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: June 30

Registrant is making a filing for 16 of its series:

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

Date of reporting period: June 30, 2016

ITEM 1. REPORT TO STOCKHOLDERS

Annual Report

June 30, 2016

Wells Fargo

California Limited-Term Tax-Free Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	26
Statement of operations	27
Statement of changes in net assets	28
Financial highlights	29
Notes to financial statements	33
Report of independent registered public accounting firm	37
Other information	38
List of abbreviations	44

The views expressed and any forward-looking statements are as of June 30, 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 California Limited-Term Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo California Limited-Term Tax-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index¹, a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Terry J. Goode

Adrian Van Poppel

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SFCIX)	11-18-1992		1.48		2.46		3.05		3.54		2.87		3.26		0.83		0.80
Class C (SFCCX)	8-30-2002		1.76		2.10		2.48		2.76		2.10		2.48		1.58		1.55
Administrator Class (SCTIX)	9-6-1996		–		–		–		3.78		3.09		3.48		0.77		0.60
Institutional Class (SFNCX)	10-31-2014		–		–		–		3.79		3.10		3.49		0.50		0.50
Barclays Municipal Bond 1-5 Year Blend Index4	–		–		–		–		2.60		1.93		3.30		–		–
Barclays California Municipal Bond 1-5 Year Blend Index5	–		–		–		–		2.46		1.99		3.35		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 2.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to California municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁶

¹  Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and is not adjusted to reflect the Institutional Class expenses. If these expenses had been included, returns for the Institutional Class would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond 1–5 Year Blend Index is the 1–5 Year Blend component of the Barclays Municipal Bond Index. The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal Bond 1-5 Year Blend Index and the Barclays California Municipal Bond 1-5 Year Blend 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 2.00%.

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

⁸  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/ or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmarks, the Barclays Municipal Bond 1–5 Year Blend Index and the Barclays California Municipal Bond 1–5 Year Blend Index, during the 12-month period that ended June 30, 2016.

n The main contributors to results were the Fund’s longer duration and its yield-curve positioning because interest rates fell and municipal bonds rallied.

n The Fund’s sector and credit allocation also helped. It was overweight A-rated and BBB-rated credit categories, which outperformed because medium-quality credits outperformed higher-quality ones.

n Security selection in the housing and transportation sectors detracted from results because the Fund’s holdings underperformed those in the index.

Effective maturity distribution as of June 30, 2016⁷

Ultralow yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential backup in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. As a result, we positioned the Fund to benefit from a flattening yield curve, which benefited results. The Fund was underweight the front end of the curve in maturities less than 3 years and overweight the 10-year segment. Longer-term maturities

outperformed shorter-term maturities by a wide margin as the municipal curve flattened more than 110 basis points (bps; 100 bps equals 1.00%) between 2- and 10-year maturities. The Fed raised the federal funds target rate in December 2015 but signaled that the pace of further increases would be gradual and data dependent. With the Fed likely on hold for an extended period, we kept the Fund’s duration longer than the index, and this contributed to results.

Credit quality as of June 30, 2016⁸

We kept the Fund overweight A-rated and BBB-rated bonds, which was beneficial as lower-rated bonds outperformed higher-quality bonds amid strong demand from investors for yield. The Fund’s overweight allocations to the special tax, local general obligation (GO), and appropriation-debt sectors contributed to results. Issue selection detracted from results, however, because the Fund’s holdings in housing and transportation underperformed those in the index.

California benefited from economic growth and strong legal protections for bondholders.

California’s economy continues to improve, becoming the sixth-largest economy in the world in 2015 and

moving ahead of Brazil and France in ranking. The California 2016–2017 state budget was enacted, with $2 billion added to the rainy day fund, leaving the fund just over half its goal of being 10% of revenues. This was the second year in a row that California did not need to issue revenue anticipation notes for cash-flow purposes. California has a strong legal framework for municipal bonds, which we believe may benefit investors by increasing bondholder security. One example of this is legislation that California passed in July 2015 that requires voter-approved local GO bonds to be secured by a statutory lien on all revenues received for the purposes of repaying the principal and interest on the bonds. An important aspect of this legislation is that it clarifies that bondholders are secured by law and can expect to be first in line for repayment should a municipality enter bankruptcy. In addition to improving bondholder protection in the event of a bankruptcy, it contributed to a tightening in credit spreads in the local GO sector.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 7

Rates may be lower for longer, making issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. We expect volatility in rates but don’t see any catalyst for materially higher rates or a steeper yield curve in the near term. In terms of Fund positioning, we expect to remain long duration relative to the index and to focus purchases on the steeper part of the yield curve to benefit from the roll down, the natural decline in yields as maturities shorten. We also expect to maintain an overweight to the A-rated and BBB-rated credit tiers. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo California Limited-Term Tax-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,020.72	$	4.02		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.89	$	4.02		0.80	%
Class C
Actual	$	1,000.00	$	1,016.92	$	7.77		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.16	$	7.77		1.55	%
Administrator Class
Actual	$	1,000.00	$	1,021.94	$	3.02		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,021.53	$	2.50		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.39	$	2.50		0.50	%

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.65%
California: 95.65%
Acalanes CA Union High School Refunding (GO Revenue)		5.00	%		8-1-2022	$	2,685,000	$	3,311,780
Adelanto CA School District CAB Series B (GO Revenue, National Insured) ¤		0.00			9-1-2018		1,800,000		1,644,678
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		3,000,000		2,906,487
Alameda CA Corridor Transportation Authority (Airport Revenue)		5.00			10-1-2025		750,000		956,453
Alameda County CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		4.00			12-1-2019		1,000,000		1,108,310
Alameda County CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		5.00			12-1-2021		1,000,000		1,205,200
Albany CA Limited Obligation Improvement Bond Act of 1915 (Miscellaneous Revenue, Ambac Insured)		4.75			9-2-2019		1,305,000		1,314,735
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured)		6.50			8-1-2017		155,000		162,728
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured)		6.50			8-1-2018		475,000		522,244
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured)		6.50			8-1-2020		1,605,000		1,916,482
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2016		305,000		304,823
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2018		3,245,000		3,171,176
Anaheim CA PFA Refunding Bond Series A (Miscellaneous Revenue)		5.00			5-1-2017		1,250,000		1,295,763
Anaheim CA Redevelopment Agency Merged Project Area Series A (Tax Revenue, AGM Insured)		4.50			2-1-2018		875,000		923,965
Association of Bay Area Governments Finance Authority For Nonprofit Corporations Children’s Hospital (Health Revenue)		4.25			12-1-2016		1,305,000		1,325,906
Association of Bay Area Governments Finance Authority For Nonprofit Corporations Episcopal Senior Community (Housing Revenue)		5.00			7-1-2016		1,045,000		1,045,115
Association of Bay Area Governments Finance Authority For Nonprofit Corporations Jackson Laboratory (Miscellaneous Revenue)		5.00			7-1-2019		730,000		815,242
Association of Bay Area Governments Finance Authority For Nonprofit Corporations O’Connor Woods (Health Revenue)		4.00			1-1-2019		955,000		1,031,314
Association of Bay Area Governments Finance Authority For Nonprofit Corporations Sharp Healthcare Series A (Health Revenue)		5.00			8-1-2019		500,000		564,595
Banning CA Unified School District Refunding (GO Revenue, AGM Insured)		5.00			8-1-2027		510,000		656,380
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2019		420,000		474,810
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2021		550,000		657,916
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2023		725,000		907,881
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series B (Transportation Revenue) ±		1.50			4-1-2047		14,000,000		14,141,120
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.22			4-1-2045		5,000,000		5,002,400
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.88			4-1-2047		10,500,000		10,741,920
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series E (Transportation Revenue) ±		2.00			4-1-2034		5,000,000		5,202,350

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

10 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Brentwood CA Infrastructure Financing Authority Sub Series A (Miscellaneous Revenue, AGM Insured)		4.00	%		9-2-2017	$	3,825,000	$	3,951,378
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		3.00			9-2-2017		995,000		1,020,472
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		3.00			9-2-2018		1,030,000		1,077,905
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		4.00			9-2-2021		1,135,000		1,291,006
California (GO Revenue) ±		4.00			12-1-2027		9,015,000		9,297,710
California (GO Revenue, Ambac Insured)		5.00			10-1-2016		10,000		10,041
California (GO Revenue)		5.00			10-1-2021		6,795,000		8,180,365
California (GO Revenue)		5.00			9-1-2022		2,240,000		2,756,656
California (GO Revenue)		5.00			11-1-2022		2,500,000		3,090,800
California (GO Revenue)		5.00			9-1-2023		10,730,000		13,520,015
California (GO Revenue)		5.00			10-1-2023		8,400,000		10,605,672
California (GO Revenue)		5.00			9-1-2025		9,000,000		11,700,810
California (GO Revenue)		5.25			10-1-2022		2,750,000		3,433,485
California Community College Financing Authority Shasta-Tehama-Trinity Joint District Series A (Miscellaneous Revenue)		2.25			5-1-2017		435,000		439,672
California Communities Transportation Total Road Improvement Certificate of Participation Series B (Tax Revenue)		3.00			6-1-2017		380,000		386,433
California Communities Transportation Total Road Improvement Certificate of Participation Series B (Tax Revenue)		4.00			6-1-2018		390,000		410,771
California Department of Veterans Affairs Home Purchase Series A (Housing Revenue)		3.50			12-1-2021		1,795,000		1,997,081
California Department of Water Resources Central Valley Project Water System Series AM (Water & Sewer Revenue)		5.00			12-1-2017		6,595,000		7,019,256
California Economic Recovery Refunding Series A (Tax Revenue)		5.00			7-1-2018		3,800,000		4,133,944
California Health Facilities Financing Refunding (Health Revenue)		5.00			8-15-2027		450,000		590,535
California HFA AMT Home Mortgage Series E (Housing Revenue)		5.00			2-1-2042		15,000		15,053
California HFA AMT Home Mortgage Series G (Housing Revenue)		5.50			8-1-2042		60,000		61,500
California HFA Home Mortgage Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		3.75			8-1-2020		745,000		813,354
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.00			3-1-2019		700,000		779,268
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.25			3-1-2023		4,000,000		4,763,200
California HFFA Chinese Hospital Associates (Health Revenue)		5.00			6-1-2019		200,000		222,746
California HFFA Fellowship Homes Incorporated (Health Revenue)		5.00			9-1-2019		1,135,000		1,225,289
California HFFA Memorial Health Services Series A (Health Revenue)		5.00			10-1-2023		2,475,000		3,034,870
California HFFA St. Joseph Health System Series B (Health Revenue) ±		5.00			7-1-2043		2,000,000		2,108,880
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		6.00			8-1-2023		805,000		891,425
California Municipal Finance Authority Community Medical Centers Series A (Health Revenue)		5.00			2-1-2023		735,000		886,138
California Municipal Finance Authority Community Medical Centers Series A (Health Revenue)		5.00			2-1-2024		500,000		614,295
California Municipal Finance Authority Mobile Senior Caritas Affordable Housing Incorporated Projects Series A (Housing Revenue)		5.00			8-15-2019		515,000		571,284
California Municipal Finance Authority Northbay Healthcare Series A (Health Revenue) ±		2.49			11-1-2027		5,000,000		5,001,850
California Municipal Finance Authority Palmdale Aerospace Academy Project (Education Revenue) 144A		4.00			7-1-2026		2,000,000		2,144,900
California Municipal Finance Authority Peppertree Senior Apartments Series A (Housing Revenue, FHLMC Insured, FHLMC LIQ)		2.80			6-1-2023		2,500,000		2,678,250
California Municipal Finance Authority Village Grove Apartments Series A (Housing Revenue, FHLMC Insured, FHLMC LIQ)		3.10			12-1-2021		1,000,000		1,084,590

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California PCFA Republic Services Incorporated Project Series C (Resource Recovery Revenue) ±		5.25	%		6-1-2023	$	3,245,000	$	3,433,632
California Public Works Board Capital Project Series G (Miscellaneous Revenue)		5.00			11-1-2020		3,000,000		3,517,680
California Public Works Board Department of Corrections & Rehabilitation Series A (Miscellaneous Revenue)		6.50			9-1-2017		835,000		866,563
California Public Works Board Department of Corrections & Rehabilitation Series C (Miscellaneous Revenue)		4.00			6-1-2018		1,625,000		1,726,465
California Public Works Board Department of Corrections & Rehabilitation Series C (Miscellaneous Revenue)		5.00			10-1-2022		1,500,000		1,841,340
California Public Works Board Judicial Council Projects Series B (Miscellaneous Revenue)		5.00			10-1-2022		500,000		613,780
California Public Works Board Judicial Council Projects Series D (Miscellaneous Revenue)		5.00			12-1-2019		1,000,000		1,139,680
California Public Works Board Refunding Department General Service Series F (Miscellaneous Revenue)		5.00			5-1-2023		1,595,000		1,981,405
California Public Works Board Various Capital Projects Series I (Miscellaneous Revenue)		5.00			11-1-2020		1,250,000		1,465,700
California Refunding Bond (GO Revenue)		5.25			9-1-2022		4,000,000		4,982,040
California School Finance Authority Coastal Academy Project Series A (Education Revenue)		5.00			10-1-2022		375,000		413,629
California School Finance Authority Refunding Aspire Public School (Education Revenue) 144A		5.00			8-1-2022		1,545,000		1,816,101
California School Finance Authority Refunding Aspire Public School (Education Revenue) 144A		5.00			8-1-2023		800,000		955,488
California School Finance Authority Refunding Aspire Public School (Education Revenue) 144A		5.00			8-1-2024		350,000		423,668
California School Finance Authority Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2021		400,000		440,172
California School Finance Authority Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2026		500,000		563,965
California State Index Series E (GO Revenue) ±		1.16			12-1-2029		5,000,000		5,002,000
California Statewide CDA Adventist Health Systems West Series A (Health Revenue)		5.00			3-1-2024		800,000		997,976
California Statewide CDA American Baptist Homes West Series B-3 (Health Revenue)		2.10			10-1-2019		2,930,000		2,931,875
California Statewide CDA California Baptist University Series A (Education Revenue)		5.13			11-1-2023		715,000		791,276
California Statewide CDA California Baptist University Series B (Education Revenue)		3.50			11-1-2018		705,000		718,148
California Statewide CDA Episcopal Communities and Services (Health Revenue)		4.00			5-15-2017		450,000		462,200
California Statewide CDA Eskaton Properties Incorporated Obligated Group (Health Revenue)		4.00			11-15-2016		1,000,000		1,010,370
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.52			7-1-2040		1,000,000		1,000,000
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2021		500,000		589,725
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2022		395,000		474,861
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2023		500,000		610,315
California Statewide CDA Kaiser Permanente Series E (Health Revenue) ±		5.00			4-1-2044		4,000,000		4,142,320
California Statewide CDA Redwoods Project (Health Revenue)		3.00			11-15-2018		400,000		421,896
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2019		250,000		283,908
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2020		210,000		245,072
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2021		200,000		238,610
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2022		200,000		243,542
California Statewide CDA School Facilities (Education Revenue)		5.88			7-1-2022		1,735,000		1,952,257

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

12 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series B (Health Revenue)		3.00	%		8-1-2021	$	5,200,000	$	5,234,944
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series D (Health Revenue)		4.75			8-1-2020		2,000,000		2,009,340
California Statewide CDA St. Joseph Hospital (Health Revenue, AGM Insured)		4.50			7-1-2018		400,000		412,896
California Statewide CDA University of California Irvine East Campus Apartments Phase I (Housing Revenue)		5.00			5-15-2017		1,000,000		1,037,280
California Statewide Community Loma Linda University Medical Series A (Health Revenue) 144A		5.00			12-1-2025		2,465,000		3,007,054
California Statewide Community Refunding University California Irvine East (Housing Revenue)		5.00			5-15-2025		1,000,000		1,265,520
California Statewide Community Refunding University California Irvine East (Housing Revenue)		5.00			5-15-2026		1,000,000		1,284,570
California Statewide Community Refunding University California Irvine East (Housing Revenue)		5.00			5-15-2027		1,000,000		1,277,960
California Statewide HFFA Casa Colina Obligated Group (Health Revenue)		4.00			4-1-2017		400,000		406,740
California Statewide HFFA Casa Colina Obligated Group (Health Revenue)		5.00			4-1-2018		400,000		421,836
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2024		350,000		365,722
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2025		350,000		365,586
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2026		375,000		391,699
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2027		300,000		313,242
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2017		415,000		425,130
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2018		300,000		313,290
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2019		540,000		571,412
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2020		775,000		892,374
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2021		855,000		1,006,771
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2022		600,000		720,612
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2020		2,295,000		2,645,263
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2021		2,425,000		2,861,233
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2022		2,550,000		3,071,526
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2023		1,735,000		2,127,821
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue, AGM Insured)		5.00			8-1-2024		1,770,000		2,221,545
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series B (Tax Revenue)		4.00			8-1-2017		435,000		450,099
Central California Unified School District Refunding (GO Revenue, AGM Insured)		4.00			7-1-2020		500,000		563,010
Central California Unified School District Refunding (GO Revenue, AGM Insured)		5.00			7-1-2021		400,000		478,748
Central California Unified School District Refunding (GO Revenue, AGM Insured)		5.00			7-1-2022		750,000		918,735
Centralia CA School District (GO Revenue, AGM Insured)		4.00			8-1-2018		375,000		399,975
Chino CA PFA Local Agency Series A (Tax Revenue, AGM Insured)		5.00			9-1-2022		1,830,000		2,189,339
Chino CA PFA Local Agency Series A (Tax Revenue, AGM Insured)		5.00			9-1-2024		660,000		818,631
Chula Vista CA Certificate of Participation Refunding Bond Police Facility Project (Miscellaneous Revenue)		5.00			10-1-2021		720,000		857,441
Chula Vista CA Elementary School District (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2024		1,370,000		1,730,927

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00	%		8-1-2020	$	2,455,000	$	2,745,206
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2021		2,230,000		2,538,119
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2022		1,000,000		1,156,600
Colton CA PFA Series A (Utilities Revenue)		4.00			4-1-2019		415,000		450,433
Commerce CA Community Development Commission Refunding Series A (Tax Revenue, AGM Insured)		5.00			8-1-2026		1,710,000		2,204,139
Commerce CA Community Development Commission Refunding Series A (Tax Revenue, AGM Insured)		5.00			8-1-2027		1,760,000		2,236,256
Commerce CA RDA CAB Project #1 (Tax Revenue) ¤		0.00			8-1-2021		2,110,000		1,655,633
Compton CA Community College District (GO Revenue)		5.00			7-1-2017		1,225,000		1,271,893
Compton CA Unified School District CAB Election of 2002 Series D (GO Revenue, Ambac Insured) ¤		0.00			6-1-2017		3,075,000		3,040,652
Corcoran CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured) ±		2.70			12-1-2039		4,500,000		4,532,085
Corona Norco CA Unified School District Junior Lien Series B (Tax Revenue)		2.50			9-1-2016		445,000		446,375
Cotati Rohnert Park CA Unified School District Series B (GO Revenue, AGM Insured)		5.00			8-1-2020		2,275,000		2,639,978
Culver City CA Redevelopment Agency CAB Tax Allocation Series A (Tax Revenue) ¤		0.00			11-1-2019		2,575,000		2,388,467
Cypress CA Elementary School District (Miscellaneous Revenue)		2.00			5-1-2017		335,000		338,229
Cypress CA Elementary School District (Miscellaneous Revenue)		2.25			5-1-2018		455,000		466,020
Delano CA Certificate of Participation Delano Regional Medical Center (Health Revenue)		4.00			1-1-2017		1,305,000		1,322,604
Delano CA Financing Authority Police Station Project Series A (Miscellaneous Revenue)		4.00			12-1-2016		1,040,000		1,054,144
Desert Sands CA Unified School District Certification of Participation (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2024		1,500,000		1,867,725
Deutsche Bank SPEARS/LIFERS Trust Series DB-649 (GO Revenue, National Insured, Deutsche Bank LIQ) 144Aø		0.63			6-1-2031		8,501,000		8,501,000
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			9-1-2019		210,000		229,142
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2021		250,000		296,595
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2022		250,000		302,955
Dixon CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2021		1,210,000		1,442,114
Dixon CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2022		1,285,000		1,566,197
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2016		460,000		462,139
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2017		475,000		485,222
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2018		485,000		502,761
El Cerrito CA Redevelopment Agency Tax Allocation Series A (Tax Revenue, National Insured)		5.00			7-1-2019		355,000		355,742
El Dorado CA Community Facilities District #19-1 (Tax Revenue)		4.00			9-1-2018		1,000,000		1,063,610
El Dorado CA Community Facilities District #92-1 (Tax Revenue)		4.00			9-1-2017		1,135,000		1,174,021
El Monte CA Union High School Refunding (GO Revenue)		5.00			6-1-2021		1,315,000		1,562,575
Encinitas CA Community Facilities District Ranch Public Improvements Project (Tax Revenue)		4.00			9-1-2017		1,180,000		1,222,020
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2020		1,000,000		1,160,430
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2021		3,170,000		3,763,995
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2022		2,395,000		2,898,788
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2023		1,025,000		1,264,020

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

14 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00	%		9-1-2019	$	1,000,000	$	1,124,680
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2020		1,000,000		1,153,910
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2021		1,250,000		1,476,800
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2022		1,250,000		1,507,663
Foothill-Eastern CA Transportation Corridor Agency Series B1 (Transportation Revenue) ±		5.00			1-15-2053		8,750,000		9,085,038
Fowler CA Unified School District School Facilities Improvement District #1 (GO Revenue, National Insured)		5.20			7-1-2020		1,420,000		1,517,100
Fremont CA Community Facilities District (Tax Revenue)		5.00			9-1-2024		1,000,000		1,216,050
Fresno County CA Financing Authority Lease Series A (Miscellaneous Revenue, AGM Insured)		3.00			8-1-2019		970,000		1,035,941
Fullerton CA Community Facilities District (Tax Revenue)		3.50			9-1-2017		565,000		581,153
Fullerton CA Community Facilities District (Tax Revenue)		4.00			9-1-2018		610,000		647,716
Fullerton CA Community Facilities District (Tax Revenue)		4.00			9-1-2019		665,000		722,576
Fullerton CA School District Financing Authority Series A (Tax Revenue, AGM Insured)		4.00			9-1-2018		400,000		425,444
Fullerton CA School District Financing Authority Series A (Tax Revenue, AGM Insured)		3.00			9-1-2017		450,000		460,557
Garden Grove CA Agency Community Refunding Garden Grove Community Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		770,000		882,374
Garden Grove CA Agency Community Refunding Garden Grove Community Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2022		3,015,000		3,680,260
Goleta CA Water District Certificate of Participation Series A (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2019		125,000		142,931
Goleta CA Water District Certificate of Participation Series A (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2020		140,000		164,741
Hawthorne CA School District CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2016		155,000		154,907
Hawthorne CA School District CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2017		165,000		163,055
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2017		705,000		720,031
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2018		725,000		755,697
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2019		750,000		795,803
Hayward CA Unified School District Certificate of Participation (GO Revenue, AGM Insured)		5.00			8-1-2022		500,000		606,800
Hayward CA Unified School District Certificate of Participation (GO Revenue, AGM Insured)		5.00			8-1-2023		805,000		996,373
Hemet CA Unified School District Certificate of Participation (Miscellaneous Revenue) ±		1.06			10-1-2036		4,905,000		4,904,804
Huntington Beach CA City School District Election of 2002 (GO Revenue)		4.00			8-1-2019		2,875,000		3,164,426
Huntington Beach CA City School District Election of 2002 (GO Revenue)		4.00			8-1-2021		505,000		581,518
Huntington Beach CA City School District Election of 2002 (GO Revenue)		5.00			8-1-2020		3,150,000		3,679,389
Imperial Beach CA RDA Palm Avenue Commercial Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2020		775,000		855,530
Imperial CA PFA Wastewater Facility (Water & Sewer Revenue)		4.00			10-15-2016		265,000		267,390
Inglewood CA PFA (Miscellaneous Revenue)		5.00			8-1-2016		1,000,000		1,003,570
Irvine CA Limited Obligation Improvement Bonds Reassessment District #12-1 (Miscellaneous Revenue)		4.00			9-2-2018		1,325,000		1,413,338

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Irvine CA Limited Obligation Improvement Bonds Reassessment District #15-2 (Miscellaneous Revenue)		5.00	%		9-2-2023	$	800,000	$	968,488
Irvine CA Limited Obligation Improvement Bonds Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2024		850,000		1,040,808
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2020		320,000		372,170
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2021		340,000		406,620
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2022		365,000		446,833
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2023		375,000		470,573
Jurupa CA PFA Series A (Tax Revenue)		5.00			9-1-2020		550,000		636,350
Keyes CA Unified School District CAB (GO Revenue, National Insured) ¤		0.00			8-1-2016		155,000		154,881
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2019		950,000		1,073,975
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2020		1,045,000		1,219,243
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2021		805,000		965,525
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2019		1,150,000		1,292,094
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2020		1,045,000		1,202,617
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2021		565,000		675,723
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2022		615,000		749,470
Lake Elsinore CA School Financing Authority (Tax Revenue)		3.00			9-1-2016		1,420,000		1,423,223
Lee Lake CA Public Financing Authority Senior Lien Series A (Tax Revenue)		4.00			9-1-2017		1,620,000		1,675,696
Los Alamitos CA Unified School BAN School Facilities Improvement (GO Revenue) ¤		0.00			9-1-2016		1,000,000		999,140
Los Angeles CA Convention & Exhibit Center Authority Series A (Miscellaneous Revenue)		5.00			8-15-2020		2,000,000		2,185,640
Los Angeles CA Municipal Improvement Corporation Series A (Miscellaneous Revenue)		5.00			3-1-2022		3,000,000		3,624,240
Los Angeles CA Municipal Improvement Corporation Series A (Miscellaneous Revenue)		5.00			5-1-2023		475,000		589,722
Los Angeles CA Municipal Improvement Corporation Series B (Miscellaneous Revenue)		5.00			5-1-2021		300,000		355,836
Los Angeles CA Municipal Improvement Corporation Series B (Miscellaneous Revenue)		5.00			5-1-2022		350,000		424,603
Los Angeles CA Municipal Improvement Corporation Series B (Miscellaneous Revenue)		5.00			5-1-2023		350,000		434,532
Los Angeles CA Public Works Series D (Miscellaneous Revenue)		5.00			12-1-2026		1,575,000		2,033,246
Los Angeles CA Public Works Series D (Miscellaneous Revenue)		5.00			12-1-2027		1,605,000		2,060,290
Los Angeles CA Unified School District Certificate of Participation Headquarters Building Projects Series B (Miscellaneous Revenue)		5.00			10-1-2025		1,875,000		2,276,794
Los Angeles CA Unified School District Election of 2004 Series F (GO Revenue, FGIC Insured)		5.00			7-1-2020		2,500,000		2,500,300
Los Angeles CA Unified School District Refunding Bond Series A (GO Revenue)		5.00			7-1-2026		10,430,000		13,585,701
Los Angeles CA Unified School District Refunding Bond Series A (GO Revenue)		5.00			7-1-2027		2,500,000		3,238,000
Los Angeles CA Unified School District Refunding Bond Series D (GO Revenue)		5.00			7-1-2023		6,180,000		7,769,434
Los Angeles County CA Capital Asset Leasing Corporation Series B (Miscellaneous Revenue, Ambac Insured)		6.00			12-1-2016		3,285,000		3,359,767
Los Angeles County CA Certificate of Participation CAB Disney Package Project (Miscellaneous Revenue) ¤		0.00			3-1-2017		675,000		672,017
Los Angeles County CA Community Facilities District #5 Rowland Heights Area (Tax Revenue, AGM Insured)		5.00			9-1-2019		615,000		619,914
Los Angeles County CA Metropolitan Transportation Authority Series A (Tax Revenue)		5.00			7-1-2017		7,880,000		8,236,728
Los Angeles County CA Public Works Financing Authority Master Project Series B (Miscellaneous Revenue, National Insured)		5.00			9-1-2018		400,000		403,024
Los Angeles County CA Public Works Multiple Capital Projects II (Miscellaneous Revenue)		5.00			8-1-2020		500,000		582,840

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

16 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Los Angeles County CA Redevelopment Refunding Authority Hollywood Redevelopment Project (Tax Revenue)		5.00	%		7-1-2019	$	1,780,000	$	2,001,948
Los Angeles County CA Redevelopment Refunding Authority Series D (Tax Revenue)		5.00			9-1-2018		2,570,000		2,799,116
Los Angeles County CA Redevelopment Refunding Authority Series D (Tax Revenue)		5.00			9-1-2019		2,545,000		2,859,460
Los Angeles County CA Regional MonteCedro Incorporated Project Series B1 (Health Revenue)		3.00			11-15-2021		2,750,000		2,756,655
Los Angeles County CA Schools Regionalized Business Services Corporation Series A (Miscellaneous Revenue, AGM Insured)		3.00			9-1-2017		595,000		608,959
Los Angeles County CA Schools Regionalized Business Services Corporation Series B (Miscellaneous Revenue, National Insured)		5.00			6-1-2017		1,010,000		1,048,016
Lynwood CA Unified School District BAN Series A (GO Revenue)		5.00			8-1-2017		3,000,000		3,141,480
Mendocino County CA Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		3.25			6-1-2018		1,115,000		1,168,453
Mendocino County CA Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2017		1,085,000		1,108,414
Menifee CA Union School District Public Series A (Tax Revenue)		4.00			9-1-2022		540,000		620,854
Merced CA Union High School CAB Series A (GO Revenue, National Insured) ¤		0.00			8-1-2019		2,190,000		2,095,348
Modesto CA Community Facilities District #2004-1 Village One #2 (Tax Revenue)		4.00			9-1-2018		595,000		632,848
Modesto CA Community Facilities District #2004-1 Village One #2 (Tax Revenue)		4.50			9-1-2019		605,000		666,758
Modesto CA Irrigation District Electric Refunding Bond Series A (Utilities Revenue)		5.00			7-1-2020		500,000		583,100
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2016		725,000		727,291
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2017		755,000		782,127
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2018		785,000		835,766
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2019		815,000		890,502
Montclair CA PFA Public Facilities Projects (Miscellaneous Revenue, AGM Insured)		4.00			10-1-2017		500,000		519,770
Mountain View Whisman CA Refunding (GO Revenue)		5.00			9-1-2019		1,000,000		1,135,670
Mountain View Whisman CA Refunding (GO Revenue)		5.00			9-1-2020		1,600,000		1,876,432
Murrieta CA PFA (Tax Revenue)		5.00			9-1-2017		870,000		910,586
Murrieta Valley CA Unified School District Refunding (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2027		2,000,000		2,605,960
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2017		955,000		981,816
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2018		1,025,000		1,076,117
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2019		1,000,000		1,069,890
Newhall CA School District BAN School Facilities Improvement (GO Revenue) ¤		0.00			8-1-2017		9,000,000		8,932,770
Newhall CA School District CAB BAN (Miscellaneous Revenue) ¤		0.00			8-1-2018		14,680,000		14,486,518
North City CA West School Facilities Financing Authority Series C (Tax Revenue, Ambac Insured)		5.00			9-1-2018		1,125,000		1,218,611
Norwalk CA Community Facilities Financing Series A (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2019		280,000		303,447
Norwalk CA Community Facilities Financing Series A (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2020		350,000		386,369
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2018		610,000		646,826
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2019		625,000		677,338
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2020		650,000		717,542
Oak Valley CA Hospital District Refunding (GO Revenue)		4.00			7-1-2020		500,000		554,140
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2021		950,000		1,124,268
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2022		750,000		906,383
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2023		755,000		927,518

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 17

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Oakland CA Joint Powers Financing Authority Series A1 (Miscellaneous Revenue, AGC Insured)		5.25	%		1-1-2017	$	1,885,000	$	1,928,751
Oakland CA Redevelopment Agency Refunding Sub Housing Set-Aside Series A (Tax Revenue, Ambac Insured)		5.00			9-1-2018		2,000,000		2,015,120
Oakland CA Successor Agency Refunding Sub Lien Central District Redevelopment Project (Tax Revenue)		4.00			9-1-2018		3,215,000		3,432,656
Oakland CA Unified School District Alameda County Election of 2006 Series A (GO Revenue)		3.00			8-1-2016		540,000		541,021
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2016		3,425,000		3,437,364
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2017		2,250,000		2,346,300
Oakland CA Unified School District Alameda County Election of 2012 Series A (GO Revenue)		5.00			8-1-2022		750,000		888,113
Oakland CA Unified School District Alameda County Election of 2012 Series A (GO Revenue)		5.00			8-1-2024		600,000		736,446
Orange County CA Community Facilities #2015-1 Esencia Village Series A (Tax Revenue)		5.00			8-15-2023		375,000		464,959
Orange County CA Community Facilities #2015-1 Esencia Village Series A (Tax Revenue)		5.00			8-15-2025		335,000		419,092
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2018		200,000		218,420
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2019		1,085,000		1,226,104
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			3-1-2020		1,110,000		1,267,132
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2020		1,140,000		1,318,980
Orange Cove CA Irrigation District (Water & Sewer Revenue)		3.15			2-1-2019		660,000		661,525
Oxnard CA Financing Authority Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			6-1-2021		735,000		865,845
Oxnard CA Harbor District Series A (Airport Revenue)		5.00			8-1-2018		2,275,000		2,447,422
Palm Springs CA Financing Authority Convention Center Project Series A (Miscellaneous Revenue)		3.00			11-1-2017		1,280,000		1,315,891
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		2.50			9-2-2016		330,000		330,878
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		3.00			9-2-2018		415,000		430,749
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		4.00			9-2-2021		450,000		501,170
Palo Verde CA Unified School District FlexFund Program (Education Revenue)		4.80			9-1-2027		736,393		784,531
Palomar CA Palomar County CAB Election of 2006 Series B (GO Revenue) ¤		0.00			8-1-2016		250,000		249,890
Palomar CA Palomar County CAB Election of 2006 Series B (GO Revenue) ¤		0.00			8-1-2017		880,000		872,854
Palomar Pomerado CA Health System CAB (GO Revenue, National Insured) ¤		0.00			8-1-2017		2,000,000		1,977,920
Palos Verdes Peninsula CA Refunding Series B (GO Revenue) %%		5.00			11-1-2023		740,000		932,718
Perris CA Community Facilities District Refunding #01-2 Series A (Tax Revenue)		2.00			9-1-2016		635,000		636,410
Perris CA Community Facilities District Refunding #01-2 Series A (Tax Revenue)		2.00			9-1-2017		670,000		675,199
Pioneers Memorial Healthcare District California Refunding (GO Revenue)		4.00			10-1-2017		810,000		837,232
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2021		1,885,000		2,234,121
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			9-1-2021		2,000,000		2,369,460
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2022		1,305,000		1,579,507
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2023		780,000		963,066
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			9-1-2025		3,500,000		4,413,465

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

18 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Placentia CA Redevelopment Agency Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00	%		8-1-2019	$	580,000	$	631,753
Placentia CA Redevelopment Agency Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		600,000		688,014
Placentia Yorba Linda CA Refunding Project Series A (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2024		1,000,000		1,264,720
Placentia Yorba Linda CA Refunding Project Series A (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2026		400,000		506,204
Pomona CA Public Financing Authority Unrefunded Balance Merfed Redevelopment – Series AH (Tax Revenue, Ambac Insured)		5.25			2-1-2018		725,000		727,973
Pomona Valley CA Educational Joint Powers Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2016		805,000		807,399
Pomona Valley CA Educational Joint Powers Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2017		1,635,000		1,693,517
Poway CA Unified School District PFA (Tax Revenue)		3.00			9-15-2017		625,000		639,694
Poway CA Unified School District PFA (Tax Revenue)		3.00			9-15-2018		755,000		786,023
Poway CA Unified School District PFA (Tax Revenue)		4.00			9-15-2020		335,000		370,483
Poway CA Unified School District PFA (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2020		300,000		333,597
Poway CA Unified School District PFA (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		185,000		208,523
Poway CA Unified School District PFA Series B (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2024		1,115,000		1,374,104
Poway CA Unified School District PFA Series B (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2025		775,000		970,595
Poway CA Unified School District Special Community Facilities District #6-4S Ranch (Tax Revenue)		4.00			9-1-2017		495,000		512,018
Poway CA Unified School District Special Community Facilities District #6-4S Ranch (Tax Revenue)		4.00			9-1-2018		445,000		472,514
Rancho Santa Fe CA Community Services District Superior Lien Series A (Tax Revenue)		3.50			9-1-2016		725,000		728,292
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2016		225,000		224,876
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2018		345,000		336,182
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2020		460,000		432,179
Riverside CA Community College District Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2020		535,000		506,688
Riverside CA PFA Local Measure Certificate of Participation Riverside Pavement Rehabilitation Project (Tax Revenue, AGM Insured)		5.00			6-1-2023		845,000		1,020,583
Riverside CA Unified School District Financing Authority Superior Lien Series A (Miscellaneous Revenue)		4.00			9-1-2018		1,735,000		1,842,275
Riverside County CA Asset Leasing Corporation County Administrative Center Refunding Project (Miscellaneous Revenue)		4.00			11-1-2016		640,000		647,379
Riverside County CA Asset Leasing Corporation County Administrative Center Refunding Project (Miscellaneous Revenue)		4.00			11-1-2017		490,000		511,418
Riverside County CA Asset Leasing Corporation Riverside Hospital Project (Miscellaneous Revenue, National Insured) ¤		0.00			6-1-2019		1,000,000		960,270
Riverside County CA PFA Indian Wells Project Series A (Tax Revenue, AGM Insured)		5.00			9-1-2020		1,610,000		1,871,818
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		4.00			5-1-2018		810,000		855,368
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		4.00			5-1-2020		795,000		876,424
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		5.00			5-1-2019		840,000		933,878
Robla CA School District Series B (GO Revenue, National Insured) ¤		0.00			8-1-2018		320,000		312,922

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 19

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Romoland CA School District Community Facilities District #2004-1 (Tax Revenue)		4.00	%		9-1-2019	$	850,000	$	926,466
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		4.00			9-1-2019		875,000		956,585
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		5.00			9-1-2020		1,050,000		1,220,762
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		5.00			9-1-2021		500,000		597,810
Sacramento CA City Financing Refunding Master Lease Program Facilities (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2022		800,000		983,336
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2019		1,050,000		1,164,272
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2020		1,185,000		1,355,048
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2021		830,000		974,188
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2022		775,000		930,535
Sacramento CA City Schools Joint Powers Financing Authority Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2023		815,000		1,000,429
Sacramento CA District Refunding Series D (Utilities Revenue) %%		5.00			8-15-2027		3,250,000		4,329,033
Sacramento CA Regional Transportation District Farebox (Transportation Revenue)		5.00			3-1-2019		500,000		552,080
Salinas CA Union High School District CAB (GO Revenue) ¤		0.00			8-1-2020		5,000,000		4,688,900
San Bernardino County CA Certificate of Participation Arrowhead Project Series A (Miscellaneous Revenue)		5.50			8-1-2020		1,000,000		1,143,420
San Bernardino County CA Certificate of Participation Justice Center Airport Improvements (Miscellaneous Revenue, National Insured)		5.00			7-1-2016		430,000		430,047
San Bernardino County CA Certificate of Participation Medical Centre Financing Project (Miscellaneous Revenue, National Insured)		5.50			8-1-2017		590,000		603,240
San Buenaventura CA Community Mental Health System (Health Revenue)		6.00			12-1-2019		2,000,000		2,260,020
San Buenaventura CA Community Mental Health System (Health Revenue)		6.50			12-1-2021		2,585,000		3,143,489
San Diego CA Community Facilities District #3 (Tax Revenue)		5.00			9-1-2016		415,000		418,357
San Diego CA Public Facilities Financing Authority Refunding Ballpark (Miscellaneous Revenue)		5.00			10-15-2026		1,500,000		1,931,370
San Diego CA Public Facilities Financing Authority Refunding Ballpark (Miscellaneous Revenue)		5.00			10-15-2027		500,000		638,420
San Diego CA RDA CAB Tax Allocation Center Series A (Tax Revenue, AGM Insured) ¤		0.00			9-1-2018		635,000		616,509
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		4.00			9-1-2016		380,000		382,094
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		4.50			9-1-2017		345,000		359,097
San Diego CA Redevelopment Agency Refunding Series A (Tax Revenue)		5.00			9-1-2025		2,750,000		3,584,378
San Diego CA Redevelopment Agency Refunding Series A (Tax Revenue)		5.00			9-1-2026		1,500,000		1,936,260
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		3.00			8-1-2016		400,000		401,012
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		3.00			8-1-2017		205,000		209,895
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		4.00			8-1-2017		885,000		915,957
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		5.00			8-1-2018		500,000		544,610
San Francisco CA City & County RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		5.00			8-1-2019		555,000		624,436
San Francisco CA City & County RDFA Mission Bay North Redevelopment Series C (Tax Revenue)		4.50			8-1-2016		310,000		311,076
San Francisco CA City & County RDFA Mission Bay South Redevelopment Series A (Tax Revenue)		5.00			8-1-2020		500,000		579,705
San Francisco CA City & County RDFA Mission Bay South Redevelopment Series A (Tax Revenue)		5.00			8-1-2022		375,000		455,588

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

20 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
San Francisco CA City & County RDFA San Francisco Redevelopment Project Series B (Tax Revenue, National Insured)		5.25	%		8-1-2018	$	1,155,000	$	1,164,667
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2021		275,000		325,562
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2022		500,000		604,120
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2023		1,000,000		1,230,480
San Joaquin Hills County CA Transportation Corridor Agency Series A (Transportation Revenue)		5.00			1-15-2017		1,500,000		1,535,385
San Jose CA Airport Series A (Airport Revenue, Ambac Insured)		5.50			3-1-2018		4,350,000		4,672,727
San Jose CA Airport Series A (Airport Revenue, AGM/Ambac Insured)		5.50			3-1-2019		5,220,000		5,390,851
San Jose CA Convention Center Expansion & Renovation Project (Tax Revenue)		5.25			5-1-2023		1,465,000		1,725,843
San Jose CA Libraries & Parks Project (GO Revenue)		5.00			9-1-2017		715,000		717,881
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		4.36			8-1-2016		400,000		401,376
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		4.54			8-1-2018		1,035,000		1,038,571
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		5.00			8-1-2017		2,000,000		2,007,840
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		5.25			8-1-2019		1,125,000		1,129,613
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A-1 (Tax Revenue)		5.00			8-1-2022		800,000		913,920
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series D (Tax Revenue, Ambac Insured)		5.00			8-1-2021		2,635,000		2,749,254
San Jose CA Union Elementary School District Series B (GO Revenue)		3.00			9-1-2017		1,000,000		1,028,480
San Luis & Delta-Mendota CA Water Authority Delta Habitat Conservation & Conveyance Program Development Project Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2019		100,000		110,305
San Luis & Delta-Mendota CA Water Authority Delta Habitat Conservation & Conveyance Program Development Project Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2020		100,000		113,511
San Marcos CA PFA Series B (Tax Revenue)		3.00			9-1-2016		445,000		446,700
San Marcos CA PFA Series B (Tax Revenue)		3.00			9-1-2017		455,000		465,674
San Marcos CA PFA Series B (Tax Revenue)		4.00			9-1-2018		1,000,000		1,061,830
San Marcos CA Unified School District Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2020		220,000		255,908
San Marcos CA Unified School District Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2021		270,000		321,716
San Marcos CA Unified School District Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2022		250,000		304,608
San Mateo County CA Transportation Authority Series A (Tax Revenue, National Insured) ¤		0.00			12-1-2018		270,000		261,185
San Mateo Foster City CA School District (GO Revenue)		5.00			8-15-2020		2,000,000		2,341,520
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2021		1,775,000		2,104,014
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2022		1,865,000		2,261,797
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2023		1,945,000		2,406,782
Santa Ana CA Community Redevelopment Agency Merged Project Area Series A (Tax Revenue)		5.25			9-1-2019		1,000,000		1,130,000
Santa Ana CA Unified School District CAB Election of 2008 Series A (GO Revenue) ¤		0.00			8-1-2020		1,815,000		1,709,095
Santa Clara County CA Financing Authority Capital Projects Series A (Miscellaneous Revenue)		4.00			2-1-2024		6,000,000		6,857,880
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		4.00			8-1-2020		150,000		167,115

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 21

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		5.00	%		8-1-2021	$	125,000	$	148,151
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2022		165,000		199,708
Santa Cruz County CA Redevelopment Agency Live Oak Soquel Community Series A (Tax Revenue, National Insured)		5.25			9-1-2016		495,000		498,698
Santa Cruz County CA Redevelopment Agency Live Oak Soquel Community Series A (Tax Revenue, National Insured)		5.25			9-1-2017		495,000		519,869
Santa Cruz County CA Redevelopment Successor Agency Tax Allocation Refunding (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2019		625,000		707,331
Santa Cruz County CA Redevelopment Successor Agency Tax Allocation Refunding (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2020		1,000,000		1,166,790
Santa Fe Springs CA Community Development Commission Consolidated Redevelopment Project Series A (Tax Revenue, National Insured)		5.00			9-1-2017		750,000		784,988
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2016		215,000		215,617
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2017		220,000		226,807
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2018		230,000		243,145
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2019		225,000		243,209
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2021		345,000		386,780
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2022		425,000		482,694
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2023		405,000		464,535
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2024		420,000		486,952
Signal Hill CA Redevelopment Project #1 (Tax Revenue)		4.13			10-1-2016		550,000		554,912
Simi Valley CA Unified School District Refunding and Capital Improvement Project (Miscellaneous Revenue, Ambac Insured)		5.25			8-1-2017		380,000		388,926
Solana Beach CA School District Special Tax PFA (Tax Revenue)		3.00			9-1-2016		450,000		451,697
Solana Beach CA School District Special Tax PFA (Tax Revenue)		4.00			9-1-2018		330,000		350,404
Solana Beach CA School District Special Tax PFA (Tax Revenue)		4.00			9-1-2019		735,000		798,636
South Monterey County CA Joint Union High School District (GO Revenue) ##		3.00			8-1-2016		1,345,000		1,347,717
South Monterey County CA Joint Union High School District (GO Revenue)		3.00			8-1-2017		1,485,000		1,519,304
South San Francisco CA Unified School District BAN Series D (GO Revenue) ¤		0.00			5-15-2017		3,000,000		2,981,940
South Western CA Community College District Refunding Bond (GO Revenue)		5.00			8-1-2020		1,250,000		1,458,975
South Western CA Community College District Refunding Bond (GO Revenue)		5.00			8-1-2021		2,710,000		3,250,401
Southern CA Mono Healthcare District (GO Revenue)		3.00			8-1-2016		615,000		616,082
Southern CA Mono Healthcare District (GO Revenue)		3.00			8-1-2017		300,000		304,974
Southern CA Mono Healthcare District (GO Revenue)		4.00			8-1-2019		845,000		906,482
Southern CA Public Power Authority Refunding Canyon Power Project Series A (Utilities Revenue)		5.00			7-1-2026		1,000,000		1,195,520
Southern CA Public Power Authority Refunding Canyon Power Project Series A (Utilities Revenue)		5.00			7-1-2027		1,000,000		1,193,500
Stanislaus County CA Schools Infrastructure Financing Agency (Tax Revenue, AGM Insured)		5.00			9-1-2021		1,300,000		1,540,149
Stanton CA Redevelopment Agency Consolidated Project Series A (Tax Revenue, AGM Insured)		4.00			12-1-2017		400,000		416,944
Stanton CA Redevelopment Agency Consolidated Project Series A (Tax Revenue, AGM Insured)		4.00			12-1-2018		410,000		438,798
Successor Agency to the Morgan Hill CA Redevelopment Agency Series A (Tax Revenue)		5.00			9-1-2021		1,055,000		1,261,569
Successor Agency to the Rancho Mirage CA Redevelopment Agency Refunding Sub Lien Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			4-1-2017		460,000		470,897
Successor Agency to the Rancho Mirage CA Redevelopment Agency Refunding Sub Lien Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2018		400,000		428,380

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

22 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Successor Agency to the Rancho Mirage CA Redevelopment Agency Refunding Sub Lien Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00	%		4-1-2019	$	580,000	$	643,000
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			4-1-2018		750,000		790,200
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2018		550,000		589,023
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2019		1,450,000		1,607,499
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		4.50			9-1-2025		160,000		191,426
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2021		310,000		364,380
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2022		300,000		359,688
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2023		265,000		322,852
Successor Agency to the Richmond CA Community Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2025		150,000		188,297
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2020		405,000		471,679
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2022		445,000		541,400
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2023		470,000		582,274
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2020		365,000		425,094
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2022		240,000		291,991
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2023		460,000		569,885
Successor Agency to the Vacaville CA Redevelopment Agency Projects (Tax Revenue)		5.00			9-1-2020		600,000		694,200
Successor Agency to the Vacaville CA Redevelopment Agency Projects (Tax Revenue)		5.00			9-1-2021		600,000		710,838
Successor Agency to the Vacaville CA Redevelopment Agency Projects (Tax Revenue)		5.00			9-1-2022		1,050,000		1,266,437
Sulphur Springs CA Union School CAB Anticipation Notes Series A (Miscellaneous Revenue) ¤		0.00			1-1-2018		2,750,000		2,714,360
Sulphur Springs CA Union School District SPL Prerefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2016		75,000		75,326
Sulphur Springs CA Union School District SPL Prerefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2017		150,000		154,349
Sulphur Springs CA Union School District SPL Prerefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2018		275,000		289,080
Sulphur Springs CA Union School District SPL Prerefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2019		295,000		315,871
Sulphur Springs CA Union School District SPL Unrefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2016		75,000		75,287
Sulphur Springs CA Union School District SPL Unrefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2017		150,000		153,519
Sulphur Springs CA Union School District SPL Unrefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2018		280,000		291,822
Sulphur Springs CA Union School District SPL Unrefunded Community Facilities District #2002-1-Series A (Tax Revenue)		3.00			9-1-2019		300,000		316,674

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 23

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00	%		10-1-2023	$	1,280,000	$	1,582,797
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2024		715,000		900,178
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2025		1,575,000		2,014,724
Sweetwater CA Union High School District Public Financing Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2018		2,500,000		2,728,375
Sweetwater CA Union High School District Public Financing Authority Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2019		1,000,000		1,128,920
Sweetwater CA Union High School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2021		620,000		740,292
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2016		380,000		381,452
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2017		395,000		404,267
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2018		405,000		422,099
Temecula CA PFA Wolf Creek Community Facilities District #3-3 (Tax Revenue)		3.00			9-1-2018		870,000		906,592
Temecula Valley CA Unified School District Community Facilities District #89-1 (Tax Revenue)		3.00			9-1-2016		1,185,000		1,189,385
Temecula Valley CA Unified School District Community Facilities District #89-1 (Tax Revenue)		3.00			9-1-2017		1,250,000		1,278,488
Torrance CA RDA Referendum Senior Lien Series C (Tax Revenue, National Insured)		5.45			9-1-2018		845,000		848,034
Tracy CA Community Development Agency Refunding (Tax Revenue, AGM Insured)		5.00			8-1-2024		400,000		508,088
Tracy CA Community Development Agency Refunding (Tax Revenue, AGM Insured)		5.00			8-1-2026		750,000		961,613
Tracy CA Community Development Agency Refunding (Tax Revenue, AGM Insured)		5.00			8-1-2027		1,000,000		1,268,150
Tustin CA Community Facilities District Refunding #06-1 Legacy Columbus Villages Series A (Tax Revenue)		5.00			9-1-2024		1,145,000		1,415,953
Twin Rivers CA Unified School District Facility Bridge Funding Program (Miscellaneous Revenue, AGM Insured) ±		3.20			6-1-2027		4,150,000		4,157,470
Twin Rivers CA Unified School District Series A (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2019		385,000		423,015
Twin Rivers CA Unified School District Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		510,000		593,829
Union City CA Community Redevelopment Agency Sub Lien (Tax Revenue)		4.38			12-1-2016		475,000		482,158
University of California Series AK (Education Revenue) ±		5.00			5-15-2048		10,000,000		12,509,700
Upland CA Successor Agency Merged Project Tax Allocation (Tax Revenue, AGM Insured)		5.00			9-1-2023		1,000,000		1,223,340
Vacaville CA Unified School District Series C (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2022		675,000		824,999
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2020		350,000		388,584
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		375,000		422,681
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2022		665,000		798,678
Val Verde CA Unified School District BAN (GO Revenue)		3.00			8-1-2018		5,000,000		5,011,100
Vallejo CA Unified School District Series A (GO Revenue, National Insured)		5.90			2-1-2018		2,065,000		2,222,952
Vallejo CA Refunding Bond (Water & Sewer Revenue, National Insured)		5.00			5-1-2019		790,000		792,678
Vallejo CA Refunding Bond (Water & Sewer Revenue, National Insured)		5.00			5-1-2021		1,500,000		1,504,050
Ventura County CA Public Financing Authority Series B (Miscellaneous Revenue)		5.00			11-1-2019		375,000		427,583
Ventura County CA Public Financing Authority Series B (Miscellaneous Revenue)		5.00			11-1-2020		250,000		293,738
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		4.00			12-1-2020		250,000		280,853
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		4.00			12-1-2021		250,000		284,950

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

24 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		5.00	%		12-1-2022	$	335,000	$	408,311
Walnut CA Energy Center Authority Refunding Series A (Utilities Revenue)		5.00			1-1-2021		500,000		588,325
Walnut CA Improvement Agency Refunding Walnut Improvement Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			3-1-2017		850,000		867,289
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2017		1,125,000		1,168,403
Washington Township CA Health Refunding Series A (Health Revenue)		5.00			7-1-2023		600,000		717,738
West Contra Costa CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2016		1,055,000		1,059,104
West Covina CA Unified School District (GO Revenue, AGM Insured)		4.00			8-1-2017		325,000		337,002
West Covina CA Unified School District (GO Revenue, AGM Insured)		4.00			8-1-2018		575,000		614,537
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.25			9-1-2016		265,000		265,766
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.25			9-1-2017		270,000		274,884
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.50			9-1-2018		275,000		285,093
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.75			9-1-2019		285,000		301,370
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		5.00			9-1-2020		290,000		335,530
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2016		560,000		563,293
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2017		570,000		592,162
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2019		1,830,000		2,003,612
Western Riverside County CA Water & Wastewater Refunding-Local Agency Series A (Water & Sewer Revenue)		5.00			9-1-2027		1,940,000		2,466,264
Windsor CA Redevelopment Successor Agency Windsor Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		3.00			9-1-2017		615,000		630,787
Yuba City CA Redevelopment Agency Refunding (Tax Revenue, AGM Insured)		5.00			9-1-2025		750,000		955,155
									778,982,124
Guam: 0.28%
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			7-1-2022		400,000		472,152
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2019		1,640,000		1,851,084
									2,323,236
Indiana: 0.37%
JPMorgan Chase PUTTER/DRIVER Trust Series 3888 Indianapolis IN Industry Local Public Improvement (Miscellaneous Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.69			2-1-2019		3,000,000		3,000,000
Puerto Rico: 0.89%
Puerto Rico HFA Capital Funding Program (Housing Revenue, HUD Insured)		5.00			12-1-2016		1,815,000		1,840,864
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2016		825,000		838,910
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2017		2,045,000		2,159,275
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2018		1,250,000		1,363,350
Puerto Rico HFA Unrefunded Balance Capital Funding Program (Housing Revenue)		5.00			12-1-2019		1,000,000		1,027,850
									7,230,249
Texas: 1.46%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.54			12-1-2039		11,900,000		11,900,000
Total Municipal Obligations (Cost $771,798,630)									803,435,609

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

Portfolio of investments—June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Other: 0.31%
Nuveen California AMT-Free Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A§		0.88	%		7-1-2018	$	2,500,000	$	2,490,300
Total Other (Cost $2,500,000)									2,490,300
	Yield					Shares
Short-Term Investments: 0.50%
Investment Companies: 0.50%
Wells Fargo California Municipal Money Market Fund Premier Class (l)(u)##		0.26					4,095,697		4,095,697
Total Short-Term Investments (Cost $4,095,697)									4,095,697

Total investments in securities (Cost $778,394,327) *	99.46	%		810,021,606
Other assets and liabilities, net	0.54			4,366,729
Total net assets	100.00	%	$	814,388,335

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

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

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

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

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

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

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

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

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

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

* Cost for federal income tax purposes is $778,395,149 and unrealized gains (losses) consists of:

Gross unrealized gains	$	32,142,380
Gross unrealized losses		(515,923	)
Net unrealized gains	$	31,626,457

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

26 Wells Fargo California Limited-Term Tax-Free Fund Statement of assets and liabilities—June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $774,298,630)	$	805,925,909
In affiliated securities, at value (cost $4,095,697)		4,095,697
Total investments, at value (cost $778,394,327)		810,021,606
Receivable for investments sold		2,518,009
Receivable for Fund shares sold		1,943,518
Receivable for interest		8,386,697
Prepaid expenses and other assets		31,261
Total assets		822,901,091
Liabilities
Dividends payable		532,938
Payable for investments purchased		5,123,053
Payable for Fund shares redeemed		2,405,888
Management fee payable		222,907
Distribution fee payable		24,565
Administration fees payable		72,291
Accrued expenses and other liabilities		131,114
Total liabilities		8,512,756
Total net assets	$	814,388,335
NET ASSETS CONSIST OF
Paid-in capital	$	783,192,520
Undistributed net investment income		414,304
Accumulated net realized losses on investments		(845,768	)
Net unrealized gains on investments		31,627,279
Total net assets	$	814,388,335
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	196,629,330
Shares outstanding – Class A1		17,812,575
Net asset value per share – Class A		$11.04
Maximum offering price per share – Class A2		$11.27
Net assets – Class C	$	40,098,464
Shares outstanding – Class C1		3,633,118
Net asset value per share – Class C		$11.04
Net assets – Administrator Class	$	226,580,607
Shares outstanding – Administrator Class1		20,844,398
Net asset value per share – Administrator Class		$10.87
Net assets – Institutional Class	$	351,079,934
Shares outstanding – Institutional Class1		32,315,960
Net asset value per share – Institutional Class		$10.86

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended June 30, 2016 Wells Fargo California Limited-Term Tax-Free Fund 27

Investment income
Interest	$	18,912,155
Income from affiliated securities		12,337
Total investment income		18,924,492
Expenses
Management fee		3,135,144
Administration fees
Class A		319,088
Class C		58,217
Administrator Class		270,921
Institutional Class		236,775
Shareholder servicing fees
Class A		498,574
Class C		90,964
Administrator Class		676,196
Distribution fee
Class C		272,893
Custody and accounting fees		46,926
Professional fees		40,842
Registration fees		56,496
Shareholder report expenses		29,635
Trustees’ fees and expenses		23,384
Other fees and expenses		16,935
Total expenses		5,772,990
Less: Fee waivers and/or expense reimbursements		(516,515	)
Net expenses		5,256,475
Net investment income		13,668,017
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		307,165
Net change in unrealized gains (losses) on investments		15,198,116
Net realized and unrealized gains (losses) on investments		15,505,281
Net increase in net assets resulting from operations	$	29,173,298

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

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

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	13,668,017					$	14,078,386
Net realized gains on investments					307,165						364,309
Net change in unrealized gains (losses) on investments					15,198,116						(3,311,723	)
Net increase in net assets resulting from operations					29,173,298						11,130,972
Distributions to shareholders from
Net investment income
Class A					(3,106,736	)					(3,064,591	)
Class C					(293,867	)					(256,497	)
Administrator Class					(4,753,577	)					(8,823,966	)
Institutional Class					(5,513,837	)					(1,933,332	)1
Total distributions to shareholders					(13,668,017	)					(14,078,386	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		3,717,168			40,622,538			6,964,431			75,889,938
Class C		1,111,875			12,161,519			553,959			6,036,972
Administrator Class		7,716,091			82,975,726			32,948,716			353,805,157
Institutional Class		18,822,453			202,617,124			36,280,587	1		389,651,041	1
					338,376,907						825,383,108
Reinvestment of distributions
Class A		255,259			2,791,230			244,994			2,670,137
Class C		24,387			266,691			21,405			233,181
Administrator Class		392,993			4,230,319			408,698			4,385,625
Institutional Class		36,473			393,272			4,520	1		48,377	1
					7,681,512						7,337,320
Payment for shares redeemed
Class A		(4,482,841	)		(49,048,097	)		(7,599,782	)		(82,821,193	)
Class C		(643,275	)		(7,027,894	)		(649,944	)		(7,074,821	)
Administrator Class		(16,255,503	)		(174,866,159	)		(55,804,196	)		(599,212,171	)
Institutional Class		(12,821,779	)		(137,811,298	)		(10,006,294	)1		(107,468,540	)1
					(368,753,448	)					(796,576,725	)
Net increase (decrease) in net assets resulting from capital share transactions					(22,695,029	)					36,143,703
Total increase (decrease) in net assets					(7,189,748	)					33,196,289
Net assets
Beginning of period					821,578,083						788,381,794
End of period				$	814,388,335					$	821,578,083
Undistributed net investment income				$	414,304					$	408,545

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

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

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

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.83			$10.86			$10.66			$10.70			$10.51
Net investment income		0.17			0.16			0.18			0.21			0.27
Net realized and unrealized gains (losses) on investments		0.21			(0.03	)		0.20			(0.04	)		0.19
Total from investment operations		0.38			0.13			0.38			0.17			0.46
Distributions to shareholders from
Net investment income		(0.17	)		(0.16	)		(0.18	)		(0.21	)		(0.27	)
Net asset value, end of period		$11.04			$10.83			$10.86			$10.66			$10.70
Total return1		3.54	%		1.22	%		3.61	%		1.59	%		4.41	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.82	%		0.83	%		0.83	%		0.84	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		1.56	%		1.49	%		1.70	%		1.95	%		2.51	%
Supplemental data
Portfolio turnover rate		21	%		31	%		31	%		32	%		56	%
Net assets, end of period (000s omitted)		$196,629			$198,402			$203,306			$156,366			$162,381

¹  Total return calculations do not include any sales charges.

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

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

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.83			$10.86			$10.65			$10.70			$10.51
Net investment income		0.09			0.08			0.10			0.13			0.19
Net realized and unrealized gains (losses) on investments		0.21			(0.03	)		0.21			(0.05	)		0.19
Total from investment operations		0.30			0.05			0.31			0.08			0.38
Distributions to shareholders from
Net investment income		(0.09	)		(0.08	)		(0.10	)		(0.13	)		(0.19	)
Net asset value, end of period		$11.04			$10.83			$10.86			$10.65			$10.70
Total return1		2.76	%		0.47	%		2.94	%		0.73	%		3.63	%
Ratios to average net assets (annualized)
Gross expenses		1.58	%		1.57	%		1.58	%		1.58	%		1.59	%
Net expenses		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%
Net investment income		0.81	%		0.74	%		0.95	%		1.19	%		1.77	%
Supplemental data
Portfolio turnover rate		21	%		31	%		31	%		32	%		56	%
Net assets, end of period (000s omitted)		$40,098			$33,996			$34,920			$35,309			$33,414

¹  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo California Limited-Term Tax-Free Fund 31

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.66			$10.70			$10.49			$10.53			$10.34
Net investment income		0.19			0.18			0.20			0.23			0.29
Net realized and unrealized gains (losses) on investments		0.21			(0.04	)		0.21			(0.04	)		0.19
Total from investment operations		0.40			0.14			0.41			0.19			0.48
Distributions to shareholders from
Net investment income		(0.19	)		(0.18	)		(0.20	)		(0.23	)		(0.29	)
Net asset value, end of period		$10.87			$10.66			$10.70			$10.49			$10.53
Total return		3.78	%		1.33	%		3.95	%		1.79	%		4.65	%
Ratios to average net assets (annualized)
Gross expenses		0.77	%		0.76	%		0.77	%		0.77	%		0.77	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.75	%		1.69	%		1.90	%		2.14	%		2.72	%
Supplemental data
Portfolio turnover rate		21	%		31	%		31	%		32	%		56	%
Net assets, end of period (000s omitted)		$226,581			$309,120			$550,156			$388,872			$269,980

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

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

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			20151
Net asset value, beginning of period		$10.66			$10.75
Net investment income		0.20			0.13
Net realized and unrealized gains (losses) on investments		0.20			(0.09	)
Total from investment operations		0.40			0.04
Distributions to shareholders from
Net investment income		(0.20	)		(0.13	)
Net asset value, end of period		$10.86			$10.66
Total return2		3.79	%		0.35	%
Ratios to average net assets (annualized)
Gross expenses		0.50	%		0.50	%
Net expenses		0.50	%		0.50	%
Net investment income		1.86	%		1.82	%
Supplemental data
Portfolio turnover rate		21	%		31	%
Net assets, end of period (000s omitted)		$351,080			$280,061

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

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

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

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

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Security transactions and income recognition

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

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful

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

based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

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

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$5,759	$(5,759)

As of June 30, 2016, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $844,942 with $734,586 expiring in 2018; $110,356 expiring in 2019.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements Wells Fargo California Limited-Term Tax-Free Fund 35

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	803,435,609	$	0	$	803,435,609
Other		0		2,490,300		0		2,490,300
Short-term investments
Investment companies		4,095,697		0		0		4,095,697
Total assets	$	4,095,697	$	805,925,909	$	0	$	810,021,606

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.39% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.80% for Class A shares, 1.55% for Class C shares, 0.60% for Administrator Class shares, and 0.50% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

36 Wells Fargo California Limited-Term Tax-Free Fund Notes to financial statements

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $2,844 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $161,189,004 and $169,274,132, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $13,668,017 and $14,078,386 of tax-exempt income for the years ended June 30, 2016 and June 30, 2015, respectively.

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Unrealized gains	Capital loss carryforward
$947,238	$31,626,457	$(844,942)

8. CONCENTRATION RISK

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

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo California Limited-Term Tax-Free Fund 37

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo California Limited-Term Tax-Free Fund (formerly known as Wells Fargo Advantage California Limited-Term Tax-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo California Limited-Term Tax-Free Fund (formerly known as Wells Fargo Advantage California Limited-Term Tax-Free Fund) as of June 30, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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

TAX INFORMATION

For federal and California income tax purposes, the Fund designates 100% of its distributions paid from net investment income during the fiscal year as exempt-interest dividends under Section 852(b)(5) of the Internal Revenue Code and under Section 17145 of the California Revenue and Taxation Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 39

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

Other information (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 41

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo California Limited-Term Tax-Free Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

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

The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays Municipal Bond 1-5 Year Blend Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were lower than,in range of, or equal to the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Other information (unaudited) Wells Fargo California Limited-Term Tax-Free Fund �� 43

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

44 Wells Fargo California Limited-Term Tax-Free Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244400 08-16 A248/AR248 6-16

Annual Report

June 30, 2016

Wells Fargo California Tax-Free Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	20
Statement of operations	21
Statement of changes in net assets	22
Financial highlights	23
Notes to financial statements	28
Report of independent registered public accounting firm	33
Other information	34
List of abbreviations	40

The views expressed and any forward-looking statements are as of June 30, 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 California Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo California Tax-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The state of Illinois approved a six-month stopgap budget, a temporary but meaningful

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Terry J. Goode

Robert J. Miller

Adrian Van Poppel

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SCTAX)	10-6-1988		3.83		6.07		4.92		8.77		7.06		5.40		0.83		0.75
Class B (SGCBX)*	12-15-1997		3.10		5.96		4.86		8.10		6.28		4.86		1.58		1.50
Class C (SCTCX)	7-1-1993		7.02		6.26		4.62		8.02		6.26		4.62		1.58		1.50
Administrator Class (SGCAX)	12-15-1997		–		–		–		9.06		7.28		5.63		0.77		0.55
Institutional Class (SGTIX)	10-31-2014		–		–		–		9.14		7.30		5.64		0.50		0.48
Barclays Municipal Bond Index4	–		–		–		–		7.65		5.33		5.13		–		–
Barclays California Municipal Bond Index5	–		–		–		–		7.70		6.10		5.38		–		–

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

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to California municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁶

¹  Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and is not adjusted to reflect the Institutional Class expenses. If these expenses had been included, returns for the Institutional Class would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal Bond Index and the Barclays California Municipal 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  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁸  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/ or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed both its benchmarks, the Barclays Municipal Bond Index and the Barclays California Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n Security selection was the biggest contributor to the Fund’s outperformance, followed by duration and credit. The Fund’s exposure to the highest-quality segment underperformed that of the index, but its overweight to A-rated and BBB-rated bonds benefited from spread tightening as investors continued their search for income. Additionally, zero-coupon and 4%-coupon bonds were among the best performers during the period.

n Fear of a global economic slowdown and mixed economic data within the U.S. pushed Treasury and municipal yields sharply lower and flattened both curves.

Ultralow yields continued throughout the period

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential backup in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. Therefore, early in the period, we extended the Fund’s duration in anticipation of lower yields and positioned the Fund for a flatter yield curve. The Fund’s yield-curve positioning, which was underweight short-term and intermediate-term maturities and overweight long-term maturities, helped results. Longer-term maturities outperformed shorter-term maturities by a wide margin because the municipal curve flattened almost 150 basis points (bps; 100 bps equals 1.00%) between the 2- and 30-year maturities.

Effective maturity distribution as of June 30, 2016⁷

The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%. We kept the Fund’s duration longer than the benchmark’s and held more stable structured bonds. In addition to the flight-to-quality trade in Treasuries, municipals were also supported by the combination of strong demand from positive fund flows and lighter new-issue supply. The Fund benefited as 30-year municipals rallied almost 90 bps from the December 2015 Fed tightening until the end of the period.

