statements Wells Fargo Dynamic Target Date Funds 91

The following is a summary of the inputs used in valuing each Fund’s assets and liabilities as of May 31, 2016:

Dynamic Target Today Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,452,088	$	0	$	0	$	1,452,088
Investment companies		2,353,377		0		0		2,353,377
Short-term investments
U.S. Treasury securities		3,000		0		0		3,000
Investments measured at net asset value*								1,202,910
		3,808,465		0		0		5,011,375
Futures contracts		31		0		0		31
Total assets	$	3,808,496	$	0	$	0	$	5,011,406

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $1,202,910. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Dynamic Target 2015 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,567,222	$	0	$	0	$	1,567,222
Investment companies		2,422,049		0		0		2,422,049
Short-term investments
U.S. Treasury securities		3,000		0		0		3,000
Investments measured at net asset value*								1,090,974
		3,992,271		0		0		5,083,245
Futures contracts		31				0		31
Total assets	$	3,992,302	$	0	$	0	$	5,083,276

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $1,090,974. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Dynamic Target 2020 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,585,609	$	0	$	0	$	1,585,609
Investment companies		2,414,629		0		0		2,414,629
Short-term investments
U.S. Treasury securities		3,000		0		0		3,000
Investments measured at net asset value*								999,894
		4,003,238		0		0		5,003,132
Futures contracts		31		0		0		31
Total assets	$	4,003,269	$	0	$	0	$	5,003,163

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $999,894. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

92 Wells Fargo Dynamic Target Date Funds Notes to financial statements

Dynamic Target 2025 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,636,333	$	0	$	0	$	1,636,333
Investment companies		2,466,460		0		0		2,466,460
Short-term investments
U.S. Treasury securities		3,000		0		0		3,000
Investments measured at net asset value*								941,930
		4,105,793		0		0		5,047,723
Futures contracts		31		0		0		31
Total assets	$	4,105,824	$	0	$	0	$	5,047,754

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $941,930. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Dynamic Target 2030 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,662,470	$	0	$	0	$	1,662,470
Investment companies		2,479,933		0		0		2,479,933
Short-term investments
U.S. Treasury securities		8,000		0		0		8,000
Investments measured at net asset value*								869,784
		4,150,403		0		0		5,020,187
Futures contracts		31		0		0		31
Total assets	$	4,150,434	$	0	$	0	$	5,020,218

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $869,784. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Dynamic Target 2035 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,650,176	$	0	$	0	$	1,650,176
Investment companies		2,472,273		0		0		2,472,273
Short-term investments
U.S. Treasury securities		8,000		0		0		8,000
Investments measured at net asset value*								817,799
		4,130,449		0		0		4,948,248
Futures contracts		31		0		0		31
Total assets	$	4,130,480	$	0	$	0	$	4,948,279

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $817,799. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo Dynamic Target Date Funds 93

Dynamic Target 2040 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,687,407	$	0	$	0	$	1,687,407
Investment companies		2,496,816		0		0		2,496,816
Short-term investments
U.S. Treasury securities		8,000		0		0		8,000
Investments measured at net asset value*								785,815
		4,192,223		0		0		4,978,038
Futures contracts		31		0		0		31
Total assets	$	4,192,254	$	0	$	0	$	4,978,069

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $785,815. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Dynamic Target 2045 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,691,157	$	0	$	0	$	1,691,157
Investment companies		2,474,730		0		0		2,474,730
Short-term investments
U.S. Treasury securities		12,000		0		0		12,000
Investments measured at net asset value*								769,930
		4,177,887		0		0		4,947,817
Futures contracts		31		0		0		31
Total assets	$	4,177,918	$	0	$	0	$	4,947,848

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $769,930. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Dynamic Target 2050 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,686,508	$	0	$	0	$	1,686,508
Investment companies		2,466,694		0		0		2,466,694
Short-term investments
U.S. Treasury securities		12,000		0		0		12,000
Investments measured at net asset value*								766,706
		4,165,202		0		0		4,931,908
Futures contracts		31		0		0		31
Total assets	$	4,165,233	$	0	$	0	$	4,931,939

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $766,706. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

94 Wells Fargo Dynamic Target Date Funds Notes to financial statements

Dynamic Target 2055 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,685,237	$	0	$	0	$	1,685,237
Investment companies		2,465,032		0		0		2,465,032
Short-term investments
U.S. Treasury securities		12,000		0		0		12,000
Investments measured at net asset value*								766,127
		4,162,269		0		0		4,928,396
Futures contracts		31		0		0		31
Total assets	$	4,162,300	$	0	$	0	$	4,928,427

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $766,127. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Dynamic Target 2060 Fund	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Exchange-traded funds	$	1,686,923	$	0	$	0	$	1,686,923
Investment companies		2,467,419		0		0		2,467,419
Short-term investments
U.S. Treasury securities		12,000		0		0		12,000
Investments measured at net asset value*								766,894
		4,166,342		0		0		4,933,236
Futures contracts		31		0		0		31
Total assets	$	4,166,373	$	0	$	0	$	4,933,267

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. At May 31, 2016, the aggregated affiliated Master Portfolios measured at fair value using the net asset value per share (or its equivalent) were valued at $766,894. Each affiliated Master Portfolio does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

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 Funds recognize transfers between levels within the fair value hierarchy at the end of the reporting period. At May 31, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

The investment objective of each affiliated Master Portfolio is as follows:

Affiliated Master Portfolio	Investment objective
Wells Fargo C&B Large Cap Value Portfolio	Seeks maximum long-term total return (current income and capital appreciation), consistent with minimizing risk to principal
Wells Fargo Core Bond Portfolio	Seeks total return, consisting of income and capital appreciation
Wells Fargo Large Company Value Portfolio	Seeks long-term capital appreciation
Wells Fargo Real Return Portfolio	Seeks returns that exceed the rate of inflation over the long-term
Wells Fargo Small Company Growth Portfolio	Seeks long-term capital appreciation
Wells Fargo Small Company Value Portfolio	Seeks long-term capital appreciation

Notes to financial statements Wells Fargo Dynamic Target Date Funds 95

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of each 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 each Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with each Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of each Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.20% and declining to 0.18% as the average daily net assets of each Fund increase.