Credit quality as of June 30, 2016⁸

The Fund’s overweight to bonds rated A and below contributed to results as lower-rated bonds outperformed higher-quality bonds by a wide margin. The Fund’s overweight to the local general obligation, special tax, and lease revenue sectors performed well. Although the industrial development revenue/pollution control revenue and resource recovery sectors were among the best-performing sectors in the index, our issue selection within those sectors detracted from results. Additionally, we added longer-term, 4%-coupon bonds whose yield added to the income component of the Fund’s total return.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo California Tax-Free Fund 7

California’s economy continues to improve, becoming the sixth-largest economy in the world in 2015 and moving ahead of Brazil and France in ranking. Higher taxes from Proposition 30 (temporary higher taxes were enacted amid the Great Recession and may be extended in November) and improving fundamentals for many issuers have tightened spreads for both state and local bonds. The Fund does not own any Puerto Rico bonds.

Rates may be lower for longer, making issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union (E.U.), prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. We expect volatility in rates but don’t see any catalyst for materially higher rates or a steeper yield curve in the near term. Expectations for future federal funds rate increases remain muted and data dependent. Global growth concerns in Europe and uncertainty regarding the effects of the U.K.’s withdrawal from the E.U. will likely keep rates low for some time. In terms of Fund positioning, we expect to remain long duration relative to the index and to focus purchases on the steeper part of the yield curve to benefit from the roll down. We also expect to maintain an overweight to the A-rated and BBB-rated credit tiers. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo California Tax-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,050.89	$	3.82		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.13	$	3.77		0.75	%
Class B
Actual	$	1,000.00	$	1,047.08	$	7.63		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.40	$	7.52		1.50	%
Class C
Actual	$	1,000.00	$	1,047.11	$	7.63		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.40	$	7.52		1.50	%
Administrator Class
Actual	$	1,000.00	$	1,051.85	$	2.81		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.13	$	2.77		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,052.21	$	2.45		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.48	$	2.41		0.48	%

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

Portfolio of investments—June 30, 2016 Wells Fargo California Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.92%
California: 96.67%
ABC California Unified School District CAB Election of 1997 Series B (GO Revenue, National Insured) ¤		0.00	%		8-1-2018	$	1,500,000	$	1,467,735
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		2,955,000		2,899,742
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		940,000		912,749
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		2,780,000		2,696,044
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		220,000		210,443
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured)		5.25			10-1-2021		3,000,000		3,175,380
Alameda CA Corridor Transportation Authority CAB Sub Lien Series B (Transportation Revenue, AGM Insured)		4.00			10-1-2037		2,215,000		2,450,388
Alameda CA Corridor Transportation Authority CAB Sub Lien Series B (Transportation Revenue)		5.00			10-1-2037		1,500,000		1,838,775
Alameda CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		5.00			12-1-2034		1,005,000		1,243,939
Alhambra CA Unified School District Election of 2008 Series B (GO Revenue, AGM Insured)		6.00			8-1-2029		4,100,000		5,134,102
Alisal CA Unified School District CAB Election of 2006 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2017		1,105,000		1,092,812
Alvord CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.25			8-1-2037		1,620,000		1,965,028
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2018		4,455,000		4,353,649
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2025		10,000,000		8,108,300
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2039		3,000,000		3,664,290
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		3,000,000		3,632,730
Antelope Valley CA Health Care District Series A (Health Revenue)		5.00			3-1-2046		3,000,000		3,268,590
Banning CA Financing Authority Refunding Bond Electric System Project (Utilities Revenue, AGM Insured)		5.00			6-1-2037		5,000,000		6,020,350
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2027		1,050,000		1,333,994
Bay Area CA Toll Authority Toll Bridge Series S-4 (Transportation Revenue)		5.00			4-1-2030		2,000,000		2,459,440
Bay Area CA Water Supply & Conservation Agency Series A (Water & Sewer Revenue)		5.00			10-1-2034		6,000,000		7,300,680
Belmont CA Community Facilities Special Tax District #2000-1 Library Project Series A (Tax Revenue, Ambac Insured)		5.75			8-1-2030		3,190,000		4,470,115
Brea CA PFA Tax Allocation Series A (Housing Revenue)		7.00			9-1-2023		1,000,000		1,030,890
Cabrillo CA Unified School District CAB Series A (GO Revenue, Ambac Insured) ¤		0.00			8-1-2021		1,500,000		1,375,200
California (GO Revenue)		5.25			8-1-2038		1,925,000		2,099,328
California (GO Revenue)		5.25			11-1-2040		3,000,000		3,535,470
California AMT Department of Veterans Affairs Series BZ (GO Revenue, National Insured)		5.35			12-1-2021		5,000		5,015
California Association of Bay Area Governments Finance Authority for Nonprofit Corporations O’Connor Woods Project (Health Revenue)		5.00			1-1-2043		5,000,000		5,974,600

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

10 Wells Fargo California Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date			Principal		Value
California (continued)						��
California Association of Bay Area Governments Finance Authority for Nonprofit Corporations Odd Fellows Home Project Series A (Health Revenue)		5.00	%		4-1-2042		$	1,100,000	$	1,312,817
California Educational Facilities Authority Pepperdine University Refunding Bond (Education Revenue)		5.00			10-1-2046			3,000,000		3,751,530
California Educational Facilities Authority Pepperdine University Refunding Bond (Education Revenue)		5.00			10-1-2049			5,000,000		6,216,500
California Financial Authority Charter School Palmdale Aerospace Academy Project (Education Revenue) 144A		5.00			7-1-2046			1,665,000		1,808,856
California Financial Authority Charter School Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2036			945,000		1,014,543
California Financial Authority Charter School Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2046			2,100,000		2,223,837
California HFA AMT Home Mortgage Series E (Housing Revenue)		5.00			2-1-2042			80,000		80,284
California HFA AMT Home Mortgage Series G (Housing Revenue)		5.50			8-1-2042			165,000		169,125
California HFA AMT Home Mortgage Series K (Housing Revenue)		5.30			8-1-2023			2,520,000		2,581,236
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.25			3-1-2023			3,000,000		3,572,400
California HFFA Catholic Healthcare West Series A (Health Revenue)		6.00			7-1-2029			4,000,000		4,586,360
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2030			1,830,000		2,316,432
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2035			1,000,000		1,241,390
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2045			4,500,000		5,519,880
California HFFA Prerefunded Bond Providence Health Services Series C (Health Revenue)		6.50			10-1-2038			100,000		113,048
California HFFA Sutter Health Series A (Health Revenue)		5.00			8-15-2043			1,250,000		1,519,450
California HFFA Sutter Health Series D (Health Revenue)		5.25			8-15-2031			3,100,000		3,789,564
California Infrastructure & Economic Development King City Joint Union High School (Miscellaneous Revenue)		5.75			8-15-2029			2,150,000		2,490,775
California Municipal Finance Authority California Baptist University Series A (Education Revenue) 144A		5.00			11-1-2025			1,025,000		1,144,771
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		6.75			8-1-2033			1,525,000		1,739,080
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043			1,000,000		1,159,030
California Municipal Financing Authority Certificate of Participation Community Hospitals of Central California (Health Revenue)		5.00			2-1-2020			415,000		425,512
California Municipal Financing Authority Certificate of Participation Community Hospitals of Central California (Health Revenue)		5.00			2-1-2020			585,000		598,824
California PFOTER PT-2802 (GO Revenue, National Insured, Dexia Credit Local SPA) ø		0.62			2-1-2025			9,975,000		9,975,000
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.59			8-1-2027			24,375,000		24,375,000
California PFOTER Series DCL-010 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.59			8-1-2027			27,265,000		27,265,000
California PFOTER Series DCL-011 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.59			8-1-2027			14,550,000		14,550,000
California Public Works Board California State University Projects Series B-1 (Miscellaneous Revenue)		5.70			3-1-2035			2,210,000		2,593,943
California Public Works Board Judicial Council Projects Series A (Miscellaneous Revenue)		5.00			3-1-2038			7,000,000		8,367,660

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

Portfolio of investments—June 30, 2016 Wells Fargo California Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Public Works Board Judicial Council Projects Series D (Miscellaneous Revenue)		5.25	%		12-1-2025	$	4,000,000	$	4,844,360
California Public Works Board Various Capital Projects Series A (Miscellaneous Revenue)		5.00			4-1-2037		4,925,000		5,823,862
California Public Works Board Various Capital Projects Series G (Miscellaneous Revenue)		5.00			11-1-2037		23,000,000		27,601,610
California Public Works Board Various Capital Projects Series I (Miscellaneous Revenue)		5.50			11-1-2033		2,000,000		2,542,600
California Public Works University of California Board of Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		9,850,000		11,931,010
California Refunding Bond (GO Revenue)		5.00			8-1-2025		5,000,000		5,128,450
California School Finance Authority School Green Dot Public Schools Projects (Education Revenue) 144A		4.00			8-1-2025		475,000		516,463
California School Finance Authority School Green Dot Public Schools Projects (Education Revenue) 144A		5.00			8-1-2035		2,525,000		2,832,166
California School Finance Authority School KIPP Louisiana Projects Series A (Education Revenue) 144A		5.00			7-1-2035		1,000,000		1,133,140
California Special District Association Finance Corporation Program Series MM (Miscellaneous Revenue)		5.50			6-1-2021		615,000		617,153
California Statewide CDA Adventist Health System Series A (Health Revenue)		5.00			3-1-2045		2,500,000		3,036,200
California Statewide CDA Catholic Healthcare West Series A (Health Revenue)		5.50			7-1-2030		2,940,000		3,087,764
California Statewide CDA Certificate of Participation Internext Group (Health Revenue)		5.38			4-1-2017		100,000		100,418
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2033		1,650,000		2,068,259
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2035		1,000,000		1,244,610
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2038		3,000,000		3,707,400
California Statewide CDA Loma Linda University Medical Center Refunding Bond Series A (Health Revenue)		5.25			12-1-2044		5,150,000		5,890,982
California Statewide CDA Poway Retirement Housing Foundation Housing Incorporated Series A (Housing Revenue)		5.25			11-15-2035		1,500,000		1,855,875
California Statewide CDA Redwoods Projects (Health Revenue)		5.13			11-15-2035		1,500,000		1,834,860
California Statewide CDA School Facility Alliance for College-Ready Public Schools (Education Revenue)		6.75			7-1-2031		1,625,000		1,890,541
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.00			7-1-2020		1,275,000		1,347,165
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.20			7-1-2020		270,000		286,016
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series D (Health Revenue)		4.75			8-1-2020		1,000,000		1,004,670
California Statewide CDA St. Joseph Health System (Health Revenue, AGM Insured)		5.25			7-1-2021		1,775,000	��	1,931,431
California Statewide CDA Water & Wastewater Pooled Financing Program Series B (Water & Sewer Revenue, AGM Insured)		5.25			10-1-2027		1,040,000		1,044,316
California Statewide Community Devauth Student Housing CHF-Irvine LLC Refunding Bond (Housing Revenue)		5.00			5-15-2032		1,250,000		1,559,113
California Statewide Community Devauth Student Housing CHF-Irvine LLC Refunding Bond (Housing Revenue)		5.00			5-15-2040		1,500,000		1,832,175
California Statewide Community Development Authority John Muir Health Series A (Health Revenue)		4.00			8-15-2051		3,000,000		3,281,730
California Statewide Community Development Authority John Muir Health Series A (Health Revenue)		5.00			8-15-2051		2,000,000		2,464,580
California Various Purposes (GO Revenue)		4.00			9-1-2045		1,500,000		1,721,220
California Various Purposes (GO Revenue)		5.00			9-1-2029		1,475,000		1,767,389

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

12 Wells Fargo California Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Various Purposes (GO Revenue)		5.00	%		10-1-2029	$	7,000,000	$	7,956,550
California Various Purposes (GO Revenue)		5.00			9-1-2032		5,100,000		6,328,488
California Various Purposes (GO Revenue)		5.00			6-1-2037		4,215,000		4,388,826
California Various Purposes (GO Revenue)		5.00			2-1-2038		5,000,000		6,030,800
California Various Purposes (GO Revenue)		5.00			9-1-2045		1,000,000		1,263,230
California Various Purposes (GO Revenue)		5.13			4-1-2033		6,735,000		7,244,570
California Various Purposes (GO Revenue)		5.25			9-1-2028		5,000,000		6,059,500
California Various Purposes (GO Revenue)		5.25			10-1-2029		800,000		915,736
California Various Purposes (GO Revenue)		5.25			4-1-2035		12,640,000		15,351,659
California Various Purposes (GO Revenue)		5.25			3-1-2038		2,300,000		2,465,692
California Various Purposes (GO Revenue)		5.60			3-1-2036		8,715,000		10,186,615
California Various Purposes (GO Revenue)		5.75			4-1-2029		1,600,000		1,818,016
California Various Purposes (GO Revenue)		5.75			4-1-2031		3,380,000		3,843,533
California Various Purposes (GO Revenue)		6.00			4-1-2035		2,140,000		2,441,419
California Various Purposes (GO Revenue)		6.00			4-1-2038		23,465,000		26,770,045
Cathedral City CA Redevelopment Agency Successor Agency Tax Allocation Merged Redevelopment Project Area Series A (Tax Revenue, AGM Insured)		5.00			8-1-2032		1,450,000		1,743,277
Cathedral City CA Redevelopment Agency Successor Agency Tax Allocation Merged Redevelopment Project Area Series A (Tax Revenue, AGM Insured)		5.00			8-1-2033		880,000		1,055,824
Center California Unified School District CAB Series C (GO Revenue, National Insured) ¤		0.00			9-1-2021		5,000,000		4,559,150
Centinela Valley CA Union High School District Election of 2008 Series B (GO Revenue)		6.00			8-1-2036		2,500,000		3,233,125
Centinela Valley CA Union High School District Election of 2008 Series C (GO Revenue)		5.00			8-1-2035		2,000,000		2,449,220
Central Valley CA School District Financing Authority Series A (Miscellaneous Revenue, National Insured)		6.45			2-1-2018		870,000		901,799
Cerritos CA Community College CAB Election of 2004 (GO Revenue) ¤		0.00			8-1-2029		1,750,000		1,241,065
Cerritos CA Community College CAB Election of 2004 (GO Revenue) ¤		0.00			8-1-2033		1,500,000		917,160
Chico CA PFA Redevelopment Project Area (Tax Revenue, National Insured)		5.13			4-1-2021		3,000,000		3,093,000
Chula Vista CA Redevelopment Agency (Tax Revenue, AGM Insured) %%		5.00			10-1-2027		1,480,000		1,898,648
College of the Sequoias Tulare Area Improvement District #3 California CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2024		1,000,000		857,860
Compton CA Community College CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2035		3,445,000		1,737,038
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		5.00			8-1-2020		1,140,000		1,253,350
Contra Costa County CA Community College District Election of 2006 (GO Revenue)		5.00			8-1-2038		3,250,000		3,975,238
Contra Costa County CA Home GNMA Mortgage-Backed Securities Program (Housing Revenue, GNMA Insured)		7.75			5-1-2022		160,000		191,573
Delano CA Union High School Election of 2010 Series B (GO Revenue, AGM Insured) ##		5.75			8-1-2035		4,510,000		5,359,594
Deutsche Bank SPEARS/LIFERS Trust Series DB-649 (GO Revenue, National Insured, Deutsche Bank LIQ) 144Aø		0.63			6-1-2031		4,170,000		4,170,000
Dinuba CA Redevelopment Agency Merged City Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2033		1,500,000		1,827,465
Duarte CA RDA CAB Sub-Merged Redevelopment Project (Tax Revenue) ¤		0.00			12-1-2016		460,000		458,261
East Bay CA Municipal Utility District Water System Series B (Water & Sewer Revenue)		4.00			6-1-2045		2,160,000		2,456,417
El Dorado CA Irrigation District Refunding Bond Series A (Water & Sewer Revenue, AGM Insured)		5.25			3-1-2039		2,000,000		2,458,380

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

Portfolio of investments—June 30, 2016 Wells Fargo California Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Elk Grove CA Financing Authority Special Tax Refunding Bond (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00	%		9-1-2038	$	1,500,000	$	1,820,610
Elsinore Valley CA Municipal Water District Financing Authority Refunding Bond Series A (Water & Sewer Revenue)		5.00			7-1-2027		2,500,000		3,253,000
Emeryville CA PFA Assessment Distribution Refinancing (Miscellaneous Revenue)		5.90			9-2-2021		1,750,000		1,755,355
Escondido CA Union High School CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2027		8,385,000		6,401,780
Evergreen CA School District Election of 2014 (GO Revenue)		4.00			8-1-2041		5,365,000		6,043,297
Florin CA Resource Conservation Refunding Bond Second Senior Lien Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2032		2,000,000		2,439,980
Fontana CA RDA Jurupa Hills Redevelopment Project Series A (Tax Revenue)		5.50			10-1-2017		1,295,000		1,311,408
Fontana CA RDA Jurupa Hills Redevelopment Project Series A (Tax Revenue)		5.60			10-1-2027		4,785,000		4,844,286
Foothill-Eastern Corridor CA Transportation Agency Sub Series B-3 (Transportation Revenue) ±		5.50			1-15-2053		8,000,000		9,595,440
Fremont CA Community Facilities District #1 Refunding Bond (Tax Revenue)		5.00			9-1-2040		2,700,000		3,102,732
Fullerton CA Joint Union High School Project Certificate of Participation (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2035		1,385,000		1,684,853
Garden Grove CA Unified School District Election of 2010 Series C (GO Revenue)		5.25			8-1-2037		2,000,000		2,481,120
Gilroy CA Unified School District Election of 2008 Series A (GO Revenue, AGC Insured)		6.00			8-1-2027		1,000,000		1,162,460
Golden Empire Schools Financing Authority (Lease Revenue) ±		0.91			5-1-2017		5,000,000		4,998,500
Golden State Tobacco Securitization Corporation Series A (Tobacco Revenue)		5.00			6-1-2040		22,100,000		26,986,310
Golden State Tobacco Securitization Enhanced Asset Backed Refunding Bond Series A (Tobacco Revenue)		5.00			6-1-2045		10,500,000		12,727,050
Hayward CA Unified School District Refunding Bond (GO Revenue)		5.00			8-1-2038		6,000,000		7,213,560
Hollister CA Joint Powers Financing Authority Wastewater Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			6-1-2036		1,270,000		1,582,763
Hollister CA Joint Powers Financing Authority Wastewater Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			6-1-2037		5,000,000		6,061,850
Imperial CA Irrigation District Electric System Refunding Bond Series A (Utilities Revenue)		5.00			11-1-2040		3,715,000		4,613,287
Imperial CA Irrigation District Electric System Refunding Bond Series A (Utilities Revenue)		5.00			11-1-2045		1,060,000		1,312,259
Imperial CA Irrigation District Electric System Refunding Bond Series C (Utilities Revenue)		5.00			11-1-2037		2,500,000		3,121,025
Imperial CA Irrigation District Electric System Refunding Bond Series C (Utilities Revenue)		5.00			11-1-2038		1,800,000		2,248,956
Imperial CA Irrigation District Series B-1 (Utilities Revenue) %%		5.00			11-1-2046		7,000,000		8,767,640
Independent Cities California Finance Refunding Bond Sanitary Juan Mobile Estates (Housing Revenue)		5.00			8-15-2030		1,000,000		1,185,780
Inland Valley CA Development Agency Series A (Tax Revenue)		5.25			9-1-2037		4,000,000		4,815,840
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District Number 15-2 (Miscellaneous Revenue)		5.00			9-2-2025		725,000		893,621
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District Number 15-2 (Miscellaneous Revenue)		5.00			9-2-2026		400,000		489,320
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District Number 15-2 (Miscellaneous Revenue)		5.00			9-2-2042		1,500,000		1,721,220
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2033		7,000,000		2,459,730
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2034		9,905,000		3,200,702
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2036		11,130,000		3,051,067

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

14 Wells Fargo California Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Lafayette CA Redevelopment Agency Refunding Bond Lafayette Redevelopment Project (Tax Revenue, AGM Insured)		5.00	%		8-1-2033	$	1,500,000	$	1,821,930
Lafayette CA Redevelopment Agency Refunding Bond Lafayette Redevelopment Project (Tax Revenue, AGM Insured)		5.00			8-1-2038		1,635,000		1,957,667
Lancaster CA RDA Tax Allocation Combined Redevelopment Project Areas (Tax Revenue)		6.50			8-1-2029		2,000,000		2,308,640
Lancaster CA Redevelopment Agency Non-Housing Program Series A-1 (Tax Revenue, AGM Insured)		5.00			8-1-2027		1,300,000		1,661,894
Lodi CA Unified School District School Facility Election of 2006 (GO Revenue, AGM Insured)		5.00			8-1-2030		2,000,000		2,097,140
Long Beach CA Financing Authority Refunding Bond (Miscellaneous Revenue, Ambac Insured)		6.00			11-1-2017		490,000		500,971
Long Beach CA Unified School District CAB Election of 2008 Series B (GO Revenue) ¤		0.00			8-1-2035		2,000,000		1,112,520
Long Beach CA Unified School District Election of 2008 Series A (GO Revenue)		5.50			8-1-2026		1,435,000		1,645,787
Long Beach CA Unified School District Election of 2008 Series A (GO Revenue)		5.50			8-1-2026		95,000		109,002
Los Angeles CA Certificate of Participation Sonneblick del Rio Project (Miscellaneous Revenue, Ambac Insured)		6.00			11-1-2019		2,000,000		2,009,720
Los Angeles CA Community Redevelopment Vermont Manchester Social Services Project (Miscellaneous Revenue, Ambac Insured)		5.00			9-1-2025		2,310,000		2,318,616
Los Angeles CA Department of Airports Ontario International Series A (Airport Revenue, National Insured)		5.00			5-15-2024		1,565,000		1,570,837
Los Angeles CA Department of Airports Ontario International Series A (Airport Revenue, National Insured)		5.00			5-15-2025		3,425,000		3,437,501
Los Angeles CA Department of Water & Power Series B (Utilities Revenue)		5.00			7-1-2045		2,450,000		3,052,014
Los Angeles CA Department of Water & Power Series E (Utilities Revenue)		5.00			7-1-2044		12,475,000		15,333,522
Los Angeles CA Harbor Department (Airport Revenue)		7.60			10-1-2018		45,000		48,715
Los Angeles CA Public Works Financing Authority Series A (Miscellaneous Revenue)		5.00			12-1-2039		2,860,000		3,492,031
Los Angeles County CA Public Works Financial Authority Series D (Miscellaneous Revenue)		4.00			12-1-2040		2,000,000		2,236,100
Los Angeles County CA Public Works Financial Authority Series D (Miscellaneous Revenue)		5.00			12-1-2045		7,400,000		9,111,472
Lynwood CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2033		5,000		5,957
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		7.00			11-1-2034		4,000,000		6,236,200
M-S-R California Energy Authority Gas Series C (Utilities Revenue)		6.13			11-1-2029		1,060,000		1,432,993
Merced CA City School District Election of 2014 (GO Revenue)		5.00			8-1-2045		1,000,000		1,231,290
Merced CA Community College School Facilities Improvement Project District #1 (GO Revenue, National Insured)		5.00			8-1-2031		1,635,000		1,641,426
Merced CA Irrigation District Water & Hydroelectric System Series A (Water & Sewer Revenue, AGM Insured)		5.00			10-1-2038		4,000,000		4,884,800
Merced CA Union High School District CAB Series A (GO Revenue, National Insured) ¤		0.00			8-1-2018		2,135,000		2,080,429
Merced CA Union High School District CAB Series C (GO Revenue) ¤		0.00			8-1-2032		3,380,000		2,127,034
Metropolitan Water District of Southern California Series A (Water & Sewer Revenue)		4.00			7-1-2045		3,855,000		4,388,532
Modesto CA Irrigation District Financing Authority Series A (Utilities Revenue)		5.00			10-1-2040		3,500,000		4,263,910
Montclair CA PFA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2035		2,400,000		2,896,488
Morongo Band of Mission Indians California Enterprise Casino Series B (Miscellaneous Revenue) 144A		6.50			3-1-2028		2,100,000		2,274,027
Mount San Antonio CA Community College District CAB Election of 2008 Series A (GO Revenue) ¤		0.00			8-1-2024		1,610,000		1,381,155

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

Portfolio of investments—June 30, 2016 Wells Fargo California Tax-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Natomas CA Unified School District Series 1999 (GO Revenue, National Insured)		5.95	%		9-1-2021	$	835,000	$	911,219
Northern California Power Agency Public Power Prerefunded Bond (Utilities Revenue, Ambac Insured)		7.50			7-1-2023		50,000		60,984
Norwalk-La Mirada CA Unified School District CAB Election of 2002 Series D (GO Revenue, AGM Insured) ¤		0.00			8-1-2023		1,500,000		1,308,060
Oakland CA Redevelopment Successor Agency Refunding Bond Subordinated Series TE (Tax Revenue, AGM Insured)		5.00			9-1-2035		2,545,000		3,091,310
Oakland CA Redevelopment Successor Agency Refunding Bond Subordinated Series TE (Tax Revenue, AGM Insured)		5.00			9-1-2036		4,000,000		4,836,640
Oakland CA Unified School District Election of 2012 (GO Revenue)		5.50			8-1-2023		500,000		612,025
Oakland CA Unified School District Election of 2012 (GO Revenue)		6.63			8-1-2038		7,750,000		9,555,595
Oakland CA Unified School District Election of 2012 Series A (GO Revenue)		5.00			8-1-2040		3,500,000		4,204,060
Orange County CA Community Facilities District #2015-1 Esencia Village Series A (Tax Revenue)		5.25			8-15-2045		2,000,000		2,365,580
Oxnard CA School District Election of 2012 Series D (GO Revenue, AGM Insured)		5.00			8-1-2034		1,695,000		2,083,901
Pajaro Valley CA Unified School District Election of 2012 Series A (GO Revenue)		5.00			8-1-2038		1,700,000		2,070,464
Palm Springs CA Palm Springs International Airport (Airport Revenue)		6.00			7-1-2018		125,000		125,243
Palm Springs CA Palm Springs International Airport (Airport Revenue)		6.40			7-1-2023		500,000		501,035
Palo Verde CA Unified School District FlexFund Program (Education Revenue)		4.80			9-1-2027		1,398,611		1,490,038
Palomar CA Community College District Election of 2006 Series C (GO Revenue)		5.00			8-1-2044		15,120,000		18,687,262
Paramount CA Unified School District CAB Election of 2006 (GO Revenue) ¤		0.00			8-1-2033		2,500,000		1,424,700
Pasadena CA Old Pasadena Parking Facilities Project (Miscellaneous Revenue)		6.25			1-1-2018		385,000		403,218
Pico Rivera CA Water Authority Series A (Water & Sewer Revenue, National Insured)		5.50			5-1-2019		1,265,000		1,347,630
Pico Rivera CA Water Authority Series A (Water & Sewer Revenue)		6.25			12-1-2032		4,830,000		4,896,461
Pioneer CA Union Elementary School District Certificate of Participation (Miscellaneous Revenue, National Insured)		5.00			8-1-2029		1,635,000		1,674,060
Pomona CA Unified School District Series A (GO Revenue, National Insured)		6.55			8-1-2029		1,480,000		2,040,609
Poway CA Unified School District CAB Election of 2008 Improvement District 07-1-A (GO Revenue) ¤		0.00			8-1-2024		1,800,000		1,559,070
Rancho Cucamonga CA Redevelopment Agency Rancho Redevelopment Project Area (Tax Revenue, AGM Insured)		5.00			9-1-2032		1,870,000		2,284,523
Redding CA Joint Powers Financing Authority Election System Series A (Utilities Revenue)		5.00			6-1-2032		440,000		540,927
Redwood City CA RDA CAB Redevelopment Project Area 2-A (Tax Revenue, Ambac Insured) ¤		0.00			7-15-2030		3,505,000		2,278,741
Rialto CA Unified School District CAB Election of 2010 Series A (GO Revenue, AGM Insured) ¤		0.00			8-1-2026		3,320,000		2,588,637
Richmond CA Joint Powers Financing Authority Civic Center Project Series A (Miscellaneous Revenue, AGC Insured)		5.88			8-1-2037		5,000,000		5,659,650
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		7,500,000		8,597,025
Riverside County CA Asset Leasing Corporation Riverside County Hospital Project (Miscellaneous Revenue, National Insured) ¤		0.00			6-1-2026		10,000,000		8,082,800
Riverside County CA Palm Desert Financing Authority Series A (Miscellaneous Revenue)		6.00			5-1-2022		4,105,000		4,485,862
Roseville CA Natural Gas Financing Authority (Utilities Revenue)		5.00			2-15-2025		1,930,000		2,323,797
Sacramento CA Airport System AMT Senior Series B (Airport Revenue, AGM Insured)		5.75			7-1-2024		2,000,000		2,196,940
Sacramento CA Certificate of Participation Animal Care & Youth Detention Facilities (Miscellaneous Revenue, Ambac Insured)		5.00			10-1-2025		1,085,000		1,138,078
Sacramento CA City Financing Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.40			11-1-2020		2,135,000		2,343,312

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

16 Wells Fargo California Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sacramento CA City Financing Refunding Bond Master Lease Program Facilities (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00	%		12-1-2035	$	1,300,000	$	1,598,194
Sacramento CA City School Joint Refunding Bond Series A (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			3-1-2040		2,165,000		2,568,773
Sacramento CA Unified School District Election of 2012 Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.25			8-1-2033		1,000,000		1,215,920
Sacramento CA Unified School District Election of 2012 Series C (GO Revenue, AGM Insured)		5.00			8-1-2033		2,735,000		3,393,041
San Bernardino CA Community Election of 2008 Series D (GO Revenue)		5.00			8-1-2045		2,000,000		2,466,300
San Bernardino City CA Unified School District Election of 2012 Series C (GO Revenue, AGM Insured)		5.00			8-1-2040		8,000,000		9,732,560
San Bernardino County CA Certificate of Participation Arrowhead Project Series A (Miscellaneous Revenue)		5.50			8-1-2020		6,000,000		6,860,520
San Bernardino County CA Certificate of Participation Medical Center Financing Project (Miscellaneous Revenue, National Insured)		5.00			8-1-2028		5,815,000		5,833,899
San Buenaventura CA Public Facilities Financing Authority Series B (Water & Sewer Revenue)		5.00			7-1-2042		4,000,000		4,777,960
San Clemente CA Special Tax Community Facilities District #2006-1 (Tax Revenue)		5.00			9-1-2040		1,000,000		1,157,800
San Clemente CA Special Tax Community Facilities District #2006-1 (Tax Revenue)		5.00			9-1-2046		1,200,000		1,384,680
San Diego CA Community College Election of 2002 (GO Revenue)		5.00			8-1-2031		4,000,000		4,974,240
San Diego CA PFFA Ballpark Project Series A (Miscellaneous Revenue, Ambac Insured)		5.25			2-15-2026		4,950,000		5,096,124
San Diego CA PFFA Ballpark Project Series A (Miscellaneous Revenue, Ambac Insured)		5.25			2-15-2032		3,825,000		3,937,914
San Diego CA PFFA Series B (Water & Sewer Revenue)		5.00			8-1-2039		3,750,000		4,722,150
San Diego CA RDA CAB Tax Allocation Centre (Tax Revenue, AGM Insured) ¤		0.00			9-1-2023		885,000		765,693
San Diego CA RDA Centre City Sub Parking Series B (Transportation Revenue)		5.30			9-1-2020		1,060,000		1,064,314
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		5.00			9-1-2025		575,000		652,211
San Diego CA Unified School District Election of 2012 Series F (GO Revenue)		5.00			7-1-2045		14,370,000		17,838,774
San Francisco CA City & County Certificate of Participation Multiple Capital Improvement Projects Series A (Miscellaneous Revenue)		5.20			4-1-2026		3,000,000		3,349,080
San Francisco CA City & County Redevelopment Agency Mission Bay North Redevelopment Project Series C (Tax Revenue)		4.50			8-1-2016		250,000		250,868
San Francisco CA City & County Redevelopment Agency Mission Bay South Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2043		2,500,000		2,963,000
San Francisco CA Municipal Transportation (Transportation Revenue)		5.00			3-1-2039		3,000,000		3,655,950
San Gorgonio CA Memorial Healthcare (GO Revenue)		5.00			8-1-2032		1,750,000		2,093,945
San Gorgonio CA Memorial Healthcare (GO Revenue)		5.50			8-1-2028		2,525,000		3,199,907
San Gorgonio CA Memorial Healthcare Election of 2006 Series B (GO Revenue)		5.63			8-1-2038		5,000,000		5,022,300
San Gorgonio CA Memorial Healthcare Election of 2006 Series C (GO Revenue)		7.10			8-1-2033		3,000,000		3,214,170
San Joaquin Delta CA Community College District Election of 2004 Series C (GO Revenue)		5.00			8-1-2033		3,195,000		3,947,582
San Joaquin Delta CA Community College District Election of 2004 Series C (GO Revenue)		5.00			8-1-2034		3,315,000		4,076,290
San Jose CA Libraries & Parks Project (GO Revenue)		5.13			9-1-2031		2,040,000		2,048,262
San Jose CA RDA Tax Allocation Refunding Bond Merged Area Redevelopment Project Series C (Tax Revenue, National Insured)		5.00			8-1-2025		1,845,000		1,929,114
San Jose CA RDA Tax Allocation Refunding Bond Merged Area Redevelopment Project Series C (Tax Revenue, National Insured)		5.00			8-1-2026		950,000		992,674
San Jose CA Unified School District CAB (Miscellaneous Revenue, AGM Insured) ¤		0.00			1-1-2021		1,205,000		1,135,688
San Jose CA Unified School District CAB (Miscellaneous Revenue, AGM Insured) ¤		0.00			1-1-2026		3,175,000		2,695,575
San Marcos CA Unified School District Special Tax Community Facilities District #4 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2034		1,725,000		2,094,374

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

Portfolio of investments—June 30, 2016 Wells Fargo California Tax-Free Fund 17

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
San Marcos CA Unified School District Special Tax Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00	%		9-1-2028	$	1,290,000	$	1,599,690
San Marcos CA Unified School District Special Tax Community Facilities District #5 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2029		1,345,000		1,660,618
San Mateo CA Foster City School District Election of 2015 Series A (GO Revenue)		4.00			8-1-2045		3,215,000		3,621,472
San Rafael CA City High School District CAB Election of 2002 Series B (GO Revenue, National Insured) ¤		0.00			8-1-2023		1,260,000		1,109,039
San Rafael CA Elementary School District Election of 2015 Series A (GO Revenue)		4.00			8-1-2041		2,000,000		2,244,180
Sanger CA Unified School District Refunding Bond (GO Revenue, National Insured)		5.60			8-1-2023		1,710,000		1,886,113
Santa Ana CA Community Redevelopment Merged Project Area Series A (Tax Revenue)		6.00			9-1-2022		2,000,000		2,417,420
Santa Ana CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGC Insured) ¤		0.00			8-1-2038		15,000,000		7,945,350
Santa Cruz County CA RDA Live Oak Soquel Community Improvement Project (Tax Revenue)		6.63			9-1-2029		2,100,000		2,487,597
Santa Rosa CA High School District (GO Revenue)		5.00			8-1-2024		1,005,000		1,224,472
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2028		1,000,000		1,239,120
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2032		1,500,000		1,827,600
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2037		1,750,000		2,105,180
Simi Valley CA Unified School District Capital Improvement Projects (Miscellaneous Revenue, Ambac Insured)		5.25			8-1-2022		1,970,000		2,218,969
Sonoma CA Community Development Agency Successor Agency Tax Allocation Sonoma Redevelopment Project (Tax Revenue, National Insured)		5.00			6-1-2033		1,325,000		1,647,306
Sonoma Valley CA Unified School District CAB Election of 2010 Series A (GO Revenue) ¤		0.00			8-1-2027		1,020,000		758,564
South Pasadena CA Unified School District Series A (GO Revenue, FGIC Insured)		5.55			11-1-2020		500,000		567,530
Southern California Public Power Authority Natural Gas Project #1 Series A (Utilities Revenue)		5.25			11-1-2025		1,000,000		1,249,410
Southwest California Community Finance Authority Riverside County (Miscellaneous Revenue)		6.38			5-1-2033		3,065,000		3,374,810
Stockton CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2038		1,025,000		1,232,317
Sutter Butte CA Flood Control Agency (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2040		3,545,000		4,276,156
Sweetwater CA Union High School District Refunding Bond (GO Revenue)		4.00			8-1-2042		10,000,000		11,235,100
Sweetwater CA Union High School District Refunding Bond (GO Revenue)		5.00			8-1-2036		2,500,000		3,114,200
Torrance CA Certificate of Participation (Miscellaneous Revenue)		5.25			6-1-2039		5,385,000		6,634,212
Tracy CA Operating Partnership Joint Powers Authority Capital Improvement Projects (Miscellaneous Revenue, AGC Insured)		6.25			10-1-2033		1,000,000		1,120,040
Tulare CA PFFA Capital Facilities Project (Miscellaneous Revenue, AGC Insured)		5.25			4-1-2027		3,000,000		3,235,560
Tulare CA Sewer Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			11-15-2041		1,500,000		1,828,440
Turlock CA Irrigation District Revenue Refunding Bond Subordinated First Priority (Utilities Revenue)		5.50			1-1-2041		2,000,000		2,329,980
Tustin CA Community Facilities District Special Tax #2014-1 Legacy/Standard Pacific Series A (Tax Revenue)		5.00			9-1-2040		750,000		865,538
Tustin CA Community Facilities District Special Tax #2014-1 Legacy/Standard Pacific Series A (Tax Revenue)		5.00			9-1-2045		1,000,000		1,149,740
Union City CA Community RDA (Tax Revenue, AGC Insured)		5.25			10-1-2033		8,000,000		9,459,680
Union City CA Community Redevelopment Agency Successor Agency Tax Allocation Community Redevelopment Project Series A (Tax Revenue)		5.00			10-1-2035		1,250,000		1,547,425
Union City CA Community Redevelopment Agency Successor Agency Tax Allocation Community Redevelopment Project Series A (Tax Revenue)		5.00			10-1-2036		1,000,000		1,233,220

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

18 Wells Fargo California Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
University of California Regents Medical Center Series J (Health Revenue)		5.00	%		5-15-2033	$	2,265,000	$	2,732,972
University of California Regents Medical Center Series J (Health Revenue)		5.25			5-15-2038		10,000,000		12,176,600
University of California Series AI (Education Revenue)		5.00			5-15-2038		2,000,000		2,432,280
University of California Series K (Education Revenue)		4.00			5-15-2046		17,000,000		19,282,420
Vacaville CA Unified School District (Miscellaneous Revenue, AGC Insured)		6.50			12-1-2034		1,260,000		1,438,126
Vallejo CA Unified School District Refunding Bond Series A (GO Revenue, National Insured)		5.90			2-1-2017		1,000,000		1,029,510
Vallejo CA Refunding Bond (Water & Sewer Revenue)		5.25			5-1-2031		1,000,000		1,218,080
Ventura County CA PFA Series A (Miscellaneous Revenue)		5.00			11-1-2038		4,250,000		5,142,968
Walnut CA Energy Center Authority Series A (Utilities Revenue)		5.00			1-1-2034		3,115,000		3,865,302
Washington Township Health Care District Election of 2004 Series B (GO Revenue)		5.50			8-1-2038		1,500,000		1,886,325
Washington Township Health Care District Series A (Health Revenue)		5.00			7-1-2026		1,190,000		1,449,956
West Contra Costa CA Unified School District (GO Revenue, AGM Insured)		5.25			8-1-2024		1,350,000		1,629,653
West Contra Costa CA Unified School District CAB Election of 2005 Series B (GO Revenue)		6.00			8-1-2027		1,080,000		1,544,843
West Contra Costa CA Unified School District CAB Election of 2005 Series C-1 (GO Revenue, AGC Insured) ¤		0.00			8-1-2021		6,000,000		5,536,560
Wiseburn CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2027		1,525,000		1,172,527
Yorba Linda CA RDA CAB Series A (Tax Revenue, National Insured) ¤		0.00			9-1-2019		2,010,000		1,802,447
									1,094,334,316
Guam: 0.52%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,142,140
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			1-1-2046		2,500,000		2,988,975
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2033		1,500,000		1,781,505
									5,912,620
Illinois: 0.51%
Illinois (GO Revenue, AGM Insured)		5.00			2-1-2027		5,000,000		5,800,350
New York: 0.24%
New York NY Transitional Finance Authority Sub Series 2A (Tax Revenue, Dexia Credit Local LIQ) ø		0.60			11-1-2022		500,000		500,000
New York NY Transitional Finance Authority Sub Series 2B (Tax Revenue, Dexia Credit Local SPA) ø		0.56			11-1-2022		1,000,000		1,000,000
New York NY Transitional Finance Authority Sub Series C3 (Tax Revenue, Dexia Credit Local SPA) ø		0.56			8-1-2031		1,225,000		1,225,000
									2,725,000
Texas: 0.58%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.54			12-1-2039		5,000,000		5,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.54			12-1-2039		1,500,000		1,500,000
									6,500,000
Virgin Islands: 0.40%
Virgin Islands PFA Matching Fund Loan Note Senior Lien (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2029		4,000,000		4,553,360
Total Municipal Obligations (Cost $998,765,316)									1,119,825,646

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

Portfolio of investments—June 30, 2016 Wells Fargo California Tax-Free Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Other: 0.22%
Nuveen California AMT-Free Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A§		0.88	%		7-1-2018	$	2,500,000	$	2,490,300
Total Other (Cost $2,500,000)									2,490,300
	Yield					Shares
Short-Term Investments: 0.48%
Investment Companies: 0.48%
Wells Fargo California Municipal Money Market Fund Premier Class ##(l)(u)		0.26					5,467,738		5,467,738
Total Short-Term Investments (Cost $5,467,738)									5,467,738

Total investments in securities (Cost $1,006,733,054) *	99.62	%		1,127,783,684
Other assets and liabilities, net	0.38			4,245,930
Total net assets	100.00	%	$	1,132,029,614

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

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

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

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

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

## All or a portion of this security is segregated for when-issued and/or unfunded loans.

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

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

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

* Cost for federal income tax purposes is $1,006,827,615 and unrealized gains (losses) consists of:

Gross unrealized gains	$	121,122,007
Gross unrealized losses		(165,938	)
Net unrealized gains	$	120,956,069

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

20 Wells Fargo California Tax-Free Fund Statement of assets and liabilities—June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $1,001,265,316)	$	1,122,315,946
In affiliated securities, at value (cost $5,467,738)		5,467,738
Total investments, at value (cost $1,006,733,054)		1,127,783,684
Receivable for investments sold		4,258,675
Receivable for Fund shares sold		2,008,043
Receivable for interest		12,213,364
Prepaid expenses and other assets		50,606
Total assets		1,146,314,372
Liabilities
Dividends payable		560,417
Payable for investments purchased		11,892,814
Payable for Fund shares redeemed		1,193,231
Management fee payable		259,751
Distribution fees payable		39,500
Administration fees payable		117,278
Accrued expenses and other liabilities		221,767
Total liabilities		14,284,758
Total net assets	$	1,132,029,614
NET ASSETS CONSIST OF
Paid-in capital	$	1,020,055,065
Undistributed net investment income		61,771
Accumulated net realized losses on investments		(9,137,852	)
Net unrealized gains on investments		121,050,630
Total net assets	$	1,132,029,614
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	528,238,055
Shares outstanding – Class A1		42,412,545
Net asset value per share – Class A		$12.45
Maximum offering price per share – Class A2		$13.04
Net assets – Class B	$	119,782
Shares outstanding – Class B1		9,425
Net asset value per share – Class B		$12.71
Net assets – Class C	$	66,427,466
Shares outstanding – Class C1		5,229,829
Net asset value per share – Class C		$12.70
Net assets – Administrator Class	$	344,090,161
Shares outstanding – Administrator Class1		27,569,855
Net asset value per share – Administrator Class		$12.48
Net assets – Institutional Class	$	193,154,150
Shares outstanding – Institutional Class1		15,477,659
Net asset value per share – Institutional Class		$12.48

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended June 30, 2016 Wells Fargo California Tax-Free Fund 21

Investment income
Interest	$	36,853,068
Income from affiliated securities		13,508
Total investment income		36,866,576
Expenses
Management fee		3,839,848
Administration fees
Class A		797,688
Class B		224
Class C		89,882
Administrator Class		270,122
Institutional Class		134,169
Shareholder servicing fees
Class A		1,246,387
Class B		350
Class C		140,441
Administrator Class		675,305
Distribution fees
Class B		1,050
Class C		421,322
Custody and accounting fees		56,873
Professional fees		53,806
Registration fees		90,420
Shareholder report expenses		14,984
Trustees’ fees and expenses		22,996
Other fees and expenses		16,537
Total expenses		7,872,404
Less: Fee waivers and/or expense reimbursements		(997,814	)
Net expenses		6,874,590
Net investment income		29,991,986
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		1,334,393
Net change in unrealized gains (losses) on investments		55,001,083
Net realized and unrealized gains (losses) on investments		56,335,476
Net increase in net assets resulting from operations	$	86,327,462

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

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

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	29,991,986					$	27,212,446
Net realized gains on investments					1,334,393						2,254,786
Net change in unrealized gains (losses) on investments					55,001,083						(760,677	)
Net increase in net assets resulting from operations					86,327,462						28,706,555
Distributions to shareholders from
Net investment income
Class A					(14,775,252	)					(15,140,747	)
Class B					(3,113	)					(7,112	)
Class C					(1,242,347	)					(1,189,812	)
Administrator Class					(8,542,089	)					(8,899,925	)
Institutional Class					(5,429,185	)					(1,974,850	)1
Total distributions to shareholders					(29,991,986	)					(27,212,446	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		7,403,254			89,174,570			4,711,161			56,157,629
Class C		1,564,126			19,286,269			775,910			9,442,120
Administrator Class		15,429,582			186,582,017			11,314,902			135,638,547
Institutional Class		6,601,583			79,772,864			13,920,921	1		167,143,717	1
					374,815,720						368,382,013
Reinvestment of distributions
Class A		1,127,394			13,600,711			1,156,627			13,795,754
Class B		231			2,839			546			6,640
Class C		90,135			1,109,354			87,749			1,067,361
Administrator Class		634,427			7,682,854			487,746			5,829,813
Institutional Class		40,832			495,242			6,023	1		71,726	1
					22,891,000						20,771,294
Payment for shares redeemed
Class A		(6,028,808	)		(72,871,296	)		(5,715,891	)		(68,058,187	)
Class B		(4,785	)		(58,475	)		(28,490	)		(345,266	)
Class C		(650,067	)		(7,959,797	)		(477,683	)		(5,795,267	)
Administrator Class		(6,300,064	)		(76,074,940	)		(17,223,780	)		(206,068,914	)
Institutional Class		(3,813,661	)		(46,003,940	)		(1,278,039	)1		(15,297,220	)1
					(202,968,448	)					(295,564,854	)
Net increase in net assets resulting from capital share transactions					194,738,272						93,588,453
Total increase in net assets					251,073,748						95,082,562
Net assets
Beginning of period					880,955,866						785,873,304
End of period				$	1,132,029,614					$	880,955,866
Undistributed net investment income				$	61,771					$	63,314

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

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

Financial highlights Wells Fargo California Tax-Free Fund 23

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.79			$11.73			$11.21			$11.37			$10.53
Net investment income		0.36			0.38			0.42			0.40			0.45
Net realized and unrealized gains (losses) on investments		0.66			0.06			0.52			(0.16	)		0.84
Total from investment operations		1.02			0.44			0.94			0.24			1.29
Distributions to shareholders from
Net investment income		(0.36	)		(0.38	)		(0.42	)		(0.40	)		(0.45	)
Net asset value, end of period		$12.45			$11.79			$11.73			$11.21			$11.37
Total return1		8.77	%		3.74	%		8.58	%		2.06	%		12.46	%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.83	%		0.83	%		0.83	%		0.83	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		2.96	%		3.17	%		3.71	%		3.46	%		4.08	%
Supplemental data
Portfolio turnover rate		17	%		30	%		41	%		23	%		41	%
Net assets, end of period (000s omitted)		$528,238			$470,368			$466,411			$506,770			$512,957

¹  Total return calculations do not include any sales charges.

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

24 Wells Fargo California Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS B	2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.02			$11.97			$11.44			$11.60			$10.74
Net investment income		0.27	1		0.30	1		0.34	1		0.32	1		0.38	1
Net realized and unrealized gains (losses) on investments		0.69			0.04			0.53			(0.16	)		0.86
Total from investment operations		0.96			0.34			0.87			0.16			1.24
Distributions to shareholders from
Net investment income		(0.27	)		(0.29	)		(0.34	)		(0.32	)		(0.38	)
Net asset value, end of period		$12.71			$12.02			$11.97			$11.44			$11.60
Total return2		8.10	%		2.87	%		7.76	%		1.33	%		11.66	%
Ratios to average net assets (annualized)
Gross expenses		1.57	%		1.58	%		1.58	%		1.58	%		1.58	%
Net expenses		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Net investment income		2.22	%		2.45	%		2.97	%		2.72	%		3.37	%
Supplemental data
Portfolio turnover rate		17	%		30	%		41	%		23	%		41	%
Net assets, end of period (000s omitted)		$120			$168			$502			$966			$1,618

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo California Tax-Free Fund 25

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.02			$11.96			$11.43			$11.59			$10.74
Net investment income		0.27			0.29			0.34			0.32			0.38
Net realized and unrealized gains (losses) on investments		0.68			0.06			0.53			(0.16	)		0.85
Total from investment operations		0.95			0.35			0.87			0.16			1.23
Distributions to shareholders from
Net investment income		(0.27	)		(0.29	)		(0.34	)		(0.32	)		(0.38	)
Net asset value, end of period		$12.70			$12.02			$11.96			$11.43			$11.59
Total return1		8.02	%		2.96	%		7.77	%		1.33	%		11.56	%
Ratios to average net assets (annualized)
Gross expenses		1.57	%		1.58	%		1.58	%		1.58	%		1.58	%
Net expenses		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Net investment income		2.21	%		2.42	%		2.96	%		2.70	%		3.31	%
Supplemental data
Portfolio turnover rate		17	%		30	%		41	%		23	%		41	%
Net assets, end of period (000s omitted)		$66,427			$50,787			$45,934			$46,050			$44,920

¹  Total return calculations do not include any sales charges.

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

26 Wells Fargo California Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.81			$11.75			$11.23			$11.39			$10.55
Net investment income		0.38			0.40			0.44			0.43			0.48
Net realized and unrealized gains (losses) on investments		0.67			0.06			0.52			(0.16	)		0.84
Total from investment operations		1.05			0.46			0.96			0.27			1.32
Distributions to shareholders from
Net investment income		(0.38	)		(0.40	)		(0.44	)		(0.43	)		(0.48	)
Net asset value, end of period		$12.48			$11.81			$11.75			$11.23			$11.39
Total return		9.06	%		3.95	%		8.79	%		2.27	%		12.67	%
Ratios to average net assets (annualized)
Gross expenses		0.76	%		0.77	%		0.77	%		0.77	%		0.76	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		3.16	%		3.39	%		3.91	%		3.65	%		4.26	%
Supplemental data
Portfolio turnover rate		17	%		30	%		41	%		23	%		41	%
Net assets, end of period (000s omitted)		$344,090			$210,265			$273,026			$231,383			$179,670

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

Financial highlights Wells Fargo California Tax-Free Fund 27

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			20151
Net asset value, beginning of period		$11.81			$11.99
Net investment income		0.39			0.27
Net realized and unrealized gains (losses) on investments		0.67			(0.18	)
Total from investment operations		1.06			0.09
Distributions to shareholders from
Net investment income		(0.39	)		(0.27	)
Net asset value, end of period		$12.48			$11.81
Total return2		9.14	%		0.72	%
Ratios to average net assets (annualized)
Gross expenses		0.49	%		0.50	%
Net expenses		0.48	%		0.48	%
Net investment income		3.24	%		3.35	%
Supplemental data
Portfolio turnover rate		17	%		30	%
Net assets, end of period (000s omitted)		$193,154			$149,368

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

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

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

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

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Security transactions and income recognition

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

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

Notes to financial statements Wells Fargo California Tax-Free Fund 29

Distributions to shareholders

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

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$(1,543)	$1,543

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of June 30, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

2018	No expiration
	Short-term
$4,667,645	$4,375,648

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

30 Wells Fargo California Tax-Free Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	1,119,825,646	$	0	$	1,119,825,646
Other		0		2,490,300		0		2,490,300
Short-term investments
Investment companies		5,467,738		0		0		5,467,738
Total assets	$	5,467,738	$	1,122,315,946	$	0	$	1,127,783,684

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.39% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class A shares, 1.50% for Class B shares, 1.50% for Class C shares, 0.55% for Administrator Class, and 0.48% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Notes to financial statements Wells Fargo California Tax-Free Fund 31

Distribution fees

The Trust has adopted a distribution plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended June 30, 2016, Funds Distributor received $33,137 from the sale of Class A shares and $1,784 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C, and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $379,562,717 and $153,405,944, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $29,991,986 and $27,212,446 of exempt-interest income for the years ended June 30, 2016 and June 30, 2015, respectively.

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Unrealized gains	Capital loss carryforward
$623,498	$120,956,069	$(9,043,293)

8. CONCENTRATION RISK

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

32 Wells Fargo California Tax-Free Fund Notes to financial statements

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo California Tax-Free Fund 33

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo California Tax-Free Fund (formerly known as Wells Fargo Advantage California Tax-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo California Tax-Free Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo 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

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

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

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo California Tax-Free Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

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

The Board noted that the performance of the Fund (Administrator Class) was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays Municipal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Other information (unaudited) Wells Fargo California Tax-Free Fund 39

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

40 Wells Fargo California Tax-Free Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244401 08-16 A249/AR249 6-16

Annual Report

June 30, 2016

Wells Fargo Colorado Tax-Free Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	19
Report of independent registered public accounting firm	23
Other information	24
List of abbreviations	30

The views expressed and any forward-looking statements are as of June 30, 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 Colorado Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Colorado Tax-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

on $911 million in payments due (most of which were GOs) on July 1, 2016. The state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Terry Goode

Adrian Van Poppel

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (NWCOX)	7-31-1995		3.64		4.93		4.25		8.53		5.90		4.73		0.93		0.85
Class C (WCOTX)	3-31-2008		6.71		5.11		3.93		7.71		5.11		3.93		1.68		1.60
Administrator Class (NCOTX)	8-23-1993		–		–		–		8.80		6.16		4.99		0.87		0.60
Barclays Municipal Bond Index4	–		–		–		–		7.65		5.33		5.13		–		–
Barclays Colorado Municipal Bond Index5	–		–		–		–		8.87		6.32		5.65		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to Colorado municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁶

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

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal Bond Index and the Barclays Colorado Municipal 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  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁸  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the Barclays Municipal Bond Index, for the 12-month period that ended June 30, 2016. The Fund underperformed the Barclays Colorado Municipal Bond Index during the same period.

n The main contributors to performance included security selection, longer duration, yield-curve positioning, and an overweight to BBB-rated bonds. Within security selection, the E-470 Toll Road and Colorado Springs Utility bonds did well.

n Detractors from performance included an underweight to the industrial development revenue/pollution control revenue sector and poor security selection in the hospital sector.

n Benign inflation expectations, global growth concerns, and the shape of the yield curve influenced our decision to extend duration and focus on bond purchases in the steeper portion of the yield curve. This resulted in an overweight to maturities 20 years and longer.

Effective maturity distribution as of June 30, 2016⁷

Ultralow yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential rise in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. The Fund’s yield-curve positioning, which was underweight the area less than 10 years and overweight the 20-year and greater area, helped results. Longer-term maturities outperformed shorter-term maturities by a wide

margin because the municipal curve flattened almost 150 basis points (100 basis points equals 1.00%) between the 2- and 30-year maturities.

The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%. With the Fed likely on hold for an extended period and continued benign inflation, we extended the Fund’s duration longer than the Barclays Municipal Bond Index, which contributed to results as yields fell.

Credit quality as of June 30, 2016⁸

Credit-quality allocation helped results.

The Fund’s overweight to A-rated and BBB-rated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin during the period. Sector allocation also contributed to results due to the Fund’s overweight to strong-performing appropriation, education, and special tax sectors. The Fund’s underweight to the industrial development revenue/pollution control revenue sector detracted from results. Finally, issue selection was helped by E-470 Toll Road and Colorado Springs Utility bonds but certain hospital issues held by the Fund lagged.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Colorado Tax-Free Fund 7

Colorado felt the effect of weakness in energy but benefited from growth elsewhere.

With its status as seventh in the nation for oil production and ninth for concentration of oil- and gas-related employment, Colorado did experience weaker growth over the period. However, growth in other industries offset the decreases in the oil sector and the unemployment rate trended lower in the state. Migration to the state continued with 2015 marking the state’s largest increase since 2000.

Rates may be lower for longer, making issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. We expect volatility in rates but don’t see any catalyst for materially higher rates or a steeper yield curve in the near term. Strong demand for municipals from both U.S. and global investors in search of yield alongside favorable supply/demand factors may continue to support the municipal market. In terms of Fund positioning, we expect to remain long duration relative to the Barclays Municipal Bond Index and to focus our purchases on the steeper part of the yield curve to benefit from the roll down, or the natural decline in yields as maturities shorten. We also expect to maintain an overweight to the A-rated and BBB-rated credit tiers. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo Colorado Tax-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

��	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,050.68	$	4.33		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.64	$	4.27		0.85	%
Class C
Actual	$	1,000.00	$	1,046.72	$	8.14		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.91	$	8.02		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,051.99	$	3.06		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%

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

Portfolio of investments—June 30, 2016 Wells Fargo Colorado Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 100.99%
Arizona: 1.02%
Phoenix AZ IDA Rowan University Project (Education Revenue)		5.25	%		6-1-2034	$	1,000,000	$	1,175,070
California: 2.19%
Inglewood CA Unified School District (Tax Revenue, AGM Insured)		5.25			10-15-2021		1,000,000		1,204,720
Norco CA Redevelopment Agency Project Area #1 (Tax Revenue)		6.00			3-1-2036		1,120,000		1,312,786
									2,517,506
Colorado: 91.83%
Adams County CO 12 Five Star Schools Certificate of Participation Refunding Bonds (Miscellaneous Revenue)		5.00			12-15-2027		1,200,000		1,590,576
Adams County CO Certificate of Participation Refunding Bonds (Miscellaneous Revenue)		5.00			12-1-2034		500,000		613,735
Adams County CO North Range Metropolitan District No. 1 (GO Revenue)		5.00			12-1-2038		1,000,000		1,184,660
Adams County CO Rangeview Library District Certificate of Participation Series 2015 (Miscellaneous Revenue, AGM Insured)		5.00			12-15-2029		1,000,000		1,250,680
Arapahoe County CO Centennial 25 Metropolitan District (GO Revenue)		6.38			12-1-2016		70,000		70,505
Arapahoe County CO Copperleaf Metropolitan District (GO Revenue)		5.75			12-1-2045		500,000		536,615
Arapahoe County CO Water & Wastewater Authority (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2033		500,000		528,560
Arvada CO Jefferson Center Metropolitan District (Tax Revenue)		4.75			12-1-2026		1,000,000		1,047,380
Aspen Valley CO Hospital Refunding Bonds District Series 2012 (Health Revenue)		5.00			10-15-2033		600,000		678,222
Aurora CO Certificate of Participation Refunding Bonds Series 2009A (Miscellaneous Revenue)		5.00			12-1-2027		2,000,000		2,264,340
Aurora CO E-470 Public Highway Authority Colorado CAB Series A (Miscellaneous Revenue, National Insured) ¤		0.00			9-1-2034		4,000,000		2,357,960
Aurora CO Eagle Bend Metropolitan District No. 2 Refunding Bonds (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2037		1,000,000		1,236,330
Aurora CO First Lien Water Improvement Bonds Series 2007A (Water & Sewer Revenue, Ambac Insured)		5.00			8-1-2039		1,000,000		1,043,580
Canon City CO Finance Authority Certificate of Participation Series 2008 (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2032		150,000		163,529
Colorado Board of Governors State University System Enterprise Bonds Series 2013C (Education Revenue)		5.25			3-1-2033		725,000		893,816
Colorado Board of Governors State University System Enterprise Bonds Series E1 (Education Revenue)		5.00			3-1-2040		2,000,000		2,437,980
Colorado ECFA Alexander Dawson School LLC Project (Education Revenue)		5.00			2-15-2040		1,000,000		1,106,960
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.25			12-1-2028		1,000,000		1,172,120
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.38			12-1-2028		1,000,000		1,175,110
Colorado ECFA Charter School Aspen Ridge School Project Series 2015A (Education Revenue) 144A		4.13			7-1-2026		625,000		657,163
Colorado ECFA Charter School Banning Lewis Ranch Academy Project (Education Revenue) 144A		6.13			12-15-2035		425,000		426,925
Colorado ECFA Charter School Ben Franklin Academy Project (Education Revenue)		5.00			7-1-2036		750,000		879,848
Colorado ECFA Charter School Collegiate Project (Education Revenue, Syncora Guarantee Incorporated Insured)		5.00			6-15-2019		660,000		662,554
Colorado ECFA Charter School Collegiate Project (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25			6-15-2024		1,140,000		1,144,480
Colorado ECFA Charter School District Montessori Charter School Project (Miscellaneous Revenue)		5.00			7-15-2037		1,150,000		1,317,912

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

10 Wells Fargo Colorado Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Colorado ECFA Charter School Pinnacle High School Project (Education Revenue)		5.13	%		12-1-2039	$	500,000	$	534,275
Colorado ECFA Charter School Refunding and Improvement Bonds Flagstaff Academy Project 2015 (Education Revenue)		5.00			8-1-2036		335,000		397,421
Colorado ECFA Charter School Refunding and Improvement Bonds Frontier Academy Project 2015 (Education Revenue) %%		5.00			6-1-2036		540,000		639,058
Colorado ECFA Charter School Refunding and Improvement Bonds Skyview Academy Project Series 2014 (Education Revenue) 144A		4.13			7-1-2024		500,000		532,970
Colorado ECFA Charter School Refunding and Improvement Bonds University Laboratory School Project 2015 (Education Revenue) 144A		5.00			12-15-2028		600,000		662,772
Colorado ECFA Charter School Refunding and Improvement Bonds University Laboratory School Project 2015 (Education Revenue) 144A		4.00			12-15-2025		535,000		561,654
Colorado ECFA Cheyenne Mountain Charter School Series A (Education Revenue)		5.25			6-15-2029		590,000		616,066
Colorado ECFA Refunding Bonds Regis University Project (Education Revenue)		5.00			10-1-2034		2,000,000		2,358,180
Colorado ECFA Refunding Bonds The University Corporation for Atmosphere Research Project Series 2010 (Education Revenue)		5.00			9-1-2032		1,265,000		1,436,306
Colorado ECFA Refunding Bonds The University Corporation for Atmosphere Research Project Series B (Education Revenue)		5.00			9-1-2030		1,770,000		2,103,840
Colorado ECFA Student Housing Campus Village Apartment (Miscellaneous Revenue) ##		5.50			6-1-2033		1,735,000		1,871,423
Colorado ECFA Twin Peaks Charter Academy (Education Revenue)		6.75			11-15-2028		750,000		856,253
Colorado Fort Lewis College Board of Trustees Series B (Education Revenue)		5.00			10-1-2036		1,735,000		2,164,222
Colorado Health Facilities Authority Adventist Health Sunbelt Series A (Health Revenue) %%		4.00			11-15-2046		1,000,000		1,097,840
Colorado Health Facilities Authority Adventist Health Sunbelt Series C (Health Revenue) %%±		5.00			11-15-2036		500,000		645,350
Colorado Health Facilities Authority Adventist Health Sunbelt Series D (Health Revenue)		5.25			11-15-2027		1,000,000		1,017,040
Colorado Health Facilities Authority Adventist Health Sunbelt Series D (Health Revenue)		5.25			11-15-2035		1,000,000		1,017,040
Colorado Health Facilities Authority Catholic Health Initiatives Series D1 (Health Revenue)		6.25			10-1-2033		1,000,000		1,121,540
Colorado Health Facilities Authority Children’s Hospital Project Series A (Health Revenue)		5.00			12-1-2044		2,000,000		2,438,780
Colorado Health Facilities Authority Covenant Retirement Communities Series 2012C (Health Revenue)		5.00			12-1-2022		1,000,000		1,176,360
Colorado Health Facilities Authority Evangelical Lutheran Good Samaritan Society Series 2015A (Health Revenue)		5.00			6-1-2040		1,000,000		1,150,410
Colorado Health Facilities Authority Sisters of Charity Leavenworth Health System Series 2013A (Health Revenue)		5.50			1-1-2035		1,000,000		1,236,440
Colorado Health Facilities Authority Sunny Vista Living Center Series A (Health Revenue) 144A		5.00			12-1-2025		670,000		700,706
Colorado HFA Waste Management Incorporated Project (Miscellaneous Revenue)		5.70			7-1-2018		500,000		546,480
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		1,200,000		1,317,756
Colorado Park Creek Metropolitan District Refunding Bonds Series A (Tax Revenue)		5.00			12-1-2045		500,000		590,510
Colorado Regional Transportation District Certificate of Participation Series 2014A (Miscellaneous Revenue)		5.00			6-1-2044		2,000,000		2,342,180
Colorado Regional Transportation District Certificate of Participation Tax-Exempt Bonds Series 2010A (Miscellaneous Revenue)		5.38			6-1-2031		2,500,000		2,877,075
Colorado Regional Transportation District Certificate of Participation Transit Vehicles Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2022		1,000,000		1,057,490

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

Portfolio of investments—June 30, 2016 Wells Fargo Colorado Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Colorado Regional Transportation District Fastracks Project Revenue Bonds Series 2013A (Tax Revenue)		5.00	%		11-1-2031	$	1,000,000	$	1,223,640
Colorado Springs CO Utilities System Improvement Bonds Series 2013 B-2 (Utilities Revenue)		5.00			11-15-2038		3,000,000		3,662,490
Commerce City CO Sales & Use Tax Bonds Series 2014 (Tax Revenue, AGM Insured)		5.00			8-1-2044		1,250,000		1,487,550
Denver CO City & County Department of Aviation Airport System Bonds Series 2012B (Airport Revenue)		5.00			11-15-2030		2,000,000		2,413,240
Denver CO City & County Excise Tax Series A (Tax Revenue, AGC Insured)		6.00			9-1-2021		2,000,000		2,327,080
Denver CO City & County Refunding and Improvement Bonds Series A (Tax Revenue)		5.00			8-1-2044		500,000		625,495
Denver CO Convention Center (Tax Revenue, Syncora Guarantee Incorporated Insured)		5.00			12-1-2030		1,205,000		1,217,050
Denver CO School District No. 1 Certificate of Participation Series B (Miscellaneous Revenue)		5.00			12-15-2035		1,000,000		1,230,230
Denver CO School District No. 1 Certificate of Participation Series B (Miscellaneous Revenue)		5.00			12-15-2045		1,200,000		1,456,932
Douglas County CO Stonegate Village Metropolitan District (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2045		525,000		619,085
Eagle County CO Eagle River Water and Sanitation District (GO Revenue)		5.00			12-1-2045		1,360,000		1,684,238
East Cherry Creek Valley CO Water and Sanitation District (Water & Sewer Revenue)		5.00			11-15-2032		750,000		939,270
El Paso County CO Lorson Ranch Metropolitan District No. 2 (GO Revenue)		5.00			12-1-2041		855,000		1,014,603
El Paso County CO School District #49 (Miscellaneous Revenue, National Insured)		5.00			12-15-2027		1,430,000		1,522,078
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		1,330,000		1,468,546
Fremont County CO Finance Corporation Certificate of Participation Series 2013 (Miscellaneous Revenue)		5.25			12-15-2038		1,265,000		1,457,482
Garfield County CO Public Library District Lease Purchase Financing Program (Miscellaneous Revenue)		5.00			12-1-2026		715,000		808,000
Glendale CO Certificate of Participation Series 2006 (Miscellaneous Revenue, Syncora Guarantee Incorporated Insured)		5.00			12-1-2025		1,000,000		1,018,950
Longmont CO Certificates of Participation Series 2014 (Miscellaneous Revenue)		5.00			12-1-2034		1,000,000		1,194,470
Park Meadows CO Business Improvement District (Tax Revenue)		5.00			12-1-2017		105,000		109,657
Platte Valley CO Fire Protection District (Miscellaneous Revenue)		5.00			12-1-2036		325,000		351,868
Regents of the University of Colorado Certificate of Participation Series 2013A (Education Revenue)		5.00			11-1-2028		2,000,000		2,443,820
Tender Option Bond Trust Receipts for Colorado HCFR Series 2015-XF1001 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.64			1-1-2045		2,360,000		2,360,000
Tender Option Bond Trust Receipts for Colorado HCFR Series 2016-XG0068 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.58			12-1-2032		2,185,000		2,185,000
Thornton CO Development Authority East 144th Avenue and I-25 Project Series B (Tax Revenue)		5.00			12-1-2034		1,375,000		1,653,011
University of Colorado Enterprise System Series A (Education Revenue)		5.00			6-1-2026		1,000,000		1,193,660
University of Colorado Hospital Authority Series A (Health Revenue)		6.00			11-15-2029		2,000,000		2,314,760
Weld County CO Eaton Area Park and Recreation District Series 2015 (GO Revenue)		5.50			12-1-2038		1,075,000		1,166,730
Westminster CO Certificate of Participation Series 2015A (Miscellaneous Revenue)		5.00			12-1-2035		2,000,000		2,451,136
Wheatlands CO (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2030		500,000		613,775
									105,722,823
Guam: 2.52%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,142,140
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.75			12-1-2034		500,000		569,490
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			1-1-2046		1,000,000		1,195,590
									2,907,220

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

12 Wells Fargo Colorado Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Maryland: 0.42%
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00	%		6-1-2027	$	235,000	$	264,518
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00			6-1-2030		200,000		222,804
									487,322
Pennsylvania: 1.50%
East Hempfield Township PA IDA Student Services Incorporated Student Housing Project of Millersville University (Education Revenue)		5.00			7-1-2029		500,000		570,295
Pennsylvania Higher Education Facilities Authority Indiana University Student Housing Project Series A (Education Revenue)		5.00			7-1-2032		1,000,000		1,155,430
									1,725,725
Texas: 0.52%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.54			12-1-2039		600,000		600,000
Virgin Islands: 0.99%
Virgin Islands PFA Matching Fund Loan Note Senior Lien (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2029		1,000,000		1,138,340
Total Municipal Obligations (Cost $106,024,174)									116,274,006
	Yield					Shares
Short-Term Investments: 0.51%
Investment Companies: 0.51%
Wells Fargo Municipal Cash Management Fund Institutional Class ##(l)(u)		0.30					583,158		583,158
Total Short-Term Investments (Cost $583,158)									583,158

Total investments in securities (Cost $106,607,332) *	101.50	%		116,857,164
Other assets and liabilities, net	(1.50	)		(1,728,049	)
Total net assets	100.00	%	$	115,129,115

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

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

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

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

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

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

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

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

* Cost for federal income tax purposes is $106,607,130 and unrealized gains (losses) consists of:

Gross unrealized gains	$	10,279,104
Gross unrealized losses		(29,070	)
Net unrealized gains	$	10,250,034

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

Statement of assets and liabilities—June 30, 2016 Wells Fargo Colorado Tax-Free Fund 13

Assets
Investments
In unaffiliated securities, at value (cost $106,024,174)	$	116,274,006
In affiliated securities, at value (cost $583,158)		583,158
Total investments, at value (cost $106,607,332)		116,857,164
Receivable for Fund shares sold		48,821
Receivable for interest		835,524
Prepaid expenses and other assets		13,320
Total assets		117,754,829
Liabilities
Dividends payable		109,131
Payable for investments purchased		2,355,988
Payable for Fund shares redeemed		96,216
Management fee payable		10,718
Distribution fee payable		5,056
Administration fees payable		11,711
Accrued expenses and other liabilities		36,894
Total liabilities		2,625,714
Total net assets	$	115,129,115
NET ASSETS CONSIST OF
Paid-in capital	$	106,054,298
Undistributed net investment income		298,072
Accumulated net realized losses on investments		(1,473,087	)
Net unrealized gains on investments		10,249,832
Total net assets	$	115,129,115
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	41,341,392
Shares outstanding – Class A1		3,595,670
Net asset value per share – Class A		$11.50
Maximum offering price per share – Class A2		$12.04
Net assets – Class C	$	8,503,207
Shares outstanding – Class C1		738,853
Net asset value per share – Class C		$11.51
Net assets – Administrator Class	$	65,284,516
Shares outstanding – Administrator Class1		5,678,009
Net asset value per share – Administrator Class		$11.50

¹  The Fund has an unlimited number of authorized shares.

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

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

14 Wells Fargo Colorado Tax-Free Fund Statement of operations—year ended June 30, 2016

Investment income
Interest	$	3,822,834
Income from affiliated securities		1,399
Total investment income		3,824,233
Expenses
Management fee		395,503
Administration fees
Class A		58,100
Class C		8,816
Administrator Class		57,053
Shareholder servicing fees
Class A		90,782
Class C		13,776
Administrator Class		142,632
Distribution fee
Class C		41,327
Custody and accounting fees		10,808
Professional fees		45,572
Registration fees		19,687
Shareholder report expenses		12,364
Trustees’ fees and expenses		21,537
Other fees and expenses		6,964
Total expenses		924,921
Less: Fee waivers and/or expense reimbursements		(185,783	)
Net expenses		739,138
Net investment income		3,085,095
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(27,079	)
Net change in unrealized gains (losses) on investments		5,358,174
Net realized and unrealized gains (losses) on investments		5,331,095
Net increase in net assets resulting from operations	$	8,416,190

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

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

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	3,085,095					$	2,765,609
Net realized gains (losses) on investments					(27,079	)					239,821
Net change in unrealized gains (losses) on investments					5,358,174						235,851
Net increase in net assets resulting from operations					8,416,190						3,241,281
Distributions to shareholders from
Net investment income
Class A					(1,095,590	)					(1,059,973	)
Class B					N/A						(102	)1
Class C					(124,324	)					(86,629	)
Administrator Class					(1,865,181	)					(1,618,905	)
Total distributions to shareholders					(3,085,095	)					(2,765,609	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		696,674			7,784,831			195,576			2,149,912
Class C		422,886			4,750,010			106,467			1,175,015
Administrator Class		1,447,561			16,128,508			1,336,343			14,710,217
					28,663,349						18,035,144
Reinvestment of distributions
Class A		95,642			1,066,603			92,820			1,022,854
Class B		N/A			N/A			9	1		102	1
Class C		10,332			115,562			7,438			82,034
Administrator Class		58,589			653,646			50,754			559,409
					1,835,811						1,664,399
Payment for shares redeemed
Class A		(285,488	)		(3,174,098	)		(433,987	)		(4,763,158	)
Class B		N/A			N/A			(1,826	)1		(20,041	)1
Class C		(76,234	)		(855,123	)		(71,751	)		(781,903	)
Administrator Class		(618,076	)		(6,860,160	)		(678,121	)		(7,490,164	)
					(10,889,381	)					(13,055,266	)
Net increase in net assets resulting from capital share transactions					19,609,779						6,644,277
Total increase in net assets					24,940,874						7,119,949
Net assets
Beginning of period					90,188,241						83,068,292
End of period				$	115,129,115					$	90,188,241
Undistributed net investment income				$	298,072					$	298,072

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

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

16 Wells Fargo Colorado Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.92			$10.85			$10.46			$10.72			$10.15
Net investment income		0.34	1		0.34	1		0.35	1		0.34			0.38
Net realized and unrealized gains (losses) on investments		0.58			0.07			0.39			(0.26	)		0.57
Total from investment operations		0.92			0.41			0.74			0.08			0.95
Distributions to shareholders from
Net investment income		(0.34	)		(0.34	)		(0.35	)		(0.34	)		(0.38	)
Net asset value, end of period		$11.50			$10.92			$10.85			$10.46			$10.72
Total return2		8.53	%		3.82	%		7.26	%		0.65	%		9.51	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.93	%		0.94	%		0.91	%		0.91	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		3.02	%		3.12	%		3.35	%		3.10	%		3.64	%
Supplemental data
Portfolio turnover rate		13	%		23	%		33	%		36	%		41	%
Net assets, end of period (000s omitted)		$41,341			$33,722			$35,088			$46,069			$53,185

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Colorado Tax-Free Fund 17

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.93			$10.86			$10.47			$10.73			$10.16
Net investment income		0.25			0.26			0.28			0.26			0.30
Net realized and unrealized gains (losses) on investments		0.58			0.07			0.38			(0.26	)		0.57
Total from investment operations		0.83			0.33			0.66			0.00			0.87
Distributions to shareholders from
Net investment income		(0.25	)		(0.26	)		(0.27	)		(0.26	)		(0.30	)
Net asset value, end of period		$11.51			$10.93			$10.86			$10.47			$10.73
Total return1		7.71	%		3.05	%		6.46	%		(0.10	)%		8.69	%
Ratios to average net assets (annualized)
Gross expenses		1.68	%		1.68	%		1.69	%		1.67	%		1.66	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.26	%		2.35	%		2.60	%		2.34	%		2.89	%
Supplemental data
Portfolio turnover rate		13	%		23	%		33	%		36	%		41	%
Net assets, end of period (000s omitted)		$8,503			$4,173			$3,689			$4,460			$4,012

¹  Total return calculations do not include any sales charges.

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

18 Wells Fargo Colorado Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.92			$10.85			$10.46			$10.72			$10.15
Net investment income		0.36			0.37			0.38			0.36			0.41
Net realized and unrealized gains (losses) on investments		0.58			0.07			0.39			(0.26	)		0.57
Total from investment operations		0.94			0.44			0.77			0.10			0.98
Distributions to shareholders from
Net investment income		(0.36	)		(0.37	)		(0.38	)		(0.36	)		(0.41	)
Net asset value, end of period		$11.50			$10.92			$10.85			$10.46			$10.72
Total return		8.80	%		4.08	%		7.53	%		0.90	%		9.78	%
Ratios to average net assets (annualized)
Gross expenses		0.87	%		0.87	%		0.88	%		0.86	%		0.84	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.27	%		3.36	%		3.60	%		3.34	%		3.89	%
Supplemental data
Portfolio turnover rate		13	%		23	%		33	%		36	%		41	%
Net assets, end of period (000s omitted)		$65,285			$52,294			$44,272			$49,549			$43,876

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

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

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Security transactions and income recognition

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

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of June 30, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

		No expiration
2018	2019	Short-term
$548,785	$57,793	$829,427

As of June 30, 2016, the Fund had current year deferred post-October capital losses consisting of $37,285 in long-term losses which will be recognized on the first day of the following fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements Wells Fargo Colorado Tax-Free Fund 21

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	116,274,006	$	0	$	116,274,006
Short-term investments
Investment companies		583,158		0		0		583,158
Total assets	$	583,158	$	116,274,006	$	0	$	116,857,164

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class level administration fee
Class A, Class C		0.16	%
Administrator Class		0.10

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.85% for Class A shares, 1.60% for Class C shares, and 0.60% for Administrator Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a Distribution Plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

22 Wells Fargo Colorado Tax-Free Fund Notes to financial statements

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $11,949 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $40,504,987 and $12,367,858, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $3,085,095 and $2,765,609 of exempt-interest income for the years ended June 30, 2016 and June 30, 2015, respectively.

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Unrealized gains	Post-October capital losses deferred	Capital loss carryforward
$407,204	$10,250,034	$(37,285)	$(1,436,005)

8. CONCENTRATION RISK

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

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Colorado Tax-Free Fund 23

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Colorado Tax-Free Fund (formerly known as Wells Fargo Advantage Colorado Tax-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Colorado Tax-Free Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

Other information (unaudited) Wells Fargo Colorado Tax-Free Fund 27

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Colorado Tax-Free Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

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

The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under reviewexcept the ten-year period under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays Municipal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were in range of or equal to the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

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

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

30 Wells Fargo Colorado Tax-Free Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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 Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244402 08-16 A250/AR250 6-16

Annual Report

June 30, 2016

Wells Fargo High Yield Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	25
Report of independent registered public accounting firm	31
Other information	32
List of abbreviations	38

The views expressed and any forward-looking statements are as of June 30, 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 High Yield Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo High Yield Municipal Bond Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Dennis Derby

Lyle J. Fitterer, CFA^®, CPA

Terry J. Goode

Average annual total returns (%) as of June 30, 2016

		Including sales charge				Excluding sales charge				Expense ratios1 (%)
	Inception date	1 year		Since inception		1 year		Since inception		Gross		Net2
Class A (WHYMX)	1-31-2013		4.49		5.23		9.44		6.66		1.08		0.86
Class C (WHYCX)	1-31-2013		7.62		5.87		8.62		5.87		1.83		1.61
Administrator Class (WHYDX)	1-31-2013		–		–		9.65		6.79		1.02		0.76
Institutional Class (WHYIX)	1-31-2013		–		–		9.71		6.92		0.75		0.61
Barclays Municipal Bond Index3	–		–		–		7.65		3.93		–		–
Barclays High Yield Municipal Bond Index4	–		–		–		12.09		4.69		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁵

¹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

²  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.85% for Class A, 1.60% for Class C, 0.75% for Administrator Class, and 0.60% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

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

⁴  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares since inception with the Barclays Municipal Bond Index and the Barclays High Yield Municipal 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%.

⁶  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁷  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the Barclays Municipal Bond Index, for the 12-month period that ended June 30, 2016. The Fund, however, underperformed the Barclays High Yield Municipal Bond Index over that same period.

n Investors continued their search for income in this low-yield environment, which caused lower-quality bonds to perform very well. The Fund’s overweight to A-rated, BBB-rated, and out-of-benchmark below-investment-grade debt was the biggest contributor to excess returns.

n The Fund began the period with a duration that was longer than the benchmark. As rates rallied, we slowly reduced its duration and are now positioned for higher rates. We also began reducing the Fund’s bias for a flatter yield curve in the second quarter of 2016 given the amount of flattening that had already occurred.

n Issue selection within the special tax, education, health care, and transportation sectors contributed to results, while corporate-backed and resource recovery holdings detracted. Our largest state overweight was to Illinois debt, and it was one of the best-performing states despite its prolonged budgetary crisis.

Effective maturity distribution as of June 30, 2016⁶

Ultralow yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities between one and five years appeared less attractive at the beginning of the reporting period due to the potential for them to rise. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. We, therefore, extended the Fund’s duration in anticipation of lower yields and also positioned the Fund for a flatter yield curve. The Fund’s yield-curve positioning, which was underweight maturities between 1 and 7 years

and overweight the 10-year area, helped results. Longer-term maturities outperformed shorter-term maturities by a wide margin because the municipal curve flattened almost 150 basis points (bps; 100 bps equals 1.00%) between the 1- and 30-year maturities.

The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%. We initially kept the Fund’s duration long but started to reduce it as the market rallied. The Fund’s short duration positioning hurt relative performance during the second half of the reporting period as U.S. rates continued to move lower in sympathy with declining global interest rates.

Please see footnotes on page 5.

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

Credit quality as of June 30, 2016⁷

Credit-quality allocation helped results.

The Fund’s overweight to BBB-rated debt and its holdings in high-yield and nonrated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin. The Fund’s holdings within the special tax, education, and transportation sectors performed well. Notably, within the education sector, smaller private universities outperformed. On the other hand, issue selection within resource recovery and corporate-backed sectors detracted from results. While we have been cautious about the health care sector because we believe credit fundamentals have peaked, the Fund’s lower-rated health care issues contributed to performance. Although taxable corporate bond spreads

increased dramatically during late 2015 and early 2016 as global fears spooked the market, spreads for corporate-backed municipal debt declined. We sold into this rally, but continued new-money flows into high-yield and longer-term municipal bonds funds caused these spreads to move even tighter. Issue selection within Illinois, Colorado, and Michigan added to results. Regarding sector allocations, we reduced exposure to Illinois debt, added New York debt, and increased exposure to senior care

Political noise and a lack of a state budget caused volatility within Illinois, but the state’s bonds had some of the highest returns. We have been overweight Illinois bonds since the Fund’s inception because we feel that the above-market income is compensating investors for the credit issues. We continue to believe that the state’s economic backdrop and ability to raise revenues, combined with Illinois Governor Bruce Rauner’s focus on cutting expenses, should ultimately lead to tighter spreads. During the past 12 months, Puerto Rico had several widely anticipated defaults on its debt. The lack of clarity surrounding the federal government’s restructuring legislation for Puerto Rico debt, the lack of financial statements, and a declining economy make it very hard to develop an investment opinion for the territory. As a result, we had minimal exposure to Puerto Rico bonds. Finally, the Fund ended the year with no exposure to tobacco bonds. While the sector continued to outperform, recent developments highlighted longer-term risks within the sector. Fitch recently withdrew its credit ratings on all tobacco issues, citing the problematic modeling of revenues going forward.

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. In the (we would hope unlikely) event of a materially weaker U.S. economy, that could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo High Yield Municipal Bond Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,049.19	$	4.33		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.64	$	4.27		0.85	%
Class C
Actual	$	1,000.00	$	1,045.28	$	8.14		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.91	$	8.02		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,050.67	$	3.82		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.13	$	3.77		0.75	%
Institutional Class
Actual	$	1,000.00	$	1,050.48	$	3.06		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%

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

Portfolio of investments—June 30, 2016 Wells Fargo High Yield Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 99.79%
Alabama: 1.13%
Alabama State University General Tuition and Fee Revenue Bonds (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25	%		8-1-2032	$	1,000,000	$	1,000,260
Jefferson County AL Sewer Warrants CAB Senior Lien Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2027		920,000		595,866
									1,596,126
Arizona: 1.54%
Florence AZ IDA Legacy Traditional School Project Queen Creek & Casa Grande Campuses (Education Revenue)		5.00			7-1-2023		250,000		275,723
Phoenix AZ IDA Great Hearts Academies Project (Education Revenue)		5.20			7-1-2022		160,000		172,522
Phoenix AZ IDA Legacy Traditional Schools Project Series A (Education Revenue) 144A		6.50			7-1-2034		500,000		596,975
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		500,000		501,515
Pima County AZ IDA Refunding Bond Desert Heights Charter School Facility (Education Revenue)		6.00			5-1-2024		580,000		634,073
									2,180,808
California: 3.61%
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		500,000		605,455
California CDA Baptist University Series B (Education Revenue) 144A		5.75			11-1-2017		100,000		103,442
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		250,000		289,758
California School Finance Authority View Park Elementary & Middle Schools Series A (Education Revenue)		5.88			10-1-2044		1,000,000		1,115,360
California Statewide CDA Loma Linda University Medical Center Refunding Bond Series A (Health Revenue)		5.25			12-1-2044		1,000,000		1,143,880
California Statewide CDA Senior Living Health Facilities Los Angeles Jewish Home for the Aging Series D (Health Revenue)		4.75			8-1-2020		1,000,000		1,004,670
California Student Education Loan Marketing Corporation Series IV-D1 (Education Revenue)		5.88			1-1-2018		500,000		499,940
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		4.75			8-1-2019		225,000		241,558
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		5.00			8-1-2020		100,000		109,943
									5,114,006
Colorado: 5.47%
Arapahoe County CO Copperleaf Metropolitan District (GO Revenue)		5.75			12-1-2045		500,000		536,615
Arvada CO Jefferson Center Metropolitan District (Tax Revenue)		4.75			12-1-2026		1,280,000		1,340,646
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		500,000		549,065
Colorado Springs CO Utilities System Sub Lien Improvement Series B (Utilities Revenue, Bayerische Landesbank SPA) ø		0.56			11-1-2036		2,000,000		2,000,000
Eaton CO Area Park & Recreation District (GO Revenue)		5.00			12-1-2023		810,000		885,136
Eaton CO Area Park & Recreation District (GO Revenue)		5.50			12-1-2030		475,000		524,015
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		1,725,000		1,904,693
									7,740,170

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

10 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Delaware: 0.73%
Delaware EDA Odyssey Charter School Incorporated Project Series A (Education Revenue) 144A		7.00	%		9-1-2045	$	1,000,000	$	1,037,980
District of Columbia: 2.10%
District of Columbia Population Services International (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.48			11-1-2042		2,535,000		2,535,000
District of Columbia Tobacco Settlement Financing Corporation (Tobacco Revenue)		6.75			5-15-2040		435,000		437,297
									2,972,297
Florida: 4.06%
Crossings At Fleming Island Florida Community Development District Refunding Bond Senior Lien Series A-1 (Miscellaneous Revenue)		4.00			5-1-2024		1,000,000		1,044,440
Florida Development Finance Corporation Educational Facilities Renaissance Charter School Project Series A (Education Revenue)		8.50			6-15-2044		250,000		296,683
Holmes County FL Hospital Corporation Doctors Memorial Hospital Project (Health Revenue)		6.00			11-1-2038		250,000		250,678
Miami-Dade County FL IDA Youth Co-Op Charter Schools Project Series A (Education Revenue) 144A		6.00			9-15-2045		1,000,000		1,060,110
Orange County FL Health Facilities Authority Lakeside Health Facility (Health Revenue, SunTrust Bank LOC) ø		0.48			7-1-2027		2,150,000		2,150,000
Trout Creek Florida Community Development District (Miscellaneous Revenue)		4.88			5-1-2025		920,000		953,700
									5,755,611
Georgia: 2.59%
Cobb County GA Development Authority Student Housing Refunding Bond Kennesaw State University Foundation Project Series C (Housing Revenue)		5.00			7-15-2028		800,000		922,064
Georgia Road & Tollway Authority Toll Revenue Convertible CAB I-75 South Expressway Lanes Project Series B (Transportation Revenue) 144A±		0.00			6-1-2049		1,000,000		615,000
Savannah GA EDA Calvary Day School Project (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.50			11-1-2026		2,130,000		2,130,000
									3,667,064
Guam: 0.23%
Guam International Airport Authority Series C (Airport Revenue)		6.38			10-1-2043		260,000		318,128
Idaho: 0.34%
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		6.50			12-1-2038		200,000		213,316
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		6.25			5-1-2043		250,000		274,095
									487,411
Illinois: 14.60%
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		500,000		386,985
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2024		1,000,000		741,530
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2025		500,000		354,210
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2028		1,000,000		610,610

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

Portfolio of investments—June 30, 2016 Wells Fargo High Yield Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.39	%		3-1-2032	$	1,000,000	$	980,410
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2021		250,000		253,470
Chicago IL Midway Airport Refunding Bond Second Lien Series A (Airport Revenue)		5.00			1-1-2031		1,000,000		1,176,800
Chicago IL O’Hare International Bond Series B (Airport Revenue)		6.00			1-1-2041		150,000		179,864
Chicago IL Sales (Tax Revenue)		5.00			1-1-2032		1,500,000		1,657,275
Chicago IL Sales Series A (Tax Revenue)		5.00			1-1-2041		1,000,000		1,063,680
Chicago IL Series A (GO Revenue)		5.00			1-1-2033		310,000		311,181
Chicago IL Series A (GO Revenue)		5.25			1-1-2023		500,000		509,760
Chicago IL Series B (GO Revenue)		5.50			1-1-2032		700,000		718,634
Chicago IL Transit Authority Sales Tax Receipts Revenue Bonds (Tax Revenue, AGM Insured)		5.00			12-1-2044		1,000,000		1,182,070
Chicago IL Waste Water Transmission Second Lien Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		600,000		609,414
Chicago IL Water Revenue Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		500,000		506,925
Cook County IL School District #144 Prairie Hills CAB Refunding Bond Series C (GO Revenue, AGM Insured) ¤		0.00			12-1-2025		350,000		297,091
Cook County IL School District #144 Prairie Hills CAB Refunding Bond Series C (GO Revenue, AGM Insured) ¤		0.00			12-1-2025		730,000		519,380
Illinois (GO Revenue)		5.00			3-1-2033		2,000,000		2,150,840
Illinois (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.50			7-1-2025		525,000		626,173
Illinois (Miscellaneous Revenue)		5.50			7-1-2025		250,000		289,213
Illinois Finance Authority Charter School Aid Intrinsic Schools Belmont School Project Series A (Education Revenue) 144A		5.25			12-1-2025		800,000		830,680
Illinois Finance Authority Charter School Refunding Bond Series A (Education Revenue)		6.88			10-1-2031		725,000		804,692
Illinois Finance Authority Educational Facility Senior Rogers Park Montessori School (Miscellaneous Revenue)		6.00			2-1-2034		680,000		740,806
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		500,000		581,255
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2025		1,000,000		783,400
Lake County IL Community Unit School District #187 North Chicago Series A (GO Revenue, AGM Insured) ¤		0.00			1-1-2023		590,000		466,637
Sangamon County IL School District #186 Certificate of Participation Hay-Edwards Elementary School Project Series A (Miscellaneous Revenue, ACA Insured)		5.88			8-15-2018		85,000		83,554
Sangamon County IL School District #186 Certificate of Participation Hay-Edwards Elementary School Project Series A (Miscellaneous Revenue, ACA Insured)		6.13			8-15-2023		250,000		240,748
Will County IL Communty High School District #210 Lincoln-Way Series A (GO Revenue)		5.00			1-1-2030		1,000,000		1,027,350
									20,684,637
Indiana: 1.88%
Indiana Business Finance Authority Refunding Bond Marquette Project Series A (Health Revenue)		5.00			3-1-2030		1,100,000		1,264,989
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2034		250,000		284,840
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2040		1,000,000		1,116,590
									2,666,419
Iowa: 0.71%
Coralville IA Certificate of Participation Series D (Miscellaneous Revenue)		5.25			6-1-2026		1,000,000		1,000,590

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

12 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Kansas: 1.85%
Wyandotte County & Kansas City KS Special Obligation Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00	%		9-1-2034	$	4,400,000	$	1,598,828
Wyandotte County & Kansas City KS Special Obligation Refunding and Improvement Bonds Plaza Redevelopment Project (Tax Revenue)		4.00			12-1-2028		1,000,000		1,023,550
									2,622,378
Kentucky: 2.16%
Kentucky EDFA Refunding Bond Rosedale Green Project (Health Revenue)		5.50			11-15-2035		1,000,000		1,072,580
Kentucky EDFA Senior Revenue Bonds Next Generation Information Highway Project Series A (Miscellaneous Revenue)		5.00			7-1-2037		700,000		819,742
Kentucky EDFA Senior Revenue Bonds Next Generation Information Highway Project Series A (Miscellaneous Revenue)		5.00			1-1-2045		1,000,000		1,164,140
									3,056,462
Maryland: 0.74%
Prince Georges County MD Charter School Chesapeake Lighthouse Obligated Group Series A (Education Revenue) 144A		6.90			8-1-2041		1,000,000		1,048,220
Michigan: 9.10%
Charyl Stockwell Academy Michigan Public School Refunding Bond (Miscellaneous Revenue)		4.88			10-1-2023		500,000		519,455
Detroit MI Distribution of State Aid (GO Revenue)		4.50			11-1-2023		275,000		300,955
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2020		285,000		239,582
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2021		170,000		138,009
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2024		20,000		13,937
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2025		580,000		382,029
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2018		1,000,000		1,000,660
Michigan Finance Authority Limited Obligation Public School Academy Cesar Chavez Academy Project (Education Revenue)		5.00			2-1-2022		250,000		252,640
Michigan Finance Authority Refunding Bond Local Government Loan Program City of Detroit Financial Recovery Series F (Tax Revenue)		4.50			10-1-2029		1,000,000		1,120,460
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D4 (Water & Sewer Revenue)		5.00			7-1-2031		1,015,000		1,202,866
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2036		1,000,000		1,170,030
Michigan Finance Authority Refunding Bonds Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		1,000,000		1,148,250
Michigan Finance Authority Refunding Bonds Local Government Loan Program Series C (Miscellaneous Revenue)		5.00			11-1-2020		1,000,000		1,113,900
Michigan Municipal Bond Authority Local Government Loan Program CAB Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2017		300,000		294,018
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.75			5-1-2027		950,000		961,885
Michigan Public Educational Facilities Authority Chandler Park Academy (Miscellaneous Revenue)		6.35			11-1-2028		225,000		225,473
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue) 144A		6.50			9-1-2037		200,000		160,004
Michigan Public Educational Facilities Authority Limited Obligation Crescent Academy (Education Revenue)		7.00			10-1-2036		322,500		341,973

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

Portfolio of investments—June 30, 2016 Wells Fargo High Yield Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13	%		7-1-2045	$	1,000,000	$	1,026,830
Oakland County MI Economic Development Corporation The Academy of The Sacred Heart Project Series A (Education Revenue)		6.50			12-15-2036		250,000		254,065
Wayne County MI Building Improvement Series A (GO Revenue)		6.75			11-1-2039		960,000		1,024,762
									12,891,783
Minnesota: 1.38%
Deephaven MN Charter School Eagle Ridge Academy Project Series 2015-A (Education Revenue)		5.25			7-1-2037		240,000		260,604
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		4.40			7-1-2025		160,000		170,808
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		4.75			7-1-2028		500,000		536,720
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		5.00			7-1-2030		195,000		211,926
Minneapolis MN Student Housing Refunding Bond Riverton Community Housing Project (Housing Revenue)		4.70			8-1-2026		335,000		355,763
Minneapolis MN Student Housing Refunding Bond Riverton Community Housing Project (Housing Revenue)		4.80			8-1-2027		400,000		424,976
									1,960,797
Mississippi: 1.41%
Perry County MS PCR Leaf River Forest Products Incorporated Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.60			2-1-2022		2,000,000		2,000,000
Missouri: 0.68%
Blue Springs MO Special Obligation Tax Refunding and Improvement Adams Farm Project Series A (Tax Revenue)		4.00			6-1-2026		915,000		956,248
New Jersey: 3.92%
Essex County NJ Improvement Authority Lease Newark Project Series A (Miscellaneous Revenue)		6.25			11-1-2030		200,000		216,564
New Jersey EDA Continental Airlines Incorporated Project (Industrial Development Revenue)		5.25			9-15-2029		250,000		280,705
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue, National Insured)		5.00			3-1-2030		1,000,000		1,103,500
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		1,000,000		533,990
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		2,000,000		2,292,120
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2027		1,000,000		1,130,490
									5,557,369
New York: 10.51%
Green Island NY Power Authority Power System (Utilities Revenue)		6.00			12-15-2020		890,000		907,756
Hempstead NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		1,000,000		1,146,230
Monroe County NY Industrial Development Agency Continuing Development Services Project (Industrial Development Revenue, Citizens Bank LOC) ø		0.65			7-1-2027		2,725,000		2,725,000
New York NY American Airlines John F. Kennedy International Airport IDA (Industrial Development Revenue, American Airlines Guaranty Agreement)		7.63			8-1-2025		300,000		304,116

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

14 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York NY Municipal Water Finance Authority Series AA3 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.60	%		6-15-2032	$	3,000,000	$	3,000,000
New York NY Transitional Finance Authority Sub Series 2E (Tax Revenue, Dexia Credit Local SPA) ø		0.64			11-1-2022		3,000,000		3,000,000
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		1,000,000		1,000,400
Oyster Bay NY BAN Series C (GO Revenue)		4.00			6-1-2018		2,000,000		2,026,720
Oyster Bay NY Public Improvement Bonds (GO Revenue)		3.00			8-15-2020		500,000		492,595
Westchester County NY Local Development Corporation Pace University Series A (Education Revenue)		5.00			5-1-2034		250,000		286,725
									14,889,542
Ohio: 1.94%
Maple Heights OH City School District Certificate of Participation (Miscellaneous Revenue)		6.00			11-1-2028		500,000		540,555
Ohio Air Quality Development Authority AMT Refunding Bond Pollution Control 1st Energy Series C (Industrial Development Revenue) ±		3.95			11-1-2032		1,000,000		1,023,570
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2039		1,000,000		1,177,440
									2,741,565
Oklahoma: 0.53%
Cherokee Nation of Oklahoma Health Care System Series 2006 (Health Revenue, ACA Insured) 144A		4.60			12-1-2021		740,000		748,939
Oregon: 0.77%
Multnomah County OR Hospital Facilities Authority Refunding Bond Mirabella South Waterfront Project Series A (Health Revenue)		5.00			10-1-2019		455,000		494,021
Polk County OR Hospital Facility Authority Revenue Bond Dallas Retirement Village Project Series 2015-A (Health Revenue)		5.00			7-1-2025		550,000		598,609
									1,092,630
Pennsylvania: 4.49%
Allegheny County PA IDA Propel Charter School Sunrise Project (Education Revenue)		5.25			7-15-2023		155,000		166,884
Chester County PA Health and Education Facilities Immaculata University Project (Education Revenue)		5.50			10-15-2025		1,000,000		1,021,470
East Hempfield Township PA IDA Student Services Incorporated Student Housing Project of Millersville University (Education Revenue)		5.00			7-1-2029		500,000		570,295
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue)		5.00			4-1-2026		1,655,000		2,019,100
Philadelphia PA IDA Tacony Academy Charter School Project (Education Revenue)		6.88			6-15-2033		375,000		431,741
Philadelphia PA State Public School Building Authority School District Project (Miscellaneous Revenue)		5.00			4-1-2031		1,000,000		1,082,910
Scranton PA Redevelopment Authority Guaranteed Series A (Miscellaneous Revenue, Municipal Government Guaranty Insured)		5.00			11-15-2021		1,000,000		1,070,350
									6,362,750
Puerto Rico: 2.51%
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		700,000		724,899

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

Portfolio of investments—June 30, 2016 Wells Fargo High Yield Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico (continued)
Puerto Rico Electric Power Authority Refunding Bond Series MM (Utilities Revenue, National Insured)		5.00	%		7-1-2016	$	50,000	$	50,005
Puerto Rico Highway & Transportation Authority Series A (Tax Revenue, Ambac Insured) ¤		0.00			7-1-2017		1,000,000		964,000
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue) ##		5.00			7-1-2018		1,275,000		1,325,975
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Tax Revenue, Government Development Bank for Puerto Rico SPA) (s)		6.00			8-1-2024		1,175,000		135,125
Puerto Rico Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016		210,000		210,021
Puerto Rico Series PA-650 (Tax Revenue, National Insured)		6.00			7-1-2016		150,000		150,017
									3,560,042
Rhode Island: 1.06%
Rhode Island Commerce Corporation Series D (Airport Revenue) %%		5.00			7-1-2037		500,000		598,255
Rhode Island Commerce Corporation Series D (Airport Revenue) %%		5.00			7-1-2041		750,000		900,293
									1,498,548
South Carolina: 0.83%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		152,230		137,767
Jasper County SC School Project (Miscellaneous Revenue)		4.00			4-1-2020		30,000		31,618
Lee County SC School Facilities Incorporated Series 2006 (Miscellaneous Revenue, AGC Insured)		6.00			12-1-2031		215,000		230,770
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		5.75			11-1-2023		185,000		198,942
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.25			11-1-2045		500,000		569,300
									1,168,397
Tennessee: 1.77%
Shelby County TN Health Educational & Housing Facilities Board Methodist Le Bonheur Series B (Health Revenue, AGM Insured, U.S. Bank NA SPA) ø		0.42			6-1-2042		2,500,000		2,500,000
Texas: 7.97%
Arlington TX Higher Education Finance Corporation Universal Academy Series A (Education Revenue)		7.00			3-1-2034		320,000		341,773
Hackberry TX Special Assessment Revenue Public Improvement District #3 Phase #13 (Miscellaneous Revenue)		6.00			9-1-2026		225,000		236,070
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		1,000,000		1,054,290
New Hope TX Cultural Education Facilities Finance Corporation Cardinal Bay Incorporated Village On The Park Carriage Inn Series B (Health Revenue)		5.00			7-1-2046		2,500,000		2,848,150
New Hope TX Cultural Education Facilities Finance Corporation Collegiate Housing San Antonio I LLC A&M Universiity Series A (Housing Revenue)		5.00			4-1-2036		1,000,000		1,154,260
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.54			4-1-2040		2,500,000		2,500,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.54			4-1-2040		1,500,000		1,500,000

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

16 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Tarrant County TX Cultural Education Facilities Finance Corporation Series B (Health Revenue)		5.00	%		11-15-2030	$	1,000,000	$	1,157,930
Texas Gas Supply SA Energy Acquisition Public Facilities Corporation (Utilities Revenue)		5.50			8-1-2027		190,000		245,102
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		200,000		254,658
									11,292,233
Utah: 0.73%
Utah Finance Authority Charter School Revenue Spectrum Academy Project (Education Revenue) 144A		5.00			4-15-2030		1,000,000		1,031,250
Virginia: 2.77%
Albemarle County VA Industrial Development Revenue Jefferson Scholars Foundation Project (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.48			10-1-2037		2,300,000		2,300,000
Stafford County & Staunton VA IDA Community Services Boards League/Central Series B (Miscellaneous Revenue)		6.50			8-1-2028		1,555,000		1,623,364
									3,923,364
Washington: 0.92%
Skagit County WA Public Hospital District #1 Skagit Valley Hospital Project (Health Revenue)		5.25			12-1-2025		250,000		279,990
Washington Housing Finance Commission Nonprofit Housing Revenue Bonds Heron’s Key Senior Living Series B3 (Health Revenue) 144A		4.38			1-1-2021		1,000,000		1,015,410
									1,295,400
West Virginia: 0.20%
West Virginia Hospital Finance Authority (Health Revenue)		6.25			10-1-2023		270,000		287,504
Wisconsin: 2.19%
Wisconsin Center District Refunding Bond Junior Dedicated Series A (Tax Revenue)		5.00			12-15-2028		1,000,000		1,164,610
Wisconsin PFA Charter School Voyager Funding Incorporated Project Series A (Education Revenue)		4.13			10-1-2024		325,000		340,304
Wisconsin PFA Coral Academy Science Las Vegas Series A (Education Revenue)		5.00			7-1-2024		500,000		555,640
Wisconsin PFA Research Triangle High School Project Series 2015-A (Education Revenue) 144A		5.63			7-1-2045		1,000,000		1,042,650
									3,103,204
Wyoming: 0.37%
Sweetwater County WY Solid Waste Disposal Refunding Bond FMC Corporation Project (Industrial Development Revenue)		5.60			12-1-2035		525,000		527,048
Total Municipal Obligations (Cost $134,531,794)									141,336,920
	Yield					Shares
Short-Term Investments: 0.23%
Investment Companies: 0.16%
Wells Fargo Municipal Cash Management Fund Institutional Class ##(l)(u)		0.30					226,858		226,858

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

Portfolio of investments—June 30, 2016 Wells Fargo High Yield Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities: 0.07%
Treasury Bill (z)#		0.22	%		9-15-2016	$	100,000	$	99,954
Total Short-Term Investments (Cost $326,802)									326,812

Total investments in securities (Cost $134,858,596) *	100.02	%		141,663,732
Other assets and liabilities, net	(0.02	)		(27,257	)
Total net assets	100.00	%	$	141,636,475

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

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

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

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

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

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

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

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

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

(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 $134,858,596 and unrealized gains (losses) consists of:

Gross unrealized gains	$	6,881,227
Gross unrealized losses		(76,091	)
Net unrealized gains	$	6,805,136

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

18 Wells Fargo High Yield Municipal Bond Fund Statement of assets and liabilities—June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $134,631,738)	$	141,436,874
In affiliated securities, at value (cost $226,858)		226,858
Total investments, at value (cost $134,858,596)		141,663,732
Receivable for investments sold		310,000
Receivable for Fund shares sold		286,003
Receivable for interest		1,370,638
Receivable for daily variation margin on open futures contracts		6,563
Prepaid expenses and other assets		39,165
Total assets		143,676,101
Liabilities
Dividends payable		61,067
Payable for investments purchased		1,485,280
Payable for Fund shares redeemed		412,208
Management fee payable		36,927
Distribution fee payable		6,135
Administration fees payable		12,595
Accrued expenses and other liabilities		25,414
Total liabilities		2,039,626
Total net assets	$	141,636,475
NET ASSETS CONSIST OF
Paid-in capital	$	133,975,589
Overdistributed net investment income		(5,389	)
Accumulated net realized gains on investments		962,488
Net unrealized gains on investments		6,703,787
Total net assets	$	141,636,475
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	38,018,118
Shares outstanding – Class A1		3,483,386
Net asset value per share – Class A		$10.91
Maximum offering price per share – Class A2		$11.42
Net assets – Class C	$	10,572,515
Shares outstanding – Class C1		968,632
Net asset value per share – Class C		$10.91
Net assets – Administrator Class	$	25,178,901
Shares outstanding – Administrator Class1		2,306,441
Net asset value per share – Administrator Class		$10.92
Net assets – Institutional Class	$	67,866,941
Shares outstanding – Institutional Class1		6,219,367
Net asset value per share – Institutional Class		$10.91

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—June 30, 2016 Wells Fargo High Yield Municipal Bond Fund 19

Investment income
Interest	$	4,898,604
Dividends		63,304
Income from affiliated securities		2,836
Total investment income		4,964,744
Expenses
Management fee		596,970
Administration fees
Class A		43,549
Class C		9,885
Administrator Class		19,430
Institutional Class		53,254
Shareholder servicing fees
Class A		68,045
Class C		15,446
Administrator Class		47,385
Distribution fee
Class C		46,337
Custody and accounting fees		12,716
Professional fees		45,580
Registration fees		94,210
Shareholder report expenses		7,825
Trustees’ fees and expenses		20,174
Other fees and expenses		9,971
Total expenses		1,090,777
Less: Fee waivers and/or expense reimbursements		(215,439	)
Net expenses		875,338
Net investment income		4,089,406
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		967,864
Futures transactions		(5,355	)
Net realized gains on investments		962,509
Net change in unrealized gains (losses) on:
Unaffiliated securities		6,205,509
Futures transactions		(101,349	)
Net change in unrealized gains (losses) on investments		6,104,160
Net realized and unrealized gains (losses) on investments		7,066,669
Net increase in net assets resulting from operations	$	11,156,075

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

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

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	4,089,406					$	2,965,276
Net realized gains on investments					962,509						833,386
Net change in unrealized gains (losses) on investments					6,104,160						(372,294	)
Net increase in net assets resulting from operations					11,156,075						3,426,368
Distributions to shareholders from
Net investment income
Class A					(894,513	)					(567,578	)
Class C					(154,285	)					(103,763	)
Administrator Class					(659,408	)					(468,922	)
Institutional Class					(2,387,200	)					(1,825,014	)
Net realized gains
Class A					(78,573	)					(132,615	)
Class C					(16,949	)					(34,119	)
Administrator Class					(60,643	)					(126,197	)
Institutional Class					(205,261	)					(425,024	)
Total distributions to shareholders					(4,456,832	)					(3,683,232	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,125,225			22,523,949			2,202,847			22,891,217
Class C		634,079			6,747,929			316,623			3,299,033
Administrator Class		1,668,935			17,660,288			2,186,625			22,789,956
Institutional Class		1,691,722			17,947,276			6,997,943			73,016,661
					64,879,442						121,996,867
Reinvestment of distributions
Class A		88,701			939,044			63,922			668,808
Class C		14,306			151,701			11,333			118,567
Administrator Class		56,332			597,072			45,410			475,587
Institutional Class		166,900			1,762,332			153,261			1,603,296
					3,450,149						2,866,258
Payment for shares redeemed
Class A		(771,697	)		(8,162,455	)		(617,789	)		(6,419,871	)
Class C		(117,144	)		(1,224,951	)		(117,137	)		(1,215,465	)
Administrator Class		(750,383	)		(7,978,247	)		(1,220,440	)		(12,812,718	)
Institutional Class		(3,003,097	)		(31,534,674	)		(2,820,561	)		(29,381,761	)
					(48,900,327	)					(49,829,815	)
Net increase in net assets resulting from capital share transactions					19,429,264						75,033,310
Total increase in net assets					26,128,507						74,776,446
Net assets
Beginning of period					115,507,968						40,731,522
End of period				$	141,636,475					$	115,507,968
Undistributed (overdistributed) net investment income				$	(5,389	)				$	611

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

Financial highlights Wells Fargo High Yield Municipal Bond Fund 21

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			20131
Net asset value, beginning of period		$10.34			$10.25			$9.52			$10.00
Net investment income		0.35			0.34			0.40			0.13
Net realized and unrealized gains (losses) on investments		0.60			0.18			0.75			(0.49	)
Total from investment operations		0.95			0.52			1.15			(0.36	)
Distributions to shareholders from
Net investment income		(0.35	)		(0.34	)		(0.40	)		(0.12	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.38	)		(0.43	)		(0.42	)		(0.12	)
Net asset value, end of period		$10.91			$10.34			$10.25			$9.52
Total return2		9.44	%		5.06	%		12.41	%		(3.61	)%
Ratios to average net assets (annualized)
Gross expenses		1.07	%		1.07	%		1.90	%		3.45	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		3.28	%		3.26	%		3.98	%		3.21	%
Supplemental data
Portfolio turnover rate		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$38,018			$21,100			$4,022			$998

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

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

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

22 Wells Fargo High Yield Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			20131
Net asset value, beginning of period		$10.34			$10.25			$9.52			$10.00
Net investment income		0.27			0.26			0.33			0.09
Net realized and unrealized gains (losses) on investments		0.60			0.18			0.75			(0.48	)
Total from investment operations		0.87			0.44			1.08			(0.39	)
Distributions to shareholders from
Net investment income		(0.27	)		(0.26	)		(0.33	)		(0.09	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.30	)		(0.35	)		(0.35	)		(0.09	)
Net asset value, end of period		$10.91			$10.34			$10.25			$9.52
Total return2		8.62	%		4.28	%		11.58	%		(3.89	)%
Ratios to average net assets (annualized)
Gross expenses		1.82	%		1.82	%		2.58	%		4.05	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.49	%		2.50	%		3.15	%		2.25	%
Supplemental data
Portfolio turnover rate		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$10,573			$4,522			$2,323			$481

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

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

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

Financial highlights Wells Fargo High Yield Municipal Bond Fund 23

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			20131
Net asset value, beginning of period		$10.34			$10.26			$9.52			$10.00
Net investment income		0.36			0.35			0.41			0.13
Net realized and unrealized gains (losses) on investments		0.61			0.17			0.76			(0.48	)
Total from investment operations		0.97			0.52			1.17			(0.35	)
Distributions to shareholders from
Net investment income		(0.36	)		(0.35	)		(0.41	)		(0.13	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.39	)		(0.44	)		(0.43	)		(0.13	)
Net asset value, end of period		$10.92			$10.34			$10.26			$9.52
Total return2		9.65	%		5.07	%		12.63	%		(3.57	)%
Ratios to average net assets (annualized)
Gross expenses		1.00	%		1.00	%		1.80	%		3.24	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		3.39	%		3.35	%		4.14	%		3.10	%
Supplemental data
Portfolio turnover rate		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$25,179			$13,768			$3,282			$482

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

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

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

24 Wells Fargo High Yield Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			2015			2014			20131
Net asset value, beginning of period		$10.34			$10.25			$9.52			$10.00
Net investment income		0.38			0.37			0.42			0.13
Net realized and unrealized gains (losses) on investments		0.60			0.18			0.75			(0.48	)
Total from investment operations		0.98			0.55			1.17			(0.35	)
Distributions to shareholders from
Net investment income		(0.38	)		(0.37	)		(0.42	)		(0.13	)
Net realized gains		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.41	)		(0.46	)		(0.44	)		(0.13	)
Net asset value, end of period		$10.91			$10.34			$10.25			$9.52
Total return2		9.71	%		5.33	%		12.70	%		(3.52	)%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.74	%		1.53	%		2.97	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.58	%		3.51	%		4.26	%		3.25	%
Supplemental data
Portfolio turnover rate		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$67,867			$76,118			$31,105			$8,204

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

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

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

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

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although a Fund 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 primary exchange or market that day, the prior day’s price will be deemed “stale” and a fair value price will be determined in accordance with the Fund’s Valuation Procedures.

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

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

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

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In a securities lending transaction, the net asset value of the Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or

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

may experience delays or costs in doing so. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), 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 Statement of Operations.

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Futures contracts

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

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Security transactions and income recognition

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

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

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

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the

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

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

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Municipal obligations	$	0	$	141,336,920	$	0	$	141,336,920
Short-term investments
Investment companies		226,858		0		0		226,858
U.S. Treasury securities		99,954		0		0		99,954
		326,812		141,336,920		0		141,663,732
Futures contracts		6,563		0		0		6,563
Total assets	$	333,375	$	141,336,920	$	0	$	141,670,295

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1 or Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds

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

Management is entitled to receive an annual management fee starting at 0.50% and declining to 0.38% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.

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

Administration fees

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

	Class-level administration fee
Class A, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.85% for Class A shares, 1.60% for Class C shares, 0.75% for Administrator Class shares, and 0.60% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $5,591 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $72,132,384 and $65,711,558, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

Notes to financial statements Wells Fargo High Yield Municipal Bond Fund 29

At June 30, 2016, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at June 30, 2016		Unrealized losses
9-21-2016	JPMorgan	10 Short		U.S. Treasury Bonds	$	1,723,438	$	(101,349	)

The Fund had an average notional amount of $471,414 in futures contracts during the year ended June 30, 2016.

On June 30, 2016, the cumulative unrealized losses on futures contracts in the amount of $101,349 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$6,563	$	0	$	0	$	6,563

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Ordinary income	$	361,426	$	699,045
Tax-exempt income		4,095,406		2,965,277
Long-term capital gain		0		18,910

30 Wells Fargo High Yield Municipal Bond Fund Notes to financial statements

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed tax-exempt income	Undistributed long-term gain	Unrealized gains
$324,047	$55,678	$537,092	$6,805,136

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo High Yield Municipal Bond Fund 31

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo High Yield Municipal Bond Fund (formerly known as Wells Fargo Advantage High Yield Municipal Bond Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the three-year period then ended and the period from January 31, 2013 (commencement of operations) to June 30, 2013. 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 June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo High Yield Municipal Bond Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the three-year period then ended and the period from January 31, 2013 (commencement of operations) to June 30, 2013, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

For the fiscal year ended June 30, 2016, $361,426 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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

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

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

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

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo High Yield Municipal Bond Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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

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

Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays Municipal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were lower than or equal to the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Other information (unaudited) Wells Fargo High Yield Municipal Bond Fund 37

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

38 Wells Fargo High Yield Municipal Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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 Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244403 08-16 A264/AR264 6-16

Annual Report

June 30, 2016

Wells Fargo Intermediate Tax/AMT-Free Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Summary portfolio of investments*	9
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	22
Report of independent registered public accounting firm	27
Other information	28
List of abbreviations	34

* A complete schedule of portfolio holdings as of the report date may be obtained, free of charge, by accessing the following website: https://www.wellsfargofunds.com/assets/edocs/regulatory/holdings/intermediate-tax-amt-free-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 June 30, 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 Intermediate Tax/AMT-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Intermediate Tax/AMT-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

The Fund seeks current income exempt from federal income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Lyle J. Fitterer, CFA^®, CPA

Robert J. Miller

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (WFTAX)	7-31-2007		2.81		3.84		4.26		5.99		4.47		4.58		0.80		0.70
Class C (WFTFX)	7-31-2007		4.20		3.69		3.81		5.20		3.69		3.81		1.55		1.45
Administrator Class (WFITX)	3-31-2008		–		–		–		6.09		4.58		4.68		0.74		0.60
Institutional Class (WITIX)	3-31-2008		–		–		–		6.26		4.76		4.84		0.47		0.45
Barclays Municipal Bond 1-15 Year Blend Index4	–		–		–		–		6.12		4.22		4.75		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 3.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁵

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

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amount shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond 1–15 Year Blend Index is the 1–15 Year Blend component of the Barclays Municipal Bond Index. The Barclays Municipal Bond Index is an unmanaged index composed of tax-exempt bonds with maturities between six and eight years and a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal Bond 1–15 Year Blend 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 3.00%.

⁶  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays Municipal Bond 1–15 Year Blend Index, for the 12-month period that ended June 30, 2016.

n The Fund was short duration compared with the benchmark, which detracted from results as the market rallied.

n Investors’ search for income, which favored higher yielding, lower-quality bonds in this low-yield environment, caused lower-quality bonds to perform very well. Consequently, the Fund’s overweight to A-rated, BBB-rated, and out-of-benchmark below-investment-grade debt was the biggest contributor to returns.

n Sector and issue selection also contributed to performance. Our overweight to the essential service revenue bonds and local general obligation (GO) bonds was positive as these sectors outperformed. Our largest state overweight continues to be to Illinois, and it was one of the best-performing states.

Ultralow-yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential for higher short-term yields. Subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. We, therefore, positioned the Fund for a flatter yield curve. While we owned bonds across the curve, the Fund had a concentration of positions in bonds with 20 years or more to maturity and in securities with less than 1 year to maturity. Overall, the Fund benefited from its flattening bias, with the longer-dated securities performing well. However, our allocation to the very short end of the yield curve somewhat muted performance.

The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. We began the period short duration relative to the benchmark, but with the Fed likely on hold for an extended period, we extended duration to near neutral. Less-than-benchmark duration hurt relative performance, especially during the second half of the period as U.S. rates continued to move lower in sympathy with declining global interest rates.

Credit quality as of June 30, 2016⁶

Credit-quality allocation helped results.

The Fund’s overweight to A-rated and BBB-rated debt and its out-of-benchmark holdings in high-yield and nonrated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin during the period. The Fund’s holdings within the local GO, electric, transportation, water and sewer, leasing, and special tax sectors performed well. On the other hand, the health care and industrial development revenue/pollution control revenue (corporate-backed municipals) sectors within the index performed well, but our issue selection within those sectors lagged, largely because of their shorter duration profile. We have been

cautious within the health care sector for quite some time because we believe credit fundamentals have peaked. Our largest state overweight continues to be to Illinois, and it was one of the best-performing states. Issue selection within Illinois, California, and Michigan contributed to results, while issue selection within New Jersey detracted from results, even though the state did well. Although taxable corporate bond spreads increased dramatically during late 2015 and early 2016 as global fears spooked the market, spreads for corporate-backed municipal debt declined. We sold into this rally, but continued new-money flows into high-yield and longer-term municipal bond funds caused these spreads to move even tighter.

Political noise and a lack of a state budget caused volatility within Illinois, but the state’s bonds had some of the highest returns. We have been overweight Illinois bonds for several years because we feel that the above-market income is compensating investors for the credit issues. We continue to believe that the state’s economic backdrop and ability to raise revenues, combined with Illinois Governor Bruce Rauner’s focus on cutting expenses, should ultimately lead to

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 7

tighter spreads. New Jersey bonds also performed well as spreads tightened; however, issue selection within the state detracted from results, primarily due to our exposure to longer-dated floating-rate notes that repriced to reflect a protracted rate-hike cycle. During the past 12 months, Puerto Rico had several widely anticipated defaults on its debt. The lack of clarity surrounding the federal government’s restructuring legislation for Puerto Rico debt, the lack of financial statements, and a declining economy make it very hard to develop an investment opinion for the territory. As a result, we continue to have minimal exposure to Puerto Rico bonds.

Effective maturity distribution as of June 30, 2016⁷

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. In the (we would hope unlikely) event of a materially weaker U.S. economy, that could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo Intermediate Tax/AMT-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,031.88	$	3.54		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.38	$	3.52		0.70	%
Class C
Actual	$	1,000.00	$	1,028.05	$	7.31		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.65	$	7.27		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,032.37	$	3.03		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,033.12	$	2.27		0.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.63	$	2.26		0.45	%

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

Summary portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 9

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

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Municipal Obligations: 101.06%
Alabama: 0.24%
Other securities								$	6,360,725		0.24	%
Alaska: 0.17%
Other securities									4,546,002		0.17
Arizona: 1.50%
Other securities									40,060,617		1.50
California: 10.03%
Bay Area CA Toll Authority Series A (Transportation Revenue) ±		1.66	%		4-1-2036	$	20,000,000		19,757,800		0.74
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.59			8-1-2027		14,975,000		14,975,000		0.56
California Public Works University of California Board of Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		12,110,000		14,668,480		0.55
San Jose CA MFHR Casa Del Pueblo Apartments Project Series D (Housing Revenue) ±		0.95			12-1-2017		10,000,000		10,003,100		0.37
University of California Limited Project Series G (Education Revenue)		5.00			5-15-2037		10,390,000		12,274,019		0.46
University of California Medical Center Series J (Health Revenue)		5.25			5-15-2030		15,000,000		18,427,800		0.69
Other securities									178,326,770		6.66
									268,432,969		10.03
Colorado: 0.80%
Colorado Springs CO Utilities System Sub Lien Improvement Series B (Utilities Revenue, Bayerische Landesbank SPA) ø		0.56			11-1-2036		12,000,000		12,000,000		0.45
Other securities									9,453,342		0.35
									21,453,342		0.80
Connecticut: 3.00%
Connecticut HEFA Yale University Series A (Education Revenue) ±%%		1.00			7-1-2042		25,000,000		25,072,500		0.94
Connecticut HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		10,000,000		10,119,300		0.38
Other securities									45,013,709		1.68
									80,205,509		3.00
Delaware: 0.08%
Other securities									2,069,980		0.08
District of Columbia: 0.56%
Other securities									14,862,743		0.56
Florida: 4.85%
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		0.79			9-25-2024		12,705,000		12,705,000		0.47
Other securities									116,989,022		4.38
									129,694,022		4.85

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

10 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Georgia: 0.94%
Other securities								$	25,219,538		0.94	%
Guam: 0.42%
Other securities									11,138,901		0.42
Illinois: 16.32%
Chicago IL Board of Education (GO Revenue) µ		0.00-5.25	%		12-1-2020 to 3-1-2036	$	44,170,000		40,176,331		1.50
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue)		5.25			1-1-2032		8,755,000		10,588,822		0.40
Chicago IL (GO Revenue) µ		0.00-5.25			1-1-2019 to 1-1-2037		32,310,000		32,226,292		1.20
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		16,865,000		17,158,788		0.64
Chicago IL Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		10,000,000		10,138,500		0.38
Illinois (Various Revenue) µ		4.75-5.50			9-1-2016 to 7-1-2026		18,985,000		21,281,264		0.79
Illinois (Tax Revenue)		5.00			6-15-2023		16,050,000		19,563,345		0.73
Illinois Finance Authority OSF Healthcare System Series F (Health Revenue, Barclays Bank plc LOC) ø##		0.42			11-15-2037		20,000,000		20,000,000		0.75
Illinois Regional Transportation Authority (Tax Revenue, National Insured)		6.50			7-1-2026		7,815,000		10,693,421		0.40
Illinois Series A (Tax Revenue)		5.00			1-1-2027		10,625,000		11,516,013		0.43
Other securities									243,342,859		9.10
									436,685,635		16.32
Indiana: 2.39%
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.26			11-15-2031		15,000,000		15,000,150		0.56
Other securities									49,079,317		1.83
									64,079,467		2.39
Iowa: 0.44%
Other securities									11,794,576		0.44
Kansas: 0.23%
Other securities									6,235,310		0.23
Kentucky: 0.46%
Other securities									12,213,528		0.46
Louisiana: 2.02%
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø##		0.70			11-1-2040		25,000,000		25,000,000		0.94
Other securities									29,024,369		1.08
									54,024,369		2.02
Maryland: 1.53%
Maryland Series B (GO Revenue)		4.00			8-1-2024		15,000,000		18,141,600		0.68
Other securities									22,860,864		0.85
									41,002,464		1.53

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

Summary portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Massachusetts: 2.23%
Massachusetts HEFA Various Partners Healthcare Series G-6 (Health Revenue) ±		1.29	%		7-1-2038	$	14,000,000	$	13,998,740		0.52	%
Other securities									45,591,939		1.71
									59,590,679		2.23
Michigan: 3.69%
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue)		5.00			7-1-2030		12,000,000		14,269,080		0.53
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		11,500,000		11,808,545		0.44
Other securities									72,806,072		2.72
									98,883,697		3.69
Minnesota: 0.28%
Other securities									7,601,084		0.28
Mississippi: 0.54%
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project Series A (Water & Sewer Revenue, AGM Insured)		5.00			9-1-2030		10,000,000		11,918,300		0.44
Other securities									2,652,866		0.10
									14,571,166		0.54
Missouri: 0.29%
Other securities									7,667,993		0.29
Nebraska: 0.12%
Other securities									3,229,996		0.12
Nevada: 1.32%
Other securities									35,320,350		1.32
New Hampshire: 0.08%
Other securities									2,229,752		0.08
New Jersey: 4.07%
New Jersey EDA School Facilities (Miscellaneous Revenue) µ		2.01-5.00			6-15-2026 to 3-1-2028		13,380,000		13,936,479		0.52
New Jersey EDA School Facilities Construction Refunding Bond Series NN (Miscellaneous Revenue)		5.00			3-1-2021		15,035,000		16,649,158		0.62
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2019		9,860,000		10,842,549		0.40
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144Aø		0.59			12-15-2022		19,850,000		19,850,000		0.74
Other securities									47,732,711		1.79
									109,010,897		4.07

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

12 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New Mexico: 0.65%
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00	%		11-1-2028	$	9,265,000	$	11,199,717		0.42	%
Other securities									6,247,030		0.23
									17,446,747		0.65
New York: 10.92%
Metropolitan Transportation Authority New York (Transportation Revenue) µ		5.00-5.25			11-15-2025 to 11-15-2031		20,450,000		25,835,815		0.96
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2029		11,100,000		14,417,568		0.54
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2030		8,350,000		10,824,773		0.40
New York Convention Center Development Corporation (Tax Revenue)		5.00			11-15-2028		8,000,000		10,219,040		0.38
New York NY Municipal Water Finance Authority Series AA-2 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.50			6-15-2032		15,475,000		15,475,000		0.58
New York NY Series J-4 (GO Revenue) ±		0.96			8-1-2025		10,000,000		10,000,300		0.37
New York NY Sub Series H-5 (GO Revenue, Dexia Credit Local LOC) ø		0.60			3-1-2034		16,660,000		16,660,000		0.62
New York NY Transitional Finance Authority Sub Series 2B (Tax Revenue, Dexia Credit Local SPA) ø##		0.56			11-1-2022		23,400,000		23,400,000		0.87
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		14,940,000		14,945,976		0.56
Suffolk County NY TAN (GO Revenue) ##		2.00			7-27-2016		20,855,000		20,875,438		0.78
Other securities									129,715,891		4.86
									292,369,801		10.92
North Carolina: 0.60%
Other securities									16,044,558		0.60
North Dakota: 0.18%
Other securities									4,711,677		0.18
Ohio: 2.43%
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series A (Water & Sewer Revenue) ±		3.75			6-1-2033		10,000,000		10,278,900		0.38
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		15,000,000		15,427,050		0.58
Other securities									39,446,522		1.47
									65,152,472		2.43
Oklahoma: 1.88%
Other securities									50,286,783		1.88
Oregon: 0.05%
Other securities									1,312,992		0.05

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

Summary portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Pennsylvania: 8.19%
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue) ±		1.93	%		11-1-2039	$	10,000,000	$	10,079,100		0.38	%
Pennsylvania Public School Building Authority Series A (Miscellaneous Revenue, AGM Insured) %%		5.00			12-1-2030		8,300,000		10,243,694		0.38
Pennsylvania Turnpike Commission Sub Series B (Transportation Revenue)		5.00			6-1-2029		10,000,000		12,276,200		0.46
Other securities									186,708,743		6.97
									219,307,737		8.19
Puerto Rico: 0.05%
Other securities									1,350,135		0.05
Rhode Island: 0.18%
Other securities									4,722,369		0.18
South Carolina: 1.36%
South Carolina Public Service Authority Series A (Utilities Revenue)		5.00			12-1-2037		12,215,000		15,015,380		0.56
Other securities									21,333,832		0.80
									36,349,212		1.36
South Dakota: 0.04%
Other securities									1,035,083		0.04
Tennessee: 0.34%
Other securities									9,063,211		0.34
Texas: 9.69%
Cypress-Fairbanks TX Independent School District Series B-2 (GO Revenue) ±		3.00			2-15-2040		11,010,000		11,493,779		0.43
Harris County TX Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		8,445,000		10,763,068		0.40
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series B (Resource Recovery Revenue) ø		0.54			12-1-2039		15,000,000		15,000,000		0.56
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.54			12-1-2039		14,600,000		14,600,000		0.55
Other securities									207,577,704		7.75
									259,434,551		9.69
Utah: 0.17%
Other securities									4,422,423		0.17
Virgin Islands: 0.29%
Other securities									7,889,696		0.29
Virginia: 1.63%
Virginia College Building Authority Educational Facilities Series A (Education Revenue) %%		3.00			9-1-2025		13,630,000		15,303,219		0.57

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

14 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value			Percent of net assets
Virginia (continued)
Virginia Public School Authority Special Obligation Financing & Refunding Bond (Miscellaneous Revenue)		5.00	%		8-1-2026	$	10,000,000	$	13,332,800			0.50	%
Other securities									15,073,487			0.56
									43,709,506			1.63
Washington: 2.85%
Washington Various Purpose Refunding Bond Series B (GO Revenue)		5.00			7-1-2025		8,000,000		10,338,160			0.39
Other securities									66,061,016			2.46
									76,399,176			2.85
West Virginia: 0.28%
Other securities									7,384,543			0.28
Wisconsin: 0.68%
Other securities									18,199,742			0.68
Total Municipal Obligations (Cost $2,552,799,827)									2,704,777,725			101.06
	Yield					Shares
Short-Term Investments: 0.76%
Investment Companies: 0.74%
Wells Fargo National Tax-Free Money Market Fund Premier Class ##(l)(u)		0.27					19,871,388		19,871,388			0.74
						Principal
U.S. Treasury Securities: 0.02%
Treasury Bill (z)#		0.22			9-15-2016	$	500,000		499,772			0.02
Total Short-Term Investments (Cost $20,371,151)									20,371,160			0.76
Total investments in securities (Cost $2,573,170,978) *									2,725,148,885			101.82
Other assets and liabilities, net									(48,712,056	)		(1.82	)
Total net assets								$	2,676,436,829			100.00	%

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

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

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

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

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

## 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 Fund as defined in the Investment Company Act of 1940.

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

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

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

* Cost for federal income tax purposes is $2,573,233,309 and unrealized gains (losses) consists of:

Gross unrealized gains	$	156,105,295
Gross unrealized losses		(4,189,719	)
Net unrealized gains	$	151,915,576

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

Statement of assets and liabilities—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 15

Assets
Investments
In unaffiliated securities, at value (cost $2,553,299,590)	$	2,705,277,497
In affiliated securities, at value (cost $19,871,388)		19,871,388
Total investments, at value (cost $2,573,170,978)		2,725,148,885
Cash		356,063
Receivable for investments sold		36,444,144
Receivable for Fund shares sold		2,866,166
Receivable for interest		25,559,133
Prepaid expenses and other assets		85,172
Total assets		2,790,459,563
Liabilities
Dividends payable		1,235,146
Payable for investments purchased		107,313,784
Payable for Fund shares redeemed		4,158,683
Payable for daily variation margin on open futures contracts		38,081
Management fee payable		643,226
Distribution fee payable		34,825
Administration fees payable		227,443
Accrued expenses and other liabilities		371,546
Total liabilities		114,022,734
Total net assets	$	2,676,436,829
NET ASSETS CONSIST OF
Paid-in capital	$	2,522,494,283
Overdistributed net investment income		(52,331	)
Accumulated net realized gains on investments		1,977,961
Net unrealized gains on investments		152,016,916
Total net assets	$	2,676,436,829
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	556,672,587
Shares outstanding – Class A1		46,816,676
Net asset value per share – Class A		$11.89
Maximum offering price per share – Class A2		$12.26
Net assets – Class C	$	56,600,877
Shares outstanding – Class C1		4,760,205
Net asset value per share – Class C		$11.89
Net assets – Administrator Class	$	802,527,153
Shares outstanding – Administrator Class1		67,451,075
Net asset value per share – Administrator Class		$11.90
Net assets – Institutional Class	$	1,260,636,212
Shares outstanding – Institutional Class1		105,881,870
Net asset value per share – Institutional Class		$11.91

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/97 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

16 Wells Fargo Intermediate Tax/AMT-Free Fund Statement of operations—June 30, 2016

Investment income
Interest	$	72,161,645
Income from affiliated securities		21,862
Total investment income		72,183,507
Expenses
Management fee		9,001,446
Administration fees
Class A		742,329
Class C		90,350
Administrator Class		764,986
Institutional Class		836,950
Investor Class		252,894	1
Shareholder servicing fees
Class A		1,159,225
Class C		141,171
Administrator Class		1,912,464
Investor Class		332,755	1
Distribution fee
Class C		423,513
Custody and accounting fees		136,302
Professional fees		53,725
Registration fees		162,943
Shareholder report expenses		119,938
Trustees’ fees and expenses		23,768
Other fees and expenses		24,302
Total expenses		16,179,061
Less: Fee waivers and/or expense reimbursements		(1,936,534	)
Net expenses		14,242,527
Net investment income		57,940,980
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		2,232,112
Net change in unrealized gains (losses) on:
Unaffiliated securities		86,223,661
Futures transactions		39,009
Net change in unrealized gains (losses) on investments		86,262,670
Net realized and unrealized gains (losses) on investments		88,494,782
Net increase in net assets resulting from operations	$	146,435,762

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

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

Statement of changes in net assets Wells Fargo Intermediate Tax/AMT-Free Fund 17

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	57,940,980					$	51,156,829
Net realized gains on investments					2,232,112						6,324,555
Net change in unrealized gains (losses) on investments					86,262,670						(20,839,190	)
Net increase in net assets resulting from operations					146,435,762						36,642,194
Distributions to shareholders from
Net investment income
Class A					(10,348,026	)					(4,728,054	)
Class C					(835,135	)					(830,216	)
Administrator Class					(17,804,373	)					(16,785,583	)
Institutional Class					(26,049,426	)					(19,241,370	)
Investor Class					(2,904,150	)1					(9,569,866	)
Total distributions to shareholders					(57,941,110	)					(51,155,089	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		39,565,308			458,186,456			5,045,158			58,687,151
Class C		603,319			7,044,101			960,317			11,184,212
Administrator Class		20,607,008			240,192,483			21,365,779			248,531,364
Institutional Class		52,291,609			610,662,188			43,496,123			505,863,626
Investor Class		1,416,573	1		16,288,070	1		7,046,199			81,897,022
					1,332,373,298						906,163,375
Reinvestment of distributions
Class A		848,840			9,927,258			382,977			4,450,514
Class C		63,902			745,237			62,813			729,984
Administrator Class		1,448,279			16,905,947			1,357,124			15,782,218
Institutional Class		1,258,565			14,714,093			929,789			10,821,859
Investor Class		195,909	1		2,256,316	1		808,378			9,391,930
					44,548,851						41,176,505
Payment for shares redeemed
Class A		(12,323,773	)		(144,035,345	)		(9,666,672	)		(111,817,381	)
Class C		(848,510	)		(9,891,073	)		(1,075,380	)		(12,489,765	)
Administrator Class		(21,996,551	)		(255,465,209	)		(13,275,704	)		(154,374,644	)
Institutional Class		(24,133,951	)		(281,891,835	)		(19,902,760	)		(231,743,877	)
Investor Class		(39,753,597	)1		(459,096,510	)1		(8,797,973	)		(102,040,606	)
					(1,150,379,972	)					(612,466,273	)
Net increase in net assets resulting from capital share transactions					226,542,177						334,873,607
Total increase in net assets					315,036,829						320,360,712
Net assets
Beginning of period					2,361,400,000						2,041,039,288
End of period				$	2,676,436,829					$	2,361,400,000
Overdistributed net investment income				$	(52,331	)				$	(52,201	)

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

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

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

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.47			$11.53			$11.31			$11.53			$10.94
Net investment income		0.26			0.25			0.30			0.28			0.35
Net realized and unrealized gains (losses) on investments		0.42			(0.06	)		0.29			(0.18	)		0.59
Total from investment operations		0.68			0.19			0.59			0.10			0.94
Distributions to shareholders from
Net investment income		(0.26	)		(0.25	)		(0.30	)		(0.28	)		(0.35	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.26	)		(0.25	)		(0.37	)		(0.32	)		(0.35	)
Net asset value, end of period		$11.89			$11.47			$11.53			$11.31			$11.53
Total return2		5.99	%		1.68	%		5.37	%		0.82	%		8.71	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.80	%		0.81	%		0.80	%		0.81	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		2.23	%		2.19	%		2.66	%		2.36	%		3.07	%
Supplemental data
Portfolio turnover rate		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$556,673			$214,880			$264,796			$289,931			$307,991

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

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

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

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.47			$11.53			$11.31			$11.53			$10.94
Net investment income		0.17			0.17			0.22			0.19			0.27
Net realized and unrealized gains (losses) on investments		0.42			(0.06	)		0.29			(0.18	)		0.59
Total from investment operations		0.59			0.11			0.51			0.01			0.86
Distributions to shareholders from
Net investment income		(0.17	)		(0.17	)		(0.22	)		(0.19	)		(0.27	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.17	)		(0.17	)		(0.29	)		(0.23	)		(0.27	)
Net asset value, end of period		$11.89			$11.47			$11.53			$11.31			$11.53
Total return2		5.20	%		0.92	%		4.59	%		0.07	%		7.90	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.55	%		1.56	%		1.55	%		1.56	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		1.48	%		1.44	%		1.92	%		1.61	%		2.32	%
Supplemental data
Portfolio turnover rate		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$56,601			$56,703			$57,580			$72,106			$67,598

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

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

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

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.48			$11.54			$11.32			$11.54			$10.95
Net investment income		0.27			0.27			0.31			0.29			0.36
Net realized and unrealized gains (losses) on investments		0.42			(0.06	)		0.29			(0.18	)		0.59
Total from investment operations		0.69			0.21			0.60			0.11			0.95
Distributions to shareholders from
Net investment income		(0.27	)		(0.27	)		(0.31	)		(0.29	)		(0.36	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.27	)		(0.27	)		(0.38	)		(0.33	)		(0.36	)
Net asset value, end of period		$11.90			$11.48			$11.54			$11.32			$11.54
Total return		6.09	%		1.78	%		5.47	%		0.92	%		8.81	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.74	%		0.75	%		0.74	%		0.75	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		2.33	%		2.29	%		2.76	%		2.46	%		3.18	%
Supplemental data
Portfolio turnover rate		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$802,527			$773,770			$668,517			$621,627			$494,528

¹  Amount is less than $0.005.