For the period from November 30, 2015 (commencement of operations) to May 31, 2016, the management fee was equivalent to an annual rate of 0.20% for each Fund.

Funds Management also serves as the manager to each affiliated Underlying Fund and the adviser to each affiliated Master Portfolio.

Funds Management has retained the service of a subadviser to provide daily portfolio management to the Funds. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to each Fund and is paid an annual subadvisory fee starting at 0.15% and declining to 0.08% as the average daily net asset of each Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to each 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, Class R		0.21	%
Class R4		0.08
Class R6		0.03

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 Funds. Waiver of fees and/or reimbursement of expenses by Funds Management are made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through September 30, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap each Fund’s expenses as follows:

	Class A			Class C			Class R			Class R4			Class R6
Dynamic Target Today Fund		0.98	%		1.73	%		1.23	%		0.67	%		0.52	%
Dynamic Target 2015 Fund		1.00	%		1.75	%		1.25	%		0.69	%		0.54	%
Dynamic Target 2020 Fund		1.02	%		1.77	%		1.27	%		0.71	%		0.56	%
Dynamic Target 2025 Fund		1.04	%		1.79	%		1.29	%		0.73	%		0.58	%
Dynamic Target 2030 Fund		1.06	%		1.81	%		1.31	%		0.75	%		0.60	%
Dynamic Target 2035 Fund		1.07	%		1.82	%		1.32	%		0.76	%		0.61	%
Dynamic Target 2040 Fund		1.08	%		1.83	%		1.33	%		0.77	%		0.62	%
Dynamic Target 2045 Fund		1.08	%		1.83	%		1.33	%		0.77	%		0.62	%
Dynamic Target 2050 Fund		1.08	%		1.83	%		1.33	%		0.77	%		0.62	%
Dynamic Target 2055 Fund		1.08	%		1.83	%		1.33	%		0.77	%		0.62	%
Dynamic Target 2060 Fund		1.08	%		1.83	%		1.33	%		0.77	%		0.62	%

96 Wells Fargo Dynamic Target Date Funds Notes to financial statements

Net expenses from the underlying affiliated Master Portfolios and acquired fund fees and expenses are included in the expense caps. After the expiration date, each expense 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 C and Class R shares of each Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to the Class C and Class R shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter of each Fund, at an annual rate of 0.75% of the average daily net assets of Class C shares and 0.25% of the average daily net assets of Class R 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 the period from November 30, 2015 (commencement of operations) to May 31, 2016, Funds Distributor received the following amounts in front-end sales charges:

	Front-end sales charges Class A
Dynamic Target 2015 Fund	$	59
Dynamic Target 2060 Fund		2

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Class R shares of each Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. Class R4 shares are charged a fee at an annual rate of 0.10% of its average daily net assets.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the period from November 30, 2015 (commencement of operations) to May 31, 2016 were as follows:

	Purchases at cost*				Sales proceeds*
	U.S. government		Non-U.S. government		U.S. government		Non-U.S. government
Dynamic Target Today Fund	$	2,141,181	$	5,247,560	$	2,059,376	$	1,238,949
Dynamic Target 2015 Fund		1,591,285		4,488,272		1,530,467		311,247
Dynamic Target 2020 Fund		1,220,753		4,919,477		1,174,111		683,643
Dynamic Target 2025 Fund		915,131		5,378,144		880,174		1,010,059
Dynamic Target 2030 Fund		598,557		4,889,839		575,685		484,840
Dynamic Target 2035 Fund		392,035		4,899,104		377,052		496,527
Dynamic Target 2040 Fund		243,807		4,962,149		234,476		492,132
Dynamic Target 2045 Fund		191,522		4,923,857		184,191		470,290
Dynamic Target 2050 Fund		188,541		4,923,835		181,332		482,968
Dynamic Target 2055 Fund		188,383		4,918,442		181,180		480,185
Dynamic Target 2060 Fund		188,772		4,916,401		181,555		474,709

* The Funds seek to achieve their investment objective by investing some of their investable assets in affiliated Master Portfolios. Purchases and sales related to these investments have been calculated by aggregating the results of multiplying such Fund’s ownership percentage of the respective affiliated Master Portfolio by the corresponding affiliated Master Portfolio’s purchases and sales. Purchases and sales of the affiliated and unaffiliated Underlying Funds in which the Funds invest are actual aggregate purchases and sales of those investments.

Notes to financial statements Wells Fargo Dynamic Target Date Funds 97

6. INVESTMENTS IN AFFILIATES

An affiliated investment is a company which is under common ownership or control of the Fund or which the Fund has ownership of at least 5% of the outstanding voting shares. The following is a summary of transactions for the long-term holdings of issuers that were affiliates of the Fund at the end of the period.