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

Financial highlights Wells Fargo Intermediate Tax/AMT-Free Fund 21

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.49			$11.55			$11.32			$11.54			$10.96
Net investment income		0.29			0.29			0.33			0.31			0.38
Net realized and unrealized gains (losses) on investments		0.42			(0.06	)		0.30			(0.18	)		0.58
Total from investment operations		0.71			0.23			0.63			0.13			0.96
Distributions to shareholders from
Net investment income		(0.29	)		(0.29	)		(0.33	)		(0.31	)		(0.38	)
Net realized gains		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.29	)		(0.29	)		(0.40	)		(0.35	)		(0.38	)
Net asset value, end of period		$11.91			$11.49			$11.55			$11.32			$11.54
Total return		6.26	%		1.97	%		5.75	%		1.10	%		8.91	%
Ratios to average net assets (annualized)
Gross expenses		0.47	%		0.47	%		0.48	%		0.48	%		0.49	%
Net expenses		0.44	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		2.49	%		2.47	%		2.94	%		2.65	%		3.32	%
Supplemental data
Portfolio turnover rate		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$1,260,636			$878,585			$599,686			$461,403			$326,772

¹  Amount is less than $0.005.

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

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

1. ORGANIZATION

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

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

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

Futures contracts

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

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Security transactions and income recognition

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

24 Wells Fargo Intermediate Tax/AMT-Free Fund Notes to financial statements

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Municipal obligations	$	0	$	2,704,777,725	$	0	$	2,704,777,725
Short-term investments
Investment companies		19,871,388		0		0		19,871,388
U.S. Treasury securities		499,772		0		0		499,772
Total assets	$	20,371,160	$	2,704,777,725	$	0	$	2,725,148,885
Liabilities
Futures contracts	$	38,081	$	0	$	0	$	38,081
Total Liabilities	$	38,081	$	0	$	0	$	38,081

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1. The Fund had no material transfers between Level 2 and Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.37% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08
Investor Class		0.19

Notes to financial statements Wells Fargo Intermediate Tax/AMT-Free Fund 25

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.70% for Class A shares, 1.45% for Class C shares, 0.60% for Administrator Class shares, and 0.45% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prior to November 1, 2015, the Fund’s expenses were capped at 0.42% for Institutional Class shares.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions Class C shares. For the year ended June 30, 2016, Funds Distributor received $15,906 from the sale of Class A shares and $500 in contingent deferred sales charges from redemptions of Class C share.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Administrator Class, and Investor Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $787,876,437 and $293,412,851, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the Fund.

At June 30, 2016, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at June 30, 2016		Unrealized gains
9-30-2016	JPMorgan	625 Short	5-Year U.S. Treasury Notes	$	76,352,539	$	39,009

The Fund had an average notional amount of $734,722 in short futures contracts during the year ended June 30, 2016.

On June 30, 2016, the cumulative unrealized gains on futures contracts in the amount of $39,009 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while

26 Wells Fargo Intermediate Tax/AMT-Free Fund Notes to financial statements

collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral pledged1			Net amount of liabilities
Futures – variation margin	JPMorgan	$38,081	$	0	$	(38,081	)	$	0

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Tax-exempt income	$	57,941,110	$	51,155,089

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Undistributed long-term gain	Unrealized gains
$1,257,535	$2,015,768	$151,915,576

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Intermediate Tax/AMT-Free Fund 27

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the summary portfolio of investments, of the Wells Fargo Intermediate Tax/AMT-Free Fund (formerly known as Wells Fargo Advantage Intermediate Tax/AMT-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Intermediate Tax/AMT-Free Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 29

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

Other information (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 31

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Intermediate Tax/AMT-Free Fund (the “Fund”):(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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

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

The Board noted that the performance of the Fund (Administrator Class) was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than or in range of its benchmark, the Barclays Municipal Bond 1-15 Year Blend Index, for all periods under review except the one-year period.

The Board also received and considered information regarding the 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 in comparison to the median ratios of funds in class-specific 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 the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Other information (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 33

Economies of scale

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

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

Other Benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

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

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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 Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244404 08-16 A251/AR251 6-16

Annual Report

June 30, 2016

Wells Fargo Minnesota Tax-Free Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	21
Report of independent registered public accounting firm	25
Other information	26
List of abbreviations	32

The views expressed and any forward-looking statements are as of June 30, 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 Minnesota Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Minnesota Tax-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Bruce R. Johns

Average annual total returns (%) as of June 30, 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
Class A (NMTFX)	1-2-1988		0.98		3.51		3.89		5.74		4.46		4.37		0.89		0.85
Class C (WMTCX)	4-8-2005		3.95		3.68		3.60		4.95		3.68		3.60		1.64		1.60
Administrator Class (NWMIX)	8-2-1993		–		–		–		6.10		4.72		4.64		0.83		0.60
Barclays Municipal Bond Index3	–		–		–		–		7.65		5.33		5.13		–		–
Barclays Minnesota Municipal Bond Index4	–		–		–		–		6.35		4.54		4.89		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to Minnesota municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁵

¹  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.

²  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 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. Without this cap, the Fund’s returns would have been lower.

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

⁴  The Barclays Minnesota Municipal Bond Index is the Minnesota component of the Barclays Municipal Bond Index. 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 Barclays Municipal Bond Index and the Barclays Minnesota Municipal 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%.

⁶  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁷  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed both its benchmarks, the Barclays Municipal Bond Index and the Barclays Minnesota Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n While we opportunistically extended the Fund’s duration when opportunities presented themselves, the Fund remained short duration and underweight the long end of the curve during the entire reporting period. This detracted from performance as rates moved lower and the curve flattened.

n The Fund was overweight lower-rated investment-grade bonds (A-rated and BBB-rated), which outperformed higher-rated credit tiers (AAA-rated and AA-rated) and contributed to performance.

n Sector allocation contributed to performance because we were overweight outperforming revenue bonds and underweight general obligation (GO) and prerefunded bonds.

Ultralow yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential backup in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%.

Effective maturity distribution as of June 30, 2016⁶

Credit quality as of June 30, 2016⁷

With the Fed likely on hold for an extended period, we initially purchased some longer-dated, national municipal securities to extend the Fund’s duration but later allowed duration to shorten as the market rallied and U.S. inflation measures started to move higher. Our below-benchmark duration exposure hurt relative performance during the period as U.S. interest rates continued to move lower in sympathy with declining global interest rates.

Credit-quality allocation helped results.

The Fund’s overweight to A-rated and BBB-rated debt and its holdings in high-yield and nonrated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin during the period. Its exposure to lower-quality Minnesota health care issuers and a local charter school were some of our best-performing issues. Other issues that performed well included longer-dated, double-exempt Minnesota municipal securities and several national issues we purchased, such as city of Chicago GO bonds and Chicago Board of Education bonds. While the national municipal debt did not generate state-exempt income, it produced some of the Fund’s highest total returns. We sold some of these national names as we found opportunities to reinvest in double-exempt issues, such as the University of St. Thomas in St. Paul, Minnesota.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Minnesota Tax-Free Fund 7

Minnesota’s financial position was supported by its strong economy, stable debt and pension liabilities, and recent tax reform. The state’s economy is characterized by low unemployment, diversity in the employer base, and above-average income levels. Economic expansion and the implementation of a new tax bracket for the highest earners resulted in increased income-tax collections and allowed the state to operate with a balanced budget. The improved revenue collections have also allowed the state to build reserves and pay down deferred liabilities to local governments. The paydown of deferred liabilities has directly improved the liquidity position of school districts throughout the state. Looking ahead, low commodity prices and a strong dollar are expected to pressure Minnesota’s mining and manufacturing sectors, potentially dampening the state’s economy expansion. The municipal market within Minnesota is dominated by the state GOs and the health care sector. Health care debt has performed well because of the state’s election to participate in Medicaid expansion as well as the additional income the sector offered. At the end of the reporting period, the state of Minnesota credit ratings were Aa1/AA+/AA+ by Moody’s Investors Service, Incorporated; Standard & Poor’s; and Fitch, respectively. Citing a reduction in deferred liabilities and improved structural balance, Standard & Poor’s assigned a positive outlook to the state’s rating in mid-to-late 2015.

With the economy continuing to improve and the Fed wanting to normalize monetary policy but concerned with overall global growth and interest rates, we are monitoring macroeconomic trends and municipal-specific events for tactical opportunities. We expect the process of interest-rate increases will be slower than past cycles. If economic growth continues to accelerate and global markets remain constant, we expect the Fed could raise its target rate in early 2017. As a result, we anticipate having a more neutral duration compared with the Barclays Minnesota Municipal Bond Index and being overweight medium- and lower-quality bonds.

Please see footnotes on page 5.

8 Wells Fargo Minnesota Tax-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,033.14	$	4.30		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.64	$	4.27		0.85	%
Class C
Actual	$	1,000.00	$	1,029.30	$	8.07		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.91	$	8.02		1.60	%
Administrator Class
Actual	$	1,000.00	$	1,034.42	$	3.03		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%

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

Portfolio of investments—June 30, 2016 Wells Fargo Minnesota Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 99.10%
Guam: 1.26%
Guam Government Business Privilege Series D (Tax Revenue)		5.00	%		11-15-2022	$	500,000	$	594,335
Guam Government Waterworks Authority Water & Wastewater System Project Series 2013 (Water & Sewer Revenue)		5.25			7-1-2022		865,000		1,033,277
Guam International Airport Authority Series 2013A (Airport Revenue)		5.00			10-1-2017		200,000		210,836
Guam International Airport Authority Series 2013A (Airport Revenue)		5.00			10-1-2018		100,000		108,946
Guam International Airport Authority Series 2013B (Airport Revenue)		5.00			10-1-2017		300,000		316,584
									2,263,978
Illinois: 0.54%
Chicago IL Board of Education Refunding Bond Series A (GO Revenue)		4.39			3-1-2032		1,000,000		980,410
Minnesota: 96.25%
Anoka County MN Capital Improvement Series A (GO Revenue)		5.00			2-1-2024		500,000		532,670
Anoka County MN Charter School Series A (Education Revenue)		3.40			6-1-2019		225,000		230,344
Anoka County MN Charter School Series A (Education Revenue)		3.65			6-1-2020		185,000		191,421
Anoka County MN Charter School Series A (Education Revenue)		3.75			6-1-2021		245,000		254,822
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2027		510,000		558,511
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2032		300,000		326,661
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2043		1,100,000		1,188,264
Anoka Hennepin MN Independent School District #11 Certificates of Participation Series 2014A (Miscellaneous Revenue)		5.00			2-1-2034		1,000,000		1,201,590
Austin MN Housing & RDA Courtyard Residence Project Series A (Housing Revenue)		5.00			1-1-2031		1,500,000		1,600,980
Baytown Township MN St. Croix Preparatory Academy Series A (Education Revenue)		7.00			8-1-2038		2,150,000		2,198,031
Brooklyn Park MN Charter School Athlos Leadership Academy Project Series 2015A (Education Revenue)		4.00			7-1-2020		245,000		248,714
Brooklyn Park MN Charter School Athlos Leadership Academy Project Series 2015A (Education Revenue)		5.50			7-1-2040		750,000		778,020
Brooklyn Park MN Charter School Prairie Seeds Academy Project Series 2015A (Miscellaneous Revenue)		5.00			3-1-2034		1,500,000		1,627,200
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2011 (Miscellaneous Revenue)		5.00			11-1-2041		1,400,000		1,516,452
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2026		750,000		929,955
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2027		500,000		615,420
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2029		300,000		367,491
Central Minnesota Municipal Power Agency Brookings Southeast Twin Cities Transmission Project Series 2012 (Utilities Revenue)		5.00			1-1-2042		1,500,000		1,728,315
Cologne MN Charter School Cologne Academy Project Series 2014A (Education Revenue)		5.00			7-1-2029		590,000		661,803
Cologne MN Charter School Cologne Academy Project Series 2014A (Education Revenue)		5.00			7-1-2034		500,000		551,585
Columbus MN Charter School New Millennium Academy Project Series 2015A (Education Revenue)		5.50			7-1-2030		1,000,000		1,047,700
Dakota County MN Community Development Agency SFMR (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.30			12-1-2039		51,600		53,385
Deephaven MN Charter School Eagle Ridge Academy Project Series 2015-A (Education Revenue)		5.25			7-1-2037		500,000		542,925

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

10 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Deephaven MN Charter School Eagle Ridge Academy Project Series 2015A (Education Revenue)		5.25	%		7-1-2040	$	500,000	$	543,710
Duluth MN Duluth Entertainment Convention Center Series A (GO Revenue)		5.00			2-1-2034		1,000,000		1,069,540
Duluth MN Housing & RDA Public School Academy Series 2010A (Education Revenue)		5.60			11-1-2030		2,000,000		2,134,880
Forest Lakes MN Charter School Lakes International Language Academy Project Series 2014A (Education Revenue)		5.50			8-1-2036		500,000		549,425
Glencoe MN HCFR Glencoe Regional Health Services Project Series 2013 (Health Revenue)		4.00			4-1-2022		735,000		813,233
Goodhue County MN Education District #6051 Red Wing Certificates of Participation Series 2014A (Miscellaneous Revenue)		5.00			2-1-2029		750,000		899,835
Ham Lake MN Charter School Lease Revenue Bonds DaVinci Academy Project Series 2012A (Education Revenue)		4.00			7-1-2028		370,000		373,652
Ham Lake MN Charter School Lease Revenue Bonds DaVinci Academy Project Series 2016A (Education Revenue)		5.00			7-1-2031		625,000		676,644
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		500,000		503,275
Hugo MN Charter School Lease Revenue Bonds Noble Academy Project Series 2014A (Education Revenue)		5.00			7-1-2029		600,000		638,628
Hutchinson MN Public Utility Revenue Refunding Bonds Series 2012A (Utilities Revenue)		5.00			12-1-2026		700,000		846,853
Maple Grove MN HCFR North Memorial Health Care Series 2015 (Health Revenue)		5.00			9-1-2023		655,000		802,775
Maple Grove MN Maple Grove Hospital Corporation (Health Revenue)		5.25			5-1-2024		1,735,000		1,797,408
Meeker County MN Memorial Hospital Project Series 2007 (Health Revenue)		5.63			11-1-2022		800,000		834,232
Minneapolis & St. Paul MN Housing & RDA Children’s Health Care Facilities Series A (Health Revenue)		5.25			8-15-2025		1,000,000		1,157,110
Minneapolis & St. Paul MN Housing & RDA Children’s Health Care Facilities Series A (Health Revenue)		5.25			8-15-2035		1,000,000		1,157,260
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.59			11-15-2017		1,620,000		1,603,800
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series 2014A (Airport Revenue)		5.00			1-1-2029		500,000		613,395
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series 2014B (Airport Revenue)		5.00			1-1-2026		500,000		612,610
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series B (Airport Revenue, National Insured)		5.00			1-1-2018		1,000,000		1,022,620
Minneapolis MN Charter School Yinghua Academy Project Series 2013A (Education Revenue)		5.00			7-1-2023		300,000		323,865
Minneapolis MN Development Limited Tax Supported Common Bond Series 2A (Miscellaneous Revenue)		5.00			6-1-2028		1,115,000		1,140,277
Minneapolis MN Development Limited Tax Supported Common Bond Series 2A (Miscellaneous Revenue)		6.00			12-1-2040		1,000,000		1,189,390
Minneapolis MN Fairview Health Services Series A (Health Revenue, AGM Insured)		6.63			11-15-2028		1,000,000		1,139,240
Minneapolis MN Health Care System Fairview Health Services Series 2015A (Health Revenue)		5.00			11-15-2033		2,000,000		2,436,040
Minneapolis MN Health Care System Revenue Prerefunded (Health Revenue, AGC Insured)		6.50			11-15-2038		345,000		392,024
Minneapolis MN Health Care System Revenue Unrefunded (Health Revenue, AGC Insured)		6.50			11-15-2038		1,890,000		2,121,752
Minneapolis MN Plymouth Stevens House Project Series A (Housing Revenue)		1.00			12-1-2017		1,000,000		1,000,560
Minneapolis MN Seward Towers Apartments Project Series A (Housing Revenue)		1.10			1-1-2018		2,000,000		2,003,380

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

Portfolio of investments—June 30, 2016 Wells Fargo Minnesota Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Minneapolis MN Student Housing Riverton Community Housing Project Series 2014 (Housing Revenue)		5.00	%		8-1-2032	$	860,000	$	913,389
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series C1 (Health Revenue, AGC Insured)		4.00			2-15-2020		50,000		55,101
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series C1 (Health Revenue, AGC Insured)		5.00			2-15-2030		2,000,000		2,246,800
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series E (Health Revenue, AGC Insured)		5.00			2-15-2037		4,030,000		4,244,839
Minnesota Certificates of Participation Legislative Office Facility Project Series 2014 (Miscellaneous Revenue)		5.00			6-1-2023		435,000		538,012
Minnesota General Fund Revenue Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2027		2,000,000		2,393,700
Minnesota General Fund Revenue Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2028		2,000,000		2,417,340
Minnesota General Fund Revenue Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2029		2,000,000		2,411,260
Minnesota General Fund Revenue Appropriation Bonds Series 2014A (Miscellaneous Revenue)		5.00			6-1-2033		1,000,000		1,220,390
Minnesota HEFAR Bethel University Series 6R (Education Revenue)		5.50			5-1-2025		1,535,000		1,566,514
Minnesota HEFAR Carleton College Series 7D (Education Revenue)		5.00			3-1-2030		2,000,000		2,207,960
Minnesota HEFAR College of St. Scholastica Incorporated Series 7R (Education Revenue)		4.25			12-1-2027		400,000		434,732
Minnesota HEFAR Hamline University Series 7E (Education Revenue)		4.50			10-1-2021		300,000		329,457
Minnesota HEFAR Hamline University Series 7E (Education Revenue)		5.00			10-1-2029		500,000		546,945
Minnesota HEFAR St. Benedict College Series 7M (Education Revenue)		5.13			3-1-2036		275,000		303,661
Minnesota HEFAR St. Benedict College Series 7V (Education Revenue)		5.00			3-1-2018		635,000		674,103
Minnesota HEFAR St. Olaf College Series 7F (Education Revenue)		4.50			10-1-2030		500,000		548,355
Minnesota HEFAR St. Thomas University Series 6W (Education Revenue)		5.00			10-1-2018		1,100,000		1,112,518
Minnesota HEFAR St. Thomas University Series 6W (Education Revenue)		6.00			10-1-2025		1,030,000		1,044,327
Minnesota HEFAR St. Thomas University Series 6W (Education Revenue)		6.00			10-1-2030		1,000,000		1,013,910
Minnesota HEFAR St. Thomas University Series 6X (Education Revenue)		5.00			4-1-2029		1,000,000		1,033,030
Minnesota HEFAR St. Thomas University Series 7U (Education Revenue)		5.00			4-1-2023		750,000		920,138
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2024		750,000		933,360
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2028		920,000		1,163,653
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2029		750,000		943,155
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2035		750,000		917,903
Minnesota Housing Finance Agency Residential Housing Series 2007Q (Housing Revenue)		5.25			7-1-2033		685,000		699,570
Minnesota Housing Finance Agency Residential Housing Series 2009E (Housing Revenue)		4.20			7-1-2021		1,035,000		1,080,706
Minnesota Housing Finance Agency Residential Housing Series 2012D (Housing Revenue, GNMA/FNMA/FHLMC Insured)		4.00			7-1-2040		725,000		755,994
Minnesota Housing Finance Agency Series 2009B (Housing Revenue)		5.90			7-1-2028		65,000		67,233
Minnesota Housing Finance Agency Series 2015A (Housing Revenue)		5.00			8-1-2027		1,665,000		2,087,977
Minnesota Municipal Power Agency Series 2007 (Utilities Revenue)		5.00			10-1-2037		1,200,000		1,258,548
Minnesota Municipal Power Agency Series 2010A & Series 2010B (Utilities Revenue)		5.00			10-1-2025		2,335,000		2,663,698
Minnesota Prerefunded Bond (GO Revenue)		5.00			8-1-2022		100,000		104,801
Minnesota Refunded Bond (GO Revenue)		5.00			8-1-2022		2,400,000		2,515,224
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00			2-1-2022		175,000		208,976
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00			2-1-2023		185,000		226,270
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00			2-1-2024		195,000		237,247

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

12 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00	%		2-1-2025	$	205,000	$	251,937
Mounds View MN Independent School District #621 Series A (GO Revenue, South Dakota Credit Program Insured)		4.00			2-1-2022		530,000		577,324
Northeastern Minnesota Metropolitan Intermediate School District #916 Certificates of Participation Series 2013A (Miscellaneous Revenue)		4.00			2-1-2024		1,100,000		1,251,415
Northeastern Minnesota Metropolitan Intermediate School District #916 Certificates of Participation Series 2015B (Miscellaneous Revenue)		5.00			2-1-2034		1,000,000		1,206,670
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured) ##		5.00			1-1-2017		1,000,000		1,021,950
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2018		820,000		871,726
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2021		50,000		53,022
Northern Minnesota Municipal Power Agency Series 2013A (Utilities Revenue)		4.00			1-1-2028		450,000		505,499
Northern Minnesota Municipal Power Agency Series 2016 (Utilities Revenue)		5.00			1-1-2030		520,000		652,865
Northern Minnesota Municipal Power Agency Series 2016 (Utilities Revenue)		5.00			1-1-2031		350,000		437,367
Otsego MN Charter School Kaleidoscope Charter School Project Series 2014A (Education Revenue)		4.15			9-1-2024		600,000		635,358
Otsego MN Charter School Kaleidoscope Charter School Project Series 2014A (Education Revenue)		5.00			9-1-2034		1,100,000		1,180,718
Plymouth MN Certificate of Participation Intermediate School District #287 Series A (Miscellaneous Revenue)		5.00			2-1-2024		250,000		278,680
Red Wing MN Senior Housing Deer Crest Project Series A (Health Revenue)		5.00			11-1-2032		660,000		710,404
Red Wing MN Senior Housing Deer Crest Project Series A (Health Revenue)		5.00			11-1-2042		560,000		598,080
Rice County MN Educational Facilities Shattuck-St. Mary’s School Project (Education Revenue) 144A		5.00			8-1-2022		990,000		1,074,130
Rochester MN Electric Utility Revenue Series 2007C (Utilities Revenue)		5.00			12-1-2030		1,000,000		1,018,279
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2023		815,000		1,024,822
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2025		315,000		394,752
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2026		250,000		313,278
Sartell MN Independent School District 748 St. Stephen Public Schools GO Series 2016A (GO Revenue, South Dakota Credit Program Insured) %%		5.00			2-1-2027		1,250,000		1,570,038
Shakopee MN St. Francis Regional Medical Center Series 2014 (Health Revenue)		5.00			9-1-2027		700,000		859,110
Shakopee MN St. Francis Regional Medical Center Series 2014 (Health Revenue)		5.00			9-1-2029		725,000		881,455
South St. Paul MN Housing & RDA Airport Project Series 2007 (Industrial Development Revenue, AGC Insured)		4.70			9-1-2019		300,000		302,121
South St. Paul MN Housing & RDA Airport Project Series 2007 (Industrial Development Revenue, AGC Insured)		5.13			9-1-2029		500,000		504,055
Southern Minnesota Municipal Power Agency Series 1994A (Utilities Revenue, National Insured) ¤		0.00			1-1-2020		5,100,000		4,846,632
Southern Minnesota Municipal Power Agency Series 2009A (Utilities Revenue)		5.25			1-1-2030		2,000,000		2,223,260
St. Cloud MN Charter School Lease Revenue Bonds Stride Academy Project Series 2016A (Miscellaneous Revenue)		5.00			4-1-2036		750,000		783,510
St. Cloud MN Health Care Prerefunded Revenue Bonds CentraCare Health (Health Revenue)		5.13			5-1-2030		1,890,000		2,193,515
St. Cloud MN Health Care Revenue Bonds Series 2016A (Health Revenue)		5.00			5-1-2030		2,000,000		2,512,960
St. Cloud MN Health Care Revenue Bonds Series 2016A (Health Revenue)		5.00			5-1-2031		2,000,000		2,504,880
St. Cloud MN Health Care Unrefunded Revenue Bonds CentraCare Health (Health Revenue)		5.13			5-1-2030		125,000		142,480
St. Louis Park MN Nicollett Health Services Series 2009 (Health Revenue)		5.50			7-1-2029		1,000,000		1,140,780
St. Paul MN Housing & RDA Allina Health Systems Series A1 (Health Revenue)		5.00			11-15-2024		2,350,000		2,658,555

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

Portfolio of investments—June 30, 2016 Wells Fargo Minnesota Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
St. Paul MN Housing & RDA Charter School Lease Revenue German Immersion School Project Series 2013A (Education Revenue)		4.00	%		7-1-2023	$	250,000	$	257,548
St. Paul MN Housing & RDA Charter School Lease Revenue Twin Cities Academy Project Series 2015A (Education Revenue)		5.00			7-1-2035		925,000		975,033
St. Paul MN Housing & RDA Charter School Nova Classical Academy Project Series 2011A (Miscellaneous Revenue)		6.63			9-1-2042		865,000		1,005,071
St. Paul MN Housing & RDA Health Care Facilities Revenue Refunding Bonds Series 2015A (Health Revenue)		5.00			7-1-2025		250,000		316,100
St. Paul MN Housing & RDA HealthEast Care Systems Project Series 2015A (Health Revenue)		4.00			11-15-2017		550,000		570,994
St. Paul MN Housing & RDA HealthEast Care Systems Project Series 2015A (Health Revenue)		5.00			11-15-2027		1,000,000		1,225,210
St. Paul MN Housing & RDA HealthPartners Obligated Group Series 2015A (Health Revenue)		5.00			7-1-2031		2,010,000		2,467,376
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		5.75			9-1-2026		650,000		651,898
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		6.00			9-1-2036		500,000		501,530
St. Paul MN Housing & RDA Hope Community Academy Project Series 2015A (Education Revenue)		5.00			12-1-2034		1,645,000		1,781,124
St. Paul MN Housing & RDA Parking Facilities Project Series A (Transportation Revenue)		5.00			8-1-2035		875,000		962,106
St. Paul MN Housing & RDA St. Paul Academy & Summit School Project (Education Revenue)		5.00			10-1-2024		2,000,000		2,096,740
St. Paul MN Housing & RDA St. Paul Conservatory for Performing Artists Series A (Education Revenue)		4.00			3-1-2028		150,000		154,602
St. Paul MN Housing RDA Healtheast Care System Project Series 2015A (Health Revenue)		5.00			11-15-2025		1,000,000		1,137,590
St. Paul MN Port Authority Lease Revenue Freeman Office Building Series 2 (Miscellaneous Revenue)		5.00			12-1-2024		2,000,000		2,480,080
Todd Morrison Cass & Wadena Counties MN United Hospital District Lakewood Health System Series 2004 (GO Revenue)		5.13			12-1-2024		1,000,000		1,003,560
University of Minnesota Series 2009A (Education Revenue)		5.00			4-1-2021		1,180,000		1,311,830
University of Minnesota Series 2009A (Education Revenue)		5.13			4-1-2034		1,000,000		1,116,790
University of Minnesota Series 2016A (Education Revenue)		5.00			4-1-2032		2,470,000		3,179,137
University of Minnesota State Supported Biomedical Science Series 2011B (Education Revenue)		5.00			8-1-2036		1,000,000		1,170,810
University of Minnesota State Supported Stadium Debt Series 2006 (Education Revenue)		5.00			8-1-2025		5,000,000		5,019,650
Virginia MN Housing & RDA HCFR Series 2005 (Miscellaneous Revenue)		5.25			10-1-2025		2,085,000		2,090,484
Washington County MN Capital Improvement Plan Series A (GO Revenue)		5.00			2-1-2021		2,495,000		2,610,319
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2027		1,565,000		1,912,931
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2030		1,000,000		1,216,080
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2031		1,000,000		1,264,390
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2032		1,250,000		1,531,525
Willmar MN Rice Memorial Hospital Project Series 2012A (GO Revenue)		5.00			2-1-2026		1,000,000		1,169,790
Winona MN Health Care Facilities Refunding Bond Series 2012 (Health Revenue)		3.00			7-1-2018		295,000		302,815
Winona MN Health Care Facilities Refunding Bond Series 2012 (Health Revenue)		5.00			7-1-2034		500,000		552,740
Woodbury MN Charter School Series A (Education Revenue)		3.15			12-1-2018		190,000		194,951
Woodbury MN Charter School Series A (Education Revenue)		3.90			12-1-2022		220,000		235,215
Woodbury MN Charter School Series A (Education Revenue)		5.00			12-1-2027		215,000		234,470
Woodbury MN Charter School Series A (Education Revenue)		5.00			12-1-2032		220,000		238,971
									173,511,555

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

14 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico: 0.74%
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50	%		7-1-2016	$	1,305,000	$	1,305,131
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		250,000		28,750
									1,333,881
Virgin Islands: 0.31%
Virgin Islands PFA Matching Fund Loan Notes Senior Lien Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2025		500,000		563,845
Total Municipal Obligations (Cost $167,386,909)									178,653,669

Total investments in securities (Cost $167,386,909) *	99.10	%		178,653,669
Other assets and liabilities, net	0.90			1,626,461
Total net assets	100.00	%	$	180,280,130

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

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

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

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

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

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

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

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

* Cost for federal income tax purposes is $167,385,091 and unrealized gains (losses) consists of:

Gross unrealized gains	$	11,312,258
Gross unrealized losses		(43,680	)
Net unrealized gains	$	11,268,578

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

Statement of assets and liabilities—June 30, 2016 Wells Fargo Minnesota Tax-Free Fund 15

Assets
Investment in unaffiliated securities, at value (cost $167,386,909)	$	178,653,669
Cash		919,752
Receivable for investments sold		125,138
Receivable for Fund shares sold		186,242
Receivable for interest		2,343,699
Prepaid expenses and other assets		14,358
Total assets		182,242,858
Liabilities
Dividends payable		92,457
Payable for investments purchased		1,570,038
Payable for Fund shares redeemed		201,068
Management fee payable		24,470
Distribution fee payable		6,267
Administration fees payable		17,338
Accrued expenses and other liabilities		51,090
Total liabilities		1,962,728
Total net assets	$	180,280,130
NET ASSETS CONSIST OF
Paid-in capital	$	168,155,656
Undistributed net investment income		625,178
Accumulated net realized gains on investments		232,536
Net unrealized gains on investments		11,266,760
Total net assets	$	180,280,130
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	45,437,206
Shares outstanding – Class A1		4,104,238
Net asset value per share – Class A		$11.07
Maximum offering price per share – Class A2		$11.59
Net assets – Class C	$	10,358,189
Shares outstanding – Class C1		935,677
Net asset value per share – Class C		$11.07
Net assets – Administrator Class	$	124,484,735
Shares outstanding – Administrator Class1		11,248,030
Net asset value per share – Administrator Class		$11.07

¹  The Fund has an unlimited number of authorized shares.

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

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

16 Wells Fargo Minnesota Tax-Free Fund Statement of operations—year ended June 30, 2016

Investment income
Interest	$	6,554,660
Expenses
Management fee		682,871
Administration fees
Class A		71,822
Class C		15,949
Administrator Class		115,861
Shareholder servicing fees
Class A		112,221
Class C		24,920
Administrator Class		289,653
Distribution fee
Class C		74,761
Custody and accounting fees		9,793
Professional fees		46,669
Registration fees		38,961
Shareholder report expenses		13,769
Trustees’ fees and expenses		20,320
Other fees and expenses		9,827
Total expenses		1,527,397
Less: Fee waivers and/or expense reimbursements		(291,187	)
Net expenses		1,236,210
Net investment income		5,318,450
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		288,003
Net change in unrealized gains (losses) on investments		4,267,904
Net realized and unrealized gains (losses) on investments		4,555,907
Net increase in net assets resulting from operations	$	9,874,357

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

Statement of changes in net assets Wells Fargo Minnesota Tax-Free Fund 17

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	5,318,450					$	5,061,230
Net realized gains on investments					288,003						467,383
Net change in unrealized gains (losses) on investments					4,267,904						(1,118,830	)
Net increase in net assets resulting from operations					9,874,357						4,409,783
Distributions to shareholders from
Net investment income
Class A					(1,342,912	)					(1,363,496	)
Class B					N/A						(612	)1
Class C					(223,290	)					(215,214	)
Administrator Class					(3,752,248	)					(3,481,908	)
Net realized gains
Class A					(15,554	)					(138,361	)
Class C					(3,355	)					(28,745	)
Administrator Class					(39,659	)					(319,450	)
Total distributions to shareholders					(5,377,018	)					(5,547,786	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		361,762			3,948,616			469,808			5,128,940
Class C		96,385			1,052,616			184,666			2,013,042
Administrator Class		2,631,468			28,640,215			2,675,608			29,172,385
					33,641,447						36,314,367
Reinvestment of distributions
Class A		123,205			1,342,193			135,870			1,482,869
Class B		N/A			N/A			54	1		592	1
Class C		20,786			226,424			22,312			243,436
Administrator Class		241,208			2,627,645			233,860			2,551,103
					4,196,262						4,278,000
Payment for shares redeemed
Class A		(592,484	)		(6,450,893	)		(491,780	)		(5,365,514	)
Class B		N/A			N/A			(7,573	)1		(82,744	)1
Class C		(114,142	)		(1,239,380	)		(81,777	)		(890,891	)
Administrator Class		(1,961,032	)		(21,337,031	)		(1,644,985	)		(17,973,787	)
					(29,027,304	)					(24,312,936	)
Net increase in net assets resulting from capital share transactions					8,810,405						16,279,431
Total increase in net assets					13,307,744						15,141,428
Net assets
Beginning of period					166,972,386						151,830,958
End of period				$	180,280,130					$	166,972,386
Undistributed net investment income				$	625,178					$	573,849

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

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

18 Wells Fargo Minnesota Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.79			$10.86			$10.74			$11.08			$10.68
Net investment income		0.33			0.33			0.35			0.32			0.37
Net realized and unrealized gains (losses) on investments		0.28			(0.04	)		0.20			(0.31	)		0.55
Total from investment operations		0.61			0.29			0.55			0.01			0.92
Distributions to shareholders from
Net investment income		(0.33	)		(0.33	)		(0.35	)		(0.32	)		(0.37	)
Net realized gains		(0.00	)1		(0.03	)		(0.08	)		(0.03	)		(0.15	)
Total distributions to shareholders		(0.33	)		(0.36	)		(0.43	)		(0.35	)		(0.52	)
Net asset value, end of period		$11.07			$10.79			$10.86			$10.74			$11.08
Total return2		5.74	%		2.72	%		5.29	%		(0.01	)%		8.80	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.89	%		0.89	%		0.88	%		0.89	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		2.99	%		3.03	%		3.28	%		2.87	%		3.35	%
Supplemental data
Portfolio turnover rate		16	%3		20	%3		15	%3		14	%3		36	%
Net assets, end of period (000s omitted)		$45,437			$45,437			$44,499			$49,535			$52,550

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

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

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

Financial highlights Wells Fargo Minnesota Tax-Free Fund 19

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.79			$10.86			$10.74			$11.08			$10.68
Net investment income		0.24			0.25			0.27			0.24			0.28
Net realized and unrealized gains (losses) on investments		0.28			(0.04	)		0.20			(0.31	)		0.55
Total from investment operations		0.52			0.21			0.47			(0.07	)		0.83
Distributions to shareholders from
Net investment income		(0.24	)		(0.25	)		(0.27	)		(0.24	)		(0.28	)
Net realized gains		(0.00	)1		(0.03	)		(0.08	)		(0.03	)		(0.15	)
Total distributions to shareholders		(0.24	)		(0.28	)		(0.35	)		(0.27	)		(0.43	)
Net asset value, end of period		$11.07			$10.79			$10.86			$10.74			$11.08
Total return2		4.95	%		1.96	%		4.50	%		(0.76	)%		7.99	%
Ratios to average net assets (annualized)
Gross expenses		1.64	%		1.64	%		1.64	%		1.63	%		1.64	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.24	%		2.28	%		2.53	%		2.12	%		2.58	%
Supplemental data
Portfolio turnover rate		16	%3		20	%3		15	%3		14	%3		36	%
Net assets, end of period (000s omitted)		$10,358			$10,061			$8,768			$8,972			$9,144

¹ Amount is less than $0.005.

² Total return calculations do not include any sales charges.

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

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

20 Wells Fargo Minnesota Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.78			$10.86			$10.74			$11.07			$10.68
Net investment income		0.35			0.36			0.38			0.35			0.39
Net realized and unrealized gains (losses) on investments		0.29			(0.05	)		0.20			(0.30	)		0.54
Total from investment operations		0.64			0.31			0.58			0.05			0.93
Distributions to shareholders from
Net investment income		(0.35	)		(0.36	)		(0.38	)		(0.35	)		(0.39	)
Net realized gains		(0.00	)1		(0.03	)		(0.08	)		(0.03	)		(0.15	)
Total distributions to shareholders		(0.35	)		(0.39	)		(0.46	)		(0.38	)		(0.54	)
Net asset value, end of period		$11.07			$10.78			$10.86			$10.74			$11.07
Total return		6.10	%		2.88	%		5.55	%		0.32	%		8.97	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.83	%		0.83	%		0.82	%		0.83	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.24	%		3.28	%		3.53	%		3.11	%		3.59	%
Supplemental data
Portfolio turnover rate		16	%2		20	%2		15	%2		14	%2		36	%
Net assets, end of period (000s omitted)		$124,485			$111,475			$98,483			$98,992			$109,637

¹ Amount is less than $0.005.

²  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

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

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Security transactions and income recognition

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

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassification is due to market discount. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized gains on investments
$51,329	$(51,329)

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements Wells Fargo Minnesota Tax-Free Fund 23

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	178,653,669	$	0	$	178,653,669

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1. The Fund had no material transfers between Level 2 and Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class C		0.16	%
Administrator Class		0.10

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.85% for Class A shares, 1.60% for Class C shares, and 0.60 for Administrator Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

24 Wells Fargo Minnesota Tax-Free Fund Notes to financial statements

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $4,408 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $41,427,030 and $27,198,046, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Ordinary income	$	13,326	$	130,687
Tax-exempt income		5,318,450		5,061,230
Long-term capital gain		45,242		355,869

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Undistributed long-term gain	Unrealized gains
$717,631	$230,722	$11,268,578

8. CONCENTRATION RISK

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

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Minnesota Tax-Free Fund 25

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Minnesota Tax-Free Fund (formerly known as Wells Fargo Advantage Minnesota Tax-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Minnesota Tax-Free Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $45,242 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2016.

For the fiscal year ended June 30, 2016, $13,326 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at
233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Minnesota Tax-Free Fund 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

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

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Minnesota Tax-Free Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

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

The Board noted that the performance of the Fund (Administrator Class) was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was lower than its benchmark, the Barclays Municipal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were in range of or equal to the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or equal to the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

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

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

32 Wells Fargo Minnesota Tax-Free Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244405 08-16 A252/AR252 6-16

Annual Report

June 30, 2016

Wells Fargo
Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Summary portfolio of investments*	9
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	20
Notes to financial statements	25
Report of independent registered public accounting firm	31
Other information	32
List of abbreviations	38

* A complete schedule of portfolio holdings as of the report date may be obtained, free of charge, by accessing the following website: https://www.wellsfargofunds.com/assets/edocs/regulatory/holdings/municipal-bond-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 June 30, 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 Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Municipal Bond Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

on $911 million in payments due (most of which were GOs) on July 1, 2016. The state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

4 Wells Fargo Municipal Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Lyle J. Fitterer, CFA^®, CPA

Robert J. Miller

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (WMFAX)	4-8-2005		3.21		5.29		5.18		8.04		6.26		5.66		0.80		0.75
Class B (WMFBX)*	4-8-2005		2.13		5.14		5.11		7.13		5.47		5.11		1.55		1.50
Class C (WMFCX)	4-8-2005		6.14		5.47		4.87		7.14		5.47		4.87		1.55		1.50
Administrator Class (WMFDX)	4-8-2005		–		–		–		8.10		6.42		5.86		0.74		0.60
Institutional Class (WMBIX)	3-31-2008		–		–		–		8.35		6.56		5.92		0.47		0.47
Barclays Municipal Bond Index4	–		–		–		–		7.65		5.33		5.13		–		–

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

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to high-yield securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Municipal Bond Fund 5

Growth of $10,000 investment as of June 30, 2016⁵

¹  Historical performance shown for Institutional Class shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares. If these expenses had not been included, returns would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.75% for Class A, 1.50% for Class B, 1.50% for Class C, 0.60% for Administrator Class, and 0.48% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal 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%.

⁶  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

6 Wells Fargo Municipal Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund (Class A, excluding sales charges) outperformed its benchmark, the Barclays Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n Investors continued their search for income in this low-yield environment, which caused lower-quality bonds to perform very well. The Fund’s overweight to A-rated, BBB-rated, and out-of-benchmark below-investment-grade debt was the biggest contributor to excess returns.

n The Fund began the period with a duration that was longer than the benchmark. As rates rallied, we slowly reduced its duration and are now positioned for higher rates. We also began reducing the Fund’s bias for a flatter yield curve in the second quarter of 2016 given the amount of flattening that had already occurred.

n The Fund’s exposure to local general obligation (GO), education, special tax, and transportation issues did well, while corporate-backed and health care holdings didn’t perform as well. Our largest state overweight continues to be to Illinois, and it was one of the best-performing states.

Ultralow yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential backup in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. We, therefore, extended the Fund’s duration in anticipation of lower yields and also positioned the Fund for a flatter yield curve. The Fund’s yield-curve positioning, which was underweight maturities between 1 and 7 years and overweight the 10-year area, helped results. Longer-term maturities outperformed shorter-term maturities by a wide margin because the municipal curve flattened almost 150 basis points (bps; 100 bps equals 1.00%) between the 1- and 30-year maturities. The Fund also held variable-rate demand notes, which provided liquidity but weighed on results.

The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%, and we reduced duration as the market rallied. The Fund’s short duration hurt results in the second half of the reporting period because yields continued to decline.

Credit quality as of June 30, 2016⁶

Credit-quality allocation helped results.

The Fund’s overweight to A-rated and BBB-rated debt and its out-of-benchmark holdings in high-yield and nonrated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin during the period. The Fund’s holdings within the local GO, special tax, education, and transportation sectors performed well. On the other hand, issue selection within the health care and corporate-backed sectors detracted from results, largely because of their shorter duration profile. We have been cautious within the health care sector for quite some time because we believe credit fundamentals have peaked. Although taxable corporate bond spreads increased dramatically during late 2015 and early 2016 as global fears spooked the market, spreads for corporate-backed municipal debt declined. We sold into this rally, but continued new-money flows into high-yield and longer-term municipal bond funds caused these spreads to move even tighter.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Municipal Bond Fund 7

Political noise and a lack of a state budget caused volatility within Illinois, but the state’s bonds had some of the highest returns. We have been overweight Illinois bonds for several years because we feel that the above-market income is compensating investors for the credit issues. We continue to believe that the state’s economic backdrop and ability to raise revenues, combined with Illinois Governor Bruce Rauner’s focus on cutting expenses, should ultimately lead to tighter spreads. New Jersey bonds also performed well as spreads tightened; however, issue selection within the state detracted from results, primarily due to our exposure to longer-dated floating-rate notes that repriced to reflect a protracted rate-hike cycle. During the past 12 months, Puerto Rico had several widely anticipated defaults on its debt. The lack of clarity surrounding the federal government’s restructuring legislation for Puerto Rico debt, the lack of financial statements, and a declining economy make it very hard to develop an investment opinion for the territory. As a result, we continue to have minimal exposure to Puerto Rico bonds.

Effective maturity distribution as of June 30, 2016⁷

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. However, if the U.S. economy does weaken materially, this could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo Municipal Bond Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,040.86	$	3.81		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.13	$	3.77		0.75	%
Class B
Actual	$	1,000.00	$	1,035.99	$	7.59		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.40	$	7.52		1.50	%
Class C
Actual	$	1,000.00	$	1,036.02	$	7.59		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.40	$	7.52		1.50	%
Administrator Class
Actual	$	1,000.00	$	1,041.62	$	3.05		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,042.34	$	2.34		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.57	$	2.32		0.46	%

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

Summary portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 9

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

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Corporate Bonds and Notes: 0.50%
Consumer Discretionary: 0.50%
Diversified Consumer Services: 0.50%
Toll Road Investors Partnership II 144A¤		0.00	%		2-15-2028	$	30,780,000	$	14,660,083		0.50	%
Total Corporate Bonds and Notes (Cost $15,367,850)									14,660,083		0.50
Municipal Obligations: 98.14%
Alabama: 1.07%
Other securities									31,670,438		1.07
Alaska: 0.45%
Other securities									13,266,993		0.45
Arizona: 0.80%
Other securities									23,725,487		0.80
California: 10.30%
Bay Area CA Toll Authority Toll Bridge Revenue Series A (Transportation Revenue) ±		1.66			4-1-2036		28,000,000		27,660,920		0.94
California HFFA Children’s Hospital of Orange County Series C (Health Revenue, U.S. Bank NA LOC) ø		0.39			11-1-2038		14,900,000		14,900,000		0.51
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		6.13			11-1-2029		15,925,000		21,528,689		0.73
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.14			7-1-2027		27,660,000		25,234,495		0.86
Tender Option Bond Trust Receipts for Palomar CA Pomerado Health Series XG0017 (GO Revenue, Bank of America NA LIQ) 144Aø		0.69			8-1-2037		31,250,000		31,250,000		1.06
Other securities									183,072,138		6.20
									303,646,242		10.30
Colorado: 1.78%
Other securities									52,353,470		1.78
Connecticut: 0.44%
Other securities									13,052,687		0.44
Delaware: 0.86%
Other securities									25,260,703		0.86
District of Columbia: 0.59%
Other securities									17,330,331		0.59
Florida: 3.31%
Florida Development Finance Corporation Educational Facilities Revenue Renaissance Charter School Project Series A (Education Revenue)		8.50			6-15-2044		13,290,000		15,771,642		0.54

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

10 Wells Fargo Municipal Bond Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Florida (continued)
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		0.78	%		9-25-2024	$	15,000,000	$	15,000,000		0.51	%
Other securities									66,730,084		2.26
									97,501,726		3.31
Georgia: 0.76%
Other securities									22,350,005		0.76
Guam: 0.14%
Other securities									4,203,314		0.14
Hawaii: 0.11%
Other securities									3,203,091		0.11
Idaho: 0.63%
Other securities									18,432,311		0.63
Illinois: 19.21%
Chicago IL (Various Revenue) µ		0.00-5.56			1-1-2021 to 1-1-2038		74,125,000		71,426,015		2.42
Chicago IL Board of Education (GO Revenue) µ		0.00-5.25			12-1-2020 to 12-1-2031		57,930,000		38,647,209		1.31
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2028		24,270,000		14,819,505		0.50
Chicago IL O’Hare International Airport (Airport Revenue) µ		5.00-5.75			1-1-2025 to 1-1-2044		30,290,000		35,956,716		1.22
Chicago IL Series A (GO Revenue)		5.50			1-1-2033		12,730,000		13,060,089		0.44
Cook County IL (GO Revenue) µ		5.00-5.25			11-15-2022 to 11-15-2027		9,705,000		11,210,012		0.38
Cook County IL Series G (GO Revenue)		5.00			11-15-2028		27,000,000		29,765,610		1.01
Illinois (Various Revenue) µ		5.00-6.00			4-1-2021 to 7-1-2038		68,135,000		75,370,843		2.56
Illinois Finance Authority (Various Revenue) µ		0.42-7.13			9-1-2018 to 10-1-2041		68,460,000		74,029,289		2.52
Illinois Sports Facilities Authority (Tax Revenue) µ		0.00-5.25			6-15-2021 to 6-15-2032		33,040,000		36,095,326		1.23
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		17,510,000		14,214,443		0.48
Kane-Cook-DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		15,025,000		12,750,666		0.43
Metropolitan Pier & Exposition Authority Illinois Series 2015-XM0036 (Airport Revenue, Morgan Stanley Bank LIQ) 144Aø		1.00			6-15-2050		12,640,000		12,640,000		0.43
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue)		5.75			4-1-2038		14,000,000		15,893,220		0.54
Other securities									110,486,579		3.74
									566,365,522		19.21
Indiana: 1.37%
Rockport IN AEP Generating Company Project (Industrial Development Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.43			7-1-2025		16,200,000		16,200,000		0.55
Other securities									24,201,566		0.82
									40,401,566		1.37

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

Summary portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Iowa: 0.17%
Other securities								$	4,899,250		0.17	%
Kansas: 1.20%
Wyandotte County & Kansas City KS Sales Tax Special Obligation Vacation Village Project Area 4—Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00	%		9-1-2034	$	97,000,000		35,246,890		1.20
Wyandotte County & Kansas City KS Unified Government Special Obligation Second Lien CAB Series B (Tax Revenue) ¤		0.00			6-1-2021		45,000		34,244		0.00
Other securities									70,610		0.00
									35,351,744		1.20
Kentucky: 1.69%
Kentucky EDFA (Various Revenue) µ		0.00-0.73			8-15-2024 to 10-1-2028		24,605,000		21,372,462		0.73
Kentucky EDFA Catholic Health Initiatives Series B (Health Revenue) ±		1.79			2-1-2046		22,715,000		22,343,610		0.76
Other securities									6,081,928		0.20
									49,798,000		1.69
Louisiana: 0.78%
Other securities									23,091,116		0.78
Maine: 0.08%
Other securities									2,241,385		0.08
Maryland: 0.31%
Other securities									9,255,493		0.31
Massachusetts: 0.73%
Other securities									21,446,658		0.73
Michigan: 5.74%
Michigan Finance Authority (Various Revenue) µ		4.50-8.25			10-1-2020 to 10-1-2040		52,735,000		62,189,171		2.10
Michigan Finance Authority Refunding Notes Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		12,625,000		14,496,656		0.49
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		15,500,000		15,915,865		0.54
Other securities									76,695,006		2.61
									169,296,698		5.74
Minnesota: 0.03%
Other securities									766,755		0.03
Mississippi: 1.01%
Perry County MS PCR Leaf River Forest Products Incorporated Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.60			2-1-2022		20,000,000		20,000,000		0.68

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

12 Wells Fargo Municipal Bond Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Mississippi (continued)
Other securities								$	9,719,374		0.33	%
									29,719,374		1.01
Missouri: 0.59%
Other securities									17,507,363		0.59
Nebraska: 0.04%
Other securities									1,189,657		0.04
Nevada: 0.67%
Washoe County NV Series 2011-001 (GO Revenue, Dexia Credit Local LIQ) 144Aø		0.76	%		12-9-2030	$	13,555,000		13,555,000		0.46
Other securities									6,282,000		0.21
									19,837,000		0.67
New Jersey: 5.44%
New Jersey EDA (Various Revenue) µ		1.64-5.00			9-1-2025 to 10-1-2040		18,195,000		17,764,807		0.60
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.96			9-1-2027		22,245,000		19,992,916		0.68
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue)		5.00			3-1-2026		15,000,000		16,738,500		0.57
New Jersey TTFA (Various Revenue) µ		0.00-6.00			6-15-2023 to 6-15-2044		60,215,000		57,937,479		1.96
New Jersey TTFA Series A (Miscellaneous Revenue, National Insured)		5.75			6-15-2025		10,000,000		12,550,800		0.43
Other securities									35,348,340		1.20
									160,332,842		5.44
New Mexico: 0.36%
Other securities									10,718,481		0.36
New York: 11.77%
Metropolitan Transportation Authority New York Subseries E-2 (Transportation Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.40			11-15-2050		15,000,000		15,000,000		0.51
New York NY Municipal Water Finance Authority 2nd General Resolution Series AA (Water & Sewer Revenue)		5.00			6-15-2044		17,400,000		20,342,514		0.69
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.00			6-15-2044		30,265,000		35,834,971		1.22
New York NY Municipal Water Finance Authority (Water & Sewer Revenue) µ		0.37-5.75			6-15-2026 to 6-15-2044		28,055,000		31,169,353		1.05
New York NY Municipal Water Finance Authority 2nd General Resolution Series DD (Water & Sewer Revenue)		6.00			6-15-2040		11,625,000		12,815,749		0.43
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.00			6-15-2038		36,650,000		38,150,818		1.29
New York NY Transitional Finance Authority (Tax Revenue) µ		0.64-5.75			11-1-2022 to 1-15-2039		24,030,000		25,552,686		0.87
New York NY Transitional Finance Authority Future Tax Secured Bonds Fiscal 2007 Series A (Tax Revenue, Dexia Credit Local SPA) ø		0.60			8-1-2022		20,500,000		20,500,000		0.70
New York NY Transitional Finance Authority Future Tax Secured Subordinate Bonds Series A (Tax Revenue)		5.00			8-1-2031		17,075,000		21,432,369		0.73

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

Summary portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New York (continued)
New York NY Transitional Finance Authority Sub Series C3 (Tax Revenue, Dexia Credit Local SPA) ø		0.56	%		8-1-2031	$	24,200,000	$	24,200,000		0.82	%
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		20,920,000		20,928,368		0.71
Other securities									81,030,600		2.75
									346,957,428		11.77
North Carolina: 0.64%
Other securities									18,968,770		0.64
Ohio: 2.73%
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2035		12,000,000		14,202,720		0.48
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		18,000,000		18,512,460		0.63
Other securities									47,627,209		1.62
									80,342,389		2.73
Oklahoma: 0.40%
Other securities									11,711,778		0.40
Oregon: 0.18%
Other securities									5,338,980		0.18
Pennsylvania: 7.66%
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.93			11-1-2039		20,000,000		20,158,200		0.68
Bristol Township PA School District Series 27W Residual Interest Bonds Trust (GO Revenue, Barclays Bank plc LIQ) 144Aø		0.78			6-1-2031		12,790,000		12,790,000		0.44
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue) µ		5.75-7.75			7-1-2027 to 7-1-2032		8,975,000		12,760,990		0.43
Delaware Valley PA Regional Finance Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		16,420,000		21,281,634		0.72
Montgomery County PA IDA Exelon Generation Company LLC Project Series A (Industrial Development Revenue) ±		2.55			12-1-2029		15,530,000		15,967,014		0.54
Pennsylvania Public School Building Authority Series DCL-016 (Miscellaneous Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.88			6-1-2023		15,710,000		15,710,000		0.53
Pennsylvania Turnpike Commission Motor License Series B1 (Transportation Revenue)		5.00			12-1-2040		12,410,000		14,050,478		0.48
Philadelphia PA Series B (GO Revenue, Barclays Bank plc LOC) ø		0.42			8-1-2031		15,000,000		15,000,000		0.51
Other securities									97,984,990		3.33
									225,703,306		7.66
Puerto Rico: 0.39%
Other securities									11,591,053		0.39

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

14 Wells Fargo Municipal Bond Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Rhode Island: 0.19%
Other securities								$	5,655,482		0.19	%
South Carolina: 0.63%
Other securities									18,584,308		0.63
South Dakota: 0.26%
Other securities									7,686,117		0.26
Tennessee: 0.49%
Other securities									14,530,000		0.49
Texas: 7.66%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ø		0.54	%		11-1-2040	$	25,000,000		25,000,000		0.85
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.88			9-15-2017		8,405,000		8,374,490		0.28
Texas Municipal Gas Acquisition & Supply Corporation Sub Lien Series C (Utilities Revenue) ±		1.88			12-15-2026		28,780,000		26,458,030		0.90
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		12,500,000		15,916,125		0.54
Texas Transportation Commission Highway Improvement (Miscellaneous Revenue)		5.00			4-1-2028		7,280,000		9,129,047		0.31
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.65			4-1-2026		20,650,000		20,650,000		0.70
Other securities									120,137,379		4.08
									225,665,071		7.66
Utah: 0.52%
Other securities									15,324,560		0.52
Vermont: 1.38%
Vermont Student Assistance Corporation Series B Class A2 (Education Revenue) ±		3.68			12-3-2035		16,800,000		17,451,000		0.59
Vermont Student Assistance Corporation Series B Class B (Education Revenue) ±		1.46			6-2-2042		23,782,086		23,353,533		0.79
									40,804,533		1.38
Virgin Islands: 0.32%
Other securities									9,455,481		0.32
Virginia: 0.22%
Other securities									6,498,874		0.22
Washington: 0.26%
Other securities									7,671,676		0.26
West Virginia: 0.43%
Other securities									12,570,836		0.43

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

Summary portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Wisconsin: 0.56%
Other securities								$	16,619,853		0.56	%
Wyoming: 0.79%
Sweetwater County WY PCR Refunding PacifiCorp Project Series A (Industrial Development Revenue) ø		0.52	%		1-1-2017	$	21,000,000		21,000,000		0.71
Other securities									2,429,981		0.08
									23,429,981		0.79
Total Municipal Obligations (Cost $2,679,389,675)									2,893,326,178		98.14
	Yield					Shares
Short-Term Investments: 0.19%
Investment Companies: 0.08%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.30					2,204,064		2,204,064		0.08
						Principal
U.S. Treasury Securities: 0.11%
U.S. Treasury Bill (z)#		0.26			9-15-2016	$	3,325,000		3,323,480		0.11
Total Short-Term Investments (Cost $5,527,197)									5,527,544		0.19
Total investments in securities (Cost $2,700,284,722) *									2,913,513,805		98.83	%
Other assets and liabilities, net									34,457,016		1.17
Total net assets								$	2,947,970,821		100.00	%

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

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

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

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

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

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

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

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

(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 $2,701,438,187 and unrealized gains (losses) consists of:

Gross unrealized gains	$	221,205,311
Gross unrealized losses		(9,129,693	)
Net unrealized gains	$	212,075,618

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

16 Wells Fargo Municipal Bond Fund Statement of assets and liabilities—June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $2,698,080,658)	$	2,911,309,741
In affiliated securities, at value (cost $2,204,064)		2,204,064
Total investments, at value (cost $2,700,284,722)		2,913,513,805
Cash		783,750
Receivable for investments sold		31,592,483
Receivable for Fund shares sold		5,218,165
Receivable for interest		24,469,801
Receivable for daily variation margin on open futures contracts		148,859
Prepaid expenses and other assets		250,185
Total assets		2,975,977,048
Liabilities
Dividends payable		1,008,811
Payable for investments purchased		12,744,237
Payable for floating-rate notes issued		5,025,000
Payable for Fund shares redeemed		7,459,260
Interest and fee expense payable		15,912
Management fee payable		785,882
Distribution fees payable		113,386
Administration fees payable		307,847
Accrued expenses and other liabilities		545,892
Total liabilities		28,006,227
Total net assets	$	2,947,970,821
NET ASSETS CONSIST OF
Paid-in capital	$	2,730,019,358
Overdistributed net investment income		(270,939	)
Accumulated net realized gains on investments		6,808,151
Net unrealized gains on investments		211,414,251
Total net assets	$	2,947,970,821
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,529,883,568
Shares outstanding – Class A1		143,020,541
Net asset value per share – Class A		$10.70
Maximum offering price per share – Class A2		$11.20
Net assets – Class B	$	457,865
Shares outstanding – Class B1		42,777
Net asset value per share – Class B		$10.70
Net assets – Class C	$	186,036,106
Shares outstanding – Class C1		17,395,562
Net asset value per share – Class C		$10.69
Net assets – Administrator Class	$	270,304,289
Shares outstanding – Administrator Class1		25,258,262
Net asset value per share – Administrator Class		$10.70
Net assets – Institutional Class	$	961,288,993
Shares outstanding – Institutional Class1		89,872,485
Net asset value per share – Institutional Class		$10.70

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations —year ended June 30, 2016 Wells Fargo Municipal Bond Fund 17

Investment income
Interest	$	112,091,383
Dividends		645,148
Income from affiliated securities		32,870
Total investment income		112,769,401
Expenses
Management fee		10,895,512
Administration fees
Class A		2,650,509
Class B		1,706
Class C		274,588
Administrator Class		279,526
Institutional Class		597,984
Investor Class		295,966	1
Shareholder servicing fees
Class A		4,141,421
Class B		2,666
Class C		429,044
Administrator Class		689,207	1
Investor Class		388,782
Distribution fees
Class B		7,996
Class C		1,287,131
Custody and accounting fees		160,842
Professional fees		72,197
Registration fees		134,077
Shareholder report expenses		129,467
Trustees’ fees and expenses		6,479
Interest and fee expense		42,771
Other fees and expenses		32,025
Total expenses		22,519,896
Less: Fee waivers and/or expense reimbursements		(1,135,612	)
Net expenses		21,384,284
Net investment income		91,385,117
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		27,481,533
Futures transactions		(1,695,499	)
Net realized gains on investments		25,786,034
Net change in unrealized gains (losses) on:
Unaffiliated securities		119,086,904
Futures transactions		(1,814,832	)
Net change in unrealized gains (losses) on investments		117,272,072
Net realized and unrealized gains (losses) on investments		143,058,106
Net increase in net assets resulting from operations	$	234,443,223

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

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

18 Wells Fargo Municipal Bond Fund Statement of changes in net assets

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	91,385,117				$	86,557,165
Net realized gains on investments					25,786,034					29,866,649
Net change in unrealized gains (losses) on investments					117,272,072					(32,280,612	)
Net increase in net assets resulting from operations					234,443,223					84,143,202
Distributions to shareholders from
Net investment income
Class A					(49,506,305	)				(44,193,043	)
Class B					(24,157	)				(52,448	)
Class C					(3,837,158	)				(3,216,672	)
Administrator Class					(8,790,709	)				(11,782,289	)
Institutional Class					(24,426,383	)				(13,405,172	)
Investor Class					(4,799,469	)1				(13,894,674	)
Net realized gains
Class A					(9,166,267	)				(13,650,951	)
Class B					(5,119	)				(23,225	)
Class C					(776,529	)				(1,383,944	)
Administrator Class					(1,141,943	)				(3,527,595	)
Institutional Class					(3,376,986	)				(3,771,405	)
Investor Class					0	1				(4,402,074	)
Total distributions to shareholders					(105,851,025	)				(113,303,492	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		64,653,820			669,764,488			23,973,044		250,012,763
Class B		27			279			117		1,222
Class C		3,347,238			35,008,106			3,143,375		32,806,096
Administrator Class		10,079,801			104,821,922			20,246,598		211,455,411
Institutional Class		55,658,632			579,421,682			41,693,219		434,469,984
Investor Class		1,789,189	1		18,389,280	1		11,800,968		123,113,464
					1,407,405,757					1,051,858,940
Reinvestment of distributions
Class A		5,096,119			53,145,243			5,027,417		52,416,400
Class B		2,442			25,421			5,886		61,452
Class C		375,341			3,915,284			372,563		3,884,533
Administrator Class		922,285			9,615,221			1,393,587		14,546,594
Institutional Class		1,934,077			20,220,148			1,139,701		11,881,442
Investor Class		339,015	1		3,486,525	1		1,628,050		16,974,411
					90,407,842					99,764,832

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

Statement of changes in net assets Wells Fargo Municipal Bond Fund 19

	Year ended June 30, 2016						Year ended June 30, 2015
	Shares						Shares
Capital share transactions (continued)
Payment for shares redeemed
Class A		(83,965,428	)		(877,180,351	)		(32,551,574	)		(338,551,266	)
Class B		(122,606	)		(1,277,115	)		(196,214	)		(2,047,558	)
Class C		(2,393,610	)		(24,976,011	)		(2,440,156	)		(25,378,976	)
Administrator Class		(23,257,159	)		(239,883,451	)		(19,225,008	)		(200,313,517	)
Institutional Class		(18,804,492	)		(196,444,238	)		(16,438,142	)		(171,254,683	)
Investor Class		(50,409,942	)1		(520,861,783	)1		(17,852,131	)		(185,133,597	)
					(1,860,622,949	)					(922,679,597	)
Net increase (decrease) in net assets resulting from capital share transactions					(362,809,350	)					228,944,175
Total increase (decrease) in net assets					(234,217,152	)					199,783,885
Net assets
Beginning of period					3,182,187,973						2,982,404,088
End of period				$	2,947,970,821					$	3,182,187,973
Overdistributed net investment income				$	(270,939	)				$	(271,875	)

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

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

20 Wells Fargo Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.25			$10.33			$10.00			$10.24			$9.54
Net investment income		0.31			0.28			0.33			0.27			0.37
Net realized and unrealized gains (losses) on investments		0.50			0.01			0.40			(0.08	)		0.70
Total from investment operations		0.81			0.29			0.73			0.19			1.07
Distributions to shareholders from
Net investment income		(0.31	)		(0.28	)		(0.33	)		(0.27	)		(0.37	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.36	)		(0.37	)		(0.40	)		(0.43	)		(0.37	)
Net asset value, end of period		$10.70			$10.25			$10.33			$10.00			$10.24
Total return2		8.04	%		2.81	%		7.60	%		1.70	%		11.45	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%3		0.80	%3		0.80	%3		0.80	%3		0.81	%3
Net expenses		0.75	%3		0.75	%3		0.76	%3		0.75	%3		0.75	%3
Net investment income		2.99	%		2.71	%		3.36	%		2.56	%		3.72	%
Supplemental data
Portfolio turnover rate		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$1,529,884			$1,612,212			$1,661,362			$1,807,790			$1,759,128

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2016	0.00%
Year ended June 30, 2015	0.00%
Year ended June 30, 2014	0.01%
Year ended June 30, 2013	0.00%
Year ended June 30, 2012	0.00%

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

Financial highlights Wells Fargo Municipal Bond Fund 21

(For a share outstanding throughout each period)

	Year ended June 30
CLASS B	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.26			$10.34			$10.00			$10.24			$9.54
Net investment income		0.24	1		0.20	1		0.26	1		0.19			0.29
Net realized and unrealized gains (losses) on investments		0.48			0.02			0.41			(0.08	)		0.71
Total from investment operations		0.72			0.22			0.67			0.11			1.00
Distributions to shareholders from
Net investment income		(0.23	)		(0.21	)		(0.26	)		(0.19	)		(0.30	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)2
Total distributions to shareholders		(0.28	)		(0.30	)		(0.33	)		(0.35	)		(0.30	)
Net asset value, end of period		$10.70			$10.26			$10.34			$10.00			$10.24
Total return3		7.13	%		2.05	%		6.90	%		0.94	%		10.62	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%4		1.54	%4		1.55	%4		1.54	%4		1.56	%4
Net expenses		1.50	%4		1.50	%4		1.51	%4		1.50	%4		1.50	%4
Net investment income		2.26	%		1.94	%		2.66	%		1.83	%		3.05	%
Supplemental data
Portfolio turnover rate		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$458			$1,671			$3,650			$7,604			$14,723

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

⁴  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2016	0.00%
Year ended June 30, 2015	0.00%
Year ended June 30, 2014	0.01%
Year ended June 30, 2013	0.00%
Year ended June 30, 2012	0.00%

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

22 Wells Fargo Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.25			$10.33			$10.00			$10.23			$9.53
Net investment income		0.23			0.20			0.26			0.19			0.30
Net realized and unrealized gains (losses) on investments		0.49			0.01			0.40			(0.07	)		0.70
Total from investment operations		0.72			0.21			0.66			0.12			1.00
Distributions to shareholders from
Net investment income		(0.23	)		(0.20	)		(0.26	)		(0.19	)		(0.30	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.28	)		(0.29	)		(0.33	)		(0.35	)		(0.30	)
Net asset value, end of period		$10.69			$10.25			$10.33			$10.00			$10.23
Total return2		7.14	%		2.05	%		6.80	%		1.04	%		10.63	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%3		1.55	%3		1.55	%3		1.55	%3		1.56	%3
Net expenses		1.50	%3		1.50	%3		1.51	%3		1.50	%3		1.50	%3
Net investment income		2.24	%		1.97	%		2.60	%		1.82	%		2.95	%
Supplemental data
Portfolio turnover rate		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$186,036			$164,703			$154,863			$168,658			$168,883

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2016	0.00%
Year ended June 30, 2015	0.00%
Year ended June 30, 2014	0.01%
Year ended June 30, 2013	0.00%
Year ended June 30, 2012	0.00%

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

Financial highlights Wells Fargo Municipal Bond Fund 23

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.26			$10.34			$10.01			$10.24			$9.54
Net investment income		0.33			0.30			0.35			0.28			0.39
Net realized and unrealized gains (losses) on investments		0.49			0.01			0.40			(0.07	)		0.69
Total from investment operations		0.82			0.31			0.75			0.21			1.08
Distributions to shareholders from
Net investment income		(0.33	)		(0.30	)		(0.35	)		(0.28	)		(0.38	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.38	)		(0.39	)		(0.42	)		(0.44	)		(0.38	)
Net asset value, end of period		$10.70			$10.26			$10.34			$10.01			$10.24
Total return		8.10	%		2.97	%		7.75	%		1.96	%		11.62	%
Ratios to average net assets (annualized)
Gross expenses		0.73	%2		0.73	%2		0.74	%2		0.74	%2		0.74	%2
Net expenses		0.60	%2		0.60	%2		0.61	%2		0.60	%2		0.60	%2
Net investment income		3.15	%		2.86	%		3.49	%		2.72	%		3.74	%
Supplemental data
Portfolio turnover rate		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$270,304			$384,884			$362,896			$451,005			$227,942

¹  Amount is less than $0.005.