	Shares, beginning of period*		Shares purchased		Shares sold		Shares, end of period		Value, end of period		Dividends from affiliated Underlying Funds		Capital gain distributions from affiliated Underlying Funds
Dynamic Target Today Fund
Wells Fargo Diversified International Fund Class R6		N/A		21,191		771		20,420	$	229,932	$	2,313	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		11,527		562		10,965		104,277		1,165		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		13,860		409		13,451		124,955		0		39,542
Wells Fargo Enterprise Fund Class R6		N/A		2,171		89		2,082		91,018		0		6,201
Wells Fargo International Bond Fund Class R6		N/A		29,917		3,503		26,414		268,895		0		1,659
Wells Fargo Intrinsic Value Fund Class R6		N/A		7,228		143		7,085		82,395		1,113		8,084
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		8,771		232		8,539		125,178		0		7,938
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		60,169		3,874		56,295		493,140		3,678		1,836
Wells Fargo Special Mid Cap Value Fund Class R6		N/A		2,869		74		2,795		90,377		633		3,028
Wells Fargo Strategic Income Fund Institutional Class		N/A		57,234		2,513		54,721		493,585		8,373		0
									$	2,103,752	$	17,275	$	68,288
Dynamic Target 2015 Fund
Wells Fargo Diversified International Fund Class R6		N/A		30,633		841		29,792	$	335,454	$	3,360	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		16,689		780		15,909		151,293		1,697		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		20,260		646		19,614		182,215		0		57,476
Wells Fargo Enterprise Fund Class R6		N/A		3,273		250		3,023		132,116		0		9,014
Wells Fargo International Bond Fund Class R6		N/A		22,287		2,522		19,765		201,204		0		1,211
Wells Fargo Intrinsic Value Fund Class R6		N/A		10,547		228		10,319		120,009		1,617		11,746
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		12,973		514		12,459		182,654		0		11,539
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		45,073		3,268		41,805		366,215		2,683		1,339
Wells Fargo Special Mid Cap Value Fund Class R6		N/A		4,243		175		4,068		131,520		921		4,402
Wells Fargo Strategic Income Fund Institutional Class		N/A		43,015		2,348		40,667		366,819		6,121		0
									$	2,169,499	$	16,399	$	96,727
Dynamic Target 2020 Fund
Wells Fargo Diversified International Fund Class R6		N/A		36,342		1,419		34,923	$	393,234	$	4,016	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		20,081		1,360		18,721		178,035		1,999		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		23,725		718		23,007		213,737		0		68,736
Wells Fargo Enterprise Fund Class R6		N/A		3,747		174		3,573		156,168		0		10,780
Wells Fargo International Bond Fund Class R6		N/A		17,827		2,734		15,093		153,647		0		940
Wells Fargo Intrinsic Value Fund Class R6		N/A		12,465		358		12,107		140,801		1,933		14,049
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		15,044		441		14,603		214,087		0		13,799
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		35,551		3,464		32,087		281,078		2,056		1,039
Wells Fargo Special Mid Cap Value Fund Class R6		N/A		4,993		204		4,789		154,841		1,102		5,264
Wells Fargo Strategic Income Fund Institutional Class		N/A		34,015		2,828		31,187		281,303		4,704		0
									$	2,166,931	$	15,810	$	114,607
Dynamic Target 2025 Fund
Wells Fargo Diversified International Fund Class R6		N/A		42,325		1,877		40,448	$	455,447	$	4,585	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		23,281		1,636		21,645		205,847		2,307		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		27,873		1,208		26,665		247,716		0		78,890
Wells Fargo Enterprise Fund Class R6		N/A		4,448		312		4,136		180,779		0		12,372
Wells Fargo International Bond Fund Class R6		N/A		13,738		2,410		11,328		115,318		0		698
Wells Fargo Intrinsic Value Fund Class R6		N/A		14,434		424		14,010		162,940		2,214		16,124
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		17,758		840		16,918		248,021		0		15,837
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		27,170		3,105		24,065		210,808		1,532		772
Wells Fargo Special Mid Cap Value Fund Class R6		N/A		5,779		233		5,546		179,300		1,264		6,042
Wells Fargo Strategic Income Fund Institutional Class		N/A		26,383		2,991		23,392		210,993		3,504		0
									$	2,217,169	$	15,406	$	130,735

98 Wells Fargo Dynamic Target Date Funds Notes to financial statements

	Shares, beginning of period*		Shares purchased		Shares sold		Shares, end of period		Value, end of period		Dividends from affiliated Underlying Funds		Capital gain distributions from affiliated Underlying Funds
Dynamic Target 2030 Fund
Wells Fargo Diversified International Fund Class R6		N/A		48,099		2,756		45,343	$	510,563	$	5,164	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		26,472		2,190		24,282		230,925		2,589		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		31,459		1,580		29,879		277,575		0		89,067
Wells Fargo Enterprise Fund Class R6		N/A		4,902		294		4,608		201,433		0		13,968
Wells Fargo International Bond Fund Class R6		N/A		9,188		1,762		7,426		75,599		0		456
Wells Fargo Intrinsic Value Fund Class R6		N/A		16,349		639		15,710		182,703		2,493		18,203
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		19,762		801		18,961		277,974		0		17,881
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		18,294		2,578		15,716		137,676		994		504
Wells Fargo Special Mid Cap Value Fund Class R6		N/A		6,569		374		6,195		200,284		1,423		6,821
Wells Fargo Strategic Income Fund Institutional Class		N/A		17,783		2,505		15,278		137,803		2,280		0
									$	2,232,535	$	14,943	$	146,900
Dynamic Target 2035 Fund
Wells Fargo Diversified International Fund Class R6		N/A		51,373		3,265		48,108	$	541,697	$	5,555	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		28,433		2,712		25,721		244,602		2,752		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		34,011		2,266		31,745		294,912		0		95,840
Wells Fargo Enterprise Fund Class R6		N/A		5,241		334		4,907		214,493		0		15,030
Wells Fargo International Bond Fund Class R6		N/A		6,324		1,462		4,862		49,499		0		305
Wells Fargo Intrinsic Value Fund Class R6		N/A		17,538		871		16,667		193,840		2,691		19,587
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		21,323		1,208		20,115		294,888		0		19,240
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		12,422		2,131		10,291		90,151		656		337
Wells Fargo Special Mid Cap Value Fund Class R		N/A		7,058		466		6,592		213,103		1,536		7,340
Wells Fargo Strategic Income Fund Institutional Class		N/A		12,201		2,199		10,002		90,218		1,506		0
									$	2,227,403	$	14,696	$	157,679
Dynamic Target 2040 Fund
Wells Fargo Diversified International Fund Class R6		N/A		54,667		3,861		50,806	$	572,075	$	5,791	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		30,828		3,079		27,749		263,893		2,883		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		35,877		2,673		33,204		308,468		0		100,407
Wells Fargo Enterprise Fund Class R6		N/A		5,546		418		5,128		224,148		0		15,747
Wells Fargo International Bond Fund Class R6		N/A		4,055		1,003		3,052		31,074		0		183
Wells Fargo Intrinsic Value Fund Class R6		N/A		18,696		1,076		17,620		204,920		2,808		20,523
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		22,655		1,555		21,100		309,319		0		20,157
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		7,949		1,550		6,399		56,055		395		202
Wells Fargo Special Mid Cap Value Fund Class R		N/A		7,452		554		6,898		223,027		1,605	$	7,689
Wells Fargo Strategic Income Fund Institutional Class		N/A		7,804		1,588		6,216		56,065		906		0
									$	2,249,044	$	14,388	$	164,908
Dynamic Target 2045 Fund
Wells Fargo Diversified International Fund Class R6		N/A		54,687		3,597		51,090	$	575,277	$	5,881	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		30,224		2,819		27,405		260,619		2,924		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		36,213		2,639		33,574		311,902		0		101,546
Wells Fargo Enterprise Fund Class R6		N/A		5,583		418		5,165		225,760		0		15,925
Wells Fargo International Bond Fund Class R6		N/A		3,261		861		2,400		24,429		0		153
Wells Fargo Intrinsic Value Fund Class R6		N/A		18,656		943		17,713		206,005		2,847		20,751
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		22,766		1,419		21,347		312,954		0		20,386
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		6,338		1,309		5,029		44,052		324		169
Wells Fargo Special Mid Cap Value Fund Class R		N/A		7,461		503		6,958		224,957		1,624		7,777
Wells Fargo Strategic Income Fund Institutional Class		N/A		6,240		1,356		4,884		44,050		745		0
									$	2,230,005	$	14,345	$	166,707

Notes to financial statements Wells Fargo Dynamic Target Date Funds 99

	Shares, beginning of period*		Shares purchased		Shares sold		Shares, end of period		Value, end of period		Dividends from affiliated Underlying Funds		Capital gain distributions from affiliated Underlying Funds
Dynamic Target 2050 Fund
Wells Fargo Diversified International Fund Class R6		N/A		54,670		3,711		50,959	$	573,793	$	5,862	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		30,213		2,924		27,289		259,515		2,914		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		36,082		2,584		33,498		311,200		0		101,546
Wells Fargo Enterprise Fund Class R6		N/A		5,592		434		5,158		225,436		0		15,925
Wells Fargo International Bond Fund Class R6		N/A		3,251		897		2,354		23,968		0		152
Wells Fargo Intrinsic Value Fund Class R6		N/A		18,640		971		17,669		205,496		2,831		20,752
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		22,768		1,481		21,287		312,073		0		20,386
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		6,319		1,372		4,947		43,333		322		169
Wells Fargo Special Mid Cap Value Fund Class R		N/A		7,467		522		6,945		224,524		1,618		7,777
Wells Fargo Strategic Income Fund Institutional Class		N/A		6,217		1,413		4,804		43,333		740		0
									$	2,222,671	$	14,287	$	166,707
Dynamic Target 2055 Fund
Wells Fargo Diversified International Fund Class R6		N/A		54,584		3,664		50,920	$	573,363	$	5,862	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		30,165		2,907		27,258		259,224		2,913		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		36,022		2,542		33,480		311,031		0		101,546
Wells Fargo Enterprise Fund Class R6		N/A		5,580		422		5,158		225,452		0		15,925
Wells Fargo International Bond Fund Class R6		N/A		3,256		904		2,352		23,947		0		152
Wells Fargo Intrinsic Value Fund Class R6		N/A		18,610		956		17,654		205,318		2,831		20,752
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		22,711		1,439		21,272		311,852		0		20,386
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		6,323		1,381		4,942		43,295		322		169
Wells Fargo Special Mid Cap Value Fund Class R		N/A		7,459		518		6,941		224,397		1,618		7,777
Wells Fargo Strategic Income Fund Institutional Class		N/A		6,224		1,424		4,800		43,297		741		0
									$	2,221,176	$	14,287	$	166,707
Dynamic Target 2060 Fund
Wells Fargo Diversified International Fund Class R6		N/A		54,536		3,566		50,970	$	573,927	$	5,877	$	0
Wells Fargo Emerging Markets Equity Income Fund Class R6		N/A		30,170		2,871		27,299		259,611		2,918		0
Wells Fargo Endeavor Select Fund Institutional Class		N/A		35,991		2,482		33,509		311,295		0		101,546
Wells Fargo Enterprise Fund Class R6		N/A		5,588		430		5,158		225,440		0		15,925
Wells Fargo International Bond Fund Class R6		N/A		3,260		902		2,358		24,007		0		152
Wells Fargo Intrinsic Value Fund Class R6		N/A		18,623		949		17,674		205,552		2,831		20,752
Wells Fargo Premier Large Company Growth Fund Class R6		N/A		22,719		1,426		21,293		312,157		0		20,386
Wells Fargo Short-Term Bond Fund Institutional Class		N/A		6,333		1,378		4,955		43,405		322		169
Wells Fargo Special Mid Cap Value Fund Class R		N/A		7,458		512		6,946		224,549		1,618		7,777
Wells Fargo Strategic Income Fund Institutional Class		N/A		6,236		1,426		4,810		43,386		740		0
									$	2,223,329	$	14,306	$	166,707