²  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2016	0.00%
Year ended June 30, 2015	0.00%
Year ended June 30, 2014	0.01%
Year ended June 30, 2013	0.00%
Year ended June 30, 2012	0.00%

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

24 Wells Fargo Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.25			$10.33			$10.00			$10.24			$9.54
Net investment income		0.34			0.31			0.36			0.30			0.40
Net realized and unrealized gains (losses) on investments		0.50			0.01			0.40			(0.08	)		0.70
Total from investment operations		0.84			0.32			0.76			0.22			1.10
Distributions to shareholders from
Net investment income		(0.34	)		(0.31	)		(0.36	)		(0.30	)		(0.40	)
Net realized gains		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.39	)		(0.40	)		(0.43	)		(0.46	)		(0.40	)
Net asset value, end of period		$10.70			$10.25			$10.33			$10.00			$10.24
Total return		8.35	%		3.11	%		7.90	%		2.00	%		11.76	%
Ratios to average net assets (annualized)
Gross expenses		0.46	%2		0.47	%2		0.47	%2		0.47	%2		0.47	%2
Net expenses		0.46	%2		0.47	%2		0.47	%2		0.47	%2		0.47	%2
Net investment income		3.27	%		3.02	%		3.58	%		2.85	%		4.15	%
Supplemental data
Portfolio turnover rate		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$961,289			$523,736			$255,112			$143,062			$151,285

¹  Amount is less than $0.005.

²  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2016	0.00%
Year ended June 30, 2015	0.00%
Year ended June 30, 2014	0.01%
Year ended June 30, 2013	0.00%
Year ended June 30, 2012	0.00%

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

Notes to financial statements Wells Fargo Municipal Bond Fund 25

1. ORGANIZATION

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

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although a Fund 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 Fund’s Valuation Procedures.

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in security values and interest rates. The

26 Wells Fargo Municipal Bond Fund Notes to financial statements

primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Inverse floating-rate obligations

The Fund may participate in inverse floating-rate obligation (“Inverse Floater”) structures whereby a fixed-rate bond (“Fixed-Rate Bond”) purchased by the Fund is transferred to a tender option bond trust (“TOB Trust”). The TOB Trust issues floating-rate notes (“Floating-Rate Notes”) to third-parties, which are collateralized by the Fixed-Rate Bond, and the Fund buys a residual interest in the TOB Trust’s assets and cash flows. The Inverse Floater held by the Fund gives the Fund the right (1) to cause the holders of the Floating-Rate Notes to tender their notes at par, and (2) to have the Fixed-Rate Bond held by the TOB Trust transferred back to the Fund, thereby collapsing the TOB Trust. The Fund accounts for the transaction described above as a secured borrowing by including the Fixed-Rate Bond in its Portfolio of Investments, and by recording the Floating-Rate Notes as a liability in the Statement of Assets and Liabilities. The Fund also records the interest paid on Floating-Rate Notes as interest expense. The Floating-Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes for redemption at par at each reset date. Inverse Floaters held by the Fund are securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended.

Security transactions and income recognition

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

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

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

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net realized gains on investments
$(50,229)	$50,229

Notes to financial statements Wells Fargo Municipal Bond Fund 27

As of June 30, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

2017	2018	2019
$5,924,646	$5,924,646	$130,027

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Corporate bonds and notes	$	0	$	14,660,083	$	0	$	14,660,083
Municipal obligations		0		2,893,326,178		0		2,893,326,178
Short-term investments
Investment companies		2,204,064		0		0		2,204,064
U.S. Treasury securities		3,323,480		0		0		3,323,480
		5,527,544		2,907,986,261		0		2,913,513,805
Futures contracts		0		148,859		0		148,859
Total assets	$	5,527,544	$	2,908,135,120	$	0	$	2,913,662,664

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1. The Fund had no material transfers between Level 2 and Level 3.

28 Wells Fargo Municipal Bond Fund Notes to financial statements

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.36% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.75% for Class A shares, 1.50% for Class B shares, 1.50% for Class C shares, 0.60% for Administrator Class shares, and 0.48% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fees

The Trust has adopted a distribution plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended June 30, 2016, Funds Distributor received $61,000 from the sale of Class A shares and $266 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C, Administrator Class, and Investor Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

Notes to financial statements Wells Fargo Municipal Bond Fund 29

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 June 30, 2016 were $420,264,951 and $1,071,548,125, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

At June 30, 2016, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at June 30, 2016		Unrealized gains (losses)
9-21-2016	JPMorgan	200 Short		U.S. Treasury Bonds	$	34,468,750	$	(1,832,441	)
9-30-2016	JPMorgan	600 Short		5-Year U.S. Treasury Notes		73,298,438		17,609

The Fund had an average notional amount of $279,000 in long futures contracts and $69,364,673 in short futures contracts during the year ended June 30, 2016.

On June 30, 2016, the cumulative unrealized losses on futures contracts in the amount of $1,814,832 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$148,859	$	0	$	0	$	148,859

7. BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the

30 Wells Fargo Municipal Bond Fund Notes to financial statements

unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

During the year ended June 30, 2016, the Fund participated in Inverse Floaters which are accounted for as a secured borrowing. At June 30, 2016, the value of Floating-Rate Notes outstanding and the related collateral were $5,025,000 and $11,373,484, respectively. During the year ended June 30, 2016, the Fund held Floating-Rate Notes that had an average daily balance outstanding of $5,025,000 and incurred interest and fee expense in the amount of $42,771.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30,
	2016		2015
Ordinary income	$	2,352,986	$	883,048
Tax-exempt income		89,031,195		85,661,250
Long-term capital gain		14,466,844		26,759,194

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Unrealized gains	Undistributed long-term gain	Capital loss carryforward
$906,459	$212,075,618	$18,063,743	$(11,979,319)

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Municipal Bond Fund 31

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the summary portfolio of investments, of the Wells Fargo Municipal Bond Fund (formerly known as Wells Fargo Advantage Municipal Bond Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Municipal Bond Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

32 Wells Fargo Municipal Bond Fund Other information (unaudited)

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $14,466,844 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2016.

For the fiscal year ended June 30, 2016, $1,816,740 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Municipal Bond Fund 33

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

34 Wells Fargo Municipal Bond Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

Other information (unaudited) Wells Fargo Municipal Bond Fund 35

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Municipal Bond Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe��), and in comparison to the 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.

36 Wells Fargo Municipal Bond Fund Other information (unaudited)

The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays Municipal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were lower than or equal to the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Other information (unaudited) Wells Fargo Municipal Bond Fund 37

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

38 Wells Fargo Municipal Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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 Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244406 08-16 A253/AR253 6-16

Annual Report

June 30, 2016

Wells Fargo
North Carolina Tax-Free Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	18
Report of independent registered public accounting firm	22
Other information	23
List of abbreviations	29

The views expressed and any forward-looking statements are as of June 30, 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 North Carolina Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo North Carolina Tax-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Bruce R. Johns

Robert J. Miller

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (ENCMX)	1-11-1993		0.67		4.05		3.62		5.43		5.01		4.10		0.94		0.85
Class C (ENCCX)	3-27-2002		3.65		4.23		3.33		4.65		4.23		3.33		1.69		1.60
Institutional Class (ENCYX)	2-28-1994		–		–		–		5.76		5.34		4.40		0.61		0.54
Barclays Municipal Bond Index4	–		–		–		–		7.65		5.33		5.13		–		–
Barclays North Carolina Municipal Bond Index5	–		–		–		–		6.09		4.51		4.87		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to North Carolina municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁶

¹  Historical performance shown for all classes of the Fund prior to July 12, 2010, is based on the performance of the Fund’s predecessor, Evergreen North Carolina Municipal Bond Fund.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal Bond Index and the Barclays North Carolina Municipal 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 credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

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

6 Wells Fargo North Carolina Tax-Free Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed both of its benchmarks, the Barclays Municipal Bond Index and the Barclays North Carolina Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n We focused on defensively structured bonds in credits that we believed would outperform if interest rates rose. A short duration detracted from performance as yields fell and the market rallied. Yield-curve positioning also detracted from performance because it was underweight the long end of the yield curve, which was the best-performing part.

n Investors reached for income in an ultralow-yield environment, which resulted in a strong technical rally in credit. The Fund’s overweight to BBB-rated and A-rated bonds was the largest contributor to performance for the period. Sector allocation and security selection contributed to performance.

The period was marked by the long-term bonds outperforming.

The period began with the federal funds target rate expected to increase by late 2015, which made shorter maturities between one and five years less attractive due to a potential backup in municipal rates. The U.S. Federal Reserve (Fed) tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment dropped below 5% and economic growth was expected to remain at or above 2%. Municipal yields declined with longer-dated maturities outperforming by a significant margin. Less new-issue supply and strong demand (as evidenced by positive inflows to municipal bond funds) helped support the market. As investors reached for yield, credit spreads fell to near their lowest historical levels and the long end rallied to an all-time low of 2% on June 27, 2016.

Credit quality as of as of June 30, 2016⁷

The Fund’s credit positioning contributed to performance.

The Fund’s overweight to bonds A-rated and below was beneficial as lower-rated bonds outperformed higher-quality bonds. As credit spreads contracted, we moved up in credit quality because we believed higher-rated bonds represented better relative value compared with lower-rated bonds. Many state-specific funds have exposure to Puerto Rico debt due to its triple tax exemption; however, we hold no Puerto Rico debt in the Fund. While the credit performed well over the past year, significant challenges remain and additional defaults are highly likely. The Fund was overweight essential-service revenue bonds, which outperformed, and underweight general obligation (GO) bonds, which underperformed. We saw more relative value in revenue bonds with predictable revenue streams that offered higher income than we did in GO bonds.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo North Carolina Tax-Free Fund 7

Effective maturity distribution as of June 30, 2016⁸

The Fund was positioned in a defensive manner, which was a detractor to performance.

We kept the Fund’s duration short throughout the period, which detracted from results as yields declined. Yield-curve positioning was suboptimal. The Fund was concentrated in the 10-year to 20-year part of the curve because we felt it offered the best risk-adjusted returns. While this part of the curve performed well, it was not enough to offset our underweight to the long end of the yield curve, which was the best-performing part of the curve.

North Carolina continues to improve in credit quality.

The state of North Carolina is rated Aaa/AAA/AAA (stable) by Moody’s, Standard & Poor’s, and Fitch Ratings, respectively, based on conservative fiscal practices, moderate debt levels, and a well-funded pension system. The governor serves as the budget director, which allows for quick response when needed to balance operations. The state’s debt burden is a low 1.7% of personal income at $656 per capita with 80% of principal retired in 10 years. The state’s savings reserve account (rainy day fund) improved to 5% of operating expenses in 2016. Sales tax revenue is forecast to increase 6.1% in fiscal-year 2017, with income tax budgeted to increase 1.3%. We expect the state’s economy to continue to recover and expand while maintaining moderate debt levels.

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. However, if the U.S. economy does weaken materially, this could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo North Carolina Tax-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,029.43	$	4.29		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.64	$	4.27		0.85	%
Class C
Actual	$	1,000.00	$	1,025.59	$	8.06		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.91	$	8.02		1.60	%
Institutional Class
Actual	$	1,000.00	$	1,031.01	$	2.73		0.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	2.72		0.54	%

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

Portfolio of investments—June 30, 2016 Wells Fargo North Carolina Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.74%
California: 1.12%
University of California Limited Project Series G (Education Revenue)		5.00	%		5-15-2037	$	1,000,000	$	1,181,330
Guam: 4.51%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,142,140
Guam Government Hotel Occupancy Series A (Tax Revenue)		6.00			11-1-2026		2,000,000		2,408,600
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2023		1,000,000		1,220,170
									4,770,910
Illinois: 0.93%
Chicago IL Board of Education Refunding Bond Series A (GO Revenue)		4.39			3-1-2032		1,000,000		980,410
Indiana: 1.16%
Indiana Finance Authority Clean Water Act Project Series A (Water & Sewer Revenue)		5.00			10-1-2031		1,000,000		1,225,450
New York: 1.68%
New York Dormitory Authority Personal Income Tax Series B (Tax Revenue)		5.00			3-15-2042		1,500,000		1,781,100
North Carolina: 80.71%
Cape Fear NC Public Utility Authority (Water & Sewer Revenue)		5.00			8-1-2035		3,000,000		3,270,930
Carolina Beach NC Enterprise System (Water & Sewer Revenue)		5.00			6-1-2029		250,000		320,065
Carolina Beach NC Enterprise System (Water & Sewer Revenue)		5.00			6-1-2031		245,000		311,081
Charlotte Mecklenburg NC Hospital (Health Revenue, JPMorgan Chase & Company SPA) ±		0.44			1-15-2037		2,500,000		2,500,000
Charlotte NC Airport Series A (Airport Revenue)		5.50			7-1-2034		2,500,000		2,884,475
Charlotte NC Airport Series D (Airport Revenue, Bank of America NA LOC) ø		0.46			7-1-2034		1,000,000		1,000,000
Charlotte NC AMT Series B (Airport Revenue)		5.00			7-1-2020		1,480,000		1,704,161
Charlotte NC AMT Series B (Airport Revenue)		5.50			7-1-2024		810,000		933,371
Charlotte NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			12-1-2026		1,160,000		1,388,242
Charlotte NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			6-1-2030		1,000,000		1,235,130
Charlotte NC Certificate of Participation Series E (Miscellaneous Revenue)		5.00			6-1-2023		3,650,000		4,090,446
Charlotte NC Douglas Airport Series A (Airport Revenue)		5.00			7-1-2025		1,645,000		1,908,151
Charlotte-Mecklenburg NC Hospital Authority (Health Revenue)		5.00			1-15-2027		1,885,000		2,058,665
Cumberland County NC Limited Obligation Series B (Miscellaneous Revenue)		5.00			11-1-2025		1,000,000		1,208,310
Cumberland County NC Limited Obligation Series B (Miscellaneous Revenue)		5.00			11-1-2026		1,000,000		1,204,370
Fayetteville NC Public Works Commission Series B (Utilities Revenue)		5.00			3-1-2023		600,000		667,662
Jacksonville NC Enterprise System (Water & Sewer Revenue)		5.25			5-1-2028		500,000		673,425
Johnston County NC Memorial Hospital Authority (Health Revenue, AGM/FHA Insured)		5.25			10-1-2036		1,960,000		2,117,035
Mecklenburg County NC Public Facilities Corporation (Miscellaneous Revenue)		5.00			3-1-2022		1,035,000		1,151,137
New Hanover County NC New Hanover Regional Medical Center (Health Revenue)		5.00			10-1-2026		1,000,000		1,191,900
New Hanover County NC New Hanover Regional Medical Center (Health Revenue)		5.00			10-1-2028		3,000,000		3,501,960
New Hanover County NC New Hanover Regional Medical Center (Health Revenue, AGM Insured)		5.13			10-1-2031		1,800,000		2,008,782
North Carolina Capital Improvement Limited Series A (Miscellaneous Revenue)		5.00			5-1-2026		3,000,000		3,237,600
North Carolina Department of Transportation (Transportation Revenue)		5.00			6-30-2028		1,275,000		1,486,854
North Carolina Facilities Finance Agency (Housing Revenue, AGC Insured)		5.00			6-1-2027		1,000,000		1,206,820
North Carolina HFA Series 25-A (Housing Revenue)		4.65			7-1-2021		1,735,000		1,738,886
North Carolina HFA Series B (Housing Revenue)		4.25			1-1-2028		2,860,000		2,960,643
North Carolina Medical Care Commission Baptist Hospital Project (Health Revenue)		5.25			6-1-2029		2,000,000		2,300,360

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

10 Wells Fargo North Carolina Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
North Carolina (continued)
North Carolina Medical Care Commission Cleveland County Health Care System (Health Revenue)		5.00	%		1-1-2018	$	500,000	$	533,020
North Carolina Medical Care Commission Presbyterian Homes Project (Health Revenue)		5.50			10-1-2031		2,000,000		2,013,980
North Carolina Medical Care Commission Presbyterian Homes Project (Health Revenue)		5.60			10-1-2036		1,500,000		1,509,810
North Carolina Medical Care Commission Southeastern Regional Medical Center (Health Revenue)		5.00			6-1-2026		385,000		446,065
North Carolina Medical Care Commission Southeastern Regional Medical Center (Health Revenue)		5.00			6-1-2032		500,000		566,315
North Carolina Medical Care Commission Stanley Memorial Hospital Project (Health Revenue)		5.00			7-1-2033		1,000,000		1,040,140
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.25			12-1-2033		1,500,000		1,700,340
North Carolina Medical Care Commission Wake Forest Baptist Medical Center (Health Revenue)		5.00			12-1-2022		1,950,000		2,375,061
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Series A (Utilities Revenue)		5.00			1-1-2021		2,720,000		3,111,789
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Prerefunded Series A (Utilities Revenue)		5.00			1-1-2030		1,105,000		1,222,384
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Unrefunded Series A (Utilities Revenue)		5.00			1-1-2030		445,000		488,770
North Carolina Port Authority Series B (Airport Revenue)		5.00			2-1-2025		3,540,000		3,944,480
North Carolina Raleigh-Durham Airport Authority Series B-1 (Airport Revenue)		5.00			11-1-2028		1,500,000		1,717,920
Onslow County NC Water and Sewer Authority (Water & Sewer Revenue)		5.00			12-1-2027		495,000		642,956
Onslow County NC Water and Sewer Authority (Water & Sewer Revenue)		5.00			12-1-2028		505,000		654,233
Orange County NC Public Facilities Company Limited Obligation (Miscellaneous Revenue)		5.00			10-1-2026		1,000,000		1,201,480
Pitt County NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			4-1-2027		875,000		1,111,758
Raleigh NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			2-1-2028		600,000		774,966
Raleigh NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			2-1-2029		900,000		1,157,850
Raleigh NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			10-1-2033		1,000,000		1,241,760
University of North Carolina at Greensboro (Education Revenue)		5.00			4-1-2033		2,000,000		2,432,060
University of North Carolina at Greensboro (Education Revenue)		5.00			4-1-2039		1,620,000		1,944,194
Wilmington NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			6-1-2029		2,580,000		2,795,198
Wilmington NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			6-1-2030		400,000		512,868
									85,399,858
Tennessee: 3.41%
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2026		1,020,000		1,287,209
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2021		2,000,000		2,320,660
									3,607,869
Virgin Islands: 2.97%
Virgin Islands PFA (Miscellaneous Revenue)		6.75			10-1-2019		2,890,000		3,139,841
Washington: 1.17%
Tumwater Office Properties Washington Office Buildings (Miscellaneous Revenue)		5.00			7-1-2026		1,000,000		1,243,000
Wisconsin: 1.08%
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.75			8-1-2033		1,000,000		1,139,400
Total Municipal Obligations (Cost $94,972,588)									104,469,168

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

Portfolio of investments—June 30, 2016 Wells Fargo North Carolina Tax-Free Fund 11

Security name	Yield			Shares		Value
Short-Term Investments: 0.14%
Investment Companies: 0.14%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.30	%		143,783	$	143,783
Total Short-Term Investments (Cost $143,783)							143,783

Total investments in securities (Cost $95,116,371) *	98.88	%		104,612,951
Other assets and liabilities, net	1.12			1,190,262
Total net assets	100.00	%	$	105,803,213

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

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

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

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

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

* Cost for federal income tax purposes is $95,116,370 and unrealized gains (losses) consists of:

Gross unrealized gains	$	9,516,171
Gross unrealized losses		(19,590	)
Net unrealized gains	$	9,496,581

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

12 Wells Fargo North Carolina Tax-Free Fund Statement of assets and liabilities —June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $94,972,588)	$	104,469,168
In affiliated securities, at value (cost $143,783)		143,783
Total investments, at value (cost $95,116,371)		104,612,951
Receivable for investments sold		110,000
Receivable for Fund shares sold		39,986
Receivable for interest		1,294,084
Prepaid expenses and other assets		24,830
Total assets		106,081,851
Liabilities
Dividends payable		130,038
Payable for Fund shares redeemed		75,693
Management fee payable		26,166
Distribution fee payable		3,742
Administration fees payable		9,588
Accrued expenses and other liabilities		33,411
Total liabilities		278,638
Total net assets	$	105,803,213
NET ASSETS CONSIST OF
Paid-in capital	$	106,655,671
Overdistributed net investment income		(59,574	)
Accumulated net realized losses on investments		(10,289,464	)
Net unrealized gains on investments		9,496,580
Total net assets	$	105,803,213
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	36,889,820
Shares outstanding – Class A1		3,481,001
Net asset value per share – Class A		$10.60
Maximum offering price per share – Class A2		$11.10
Net assets – Class C	$	6,120,669
Shares outstanding – Class C1		577,526
Net asset value per share – Class C		$10.60
Net assets – Institutional Class	$	62,792,724
Shares outstanding – Institutional Class1		5,925,228
Net asset value per share – Institutional Class		$10.60

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended June 30, 2016 Wells Fargo North Carolina Tax-Free Fund 13

Investment income
Interest	$	3,866,238
Income from affiliated securities		1,573
Total investment income		3,867,811
Expenses
Management fee		401,302
Administration fees
Class A		56,494
Class C		7,817
Institutional Class		48,105
Shareholder servicing fees
Class A		88,273
Class C		12,214
Distribution fee
Class C		36,641
Custody and accounting fees		10,375
Professional fees		47,156
Registration fees		49,972
Shareholder report expenses		9,005
Trustees’ fees and expenses		22,770
Other fees and expenses		8,465
Total expenses		798,589
Less: Fee waivers and/or expense reimbursements		(95,585	)
Net expenses		703,004
Net investment income		3,164,807
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(55,699	)
Net change in unrealized gains (losses) on investments		2,346,419
Net realized and unrealized gains (losses) on investments		2,290,720
Net increase in net assets resulting from operations	$	5,455,527

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

14 Wells Fargo North Carolina Tax-Free Fund Statement of changes in net assets

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	3,164,807					$	3,380,153
Net realized gains (losses) on investments					(55,699	)					901,303
Net change in unrealized gains (losses) on investments					2,346,419						(448,372	)
Net increase in net assets resulting from operations					5,455,527						3,833,084
Distributions to shareholders from
Net investment income
Class A					(1,060,689	)					(1,066,500	)
Class C					(109,808	)					(102,579	)
Institutional Class					(1,994,310	)					(2,211,074	)
Total distributions to shareholders					(3,164,807	)					(3,380,153	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		424,558			4,432,275			66,427			692,635
Class C		186,322			1,956,171			53,420			558,887
Institutional Class		1,135,937			11,925,410			976,885			10,167,225
					18,313,856						11,418,747
Reinvestment of distributions
Class A		94,806			992,485			92,637			968,218
Class C		9,754			102,165			8,722			91,170
Institutional Class		39,018			408,587			35,923			375,472
					1,503,237						1,434,860
Payment for shares redeemed
Class A		(317,128	)		(3,313,134	)		(468,709	)		(4,906,152	)
Class C		(46,145	)		(483,983	)		(76,563	)		(796,737	)
Institutional Class		(1,122,422	)		(11,750,628	)		(2,156,709	)		(22,473,470	)
					(15,547,745	)					(28,176,359	)
Net increase (decrease) in net assets resulting from capital share transactions					4,269,348						(15,322,752	)
Total increase (decrease) in net assets					6,560,068						(14,869,821	)
Net assets
Beginning of period					99,243,145						114,112,966
End of period				$	105,803,213					$	99,243,145
Overdistributed net investment income				$	(59,574	)				$	(59,574	)

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

Financial highlights Wells Fargo North Carolina Tax-Free Fund 15

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.36			$10.33			$10.08			$10.34			$9.71
Net investment income		0.31			0.32			0.33			0.32			0.34
Net realized and unrealized gains (losses) on investments		0.24			0.03			0.25			(0.26	)		0.63
Total from investment operations		0.55			0.35			0.58			0.06			0.97
Distributions to shareholders from
Net investment income		(0.31	)		(0.32	)		(0.33	)		(0.32	)		(0.34	)
Net asset value, end of period		$10.60			$10.36			$10.33			$10.08			$10.34
Total return1		5.43	%		3.35	%		5.92	%		0.51	%		10.09	%
Ratios to average net assets (annualized)
Gross expenses		0.96	%		0.94	%		0.94	%		0.91	%		0.90	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		3.00	%		3.01	%		3.32	%		3.06	%		3.34	%
Supplemental data
Portfolio turnover rate		7	%		12	%		15	%		15	%		48	%
Net assets, end of period (000s omitted)		$36,890			$33,969			$37,067			$41,879			$44,082

¹  Total return calculations do not include any sales charges.

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

16 Wells Fargo North Carolina Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.36			$10.33			$10.08			$10.34			$9.71
Net investment income		0.24			0.24			0.26			0.24			0.26
Net realized and unrealized gains (losses) on investments		0.24			0.03			0.25			(0.26	)		0.63
Total from investment operations		0.48			0.27			0.51			(0.02	)		0.89
Distributions to shareholders from
Net investment income		(0.24	)		(0.24	)		(0.26	)		(0.24	)		(0.26	)
Net asset value, end of period		$10.60			$10.36			$10.33			$10.08			$10.34
Total return1		4.65	%		2.58	%		5.13	%		(0.24	)%		9.27	%
Ratios to average net assets (annualized)
Gross expenses		1.71	%		1.69	%		1.69	%		1.66	%		1.65	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.25	%		2.26	%		2.56	%		2.31	%		2.59	%
Supplemental data
Portfolio turnover rate		7	%		12	%		15	%		15	%		48	%
Net assets, end of period (000s omitted)		$6,121			$4,431			$4,566			$5,164			$5,523

¹  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo North Carolina Tax-Free Fund 17

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.36			$10.33			$10.08			$10.34			$9.71
Net investment income		0.35			0.35			0.36			0.35			0.37
Net realized and unrealized gains (losses) on investments		0.24			0.03			0.26			(0.26	)		0.63
Total from investment operations		0.59			0.38			0.62			0.09			1.00
Distributions to shareholders from
Net investment income		(0.35	)		(0.35	)		(0.37	)		(0.35	)		(0.37	)
Net asset value, end of period		$10.60			$10.36			$10.33			$10.08			$10.34
Total return		5.76	%		3.67	%		6.25	%		0.82	%		10.43	%
Ratios to average net assets (annualized)
Gross expenses		0.63	%		0.61	%		0.61	%		0.58	%		0.57	%
Net expenses		0.54	%		0.54	%		0.54	%		0.54	%		0.54	%
Net investment income		3.32	%		3.32	%		3.61	%		3.37	%		3.65	%
Supplemental data
Portfolio turnover rate		7	%		12	%		15	%		15	%		48	%
Net assets, end of period (000s omitted)		$62,793			$60,844			$72,479			$77,926			$90,439

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

18 Wells Fargo North Carolina Tax-Free Fund Notes to financial statements

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

Security transactions and income recognition

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

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

Distributions to shareholders

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

Notes to financial statements Wells Fargo North Carolina Tax-Free Fund 19

Federal and other taxes

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

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

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of June 30, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

		No expiration
2017	2018	Long-term
$6,610,328	$3,623,438	$21,451

As of June 30, 2016, the Fund had current year deferred post-October capital losses consisting of $34,248 in long-term losses which will be recognized on the first day of the following fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

20 Wells Fargo North Carolina Tax-Free Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	104,469,168	$	0	$	104,469,168
Short-term investments
Investment companies		143,783		0		0		143,783
Total assets	$	143,783	$	104,469,168	$	0	$	104,612,951

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class C		0.16	%
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.85% for Class A shares, 1.60% for Class C shares, and 0.54% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

Notes to financial statements Wells Fargo North Carolina Tax-Free Fund 21

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $3,365 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Class C of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $11,242,248 and $6,639,692, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Tax-exempt income	$	3,164,807	$	3,345,284

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Unrealized gains	Post-October capital losses deferred	Capital loss carryforward
$84,678	$9,496,581	$(34,248)	$(10,255,217)

8. CONCENTRATION RISK

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

9. INDEMNIFICATION

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

22 Wells Fargo North Carolina Tax-Free Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo North Carolina Tax-Free Fund (formerly known as Wells Fargo Advantage North Carolina Tax-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo North Carolina Tax-Free Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

24 Wells Fargo North Carolina Tax-Free Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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 North Carolina Tax-Free Fund 25

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

26 Wells Fargo North Carolina Tax-Free Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo North Carolina Tax-Free Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

Other information (unaudited) Wells Fargo North Carolina Tax-Free Fund 27

The Board noted that the performance of the Fund (Class A) was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was in range of its benchmark, the Barclays Municipal Bond Index, for all periods under review except the one, five and ten-year periods.

The Board also received and considered information regarding the 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 in comparison to the median ratios of funds in class-specific 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 the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

28 Wells Fargo North Carolina Tax-Free Fund Other information (unaudited)

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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 North Carolina Tax-Free Fund 29

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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 Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244407 08-16 A254/AR254 6-16

Annual Report

June 30, 2016

Wells Fargo
Pennsylvania Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	21
Report of independent registered public accounting firm	25
Other information	26
List of abbreviations	32

The views expressed and any forward-looking statements are as of June 30, 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 Pennsylvania Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Pennsylvania Tax-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The state of Illinois approved a six-month stopgap budget, a temporary but

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Bruce R. Johns

Robert J. Miller

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (EKVAX)	12-27-1990		1.85		4.84		4.45		6.62		5.82		4.93		0.90		0.74
Class B (EKVBX)*	2-1-1993		0.83		4.71		4.38		5.83		5.04		4.38		1.65		1.49
Class C (EKVCX)	2-1-1993		4.83		5.04		4.14		5.83		5.04		4.14		1.65		1.49
Institutional Class (EKVYX)	11-24-1997		–		–		–		6.88		6.08		5.19		0.57		0.49
Barclays Municipal Bond Index4	–		–		–		–		7.65		5.33		5.13		–		–
Barclays Pennsylvania Municipal Bond Index5	–		–		–		–		8.03		5.61		5.33		–		–

* 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 4.50%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to Pennsylvania municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁶

¹  Historical performance shown for all classes of the Fund prior to July 12, 2010, is based on the performance of the Fund’s predecessor, Evergreen Pennsylvania Municipal Bond Fund.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

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

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal Bond Index and the Barclays Pennsylvania Municipal 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  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁸  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

6 Wells Fargo Pennsylvania Tax-Free Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed both of its benchmarks, the Barclays Municipal Bond Index and the Barclays Pennsylvania Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n The Fund was positioned to help protect against higher interest rates. The Fund also maintained a defensive credit positioning, moving up in credit quality as credit spreads contracted. We kept the Fund’s duration short compared with both its benchmarks, which detracted from performance as yields fell and the market rallied. Yield-curve positioning also detracted from performance because the Fund was underweight the longest part of the yield curve, which was the best-performing part.

n Investors reached for income in an ultralow-yield environment, which resulted in a strong rally in higher-yielding bonds. The Fund’s overweight to BBB-rated and A-rated bonds as well as a modest allocation to high yield were the largest contributors to performance.

The period was marked by the long-term bonds outperforming.

At the beginning of the period, the U.S. Federal Reserve (Fed) was expected to begin raising its federal funds target rate by late 2015, which made shorter-term maturities less attractive due to a potential backup in rates. The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%. Municipal yields declined with longer-dated maturities outperforming by a significant margin.

Effective maturity distribution as of June 30, 2016⁷

Credit quality as of June 30, 2016⁸

The Fund was positioned in a defensive manner, which detracted from performance.

We kept the Fund’s duration short relative to the benchmark, which detracted from performance as the market rallied. Yield-curve positioning proved to be suboptimal. The Fund was concentrated in the 6- to 17-year part of the curve because we felt it offered the best risk-adjusted returns. While this part of the curve performed well, it was not enough to offset an underweight to the best-performing long end of the yield curve.

The Fund’s credit positioning contributed to performance.

The Fund was overweight A-rated and BBB-rated bonds, which contributed to results. As credit spreads contracted, we moved up in quality because we believed higher-rated bonds represented better relative value than lower-rated bonds. Many state-specific funds have exposure to Puerto Rico debt due to its triple tax exemption; however, we hold no Puerto Rico debt in the Fund. While the credit performed well over the last year, significant challenges remain and additional defaults are highly likely.

Sector allocation also benefited results. The Fund was overweight essential-service revenue bonds, which outperformed, and underweight general obligation (GO) bonds, which underperformed. We saw more relative value in revenue bonds with predictable revenue streams that offered higher income than we did in GO bonds.

While the Fund remained underweight state and local GOs, we selectively added some local GOs that represented relative-value opportunities.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 7

Pennsylvania remained challenged by political gridlock.

The commonwealth of Pennsylvania is rated Aa3/AA-/ AA- by Moody’s, Standard & Poor’s, and Fitch Ratings, respectively. With 12.8 million people, Pennsylvania is the sixth-largest state by population. Its economy is supported by the relative stability of the health care and higher education sectors, primarily in the cities of Philadelphia and Pittsburgh, which account for 40% of state population. Revenue growth was a modest 2.5% in 2016 with a moderate debt structure at 2.3% of personal income and $1,116 per capita. Political negotiations were contentious in 2016, and a budget was not approved until nine months into the fiscal year. The magnitude of structural budget challenges is not insurmountable, in our view; however, political gridlock calls into question lawmakers’ ability to resolve structural imbalances and continues to be a credit risk and the reason for our negative outlook.

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. However, if the U.S. economy does weaken materially, this could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo Pennsylvania Tax-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,035.85	$	3.75		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.18	$	3.72		0.74	%
Class B
Actual	$	1,000.00	$	1,032.95	$	7.53		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.45	$	7.47		1.49	%
Class C
Actual	$	1,000.00	$	1,032.03	$	7.53		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.45	$	7.47		1.49	%
Institutional Class
Actual	$	1,000.00	$	1,037.14	$	2.48		0.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.43	$	2.46		0.49	%

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

Portfolio of investments—June 30, 2016 Wells Fargo Pennsylvania Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 100.67%
Florida: 0.48%
Jacksonville FL Economic Development AMT Metropolitan Parking Solutions Project (Industrial Development Revenue, ACA Insured)		5.50	%		10-1-2030	$	1,000,000	$	1,002,450
Guam: 1.15%
Guam Government Business Privilege Series D (Tax Revenue)		5.00			11-15-2022		1,000,000		1,188,670
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.25			7-1-2025		1,000,000		1,209,220
									2,397,890
Illinois: 0.47%
Chicago IL Board of Education Refunding Bond Series A (GO Revenue)		4.39			3-1-2032		1,000,000		980,410
Pennsylvania: 96.52%
Allegheny County PA Higher Education Building Authority Refunding Bond Duquesne University of The Holy Spirit Series A (Education Revenue)		5.00			3-1-2029		1,135,000		1,401,044
Allegheny County PA Hospital Development Authority Health Center Series B (Health Revenue, National Insured)		6.00			7-1-2027		1,800,000		2,517,696
Allegheny County PA Port Authority Refunding Bond (Tax Revenue)		5.75			3-1-2029		3,000,000		3,590,340
Allegheny County PA Series C-65 (GO Revenue)		5.50			5-1-2024		4,675,000		5,555,303
Blair County PA (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2026		955,000		1,193,970
Bucks County PA IDA Lane Charter School Project Series A (Education Revenue) 144A		4.88			3-15-2027		1,700,000		1,718,751
Bucks County PA Refunding Bond (GO Revenue)		5.00			5-1-2024		310,000		394,484
Bucks County PA Refunding Bond (GO Revenue)		5.00			5-1-2025		425,000		551,064
Bucks County PA Refunding Bond (GO Revenue)		5.00			5-1-2026		500,000		661,815
Bucks County PA Refunding Bond (GO Revenue)		5.00			5-1-2027		525,000		686,112
Capital Region Water Pennsylvania Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			7-15-2024		750,000		929,715
Capital Region Water Pennsylvania Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			7-15-2029		525,000		656,717
Centre County PA Hospital Authority Mount Nittany Medical Center Series A (Health Revenue)		5.00			11-15-2029		800,000		991,864
Centre County PA Hospital Authority Mount Nittany Medical Center Series A (Health Revenue)		5.00			11-15-2030		675,000		833,659
Cheltenham Township PA School District Series A (GO Revenue)		5.00			2-15-2032		1,055,000		1,298,346
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		5.65			12-15-2017		250,000		257,653
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		6.25			12-15-2027		2,370,000		2,493,311
Chester County PA IDA Collegium Charter School Project Series A (Education Revenue)		5.00			10-15-2022		1,695,000		1,812,667
Chester County PA IDA Renaissance Academy Charter School (Education Revenue)		3.75			10-1-2024		1,000,000		1,064,220
Chester County PA IDA University Student Housing LLC Project Series A (Housing Revenue)		5.00			8-1-2030		555,000		623,110
Commonwealth Financing Authority Pennsylvania Series B-1 (Miscellaneous Revenue, AGM Insured)		5.00			6-1-2025		1,500,000		1,866,045
Commonwealth of Pennsylvania Financing Authority Series B (Water & Sewer Revenue)		5.00			6-1-2026		1,000,000		1,194,830
Cumberland County PA Municipal Authority Diakon Lutheran Ministries Project (Health Revenue)		5.00			1-1-2028		2,090,000		2,503,925
Cumberland County PA Municipal Authority Diakon Lutheran Ministries Project (Health Revenue)		5.00			1-1-2036		5,000,000		5,109,500
Cumberland County PA Municipal Authority Dickinson College Project Series HH1 (Education Revenue)		5.00			11-1-2039		1,200,000		1,332,828

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

10 Wells Fargo Pennsylvania Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Cumberland County PA Municipal Authority Refunding Bond Dickson College Project (Education Revenue)		5.00	%		5-1-2028	$	1,170,000	$	1,486,368
Dauphin County PA Authority Pinnacle Health System Project Series A (Health Revenue)		5.00			6-1-2035		1,000,000		1,218,410
Delaware County PA Authority Neumann University Refunding Bond (Miscellaneous Revenue)		5.00			10-1-2031		1,500,000		1,744,710
Delaware County PA IDA Chester Community Charter School Series A (Education Revenue)		5.00			8-15-2020		1,795,000		1,831,062
Delaware County PA Vocational & Technical School Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.25			11-1-2033		1,000,000		1,206,310
Delaware Valley PA Regional Finance Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		4,390,000		5,689,791
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Ambac Insured)		5.60			7-1-2017		2,000,000		2,095,480
East Hempfield Township PA IDA Refunding Bond Willow Valley Communities Project (Health Revenue)		5.00			12-1-2028		450,000		548,991
East Hempfield Township PA IDA Refunding Bond Willow Valley Communities Project (Health Revenue)		5.00			12-1-2029		375,000		456,401
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		180,000		220,219
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		200,000		243,562
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2028		150,000		182,199
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2029		200,000		242,148
General Authority of South Central Pennsylvania Association of Independent Colleges & Universities (Education Revenue)		6.00			11-1-2031		2,500,000		2,975,675
Lehigh County PA General Purpose Authority Water & Sewer CAB Allentown Project (Water & Sewer Revenue) ¤		0.00			12-1-2030		2,000,000		1,311,120
Lycoming County PA Authority Pennsylvania College of Technology (Education Revenue)		5.50			7-1-2026		3,000,000		3,577,080
McKeesport PA Municipal Authority (Water & Sewer Revenue, AGM Insured)		5.50			12-15-2027		2,405,000		2,888,140
Monroe County PA Hospital Authority Pocono Medical Center Series A (Health Revenue)		5.00			1-1-2027		840,000		953,350
Monroe County PA Hospital Authority Pocono Medical Center Series A (Health Revenue)		5.00			1-1-2032		880,000		987,642
Montgomery County PA Higher Education & Health Authority Abington Memorial Hospital Project (Health Revenue)		5.00			6-1-2031		2,000,000		2,316,400
Montgomery County PA Higher Education & Health Authority Refunding Bond Arcadia University (Education Revenue)		5.00			4-1-2030		1,500,000		1,750,425
Montgomery County PA IDA ACTS Retirement-Life Communities Incorporated Obligated Group (Housing Revenue) %%		5.00			11-15-2036		4,200,000		5,047,140
Montgomery County PA IDA Adult Communities Total Services Retirement Community Series B (Health Revenue)		5.00			11-15-2022		6,000,000		6,078,120
Montgomery County PA IDA Jefferson Health System Series A (Health Revenue)		5.00			10-1-2027		1,000,000		1,162,080
Montgomery County PA IDA New Regional Medical Center Project (Health Revenue, FHA Insured)		5.00			8-1-2020		980,000		1,142,543
Moon Area PA School District Series A (GO Revenue)		5.00			11-15-2029		1,445,000		1,763,406
Norristown Area PA School District (GO Revenue)		5.00			9-1-2029		1,250,000		1,571,650
Northampton County PA St. Luke’s Hospital of Bethlehem Series A (Health Revenue)		5.00			8-15-2033		1,500,000		1,732,725
Palmer Township PA Refunding Bond (GO Revenue)		4.00			5-15-2019		320,000		348,045

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

Portfolio of investments—June 30, 2016 Wells Fargo Pennsylvania Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Palmer Township PA Refunding Bond (GO Revenue)		4.00	%		5-15-2020	$	635,000	$	705,891
Palmer Township PA Refunding Bond (GO Revenue)		4.00			5-15-2021		250,000		282,963
Palmer Township PA Refunding Bond (GO Revenue)		4.00			5-15-2025		225,000		264,285
Pennsylvania 1st Series (GO Revenue, AGM Insured)		5.00			9-15-2025		3,000,000		3,812,550
Pennsylvania Financing Authority Pennsylvania Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2022		1,200,000		1,029,276
Pennsylvania Financing Authority Pennsylvania Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2023		3,790,000		3,173,215
Pennsylvania HEFAR La Salle University Series A (Education Revenue)		5.25			5-1-2027		5,250,000		5,472,548
Pennsylvania HEFAR Shippensburg University Project (Education Revenue)		5.00			10-1-2020		1,460,000		1,586,042
Pennsylvania HEFAR Shippensburg University Project (Education Revenue) ##		6.00			10-1-2031		3,000,000		3,367,530
Pennsylvania HEFAR Temple University First Series (Education Revenue)		5.00			4-1-2032		1,000,000		1,181,900
Pennsylvania Housing Finance Agency SFMR Series 108-B (Housing Revenue)		4.50			10-1-2024		1,825,000		1,962,569
Pennsylvania Housing Finance Agency SFMR Series 112 (Housing Revenue)		5.00			4-1-2028		1,760,000		1,881,810
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		1,010,000		1,257,420
Pennsylvania Turnpike Commission (Transportation Revenue)		5.00			6-1-2039		3,000,000		3,591,090
Pennsylvania Turnpike Commission Motor License Series B1 (Transportation Revenue)		5.00			12-1-2040		1,500,000		1,698,285
Pennsylvania Turnpike Commission Series A (Miscellaneous Revenue, AGM Insured)		5.25			7-15-2021		2,000,000		2,388,120
Pennsylvania Turnpike Commission Series A-1 (Transportation Revenue)		5.00			12-1-2046		2,000,000		2,409,500
Pennsylvania Turnpike Commission Series C (Transportation Revenue, AGC Insured)		6.25			6-1-2038		3,500,000		3,874,535
Philadelphia PA Airport Refunding Bond AMT Series A (Airport Revenue)		5.00			6-15-2030		1,500,000		1,810,725
Philadelphia PA Hospital & HEFAR Refunding Bond Temple University Health System Series B (Health Revenue)		6.25			7-1-2023		1,000,000		1,041,370
Philadelphia PA IDA 1st Philadelphia Preparatory Charter School Project Series A (Education Revenue)		7.00			6-15-2033		1,000,000		1,196,710
Philadelphia PA IDA Architecture & Design Charter School Project (Education Revenue)		5.25			3-15-2023		750,000		816,600
Philadelphia PA IDA Charter School Project Series A (Education Revenue)		5.30			9-15-2027		5,150,000		5,280,141
Philadelphia PA IDA Global Leadership Academy Project (Education Revenue)		5.13			11-15-2020		1,220,000		1,298,958
Philadelphia PA IDA Global Leadership Academy Project (Education Revenue)		5.75			11-15-2030		1,000,000		1,085,000
Philadelphia PA IDA Master Charter School (Education Revenue)		5.00			8-1-2020		705,000		750,550
Philadelphia PA IDA Refunding Bond Cultural & Commercial Corridors Program Series A (Miscellaneous Revenue)		5.00			12-1-2028		2,500,000		3,057,425
Philadelphia PA IDA Tacony Academy Charter School Project (Education Revenue)		6.88			6-15-2033		1,000,000		1,151,310
Philadelphia PA IDA Temple University 1st Series 2015 (Education Revenue)		5.00			4-1-2033		2,500,000		3,054,475
Philadelphia PA IDA Temple University 1st Series 2016 (Education Revenue)		5.00			4-1-2029		1,000,000		1,241,580
Philadelphia PA IDA West Philadelphia Achievement Charter Elementary School Project (Education Revenue)		7.50			5-1-2031		1,285,000		1,409,247
Philadelphia PA School District Refunding Bond Series A (GO Revenue, AGM/FGIC Insured)		5.00			6-1-2024		1,425,000		1,690,919
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		3,000,000		3,209,250
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2021		1,395,000		1,570,993
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2033		1,500,000		1,825,620
Pittsburgh & Allegheny Counties PA Sports & Exhibition Authority (Tax Revenue, AGM Insured)		5.00			2-1-2031		3,000,000		3,424,320
Pittsburgh PA (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2030		500,000		621,035
Reading PA School District Notes Series A (GO Revenue, AGM Insured)		5.00			2-1-2033		1,500,000		1,772,865
Reading PA School District Refunding Bond (GO Revenue)		3.13			4-1-2024		1,000,000		1,007,300
Southeastern Pennsylvania Transportation Authority (Miscellaneous Revenue)		5.00			6-1-2028		4,000,000		4,654,440
State Public School Building Authority Pennsylvania Chester Upland School Project Series C (Miscellaneous Revenue, AGM Insured)		5.00			9-15-2026		875,000		1,025,640

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

12 Wells Fargo Pennsylvania Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
State Public School Building Authority Pennsylvania Northampton County Area Community College Project (Education Revenue)		5.50	%		3-1-2031	$	5,000,000	$	5,869,400
State Public School Building Authority Pennsylvania Northampton County Area Community College Project Series A (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			6-15-2027		1,610,000		1,877,244
State Public School Building Authority Philadelphia Community College Project Series A (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			6-15-2027		1,500,000		1,832,730
University Area Joint Authority Pennsylvania Refunding Bond (Water & Sewer Revenue) ±		0.79			11-1-2028		1,500,000		1,497,675
Wilkes-Barre PA Finance Authority University of Scranton (Education Revenue)		5.00			11-1-2020		1,005,000		1,159,864
Wilkes-Barre PA Finance Authority Wilkes University Project (Education Revenue)		5.00			3-1-2027		1,550,000		1,595,338
Wilkes-Barre PA FInance Authority Wilkes University Project (Education Revenue)		5.00			3-1-2027		1,050,000		1,074,486
York County PA Series B (GO Revenue)		5.00			6-1-2033		4,000,000		4,971,080
York PA City School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2019		895,000		965,338
York PA City School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2020		970,000		1,069,105
York PA City School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2021		1,000,000		1,121,650
									200,980,073
Virgin Islands: 2.05%
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		4.00			9-1-2017		600,000		619,608
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		5.00			9-1-2018		750,000		809,828
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		5.00			9-1-2019		500,000		555,710
Virgin Islands PFA Matching Fund Loan Note Senior Lien (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2029		2,000,000		2,276,681
									4,261,827
Total Municipal Obligations (Cost $194,055,880)									209,622,650
	Yield					Shares
Short-Term Investments: 0.82%
Investment Companies: 0.82%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.30					1,714,696		1,714,696
Total Short-Term Investments (Cost $1,714,696)									1,714,696

Total investments in securities (Cost $195,770,576) *	101.49	%		211,337,346
Other assets and liabilities, net	(1.49	)		(3,109,961	)
Total net assets	100.00	%	$	208,227,385

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

Portfolio of investments—June 30, 2016 Wells Fargo Pennsylvania Tax-Free Fund 13

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

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

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

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

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

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

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

* Cost for federal income tax purposes is $195,825,003 and unrealized gains (losses) consists of:

Gross unrealized gains	$	15,588,685
Gross unrealized losses		(76,342	)
Net unrealized gains	$	15,512,343

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

14 Wells Fargo Pennsylvania Tax-Free Fund Statement of assets and liabilities—June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $194,055,880)	$	209,622,650
In affiliated securities, at value (cost $1,714,696)		1,714,696
Total investments, at value (cost $195,770,576)		211,337,346
Receivable for Fund shares sold		300,868
Receivable for interest		2,132,552
Prepaid expenses and other assets		30,937
Total assets		213,801,703
Liabilities
Dividends payable		291,947
Payable for investments purchased		5,047,140
Payable for Fund shares redeemed		103,206
Management fee payable		50,126
Distribution fees payable		12,011
Administration fees payable		18,309
Accrued expenses and other liabilities		51,579
Total liabilities		5,574,318
Total net assets	$	208,227,385
NET ASSETS CONSIST OF
Paid-in capital	$	198,836,747
Overdistributed net investment income		(245,938	)
Accumulated net realized losses on investments		(5,930,194	)
Net unrealized gains on investments		15,566,770
Total net assets	$	208,227,385
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	55,352,413
Shares outstanding – Class A1		4,562,454
Net asset value per share – Class A		$12.13
Maximum offering price per share – Class A2		$12.70
Net assets – Class B	$	538,409
Shares outstanding – Class B1		44,543
Net asset value per share – Class B		$12.09
Net assets – Class C	$	19,492,830
Shares outstanding – Class C1		1,609,662
Net asset value per share – Class C		$12.11
Net assets – Institutional Class	$	132,843,733
Shares outstanding – Institutional Class1		10,949,753
Net asset value per share – Institutional Class		$12.13

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended June 30, 2016 Wells Fargo Pennsylvania Tax-Free Fund 15

Investment income
Interest	$	7,396,729
Income from affiliated securities		4,073
Total investment income		7,400,802
Expenses
Management fee		746,918
Administration fees
Class A		81,008
Class B		942
Class C		24,073
Institutional Class		96,372
Shareholder servicing fees
Class A		126,575
Class B		1,473
Class C		37,614
Distribution fees
Class B		4,418
Class C		112,840
Custody and accounting fees		14,012
Professional fees		46,266
Registration fees		66,419
Shareholder report expenses		13,611
Trustees’ fees and expenses		23,984
Other fees and expenses		4,487
Total expenses		1,401,012
Less: Fee waivers and/or expense reimbursements		(203,120	)
Net expenses		1,197,892
Net investment income		6,202,910
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		317,819
Net change in unrealized gains (losses) on investments		5,818,175
Net realized and unrealized gains (losses) on investments		6,135,994
Net increase in net assets resulting from operations	$	12,338,904

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

16 Wells Fargo Pennsylvania Tax-Free Fund Statement of changes in net assets

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	6,202,910					$	6,375,933
Net realized gains on investments					317,819						966,812
Net change in unrealized gains (losses) on investments					5,818,175						627,422
Net increase in net assets resulting from operations					12,338,904						7,970,167
Distributions to shareholders from
Net investment income
Class A					(1,633,459	)					(1,606,030	)
Class B					(14,671	)					(20,931	)
Class C					(370,055	)					(339,975	)
Institutional Class					(4,184,725	)					(4,344,447	)
Total distributions to shareholders					(6,202,910	)					(6,311,383	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		907,836			10,807,655			605,396			7,163,115
Class B		504			5,931			94			1,089
Class C		578,544			6,894,873			299,119			3,526,413
Institutional Class		3,425,123			40,716,691			1,203,338			14,230,622
					58,425,150						24,921,239
Reinvestment of distributions
Class A		126,426			1,505,841			120,989			1,431,526
Class B		1,211			14,352			1,704			20,089
Class C		28,590			340,015			25,787			304,625
Institutional Class		79,004			940,589			81,893			968,892
					2,800,797						2,725,132
Payment for shares redeemed
Class A		(499,387	)		(5,949,813	)		(519,400	)		(6,135,536	)
Class B		(11,946	)		(141,573	)		(21,585	)		(254,079	)
Class C		(111,231	)		(1,317,623	)		(173,825	)		(2,051,259	)
Institutional Class		(1,641,421	)		(19,520,308	)		(2,438,641	)		(28,902,651	)
					(26,929,317	)					(37,343,525	)
Net increase (decrease) in net assets resulting from capital share transactions					34,296,630						(9,697,154	)
Total increase (decrease) in net assets					40,432,624						(8,038,370	)
Net assets
Beginning of period					167,794,761						175,833,131
End of period				$	208,227,385					$	167,794,761
Overdistributed net investment income				$	(245,938	)				$	(245,938	)

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

Financial highlights Wells Fargo Pennsylvania Tax-Free Fund 17

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.75			$11.65			$11.36			$11.65			$10.93
Net investment income		0.38			0.42			0.43			0.42			0.44
Net realized and unrealized gains (losses) on investments		0.38			0.09			0.29			(0.29	)		0.72
Total from investment operations		0.76			0.51			0.72			0.13			1.16
Distributions to shareholders from
Net investment income		(0.38	)		(0.41	)		(0.43	)		(0.42	)		(0.44	)
Net asset value, end of period		$12.13			$11.75			$11.65			$11.36			$11.65
Total return1		6.62	%		4.44	%		6.45	%		1.02	%		10.81	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.90	%		0.91	%2		0.88	%2		0.88	%2
Net expenses		0.74	%		0.74	%		0.74	%2		0.75	%2		0.74	%2
Net investment income		3.23	%		3.54	%		3.75	%		3.55	%		3.90	%
Supplemental data
Portfolio turnover rate		13	%		15	%		15	%		14	%		21	%
Net assets, end of period (000s omitted)		$55,352			$47,323			$44,500			$43,167			$45,178

¹  Total return calculations do not include any sales charges.

²  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%

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

18 Wells Fargo Pennsylvania Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS B	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.71			$11.60			$11.32			$11.61			$10.89
Net investment income		0.30	1		0.33	1		0.34	1		0.33	1		0.36	1
Net realized and unrealized gains (losses) on investments		0.37			0.10			0.28			(0.29	)		0.72
Total from investment operations		0.67			0.43			0.62			0.04			1.08
Distributions to shareholders from
Net investment income		(0.29	)		(0.32	)		(0.34	)		(0.33	)		(0.36	)
Net asset value, end of period		$12.09			$11.71			$11.60			$11.32			$11.61
Total return2		5.83	%		3.75	%		5.58	%		0.26	%		10.01	%
Ratios to average net assets (annualized)
Gross expenses		1.65	%		1.65	%		1.66	%3		1.63	%3		1.62	%3
Net expenses		1.49	%		1.49	%		1.49	%3		1.50	%3		1.49	%3
Net investment income		2.49	%		2.78	%		3.00	%		2.80	%		3.15	%
Supplemental data
Portfolio turnover rate		13	%		15	%		15	%		14	%		21	%
Net assets, end of period (000s omitted)		$538			$641			$865			$1,377			$2,264

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%

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

Financial highlights Wells Fargo Pennsylvania Tax-Free Fund 19

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.73			$11.63			$11.34			$11.63			$10.91
Net investment income		0.29	1		0.33			0.34			0.33			0.36
Net realized and unrealized gains (losses) on investments		0.38			0.09			0.29			(0.29	)		0.72
Total from investment operations		0.67			0.42			0.63			0.04			1.08
Distributions to shareholders from
Net investment income		(0.29	)		(0.32	)		(0.34	)		(0.33	)		(0.36	)
Net asset value, end of period		$12.11			$11.73			$11.63			$11.34			$11.63
Total return2		5.83	%		3.66	%		5.67	%		0.27	%		9.99	%
Ratios to average net assets (annualized)
Gross expenses		1.65	%		1.65	%		1.66	%3		1.63	%3		1.63	%3
Net expenses		1.49	%		1.49	%		1.49	%3		1.50	%3		1.49	%3
Net investment income		2.46	%		2.78	%		3.00	%		2.79	%		3.15	%
Supplemental data
Portfolio turnover rate		13	%		15	%		15	%		14	%		21	%
Net assets, end of period (000s omitted)		$19,493			$13,062			$11,192			$9,798			$9,815

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%

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

20 Wells Fargo Pennsylvania Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.75			$11.65			$11.36			$11.65			$10.93
Net investment income		0.41	1		0.44			0.45			0.45	1		0.47
Net realized and unrealized gains (losses) on investments		0.38			0.10			0.29			(0.29	)		0.72
Total from investment operations		0.79			0.54			0.74			0.16			1.19
Distributions to shareholders from
Net investment income		(0.41	)		(0.44	)		(0.45	)		(0.45	)		(0.47	)
Net asset value, end of period		$12.13			$11.75			$11.65			$11.36			$11.65
Total return		6.88	%		4.70	%		6.72	%		1.28	%		11.08	%
Ratios to average net assets (annualized)
Gross expenses		0.57	%		0.57	%		0.58	%2		0.55	%2		0.55	%2
Net expenses		0.49	%		0.49	%		0.49	%2		0.50	%2		0.49	%2
Net investment income		3.47	%		3.78	%		4.00	%		3.79	%		4.15	%
Supplemental data
Portfolio turnover rate		13	%		15	%		15	%		14	%		21	%
Net assets, end of period (000s omitted)		$132,844			$106,769			$119,276			$148,684			$171,861

¹  Calculated based upon average shares outstanding

²  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Year ended June 30, 2014	0.00	%
Year ended June 30, 2013	0.01	%
Year ended June 30, 2012	0.00	%

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

Notes to financial statements Wells Fargo Pennsylvania Tax-Free Fund 21

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Security transactions and income recognition

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

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to expiration of capital loss carryforwards. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net realized losses on investments
(4,125,739)	$4,125,739

As of June 30, 2016, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $5,875,768 expiring in 2017.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements Wells Fargo Pennsylvania Tax-Free Fund 23

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	209,622,650	$	0	$	209,622,650
Short-term investments
Investment companies		1,714,696		0		0		1,714,696
Total assets	$	1,714,696	$	209,622,650	$	0	$	211,337,346

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class B, Class C		0.16	%
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.74% for Class A shares, 1.49% for Class B shares, 1.49% for Class C shares, and 0.49% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fees

The Trust has adopted a distribution plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

24 Wells Fargo Pennsylvania Tax-Free Fund Notes to financial statements

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 June 30, 2016, Funds Distributor received $18,749 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, and Class C of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $73,067,034 and $24,116,368, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30,
	2016		2015
Ordinary income	$	0	$	56,319
Tax-exempt income		6,202,910		6,255,064

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Unrealized gains	Capital loss carryforward
$62,036	$15,512,343	$(5,875,768)

8. CONCENTRATION RISK

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

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Pennsylvania Tax-Free Fund 25

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Pennsylvania Tax-Free Fund (formerly known as Wells Fargo Advantage Pennsylvania Tax-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Pennsylvania Tax-Free Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

26 Wells Fargo Pennsylvania Tax-Free Fund Other information (unaudited)

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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

28 Wells Fargo Pennsylvania Tax-Free Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

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

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Pennsylvania Tax-Free Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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

30 Wells Fargo Pennsylvania Tax-Free Fund Other information (unaudited)

Universe. The Board noted that the performance of the Fund (Class A) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than or in range of its benchmark, the Barclays Municipal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

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

Economies of scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

32 Wells Fargo Pennsylvania Tax-Free Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244408 08-16 A255/AR255 6-16

Annual Report

June 30, 2016

Wells Fargo
Short-Term Municipal Bond Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	35
Statement of operations	36
Statement of changes in net assets	37
Financial highlights	38
Notes to financial statements	42
Report of independent registered public accounting firm	48
Other information	49
List of abbreviations	55

The views expressed and any forward-looking statements are as of June 30, 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 Short-Term Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Short-Term Municipal Bond Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The state of Illinois approved a six-month stopgap budget, a temporary but

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

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

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

meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

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

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

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

Investment objective

The Fund seeks current income exempt from federal income tax consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Lyle J. Fitterer, CFA^®, CPA

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (WSMAX)	7-18-2008		(0.54	)		1.02		2.48		1.49		1.43		2.68		0.75		0.63
Class C (WSSCX)	1-31-2003		(0.27	)		0.67		1.89		0.73		0.67		1.89		1.50		1.38
Administrator Class (WSTMX)	7-30-2010		–			–		–		1.42		1.41		2.65		0.69		0.60
Institutional Class (WSBIX)	3-31-2008		–			–		–		1.71		1.63		2.86		0.42		0.40
Barclays 1-3 Year Composite Municipal Bond Index4	–		–			–		–		1.65		1.24		2.59		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 2.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to high-yield securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

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

Growth of $10,000 investment as of June 30, 2016⁵

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares (except during those periods in which expenses of Class A shares would have been higher than those of the former Investor Class shares). If these expenses had not been included, returns would be higher. Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares, adjusted to reflect the higher expenses applicable to Administrator Class shares. Historical performance shown for Institutional Class shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares. If these expenses had not been included, returns would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays 1-3 Year Composite Municipal Bond Index is a blended index weighted 50% in the Barclays 1-Year Municipal Bond Index and 50% in the Barclays 3-Year Municipal Bond Index. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Barclays 1-3 Year Composite Municipal 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 2.00%.

⁶  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁷  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

6 Wells Fargo Short-Term Municipal Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays 1–3 Year Composite Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n Security selection within industrial development revenue and health care detracted from performance. On the flip side, exposure to Illinois and New Jersey-related debt added to performance as investors looked for yield.

n Because we expected interest rates would gradually increase, we kept the Fund’s duration short throughout the year, which detracted from performance. We positioned the Fund along the steeper part of the front end of the yield curve while keeping a large liquidity position to redeploy in a higher-interest-rate environment, and this yield-curve positioning contributed to results.

Effective maturity distribution as of June 30, 2016⁶

Ultralow yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential backup in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. We, therefore, extended the Fund’s duration in anticipation of lower yields and also positioned the Fund for a flatter yield curve. The Fund’s yield-curve positioning, which was underweight maturities between one and four years and overweight the five- to seven-year area, helped results. Longer-term

maturities outperformed shorter-term maturities by a wide margin because the municipal curve flattened 100 basis points (bps; 100 bps equals 1.00%) between one-and seven-year maturities.

The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%. We reduced duration as the market rallied. The Fund’s short duration hurt results during 2016 because yields continued to decline

Credit quality as of June 30, 2016⁷

Credit-quality allocation helped results.

The Fund’s overweight to A-rated and BBB-rated debt and its out-of-benchmark holdings in high-yield and nonrated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin during the period. In addition, its overweight to BBB-rated bonds with relatively short maturities allowed it to maintain a competitive yield without taking on significant duration risk. The Fund’s holdings within the local general obligation, special tax, education, and transportation sectors performed well. On the other hand, issue selection within the health care and industrial development revenue sectors detracted from results, largely because of their shorter duration profile. We have

been cautious within the health care sector for quite

some time because we believe credit fundamentals have peaked. Although taxable corporate bond spreads increased dramatically during late 2015 and early 2016 as global fears spooked the market, spreads for corporate-backed municipal debt declined. We sold into this rally, but continued new-money flows into municipal bonds funds caused these spreads to move even tighter. Finally, sector allocation also benefited performance, particularly because the Fund was underweight prerefunded bonds.

Please see footnotes on page 5.

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

Political noise and a lack of a state budget caused volatility within Illinois, but the state’s bonds had some of the highest returns. We have been overweight Illinois bonds for several years because we feel that the above-market income is compensating investors for the credit issues. We continue to believe that the state’s economic backdrop and ability to raise revenues, combined with Illinois Governor Bruce Rauner’s focus on cutting expenses, should ultimately lead to tighter spreads. New Jersey bonds also performed well as spreads tightened; however, issue selection within the state detracted from results, primarily due to our exposure to longer-dated floating-rate notes that repriced to reflect a protracted rate-hike cycle. During the past 12 months, Puerto Rico had several widely anticipated defaults on its debt. The lack of clarity surrounding the federal government’s restructuring legislation for Puerto Rico debt, the lack of financial statements, and a declining economy make it hard to develop an investment opinion for the territory. As a result, we had minimal exposure to Puerto Rico bonds.