* Each Fund commenced operations on November 30, 2015.

In addition, each Fund’s ownership of affiliated Master Portfolios was as follows:

	% of ownership, beginning of period*		% of ownership, end of period			Value, end of period
Dynamic Target Today Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A		0.03	%	$	82,650
Wells Fargo Core Bond Portfolio		N/A		0.02			655,585
Wells Fargo Large Company Value Portfolio		N/A		0.11			83,192
Wells Fargo Real Return Portfolio		N/A		0.43			272,449
Wells Fargo Small Company Growth Portfolio		N/A		0.00	**		54,661
Wells Fargo Small Company Value Portfolio		N/A		0.02			54,373
						$	1,202,910

100 Wells Fargo Dynamic Target Date Funds Notes to financial statements

	% of ownership, beginning of period*			% of ownership, end of period			Value, end of period
Dynamic Target 2015 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A			0.04	%	$	120,498
Wells Fargo Core Bond Portfolio		N/A			0.01			487,203
Wells Fargo Large Company Value Portfolio		N/A			0.15			121,833
Wells Fargo Real Return Portfolio		N/A			0.32			202,701
Wells Fargo Small Company Growth Portfolio		N/A			0.01			79,555
Wells Fargo Small Company Value Portfolio		N/A			0.04			79,184
							$	1,090,974
Dynamic Target 2020 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A			0.05	%	$	141,485
Wells Fargo Core Bond Portfolio		N/A			0.01			373,767
Wells Fargo Large Company Value Portfolio		N/A			0.18			142,659
Wells Fargo Real Return Portfolio		N/A			0.24			155,360
Wells Fargo Small Company Growth Portfolio		N/A			0.01			93,500
Wells Fargo Small Company Value Portfolio		N/A			0.04			93,123
							$	999,894
Dynamic Target 2025 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A			0.06	%	$	163,963
Wells Fargo Core Bond Portfolio		N/A			0.01			280,198
Wells Fargo Large Company Value Portfolio		N/A			0.21			165,213
Wells Fargo Real Return Portfolio		N/A			0.18			116,379
Wells Fargo Small Company Growth Portfolio		N/A			0.01			108,232
Wells Fargo Small Company Value Portfolio		N/A			0.05			107,945
							$	941,930
Dynamic Target 2030 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A			0.06	%	$	183,237
Wells Fargo Core Bond Portfolio		N/A			0.00	**		183,263
Wells Fargo Large Company Value Portfolio		N/A			0.23			185,029
Wells Fargo Real Return Portfolio		N/A			0.12			76,203
Wells Fargo Small Company Growth Portfolio		N/A			0.01			121,286
Wells Fargo Small Company Value Portfolio		N/A			0.06			120,766
							$	869,784
Dynamic Target 2035 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A			0.07	%	$	194,790
Wells Fargo Core Bond Portfolio		N/A			0.00	**		120,029
Wells Fargo Large Company Value Portfolio		N/A			0.25			196,262
Wells Fargo Real Return Portfolio		N/A			0.08			49,934
Wells Fargo Small Company Growth Portfolio		N/A			0.01			128,545
Wells Fargo Small Company Value Portfolio		N/A			0.06			128,239
							$	817,799
Dynamic Target 2040 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A	��		0.07	%	$	204,823
Wells Fargo Core Bond Portfolio		N/A			0.00	**		74,638
Wells Fargo Large Company Value Portfolio		N/A			0.26			205,888
Wells Fargo Real Return Portfolio		N/A			0.05			31,179
Wells Fargo Small Company Growth Portfolio		N/A			0.01			134,931
Wells Fargo Small Company Value Portfolio		N/A			0.06			134,356
							$	785,815