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. However, if the U.S. economy does weaken materially, this could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo Short-Term Municipal Bond Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,007.86	$	3.15		0.63	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.73	$	3.17		0.63	%
Class C
Actual	$	1,000.00	$	1,004.11	$	6.88		1.38	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.00	$	6.92		1.38	%
Administrator Class
Actual	$	1,000.00	$	1,008.01	$	3.00		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,009.01	$	2.00		0.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.87	$	2.01		0.40	%

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 97.20%
Alabama: 1.05%
Alabama 21st Century Authority Series A (Tobacco Revenue)		5.00	%		6-1-2017	$	3,000,000	$	3,114,240
Board of Education of Shelby County AL Public School Warrants Series 2016 (Tax Revenue)		4.00			2-1-2020		410,000		451,689
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.88			11-15-2038		14,615,000		14,619,531
Jefferson County AL Warrants Series C (GO Revenue)		4.90			4-1-2021		26,520,000		28,305,592
Jefferson County AL Warrants Series D (Water & Sewer Revenue)		5.00			10-1-2018		1,890,000		2,027,876
Mobile County AL Industrial Development Board PCR Alabama Power Company Barry Plant (Industrial Development Revenue) ±		1.63			7-15-2034		12,500,000		12,658,250
									61,177,178
Alaska: 0.07%
Alaska IDA Snettisham Hydroelectric Project (Utilities Revenue)		5.00			1-1-2021		1,400,000		1,589,686
Alaska International Airport Refunding Bond Series D (Airport Revenue, National Insured)		5.00			10-1-2018		2,235,000		2,261,909
									3,851,595
Arizona: 2.13%
Arizona Board of Regents Certificate of Participation Series A (Education Revenue)		5.00			6-1-2021		3,000,000		3,544,530
Arizona Health Facilities Authority Catholic West Series B (Health Revenue, Barclays Bank LOC) ø		0.42			7-1-2035		22,000,000		22,000,000
Cochise County AZ Community College District of Cochise County Series 2016A (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2020		405,000		464,628
Cochise County AZ Community College District of Cochise County Series 2016A (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2021		425,000		498,228
Gilbert AZ Water Reserve Municipal Property Corporation Sub Lien (Water & Sewer Revenue)		4.75			10-1-2032		1,105,000		1,116,978
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		3.00			7-1-2017		3,500,000		3,577,455
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2017		32,500,000		33,867,275
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2018		6,100,000		6,595,320
Maricopa County AZ PCR Series A (Utilities Revenue) ±		2.40			6-1-2043		9,300,000		9,556,494
Maricopa County AZ PCR Series B (Utilities Revenue)		5.20			6-1-2043		2,500,000		2,798,100
Maricopa County AZ USD Refunding Bond Series 2016 (GO Revenue, Build America Mutual Assurance Company Insured)		2.00			7-1-2019		2,265,000		2,336,597
Navajo Nation Arizona Refunding Bond Series A (Miscellaneous Revenue) 144A		2.90			12-1-2020		14,205,000		14,488,958
Navajo Tribal Arizona Utility Authority (Miscellaneous Revenue, Municipal Government Guaranty Insured)		4.00			1-1-2021		13,490,000		13,884,583
Scottsdale AZ IDA Scottsdale Healthcare Series D (Health Revenue)		5.00			9-1-2017		2,000,000		2,081,280
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2016		1,280,000		1,281,152
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2017		1,365,000		1,388,737
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2018		1,245,000		1,278,179
Yavapai County AZ IDA Waste Management Incorporated Project Series A2 (Resource Recovery Revenue) ±		1.60			3-1-2028		2,500,000		2,519,525
									123,278,019

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

10 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California: 5.81%
Alameda County CA Corridor Transportation Authority CAB Series A (Transportation Revenue, Ambac Insured) ¤		0.00	%		10-1-2016	$	8,845,000	$	8,831,202
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series B (Transportation Revenue) ±		1.50			4-1-2047		11,900,000		12,019,952
California (GO Revenue) ±		4.00			12-1-2027		55,200,000		56,931,072
California Golden State Tobacco Securitization Series 2954 (Tobacco Revenue, Morgan Stanley Bank LIQ) ø144A		0.96			6-1-2047		31,160,000		31,160,000
California HFA Home Mortgage Series G (Housing Revenue)		4.95			8-1-2023		9,000,000		9,176,220
California Infrastructure & Economic Development Bank Museum Art Project Series A (Miscellaneous Revenue) ±		2.06			12-1-2037		12,000,000		12,225,720
California Infrastructure & Economic Development Bank Series A (Education Revenue) ±		1.41			8-1-2037		25,460,000		25,496,917
California PCFA Solid Waste Disposal Waste Management Project Series A (Resource Recovery Revenue) ±		1.65			7-1-2031		6,000,000		6,004,500
California Refunding Bond Series B (GO Revenue) ±		1.16			5-1-2017		7,000,000		7,010,570
California Refunding Bond Series B (GO Revenue) ±		1.31			5-1-2018		6,000,000		6,034,320
California Series D (GO Revenue) ±		1.03			12-1-2028		27,000,000		27,005,400
California Series E (GO Revenue) ±		1.16			12-1-2029		18,000,000		18,007,200
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.51			7-1-2041		15,050,000		15,050,000
California Statewide CDA Health Facilities Catholic Series E (Health Revenue, AGM Insured) ±(m)		0.55			7-1-2040		5,625,000		5,625,000
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.52			7-1-2040		4,300,000		4,300,000
Chula Vista CA Elementary School Building Projects Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2017		1,765,000		1,854,009
Chula Vista CA Elementary School Building Projects Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2018		1,985,000		2,166,171
Chula Vista CA Industrial Development Revenue San Diego Gas & Electric Company Series A (Utilities Revenue)		1.65			7-1-2018		5,570,000		5,575,236
Commerce CA RDA CAB Project #1 (Tax Revenue) ¤		0.00			8-1-2021		5,050,000		3,962,533
Compton CA Unified School District CAB Election of 2002 Series D (GO Revenue, Ambac Insured) ¤		0.00			6-1-2017		3,070,000		3,035,708
El Monte CA Union High School District (GO Revenue)		5.00			6-1-2018		5,840,000		6,319,698
Foothill-Eastern CA Transportation Corridor Agency Series B1 (Transportation Revenue) ±		5.00			1-15-2053		24,435,000		25,370,616
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2018		1,000,000		1,078,120
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2019		1,000,000		1,111,020
Oakland CA Unified School District Alameda County Refunding Bond (GO Revenue, National Insured)		5.00			8-1-2016		3,030,000		3,041,575
Palomar CA Pomerado Health CAB Election of 2004 Series A (GO Revenue, National Insured) ¤		0.00			8-1-2019		2,215,000		2,124,473
Palomar CA Pomerado Health Care District Certificate of Participation Series C (Health Revenue, AGM Insured) ±(m)		1.36			11-1-2036		14,225,000		14,225,000
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.00			12-1-2016		1,730,000		1,754,774
San Ysidro CA School District (GO Revenue, AGM Insured) ¤		0.00			8-1-2047		3,610,000		477,639
South San Francisco CA Unified School District BAN Series D (GO Revenue) ¤		0.00			5-15-2017		20,000,000		19,879,600
									336,854,245

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Colorado: 0.62%
Aurora CO E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00	%		9-1-2018	$	2,000,000	$	1,938,280
Aurora CO E-470 Public Highway Authority Senior Series CD-2 (Transportation Revenue, National Insured) ±		2.14			9-1-2039		15,325,000		15,357,796
Colorado HCFR Catholic Health Initiatives Series C2 (Health Revenue) ±		1.56			10-1-2039		8,500,000		8,451,975
Colorado HCFR Catholic Health Initiatives Series C4 (Health Revenue) ±		1.56			10-1-2039		3,495,000		3,474,624
Colorado Housing & Finance Authority Traditions Englewood Project (Housing Revenue)		0.90			12-1-2017		7,000,000		7,010,850
									36,233,525
Connecticut: 3.51%
Connecticut Economic Recovery Notes Series A (Miscellaneous Revenue) ±		0.74			1-1-2018		9,810,000		9,781,845
Connecticut HEFA Series 2010A-4 (Education Revenue) ±		1.20			7-1-2049		33,190,000		33,467,137
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		34,000,000		34,087,380
Connecticut HEFAR Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2016		2,380,000		2,380,286
Connecticut HEFAR Hartford Healthcare Series G (Health Revenue) ±		1.26			7-1-2049		10,000,000		9,979,500
Connecticut HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		12,515,000		12,664,304
Connecticut HEFAR Yale University Issue Series A-1 (Education Revenue) ±%%		1.00			7-1-2042		600,000		601,770
Connecticut Securities Industry and Financial Market Association Index Refunding Bond (Miscellaneous Revenue) ±		1.49			5-15-2019		3,500,000		3,521,945
Connecticut Series A (Miscellaneous Revenue) ±		0.96			3-1-2019		3,200,000		3,189,600
Connecticut Series A (Miscellaneous Revenue) ±		1.04			3-1-2020		8,285,000		8,221,288
Connecticut Series A (Miscellaneous Revenue) ±		1.09			4-15-2017		4,700,000		4,700,940
Connecticut Series A (Miscellaneous Revenue) ±		1.16			5-15-2017		17,000,000		17,041,650
Connecticut Series A (Miscellaneous Revenue) ±		1.31			5-15-2018		17,740,000		17,778,496
Connecticut Series A (Miscellaneous Revenue) ±		1.51			4-15-2019		5,600,000		5,633,264
Connecticut Series A (Miscellaneous Revenue) ±		1.76			3-1-2019		21,500,000		21,500,000
Connecticut Series D (GO Revenue) ±		0.93			9-15-2017		2,100,000		2,101,743
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2017		1,500,000		1,562,070
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2018		1,000,000		1,077,070
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2018		650,000		703,183
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2019		700,000		780,640
Hartford CT Series B (GO Revenue, AGM Insured)		5.00			10-1-2018		1,000,000		1,097,230
Mohegan Tribe of Indians of Connecticut (Miscellaneous Revenue)		2.65			12-15-2017		8,230,000		8,340,200
New Haven CT Series A (GO Revenue, AGM Insured)		3.00			11-1-2019		3,405,000		3,602,081
									203,813,622
Delaware: 0.04%
Delaware HCFR Nanticoke Memorial Hospital Project (Health Revenue)		4.00			7-1-2016		1,045,000		1,045,073
Delaware HCFR Nanticoke Memorial Hospital Project (Health Revenue)		5.00			7-1-2017		1,225,000		1,261,052
									2,306,125
District of Columbia: 0.22%
District of Columbia Income Tax Secured Refunding Bond Series E (Tax Revenue) ±		1.14			12-1-2017		13,000,000		12,931,880
Florida: 2.18%
Brevard County FL HCFR Refunding Bond Health First Incorporated Series A (Health Revenue)		5.00			4-1-2018		1,140,000		1,214,795
Brevard County FL Space Coast Infrastructure Agency I-95 Project (Industrial Development Revenue)		4.00			6-15-2018		5,695,000		6,013,180

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

12 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Escambia County FL Gulf Power Company Project (Resource Recovery Revenue) ±		1.40	%		4-1-2039	$	9,500,000	$	9,558,520
Florida Mid-Bay Bridge Authority Series C (Transportation Revenue)		5.00			10-1-2019		675,000		748,460
Florida Mid-Bay Bridge Authority Series C (Transportation Revenue)		5.00			10-1-2020		785,000		889,955
Jacksonville FL Sales Tax Refunding Bond Better Jacksonville (Tax Revenue)		5.00			10-1-2017		2,000,000		2,107,840
Lee County FL IDA Alliance Community Project (Health Revenue)		5.00			11-15-2016		1,000,000		1,014,210
Miami Beach FL Health Facilities Refunding Bond Mount Sinai Medical Center (Health Revenue)		3.00			11-15-2016		1,995,000		2,008,466
Miami Beach FL Health Facilities Refunding Bond Mount Sinai Medical Center (Health Revenue)		4.00			11-15-2017		1,750,000		1,809,483
Miami FL Refunding Bond Homeland Defense (GO Revenue, National Insured)		5.00			1-1-2017		5,000,000		5,098,500
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) ±144A		0.91			10-13-2023		6,670,000		6,670,000
Miami-Dade County FL Miami International Airport Series C (Airport Revenue, AGM Insured)		5.25			10-1-2021		16,000,000		16,838,560
Miami-Dade County FL School Board Foundation Incorporated (Miscellaneous Revenue, Dexia Credit Local LOC, National Insured, Dexia Credit Local LIQ) ø144A		0.78			5-1-2031		15,875,000		15,875,000
Miami-Dade County FL Seaport Department Series A (Airport Revenue, Bank of Tokyo-Mitsubishi LOC) ±		0.42			10-1-2050		10,000,000		10,000,000
Orange County FL School Board Certificate of Participation Series A (Miscellaneous Revenue)		5.00			8-1-2016		600,000		602,352
Palm Beach County FL HCFR ACTS Retirement Life Series 2016 (Health Revenue) %%		5.00			11-15-2021		3,265,000		3,846,823
Palm Beach County FL HCFR ACTS Retirement Life Series B (Health Revenue)		5.00			11-15-2020		6,300,000		6,404,769
Palm Beach County FL HCFR Jupiter Medical Center Project Series A (Health Revenue)		4.00			11-1-2018		1,235,000		1,298,985
Sarasota County FL Educational Facilities School Arts & Sciences Project (Education Revenue)		5.20			7-1-2017		170,000		172,870
Space Coast Infrastructure Agency I-95 Brevard County FL Project (Industrial Development Revenue)		4.00			6-15-2017		14,865,000		15,303,518
St. Johns County FL School Board Refunding Bond Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2020		2,010,000		2,317,852
St. Johns County FL School Board Refunding Bond Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2021		1,670,000		1,974,575
Sunshine Florida Governmental Funding Commission Miami-Dade County Project Series A (Miscellaneous Revenue)		5.00			9-1-2016		3,675,000		3,702,893
Volusia County FL School Board (Tax Revenue, AGM Insured)		5.00			10-1-2016		10,000,000		10,091,700
Volusia County FL School Board (Tax Revenue, National Insured)		5.00			10-1-2016		1,000,000		1,005,890
									126,569,196
Georgia: 2.39%
Atlanta GA Water & Wastewater Project Series A-1 (Water & Sewer Revenue) ±		1.80			11-1-2038		21,500,000		21,838,195
Bartow County GA Development Authority Georgia Power Company Bowen Project (Utilities Revenue) ±		2.70			8-1-2043		20,000,000		20,716,600
Burke County GA Development Authority Oglethorpe Power Corporation Vogtle Project Series A (Utilities Revenue) ±		2.40			1-1-2040		17,825,000		18,495,577
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		11,000,000		11,457,050
Gainesville & Hall County GA Hospital Authority Health System Project Series B (Health Revenue) ±		1.34			8-15-2035		23,000,000		22,971,710
Georgia Private Colleges & Universities Authority Mercer University Series B (Education Revenue)		4.00			10-1-2017		3,285,000		3,405,034

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Georgia (continued)
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00	%		3-15-2017	$	8,015,000	$	8,215,135
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2018		4,815,000		5,093,355
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2021		2,600,000		2,960,048
Milledgeville & Baldwin County GA Development Authority College & State University (Education Revenue, Ambac Insured) ±		0.92			10-1-2016		1,010,000		1,009,010
Monroe County GA PCR Georgia Power Company Plant Scherer Project (Industrial Development Revenue) ±		2.35			10-1-2048		16,000,000		16,664,800
Savannah GA MFHR Wessels Blackshear Home Project (Housing Revenue) ±		1.15			7-1-2019		5,550,000		5,546,726
									138,373,240
Guam: 0.09%
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2019		450,000		506,768
Guam International Airport Authority Series B (Airport Revenue)		5.00			10-1-2018		675,000		739,037
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2018		3,560,000		3,838,214
									5,084,019
Illinois: 10.34%
Chicago IL Board of Education Dedicated Series C2 (GO Revenue) ±		1.49			3-1-2032		33,000,000		31,770,750
Chicago IL Board of Education Dedicated Series D (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2018		1,400,000		1,477,588
Chicago IL Board of Education Lease Certificates Refunding Bond Series A (Miscellaneous Revenue, National Insured)		6.00			1-1-2020		11,990,000		12,721,630
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2019		895,000		960,272
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2020		765,000		775,618
Chicago IL Board of Education Series A2 (GO Revenue) ±		1.15			3-1-2035		24,000,000		22,636,560
Chicago IL Board of Education Series A3 (GO Revenue) ±		1.22			3-1-2036		48,000,000		42,058,560
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2019		5,335,000		5,068,303
Chicago IL Board of Education Series D (GO Revenue, AGM Insured)		5.00			12-1-2019		1,105,000		1,151,940
Chicago IL Board of Education Series G (GO Revenue) ±		4.39			3-1-2032		3,500,000		3,442,985
Chicago IL City Colleges of Chicago Capital Improvement Project CAB (GO Revenue, National Insured) ¤		0.00			1-1-2019		8,555,000		7,971,977
Chicago IL Modern Schools Across Chicago Program Series A-K (GO Revenue, Ambac Insured)		5.00			12-1-2019		1,000,000		1,017,250
Chicago IL Motor Fuel Refunding Bond (Tax Revenue)		5.00			1-1-2017		1,820,000		1,842,131
Chicago IL Motor Fuel Refunding Bond (Tax Revenue)		5.00			1-1-2018		330,000		341,501
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.00			1-1-2019		1,000,000		1,092,120
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.00			1-1-2020		890,000		997,530
Chicago IL O’Hare International Airport Senior Lien Series A (Airport Revenue)		5.00			1-1-2017		2,630,000		2,686,782
Chicago IL Park District Personal Property Replacement Tax (GO Revenue)		5.00			1-1-2019		500,000		543,990
Chicago IL Park District Refunding Bonds Series B (GO Revenue)		5.00			1-1-2019		3,555,000		3,867,769
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		4.00			1-1-2019		1,890,000		2,009,958
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		5.00			1-1-2019		1,060,000		1,153,259
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		5.00			1-1-2020		1,000,000		1,110,680
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		5.00			1-1-2021		1,000,000		1,135,030
Chicago IL Prerefunded Balance Project Series A (GO Revenue, Ambac Insured)		4.00			1-1-2017		720,000		731,794
Chicago IL Project & Refunding Bond Series A (GO Revenue, National Insured)		5.00			1-1-2019		4,465,000		4,662,308
Chicago IL Project & Refunding Bond Series A (GO Revenue, Ambac Insured)		5.00			1-1-2020		1,985,000		2,014,021
Chicago IL Project & Refunding Bond Series C (GO Revenue, National Insured)		4.00			1-1-2017		345,000		347,329

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

14 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Project & Refunding Bond Series C (GO Revenue, Ambac Insured)		5.00	%		1-1-2021	$	10,280,000	$	10,409,220
Chicago IL Recovery Zone Facility (Industrial Development Revenue)		6.13			12-1-2018		4,955,000		5,082,244
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.25			1-1-2018		1,770,000		1,834,977
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.25			1-1-2020		3,765,000		4,051,178
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.50			1-1-2019		2,600,000		2,767,232
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2019		1,335,000		1,338,404
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2020		10,200,000		10,238,148
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2021		1,100,000		1,109,724
Chicago IL Refunding Bond Series B (GO Revenue, Ambac Insured)		5.13			1-1-2022		8,010,000		8,384,307
Chicago IL Second Lien (Water & Sewer Revenue, AGM Insured)		4.25			11-1-2018		1,925,000		2,060,578
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			1-1-2017		1,200,000		1,222,176
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2020		730,000		831,353
Chicago IL Second Lien (Water & Sewer Revenue, National Insured)		5.50			1-1-2019		1,460,000		1,608,613
Chicago IL Series A (GO Revenue)		5.00			1-1-2018		550,000		563,437
Chicago IL Series A (GO Revenue)		5.00			1-1-2019		5,750,000		5,876,903
Chicago IL Series A (GO Revenue)		5.25			1-1-2021		640,000		654,560
Chicago IL Series A (GO Revenue, National Insured)		5.53			1-1-2020		1,290,000		1,307,892
Chicago IL Series A2 (GO Revenue, Ambac Insured)		5.50			1-1-2018		4,805,000		4,955,156
Chicago IL Series B (GO Revenue, AGM Insured)		5.00			1-1-2019		8,090,000		8,161,516
Chicago IL Series B (GO Revenue, AGM Insured)		5.00			1-1-2020		2,860,000		2,885,282
Chicago IL Series C (GO Revenue)		5.00			1-1-2021		3,000,000		3,140,130
Chicago IL Series C (GO Revenue)		5.00			1-1-2022		12,780,000		13,284,043
Chicago IL Series C (GO Revenue)		5.00			1-1-2023		4,750,000		4,958,763
Chicago IL Transit Authority Federal Transit Administration Section 5309 (Transportation Revenue, AGC Insured)		5.00			6-1-2018		375,000		401,771
Chicago IL Transit Authority Federal Transit Administration Section 5309 (Transportation Revenue, AGC Insured)		5.25			6-1-2019		1,480,000		1,589,772
Chicago IL Unrefunded Balance Project Series A (GO Revenue, Ambac Insured)		4.00			1-1-2017		455,000		457,867
Cook County IL Community High School District #217 Series 2016 (Miscellaneous Revenue) ±		1.25			12-15-2025		12,800,000		12,798,848
Cook County IL Forest Preserve District Series A (GO Revenue)		5.00			11-15-2018		1,005,000		1,093,460
Cook County IL Refunding Bond Series 2016 A (GO Revenue) %%		5.00			11-15-2020		5,430,000		6,175,268
Cook County IL Series 2009D (GO Revenue)		5.00			11-15-2020		2,220,000		2,461,381
Cook County IL Series A (GO Revenue)		5.00			11-15-2019		2,150,000		2,398,218
Cook County IL Series B (GO Revenue, National Insured)		5.00			11-15-2019		6,020,000		6,290,117
Cook County IL Series C (GO Revenue)		5.00			11-15-2020		21,535,000		23,876,501
Illinois (Miscellaneous Revenue)		3.00			7-1-2018		2,000,000		2,054,580
Illinois (GO Revenue)		4.00			2-1-2019		6,300,000		6,624,324
Illinois (GO Revenue)		4.00			2-1-2020		1,750,000		1,857,135
Illinois (GO Revenue)		5.00			1-1-2017		3,200,000		3,214,336
Illinois (GO Revenue)		5.00			3-1-2018		1,795,000		1,896,041
Illinois (GO Revenue, Ambac Insured)		5.00			11-1-2018		10,650,000		10,735,946
Illinois (GO Revenue)		5.00			2-1-2019		1,500,000		1,614,870
Illinois (GO Revenue)		5.00			2-1-2020		2,520,000		2,761,895
Illinois (GO Revenue)		5.00			2-1-2021		11,635,000		12,808,041
Illinois (Miscellaneous Revenue)		5.00			5-1-2021		2,000,000		2,209,100

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Development Finance Authority St. Vincent De Paul Center Project Series A (Health Revenue) ±		1.88	%		11-15-2039	$	5,605,000	$	5,721,080
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2019		2,265,000		2,477,706
Illinois Finance Authority OSF Healthcare System Series F (Health Revenue, Barclays Bank plc LOC) ±		0.42			11-15-2037		15,000,000		15,000,000
Illinois Finance Authority Provena Health Series A (Health Revenue)		5.75			5-1-2019		3,000,000		3,349,110
Illinois Finance Authority Refunding Bond Lifespace Communities (Health Revenue)		4.00			5-15-2018		700,000		736,897
Illinois Finance Authority Refunding Bond Lifespace Communities (Health Revenue)		4.00			5-15-2019		1,000,000		1,074,700
Illinois Housing Development Authority (Housing Revenue, GNMA Insured)		5.00			8-1-2028		1,240,000		1,277,956
Illinois Municipal Electric Agency Power Supply Series A (Utilities Revenue, National Insured)		5.25			2-1-2020		2,705,000		2,779,252
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2018		1,905,000		2,002,250
Illinois Refunding Bond (GO Revenue, AGM Insured)		5.00			1-1-2017		1,725,000		1,760,397
Illinois Refunding Bond (GO Revenue, AGM Insured)		5.00			1-1-2018		7,740,000		8,175,530
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2018		1,525,000		1,629,951
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2019		12,570,000		13,505,208
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2020		13,515,000		14,803,115
Illinois Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2020		5,000,000		5,642,200
Illinois Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		9,175,000		10,353,437
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2020		5,000,000		5,498,850
Illinois Refunding Bond (Tax Revenue)		5.00			1-1-2021		1,510,000		1,660,351
Illinois Refunding Bond Series B (Miscellaneous Revenue)		5.25			1-1-2018		1,430,000		1,508,293
Illinois Series 2004 (GO Revenue)		5.00			9-1-2016		10,000,000		10,033,200
Illinois Series A (GO Revenue)		3.75			9-1-2016		2,000,000		2,009,740
Illinois Series A (Tax Revenue)		4.00			1-1-2020		12,265,000		13,018,071
Illinois Series A (Tax Revenue)		4.00			1-1-2021		2,715,000		2,867,230
Illinois Series A (GO Revenue)		5.00			4-1-2019		5,000,000		5,404,550
Illinois Series A (GO Revenue)		5.00			4-1-2020		2,500,000		2,743,150
Illinois Series A (GO Revenue)		5.00			4-1-2022		3,575,000		3,983,551
Illinois Unemployment Insurance Series A (Tax Revenue)		5.00			12-15-2016		5,200,000		5,308,108
Illinois Unemployment Insurance Series B (Tax Revenue)		5.00			12-15-2017		4,700,000		4,797,196
Illinois Unemployment Insurance Series B (Tax Revenue)		5.00			6-15-2018		17,120,000		17,466,338
Illinois Unrefunded Balance Series A (Miscellaneous Revenue)		5.00			10-1-2016		3,965,000		3,978,085
Kane County IL School District Series B (GO Revenue)		2.00			2-1-2021		880,000		900,451
Kankakee County IL School District #111 Series 2016 (GO Revenue) ±144A		1.50			6-1-2035		10,200,000		10,201,020
Kendall, Kane & Will Counties IL Community Unit School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2020		1,000,000		936,870
Lake County IL Community High School District #117 Antioch CAB Series B (GO Revenue, National Insured) ¤		0.00			12-1-2016		4,975,000		4,955,598
Lake County IL Community Unit School District #60 Waukegan CAB Series A (GO Revenue, AGM Insured) ¤		0.00			12-1-2018		1,715,000		1,645,920
Lake County IL Forest Preservation District Series A (GO Revenue) ±		0.88			12-15-2016		1,085,000		1,084,468
McHenry-Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2021		1,000,000		900,150
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Project Series A (Tax Revenue, National Insured) ¤		0.00			6-15-2017		11,210,000		11,072,117
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2017		6,160,000		6,043,083

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

16 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Project Series B (Tax Revenue)		5.00	%		12-15-2020	$	1,000,000	$	1,126,750
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.65			6-1-2025		13,395,000		13,395,000
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2018		12,000,000		12,349,440
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2019		5,900,000		6,071,808
Western Illinois University Auxiliary Facilities System (Education Revenue)		4.00			4-1-2017		1,135,000		1,147,201
Western Illinois University Auxiliary Facilities System (Education Revenue)		4.00			4-1-2020		1,480,000		1,529,269
									599,559,589
Indiana: 4.23%
Evansville City IN MFHR Consolidated RAD Project Series A (Housing Revenue) ±		0.90			6-1-2018		4,600,000		4,603,910
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		79,215,000		80,862,672
Indiana Finance Authority Refunding Bond Series A (Miscellaneous Revenue, National Insured)		4.50			12-1-2021		5,000,000		5,088,750
Indiana Finance Authority Refunding Bond Southern Indiana Gas & Electric Company Series E (Utilities Revenue) ±		1.95			5-1-2037		3,000,000		3,041,130
Indiana HFFA Ascension Health Series A1 (Health Revenue) ±		2.80			11-1-2027		11,285,000		11,868,322
Indiana HFFA Ascension Health Series A7 (Health Revenue) ±		2.00			10-1-2026		9,925,000		10,147,022
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.26			11-15-2031		70,710,000		70,710,707
Indiana HFFA Ascension Health Subordinate Credit Group Series 2015 A-4 (Health Revenue) ±		1.50			10-1-2027		2,705,000		2,725,856
Petersburg IN PCR Refunding Bond Industry Power & Light (Industrial Development Revenue, National Insured)		5.40			8-1-2017		1,000,000		1,049,370
Rockport IN PCR Indiana-Michigan Power Company Series B (Utilities Revenue) ±		1.75			6-1-2025		4,285,000		4,323,736
Warrick County IN Environment Import Revenue Vectren Energy Delivery of Indiana Incorporated (Utilities Revenue) ±		2.38			9-1-2055		6,550,000		6,737,723
Whiting IN BP Products North America Incorporated Project (Resource Recovery Revenue)		1.14			12-1-2044		45,000,000		43,960,050
									245,119,248
Iowa: 0.09%
Iowa Student Loan Liquidity Corporation Senior Series A1 (Education Revenue)		4.40			12-1-2018		5,220,000		5,442,111
Kansas: 0.20%
Kansas Development Finance Authority Series A (Miscellaneous Revenue)		5.00			5-1-2019		10,305,000		11,490,487
Wyandotte County & Kansas City KS Unified Government Special Obligation Second Lien CAB Series B (Tax Revenue) ¤		0.00			6-1-2021		225,000		171,221
									11,661,708
Kentucky: 1.94%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		2.14			2-1-2040		33,495,000		33,514,092
Ashland KY Ashland Hospital Corporation Medical Center Project Series B (Health Revenue)		5.00			2-1-2019		1,500,000		1,613,025
Kentucky EDA Next Generation Kentucky Information Highway Project Series 2015 A (Miscellaneous Revenue)		5.00			7-1-2020		1,000,000		1,123,320
Kentucky EDFA King’s Daughters Medical Center (Health Revenue)		5.00			2-1-2017		1,000,000		1,017,410
Kentucky EDFA Series B1 (Health Revenue) ±		1.21			2-1-2046		10,720,000		10,590,395
Kentucky EDFA Series B2 (Health Revenue) ±		1.21			2-1-2046		11,220,000		11,084,350

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Kentucky (continued)
Kentucky Higher Education Student Loan Corporation Series A (Education Revenue)		3.75	%		6-1-2026	$	1,330,000	$	1,446,481
Kentucky Higher Education Student Loan Corporation Series A (Education Revenue)		5.00			6-1-2018		1,200,000		1,278,372
Kentucky Municipal Power Agency Prairie State Project Series B (Utilities Revenue) ±		1.79			9-1-2042		25,000,000		24,991,000
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		25,000,000		25,954,250
									112,612,695
Louisiana: 2.59%
Desoto Parish LA PCR (Utilities Revenue)		1.60			1-1-2019		15,000,000		15,123,750
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.82			2-1-2046		42,585,000		42,182,146
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Sewer Commission Series B (Tax Revenue) ±		1.02			2-1-2049		35,500,000		35,147,840
Louisiana Local Government Environmental Facilities & Community Development Authority Series 2015 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2020		1,135,000		1,321,231
Louisiana Regional Transit Authority CAB (Tax Revenue, National Insured) ¤		0.00			12-1-2021		5,000,000		3,849,050
New Orleans LA Master Lease Agreement (GO Revenue) (i)		5.25			1-1-2018		6,121,493		6,239,699
St. Bernard Parish LA Sales & Uses Tax (Tax Revenue)		4.00			3-1-2017		3,135,000		3,201,054
St. Bernard Parish LA Sales & Uses Tax (Tax Revenue)		4.00			3-1-2018		3,245,000		3,403,356
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.65			11-1-2040		34,000,000		34,000,000
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø		0.70			11-1-2040		6,000,000		6,000,000
									150,468,126
Maryland: 1.80%
Howard County MD Housing Commission Series A (Housing Revenue) ±		1.66			7-1-2034		16,050,000		16,023,678
Maryland Community Development Administration Department Housing & Community Multifamily Bernard E Mason Apartments Series F (Housing Revenue)		1.17			11-1-2017		18,020,000		18,030,091
Maryland Community Development Administration Department Housing & Community Multifamily Riverwatch Apartments Series J (Housing Revenue)		1.00			4-1-2017		11,750,000		11,750,823
Maryland Health & HEFAR John Hopkins Health System Series A (Health Revenue) ±		0.91			5-15-2046		8,000,000		7,989,600
Maryland Health & HEFAR John Hopkins Health System Series B (Health Revenue) ±		0.89			5-15-2029		9,815,000		9,798,609
Maryland Health & HEFAR John Hopkins Health System Series C (Health Revenue) ±		1.14			5-15-2038		22,100,000		22,090,055
Maryland Health & HEFAR John Hopkins Health System Series D (Health Revenue) ±		1.14			5-15-2038		18,890,000		18,881,500
									104,564,356
Massachusetts: 3.21%
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ±		1.05			8-1-2043		93,750,000		93,750,000
Massachusetts Development Finance Agency Dominion Energy Brayton Recovery Zone Series A (Utilities Revenue)		2.25			12-1-2041		2,665,000		2,672,808
Massachusetts Development Finance Agency Southcoast Health System Obligation Series F (Health Revenue)		3.00			7-1-2016		500,000		500,035
Massachusetts Development Finance Agency Southcoast Health System Obligation Series F (Health Revenue)		3.00			7-1-2017		500,000		510,815
Massachusetts Development Finance Agency Waste Management Incorporated (Resource Recovery Revenue) ±		1.60			5-1-2027		7,000,000		7,042,280

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

18 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Massachusetts (continued)
Massachusetts Educational Financing Authority Education Loan Series I (Education Revenue)		4.00	%		1-1-2018	$	1,750,000	$	1,819,020
Massachusetts Educational Financing Authority Series A (Education Revenue)		3.50			1-1-2019		2,500,000		2,613,575
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2018		1,500,000		1,581,405
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2019		3,000,000		3,246,180
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2020		3,000,000		3,327,720
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2022		2,955,000		3,379,959
Massachusetts Educational Financing Authority Series K (Education Revenue)		5.00			7-1-2019		2,000,000		2,195,500
Massachusetts Educational Financing Authority Tender Option Bond Trust Receipts Floaters Series 2016-XF2306 (Education Revenue, Morgan Stanley Bank LIQ) ø144A		0.70			7-1-2033		10,000,000		10,000,000
Massachusetts HEFA Partners Healthcare Series G6 (Health Revenue) ±		1.29			7-1-2038		40,000,000		39,996,400
Massachusetts Series A (GO Revenue) ±		0.93			9-1-2016		4,000,000		4,000,720
Massachusetts Various Consolidated Loans Series D (Tax Revenue) ±		0.84			1-1-2018		9,500,000		9,504,180
									186,140,597
Michigan: 4.18%
Birmingham MI City School District (GO Revenue)		5.00			11-1-2018		905,000		994,704
Birmingham MI City School District (GO Revenue)		5.00			11-1-2019		5,970,000		6,795,830
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		250,000		258,980
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		1,315,000		1,415,203
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		500,000		574,060
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,140,000		1,343,137
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		740,000		760,424
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2018		1,535,000		1,624,061
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2019		1,595,000		1,732,361
Detroit MI (GO Revenue)		5.00			11-1-2016		855,000		865,739
Detroit MI Sewage Disposal System Series A (Water & Sewer Revenue, AGM Insured)		5.25			7-1-2019		980,000		1,099,491
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2016		4,060,000		4,061,380
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2017		3,000,000		3,003,210
Flint MI International Academy Public School Project (Education Revenue)		5.00			10-1-2017		510,000		516,701
Flushing MI Community Schools School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		975,000		1,001,910
Flushing MI Community Schools School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2021		1,135,000		1,284,071
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2018		2,000,000		2,155,340
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2019		1,375,000		1,534,693
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,000,000		1,035,920
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,050,000		1,169,753
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,085,000		1,206,270

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal			Value
Michigan (continued)
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00	%		5-1-2020	$	1,100,000		$	1,258,323
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,185,000			1,388,654
Grand Ledge MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		2,680,000			3,076,962
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2019		515,000			559,352
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2020		370,000			410,929
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		500,000			589,095
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		750,000			807,150
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,605,000			1,788,050
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		2,325,000			2,590,166
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		915,000			1,019,356
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,385,000			1,631,793
Lake Orion MI Community School District Refunding Bond (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		2,940,000			3,375,473
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		2,500,000			2,784,850
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2020		3,835,000			4,389,925
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2021		3,095,000			3,629,878
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2016		2,000,000			2,000,260
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2017		2,500,000			2,597,225
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2018		2,000,000			2,147,880
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2020		10,000,000			11,476,500
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-3 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		7,000,000			7,797,580
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		1,500,000			1,670,910
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2020		1,800,000			2,060,460
Michigan Finance Authority Refunding Bond Senior Lien Detroit Water & Sewer Series C-3 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2021		7,500,000			8,812,050
Michigan Finance Authority Refunding Bond Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2019		7,000,000			7,797,580
Michigan Finance Authority Refunding Bond Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2020		8,720,000	��		9,981,784
Michigan Finance Authority School District (Miscellaneous Revenue)		4.00			6-1-2017		800,000			814,712
Michigan Finance Authority School District (Miscellaneous Revenue)		5.00			6-1-2017		750,000			770,595
Michigan Finance Authority School District (Miscellaneous Revenue)		5.00			7-1-2021		2,060,000			2,237,160

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

20 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Unemployment Obligation Assessment Series B (Miscellaneous Revenue)		5.00	%		1-1-2020	$	15,000,000	$	16,889,400
Michigan Hospital Finance Authority Ascension Health Subordinate Credit Group Series 2005 A-4 (Health Revenue) ±		1.63			11-1-2027		3,505,000		3,552,282
Michigan Hospital Finance Authority Ascension Health Series A-3 (Health Revenue) ±		1.87			11-1-2027		23,815,000		24,209,853
Michigan Housing Development Authority Limited Greenwood Villa Project (Housing Revenue, AGM Insured)		4.75			9-15-2017		1,280,000		1,300,442
Michigan Housing Development Authority Series A (Housing Revenue)		1.80			4-1-2019		7,000,000		7,073,850
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		29,250,000		30,034,778
Rochester MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		900,000		932,715
Rochester MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		900,000		1,004,526
South Lyon MI Community School District (GO Revenue)		4.00			5-1-2018		2,060,000		2,179,521
South Lyon MI Community School District (GO Revenue)		4.00			5-1-2019		1,860,000		2,020,183
South Lyon MI Community School District (GO Revenue)		4.00			5-1-2020		1,425,000		1,582,634
Southgate MI Community School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			5-1-2019		1,000,000		1,116,140
Southgate MI Community School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			5-1-2020		500,000		576,445
Warren Woods MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,445,000		1,496,904
Warren Woods MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,445,000		1,659,033
Wayne County MI Airport Authority Refunding Bond Series A (Airport Revenue)		5.00			12-1-2019		19,405,000		21,755,722
Western Michigan University Refunding Bond (Education Revenue)		5.00			11-15-2020		1,000,000		1,166,830
									242,449,148
Minnesota: 0.31%
Central Minnesota Municipal Power Agency Brookings Southeast Twin Cities Transmission Project (Utilities Revenue)		5.00			1-1-2017		1,215,000		1,219,216
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		10,410,000		10,478,186
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.59			11-15-2017		5,800,000		5,742,000
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2018		670,000		712,264
									18,151,666
Mississippi: 0.31%
Mississippi Business Finance Corporation Power Company Project 1st Series (Utilities Revenue) ±		1.63			12-1-2040		10,075,000		10,153,182
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2016		495,000		503,994
Mississippi Refunding Bond Capital Improvements Projects Series D (Miscellaneous Revenue) ±		0.92			9-1-2017		7,605,000		7,604,848
									18,262,024

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Missouri: 0.34%
Jackson County MO Special Obligation Harry S. Truman Sports Complex (Tax Revenue, Ambac Insured)		5.00	%		12-1-2019	$	3,000,000	$	3,055,830
Kansas City MO Series A (GO Revenue)		5.00			2-1-2018		1,150,000		1,228,741
Kansas City MO Series A (GO Revenue)		5.00			2-1-2019		1,000,000		1,108,280
Kansas City MO Series A (GO Revenue)		5.00			2-1-2020		1,495,000		1,714,122
Sikeston MO Electric System Refunding Bond (Utilities Revenue)		5.00			6-1-2019		11,625,000		12,751,928
									19,858,901
Nebraska: 0.02%
Public Power Generation Agency Whelan Energy Center Unit (Utilities Revenue)		5.00			1-1-2020		1,000,000		1,128,130
Nevada: 1.12%
Clark County NV Airport Jet Aviation Fuel Tax Series A (Airport Revenue)		5.00			7-1-2019		1,000,000		1,114,260
Clark County NV Airport Jet Aviation Fuel Tax Series A (Airport Revenue)		5.00			7-1-2020		1,000,000		1,145,120
Clark County NV Department of Aviation Subordinated Lien Series D-3 (Airport Revenue, Bank of America NA LOC) ø		0.41			7-1-2029		4,000,000		4,000,000
Clark County NV PCR (Industrial Development Revenue) ±		1.88			6-1-2031		880,000		900,258
Clark County NV School District Series A (GO Revenue, National Insured)		5.00			6-15-2021		2,000,000		2,142,080
Clark County NV School District Series B (GO Revenue)		5.00			6-15-2019		18,800,000		21,094,164
Clark County NV School District Series B (GO Revenue)		5.00			6-15-2021		1,400,000		1,486,842
Nevada River Commission Hoover Upgrading Project Series E (GO Revenue)		5.00			10-1-2016		4,595,000		4,647,888
Washoe County NV Water Facilities Refunding Bond AMT Sierra Pacific Power Company Project Series 2016 (Water & Sewer Revenue) ±		0.63			3-1-2036		9,250,000		9,250,000
Washoe County NV Water Facilities Refunding Bond AMT Sierra Pacific Power Company Project Series 2016D (Water & Sewer Revenue) ±		0.64			3-1-2036		11,000,000		11,000,000
Washoe County NV Water Facilities Refunding Bond AMT Sierra Pacific Power Company Project Series 2016E (Water & Sewer Revenue) ±		0.65			3-1-2036		8,000,000		8,000,000
									64,780,612
New Hampshire: 0.12%
New Hampshire HEFA Catholic Medical Center (Health Revenue)		4.00			7-1-2018		2,405,000		2,517,843
New Hampshire HEFA Catholic Medical Center (Health Revenue)		4.00			7-1-2019		2,635,000		2,810,096
New Hampshire HFA SFMR Series B (Housing Revenue)		5.00			7-1-2027		1,465,000		1,540,067
									6,868,006
New Jersey: 5.01%
Casino Reinvestment Development Authority New Jersey (Tax Revenue)		4.00			11-1-2017		1,000,000		1,013,700
Casino Reinvestment Development Authority New Jersey (Tax Revenue)		4.00			11-1-2019		1,500,000		1,541,130
Hudson County NJ Refunding Bond County College (GO Revenue)		4.00			7-15-2017		1,000,000		1,034,910
Hudson County NJ Refunding Bond County College (GO Revenue)		4.00			7-15-2018		1,135,000		1,211,420
Jersey City NJ Refunding Bond (GO Revenue, AGM Insured)		4.00			9-1-2017		1,620,000		1,677,947
Morris-Union Jointure Commission New Jersey Refunding Bond (Miscellaneous Revenue, AGM Insured)		4.00			8-1-2016		2,235,000		2,240,386
New Jersey Certificate of Participation Equipment Lease Purchase Agreement Series A (Miscellaneous Revenue)		5.00			6-15-2018		11,160,000		11,865,535
New Jersey EDA (Tobacco Revenue)		4.00			6-15-2019		2,500,000		2,643,100
New Jersey EDA CAB Saint Barnabas Hospital Series A (Health Revenue, National Insured) ¤		0.00			7-1-2017		2,740,000		2,704,627
New Jersey EDA Cigarette Tax (Tobacco Revenue)		5.00			6-15-2017		18,520,000		19,099,306
New Jersey EDA Motor Vehicle Commission Series A (Miscellaneous Revenue, National Insured)		5.25			7-1-2016		2,190,000		2,190,307

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

22 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey EDA Prerefunded School Facilities Construction Series EE (Miscellaneous Revenue)		5.00	%		9-1-2018	$	2,375,000	$	2,594,118
New Jersey EDA Prerefunded School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2020		1,650,000		1,923,240
New Jersey EDA Series UU (Miscellaneous Revenue)		5.00			6-15-2017		3,000,000		3,112,320
New Jersey EDA Series UU (Miscellaneous Revenue)		5.00			6-15-2018		7,355,000		7,812,702
New Jersey EDA Unrefunded School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2020		610,000		672,531
New Jersey EDA Unrefunded School Facilities School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2018		865,000		923,344
New Jersey EDA School Facilities Construction Bonds Series DD-1 (Miscellaneous Revenue)		5.00			12-15-2019		1,000,000		1,094,760
New Jersey EDA School Facilities Construction Bonds Series K (Miscellaneous Revenue, National Insured)		5.25			12-15-2021		1,040,000		1,197,976
New Jersey EDA School Facilities Construction Notes (Miscellaneous Revenue) ±		1.31			2-1-2017		20,725,000		20,579,925
New Jersey EDA School Facilities Construction Notes Series C (Miscellaneous Revenue) ±		2.21			2-1-2018		38,000,000		37,841,160
New Jersey EDA School Facilities Construction Notes Series DD1 (Miscellaneous Revenue)		5.00			12-15-2018		4,690,000		5,040,906
New Jersey EDA School Facilities Construction Notes Series K (Miscellaneous Revenue) ±		1.12			2-1-2017		10,000,000		9,976,700
New Jersey EDA School Facilities Construction Notes Series NN (Miscellaneous Revenue)		5.00			3-1-2022		330,000		369,128
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series A (Education Revenue)		4.00			9-1-2017		2,425,000		2,503,522
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series B (Education Revenue)		4.00			9-1-2017		525,000		542,000
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series D (Education Revenue)		4.00			9-1-2016		540,000		542,884
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series D (Education Revenue)		4.00			9-1-2017		565,000		583,295
New Jersey HFFA Trinitas Hospital Obligation Series B (Health Revenue)		5.25			7-1-2023		4,475,000		4,675,570
New Jersey HFFA Greystone Park Psychiatric Hospital Project Series B (Miscellaneous Revenue)		5.00			9-15-2019		2,135,000		2,326,253
New Jersey Higher Education Assistance Authority Series A1 (Education Revenue)		3.63			12-1-2030		2,120,000		2,230,749
New Jersey Higher Education Assistance Authority Series A1 (Education Revenue)		5.00			12-1-2020		9,775,000		10,997,462
New Jersey Housing and Mortgage Finance Agency Series B (Housing Revenue)		1.15			11-1-2018		11,095,000		11,115,304
New Jersey Housing and Mortgage Finance Agency Series B (Housing Revenue)		1.25			5-1-2019		6,000,000		6,018,900
New Jersey Sports & Exposition Authority Series B (Miscellaneous Revenue)		5.00			9-1-2018		1,605,000		1,713,257
New Jersey Transit Corporation Federal Transit Administration Grants Series A (Miscellaneous Revenue, National Insured)		5.00			9-15-2017		7,265,000		7,647,430
New Jersey Transportation Program Series B (Miscellaneous Revenue, National Insured)		5.50			12-15-2016		2,205,000		2,253,091
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue)		5.00			12-15-2019		3,000,000		3,280,950
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			12-15-2018		1,000,000		1,074,950
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		33,465,000		37,486,154
New Jersey TTFA Series AA (Transportation Revenue)		5.00			6-15-2019		2,070,000		2,241,065
New Jersey TTFA Transit System Series A (GO Revenue)		5.75			6-15-2020		4,150,000		4,674,809
New Jersey Turnpike Authority Series B-2 (Transportation Revenue) ±		0.73			1-1-2024		25,000,000		24,965,000
New Jersey Turnpike Authority Series B-3 (Transportation Revenue) ±		0.88			1-1-2024		4,700,000		4,686,793
Newark NJ Housing Authority Refunding Bond Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.25			1-1-2020		2,170,000		2,458,588
Newark NJ Housing Authority Refunding Bond Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.25			1-1-2021		4,570,000		5,285,434

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
Rutgers University Series J (Education Revenue)		4.00	%		5-1-2018	$	700,000	$	741,979
Rutgers University Series L (Education Revenue)		5.00			5-1-2017		600,000		622,068
Rutgers University Series L (Education Revenue)		5.00			5-1-2018		300,000		323,454
Trenton City NJ Refunding Bond (GO Revenue)		4.00			7-15-2019		1,815,000		1,923,537
Trenton City NJ Refunding Bond (GO Revenue)		4.00			7-15-2020		1,685,000		1,805,983
Trenton NJ Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			12-1-2017		1,710,000		1,774,706
Trenton NJ Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2020		1,675,000		1,907,172
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		3.00			8-1-2017		600,000		613,224
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		4.00			8-1-2018		425,000		450,815
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		4.00			8-1-2019		525,000		570,791
									290,398,367
New Mexico: 0.91%
Clayton NM Jail Project (Miscellaneous Revenue, CIFG Insured)		5.00			11-1-2016		2,100,000		2,131,584
Farmington NM PCR Series B (Utilities Revenue) ±		4.75			6-1-2040		5,080,000		5,247,234
Farmington NM PCR Southern California Edison Company Four Corners Project Series B (Utilities Revenue) ±		1.88			4-1-2029		4,750,000		4,873,453
New Mexico Educational Assistance Foundation Series A2 (Education Revenue) ±		1.32			12-1-2028		395,000		393,045
New Mexico Mortgage Finance Authority SFMR Class I-A-2 (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.60			1-1-2039		265,000		281,247
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.06			11-1-2039		40,000,000		39,689,200
									52,615,763
New York: 11.15%
Broome County NY BAN (GO Revenue)		2.00			5-5-2017		20,000,000		20,208,800
Candor Central School District Tioga and Tompkins Counties NY BAN (GO Revenue)		2.00			6-29-2017		12,000,000		12,137,760
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		0.97			5-1-2033		12,000,000		11,913,960
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		1.20			5-1-2033		33,750,000		33,686,213
Metropolitan Transportation Authority New York Sub Series D2 (Transportation Revenue) ±		4.00			11-15-2034		14,665,000		16,009,194
Metropolitan Transportation Authority New York Sub Series A2 (Transportation Revenue) ±		0.97			11-15-2039		2,000,000		1,989,400
Metropolitan Transportation Authority New York Sub Series A3 (Transportation Revenue) ±		0.91			11-15-2042		39,500,000		39,095,125
Metropolitan Transportation Authority New York Sub Series B3 (Tax Revenue) ±		1.29			11-1-2018		32,600,000		32,617,604
Metropolitan Transportation Authority New York Sub Series B4 (Transportation Revenue) ±		5.00			11-15-2030		12,445,000		14,087,242
Metropolitan Transportation Authority New York Sub Series C2 (Transportation Revenue) ±		4.00			11-15-2033		8,000,000		8,974,800
Metropolitan Transportation Authority New York Sub Series D2 (Transportation Revenue, AGM Insured) ±		0.92			11-1-2032		15,750,000		15,687,473
Metropolitan Transportation Authority New York Sub Series G1 (Transportation Revenue) ±		0.79			11-1-2026		31,950,000		31,677,147
Metropolitan Transportation Authority New York Sub Series G3 (Transportation Revenue) ±		1.01			11-1-2031		16,000,000		16,006,720
Metropolitan Transportation Authority New York Sub Series G4 (Transportation Revenue) ±		1.15			11-1-2030		11,655,000		11,666,072

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

24 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Nassau County NY Local Economic Assistance Winthrop University Hospital Project (Health Revenue)		4.00	%		7-1-2016	$	1,400,000	$	1,400,126
Nassau County NY Prerefunded Bond Series C (GO Revenue)		5.00			10-1-2020		3,020,000		3,422,234
Nassau County NY Series F (GO Revenue)		5.00			10-1-2020		1,780,000		2,004,832
Nassau County NY Unrefunded Bond Series C (GO Revenue)		5.00			10-1-2020		45,000		50,870
New York Dormitory Authority Non Miriam Osborn Memorial Home Association (Health Revenue)		2.00			7-1-2016		1,800,000		1,800,072
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		1.16			5-1-2018		6,655,000		6,646,215
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2017		2,250,000		2,346,098
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2018		750,000		814,815
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2019		1,000,000		1,127,680
New York IDA American Airlines JFK International Airport (Industrial Development Revenue)		7.50			8-1-2016		3,580,000		3,601,301
New York Local Government Assistance Corporation Series A9V (Tax Revenue, AGM Insured) ±(m)(n)		0.48			4-1-2017		4,225,000		4,214,438
New York NY Adjusted Fiscal 2008 Sub Series A4 (GO Revenue, AGM Insured) ±(m)		0.55			8-1-2026		4,450,000		4,450,000
New York NY Adjusted Fiscal 2008 Sub Series C4 (GO Revenue, AGC Insured) ±(m)		0.55			10-1-2027		10,000,000		10,000,000
New York NY Adjusted Fiscal 2008 Sub Series J7 (GO Revenue) ±		0.88			8-1-2021		19,000,000		19,000,760
New York NY Energy Research & Development Authority Gas Facilities Brooklyn Union Gas Project Series A1 (Utilities Revenue, National Insured) ±(m)(n)		0.75			12-1-2020		15,000,000		14,362,500
New York NY Health & Hospital Corporation Health System Series A (Health Revenue)		5.50			2-15-2020		5,755,000		6,196,121
New York NY IDAG Refunding Bond Senior Trips Series A (Airport Revenue)		5.00			7-1-2016		2,250,000		2,250,248
New York NY IDAG Refunding Bond Senior Trips Series A (Airport Revenue)		5.00			7-1-2017		2,000,000		2,077,980
New York NY John F. Kennedy International Airport Project Series B (Industrial Development Revenue) ±		2.00			8-1-2028		10,800,000		10,788,984
New York NY Municipal Water Finance Authority Series AA3 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.55			6-15-2032		6,500,000		6,500,000
New York NY Refunding Bond 2015 Series A (GO Revenue)		5.00			8-1-2021		7,515,000		8,964,869
New York NY Series J-4 (GO Revenue) ±		0.96			8-1-2025		2,000,000		2,000,060
New York NY Sub Series J-11 (GO Revenue) ±		0.99			8-1-2027		40,960,000		40,715,878
New York NY Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2019		1,855,000		2,069,345
New York Tobacco Settlement Financing Corporation Series B (Tobacco Revenue)		5.00			6-1-2017		6,500,000		6,762,210
New York Transportation Development Corporation American Airlines Incorporated John F. Kennedy International Airport Project Series 2016 (Airport Revenue)		5.00			8-1-2019		15,000,000		16,194,900
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project Series 2016 (Airport Revenue)		5.00			8-1-2020		7,000,000		7,704,200
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		42,840,000		42,857,136
New York Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2020		25,175,000		29,010,160
Oyster Bay NY BAN Series A (GO Revenue)		2.75			2-3-2017		15,000,000		15,076,050
Oyster Bay NY BAN Series D (GO Revenue)		3.88			6-28-2017		3,485,000		3,520,233
Oyster Bay NY Public Improvement Series B (GO Revenue, AGM Insured)		3.00			11-1-2018		1,140,000		1,183,183

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 25

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Rockland County NY Public Improvement Series C (GO Revenue, AGM Insured)		3.00	%		5-1-2020	$	1,390,000	$	1,472,413
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2018		2,475,000		2,554,175
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2019		1,830,000		1,913,411
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2020		630,000		666,313
Suffolk County NY Economic Development Corporation Catholic Health Services (Health Revenue)		5.00			7-1-2016		1,250,000		1,250,163
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2016		2,245,000		2,273,624
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2017		2,365,000		2,476,841
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2018		2,640,000		2,852,124
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2019		2,775,000		3,076,421
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2020		2,915,000		3,300,130
Suffolk County NY Public Improvement Series A (GO Revenue)		4.00			5-15-2018		1,615,000		1,708,573
Suffolk County NY Refunding Bond (GO Revenue, AGM Insured)		5.00			2-1-2017		1,500,000		1,538,310
Suffolk County NY Refunding Bond Series A (GO Revenue)		5.00			4-1-2018		2,700,000		2,893,779
Suffolk County NY Refunding Bond Series A (GO Revenue)		5.00			4-1-2019		1,385,000		1,537,433
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		35,000,000		35,034,300
Triborough Bridge & Tunnel Authority New York Refunding Bond Sub Series ABCD-3 (Transportation Revenue, AGM Insured) ±		0.64			1-1-2017		4,100,000		4,094,875
Triborough Bridge & Tunnel Authority New York Refunding Bond Sub Series BE (Transportation Revenue) ±		0.96			1-1-2032		31,200,000		31,214,976
Yonkers NY Series A (GO Revenue)		5.00			10-1-2016		2,000,000		2,022,220
									646,751,089
North Carolina: 0.57%
North Carolina Capital Finance Republic Services Incorporated Project Series 2013 (Resource Recovery Revenue) ±		0.80			6-1-2038		7,000,000		7,000,000
North Carolina Eastern Municipal Power Agency Series C (Utilities Revenue, AGC Insured)		6.00			1-1-2019		710,000		765,153
North Carolina Eastern Municipal Power Agency Series D (Utilities Revenue)		5.00			1-1-2017		10,000,000		10,222,100
North Carolina Grant Anticipation Capital Improvement (Miscellaneous Revenue) ±		4.00			3-1-2023		13,145,000		13,632,548
North Carolina Medical Care Commission Novant Health Obligated Group Series A (Health Revenue)		4.00			11-1-2017		1,330,000		1,386,804
									33,006,605
North Dakota: 0.10%
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		5,000,000		5,010,450
Ward County ND HCFR Trinity Obligated Group (Health Revenue)		5.13			7-1-2018		1,000,000		1,003,400
									6,013,850

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

26 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Ohio: 3.42%
Cleveland OH Municipal School District (GO Revenue, South Dakota Credit Program Insured)		5.00	%		12-1-2016	$	1,705,000	$	1,736,866
Crawford County OH Avita Health System Obligated Group Project (Health Revenue)		1.43			11-1-2017		10,000,000		10,035,400
Cuyahoga OH Metropolitan Housing Authority Headquarters Project (Housing Revenue)		1.75			3-1-2020		5,900,000		5,933,748
Cuyahoga OH Metropolitan Housing Authority Heritage View Homes Project (Housing Revenue)		1.00			6-1-2017		5,550,000		5,552,775
Franklin County OH Hospital Facilities Refunding Bond Ohio Health Corporation Series B (Health Revenue) ±		5.00			11-15-2033		16,705,000		17,433,505
Lancaster OH Port Authority Gas Supply (Utilities Revenue) ±		1.03			5-1-2038		73,500,000		73,570,560
Lorain County OH Port Authority EDA Series A (Health Revenue)		4.00			11-15-2018		670,000		709,899
Lucas Metropolitan Housing Authority OH Certificate of Participation (Housing Revenue)		2.25			11-1-2020		1,015,000		1,030,367
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2017		1,575,000		1,609,241
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2018		1,000,000		1,053,150
Ohio Air Quality Development Authority PCR Facilities Refunding Bond FirstEnergy Generation Project (Resource Recovery Revenue) ±		3.10			3-1-2023		10,000,000		10,104,700
Ohio Air Quality Development Authority Series A (Miscellaneous Revenue) ±		3.13			7-1-2033		1,500,000		1,515,855
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75			12-1-2023		5,000,000		5,136,600
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			12-1-2033		2,000,000		2,046,600
Ohio Portsmouth Bypass Project (Industrial Development Revenue)		5.00			12-31-2020		1,000,000		1,146,590
Ohio Portsmouth Bypass Project (Industrial Development Revenue)		5.00			12-31-2021		1,205,000		1,404,006
Ohio Water Development Authority First Energy Nuclear Generation Project (Water & Sewer Revenue) ±		4.00			12-1-2033		4,000,000		4,139,520
Ohio Water Development Authority First Energy Nuclear Generation Project Series A (Water & Sewer Revenue)		3.00			5-15-2019		31,000,000		31,263,500
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		17,950,000		18,461,037
Warren County OH HCFR Otterbein Homes Series A (Health Revenue)		5.00			7-1-2018		2,000,000		2,155,340
Warren County OH HCFR Otterbein Homes Series A (Health Revenue)		5.00			7-1-2019		2,215,000		2,462,504
									198,501,763
Oklahoma: 0.57%
Blaine County OK Educational Facilities Authority Watonga Public Schools Project (Miscellaneous Revenue)		5.00			12-1-2021		945,000		1,110,687
Cleveland County OK Educational Facilities Authority Norman Public Schools Project (Miscellaneous Revenue)		5.00			7-1-2018		2,680,000		2,896,490
Cleveland County OK Educational Facilities Authority Norman Public Schools Project (Miscellaneous Revenue)		5.00			7-1-2019		2,000,000		2,234,800
Cleveland County OK Justice Authority Detention Facility Project (Tax Revenue)		4.00			3-1-2020		500,000		537,995
Creek County OK Educational Facilities Authority Sapulpa Public School Project (Miscellaneous Revenue)		5.00			9-1-2020		2,550,000		2,937,243
Grady County OK School Finance Authority Tuttle Public School Project (Miscellaneous Revenue)		5.00			9-1-2019		1,000,000		1,122,680
Grady County OK School Finance Authority Tuttle Public School Project (Miscellaneous Revenue)		5.00			9-1-2021		1,065,000		1,253,771
Oklahoma City OK Industrial & Cultural Facilities Series B (Health Revenue, National Insured) ±(m)(n)		0.74			6-1-2019		10,300,000		9,900,875

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 27

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma (continued)
Tulsa OK Airports Improvement Trust Series A (Airport Revenue)		4.00	%		6-1-2017	$	1,250,000	$	1,276,775
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2018		1,240,000		1,301,194
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2018		530,000		566,787
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2019		3,025,000		3,319,151
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2020		1,000,000		1,123,180
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2020		695,000		780,610
Tulsa OK Airports Improvement Trust Series B (Airport Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2018		860,000		902,441
Woodward County OK PFFA Series B (Tax Revenue)		3.25			9-1-2026		2,000,000		2,025,200
									33,289,879
Other: 0.90%
Branch Banking & Trust Municipal Trust Various States Class C (Miscellaneous Revenue, Rabobank LOC) ±144A		1.09			11-15-2017		13,648,476		13,592,926
Branch Banking & Trust Municipal Trust Various States Class D (Miscellaneous Revenue, Rabobank LOC) ±		1.16			12-1-2017		6,370,000		6,370,000
Branch Banking & Trust Municipal Trust Various States Class D (Miscellaneous Revenue, Rabobank LOC) ±144A		1.19			11-15-2019		6,000,000		5,947,560
FHLMC Multifamily Certificates Series M012 Class A1B (Miscellaneous Revenue)		2.70			8-15-2051		15,000,000		15,399,750
Public Housing Capital Fund Trust I (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		7,998,869		8,389,293
Public Housing Capital Fund Trust II (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		2,605,338		2,714,996
									52,414,525
Pennsylvania: 5.29%
Allegheny County PA Airport Authority Pittsburgh International Airport (Airport Revenue, FGIC Insured)		5.00			1-1-2017		2,500,000		2,552,450
Allegheny County PA Hospital Development Authority University of Pittsburgh Medical Center Series A-1 (Health Revenue) ±		1.13			2-1-2021		3,190,000		3,177,814
Allegheny County PA Series C-68 (GO Revenue)		5.00			11-1-2017		1,340,000		1,416,420
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		4,300,000		4,380,453
Beaver County PA IDA Pollution Control Series A (Utilities Revenue) ±		2.70			4-1-2035		1,400,000		1,406,188
Delaware County PA Authority Neumann University (Miscellaneous Revenue)		4.00			10-1-2021		3,215,000		3,495,477
Delaware County PA IDA Resource Recovery Facility Series A (Resource Recovery Revenue)		6.20			7-1-2019		2,010,000		2,018,040
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2018		1,270,000		1,380,274
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue)		5.75			7-1-2017		8,900,000		9,338,236
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Ambac Insured)		5.60			7-1-2017		5,015,000		5,254,416
Erie PA Higher Education Building Authority Mercyhurst College Project (Education Revenue)		5.00			3-15-2018		735,000		762,886
Hempfield PA School District (GO Revenue) ±		0.67			8-1-2017		3,770,000		3,747,229
Lackawanna County PA Riverside School District Project (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-15-2019		1,400,000		1,530,732

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

28 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Lackawanna County PA Riverside School District Project (GO Revenue, Build America Mutual Assurance Company Insured)		4.00	%		10-15-2020	$	1,455,000	$	1,616,854
Manheim Township PA School District Series A (GO Revenue) ±		0.71			5-1-2025		4,700,000		4,642,237
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2017		1,250,000		1,275,475
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2018		1,000,000		1,053,570
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2020		1,315,000		1,457,165
Montgomery County PA IDA Exelon Generation Company LLC (Industrial Development Revenue) ±		2.50			10-1-2030		40,795,000		41,617,427
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50			10-1-2030		30,000,000		30,604,800
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.60			3-1-2034		1,925,000		1,986,562
Nazareth PA Area School District (GO Revenue) ±		0.83			2-1-2031		15,055,000		15,004,566
Northampton County PA General Purpose Hospital Authority St. Luke’s Hospital Project Series C (Health Revenue) ±		4.50			8-15-2032		1,425,000		1,430,999
Penn Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2020		825,000		932,234
Penn Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2021		1,275,000		1,456,063
Pennsylvania EDFA Pennsylvania Rapid Bridge Replacement Project (Industrial Development Revenue)		4.00			6-30-2018		6,675,000		7,035,116
Pennsylvania EDFA Solid Waste Disposal Republic Services Incorporated Project (Resource Recovery Revenue) ±		0.90			6-1-2044		30,000,000		30,000,000
Pennsylvania HEFAR Foundation Indiana University PA Series A (Education Revenue, Syncora Guarantee Incorporated Insured) ±		0.87			7-1-2017		860,000		860,387
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2018		2,200,000		2,326,566
Pennsylvania Public School Building Authority Series 11396 (Miscellaneous Revenue, AGM Insured, Citibank NA LIQ) ø144A		0.59			12-1-2023		5,000,000		5,000,000
Pennsylvania Public School Building Authority The School District of Pennsylvania Project (Miscellaneous Revenue)		5.00			4-1-2017		2,685,000		2,754,810
Pennsylvania Turnpike Commission Series A (Transportation Revenue) ±		1.01			12-1-2017		14,765,000		14,748,611
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		1.56			12-1-2019		18,150,000		18,256,904
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		1.66			12-1-2020		11,300,000		11,399,892
Philadelphia PA Gas Works 10th Series 1998 General Ordinance (Utilities Revenue, AGM Insured)		5.00			7-1-2019		2,500,000		2,799,025
Philadelphia PA Gas Works 17th Series 1975 General Ordinance (Utilities Revenue, AGM Insured)		5.38			7-1-2016		5,000,000		5,000,700
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2016		1,500,000		1,500,150
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2018		8,385,000		8,932,708
Philadelphia PA Housing Authority Series A (Housing Revenue, AGM Insured)		5.25			12-1-2017		2,335,000		2,344,503
Philadelphia PA RDA Transformation Initiative (Miscellaneous Revenue)		5.00			4-15-2017		1,500,000		1,547,565
Philadelphia PA RDA Transformation Initiative Series B (Miscellaneous Revenue)		5.00			4-15-2019		2,000,000		2,207,660
Philadelphia PA RDA Transformation Initiative Series B (Miscellaneous Revenue)		5.00			4-15-2020		1,870,000		2,113,455
Philadelphia PA School District Series A (GO Revenue)		4.00			9-1-2017		500,000		514,505
Philadelphia PA School District Series C (GO Revenue)		5.00			9-1-2017		2,150,000		2,237,183
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2018		5,300,000		5,706,987

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 29

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Philadelphia PA School District Series E (GO Revenue)		5.25	%		9-1-2023	$	7,000,000	$	7,707,840
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2017		1,000,000		1,043,680
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2018		1,000,000		1,083,360
Philadelphia PA Series A (GO Revenue, AGM Insured)		5.00			8-1-2019		4,550,000		4,749,290
Pittsburgh PA Series A (GO Revenue)		4.00			9-1-2016		600,000		603,516
Reading PA Parking Authority CAB (Transportation Revenue, National Insured) ¤		0.00			11-15-2019		1,000,000		928,820
Susquehanna PA Regional Airport Authority Sub Series C (Airport Revenue)		3.00			1-1-2017		1,140,000		1,150,317
Warwick PA School District (GO Revenue)		4.00			2-15-2020		1,000,000		1,108,050
West Mifflin PA School District (GO Revenue, AGM Insured)		3.00			10-1-2016		715,000		718,882
West Mifflin PA School District (GO Revenue, AGM Insured)		3.00			10-1-2017		400,000		409,072
West Mifflin PA School District (GO Revenue, AGM Insured)		4.00			10-1-2017		410,000		424,383
West Mifflin PA School District (GO Revenue, AGM Insured)		5.00			10-1-2018		605,000		654,386
West Mifflin PA School District (GO Revenue, AGM Insured)		5.00			10-1-2019		750,000		831,878
York County PA Refunding Bond (GO Revenue) ±		0.61			6-1-2033		14,690,000		14,650,337
									306,889,105
Puerto Rico: 1.06%
Puerto Rico Commonwealth Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016		3,925,000		3,925,393
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50			7-1-2016		25,890,000		25,892,589
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		11,825,000		12,245,615
Puerto Rico Electric Power Authority Refunding Bond Series SS (Utilities Revenue, National Insured)		4.25			7-1-2017		550,000		550,847
Puerto Rico Highway & Transportation Authority Refunding Bond Series AA (Transportation Revenue, National Insured)		5.50			7-1-2017		7,500,000		7,762,350
Puerto Rico Public Buildings Authority Government Facilities Refunding Bond Series F (Miscellaneous Revenue, CIFG Insured)		5.25			7-1-2017		10,200,000		10,282,926
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		5,405,000		621,575
									61,281,295
Rhode Island: 0.35%
Rhode Island Health & Educational Building Corporation Providence College (Education Revenue)		5.00			11-1-2018		265,000		289,605
Rhode Island Health & Educational Building Corporation Providence Public Schools Program Series A (Miscellaneous Revenue)		4.00			5-15-2017		1,500,000		1,537,995
Rhode Island Health & Educational Building Corporation Providence Public Schools Program Series A (Miscellaneous Revenue)		5.00			5-15-2019		1,000,000		1,098,040
Rhode Island Health & Educational Building Corporation Refunding Bonds Lifespan Obligated Group Issue Series A (Health Revenue, AGM Insured)		5.00			5-15-2018		4,300,000		4,315,007
Rhode Island Student Loan Authority AMT Series A (Education Revenue)		5.00			12-1-2019		450,000		498,960
Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		2.25			6-1-2041		12,525,000		12,610,796
									20,350,403
South Carolina: 0.05%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		179,606		162,542
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		198,490		148,866