Notes to financial statements Wells Fargo Dynamic Target Date Funds 101

	% of ownership, beginning of period*		% of ownership, end of period			Value, end of period
Dynamic Target 2045 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A		0.07	%	$	206,212
Wells Fargo Core Bond Portfolio		N/A		0.00	**		58,631
Wells Fargo Large Company Value Portfolio		N/A		0.26			208,245
Wells Fargo Real Return Portfolio		N/A		0.04			24,508
Wells Fargo Small Company Growth Portfolio		N/A		0.01			136,547
Wells Fargo Small Company Value Portfolio		N/A		0.06			135,787
						$	769,930
Dynamic Target 2050 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A		0.07	%	$	205,801
Wells Fargo Core Bond Portfolio		N/A		0.00	**		57,723
Wells Fargo Large Company Value Portfolio		N/A		0.26			207,750
Wells Fargo Real Return Portfolio		N/A		0.04			24,045
Wells Fargo Small Company Growth Portfolio		N/A		0.01			136,006
Wells Fargo Small Company Value Portfolio		N/A		0.06			135,381
						$	766,706
Dynamic Target 2055 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A		0.07	%	$	205,664
Wells Fargo Core Bond Portfolio		N/A		0.00	**		57,675
Wells Fargo Large Company Value Portfolio		N/A		0.26			207,571
Wells Fargo Real Return Portfolio		N/A		0.04			24,024
Wells Fargo Small Company Growth Portfolio		N/A		0.01			135,893
Wells Fargo Small Company Value Portfolio		N/A		0.06			135,300
						$	766,127
Dynamic Target 2060 Fund
Wells Fargo C&B Large Cap Value Portfolio		N/A		0.07	%	$	205,825
Wells Fargo Core Bond Portfolio		N/A		0.00	**		57,794
Wells Fargo Large Company Value Portfolio		N/A		0.26			207,761
Wells Fargo Real Return Portfolio		N/A		0.04			24,073
Wells Fargo Small Company Growth Portfolio		N/A		0.01			136,041
Wells Fargo Small Company Value Portfolio		N/A		0.06			135,400
						$	766,894

* Each Fund commenced operations on November 30, 2015.

** The amount invested is less than 0.005%.

7. DERIVATIVE TRANSACTIONS

During the period from November 30, 2015 (commencement of operations) to May 31, 2016, the Funds entered into futures contracts to gain market exposure to certain asset classes consistent with an active asset allocation strategy.

At May 31, 2016, the Fund had short futures contracts outstanding as follows:

	Expiration date	Counterparty	Contracts	Type	Contract value at May 31, 2016		Unrealized losses
Dynamic Target Today Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes	$	259,375	$	(631	)
Dynamic Target 2015 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)
Dynamic Target 2020 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)
Dynamic Target 2025 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)
Dynamic Target 2030 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)
Dynamic Target 2035 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)
Dynamic Target 2040 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)

102 Wells Fargo Dynamic Target Date Funds Notes to financial statements

	Expiration date	Counterparty	Contracts	Type	Contract value at May 31, 2016		Unrealized losses
Dynamic Target 2045 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes	$	259,375	$	(631	)
Dynamic Target 2050 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)
Dynamic Target 2055 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)
Dynamic Target 2060 Fund	9-21-2016	Goldman Sachs	2 Short	10-Year U.S. Treasury Notes		259,375		(631	)

During the period from November 30, 2015 (commencement of operations) to May 31, 2016, the Funds had average notional amounts in futures contracts outstanding as follows:

	Long contracts		Short contracts
Dynamic Target Today Fund	$	93,581	$	298,877
Dynamic Target 2015 Fund		81,931		406,989
Dynamic Target 2020 Fund		81,931		469,337
Dynamic Target 2025 Fund		81,931		486,875
Dynamic Target 2030 Fund		81,931		535,361
Dynamic Target 2035 Fund		81,931		597,268
Dynamic Target 2040 Fund		81,931		631,268
Dynamic Target 2045 Fund		81,931		588,054
Dynamic Target 2050 Fund		81,931		586,539
Dynamic Target 2055 Fund		81,931		588,294
Dynamic Target 2060 Fund		81,931		587,355

The fair value of derivative instruments for each Fund is reflected in the Statements of Assets and Liabilities.

The effect of derivative instruments on the Statements of Operations for the period from November 30, 2015 (commencement of operations) to May 31, 2016 was as follows for the Funds:

	Amount of realized gains (losses) on derivatives					Change in unrealized gains (losses) on derivatives
	Interest rate contracts	Equity contracts			Total	Interest rate contracts	Equity contracts		Total
Dynamic Target Today Fund	$(3,292)	$	(3,403	)	$(6,695)	$(631)	$	0	$	(631	)
Dynamic Target 2015 Fund	(4,310)		3,361		(949)	(631)		0		(631	)
Dynamic Target 2020 Fund	(3,435)		29,901		26,466	(631)		0		(631	)
Dynamic Target 2025 Fund	(5,129)		27,536		22,407	(631)		0		(631	)
Dynamic Target 2030 Fund	(3,343)		36,790		33,447	(631)		0		(631	)
Dynamic Target 2035 Fund	(3,424)		34,886		31,462	(631)		0		(631	)
Dynamic Target 2040 Fund	(3,423)		33,223		29,800	(631)		0		(631	)
Dynamic Target 2045 Fund	(3,202)		40,480		37,278	(631)		0		(631	)
Dynamic Target 2050 Fund	(3,202)		40,471		37,269	(631)		0		(631	)
Dynamic Target 2055 Fund	(3,202)		43,282		40,080	(631)		0		(631	)
Dynamic Target 2060 Fund	(3,342)		48,622		45,280	(631)		0		(631	)

For certain types of derivative transactions, the Funds have 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

Notes to financial statements Wells Fargo Dynamic Target Date Funds 103

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 Funds under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statements 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 Statements of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statements 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 Statements of Assets and Liabilities		Amounts subject to netting agreements		Collateral received		Net amount of assets
Dynamic Target Today Fund	Futures – variation margin	Goldman Sachs	$	31	$	0	$	0	$	31
Dynamic Target 2015 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2020 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2025 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2030 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2035 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2040 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2045 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2050 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2055 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31
Dynamic Target 2060 Fund	Futures – variation margin	Goldman Sachs		31		0		0		31

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the period from November 30, 2015 (commencement of operations) to May 31, 2016 were as follows:

	Ordinary income
Dynamic Target Today Fund	$	18,899
Dynamic Target 2015 Fund		23,382
Dynamic Target 2020 Fund		25,488
Dynamic Target 2025 Fund		27,894
Dynamic Target 2030 Fund		29,810
Dynamic Target 2035 Fund		31,226
Dynamic Target 2040 Fund		32,393
Dynamic Target 2045 Fund		32,657
Dynamic Target 2050 Fund		32,585
Dynamic Target 2055 Fund		32,585
Dynamic Target 2060 Fund		32,586

104 Wells Fargo Dynamic Target Date Funds Notes to financial statements

As of May 31, 2016, the components of distributable earnings on a tax basis were as follows:

	Undistributed ordinary income		Undistributed long-term gain		Unrealized gains (losses)
Dynamic Target Today Fund	$	29,433	$	33,788	$	(24,327	)
Dynamic Target 2015 Fund		26,353		47,342		(59,995	)
Dynamic Target 2020 Fund		24,266		80,510		(98,561	)
Dynamic Target 2025Fund		22,478		82,609		(117,109	)
Dynamic Target 2030 Fund		20,699		97,730		(150,634	)
Dynamic Target 2035 Fund		19,497		99,512		(172,729	)
Dynamic Target 2040 Fund		18,542		100,638		(183,879	)
Dynamic Target 2045 Fund		18,377		108,542		(186,301	)
Dynamic Target 2050 Fund		18,348		108,756		(186,582	)
Dynamic Target 2055 Fund		18,338		111,466		(186,855	)
Dynamic Target 2060 Fund		18,379		116,843		(186,303	)

9. CONCENTRATION OF OWNERSHIP

As of May 31, 2016, the Funds were primarily owned by Wells Fargo. Investment by and/or voting activities of Wells Fargo with respect to their holdings in each Fund could have a material impact on the Fund. At May 31, 2016, Wells Fargo’s ownership of each Fund was as follows:

	% of ownership
Dynamic Target Today Fund		100.00	%
Dynamic Target 2015 Fund		98.08	%
Dynamic Target 2020 Fund		99.63	%
Dynamic Target 2025 Fund		98.27	%
Dynamic Target 2030 Fund		98.54	%
Dynamic Target 2035 Fund		99.60	%
Dynamic Target 2040 Fund		98.84	%
Dynamic Target 2045 Fund		99.56	%
Dynamic Target 2050 Fund		99.82	%
Dynamic Target 2055 Fund		99.93	%
Dynamic Target 2060 Fund		99.96	%

10. 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 Funds and, therefore, cannot be estimated.

Report of independent registered public accounting firm Wells Fargo Dynamic Target Date Funds 105

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of the Wells Fargo Dynamic Target Today Fund, Wells Fargo Dynamic Target 2015 Fund, Wells Fargo Dynamic Target 2020 Fund, Wells Fargo Dynamic Target 2025 Fund, Wells Fargo Dynamic Target 2030 Fund, Wells Fargo Dynamic Target 2035 Fund, Wells Fargo Dynamic Target 2040 Fund, Wells Fargo Dynamic Target 2045 Fund, Wells Fargo Dynamic Target 2050 Fund, Wells Fargo Dynamic Target 2055 Fund, and Wells Fargo Dynamic Target 2060 Fund (the “Funds”), eleven of the funds constituting the Wells Fargo Funds Trust, as of May 31, 2016, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the period from November 30, 2015 (commencement of operations) to May 31, 2016. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of May 31, 2016, by correspondence with the custodian or the transfer agent or by other appropriate audit procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned Funds of the Wells Fargo Funds Trust as of May 31, 2016, the results of their operations, the changes in their net assets, and the financial highlights for the period from November 30, 2015 (commencement of operations) to May 31, 2016, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

July 27, 2016

106 Wells Fargo Dynamic Target Date Funds Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, the percentage of ordinary income dividends qualifying for the corporate dividends-received deduction was as follows for the fiscal year ended May 31, 2016:

	Dividends-received deduction
Dynamic Target 2015 Fund		5.41	%
Dynamic Target 2020 Fund		6.32
Dynamic Target 2025 Fund		7.15
Dynamic Target 2030 Fund		7.94
Dynamic Target 2035 Fund		8.42
Dynamic Target 2040 Fund		8.74
Dynamic Target 2045 Fund		8.83
Dynamic Target 2050 Fund		8.83
Dynamic Target 2055 Fund		8.82
Dynamic Target 2060 Fund		8.82

Pursuant to Section 854 of the Internal Revenue Code, the following amounts of income dividends paid during the fiscal year ended May 31, 2016 have been designated as qualified dividend income (QDI):

	QDI
Dynamic Target 2015 Fund	$	1,514
Dynamic Target 2020 Fund		1,882
Dynamic Target 2025 Fund		2,294
Dynamic Target 2030 Fund		2,689
Dynamic Target 2035 Fund		2,968
Dynamic Target 2040 Fund		3,184
Dynamic Target 2045 Fund		3,237
Dynamic Target 2050 Fund		3,228
Dynamic Target 2055 Fund		3,226
Dynamic Target 2060 Fund		3,228

For the fiscal year ended May 31, 2016, the following amounts have been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code:

	Interest-related dividends
Dynamic Target Today Fund	$	2,708
Dynamic Target 2015 Fund		2,399
Dynamic Target 2020 Fund		2,016
Dynamic Target 2025 Fund		1,632
Dynamic Target 2030 Fund		1,145
Dynamic Target 2035 Fund		809
Dynamic Target 2040 Fund		522
Dynamic Target 2045 Fund		438
Dynamic Target 2050 Fund		437
Dynamic Target 2055 Fund		437
Dynamic Target 2060 Fund		437

Other information (unaudited) Wells Fargo Dynamic Target Date Funds 107

For the fiscal year ended May 31, 2016, the percentage of ordinary income distributed which was derived from interest on U.S. government securities was as follows:

	% of U.S. government income
Dynamic Target Today Fund		2.64	%
Dynamic Target 2015 Fund		1.88
Dynamic Target 2020 Fund		1.44
Dynamic Target 2025 Fund		1.06

PROXY VOTING INFORMATION

A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings are publicly available on the website (wellsfargofunds.com) on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) is publicly available on the website on a monthly, seven-day or more delayed basis. Each 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, each 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.