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

30 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
South Carolina (continued)
Scago SC Educational Facilities Corporation Calhoun School District Project (Miscellaneous Revenue, AGC Insured)		5.00	%		12-1-2021	$	2,500,000	$	2,546,825
									2,858,233
Tennessee: 1.38%
Clarksville TN Natural Gas Acquisition Corporation (Utilities Revenue)		5.00			12-15-2016		3,230,000		3,291,079
Clarksville TN Natural Gas Acquisition Corporation (Utilities Revenue)		5.00			12-15-2017		1,330,000		1,399,360
Clarksville TN Water Sewer & Gas Refunding Bond (Water & Sewer Revenue)		4.00			2-1-2017		835,000		851,191
Knox County TN Health Educational & Housing Facilities Board University Health Systems Incorporated (Health Revenue)		5.00			4-1-2019		1,450,000		1,488,643
Memphis-Shelby County TN Airport Authority Series A1 (Airport Revenue)		5.75			7-1-2019		1,500,000		1,701,180
Memphis-Shelby County TN Airport Authority Series B (Airport Revenue)		5.38			7-1-2018		1,000,000		1,084,040
Memphis-Shelby County TN Airport Authority Series B (Airport Revenue)		5.50			7-1-2019		1,505,000		1,695,774
Memphis-Shelby County TN Nucor Steel Memphis Incorporation (Industrial Development Revenue) ø		0.70			9-1-2037		10,000,000		10,000,000
Metro Government Nashville & Davidson County TN Prerefunded (Education Revenue) ±		0.99			10-1-2038		4,875,000		4,874,805
Metro Government Nashville & Davidson County TN Unrefunded (Education Revenue) ±		0.99			10-1-2038		5,125,000		5,118,030
Nashville TN DWR (Water & Sewer Revenue)		0.68			7-27-2016		10,000,000		10,000,000
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.00			9-1-2016		7,330,000		7,381,457
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		5,440,000		5,695,462
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		3,300,000		3,582,348
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2019		6,225,000		6,959,177
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2018		8,895,000		9,444,711
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2019		5,110,000		5,597,443
									80,164,700
Texas: 14.17%
Central Texas Regional Mobility Authority Senior Lien (Transportation Revenue)		5.75			1-1-2017		500,000		512,880
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2017		1,500,000		1,532,550
Central Texas Regional Mobility Authority Sub Lien (Transportation Revenue)		5.00			1-1-2018		250,000		263,223
Central Texas Regional Mobility Authority Sub Lien (Transportation Revenue)		5.00			1-1-2019		750,000		808,283
Clear Creek TX Independent School District Series B (GO Revenue) ±		1.35			2-15-2038		12,000,000		12,113,520
Clear Creek TX Independent School District Series B (GO Revenue) ±		3.00			2-15-2032		3,750,000		3,983,250
Coastal Bend TX Health Facilities Development Corporation (Health Revenue, AGM Insured) ±(m)		0.55			7-1-2031		5,100,000		5,100,000
Corpus Christi TX Utility System Junior Lien Series B (Water & Sewer Revenue) ±		2.00			7-15-2045		12,585,000		12,661,517
Cypress Fairbanks TX School District (GO Revenue)		4.25			2-15-2021		2,775,000		2,840,962
Cypress Fairbanks TX School District Series B-1 (GO Revenue) ±		3.00			2-15-2036		10,000,000		10,616,200
Denton TX Independent School District Series A (GO Revenue) ±		2.13			8-1-2042		10,895,000		11,140,900
Denton TX Independent School District Series B (GO Revenue) ±		2.00			8-1-2044		39,075,000		40,293,749
Eagle Mountain & Saginaw TX Independent School District (GO Revenue) ±		2.00			8-1-2050		12,150,000		12,536,370
Fort Bend Independent School District School Building Series B (GO Revenue) ±		2.00			8-1-2040		12,000,000		12,158,640
Georgetown TX Independent School District (GO Revenue) ±		2.00			8-1-2034		4,620,000		4,710,783
Goose Creek TX Consolidated Independent School District (GO Revenue) ±		1.35			2-15-2040		15,160,000		15,290,679
Harlandale TX Independent School District (GO Revenue) ±		2.00			8-15-2045		22,165,000		22,654,625
Harris County TX Health Facilities Development Corporation Series A3 (Health Revenue, AGM Insured) ±(m)		0.55			7-1-2031		16,125,000		16,125,000

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 31

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Harris County TX Health Facilities Development Corporation Series A4 (Health Revenue, AGM Insured) ±(m)		0.55	%		7-1-2031	$	13,475,000	$	13,475,000
Houston TX (GO Revenue)		5.00			3-1-2019		7,000,000		7,763,770
Houston TX Hotel Occupancy (Tax Revenue, Ambac Insured) ¤		0.00			9-1-2016		2,350,000		2,347,016
Houston TX Independent School District Limited Tax (GO Revenue)		4.25			2-15-2021		5,075,000		5,190,304
Houston TX Independent School District School House Series A2R (GO Revenue) ±		4.00			6-1-2039		43,100,000		44,377,484
Houston TX Utility System Series C (Water & Sewer Revenue) ±		1.01			5-15-2034		90,000,000		89,973,000
Hutto TX Independent School District Series 2015 (GO Revenue) ±		3.00			2-1-2055		23,425,000		25,208,111
Laredo TX Public Property Finance Contractual Obligation (GO Revenue)		3.88			2-15-2018		1,420,000		1,479,299
Love Field TX Airport Modernization Corporation Southwest Airlines Company Project (Airport Revenue)		5.00			11-1-2016		5,000,000		5,072,500
Mansfield TX Independent School District (GO Revenue) ±		1.75			8-1-2042		8,455,000		8,542,087
North East TX Independent School District (GO Revenue) ±		2.00			8-1-2044		9,000,000		9,280,710
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		29,470,000		30,135,138
North Texas Health Facilities Development Corporation United Regional Health Care System (Health Revenue, AGM Insured)		5.00			9-1-2017		850,000		889,109
North Texas Higher Education Authority Incorporated Student Loan Series 2 Class A (Education Revenue) ±		1.63			4-1-2037		7,655,000		7,655,919
North Texas Tollway Authority Refunding Bond Series A (Transportation Revenue) ±		1.19			1-1-2050		17,250,000		17,145,120
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2020		1,050,000		1,188,779
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2021		1,860,000		2,157,395
Northside TX Independent School District Building Project (GO Revenue) ±		1.65			8-1-2045		6,250,000		6,343,375
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			8-1-2044		21,195,000		21,856,072
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			6-1-2046		5,000,000		5,199,850
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		2,845,000		2,929,553
Pasadena TX Independent School District Building Project Series B (GO Revenue) ±		3.00			2-15-2044		44,870,000		47,606,173
Pflugerville TX Independent School District Prerefunded School Building Series A (GO Revenue) ±		2.00			8-15-2039		4,830,000		5,005,136
Pflugerville TX Independent School District Unrefunded Balance School (GO Revenue) ±		2.00			8-15-2039		22,870,000		23,591,549
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.53			4-1-2040		30,000,000		30,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ±		0.52			11-1-2040		10,000,000		10,000,000
San Antonio TX Energy Acquisition Public Facility Corporation (Utilities Revenue)		5.25			8-1-2018		510,000		551,983
San Antonio TX Junior Lien Series A (Utilities Revenue) ±		2.00			12-1-2027		20,320,000		20,770,088
San Antonio TX Junior Lien Series B (Utilities Revenue) ±		0.77			2-1-2033		26,700,000		26,605,215
San Antonio TX Junior Lien Series B (Utilities Revenue) ±		1.75			12-1-2027		11,000,000		11,174,130
San Antonio TX Junior Lien Series C (Utilities Revenue) ±		3.00			12-1-2045		12,000,000		12,806,040
San Antonio TX Junior Lien Series D (Utilities Revenue) ±		3.00			12-1-2045		12,000,000		12,942,960
Tarrant County TX ECFA Hendrick Medical Center Group (Health Revenue)		5.00			9-1-2019		655,000		729,565
Tarrant County TX ECFA Hendrick Medical Center Group (Health Revenue)		5.00			9-1-2020		920,000		1,053,658
Tarrant County TX ECFA Hendrick Medical Center Group Edgemere Project Series B (Health Revenue)		5.00			11-15-2020		1,045,000		1,171,832
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2017		14,000,000		14,335,580
Texas Lower Neches Valley Authority Chevron USA Incorporated Project (Industrial Development Revenue)		0.20			2-15-2017		10,000,000		9,993,200
Texas Municipal Gas Acquisition & Supply Corporation II Series A (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.13			9-15-2017		2,735,000		2,735,164
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.88			9-15-2017		26,595,000		26,498,460

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

32 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00	%		12-15-2016	$	500,000	$	509,865
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2017		6,450,000		6,810,491
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2018		4,500,000		4,902,660
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2019		7,000,000		7,815,080
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series A (Utilities Revenue)		5.25			12-15-2017		1,745,000		1,842,319
Texas PFA Assessment Unemployment Compensation Series B (Miscellaneous Revenue)		4.00			1-1-2018		7,495,000		7,518,235
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2017		4,000,000		4,193,520
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2018		3,395,000		3,658,011
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2019		2,375,000		2,623,995
Texas Transportation Commission State Highway Fund 1st Tier Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.65			4-1-2026		17,500,000		17,500,000
Tomball TX Independent School District Series B2 (GO Revenue) ±		3.00			2-15-2039		10,000,000		10,439,400
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		3.00			1-10-2017		405,000		409,564
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2018		640,000		668,621
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2019		1,010,000		1,083,548
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2020		500,000		547,990
									821,646,754
Utah: 0.01%
Utah Charter School Finance Authority Summit Academy Series A (Education Revenue)		5.13			6-15-2017		325,000		330,467
Vermont: 0.32%
Vermont Student Assistance Corporation Series BCL-A1 (Education Revenue) ±		2.18			6-1-2022		18,272,740		18,480,319
Virgin Islands: 0.13%
Virgin Islands PFA Sub Lien Series C (Miscellaneous Revenue)		5.00			10-1-2016		7,500,000		7,563,300
Virginia: 1.24%
Charles City VA EDA Solid Waste Disposal Waste Management Incorporated (Resource Recovery Revenue) ±		1.60			8-1-2027		3,150,000		3,170,003
Gloucester County VA EDA Solid Waste Disposal Waste Management Services Series A (Resource Recovery Revenue) ±		1.60			9-1-2038		1,500,000		1,509,015
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2019		1,250,000		1,399,800
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2020		1,000,000		1,152,970
Halifax County VA IDA (Utilities Revenue) ±		2.15			12-1-2041		57,500,000		59,704,550
Marquis VA CDA CAB Series A (Tax Revenue) (i)		5.10			9-1-2036		2,169,000		1,725,852
Marquis VA CDA CAB Series C (Tax Revenue) ¤(i)		0.00			9-1-2041		3,493,000		488,042
Marquis VA CDA Convertible CAB (Tax Revenue) ±144A		7.50			9-1-2045		680,000		449,065
Washington VA County IDA Series C (Health Revenue)		7.25			7-1-2019		1,995,000		2,157,752
									71,757,049

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

Portfolio of investments—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 33

Security name	Interest rate			Maturity date		Principal		Value
Washington: 0.18%
Washington HCFR Catholic Health Initiatives Series B (Health Revenue) ±		1.39	%		1-1-2035	$	8,550,000	$	8,483,738
Washington Health Care Facilities Authority Series 2015 (Health Revenue)		5.00			7-1-2020		850,000		958,800
Washington Housing Financing Commission Nonprofit Wesley Homes Series A (Health Revenue, AGC Insured)		5.38			1-1-2017		1,110,000		1,134,753
									10,577,291
West Virginia: 0.05%
West Virginia EDA PCR Appalachian Power Company Series D (Resource Recovery Revenue)		3.25			5-1-2019		2,745,000		2,868,964
Wisconsin: 1.43%
Johnson Creek WI School District BAN (Miscellaneous Revenue) ##		3.00			3-1-2020		2,550,000		2,592,118
Milwaukee WI RDA Public Schools Refunding Bond Series A (Miscellaneous Revenue)		5.00			8-1-2018		4,320,000		4,677,221
Milwaukee WI RDA Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.25			12-1-2038		1,545,000		1,545,000
Racine WI Elderly Housing Authority Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.25			10-1-2042		2,200,000		2,200,000
Waukesha County WI Series B (Miscellaneous Revenue) ##		3.00			5-1-2021		17,400,000		18,049,890
Wisconsin Airport Facilities PFA Senior Obligation Group Series B (Airport Revenue)		5.00			7-1-2022		14,590,000		16,403,683
Wisconsin HEFA Ascension Health Alliance Series B (Health Revenue) ±		4.00			11-15-2043		13,000,000		14,128,790
Wisconsin HEFA Mercy Alliance Incorporated Project Series A (Health Revenue)		5.00			6-1-2019		2,100,000		2,200,296
Wisconsin HEFA Ministry Healthcare Series C (Health Revenue) ##		5.00			8-15-2016		500,000		502,835
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2017		200,000		203,694
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue) ##		4.00			3-1-2018		300,000		312,636
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2019		445,000		473,516
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		5.00			3-1-2020		375,000		420,068
Wisconsin HEFA Wheaton Franciscan Healthcare (Health Revenue) ##		5.25			8-15-2017		8,230,000		8,277,569
Wisconsin HEFAR Series 2012 Tender Option Bond Trust Receipts Series 2015-XF1028 (Health Revenue, Deutsche Bank LIQ) ø144A		0.59			11-15-2044		10,880,000		10,880,000
									82,867,316
Total Municipal Obligations (Cost $5,601,721,269)									5,638,166,598
Other: 1.73%
Eaton Vance Municipal Income Trust ±144A§		1.91			9-1-2019		23,000,000		23,034,960
Nuveen California AMT-Free Municipal Income Fund, Institutional MuniFund Term Preferred Shares ±144A§		0.88			7-1-2018		3,000,000		2,988,360
Nuveen Dividend Advantage Municipal Fund 3 Institutional MuniFund Term Preferred Shares ±144A		1.16			10-1-2017		62,000,000		62,159,960
Nuveen Texas Quality Income Municipal Fund Institutional MuniFund Term Preferred Shares ±144A		1.01			11-1-2018		12,000,000		12,066,000
Total Other (Cost $100,000,000)									100,249,280
	Yield					Shares
Short-Term Investments: 0.72%
Investment Companies: 0.70%
Wells Fargo Municipal Cash Management Fund Institutional Class ##(l)(u)		0.30					40,594,369		40,594,369

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

34 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.02%
Treasury Bill (z)#		0.26	%		9-15-2016	$	925,000	$	924,577
Total Short-Term Investments (Cost $41,518,850)									41,518,946

Total investments in securities (Cost $5,743,240,119) *	99.65	%		5,779,934,824
Other assets and liabilities, net	0.35			20,536,285
Total net assets	100.00	%	$	5,800,471,109

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

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

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

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

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

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

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

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

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

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

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

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

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

(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 $5,743,324,677 and unrealized gains (losses) consists of:

Gross unrealized gains	$	53,540,920
Gross unrealized losses		(16,930,773	)
Net unrealized gains	$	36,610,147

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

Statement of assets and liabilities—June 30, 2016 Wells Fargo Short-Term Municipal Bond Fund 35

Assets
Investments
In unaffiliated securities, at value (cost $5,702,645,750)	$	5,739,340,455
In affiliated securities, at value (cost $40,594,369)		40,594,369
Total investments, at value (cost $5,743,240,119)		5,779,934,824
Cash		135,342
Receivable for investments sold		12,250,679
Receivable for Fund shares sold		11,621,678
Receivable for interest		39,893,982
Prepaid expenses and other assets		231,519
Total assets		5,844,068,024
Liabilities
Dividends payable		1,156,638
Payable for investments purchased		23,721,667
Payable for Fund shares redeemed		15,887,893
Payable for daily variation margin on open futures contracts		78,125
Management fee payable		1,146,885
Distribution fee payable		51,246
Administration fees payable		604,388
Accrued expenses and other liabilities		950,073
Total liabilities		43,596,915
Total net assets	$	5,800,471,109
NET ASSETS CONSIST OF
Paid-in capital	$	5,765,741,499
Undistributed net investment income		163,950
Accumulated net realized gains on investments		115,043
Net unrealized gains on investments		34,450,617
Total net assets	$	5,800,471,109
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	3,362,147,190
Shares outstanding – Class A1		337,447,798
Net asset value per share – Class A		$9.96
Maximum offering price per share – Class A2		$10.16
Net assets – Class C	$	82,110,853
Shares outstanding – Class C1		8,240,596
Net asset value per share – Class C		$9.96
Net assets – Administrator Class	$	95,120,814
Shares outstanding – Administrator Class1		9,540,435
Net asset value per share – Administrator Class		$9.97
Net assets – Institutional Class	$	2,261,092,252
Shares outstanding – Institutional Class1		226,522,042
Net asset value per share – Institutional Class		$9.98

¹  The Fund has an unlimited number of authorized shares.

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

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

36 Wells Fargo Short-Term Municipal Bond Fund Statement of operations—year ended June 30, 2016

Investment income
Interest	$	102,853,158
Income from affiliated securities		27,841
Total investment income		102,880,999
Expenses
Management fee		19,352,934
Administration fees
Class A		4,907,743
Class C		148,085
Administrator Class		169,623
Institutional Class		1,722,560
Investor Class		952,004	1
Shareholder servicing fees
Class A		7,668,349
Class C		231,382
Administrator Class		384,392
Investor Class		1,250,818	1
Distribution fee
Class C		694,147
Custody and accounting fees		297,419
Professional fees		62,985
Registration fees		186,455
Shareholder report expenses		276,842
Trustees’ fees and expenses		24,021
Other fees and expenses		68,026
Total expenses		38,397,785
Less: Fee waivers and/or expense reimbursements		(5,270,784	)
Net expenses		33,127,001
Net investment income		69,753,998
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(813,090	)
Futures transactions		1,126,432
Net realized gains on investments		313,342
Net change in unrealized gains (losses) on:
Unaffiliated securities		27,924,213
Futures transactions		(2,244,088	)
Net change in unrealized gains (losses) on investments		25,680,125
Net realized and unrealized gains (losses) on investments		25,993,467
Net increase in net assets resulting from operations	$	95,747,465

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

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

Statement of changes in net assets Wells Fargo Short-Term Municipal Bond Fund 37

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	69,753,998					$	59,559,572
Net realized gains on investments					313,342						4,458,534
Net change in unrealized gains (losses) on investments					25,680,125						(47,490,704	)
Net increase in net assets resulting from operations					95,747,465						16,527,402
Distributions to shareholders from
Net investment income
Class A					(34,052,798	)					(18,228,640	)
Class C					(323,418	)					(168,307	)
Administrator Class					(1,830,622	)					(4,821,365	)
Institutional Class					(28,544,540	)					(19,067,395	)
Investor Class					(4,994,406	)1					(17,268,417	)
Net realized gains
Class A					(2,591,530	)					(1,768,741	)
Class C					(67,566	)					(103,290	)
Administrator Class					(68,933	)					(424,465	)
Institutional Class					(1,635,693	)					(1,497,994	)
Investor Class					0	1					(1,714,158	)
Total distributions to shareholders					(74,109,506	)					(65,062,772	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		222,039,298			2,209,060,220			100,470,523			1,002,622,059
Class C		619,066			6,157,726			652,931			6,524,656
Administrator Class		6,630,944			66,017,256			24,472,555			245,072,969
Institutional Class		144,491,550			1,439,440,660			146,967,678			1,470,629,417
Investor Class		7,146,734	1		71,071,037	1		43,428,997			434,388,748
					3,791,746,899						3,159,237,849
Reinvestment of distributions
Class A		3,592,827			35,741,018			1,932,583			19,296,238
Class C		34,436			342,547			23,645			236,105
Administrator Class		189,138			1,882,997			494,039			4,945,102
Institutional Class		1,702,491			16,967,909			1,063,590			10,639,180
Investor Class		384,006	1		3,819,645	1		1,840,275			18,395,287
					58,754,116						53,511,912
Payment for shares redeemed
Class A		(112,700,409	)		(1,121,238,204	)		(81,006,886	)		(809,103,344	)
Class C		(2,801,679	)		(27,864,138	)		(3,629,431	)		(36,231,608	)
Administrator Class		(48,717,360	)		(485,134,480	)		(29,948,664	)		(300,075,428	)
Institutional Class		(110,273,026	)		(1,098,863,134	)		(95,400,356	)		(954,344,112	)
Investor Class		(169,667,638	)1		(1,689,668,427	)1		(108,020,090	)		(1,078,832,475	)
					(4,422,768,383	)					(3,178,586,967	)
Net increase (decrease) in net assets resulting from capital share transactions					(572,267,368	)					34,162,794
Total decrease in net assets					(550,629,409	)					(14,372,576	)
Net assets
Beginning of period					6,351,100,518						6,365,473,094
End of period				$	5,800,471,109					$	6,351,100,518
Undistributed net investment income				$	163,950					$	64,590

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

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

38 Wells Fargo Short-Term Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.93			$10.00			$9.97			$10.01			$9.94
Net investment income		0.11			0.09			0.11			0.11			0.19
Net realized and unrealized gains (losses) on investments		0.04			(0.06	)		0.05			0.00	1		0.08
Total from investment operations		0.15			0.03			0.16			0.11			0.27
Distributions to shareholders from
Net investment income		(0.11	)		(0.09	)		(0.11	)		(0.11	)		(0.19	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.12	)		(0.10	)		(0.13	)		(0.15	)		(0.20	)
Net asset value, end of period		$9.96			$9.93			$10.00			$9.97			$10.01
Total return2		1.49	%		0.27	%		1.55	%		1.07	%		2.77	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.75	%		0.76	%		0.77	%		0.78	%
Net expenses		0.62	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.11	%		0.89	%		1.08	%		1.10	%		1.91	%
Supplemental data
Portfolio turnover rate		16	%3		24	%3		28	%3		39	%3		72	%
Net assets, end of period (000s omitted)		$3,362,147			$2,228,977			$2,031,798			$1,620,994			$1,467,816

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

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

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

Financial highlights Wells Fargo Short-Term Municipal Bond Fund 39

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.93			$10.00			$9.97			$10.01			$9.94
Net investment income		0.04			0.01			0.03			0.04			0.12
Net realized and unrealized gains (losses) on investments		0.04			(0.06	)		0.05			0.00	1		0.08
Total from investment operations		0.08			(0.05	)		0.08			0.04			0.20
Distributions to shareholders from
Net investment income		(0.04	)		(0.01	)		(0.03	)		(0.04	)		(0.12	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.05	)		(0.02	)		(0.05	)		(0.08	)		(0.13	)
Net asset value, end of period		$9.96			$9.93			$10.00			$9.97			$10.01
Total return2		0.73	%		(0.48	)%		0.79	%		0.32	%		2.01	%
Ratios to average net assets (annualized)
Gross expenses		1.50	%		1.50	%		1.51	%		1.52	%		1.53	%
Net expenses		1.37	%		1.35	%		1.35	%		1.35	%		1.35	%
Net investment income		0.35	%		0.14	%		0.34	%		0.37	%		1.18	%
Supplemental data
Portfolio turnover rate		16	%3		24	%3		28	%3		39	%3		72	%
Net assets, end of period (000s omitted)		$82,111			$103,146			$133,463			$172,364			$211,286

¹  Amount is less than $0.005.

² Total return calculations do not include any sales charges.

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

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

40 Wells Fargo Short-Term Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.95			$10.03			$9.99			$10.03			$9.96
Net investment income		0.11	1		0.09			0.11			0.11			0.19
Net realized and unrealized gains (losses) on investments		0.03			(0.07	)		0.06			0.00	2		0.08
Total from investment operations		0.14			0.02			0.17			0.11			0.27
Distributions to shareholders from
Net investment income		(0.11	)		(0.09	)		(0.11	)		(0.11	)		(0.19	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.12	)		(0.10	)		(0.13	)		(0.15	)		(0.20	)
Net asset value, end of period		$9.97			$9.95			$10.03			$9.99			$10.03
Total return		1.42	%		0.17	%		1.65	%		1.07	%		2.77	%
Ratios to average net assets (annualized)
Gross expenses		0.66	%		0.68	%		0.70	%		0.71	%		0.72	%
Net expenses		0.59	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.08	%		0.89	%		1.08	%		1.07	%		1.82	%
Supplemental data
Portfolio turnover rate		16	%3		24	%3		28	%3		39	%3		72	%
Net assets, end of period (000s omitted)		$95,121			$511,894			$565,737			$547,806			$201,225

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

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

Financial highlights Wells Fargo Short-Term Municipal Bond Fund 41

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.95			$10.02			$9.99			$10.02			$9.96
Net investment income		0.13			0.11			0.13			0.13			0.21
Net realized and unrealized gains (losses) on investments		0.04			(0.06	)		0.05			0.01			0.07
Total from investment operations		0.17			0.05			0.18			0.14			0.28
Distributions to shareholders from
Net investment income		(0.13	)		(0.11	)		(0.13	)		(0.13	)		(0.21	)
Net realized gains		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.14	)		(0.12	)		(0.15	)		(0.17	)		(0.22	)
Net asset value, end of period		$9.98			$9.95			$10.02			$9.99			$10.02
Total return		1.71	%		0.47	%		1.75	%		1.37	%		2.88	%
Ratios to average net assets (annualized)
Gross expenses		0.42	%		0.42	%		0.43	%		0.45	%		0.45	%
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Net investment income		1.33	%		1.09	%		1.29	%		1.30	%		2.10	%
Supplemental data
Portfolio turnover rate		16	%1		24	%1		28	%1		39	%1		72	%
Net assets, end of period (000s omitted)		$2,261,092			$1,895,713			$1,382,576			$1,185,687			$935,583

¹  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

42 Wells Fargo Short-Term Municipal Bond Fund Notes to financial statements

1. ORGANIZATION

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

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

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

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

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

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Notes to financial statements Wells Fargo Short-Term Municipal Bond Fund 43

Futures contracts

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

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Security transactions and income recognition

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized gains on investments
$91,146	$(91,146)

As of June 30, 2016, the Fund had current year deferred post-October capital losses consisting of $2,044,486 in long-term losses which will be recognized on the first day of the following fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

44 Wells Fargo Short-Term Municipal Bond Fund Notes to financial statements

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	5,622,766,848	$	15,399,750	$	5,638,166,598
Other		0		100,249,280		0		100,249,280
Short-term investments
Investment companies		40,594,369		0		0		40,594,369
U.S. Treasury securities		924,577		0		0		924,577
Total assets	$	41,518,946	$	5,723,016,128	$	15,399,750	$	5,779,934,824
Liabilities
Futures contracts	$	78,125	$	0	$	0	$	78,125
Total liabilities	$	78,125	$	0	$	0	$	78,125

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1. The Fund had no material transfers between Level 2 and Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.32% of the Fund’s average daily net assets.

Notes to financial statements Wells Fargo Short-Term Municipal Bond Fund 45

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class C		0.16	%
Administrator Class		0.10
Institutional Class,		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.63% for Class A shares, 1.38% for Class C shares, 0.60% for Administrator Class shares, and 0.40% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prior to November 1, 2015, the Fund’s expenses were capped at 0.60% for Class A shares and 1.35% for Class C shares.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $6,740 from the sale of Class A shares and $673 in contingent deferred sales charges from redemptions of Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Administrator Class, and Investor Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $1,460,013,620 and $862,182,669, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

46 Wells Fargo Short-Term Municipal Bond Fund Notes to financial statements

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

At June 30, 2016, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at June 30, 2016		Unrealized losses
9-30-2016	JPMorgan	1,000 Short		5-Year U.S. Treasury Notes	$	122,164,063	$	(2,244,088	)

The Fund had an average notional amount of $54,386,336 in short futures contracts during the year ended June 30, 2016.

On June 30, 2016, the cumulative unrealized losses on futures contracts in the amount of $2,244,088 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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

Derivative type	Counterparty		Gross amounts of liabilities in the Statement of Assets and Liabilities		Amounts subject to netting agreements		Collateral pledged1			Net amount of liabilities
Futures – variation margin		JPMorgan	$	78,125	$	0	$	(78,125	)	$	0

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

Notes to financial statements Wells Fargo Short-Term Municipal Bond Fund 47

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Ordinary income	$	2,626,176	$	3,350,823
Tax-exempt income		69,745,784		59,554,124
Long-term capital gain		1,737,546		2,157,825

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed tax-exempt income	Unrealized gains	Post-October capital losses deferred
$1,334,990	$36,610,147	$(2,044,486)

9. INDEMNIFICATION

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

48 Wells Fargo Short-Term Municipal Bond Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Short-Term Municipal Bond Fund (formerly known as Wells Fargo Advantage Short-Term Municipal Bond Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Short-Term Municipal Bond Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

Other information (unaudited) Wells Fargo Short-Term Municipal Bond Fund 49

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $1,737,546 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2016.

For the fiscal year ended June 30, 2016, $2,626,176 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

50 Wells Fargo Short-Term Municipal Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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 Short-Term Municipal Bond Fund 51

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.
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.

52 Wells Fargo Short-Term Municipal Bond Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Short-Term Municipal Bond Fund (the “Fund”): (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 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.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

Other information (unaudited) Wells Fargo Short-Term Municipal Bond Fund 53

The Board noted that the performance of the Fund (Class A) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than or in range of its benchmark, the Barclays 1-3 Year Composite Municipal Bond Index, for all periods under review except the one-year period.

The Board also received and considered information regarding the 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 in comparison to the median ratios of funds in class-specific 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 the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

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

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or equal to the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

54 Wells Fargo Short-Term Municipal Bond Fund Other information (unaudited)

Economies of Scale

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

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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 Short-Term Municipal Bond Fund 55

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

244409 08-16 A256/AR256 6-16

Annual Report

June 30, 2016

Wells Fargo
Small Cap Core Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	21
Report of independent registered public accounting firm	26
Other information	27
List of abbreviations	30

The views expressed and any forward-looking statements are as of June 30, 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 Small Cap Core Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

Despite significant market fluctuations over the course of the year, U.S. stocks generally delivered positive results overall for the 12-month reporting period; large- and mid-cap stocks generally outperformed small-cap stocks, which delivered negative results for the period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Small Cap Core Fund for the 12-month period that ended June 30, 2016. Please note that the Fund acquired the assets of the former Golden Small Cap Core Fund in a merger transaction on May 20, 2016 and has also adopted its accounting and performance history. During the 12-month period, which began with the third quarter of 2015, U.S. and international stock markets experienced heightened volatility, with intermittent rebounds interspersed with sell-offs. The U.S. economy displayed resilience throughout the period, although growth was somewhat sluggish amid ongoing pressures that included slowing growth in China, a strengthening U.S. dollar, and uncertainty regarding interest-rate increases by the U.S. Federal Reserve (Fed); international economies faced deeper ongoing challenges. During June 2016, global markets became especially volatile as the U.K.’s vote over whether to leave the European Union (E.U.) approached. Despite significant market fluctuations over the course of the year, U.S. stocks generally delivered positive results overall for the 12-month reporting period; large- and mid-cap stocks generally outperformed small-cap stocks, which delivered negative results for the period. International markets generally declined as well.

In the third quarter of 2015, China’s slowdown took a toll on economies and markets worldwide.

U.S. stocks sagged during the quarter, experiencing the most volatility since 2011. Economic data released during the quarter suggested the U.S. economy remained solid but had lost some steam, burdened by the drag of the U.S. dollar’s strength coupled with global economic turmoil. The fact that the Fed left the federal funds interest rate unchanged at its September 2015 meeting surprised investors and fueled increased uncertainty about the U.S. economy’s stamina to remain healthy while facing the challenges of slowing in China and troubles elsewhere in the world. Outside the U.S., markets were even more volatile and delivered generally weaker quarterly results, also largely due to investors’ increasing anxiety over China’s weakened economy. Because China is the world’s largest importer of many commodities, a number of emerging markets—key commodities exporters—struggled under the dual strains of reduced demand for commodities and, because of weaker demand, lower prices for the commodities they did sell. In the eurozone, however, where only about 3% of exports are sent to China, household spending and business investment appeared relatively unaffected by troubles elsewhere. However, the European Central Bank (ECB) warned that China’s slowing could lead to slower growth and lower inflation rates in the eurozone than previously forecast and indicated additional stimulus could be provided should this occur.

Despite ongoing concerns, U.S. stocks generally rose in the fourth quarter of 2015; international markets lagged.

While the broad U.S. stock market bounced back in the quarter, stock markets outside the U.S. failed to keep pace as economic concerns, including China’s ongoing slowdown, continued to affect many countries. U.S. economic data released during the quarter indicated the economy remained solid, although the strong U.S. dollar and weakness in international economies remained headwinds. In December, the Fed, as expected, raised its target interest rate by 25 basis points (bps; 100 bps equals 1.00%) after keeping it near zero for seven years. The move reflected confidence in the U.S. economy’s ability to stay healthy with less central-bank support. The Fed also clarified that future interest-rate increases would be gradual.

In the first quarter of 2016, market volatility increased globally amid ongoing concerns.

Stock markets worldwide fluctuated widely in the first quarter of 2016. Most declined sharply in the first six weeks of the year on concerns such as weak global growth, falling commodity prices, and uncertainty over the timing and impact of the Fed’s interest-rate increases. As the quarter progressed, fears abated

Letter to shareholders (unaudited) Wells Fargo Small Cap Core Fund 3

somewhat and global markets generally rallied back. The U.S. economy ended the quarter on a positive note as much of the quarter’s data reflected resiliency. With ongoing uncertainties about global growth and financial markets, however, the Fed held off from raising the target interest rate during the quarter. Outside the U.S., the eurozone fell into deflation in February; in response, the ECB announced an expansion of its stimulus program. In China, the government in March set a growth rate of 6.5% to 7.0% for 2016, an acknowledgment of weakening growth. In emerging markets, although central-bank stimulus and improved prices for oil and other commodities led to stock-market rallies in the quarter, many of these countries’ economies face credit downgrades due to challenges such as the likelihood of a stronger U.S. dollar, which would make dollar-denominated debt more expensive.

Worries over interest rates and the U.K.’s vote largely drove the markets during the second quarter of 2016.

U.S. stocks began the quarter in positive territory but started to lose steam in early May on worries that a possible June interest-rate increase by the Fed could hurt the market. In mid-May, stocks briefly plunged following comments by Fed officials noting that a June interest-rate increase remained on the table. But once investors had processed this information, stocks again rallied, finishing up for the month. The first three weeks of June brought heightened volatility, spurred largely by a disappointing jobs report and uncertainty over whether the U.K. would remain in the E.U. The U.K.’s Brexit vote on June 23 shocked countries in Europe and much of the rest of the world. Stock markets plummeted as investors worried that the U.K.’s departure from the E.U. would slow global growth and prolong the low-interest-rate environment. Following the initial rout, however, U.S. stocks rallied as investors seemed to decide that any negative effects would be more localized and not create a serious risk for global growth. By quarter-end, the broad U.S. stock market had moved back into positive territory.

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

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.

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 Small Cap Core Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Golden Capital Management, LLC

Portfolio managers

John R. Campbell, CFA^®

Justin P. Carr, CFA^®

Greg W. Golden, CFA^®

Average annual total returns (%) as of June 30, 2016¹

		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 (WOSCX)	5-20-2016		(15.09	)		7.46		3.31		(9.91	)		8.74		3.92		1.47		1.35
Class C (WCSCX)	5-20-2016		(11.51	)		7.93		3.14		(10.61	)		7.93		3.14		2.22		2.10
Class R6 (WRSCX)	5-20-2016		–			–		–		(9.57	)		9.13		4.29		1.04		0.90
Administrator Class (WNSCX)	5-20-2016		–			–		–		(9.83	)		8.85		4.02		1.39		1.25
Institutional Class (WYSCX)	9-13-2005		–			–		–		(9.57	)		9.13		4.29		1.14		1.00
Russell 2000® Index4	–		–			–		–		(6.73	)		8.35		6.20		–		–

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. 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. 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 and smaller-company 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 Small Cap Core Fund 5

Growth of $10,000 investment as of June 30, 2016⁵

¹  Historical performance shown for the Class A, Class C and Administrator Class shares prior to their inception reflects the performance of the Institutional Class shares, and are adjusted to reflect Class A, Class C and Administrator shares expenses, respectively. Historical performance shown for the Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and has not been adjusted to reflect Class R6 shares expenses. If these expenses had been included, returns for Class R6 shares would be higher. Historical performance shown for all classes of the Fund prior to May 20, 2016 is based on the performance of the Fund’s predecessor, Golden Small Cap Core Fund.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through July 31, 2019, 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. Without this cap, the Fund’s returns would have been lower.

⁴  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.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Russell 2000^® 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 investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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

6 Wells Fargo Small Cap Core Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed the Russell 2000^® Index for the 12-month period that ended June 30, 2016.

n From a sector-weighting perspective, the largest detractors included underweights to the utilities and financials sectors and overweights to the health care and energy sectors.

n As market volatility increased during the period, we remained focused on identifying strong companies with solid fundamentals and attractive valuations that would offer potential for capital appreciation over time.

Market volatility in the second half of 2015 and the beginning of 2016, coupled with a very-low-interest-rate environment, drove many investors into lower-risk sectors, such as utilities and telecommunication services. Also, continued weakness in oil prices compared with prior-year levels caused many energy-related companies to sell off sharply. The Fund, while broadly diversified, was not positioned for the themes that dominated the market during the reporting period.

Fund positioning drove underperformance for the period.

The Fund’s underweights to the utilities sector and to the real estate investment trust (REIT) industry within the financials sector detracted significantly from performance. Investors seeking yield drove stock prices for both utilities and REITs far above market averages for the 12-month period. Overweights to two of the weakest-performing sectors for the period, energy and health care, also hindered results. Within energy, the Fund primarily was focused on companies in the oil-tanker storage segment, such as Teekay Tankers Limited and Navios Maritime Acquisition Corporation. These companies experienced weakness as tanker lease rates began weakening due to concerns of oversupply in the market. Within health care, pharmaceutical companies Lannett Company, Incorporated, and Sucampo Pharmaceuticals, Incorporated, drove relative underperformance; weakening fundamentals and analyst downgrades led to stock declines for both companies.

The Fund benefited from stock selection within the materials sector. Trinseo S.A., a manufacturer of plastic, latex, and rubber products for the automotive industry, consumer electronics, and portable appliances, rallied strongly in response to strong earnings growth and the announcement of a share buy-back plan.

Current Fund positioning includes overweights to the health care, information technology, and industrials sectors and underweights to the financials, utilities, and consumer discretionary sectors.

Ten largest holdings (%) as of June 30, 20166
Gigamon Incorporated	2.41
Cirrus Logic Incorporated	2.35
Supernus Pharmaceuticals Incorporated	2.13
AmSurg Corporation	2.09
Argan Incorporated	2.09
Deluxe Corporation	2.08
FBL Financial Group Incorporated	2.08
Inphi Corporation	2.05
Sanmina Corporation	2.04
QTS Realty Trust Incorporated Class A	2.03

Our investment process seeks attractively valued companies likely to exceed earnings expectations.

Our investment process, which we refer to as an active-quant approach, combines quantitative and qualitative evaluations of each company being considered. Our quantitative evaluation looks at valuation, earnings, and momentum related factors to produce an objective, unbiased review of each company in the investment universe and its ranking compared with other companies being considered. A company’s ranking is the primary basis for our buy and sell decisions. We also place a high value on qualitative analysis; our investment professionals evaluate each company in light of overall market conditions and the company’s potential impact on the Fund from a risk/reward perspective. We have developed measurement tools and tailored our investment process in support of two key tenets of our investment philosophy: Companies purchased should be available at a reasonable price, and they should be profitable and capable of increasing revenues and earnings.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Small Cap Core Fund 7

Despite recent and possible future risks, we believe our process will continue uncovering potentially attractive investment opportunities.

As we enter the third quarter of 2016, investors have appeared most concerned about geopolitical risks and potential contagion in the financials markets. The Brexit vote has set off a new round of global market volatility that likely will remain elevated for a while. Only time will tell if current fears will be realized; historically, many geopolitical shocks have been short term in nature, and economies and markets have adjusted to new realities.

While heightened volatility has been affecting all asset classes, we believe the impact on currencies and central banks’ responses to currency moves are likely to be the most significant factors influencing the U.S. economy and markets over the near term. The British pound already has depreciated significantly in response to the Brexit vote and could weaken further, which would make goods from the U.K. cheaper and thus more attractive to global consumers. In turn, global central banks could be compelled to take steps to make their currencies and goods more competitively priced in global markets. The U.S. dollar’s position as the global reserve currency may lead to defensive flows into dollar-denominated assets, which then may cause the dollar to strengthen. As a result, the U.S. Federal Reserve (Fed) could delay interest-rate increases due to the heightened risks and uncertainty in global markets. If the Fed does delay rate increases and other major central banks continue to pursue monetary-stimulus measures, we believe that monetary authorities would be doing the best they can to create a supportive environment for risk assets like stocks.

As a result of the increased volatility, risk aversion, and low-interest-rate environment, we believe investors may have been overpaying for lower-volatility and higher-yielding stocks in recent months. Although the market has not been rewarding companies displaying the traditional value metrics on which we focus, we believe companies with attractive valuations that potentially would benefit from positive economic growth remain the most attractive investment opportunities. We will stick to our investment philosophy centered on a disciplined, objective, and repeatable stock-selection process and emphasize firms we view as attractively valued and most likely to exceed earnings expectations.

Sector allocation as of June 30, 2016⁷

Please see footnotes on page 5.

8 Wells Fargo Small Cap Core Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	948.10	$	6.54		1.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.15	$	6.77		1.35	%
Class C
Actual	$	1,000.00	$	944.30	$	10.15		2.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.42	$	10.52		2.10	%
Class R6
Actual	$	1,000.00	$	950.00	$	4.36		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.39	$	4.52		0.90	%
Administrator Class
Actual	$	1,000.00	$	948.50	$	6.06		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.64	$	6.28		1.25	%
Institutional Class
Actual	$	1,000.00	$	950.00	$	5.24		1.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.49	$	5.43		1.08	%

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

Portfolio of investments—June 30, 2016 Wells Fargo Small Cap Core Fund 9

Security name	Shares		Value
Common Stocks: 98.95%
Consumer Discretionary: 9.00%
Auto Components: 1.13%
Tower International Incorporated		61,421	$	1,264,044
Hotels, Restaurants & Leisure: 3.37%
Denny’s Corporation †		164,515		1,765,246
Ruth’s Chris Steak House Incorporated		126,791		2,022,316
				3,787,562
Internet & Catalog Retail: 1.97%
Nutri System Incorporated		87,315		2,214,308
Specialty Retail: 1.25%
Express Incorporated †		96,682		1,402,856
Textiles, Apparel & Luxury Goods: 1.28%
Skechers U.S.A. Incorporated †		48,512		1,441,777
Consumer Staples: 3.56%
Food Products: 3.56%
Cal-Maine Foods Incorporated		44,423		1,968,827
Dean Foods Company		112,285		2,031,236
				4,000,063
Energy: 3.69%
Energy Equipment & Services: 1.37%
Matrix Service Company †		93,253		1,537,742
Leisure Products: 1.61%
Smith & Wesson Holding Corporation †		66,608		1,810,405
Oil, Gas & Consumable Fuels: 0.71%
Navios Maritime Acquisition Corporation		504,270		791,704
Financials: 21.37%
Banks: 1.85%
FCB Financial Holdings Class A †		61,267		2,083,078
Capital Markets: 1.45%
Evercore Partners Incorporated Class A		36,957		1,633,130
Insurance: 13.32%
AmTrust Financial Services Incorporated		70,063		1,716,544
Employers Holdings Incorporated		70,151		2,035,782
FBL Financial Group Incorporated		38,448		2,332,640
Federated National Holding Company		93,454		1,779,364
Heritage Insurance Holdings		136,275		1,631,212
Maiden Holdings Limited		124,830		1,527,919
National General Holdings Corporation		101,911		2,182,934

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

10 Wells Fargo Small Cap Core Fund Portfolio of investments—June 30, 2016

Security name		Shares		Value
Insurance (continued)
United Insurance Holdings Company			106,934	$	1,751,579
					14,957,974
REITs: 4.75%
Ashford Hospitality Trust Incorporated			273,882		1,470,746
InfraReit Incorporated			90,017		1,578,898
QTS Realty Trust Incorporated Class A			40,808		2,284,432
					5,334,076
Health Care: 17.17%
Biotechnology: 1.29%
MiMedx Group Incorporated †			181,504		1,448,402
Health Care Equipment & Supplies: 3.76%
ICU Medical Incorporated †			17,861		2,013,828
NuVasive Incorporated †			37,020		2,210,834
					4,224,662
Health Care Providers & Services: 8.27%
AmSurg Corporation †			30,256		2,346,050
Biotelemetry Incorporated †			134,314		2,189,318
HealthSouth Corporation			46,749		1,814,796
PharMerica Corporation †			66,119		1,630,495
Select Medical Holdings Corporation †			120,251		1,307,128
					9,287,787
	��
Life Sciences Tools & Services: 1.72%
INC Research Holdings Incorporated Class A †			50,728		1,934,259
Pharmaceuticals: 2.13%
Supernus Pharmaceuticals Incorporated †			117,414		2,391,723
Industrials: 17.38%
Airlines: 1.88%
SkyWest Incorporated			79,718		2,109,338
Commercial Services & Supplies: 3.78%
Deluxe Corporation			35,184		2,335,162
UniFirst Corporation			16,543		1,914,356
					4,249,518
Construction & Engineering: 5.45%
Argan Incorporated			56,173		2,343,538
Comfort Systems USA Incorporated			61,462		2,001,817
EMCOR Group Incorporated			36,030		1,774,838
					6,120,193

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

Portfolio of investments—June 30, 2016 Wells Fargo Small Cap Core Fund 11

Security name	Shares		Value
Machinery: 3.67%
ITT Incorporated		46,233	$	1,478,531
The Greenbrier Companies Incorporated		24,166		703,956
Wabash National Corporation †		153,001		1,943,113
				4,125,600
Professional Services: 2.60%
Insperity Incorporated		25,281		1,952,452
RPX Corporation †		105,355		966,105
				2,918,557
Information Technology: 21.78%
Communications Equipment: 1.74%
Brocade Communications Systems Incorporated		213,587		1,960,729
Electronic Equipment, Instruments & Components: 3.49%
Methode Electronics Incorporated		47,816		1,636,742
Sanmina Corporation †		85,359		2,288,475
				3,925,217
Internet Software & Services: 4.63%
J2 Global Incorporated		29,529		1,865,347
Tessera Technologies Incorporated		53,015		1,624,380
Web.com Group Incorporated †		94,053		1,709,884
				5,199,611
IT Services: 1.75%
Hackett Group Incorporated		141,591		1,963,867
Semiconductors & Semiconductor Equipment: 7.76%
Cirrus Logic Incorporated †		68,185		2,644,896
Inphi Corporation †		71,937		2,304,142
Integrated Device Technology Incorporated †		104,513		2,103,847
MaxLinear Incorporated Class A †		92,427		1,661,837
				8,714,722
Software: 2.41%
Gigamon Incorporated †		72,327		2,704,307
Materials: 3.37%
Chemicals: 1.75%
Trinseo SA		45,795		1,965,979
Containers & Packaging: 1.62%
Graphic Packaging Holding Company		145,089		1,819,416
Utilities: 1.63%
Electric Utilities: 1.63%
Spark Energy Incorporated Class A		55,467		1,833,183
Total Common Stocks (Cost $105,989,851)				111,155,789

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

12 Wells Fargo Small Cap Core Fund Portfolio of investments—June 30, 2016

Security name	Yield			Shares		Value
Short-Term Investments: 1.11%
Investment Companies: 1.11%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)		0.43	%		1,251,302	$	1,251,302
Total Short-Term Investments (Cost $1,251,302)							1,251,302

Total investments in securities (Cost $107,241,153) *	100.06	%		112,407,091
Other assets and liabilities, net	(0.06	)		(69,128	)
Total net assets	100.00	%	$	112,337,963

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $107,852,771 and unrealized gains (losses) consists of:

Gross unrealized gains	$	13,295,157
Gross unrealized losses		(8,740,837	)
Net unrealized gains	$	4,554,320

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

Statement of assets and liabilities—June 30, 2016 Wells Fargo Small Cap Core Fund 13

Assets
Investments
In unaffiliated securities, at value (cost $105,989,851)	$	111,155,789
In affiliated securities, at value (cost $1,251,302)		1,251,302
Total investments, at value (cost $107,241,153)		112,407,091
Receivable for Fund shares sold		150,210
Receivable for dividends		169,761
Total assets		112,727,062
Liabilities
Payable for Fund shares redeemed		289,179
Management fee payable		69,358
Distribution fee payable		63
Administration fees payable		12,438
Accrued expenses and other liabilities		18,061
Total liabilities		389,099
Total net assets	$	112,337,963
NET ASSETS CONSIST OF
Paid-in capital	$	167,089,890
Undistributed net investment income		216,815
Accumulated net realized losses on investments		(60,134,680	)
Net unrealized gains on investments		5,165,938
Total net assets	$	112,337,963
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	131,546
Shares outstanding – Class A1		7,790
Net asset value per share – Class A		$16.89
Maximum offering price per share – Class A2		$17.92
Net assets – Class C	$	101,528
Shares outstanding – Class C1		6,017
Net asset value per share – Class C		$16.87
Net assets – Class R6	$	101,658
Shares outstanding – Class R61		6,017
Net asset value per share – Class R6		$16.90
Net assets – Administrator Class	$	101,625
Shares outstanding – Administrator Class1		6,017
Net asset value per share – Administrator Class		$16.89
Net assets – Institutional Class	$	111,901,606
Shares outstanding – Institutional Class1		6,622,947
Net asset value per share – Institutional Class		$16.90

¹  The Fund has an unlimited number of authorized shares.

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

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

14 Wells Fargo Small Cap Core Fund Statement of operations —year ended June 30, 2016¹

Investment income
Dividends	$	1,513,654
Income from affiliated securities		2,865
Total investment income		1,516,519
Expenses
Management fee		1,220,746
Administration fees
Class A		24	2
Class C		23	2
Class R6		3	2
Administrator Class		14	2
Institutional Class		16,192
Shareholder servicing fees
Class A		29	2
Class C		27	2
Administrator Class		27	2
Distribution fee
Class C		82	2
Custody and accounting fees		1,969
Professional fees		4,592
Registration fees		5,342
Shareholder report expenses		3,633
Trustees’ fees and expenses		1,500
Other fees and expenses		961
Total expenses		1,255,164
Less: Fee waivers and/or expense reimbursements		(24,517	)
Net expenses		1,230,647
Net investment income		285,872
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(10,551,715	)
Net change in unrealized gains (losses) on investments		(2,795,570	)
Net realized and unrealized gains (losses) on investments		(13,347,285	)
Net decrease in net assets resulting from operations	$	(13,061,413	)

¹  After the close of business on May 20, 2016, the Fund acquired the net assets of Golden Small Cap Core Fund, which became the accounting and performance survivor in the transaction. The information for the period prior to May 20, 2016 is that of Golden Small Cap Core Fund.

²  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

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

Statement of changes in net assets Wells Fargo Small Cap Core Fund 15

	Year ended June 30, 20161						Year ended June 30, 20151
Operations
Net investment income				$	285,872					$	154,172
Net realized gains (losses) on investments					(10,551,715	)					2,177,443
Net change in unrealized gains (losses) on investments					(2,795,570	)					2,762,213
Net increase (decrease) in net assets resulting from operations					(13,061,413	)					5,093,828
Distributions to shareholders from
Net investment income
Institutional Class					(153,914	)					(55,322	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		7,790	2		130,000	2		N/A			N/A
Class C		6,017	2		100,000	2		N/A			N/A
Class R6		6,017	2		100,000	2		N/A			N/A
Administrator Class		6,017	2		100,000	2		N/A			N/A
Institutional Class		5,103,153			91,283,720			3,539,453			63,438,443
					91,713,720						63,438,443
Reinvestment of distributions
Institutional Class		1,813			32,246			293			5,120
Payment for shares redeemed
Institutional Class		(2,992,788	)		(50,609,931	)		(352,069	)		(6,234,965	)
Net increase in net assets resulting from capital share transactions					41,136,035						57,208,598
Total increase in net assets					27,920,708						62,247,104
Net assets
Beginning of period					84,417,255						22,170,151
End of period				$	112,337,963					$	84,417,255
Undistributed net investment income				$	216,815					$	153,878

¹  After the close of business on May 20, 2016, the Fund acquired the net assets of Golden Small Cap Core Fund, which became the accounting and performance survivor in the transaction. The information for the period prior to May 20, 2016 is that of Golden Small Cap Core Fund.

²  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

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

16 Wells Fargo Small Cap Core Fund Financial highlights

(For a share outstanding throughout the period)

CLASS A	Year ended June 30, 20161
Net asset value, beginning of period		$16.62
Net investment income		0.01	2
Net realized and unrealized gains (losses) on investments		0.26
Total from investment operations		0.27
Net asset value, end of period		$16.89
Total return3		1.62	%
Ratios to average net assets (annualized)
Gross expenses		1.46	%
Net expenses		1.35	%
Net investment income		0.65	%
Supplemental data
Portfolio turnover rate		61	%
Net assets, end of period (000s omitted)		$132

¹  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Small Cap Core Fund 17

(For a share outstanding throughout the period)

CLASS C	Year ended June 30, 20161
Net asset value, beginning of period		$16.62
Net investment loss		(0.00	)2,3
Net realized and unrealized gains (losses) on investments		0.25
Total from investment operations		0.25
Net asset value, end of period		$16.87
Total return4		1.50	%
Ratios to average net assets (annualized)
Gross expenses		2.21	%
Net expenses		2.10	%
Net investment loss		(0.27	)%
Supplemental data
Portfolio turnover rate		61	%
Net assets, end of period (000s omitted)		$102

¹  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

²  Calculated based upon average shares outstanding

³  Amount is less than $0.005.

⁴  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

18 Wells Fargo Small Cap Core Fund Financial highlights

(For a share outstanding throughout the period)

CLASS R6	Year ended June 30, 20161
Net asset value, beginning of period		$16.62
Net investment income		0.02	2
Net realized and unrealized gains (losses) on investments		0.26
Total from investment operations		0.28
Net asset value, end of period		$16.90
Total return3		1.68	%
Ratios to average net assets (annualized)
Gross expenses		1.03	%
Net expenses		0.90	%
Net investment income		0.93	%
Supplemental data
Portfolio turnover rate		61	%
Net assets, end of period (000s omitted)		$102

¹  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Small Cap Core Fund 19

(For a share outstanding throughout the period)

ADMINISTRATOR CLASS	Year ended June 30, 20161
Net asset value, beginning of period		$16.62
Net investment income		0.01	2
Net realized and unrealized gains (losses) on investments		0.26
Total from investment operations		0.27
Net asset value, end of period		$16.89
Total return3		1.62	%
Ratios to average net assets (annualized)
Gross expenses		1.37	%
Net expenses		1.25	%
Net investment income		0.58	%
Supplemental data
Portfolio turnover rate		61	%
Net assets, end of period (000s omitted)		$102

¹  For the period May 20, 2016 (commencement of class operations) to June 30, 2016.

²  Calculated based upon average shares outstanding

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

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

20 Wells Fargo Small Cap Core Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	20161			20151			20141			20131			20121
Net asset value, beginning of period		$18.71			$16.76			$13.57			$10.64			$11.10
Net investment income (loss)		0.04	2		0.06	2		0.05	2		0.16	2		(0.01	)2
Net realized and unrealized gains (losses) on investments		(1.83	)		1.92			3.36			2.77			(0.45	)
Total from investment operations		(1.79	)		1.98			3.41			2.93			(0.46	)
Distributions to shareholders from
Net investment income		(0.02	)		(0.03	)		(0.22	)		0.00			0.00
Net asset value, end of period		$16.90			$18.71			$16.76			$13.57			$10.64
Total return		(9.57	)%		11.80	%		25.21	%		27.54	%		(4.14	)%
Ratios to average net assets (annualized)
Gross expenses		1.11	%		1.10	%		1.10	%		1.10	%		1.11	%
Net expenses		1.09	%		1.10	%		1.10	%		1.10	%		1.10	%
Net investment income (loss)		0.25	%		0.37	%		0.30	%		1.32	%		(0.12	)%
Supplemental data
Portfolio turnover rate		61	%		57	%		68	%		52	%		56	%
Net assets, end of period (000s omitted)		$111,902			$84,417			$22,170			$20,093			$27,427

¹  After the close of business on May 20, 2016, the Fund acquired the net assets of Golden Small Cap Core Fund, which became the accounting and performance survivor in the transaction. The information for the period prior to May 20, 2016 is that of Golden Small Cap Core Fund.

²  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Small Cap Core Fund 21

1. ORGANIZATION

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

After the close of business on May 20, 2016, the net assets of Golden Small Cap Core Fund were acquired by the Fund, which was created to receive the assets of Golden Small Cap Core Fund, in an exchange for shares of the Fund. Institutional shareholders of Golden Small Cap Core Fund received shares of Institutional Class of the Fund in the transaction. Since Golden Small Cap Core Fund contributed all of the net assets and shareholders to the newly created Wells Fargo fund, the accounting and performance history of Golden Small Cap Core Fund has been carried forward in the financial statements contained herein.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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.

Equity securities 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 Fund’s Valuation Procedures.

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

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

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

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

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.

22 Wells Fargo Small Cap Core Fund Notes to financial statements

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to dividends from certain securities. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$(69,021)	$69,021

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of June 30, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

	No expiration
2018	Short-term	Long-term
$49,578,591	$9,232,422	$712,049

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

Notes to financial statements Wells Fargo Small Cap Core Fund 23

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	10,110,547	$	0	$	0	$	10,110,547
Consumer staples		4,000,063		0		0		4,000,063
Energy		4,139,851		0		0		4,139,851
Financials		24,008,258		0		0		24,008,258
Health care		19,286,833		0		0		19,286,833
Industrials		19,523,206		0		0		19,523,206
Information technology		24,468,453		0		0		24,468,453
Materials		3,785,395		0		0		3,785,395
Utilities		1,833,183		0		0		1,833,183
Short-term investments						0
Investment companies		1,251,302		0		0		1,251,302
Total assets	$	112,407,091	$	0	$	0	$	112,407,091

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.85% and declining to 0.71% as the average daily net assets of the Fund increase.

Prior to May 20, 2016, Golden Capital Management, LLC, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo was the investment adviser to the predecessor fund and received an advisory fee at an annual rate of 1.10% of the average daily net assets of the predecessor fund. For financial statement purposes, the advisory fee incurred prior to May 20, 2016 has been included in management fee on the Statement of Operations.

For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 1.08% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Golden Capital Management, LLC, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.55% and declining to 0.45% as the average daily net assets of the Fund increase.

24 Wells Fargo Small Cap Core Fund Notes to financial statements

Administration fees

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

	Class-level administration fee
Class A, Class C		0.21	%
Class R6		0.03
Administrator Class, Institutional Class		0.13

Prior to May 20, 2016, the Institutional Class of the predecessor fund did not incur any administration fees.

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through July 31, 2019 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.35% for Class A shares, 2.10% for Class C shares, 0.90% for Class R6 shares, 1.25% for Administrator Class and 1.00% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prior to May 20, 2016, the adviser of the predecessor fund had capped the expenses of Institutional Class at 1.10% through October 31, 2015.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fees is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares. Prior to May 20, 2016, the predecessor fund did not have a distribution plan.

Funds Distributor is also 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.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Administrator Class, of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $107,650,608 and $67,972,332, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $153,914 and $55,322 of ordinary income for the years ended June 30, 2016 and June 30, 2015, respectively.

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$216,815	$4,554,320	$(59,523,062)

Notes to financial statements Wells Fargo Small Cap Core Fund 25

7. INDEMNIFICATION

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

26 Wells Fargo Small Cap Core Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Small Cap Core Fund (formerly the Golden Small Cap Core Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations and statement of changes in net assets for the year then ended, the financial highlights of Class A, Class C, Class R6, and Administrative Class for the period from May 20, 2016 (commencement of class operations) to June 30, 2016, and the financial highlights of Institutional Class for the year ended June 30, 2016. 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. The accompanying financial statements and financial highlights of Wells Fargo Small Cap Core Fund as of and for the four-year period ended June 30, 2015, were audited by other auditors whose report thereon dated August 19, 2015, expressed an unqualified opinion on those statements.

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 June 30, 2016, by correspondence with custodians 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 audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Small Cap Core Fund as of June 30, 2016, the results of its operations and changes in its assets for the year then ended, the financial highlights of Class A, Class C, Class R6, and Administrative Class for the period from May 20, 2016 (commencement of class operations) to June 30, 2016, and the financial highlights of Institutional Class for the year ended June 30, 2016, in conformity with U.S. generally accepted principles.

Boston, Massachusetts

August 25, 2016

Other information (unaudited) Wells Fargo Small Cap Core Fund 27

TAX INFORMATION

Pursuant to Section 854 of the Internal Revenue Code, $153,914 of income dividends paid during the fiscal year ended June 30, 2016 has been designated as qualified dividend income (QDI).

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 100% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

28 Wells Fargo Small Cap Core Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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 Small Cap Core Fund 29

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

30 Wells Fargo Small Cap Core Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

244410 08-16 A269/AR269 6-16

Annual Report

June 30, 2016

Wells Fargo Strategic Municipal Bond Fund

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Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	28
Statement of operations	29
Statement of changes in net assets	30
Financial highlights	31
Notes to financial statements	36
Report of independent registered public accounting firm	42
Other information	43
List of abbreviations	49

The views expressed and any forward-looking statements are as of June 30, 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 Strategic Municipal Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Strategic Municipal Bond Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The state of Illinois approved a six-month stopgap budget, a temporary but

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Strategic Municipal Bond Fund 3

meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large trades are more difficult to execute. However, fixed-income markets appear to have functioned 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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Strategic Municipal Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from regular federal income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Lyle J. Fitterer, CFA^®, CPA

Robert Miller

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (VMPAX)	12-1-1994		(0.46	)		2.08		2.79		3.67		2.93		3.21		0.81		0.81
Class B (VMPIX)*	3-21-1985		(2.09	)		1.80		2.67		2.91		2.16		2.67		1.56		1.56
Class C (DHICX)	8-18-1997		1.78			2.16		2.44		2.78		2.16		2.44		1.56		1.56
Administrator Class (VMPYX)	10-6-1997		–			–		–		3.80		3.09		3.40		0.75		0.68
Institutional Class (STRIX)	11-30-2012		–			–		–		4.02		3.24		3.48		0.48		0.48
Barclays Short-Intermediate Municipal Bond Index4	–		–			–		–		4.21		3.03		4.07		–		–

* Class B shares are closed to investment, except in connection with the reinvestment of any distributions and permitted exchanges.

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website,wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.00%. For Class B shares, the maximum contingent deferred sales charge is 5.00% For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Strategic Municipal Bond Fund 5

Growth of $10,000 investment as of June 30, 2016⁵

¹  Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and includes the higher expenses applicable to the Administrator Class shares. If these expenses had not been included, returns would be higher. Historical performance shown for all classes of the Fund prior to July 12, 2010, is based on the performance of the Fund’s predecessor, Evergreen Strategic Municipal Bond Fund.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.82% for Class A, 1.57% for Class B, 1.57% for Class C, 0.68% for Administrator Class, and 0.48% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Short-Intermediate Municipal Bond Index is a rules-based, market-value-weighted index composed of publicly traded municipal bonds that cover the U.S. dollar–denominated short-term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, insured bonds, and prefunded bonds. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Short-Intermediate Municipal 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 4.00%.

⁶  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁷  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

6 Wells Fargo Strategic Municipal Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays Short-Intermediate Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n We extended the Fund’s duration at the beginning of the period but remained short relative to the benchmark. As interest rates fell, we reduced the Fund’s interest-rate exposure and ended the period at the lower end of our targeted range. A short duration detracted from results as yields fell.

n Investors continued their search for income in this low-yield environment, which caused lower-quality bonds to perform very well. The Fund’s overweight to A-rated, BBB-rated, and out-of-benchmark below-investment-grade debt was the biggest contributor to returns.

n Sector allocation and security selection within the better-performing local general obligation (GO), education, and corporate-backed sectors contributed to results, whereas allocations to the health care and electric revenue sectors detracted.

Effective maturity distribution as of June 30, 2016⁶

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities appeared less attractive at the beginning of the reporting period due to a potential backup in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. We, therefore, extended the Fund’s duration in anticipation of lower yields and also positioned the Fund for a flatter yield curve. The Fund’s yield-curve positioning, which was underweight maturities between one and four years and overweight the seven-year and greater area, helped results. Longer-term maturities outperformed shorter-term maturities by a wide margin because the municipal curve flattened almost 115 basis points (bps; 100 bps equals 1.00%) between the 1- and 10-year maturities.

The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual. While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%, and we reduced duration as the market rallied. The Fund’s short duration hurt results because yields continued to decline. By the end of the reporting period, the Fund’s duration was about 1.5 years.

Credit quality as of June 30, 2016⁷

Credit-quality allocation helped results.

The Fund’s overweight to A-rated and BBB-rated debt and its out-of-benchmark holdings in high-yield and nonrated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin during the period. The Fund’s holdings within the local GO, education, and corporate-backed sectors contributed to results. On the other hand, issue selection within the health care and electric revenue sectors detracted from results. We have been cautious within the health care sector for quite some time because we believe credit fundamentals have peaked. Overweight allocations to Illinois and New Jersey, two of the

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Strategic Municipal Bond Fund 7

best-performing states, helped results, while an underweight to California also benefited results because the state lagged the broader index. Although taxable corporate bond spreads increased dramatically during late 2015 and early 2016 as global fears spooked the market, spreads for corporate-backed municipal debt declined. We put on a relative-value trade by selling some corporate-backed municipal debt into this rally and buying taxable corporate debt. Corporate debt spreads then narrowed between February and May 2016, and we sold most of these taxable issues by the end of the reporting period.

Political noise and a lack of a state budget caused volatility within Illinois, but the state’s bonds had some of the highest returns. We have been overweight Illinois bonds for several years because we feel that the above-market income is compensating investors for the credit issues. We continue to believe that the state’s economic backdrop and ability to raise revenues, combined with Illinois Governor Bruce Rauner’s focus on cutting expenses, should ultimately lead to tighter spreads. New Jersey bonds also performed well as spreads tightened; however, issue selection within the state detracted from results, primarily due to our exposure to longer-dated floating-rate notes that repriced to reflect a protracted rate-hike cycle. During the past 12 months, Puerto Rico had several widely anticipated defaults on its debt. The lack of clarity surrounding the federal government’s restructuring legislation for Puerto Rico debt, the lack of financial statements, and a declining economy make it very hard to develop an investment opinion for the territory. As a result, we had minimal exposure to Puerto Rico bonds.