108 Wells Fargo Dynamic Target Date Funds 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 142 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 Dynamic Target Date Funds 109

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

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

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years 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	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.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016*	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
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 69 funds and Assistant Treasurer of 73 funds in the Fund Complex.

²  The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

* Michael Whitaker became Chief Compliance Officer effective May 16, 2016.

110 Wells Fargo Dynamic Target Date Funds Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Wells Fargo Dynamic Target Today Fund, Wells Fargo Dynamic Target 2015 Fund, Wells Fargo Dynamic Target 2020 Fund, Wells Fargo Dynamic Target 2025 Fund, Wells Fargo Dynamic Target 2030 Fund, Wells Fargo Dynamic Target 2035 Fund, Wells Fargo Dynamic Target 2040 Fund, Wells Fargo Dynamic Target 2045 Fund, Wells Fargo Dynamic Target 2050 Fund, Wells Fargo Dynamic Target 2055 Fund, and Wells Fargo Dynamic Target 2060 Fund

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”), all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved at an in-person meeting held on May 24-25, 2016 (the “Meeting”) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”) for Wells Fargo Dynamic Target Today Fund, Wells Fargo Dynamic Target 2015 Fund, Wells Fargo Dynamic Target 2020 Fund, Wells Fargo Dynamic Target 2025 Fund, Wells Fargo Dynamic Target 2030 Fund, Wells Fargo Dynamic Target 2035 Fund, Wells Fargo Dynamic Target 2040 Fund, Wells Fargo Dynamic Target 2045 Fund, Wells Fargo Dynamic Target 2050 Fund, Wells Fargo Dynamic Target 2055 Fund, and Wells Fargo Dynamic Target 2060 Fund (each, a “Fund” and collectively, the “Funds”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”) for each of the Funds. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.” The Board noted that the Funds commenced operations in 2015.

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2016, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2016. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, Extent and Quality of Services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

Other information (unaudited) Wells Fargo Dynamic Target Date Funds 111

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

Fund Performance and Expenses

The Board acknowledged that the Funds had commenced operations in 2015 and have no performance record. The Board noted that it would have the opportunity to review performance information relating to the Funds on an on-going basis and in connection with future annual reviews of advisory agreements.

The Board also received and considered information regarding the Funds’ net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Funds (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that: 1) the net operating expense ratios of the Wells Fargo Target Today Fund were lower than the median net operating expense ratios of the expense Groups for all share classes except Class R and Class A; 2) the net operating expense ratios of the Wells Fargo Target 2015 Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes except Class R; 3) the net operating expense ratios of the Wells Fargo Target 2020 Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes; 4) the net operating expense ratios of the Wells Fargo Target 2025 Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes; 5) the net operating expense ratios of the Wells Fargo Target 2030 Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes; 6) the net operating expense ratios of the Wells Fargo Target 2035 Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes; 7) the net operating expense ratios of the Wells Fargo Target 2040 Fund were lower than or equal to the median net operating expense ratios of the expense Groups for all share classes; 8) the net operating expense ratios of the Wells Fargo Target 2045 Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes; 9) the net operating expense ratios of the Wells Fargo Target 2050 Fund were lower than or equal to the median net operating expense ratios of the expense Groups for all share classes; 10) the net operating expense ratios of the Wells Fargo Target 2055 Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes; and 11) the net operating expense ratios of the Wells Fargo Target 2060 Fund were lower than or equal to the median net operating expense ratios of the expense Groups for all share classes.

The Board took into account the Funds’ performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment Management Fee Rates

The Board reviewed and considered the contractual fee rates payable by the Funds to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Funds to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Funds’ Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Funds were in range of the sum of these average rates for the Fund’s expense Groups for all share classes except Class R and Class A.

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

112 Wells Fargo Dynamic Target Date Funds Other information (unaudited)

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

Profitability

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

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

Economies of Scale

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

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

Other Benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Dynamic Target Date Funds 113

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, email, visit the Funds’ 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 Funds. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Funds’ 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

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

243140 07-16 ADTD/AR104 05-16

ITEM 2. CODE OF ETHICS

(a) As of the end of the period covered by the report, Wells Fargo Funds Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.

(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Trustees of Wells Fargo Funds Trust has determined that Judith Johnson is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mrs. Johnson is independent for purposes of Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by the Registrant’s audit committee.

	Fiscal		Fiscal
	year ended		year ended
	May 31, 2016		May 31, 2015
Audit fees	$	412,495	$	238,000
Audit-related fees		—		—
Tax fees (1)		83,035		64,760
All other fees		—		—
	$	495,530	$	302,760

⁽¹⁾  Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services for the mutual funds of Wells Fargo Funds Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(f) Not applicable

(g) Not applicable

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

A Portfolio of Investments for each series of Wells Fargo Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit COE.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date: July, 27, 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: July 27, 2016
By:	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date: July 27, 2016
By:	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date: July 27, 2016