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. However, if the U.S. economy does weaken materially, this could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo Strategic Municipal Bond Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,016.94	$	4.03		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.87	$	4.04		0.80	%
Class B
Actual	$	1,000.00	$	1,014.31	$	7.78		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	7.79		1.55	%
Class C
Actual	$	1,000.00	$	1,013.13	$	7.78		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	7.79		1.55	%
Administrator Class
Actual	$	1,000.00	$	1,018.70	$	3.41		0.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.48	$	3.42		0.68	%
Institutional Class
Actual	$	1,000.00	$	1,018.61	$	2.38		0.47	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.51	$	2.38		0.47	%

¹ Expenses paid is equal to the annualized expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 94.98%
Alabama: 0.40%
Chatom AL Industrial Development Board Solid Waste Disposal (Utilities Revenue)		4.00	%		8-1-2016	$	1,875,000	$	1,880,100
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		5,325,000		5,698,016
									7,578,116
Alaska: 0.94%
Alaska Housing Finance Corporation Series A (Housing Revenue, Landesbank Baden-Wuerttemberg SPA) ø		0.43			12-1-2041		10,000,000		10,000,000
Alaska Industrial Development & Export Authority Power Refunding Bonds Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2022		1,200,000		1,384,680
Alaska Industrial Development & Export Authority Power Refunding Bonds Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2023		1,545,000		1,813,954
Valdez AK Marine Terminal BP Pipelines Project Series 2003B (Industrial Development Revenue)		5.00			1-1-2021		4,000,000		4,586,680
									17,785,314
Arizona: 2.04%
Arizona Health Facilities Authority Banner Health Series B (Health Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.42			1-1-2046		7,915,000		7,915,000
Arizona Sports & Tourism Authority Multipurpose Stadium Facility Project Series A (Tax Revenue)		4.00			7-1-2017		900,000		926,325
Florence AZ IDA Legacy Traditional School Project (Education Revenue)		4.00			7-1-2018		515,000		525,743
Maricopa County AZ IDA Educational Horizon Community Learning Center Project (Education Revenue)		2.63			7-1-2021		1,500,000		1,507,710
Navajo Nation Arizona Series A (Miscellaneous Revenue) 144A		4.00			12-1-2022		6,345,000		6,794,797
Navajo Tribal Arizona Utility Authority (Miscellaneous Revenue, Municipal Government Guaranty Insured)		4.00			1-1-2021		3,372,000		3,470,631
Phoenix AZ IDA Basis Schools Projects Series A (Education Revenue) 144A		3.00			7-1-2020		1,300,000		1,322,126
Phoenix AZ IDA Great Hearts Academies Project (Education Revenue)		5.20			7-1-2022		645,000		695,478
Phoenix AZ IDA Guam Facilities Foundation Incorporated Project Series 2014 (Industrial Development Revenue)		5.00			2-1-2017		2,845,000		2,888,073
Phoenix AZ IDA Legacy Traditional School Project Series 2015 (Education Revenue) 144A		3.00			7-1-2020		515,000		520,042
Pima County AZ IDA American Leadership Academy Project Series 2015 (Education Revenue) 144A		4.60			6-15-2025		1,530,000		1,614,318
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		1,000,000		1,002,450
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		3,000,000		3,009,090
Pima County AZ IDA Noah Webster Schools Project Series A (Education Revenue)		5.50			12-15-2023		1,070,000		1,188,620
Pima County AZ Industrial Development Charter School (Education Revenue)		4.00			7-1-2016		395,000		395,020
Pima County AZ Industrial Development Charter School (Education Revenue)		4.00			7-1-2017		1,125,000		1,144,868
Tempe AZ IDA Friendship Village Series A (Health Revenue)		4.00			12-1-2017		220,000		226,844
Tempe AZ IDA Friendship Village Series A (Health Revenue)		5.00			12-1-2018		800,000		859,344
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		4.25			7-15-2019		1,320,000		1,375,427
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		5.00			7-15-2020		700,000		755,671
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		5.00			7-15-2021		500,000		546,460
									38,684,037
Arkansas: 0.25%
Boone County AR Hospital Construction Series 2006 (Health Revenue, BOKF NA LOC) ø		0.62			5-1-2037		4,700,000		4,700,000

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Arkansas (continued)
Fort Smith AR Sales & Use Tax Improvement Bonds (Tax Revenue)		2.38	%		5-1-2027	$	20,000	$	20,008
									4,720,008
California: 7.04%
Alameda CA Corridor Transportation Authority Unrefunded CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2017		425,000		418,910
Alameda CA Corridor Transportation Authority Prerefunded CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2017		1,660,000		1,645,326
California Association of Bay Area Governments Financing Authority Series A (Health Revenue, Bank of America NA LOC) ø		0.39			8-1-2024		4,525,000		4,525,000
California Bay Area Toll Authority Toll Bridge Series E-3 (Transportation Revenue) ±		1.11			4-1-2047		11,600,000		11,600,464
California CDA Tender Option Bond Trust Receipts Series ZF0199 (Health Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.61			10-1-2020		4,805,000		4,805,000
California Golden State Tobacco Securitization Series 2954 (Tobacco Revenue, Morgan Stanley Bank LIQ) 144Aø		0.96			6-1-2047		25,000,000		25,000,000
California HFFA Catholic Healthcare West Series 2005-H (Health Revenue, Sumitomo Mitsui Banking LOC) ø		0.39			7-1-2035		11,000,000		11,000,000
California Infrastructure & Economic Development Bank Colburn School Series B (Education Revenue) ±		1.61			8-1-2037		6,325,000		6,344,987
California Infrastructure & Economic Development Bank Museum Art Project Series A (Miscellaneous Revenue) ±		2.06			12-1-2037		3,000,000		3,056,430
California PCFA Refunding Bond Pacific Gas & Electric Company Series D (Industrial Development Revenue, FGIC Insured)		4.75			12-1-2023		1,515,000		1,567,177
California PCFA Series A (Resource Recovery Revenue) 144A±		0.90			8-1-2023		15,405,000		15,405,308
California Refunding Bond Series B (GO Revenue) ±		1.31			5-1-2018		3,000,000		3,017,160
California Statewide CDA Eskaton Properties Incorporated (Health Revenue)		5.00			11-15-2017		1,130,000		1,183,087
California Statewide CDA Eskaton Properties Incorporated (Health Revenue)		5.00			11-15-2018		1,060,000		1,142,616
California Student Education Loan Marketing Corporation Series IV-D1 (Education Revenue)		5.88			1-1-2018		2,370,000		2,369,716
California Various Purpose Bonds (Miscellaneous Revenue)		6.25			10-1-2019		15,000		15,229
Chemehuevi Indian Tribe California (Miscellaneous Revenue)		2.00			7-15-2017		5,935,440		5,941,079
Delhi CA Unified School District CAB (GO Revenue, Ambac Insured) ¤		0.00			8-1-2019		1,975,000		1,760,554
Grossmont CA Union High School District Floaters Series 2015 (GO Revenue, Citibank NA LIQ) 144Aø		0.56			2-1-2017		7,525,000		7,525,000
Los Angeles County CA Schools Regionalized Business Services CAB Series A (Miscellaneous Revenue, Ambac Insured) ¤		0.00			8-1-2016		1,945,000		1,943,347
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.14			7-1-2027		11,805,000		10,769,820
Northern California Power Agency Hydroelectric Project Series A (Utilities Revenue, Bank of Montreal LOC) ø		0.39			7-1-2032		2,000,000		2,000,000
Riverside CA Tender Option Bond Trust Receipts Series 2016 (GO Revenue, AGM/National Insured, Bank of America NA LIQ) 144Aø		0.65			8-1-2032		6,920,000		6,920,000
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.25			12-1-2017		1,455,000		1,524,069
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.75			12-1-2018		2,110,000		2,298,887
									133,779,166
Colorado: 1.24%
Colorado ECFA Rocky Mountain Classical Academy Project (Education Revenue)		6.38			9-1-2023		2,115,000		2,205,437
Colorado ECFA Vanguard School Project (Education Revenue)		4.00			6-15-2021		250,000		276,782
Colorado ECFA Vanguard School Project (Education Revenue)		4.00			6-15-2022		515,000		575,317

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Colorado Health Facilities Authority Series C (Health Revenue) ±		0.39	%		12-1-2045	$	5,000,000	$	5,000,000
Colorado Health Facilities Authority Unrefunded Balance (Health Revenue)		5.25			6-1-2024		980,000		983,391
Colorado Springs CO Utilities System Sub Lien Improvement Series B (Utilities Revenue, Bayerische Landesbank SPA) ø		0.56			11-1-2036		11,400,000		11,400,000
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		2,855,000		3,152,405
									23,593,332
Connecticut: 3.21%
Connecticut Economic Recovery Notes Series A-4 (GO Revenue) ø		0.65			1-1-2018		13,000,000		13,000,000
Connecticut HEFA Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2017		1,070,000		1,113,474
Connecticut HEFA Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2020		500,000		575,945
Connecticut HEFA Yale University Series Z-1 (Education Revenue)		5.00			7-1-2042		1,724,000		1,724,224
Connecticut Series A (Miscellaneous Revenue) ±		1.14			3-1-2021		4,990,000		4,943,543
Connecticut Series A (Miscellaneous Revenue) ±		1.29			4-15-2018		5,000,000		5,007,750
Connecticut Series A (Miscellaneous Revenue) ±		1.31			5-15-2018		2,000,000		2,004,340
Connecticut Series A (Miscellaneous Revenue) ±		1.66			4-15-2020		7,000,000		7,071,610
Connecticut Series A (Miscellaneous Revenue) ±		1.76			3-1-2019		4,050,000		4,050,000
Connecticut Series D (GO Revenue) ±		1.18			9-15-2018		1,000,000		999,610
Connecticut Series D (GO Revenue) ±		1.33			9-15-2019		3,345,000		3,369,485
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2019		1,835,000		2,033,749
Hartford CT EDA Series B (Transportation Revenue, Bank of America NA SPA) ø		0.53			6-15-2034		15,100,000		15,100,000
									60,993,730
Delaware: 0.11%
Delaware EDA Odyssey Charter School Project Series A (Education Revenue) 144A		6.25			9-1-2025		2,035,000		2,109,115
Florida: 3.86%
Brevard County FL Space Coast Infrastructure Agency I-95 Project (Industrial Development Revenue)		4.00			6-15-2018		5,000,000		5,279,350
Eustis FL Multi-Purpose Series A (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.50			12-1-2027		605,000		605,000
Florida Cityplace Community Development District Special Assessment (Miscellaneous Revenue)		5.00			5-1-2017		500,000		514,210
Florida Cityplace Community Development District Special Assessment (Miscellaneous Revenue)		5.00			5-1-2018		1,375,000		1,456,139
Florida Mid-Bay Bridge Authority Series B (Transportation Revenue)		5.00			10-1-2016		2,000,000		2,022,500
Florida Village Community Development District #10 Special Assignment (Miscellaneous Revenue)		5.13			5-1-2024		3,770,000		4,374,331
Lakeland FL Hospital System Lakeland Regional Health System (Health Revenue)		5.00			11-15-2022		4,495,000		5,337,678
Manatee County FL HFA SFHR Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		6.57			5-1-2039		15,000		15,807
Miami FL Special Obligation (Miscellaneous Revenue, AGM Insured)		5.00			2-1-2017		1,000,000		1,024,740
Miami-Dade County FL IDA Youth Charter Schools Project Series 2015A (Education Revenue) 144A		5.00			9-15-2025		1,000,000		1,051,920
Miami-Dade County FL School Board Certificate of Participation Series 3 (Miscellaneous Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) 144Aø		0.84			9-25-2024		6,895,000		6,895,000
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		0.78			9-25-2024		6,865,000		6,865,000
Miami-Dade County FL Seaport Department Series A (Airport Revenue, Bank of Tokyo-Mitsubishi LOC) ±		0.42			10-1-2050		7,800,000		7,800,000

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
North Brevard County FL Parrish Medical Center Project (Health Revenue)		5.50	%		10-1-2018	$	500,000	$	542,150
Orange County FL IDA Central Florida Kidney Center Project (Industrial Development Revenue, SunTrust Bank LOC) ø		0.48			12-1-2020		3,250,000		3,250,000
Orange County FL Tourist Development Tax (Miscellaneous Revenue, Ambac/MBIA Insured)		6.00			10-1-2016		85,000		85,674
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase I (Miscellaneous Revenue)		3.00			5-1-2017		545,000		553,360
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase I (Miscellaneous Revenue)		3.00			5-1-2018		565,000		581,843
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase II (Miscellaneous Revenue)		3.00			5-1-2017		780,000		791,965
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase II (Miscellaneous Revenue)		3.00			5-1-2018		805,000		828,997
Volusia County FL Eclipse Funding Trust Series 0036 (Miscellaneous Revenue, U.S. Bank NA LOC, AGM Insured, U.S. Bank NA LIQ) 144Aø		0.39			8-1-2032		20,395,000		20,395,000
Volusia County FL School Board (Tax Revenue, AGM Insured)		5.00			10-1-2016		3,055,000		3,083,014
									73,353,678
Georgia: 1.49%
Atlanta GA Water & Wastewater Project Series A-1 (Water & Sewer Revenue) ±		1.80			11-1-2038		5,000,000		5,078,650
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project Second Series 2012 (Utilities Revenue) ±		1.75			12-1-2049		2,000,000		2,016,480
Burke County GA Development Authority Oglethorpe Power Corporation Vogtle Project Series A (Utilities Revenue) ±		2.40			1-1-2040		5,720,000		5,935,186
Cherokee County GA Water & Sewage Authority (Water & Sewer Revenue, National Insured)		6.90			8-1-2018		5,000		5,027
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		6,000,000		6,249,300
Gainesville & Hall County GA Hospital Authority Health System Project Series B (Health Revenue) ±		1.34			8-15-2035		6,000,000		5,992,620
Georgia Private Colleges & Universities Authority (Education Revenue)		5.00			10-1-2019		1,325,000		1,485,113
Georgia Road & Tollway Authority I-75 S Express Lanes Project Series A (Transportation Revenue) 144A¤		0.00			6-1-2024		2,500,000		1,645,700
									28,408,076
Guam: 0.13%
Guam Government Waterworks Authority Water & Wastewater System Series 2010 (Water & Sewer Revenue)		4.00			7-1-2016		1,255,000		1,255,113
Guam Government Waterworks Authority Water & Wastewater System Series 2014A (Water & Sewer Revenue)		5.00			7-1-2020		1,000,000		1,136,320
									2,391,433
Hawaii: 0.57%
Hawaii Department of Budget and Finance Queens Health System Series B (Health Revenue) ±		0.88			7-1-2039		10,765,000		10,765,000
Illinois: 15.52%
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2021		10,255,000		8,615,636
Chicago IL Board of Education Dedicated Series C2 (GO Revenue) ±		1.49			3-1-2032		9,900,000		9,531,225
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.39			3-1-2032		7,000,000		6,862,870

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Board of Education Series A3 (GO Revenue) ±		1.22	%		3-1-2036	$	17,200,000	$	15,070,984
Chicago IL CAB City Colleges Series 1999 (GO Revenue, National Insured) ¤		0.00			1-1-2024		9,975,000		7,700,101
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2021		1,450,000		1,563,694
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2023		2,400,000		2,626,728
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2022		1,810,000		1,969,389
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2024		2,460,000		2,710,157
Chicago IL Neighborhoods Alive 21 Series B (GO Revenue)		5.00			1-1-2026		5,835,000		5,940,147
Chicago IL O’Hare International Airport Senior Lien Bonds Series 2015 C (Airport Revenue)		5.00			1-1-2022		695,000		819,801
Chicago IL O’Hare International Airport Senior Lien Bonds Series 2015 D (Airport Revenue)		5.00			1-1-2021		500,000		583,520
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.25			1-1-2023		1,350,000		1,628,167
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.25			1-1-2024		1,415,000		1,703,674
Chicago IL Park District Harbor Facilities Series D (GO Revenue)		5.00			1-1-2022		1,500,000		1,725,780
Chicago IL Park District Harbor Facilities Series D (GO Revenue)		5.00			1-1-2023		1,175,000		1,374,104
Chicago IL Park District Limited Tax Series B (GO Revenue)		5.00			1-1-2022		4,495,000		5,171,587
Chicago IL Series A (Tax Revenue)		5.00			1-1-2029		5,000,000		5,335,300
Chicago IL Series A (GO Revenue)		5.25			1-1-2022		2,395,000		2,445,271
Chicago IL Series C (GO Revenue)		5.00			1-1-2021		1,000,000		1,046,710
Chicago IL Series C (GO Revenue)		5.00			1-1-2022		2,250,000		2,338,740
Chicago IL Series C (GO Revenue)		5.00			1-1-2023		2,500,000		2,609,875
Chicago IL Series C (GO Revenue)		5.00			1-1-2025		4,865,000		5,014,501
Chicago IL Series D (GO Revenue, Ambac Insured)		5.00			12-1-2022		3,915,000		3,982,847
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		1,140,000		1,159,859
Chicago IL Tax Increment Bond Pilson Redevelopment Project Series A (Tax Revenue)		5.00			6-1-2022		1,635,000		1,881,574
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5307-A (Transportation Revenue, AGC Insured)		5.25			6-1-2022		2,100,000		2,233,455
Chicago IL Transit Authority Capital Grant Receipts Refunding Bond Series 2011 (Miscellaneous Revenue, AGM Insured)		5.25			6-1-2024		4,450,000		5,078,740
Chicago IL Unrefunded Balance Series A (GO Revenue, AGM Insured)		5.00			1-1-2024		305,000		307,696
Chicago IL Waterworks Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2021		1,000,000		1,014,410
Chicago lL Series A (Tax Revenue)		5.00			1-1-2022		3,000,000		3,232,260
Cook County IL Community High School District #217 Series 2016 (Miscellaneous Revenue) ±		1.25			12-15-2025		5,000,000		4,999,550
Cook County IL Refunding Bonds Series 2010 G (GO Revenue)		5.00			11-15-2026		1,000,000		1,112,570
Cook County IL School District #123 Oak Lawn CAB (GO Revenue, National Insured) ¤		0.00			12-1-2021		1,090,000		939,275
Cook County IL Series A (GO Revenue) %%		5.00			11-15-2021		2,250,000		2,607,885
Cook County IL Series A (GO Revenue, Ambac Insured)		5.00			11-15-2024		830,000		831,569
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		11,040,000		12,544,797
Cook County IL Series C (GO Revenue, National Insured)		5.00			11-15-2020		1,150,000		1,201,600
Cook County IL Series C (GO Revenue, National Insured)		5.00			11-15-2021		5,000,000		5,224,350
DeWitt & Ford Counties IL Community College District #540 (GO Revenue, AGM Insured)		5.00			12-1-2021		5,920,000		6,248,915
DuPage County IL Forest Preservation District Series 2015 (GO Revenue)		5.00			1-1-2023		2,455,000		3,011,057
Huntley IL Special Service Area #6 (Tax Revenue, AGC Insured)		4.60			3-1-2017		252,000		255,147

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Finance Authority Little Company of Mark Hospital Series B (Health Revenue, Barclays Bank plc LOC) ø		0.42	%		8-15-2035	$	11,840,000	$	11,840,000
Illinois Finance Authority OSF Healthcare System Series F (Health Revenue, Barclays Bank plc LOC) ±		0.42			11-15-2037		10,000,000		10,000,000
Illinois Series B (GO Revenue)		5.01			4-1-2028		7,415,000		7,343,075
Illinois Municipal Electric Agency Power Series A (Utilities Revenue, National Insured)		5.25			2-1-2021		3,840,000		3,945,408
Illinois Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2020		5,050,000		5,698,622
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2020		5,000,000		5,498,850
Illinois Series 2004 (GO Revenue)		5.00			9-1-2016		1,400,000		1,404,648
Illinois Series 2006 (GO Revenue)		5.00			1-1-2025		5,025,000		5,047,512
Illinois Series 2012 (Miscellaneous Revenue)		5.00			8-1-2021		5,620,000		6,227,466
Illinois Series 2013 (Miscellaneous Revenue)		5.00			7-1-2022		1,900,000		2,124,485
Illinois Series 2013 (Miscellaneous Revenue, AGM Insured)		5.00			7-1-2023		4,875,000		5,715,060
Illinois Series A (GO Revenue)		5.00			4-1-2020		2,000,000		2,194,520
Illinois Series A (GO Revenue)		5.00			4-1-2023		3,500,000		3,945,410
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2018		4,000,000		3,838,440
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2022		3,005,000		2,593,465
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2023		7,305,000		6,122,686
Kane Cook & DuPage Counties IL School District #46 Prerefunded Bond CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2021		510,000		482,822
Kane Cook & DuPage Counties IL School District #46 Unrefunded Bond CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2021		595,000		541,343
Kane County IL Aurora West School District #129 (GO Revenue, AGM Insured)		5.00			2-1-2022		6,290,000		7,388,486
Kendall Kane & Will Counties IL Community Unit School District #308 Oswego Prerefunded Bond Series C (GO Revenue, AGM Insured) ¤		0.00			10-1-2017		1,325,000		1,311,724
Kendall Kane & Will Counties IL Community Unit School District #308 Oswego Unrefunded Bond Series C (GO Revenue, AGM Insured) ¤		0.00			10-1-2017		25,000		24,619
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2017		1,610,000		1,584,804
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2018		1,000,000		950,540
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		1,100,000		1,006,654
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		1,175,000		1,101,680
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2018		4,000,000		3,944,600
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, AGM/FGIC Insured) ¤		0.00			1-1-2019		1,185,000		1,154,925
Metropolitan Pier & Exposition Authority McCormick Series A (Tax Revenue, National Insured) ±		0.00			6-15-2025		1,000,000		1,131,940
Metropolitan Pier & Exposition Authority McCormick Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2022		1,200,000		1,006,896
Metropolitan Pier & Exposition Authority McCormick Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2023		500,000		404,965
Metropolitan Pier & Exposition Authority McCormick Series B (Tax Revenue)		5.00			12-15-2022		11,520,000		11,895,091
Romeoville IL Series B (GO Revenue, AGC Insured) ¤		0.00			12-30-2023		3,410,000		2,479,854

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Romeoville IL Series B (GO Revenue, AGC Insured) ¤		0.00	%		12-30-2024	$	2,840,000	$	1,946,309
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2021		7,410,000		7,625,779
St. Clair County IL School District Series B (GO Revenue, National Insured)		4.75			1-1-2018		655,000		681,934
University of Illinois Auxiliary Facilities (Education Revenue, JPMorgan Chase & Company SPA) ø		0.88			4-1-2038		7,580,000		7,580,000
Will County IL School District #114 CAB Series C (GO Revenue, National Insured) ¤		0.00			12-1-2021		855,000		759,727
Winnebago & Boone Counties IL School District #205 Series A (GO Revenue) ¤		0.00			2-1-2021		1,305,000		1,194,049
Winnebago & Boone Counties IL School District #205 Series B (GO Revenue) ¤		0.00			2-1-2021		3,400,000		3,110,932
									295,104,837
Indiana: 2.51%
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		16,205,000		16,542,064
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.26			11-15-2031		11,000,000		11,000,110
Indiana HFFA Ancilla System Incorporated (Health Revenue, National Insured)		5.25			7-1-2022		325,000		326,378
Indiana Housing and Community Development Authority Series A-2 (Housing Revenue, GNMA/FNMA/FHLMC Insured) ±		0.86			7-1-2039		4,735,000		4,735,000
Knox County IN EDA Good Samaritan Hospital Series A (Health Revenue)		4.00			4-1-2017		625,000		636,331
Knox County IN EDA Good Samaritan Hospital Series A (Health Revenue)		4.00			4-1-2018		400,000		416,168
Whiting IN BP Products North America Incorporated Project (Resource Recovery Revenue)		1.14			12-1-2044		11,400,000		11,136,546
Whiting IN BP Products North America Incorporated Project (Industrial Development Revenue) ±		1.85			6-1-2044		2,950,000		2,981,123
									47,773,720
Iowa: 0.14%
Iowa Student Loan Liquidity Corporation Series A1 (Education Revenue)		3.88			12-1-2016		1,950,000		1,967,706
Iowa Student Loan Liquidity Corporation Series A1 (Education Revenue)		4.13			12-1-2017		620,000		641,867
									2,609,573
Kansas: 0.99%
Wyandotte County & Kansas City KS Sales Tax Special Obligation Vacation Village Project Area 4 – Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00			9-1-2034		49,000,000		17,805,130
Wyandotte County & Kansas City KS Special Obligation Refunding and Improvement Bonds Plaza Redevelopment Project (Tax Revenue)		4.00			12-1-2028		1,000,000		1,023,550
									18,828,680
Kentucky: 1.02%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		2.14			2-1-2040		7,650,000		7,654,360
Christian County KY Jennie Stuart Medical Center (Health Revenue, AGC Insured)		5.25			2-1-2018		1,040,000		1,072,718
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		2.75			11-15-2018		300,000		305,241
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		3.00			11-15-2019		350,000		359,055
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		3.35			11-15-2020		335,000		346,501
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		5.00			11-15-2025		1,500,000		1,627,230
Kentucky EDFA Masonic Homes of Kentucky (Health Revenue)		4.00			11-15-2016		740,000		746,246
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, National Insured) ¤		0.00			10-1-2022		1,000,000		862,750

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Kentucky (continued)
Kentucky Municipal Power Agency Prairie State Project Series B (Utilities Revenue) ±		1.79	%		9-1-2042	$	6,500,000	$	6,497,660
									19,471,761
Louisiana: 0.65%
Louisiana Offshore Terminal Authority Deepwater Loop LLC Project Series B-1A1 (Airport Revenue) ±		1.38			10-1-2037		100,000		100,082
Louisiana Tobacco Settlement Financing Corporation Bonds Series A (Tobacco Revenue)		5.00			5-15-2025		1,445,000		1,448,743
St. Bernard Parish LA Series 2012 (Tax Revenue)		4.00			3-1-2019		3,355,000		3,599,814
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø		0.70			11-1-2040		7,250,000		7,250,000
									12,398,639
Maine: 0.50%
Maine Eclipse Funding Trust Various States Solar Eclipse ( U.S. Bank NA LOC, U.S. Bank NA LIQ) 144Aø		0.49			7-1-2037		9,485,000		9,485,000
Maryland: 0.68%
Baltimore MD Series A (Water & Sewer Revenue, National Insured)		5.65			7-1-2020		4,100,000		4,425,089
Howard County MD Housing Commission Series A (Housing Revenue) ±		1.66			7-1-2034		6,665,000		6,654,069
Prince Georges County MD Chesapeake Lighthouse Charter School Project Series 2015 (Education Revenue) 144A		5.25			8-1-2022		1,790,000		1,827,268
									12,906,426
Massachusetts: 1.25%
Massachusetts Development Finance Agency Sabis International Charter School Series 2015 (Education Revenue)		5.00			4-15-2025		1,000,000		1,187,500
Massachusetts Educational Financing Authority Series J (Education Revenue)		5.00			7-1-2018		750,000		803,603
Massachusetts Educational Financing Authority Series J (Education Revenue)		5.00			7-1-2019		6,000,000		6,586,500
Massachusetts HEFA Milford Regional Medical Center Series E (Health Revenue)		5.00			7-15-2022		2,250,000		2,346,548
Massachusetts Various Consolidated Loans Series D (Tax Revenue) ±		0.84			1-1-2018		3,000,000		3,001,320
Massachusetts Water Resources Authority Series DCL 005 (Water & Sewer Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.53			8-1-2025		9,925,000		9,925,000
									23,850,471
Michigan: 5.09%
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2021		1,405,000		1,688,993
Clarkston MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		5,000,000		6,024,000
Constantine MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		350,000		401,842
Constantine MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,200,000		1,413,828
Detroit MI Distribution of State Aid (GO Revenue)		4.50			11-1-2023		975,000		1,067,020
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2016		1,395,000		1,394,902
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2017		3,015,000		2,908,450
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2017		1,245,000		1,246,332
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2018		3,425,000		3,427,260
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2020		1,600,000		1,844,624
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2021		1,600,000		1,894,752

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00	%		5-1-2021	$	1,000,000	$	1,178,190
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		610,000		734,928
Grand Haven MI Electric System Series 2003 (Utilities Revenue, National Insured)		5.50			7-1-2016		1,000,000		1,000,100
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,465,000		1,726,048
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		1,475,000		1,777,080
Ingham County MI Williamston Community Schools Series A (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2024		1,025,000		1,182,368
Ingham County MI Williamston Community Schools Series A (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2025		1,000,000		1,158,900
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.88			10-1-2023		2,500,000		2,780,650
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.40			10-1-2020		500,000		524,015
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.60			10-1-2021		500,000		533,485
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.80			10-1-2022		500,000		542,825
Michigan Finance Authority Healthcare Equipment Loan Program Bonds Series C (Health Revenue, Fifth Third Bank LOC) ø		0.48			12-1-2032		1,750,000		1,750,000
Michigan Finance Authority Limited Obligation Cesar Chavez Academy Project (Education Revenue)		4.25			2-1-2017		345,000		345,445
Michigan Finance Authority Refunding Bonds Local Government Loan Program Series C (Miscellaneous Revenue)		5.00			11-1-2020		1,500,000		1,670,850
Michigan Finance Authority Series 25-A (Education Revenue)		5.00			11-1-2018		3,100,000		3,332,252
Michigan Finance Authority Series 25-A (Education Revenue)		5.00			11-1-2019		1,500,000		1,653,840
Michigan Finance Authority Series H-1 (Tax Revenue)		5.00			10-1-2021		1,565,000		1,798,169
Michigan Finance Authority St. John Health System Series A (Health Revenue, Ambac Insured)		5.00			5-15-2018		300,000		301,197
Michigan Financial Authority Local Government Loan Program Series C7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2022		2,000,000		2,379,580
Michigan Financial Authority Local Government Loan Program Series D1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2022		2,700,000		3,220,911
Michigan Financial Authority Local Government Loan Program Series D1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2023		2,000,000		2,429,620
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2021		6,355,000		7,453,271
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2022		2,080,000		2,474,763
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2023		3,670,000		4,431,452
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2024		2,130,000		2,616,300
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2019		500,000		505,920
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2018		595,000		596,285
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.13			5-1-2020		500,000		506,060
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2023		1,900,000		1,932,338
Michigan Public Educational Facilities Authority Chandler Park Academy (Miscellaneous Revenue)		6.35			11-1-2028		1,500,000		1,503,150

The accompanying notes are an integral part of these financial statements.

18 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13	%		7-1-2045	$	7,500,000	$	7,701,225
Southfield MI Public Schools (GO Revenue, National/Qualified School Board Loan Fund Insured)		4.38			5-1-2025		1,950,000		2,004,971
Tender Option Bond Trust Receipts Portage Public School (GO Revenue, AGM Insured, Bank of America NA LIQ) 144Aø		0.55			5-1-2031		5,000,000		5,000,000
Wayne County MI Series 2016 (GO Revenue)		4.25			12-1-2018		3,500,000		3,534,755
Wayne County MI Airport Authority AMT Detroit Metropolitan Airport Series C (Airport Revenue)		5.00			12-1-2022		1,000,000		1,142,350
									96,735,296
Minnesota: 0.29%
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		5,000,000		5,032,750
St. Paul MN Housing & RDA Charter School Hmong College Prep Academy Series A (Miscellaneous Revenue)		4.75			9-1-2022		500,000		531,965
									5,564,715
Mississippi: 1.13%
Mississippi HFFA Baptist Health System Series A (Health Revenue) ±		1.69			8-15-2036		5,000,000		4,956,850
Perry County MS PCR Leaf River Forest Products Incorporated Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.60			2-1-2022		16,600,000		16,600,000
									21,556,850
Nevada: 0.35%
Carson City NV Carson Tahoe Regional Medical Center (Health Revenue)		4.00			9-1-2016		545,000		547,665
Carson City NV Carson Tahoe Regional Medical Center (Health Revenue)		5.00			9-1-2018		700,000		750,631
Clark County NV Department of Aviation Subordinated Lien Series D-3 (Airport Revenue, Bank of America NA LOC) ø		0.41			7-1-2029		4,000,000		4,000,000
Las Vegas NV Special Improvement District #60 (Miscellaneous Revenue)		3.00			6-1-2017		675,000		682,594
Las Vegas NV Special Improvement District #60 (Miscellaneous Revenue)		4.00			6-1-2018		665,000		687,876
									6,668,766
New Hampshire: 0.03%
New Hampshire HEFA Covenant Health Project Series B (Health Revenue)		5.00			7-1-2016		520,000		520,057
New Jersey: 4.20%
Delaware River NJ Port Authority Pennsylvania & New Jersey Port District Project (Airport Revenue)		5.00			1-1-2017		2,100,000		2,150,841
Delaware River NJ Port Authority Pennsylvania & New Jersey Port District Project (Airport Revenue)		5.00			1-1-2018		1,230,000		1,307,650
Hudson County NJ Qualified General and Water Improvements Series 2012A and 2012B (GO Revenue, AGM Insured)		4.00			9-1-2018		1,140,000		1,212,949
New Jersey EDA Elite Pharmaceuticals Project Series A (Industrial Development Revenue)		6.50			9-1-2030		465,000		399,714
New Jersey EDA Port Newark Container Series B (Industrial Development Revenue, Sovereign Bank LOC) ø		0.69			7-1-2030		11,200,000		11,200,000
New Jersey EDA School Facilities Construction Project Prerefunded Bond Series EE (Miscellaneous Revenue)		5.50			9-1-2021		2,025,000		2,437,675
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.96			9-1-2027		12,500,000		11,234,500

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey EDA School Facilities Construction Project Series K (Miscellaneous Revenue, Ambac Insured)		5.25	%		12-15-2020	$	3,000,000	$	3,361,200
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2024		1,645,000		1,921,278
New Jersey EDA School Facilities Construction Project Unrefunded Bond Series EE (Miscellaneous Revenue)		5.50			9-1-2021		750,000		846,308
New Jersey EDA School Facilities Construction Series C (Miscellaneous Revenue) ±		2.21			2-1-2018		6,500,000		6,472,830
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			7-1-2020		500,000		569,620
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			1-1-2021		585,000		669,164
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			7-1-2021		900,000		1,042,803
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			1-1-2023		400,000		466,856
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2026		12,000,000		8,156,400
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		1,900,000		2,128,304
New Jersey TTFA Series AA (Transportation Revenue)		2.50			6-15-2018		2,150,000		2,182,852
New Jersey TTFA Series AA (Transportation Revenue)		4.00			6-15-2018		2,900,000		3,027,745
New Jersey TTFA Series AA (Transportation Revenue)		5.00			6-15-2023		4,665,000		5,278,587
New Jersey TTFA Series B (Transportation Revenue)		5.00			6-15-2020		2,000,000		2,202,940
New Jersey TTFA Series D (Transportation Revenue)		5.00			12-15-2023		6,960,000		7,901,758
Newark NJ Housing Authority (Miscellaneous Revenue, National Insured)		5.25			1-1-2019		2,995,000		3,290,067
Paterson NJ General Improvement (GO Revenue, AGM Insured)		5.00			6-15-2020		400,000		438,952
									79,900,993
New Mexico: 0.91%
New Mexico Educational Assistance Foundation Series A2 (Education Revenue) ±		1.32			12-1-2028		260,000		258,713
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.06			11-1-2039		17,100,000		16,967,133
									17,225,846
New York: 9.20%
Albany NY IDA Foundation State University Project Series A (Education Revenue) ±		0.77			7-1-2032		3,030,000		3,030,000
Albany NY IDA Teresan House Series A (Health Revenue, Citizens Bank LOC) ø		0.65			7-1-2016		545,000		545,000
Build New York City Resource Corporation Bronx Charter School for International Cultures & Arts Series A (Education Revenue)		3.88			4-15-2023		1,000,000		1,012,760
Deutsche Bank SPEAR/LIFER Trust Series DBE 1088 (GO Revenue, HUD Insured, Deutsche Bank LIQ) 144Aø		1.06			9-1-2029		8,255,000		8,255,000
East Rochester NY Housing Authority Home Good Sheperd Project Series A (Housing Revenue, Citizens Bank LOC) ø		0.65			12-1-2036		2,655,000		2,655,000
Metropolitan Transportation Authority Subseries E-2 (Transportation Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.40			11-15-2050		10,000,000		10,000,000
Monroe County NY Greece New York Central School (GO Revenue)		2.00			6-30-2017		7,900,000		7,990,929
Monroe County NY Industrial Development Corporation Unity Hospital Rochester Project (Health Revenue, FHA Insured)		4.20			8-15-2025		7,195,000		7,209,390
New York IDA American Airlines JFK International Airport (Industrial Development Revenue)		7.50			8-1-2016		840,000		844,998
New York Local Government Assistance Corporation Series A9V (Tax Revenue, AGM Insured) ±(m)(n)		0.57			4-1-2017		625,000		623,438

The accompanying notes are an integral part of these financial statements.

20 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York Metropolitan Transportation Authority Dedicated Tax Fund (Tax Revenue) ±		1.36	%		11-1-2019	$	7,500,000	$	7,503,900
New York NY Energy Research & Development Authority Gas Facilities Brooklyn Union Gas Project Series A1 (Utilities Revenue, National Insured) ±(m)(n)		0.75			12-1-2020		8,250,000		7,899,375
New York NY Industrial Development Agency Congregation Machine Chaim Incorporated (Miscellaneous Revenue, Santander Bank NA LOC) ø		0.68			5-1-2036		7,050,000		7,050,000
New York NY John F. Kennedy International Airport Project Series B (Industrial Development Revenue) ±		2.00			8-1-2028		2,800,000		2,797,144
New York NY Series A-6 (GO Revenue, AGM Insured, Dexia Credit Local SPA) ø		0.55			11-1-2026		7,000,000		7,000,000
New York NY Series J-4 (GO Revenue) ±		0.96			8-1-2025		6,700,000		6,700,201
New York NY Transitional Finance Authority Sub Series 2B (Tax Revenue, Dexia Credit Local SPA) ø		0.54			11-1-2022		5,000,000		5,000,000
New York NY Transitional Finance Authority Sub Series 2E (Tax Revenue, Dexia Credit Local SPA) ø		0.64			11-1-2022		3,005,000		3,005,000
New York NY Transitional Finance Authority Sub Series A3 (Tax Revenue, Dexia Credit Local SPA) ø		0.55			8-1-2023		16,050,000		16,050,000
New York NY Transitional Finance Authority Sub Series C3 (Tax Revenue, Dexia Credit Local SPA) ø		0.54			8-1-2031		10,000,000		10,000,000
New York Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		5.00			6-1-2022		3,000,000		3,116,220
New York Tobacco Settlement Financing Corporation Series B (Tobacco Revenue)		5.00			6-1-2021		9,500,000		9,869,360
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project Series 2016 (Airport Revenue)		5.00			8-1-2026		2,750,000		3,041,748
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project Series 2016 (Airport Revenue)		5.00			8-1-2020		8,000,000		8,804,800
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		13,950,000		13,955,580
New York Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2020		10,000,000		11,523,400
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2017		250,000		257,863
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2018		500,000		533,830
Oyster Bay NY (GO Revenue)		3.75			3-31-2017		1,350,000		1,362,366
Suffolk County NY Economic Development Corporation (Health Revenue)		5.00			7-1-2017		1,000,000		1,041,350
Suffolk County NY Tobacco Asset Securitization Corporation (Tobacco Revenue)		5.00			6-1-2019		575,000		637,698
Suffolk County NY Tobacco Asset Securitization Corporation (Tobacco Revenue)		5.00			6-1-2020		625,000		710,938
Suffolk County NY Village of Ocean Beach BAN (GO Revenue)		2.00			4-13-2017		4,000,000		4,035,840
Ulster County NY Resource Recovery Agency (Resource Recovery Revenue)		3.00			3-1-2017		900,000		911,916
									174,975,044
North Carolina: 0.10%
North Carolina Capital Finance Republic Services Incorporated Project Series 2013 (Resource Recovery Revenue) ±		0.80			6-1-2038		1,975,000		1,975,000
North Dakota: 0.06%
Ward County ND Health Care Facility Trinity Obligated Group Series B (Health Revenue)		6.25			7-1-2021		1,080,000		1,085,000
Ohio: 2.67%
Akron OH Sanitary Sewer System Improvement Project (Water & Sewer Revenue, Ambac Insured)		5.00			12-1-2017		750,000		791,242

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Ohio (continued)
Alliance OH Hospital Alliance Obligated Group (HCFR, Radian Insured) (Health Revenue, JPMorgan Chase & Company LOC, AGC Insured) ±		0.35	%		12-1-2032	$	4,650,000	$	4,650,000
Cleveland OH Airport System Series B (Airport Revenue, AGM Insured) %%		5.00			1-1-2022		3,270,000		3,798,497
Cleveland OH Airport System Series B (Airport Revenue, AGM Insured) %%		5.00			1-1-2023		3,010,000		3,562,546
Cleveland OH Airport System Series B (Airport Revenue, AGM Insured) %%		5.00			1-1-2024		2,100,000		2,530,668
Cleveland OH Airport System Series C (Airport Revenue, AGM Insured)		5.00			1-1-2020		1,000,000		1,022,310
Cleveland OH Airport System Series C (Airport Revenue, AGM Insured)		5.00			1-1-2022		5,000,000		5,111,550
Ohio Air Quality Development Authority PCR Facilities Refunding Bond FirstEnergy Generation Project (Resource Recovery Revenue) ±		3.10			3-1-2023		2,000,000		2,020,940
Ohio University Hospital Health System Series B (Health Revenue) ø		0.72			1-15-2045		10,000,000		10,000,000
Ohio University Hospital Health System Series B (Health Revenue) ø		0.72			1-15-2033		5,000,000		5,000,000
Ohio Water Development Authority First Energy Nuclear Generation Project Series A (Water & Sewer Revenue)		3.00			5-15-2019		7,000,000		7,059,500
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		5,000,000		5,142,350
									50,689,603
Oklahoma: 0.15%
Comanche County OK Hospital Authority Series A (Health Revenue)		5.00			7-1-2018		795,000		834,543
Woodward County OK PFFA Series B (Tax Revenue)		3.25			9-1-2026		2,000,000		2,025,200
									2,859,743
Oregon: 0.16%
Polk County OR Hospital Facility Authority Dallas Retirement Village Project Series A (Health Revenue)		3.63			7-1-2020		3,000,000		3,013,800
Other: 0.10%
Public Housing Capital Fund Trust II (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		1,894,791		1,974,543
Pennsylvania: 4.46%
Allegheny County PA Penn Hills School District Series 2015 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2023		1,025,000		1,206,312
Allegheny County PA Penn Hills Schools District Series 2015 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2022		340,000		394,138
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		2,000,000		2,037,420
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.93			11-1-2039		8,750,000		8,819,212
Delaware County PA IDA Chester Charter School Series A (Education Revenue) 144A		4.38			6-1-2026		1,785,000		1,819,522
Delaware County PA IDA Chester Community Charter School (Education Revenue)		4.50			8-15-2017		2,035,000		2,058,748
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue)		5.75			7-1-2017		1,191,000		1,249,645
Fulton County PA IDA Medical Center Project (Health Revenue)		2.40			7-1-2020		3,125,000		3,164,406
Montgomery County PA HEFAR Arcadia University (Education Revenue)		5.00			4-1-2022		1,575,000		1,818,716
Montgomery County PA HEFAR Arcadia University (Education Revenue)		5.00			4-1-2023		1,655,000		1,941,729
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.60			3-1-2034		7,500,000		7,739,850
Montgomery County PA IDA Peco Energy Company Project Series B (Industrial Development Revenue) ±		2.55			6-1-2029		10,340,000		10,576,889
Pennsylvania EDFA Solid Waste Disposal Republic Services Incorporated Project (Resource Recovery Revenue) ±		0.90			6-1-2044		2,000,000		2,000,000
Pennsylvania HEFAR Shippensburg University Student Services (Education Revenue)		4.00			10-1-2017		550,000		564,564

The accompanying notes are an integral part of these financial statements.

22 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00	%		4-1-2019	$	4,650,000	$	5,041,251
Pennsylvania Public School Building Authority Albert Gallatin Area School District Project (Miscellaneous Revenue) ±		1.11			9-1-2024		4,235,000		4,234,915
Pennsylvania Turnpike Commission Series A (Transportation Revenue) ±		1.09			12-1-2018		11,150,000		11,132,829
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		1.66			12-1-2020		10,000,000		10,088,400
Philadelphia PA Authority for Industrial Development Tacony Academy Christian School Project Series A-1 (Education Revenue)		6.25			6-15-2023		730,000		830,317
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2017		1,500,000		1,553,280
Philadelphia PA School District Series B (GO Revenue)		3.13			9-1-2020		200,000		206,462
Philadelphia PA School District Series E (GO Revenue)		5.25			9-1-2023		5,770,000		6,353,462
									84,832,067
Puerto Rico: 1.39%
Puerto Rico Aqueduct & Sewer Authority Series A (Water & Sewer Revenue, AGC Insured)		5.00			7-1-2016		5,190,000		5,190,571
Puerto Rico CAB Refunding Bonds (Miscellaneous Revenue, National Insured) ¤		0.00			7-1-2016		400,000		399,928
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		1,000,000		1,035,570
Puerto Rico Electric Power Authority Refunding Bond Series UU (Utilities Revenue, AGM Insured)		5.00			7-1-2016		1,015,000		1,015,081
Puerto Rico Electric Power Authority Series L (Utilities Revenue, National Insured)		5.50			7-1-2016		2,740,000		2,740,274
Puerto Rico Highway & Transportation Authority Series A (Tax Revenue, Ambac Insured) ¤		0.00			7-1-2017		1,890,000		1,821,960
Puerto Rico Highway & Transportation Authority Series BB (Transportation Revenue, Ambac Insured)		5.25			7-1-2017		3,185,000		3,223,124
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2019		1,840,000		1,948,174
Puerto Rico Municipal Finance Authority Series C (Miscellaneous Revenue, AGM Insured)		5.25			8-1-2017		300,000		312,000
Puerto Rico Municipal Finance Authority Series C (Tobacco Revenue, BHAC/FGIC Insured)		5.50			7-1-2020		7,050,000		8,023,817
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		2,800,000		322,000
Puerto Rico Series PA-650 (Tax Revenue, National Insured)		6.00			7-1-2016		325,000		325,036
									26,357,535
Rhode Island: 0.43%
Providence RI RDA Series A (Miscellaneous Revenue)		5.00			4-1-2022		1,940,000		2,245,899
Providence RI RDA Series A (Miscellaneous Revenue)		5.00			4-1-2023		1,585,000		1,857,446
Rhode Island Clean Water Finance Agency Cranston Wastewater Treatment System (Miscellaneous Revenue, National Insured)		5.80			9-1-2022		975,000		977,057
Rhode Island Housing & Mortgage Finance (Housing Revenue)		6.50			4-1-2027		15,000		15,130
Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		2.25			6-1-2041		3,135,000		3,156,475
									8,252,007
South Carolina: 1.57%
Berkeley County SC Nucor Corporation Project (Industrial Development Revenue) ø		0.70			9-1-2028		12,700,000		12,700,000

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
South Carolina (continued)
Royal Bank of Canada Municipal Products Incorporated Trust Floater Series O-9 (Utilities Revenue, Royal Bank of Canada LIQ) 144Aø		0.50	%		7-1-2018	$	9,300,000	$	9,300,000
South Carolina Jobs EDA Brashier Charter LLC Project (Education Revenue, SunTrust Bank LOC) ø		0.48			12-1-2038		6,860,000		6,860,000
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		5.75			11-1-2023		985,000		1,059,230
									29,919,230
South Dakota: 0.06%
South Dakota HEFA (Health Revenue)		4.50			9-1-2019		990,000		1,070,685
Tennessee: 1.13%
Shelby County TN Health Educational & Housing Facilities Board Methodist Le Bonheur Series B (Health Revenue, AGM Insured, U.S. Bank NA SPA) ø		0.38			6-1-2042		10,000,000		10,000,000
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		1,655,000		1,732,719
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		4,000,000		4,342,240
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2020		4,720,000		5,430,643
									21,505,602
Texas: 7.88%
Austin TX Airport Systems Bond (Airport Revenue)		5.00			11-15-2026		1,655,000		2,023,055
Austin TX Community College District Series A (Education Revenue)		4.00			2-1-2023		300,000		347,745
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2021		1,000,000		1,167,040
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2023		500,000		607,005
Clifton TX Higher Education Finance Corporation International Leadership Series 2015A (Education Revenue)		4.63			8-15-2025		8,905,000		9,502,080
Clifton TX Higher Education Finance Corporation Uplift Education Series A (Education Revenue)		4.00			12-1-2025		3,740,000		4,163,817
Coastal Water Authority Texas Conveyance System (Water & Sewer Revenue, FGIC Insured)		7.50			12-15-2016		20,000		20,123
Galveston TX Wharves & Terminal (Airport Revenue)		5.00			2-1-2017		1,100,000		1,123,760
Guadalupe County TX City of Seguin Board of Managers Hospital Mortgage Refunding and Improvement Bonds Series 2015 (Health Revenue)		5.00			12-1-2016		1,000,000		1,016,610
Guadalupe County TX City of Seguin Board of Managers Hospital Mortgage Refunding and Improvement Bonds Series 2015 (Health Revenue)		5.00			12-1-2017		725,000		760,815
Houston TX Independent School District Series B (GO Revenue) ±		1.70			6-1-2036		14,000,000		14,209,440
Houston TX Midtown RDA Series 2011 (Tax Revenue)		5.00			1-1-2017		2,270,000		2,314,855
Houston TX Public Improvement Refunding Bonds Series A (GO Revenue)		5.00			3-1-2020		11,000,000		12,575,640
Hunt TX Memorial Hospital Series 1998 (Health Revenue, AGM Insured, JPMorgan Chase & Company SPA) ø		0.53			8-15-2017		2,725,000		2,725,000
Lewisville TX Independent School District Series B (GO Revenue)		5.00			8-15-2024		5,290,000		6,634,771
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		1.75			2-15-2018		250,000		250,538
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		1.40			2-15-2017		225,000		224,975
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		1.95			2-15-2019		250,000		251,340
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		5.00			2-15-2020		810,000		899,351

The accompanying notes are an integral part of these financial statements.

24 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal			Value
Texas (continued)
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		5.00	%		2-15-2021	$	560,000		$	634,911
Newark TX Higher Educational Finance Corporation Charter Schools Incorporated Series 2015 A (Education Revenue) 144A		4.63			8-15-2025		1,485,000			1,559,948
North Texas Higher Education Authority Incorporated Student Loan Series 2 Class A (Education Revenue) ±		1.63			4-1-2037		2,225,000			2,225,267
North Texas Tollway Authority System Refunding Bonds Series C (Transportation Revenue) ±		1.06			1-1-2038		3,550,000			3,524,121
Pearland TX Permanent Improvement Series 2015 (GO Revenue)		5.00			3-1-2021		1,000,000			1,180,560
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.52			4-1-2040		5,700,000			5,700,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.53			4-1-2040		3,100,000			3,100,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ±		0.52			11-1-2040		10,000,000			10,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ø		0.53			11-1-2040		8,000,000			8,000,000
Sam Rayburn TX Municipal Power Agency Bonds Series 2012 (Utilities Revenue)		5.00			10-1-2017		560,000			588,672
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2974 (Health Revenue, Credit Suisse LIQ) 144Aø		0.61			11-15-2029		2,700,000			2,700,000
Tender Option Bond Trust Receipts Floaters Series 2015 (Transportation Revenue, Barclays Bank plc LIQ) 144Aø		0.67			7-1-2021		10,500,000			10,500,000
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2017		1,010,000			1,034,210
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.88			9-15-2017		4,465,000			4,448,792
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2020		185,000			199,073
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2021		310,000			337,674
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2022		430,000			472,084
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		5.00			4-1-2025		480,000			571,714
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2020		1,715,000			1,931,913
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2021		1,275,000			1,459,748
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.65			4-1-2026		13,000,000			13,000,000
Weslaco TX Health Facilities Development Various Refunding and Improvement Knapp Medical Center Series A (Health Revenue, Compass Bank LOC) ø		0.74			6-1-2038		6,480,000			6,480,000
Weslaco TX Health Facilities Development Various Refunding and Improvement Knapp Medical Center Series B (Health Revenue, Compass Bank LOC) ø		0.74			6-1-2031		6,795,000			6,795,000
Wood Glen TX Housing Finance Corporation Mortgage Copperwood Project Series A (Miscellaneous Revenue, National/FHA Insured)		7.65			7-1-2022		2,125,000			2,614,260
								��		149,875,907
Vermont: 1.01%
Vermont Student Assistance Corporation Education Loan Series A (Education Revenue)		5.00			6-15-2021		1,800,000			2,043,162
Vermont Student Assistance Corporation Education Loan Series A (Education Revenue)		5.00			6-15-2022		550,000			630,207

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Vermont (continued)
Vermont Student Assistance Corporation Education Loan Series A (Education Revenue)		5.00	%		6-15-2023	$	1,200,000	$	1,396,944
Vermont Student Assistance Corporation Series B Class B (Education Revenue) ±		1.46			6-2-2042		11,713,564		11,502,486
Vermont Student Assistance Corporation Series BCL-A1 (Education Revenue) ±		2.18			6-1-2022		3,654,548		3,696,064
									19,268,863
Virgin Islands: 0.09%
Virgin Islands PFA Sub Lien Series C (Miscellaneous Revenue)		5.00			10-1-2017		1,600,000		1,662,496
Virginia: 1.23%
Caroline County VA Industrial Development Public Facility Lease BAN (Miscellaneous Revenue)		4.00			8-1-2016		1,800,000		1,803,402
Dulles VA Town Center CDA (Miscellaneous Revenue)		4.00			3-1-2017		1,910,000		1,933,818
Louisa VA Electric and Power IDA Series 2008B (Utilities Revenue) ±		2.15			11-1-2035		19,000,000		19,712,690
									23,449,910
Washington: 2.08%
King County WA Sewer Series B (Water & Sewer Revenue, Landesbank Hessen-Thüringen LOC) ±		0.42			1-1-2032		6,000,000		6,000,000
Redmond WA Library Capital Facilities Area (GO Revenue)		5.00			12-1-2017		200,000		200,804
Washington Eclipse Funding Trust Various States Solar Eclipse (Miscellaneous Revenue, U.S. Bank NA LOC, U.S. Bank NA LIQ) 144Aø		0.42			12-1-2031		9,945,000		9,945,000
Washington HCFR Catholic Health Initiatives Series B (Health Revenue) ±		1.81			1-1-2035		15,000,000		14,867,700
Washington Housing Finance Commission Nonprofit Housing Bonds Heron’s Key Senior Living Series B3 (Health Revenue) 144A		4.38			1-1-2021		1,625,000		1,650,041
Washington Housing Finance Commission Wesley Homes (Health Revenue, AGC Insured)		5.63			1-1-2022		6,545,000		6,914,531
									39,578,076
West Virginia: 0.28%
West Virginia EDA Solid Waste Disposal Appalachian Power Company (Utilities Revenue, Mizuho Corporate Bank LOC) ø		0.72			2-1-2036		5,275,000		5,275,000
Wisconsin: 2.23%
Franklin WI Waste Management Series A (Resource Recovery Revenue)		1.00			11-1-2016		15,000,000		15,005,100
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2019		3,800,000		4,253,758
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		4.75			8-1-2023		1,140,000		1,261,102
Pine Lake WI PFA Preparatory Series 2015 (Education Revenue) 144A		4.35			3-1-2025		2,710,000		2,874,199
Wisconsin HEFA Bellin Memorial Hospital Series 2015 (Health Revenue)		3.00			12-1-2020		720,000		770,630
Wisconsin HEFA Bellin Memorial Hospital Series 2015 (Health Revenue)		5.00			12-1-2022		755,000		915,966
Wisconsin HEFA Wheaton Franciscan Healthcare Series A (Health Revenue)		5.25			8-15-2034		10,000,000		10,057,800
Wisconsin PFA Airport Series C (Airport Revenue)		5.00			7-1-2022		2,700,000		2,964,438
Wisconsin Residual Interest Bonds Floater Trust Various States Series 2WE (Miscellaneous Revenue, Barclays Bank plc LOC) 144Aø		0.58			5-1-2018		4,310,000		4,310,000
									42,412,993
Wyoming: 2.16%
Gillette WY Customized Purchase Pollution Control Series 1988 (Industrial Development Revenue) ø		0.47			1-1-2018		10,000,000		10,000,000

The accompanying notes are an integral part of these financial statements.

26 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Wyoming (continued)
Lincoln County WY PCR Refunding Bond PacifiCorp Project Series 1994 (Industrial Development Revenue) ø		0.47	%		11-1-2024	$	7,530,000	$	7,530,000
Sweetwater County WY PCR Refunding Bond PacifiCorp Project Series A (Industrial Development Revenue) ø		0.52			1-1-2017		23,500,000		23,500,000
									41,030,000
Total Municipal Obligations (Cost $1,776,671,195)									1,805,825,739
Yankee Corporate Bonds and Notes: 0.53%
Financials: 0.53%
Banks: 0.53%
HSBC Holdings plc		4.25			8-18-2025		10,000,000		10,095,510
Total Yankee Corporate Bonds and Notes (Cost $9,994,900)									10,095,510
Other: 0.56%
Eaton Vance New York Municipal Income Trust		1.91			9-1-2019		10,600,000		10,616,112
Total Other (Cost $10,600,000)									10,616,112
	Yield					Shares
Short-Term Investments: 1.53%
Investment Companies: 1.44%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.30					27,442,222		27,442,222
						Principal
U.S. Treasury Securities: 0.09%
U.S. Treasury Bill #(z)		0.26			9-15-2016	$	1,650,000		1,649,246
Total Short-Term Investments (Cost $29,091,295)								$	29,091,468

Total investments in securities (Cost $1,826,357,390) *	97.60	%		1,855,628,829
Other assets and liabilities, net	2.40			45,536,041
Total net assets	100.00	%	$	1,901,164,870

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 27

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end.

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

¤ The security is issued in zero coupon form with no periodic interest payments.

± Variable rate investment. The rate shown is the rate in effect at period end.

%% The security is issued on a when-issued basis.

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

(n) The auction to set the interest rate on the security failed at period end due to insufficient investor interest. A failed auction does not itself cause a default.

(s) The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

## All or a portion of this security is segregated for when-issued securities.

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

(z) Zero coupon security. The rate represents the current yield to maturity.

* Cost for federal income tax purposes is $1,826,358,431 and unrealized gains (losses) consists of:

Gross unrealized gains	$	33,879,254
Gross unrealized losses		(4,608,856	)
Net unrealized gains	$	29,270,398

The accompanying notes are an integral part of these financial statements.

28 Wells Fargo Strategic Municipal Bond Fund Statement of assets and liabilities—June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $1,798,915,168)	$	1,828,186,607
In affiliated securities, at value (cost $27,442,222)		27,442,222
Total investments, at value (cost $1,826,357,390)		1,855,628,829
Receivable for investments sold		49,711,052
Receivable for Fund shares sold		8,202,545
Receivable for interest		11,898,599
Receivable for daily variation margin on open futures contracts		56,651
Prepaid expenses and other assets		180,843
Total assets		1,925,678,519
Liabilities
Dividends payable		246,988
Payable for investments purchased		12,222,263
Payable for Fund shares redeemed		5,989,803
Payable for daily variation margin on open futures contracts		10,703
Due to custodian		4,920,781
Management fee payable		545,364
Distribution fees payable		95,979
Administration fees payable		185,385
Accrued expenses and other liabilities		296,383
Total liabilities		24,513,649
Total net assets	$	1,901,164,870
NET ASSETS CONSIST OF
Paid-in capital	$	1,865,284,071
Overdistributed net investment income		(260,322	)
Accumulated net realized gains on investments		9,518,646
Net unrealized gains on investments		26,622,475
Total net assets	$	1,901,164,870
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	726,135,016
Shares outstanding – Class A1		80,129,221
Net asset value per share – Class A		$9.06
Maximum offering price per share – Class A2		$9.44
Net assets – Class B	$	629,069
Shares outstanding – Class B1		69,595
Net asset value per share – Class B		$9.04
Net assets – Class C	$	156,559,504
Shares outstanding – Class C1		17,215,921
Net asset value per share – Class C		$9.09
Net assets – Administrator Class	$	408,846,026
Shares outstanding – Administrator Class1		45,131,246
Net asset value per share – Administrator Class		$9.06
Net assets – Institutional Class	$	608,995,255
Shares outstanding – Institutional Class1		67,214,530
Net asset value per share – Institutional Class		$9.06

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/96 of net asset value. On investments of $50,000 or more, the offering price is reduced.

The accompanying notes are an integral part of these financial statements.

Statement of operations—year ended June 30, 2016 Wells Fargo Strategic Municipal Bond Fund 29

Investment income
Interest	$	38,457,796
Dividends		1,047,342
Income from affiliated securities		24,386
Total investment income		39,529,524
Expenses
Management fee		6,297,461
Administration fees
Class A		1,033,624
Class B		1,418
Class C		244,775
Administrator Class		470,057
Institutional Class		337,751
Shareholder servicing fees
Class A		1,615,037
Class B		2,216
Class C		382,461
Administrator Class		1,171,119
Distribution fees
Class B		6,648
Class C		1,147,384
Custody and accounting fees		102,149
Professional fees		62,524
Registration fees		156,000
Shareholder report expenses		43,118
Trustees’ fees and expenses		7,971
Other fees and expenses		20,060
Total expenses		13,101,773
Less: Fee waivers and/or expense reimbursements		(303,087	)
Net expenses		12,798,686
Net investment income		26,730,838
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		13,411,419
Futures transactions		(1,848,979	)
Net realized gains on investments		11,562,440
Net change in unrealized gains (losses) on:
Unaffiliated securities		25,888,304
Futures transactions		(2,648,964	)
Net change in unrealized gains (losses) on investments		23,239,340
Net realized and unrealized gains (losses) on investments		34,801,780
Net increase in net assets resulting from operations	$	61,532,618

The accompanying notes are an integral part of these financial statements.

30 Wells Fargo Strategic Municipal Bond Fund Statement of changes in net assets

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	26,730,838					$	18,254,823
Net realized gains on investments					11,562,440						6,401,428
Net change in unrealized gains (losses) on investments					23,239,340						(15,967,757	)
Net increase in net assets resulting from operations					61,532,618						8,688,494
Distributions to shareholders from
Net investment income
Class A					(10,092,186	)					(7,013,266	)
Class B					(7,361	)					(5,108	)
Class C					(1,247,141	)					(618,851	)
Administrator Class					(7,962,494	)					(7,224,681	)
Institutional Class					(7,975,567	)					(3,392,920	)
Net realized gains
Class A					(1,603,578	)					(5,154,519	)
Class B					(2,508	)					(10,851	)
Class C					(403,600	)					(1,307,185	)
Administrator Class					(1,254,440	)					(4,674,679	)
Institutional Class					(1,022,196	)					(2,007,331	)
Total distributions to shareholders					(31,571,071	)					(31,409,391	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		29,803,012			268,004,154			29,777,905			268,139,655
Class B		17			155			464			4,204
Class C		3,644,420			32,849,534			4,088,660			36,992,480
Administrator Class		24,016,958			215,580,158			36,226,756			326,687,608
Institutional Class		49,566,722			445,463,474			40,415,312			364,245,212
					961,897,475						996,069,159
Reinvestment of distributions
Class A		1,210,914			10,875,081			1,269,048			11,415,209
Class B		1,056			9,452			1,639			14,702
Class C		154,668			1,393,195			176,306			1,591,626
Administrator Class		1,002,592			8,998,639			1,252,089			11,262,338
Institutional Class		720,101			6,471,003			418,251			3,760,225
					27,747,370						28,044,100
Payment for shares redeemed
Class A		(22,262,767	)		(199,832,447	)		(32,374,935	)		(291,426,105	)
Class B		(42,405	)		(380,448	)		(59,588	)		(535,517	)
Class C		(3,692,094	)		(33,238,979	)		(3,311,728	)		(29,908,893	)
Administrator Class		(39,420,096	)		(353,739,011	)		(35,139,053	)		(316,470,287	)
Institutional Class		(18,937,647	)		(169,986,975	)		(8,239,599	)		(74,013,710	)
					(757,177,860	)					(712,354,512	)
Net increase in net assets resulting from capital share transactions					232,466,985						311,758,747
Total increase in net assets					262,428,532						289,037,850
Net assets
Beginning of period					1,638,736,338						1,349,698,488
End of period				$	1,901,164,870					$	1,638,736,338
Overdistributed net investment income				$	(260,322	)				$	(87,766	)

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Strategic Municipal Bond Fund 31

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.90			$9.03			$8.87			$8.94			$8.77
Net investment income		0.14			0.10			0.17			0.13			0.21
Net realized and unrealized gains (losses) on investments		0.18			(0.05	)		0.21			0.01			0.18
Total from investment operations		0.32			0.05			0.38			0.14			0.39
Distributions to shareholders from
Net investment income		(0.14	)		(0.10	)		(0.17	)		(0.13	)		(0.21	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.16	)		(0.18	)		(0.22	)		(0.21	)		(0.22	)
Net asset value, end of period		$9.06			$8.90			$9.03			$8.87			$8.94
Total return1		3.67	%		0.56	%		4.41	%		1.59	%		4.48	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.81	%		0.83	%		0.82	%		0.83	%
Net expenses		0.81	%		0.81	%		0.82	%		0.82	%		0.83	%
Net investment income		1.53	%		1.16	%		1.91	%		1.49	%		2.31	%
Supplemental data
Portfolio turnover rate		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$726,135			$635,610			$656,256			$609,303			$549,357

¹  Total return calculations do not include any sales charges.

The accompanying notes are an integral part of these financial statements.

32 Wells Fargo Strategic Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS B	2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.88			$9.00			$8.85			$8.92			$8.75
Net investment income		0.07	1		0.04	1		0.10	1		0.07	1		0.15	1
Net realized and unrealized gains (losses) on investments		0.18			(0.04	)		0.20			0.01			0.17
Total from investment operations		0.25			(0.00	)		0.30			0.08			0.32
Distributions to shareholders from
Net investment income		(0.07	)		(0.04	)		(0.10	)		(0.07	)		(0.14	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.09	)		(0.12	)		(0.15	)		(0.15	)		(0.15	)
Net asset value, end of period		$9.04			$8.88			$9.00			$8.85			$8.92
Total return2		2.91	%		(0.08	)%		3.53	%		0.83	%		3.71	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.56	%		1.58	%		1.57	%		1.58	%
Net expenses		1.56	%		1.56	%		1.57	%		1.57	%		1.58	%
Net investment income		0.79	%		0.40	%		1.17	%		0.77	%		1.69	%
Supplemental data
Portfolio turnover rate		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$629			$985			$1,516			$2,128			$3,738

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Strategic Municipal Bond Fund 33

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.94			$9.06			$8.90			$8.97			$8.80
Net investment income		0.07			0.04			0.10			0.07			0.14
Net realized and unrealized gains (losses) on investments		0.17			(0.04	)		0.21			0.01			0.18
Total from investment operations		0.24			0.00			0.31			0.08			0.32
Distributions to shareholders from
Net investment income		(0.07	)		(0.04	)		(0.10	)		(0.07	)		(0.14	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.09	)		(0.12	)		(0.15	)		(0.15	)		(0.15	)
Net asset value, end of period		$9.09			$8.94			$9.06			$8.90			$8.97
Total return1		2.78	%		(0.08	)%		3.63	%		0.83	%		3.69	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.56	%		1.58	%		1.57	%		1.58	%
Net expenses		1.56	%		1.56	%		1.57	%		1.57	%		1.58	%
Net investment income		0.78	%		0.40	%		1.16	%		0.74	%		1.59	%
Supplemental data
Portfolio turnover rate		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$156,560			$152,882			$146,329			$152,155			$147,006

¹  Total return calculations do not include any sales charges.

The accompanying notes are an integral part of these financial statements.

34 Wells Fargo Strategic Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.90			$9.02			$8.87			$8.94			$8.76
Net investment income		0.15			0.12			0.18			0.15			0.22
Net realized and unrealized gains (losses) on investments		0.18			(0.04	)		0.20			0.01			0.19
Total from investment operations		0.33			0.08			0.38			0.16			0.41
Distributions to shareholders from
Net investment income		(0.15	)		(0.12	)		(0.18	)		(0.15	)		(0.22	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.17	)		(0.20	)		(0.23	)		(0.23	)		(0.23	)
Net asset value, end of period		$9.06			$8.90			$9.02			$8.87			$8.94
Total return		3.80	%		0.80	%		4.44	%		1.73	%		4.76	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.75	%		0.77	%		0.76	%		0.75	%
Net expenses		0.68	%		0.68	%		0.68	%		0.68	%		0.68	%
Net investment income		1.66	%		1.28	%		2.05	%		1.62	%		2.42	%
Supplemental data
Portfolio turnover rate		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$408,846			$529,945			$516,069			$521,312			$435,170

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Strategic Municipal Bond Fund 35

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			2015			2014			20131
Net asset value, beginning of period		$8.90			$9.03			$8.87			$9.06
Net investment income		0.17			0.13			0.20			0.08	2
Net realized and unrealized gains (losses) on investments		0.18			(0.05	)		0.21			(0.10	)
Total from investment operations		0.35			0.08			0.41			(0.02	)
Distributions to shareholders from
Net investment income		(0.17	)		(0.13	)		(0.20	)		(0.09	)
Net realized gains		(0.02	)		(0.08	)		(0.05	)		(0.08	)
Total distributions to shareholders		(0.19	)		(0.21	)		(0.25	)		(0.17	)
Net asset value, end of period		$9.06			$8.90			$9.03			$8.87
Total return3		4.02	%		0.89	%		4.77	%		(0.28	)%
Ratios to average net assets (annualized)
Gross expenses		0.48	%		0.48	%		0.50	%		0.50	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		1.85	%		1.49	%		2.27	%		1.65	%
Supplemental data
Portfolio turnover rate		53	%		39	%		51	%		49	%
Net assets, end of period (000s omitted)		$608,995			$319,313			$29,528			$31,868

¹  For the period from November 30, 2012 (commencement of class operations) to June 30, 2013

²  Calculated based upon average shares outstanding

³  Returns for periods of less than one year are not annualized.

The accompanying notes are an integral part of these financial statements.

36 Wells Fargo Strategic Municipal Bond Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Strategic Municipal Bond Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although a Fund 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 Fund’s Valuation Procedures.

Investments in registered open-end investment companies are valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the manager and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in security values and interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

Notes to financial statements Wells Fargo Strategic Municipal Bond Fund 37

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Overdistributed net investment income	Accumulated net realized gains on investments
$381,355	$(381,355)

As of June 30, 2016, the Fund had current year deferred post-October capital losses consisting of $1,483,657 in long-term losses which will be recognized on the first day of the following fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

38 Wells Fargo Strategic Municipal Bond Fund Notes to financial statements

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	1,805,825,739	$	0	$	1,805,825,739
Yankee corporate bonds and notes		0		10,095,510		0		10,095,510
Other		0		10,616,112		0		10,616,112
Short-term investments
Investment companies		27,442,222		0		0		27,442,222
U.S. Treasury securities		1,649,246		0		0		1,649,246
		29,091,468		1,826,537,361		0		1,855,628,829
Futures contracts		56,651		0		0		56,651
Total assets	$	29,148,119	$	1,826,537,361	$	0	$	1,855,685,480
Liabilities
Futures contracts	$	10,703	$	0	$	0	$	10,703
Total liabilities	$	10,703	$	0	$	0	$	10,703

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date.

All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1. The Fund had no material transfers between Level 2 and Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative

Notes to financial statements Wells Fargo Strategic Municipal Bond Fund 39

services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.37% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:

	Class-level administration fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.82% for Class A shares, 1.57% for Class B shares, 1.57% for Class C shares, 0.68% for Administrator Class shares, and 0.48% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fees

The Trust has adopted a distribution plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended June 30, 2016, Funds Distributor received $20,894 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C, and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $716,910,614 and $699,736,260, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

40 Wells Fargo Strategic Municipal Bond Fund Notes to financial statements

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

As of June 30, 2016, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract Value at June 30, 2016		Unrealized losses
9-21-2016	JPMorgan	650 Short		10-Year U.S. Treasury Note	$	86,439,844	$	(2,347,394	)
9-30-2016	JPMorgan	337 Short		5-Year U.S. Treasury Note		41,169,289		(301,570	)

The Fund had an average notional amount of $1,626,484 and $70,940,237 in long and short futures contracts, respectively, during the year ended June 30, 2016.

On June 30, 2016, the cumulative unrealized losses on futures contracts in the amount of $2,648,964 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable/payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$56,651	$	(10,703	)	$	0	$	45,948

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged		Net amount of liabilities
Futures – variation margin	JPMorgan	$10,703	$	(10,703	)	$	0	$	0

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

Notes to financial statements Wells Fargo Strategic Municipal Bond Fund 41

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Ordinary income	$	3,379,804	$	10,355,544
Tax-exempt income		24,413,314		17,846,390
Long-term capital gain		3,777,953		3,207,457

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Post-October capital loss deferred	Unrealized gains
$8,354,381	$(1,483,657)	$29,270,398

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

42 Wells Fargo Strategic Municipal Bond Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Strategic Municipal Bond Fund (formerly known as Wells Fargo Advantage Strategic Municipal Bond Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Strategic Municipal Bond Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

Other information (unaudited) Wells Fargo Strategic Municipal Bond Fund 43

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $3,777,953 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2016.

For the fiscal year ended June 30, 2016, $1,702,966 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended June 30, 2016, $889,724 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 852 of the Internal Revenue Code, 90.87% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

44 Wells Fargo Strategic Municipal Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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 Strategic Municipal Bond Fund 45

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.
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.

46 Wells Fargo Strategic Municipal Bond Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Strategic Municipal Bond Fund (the “Fund”): (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 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.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

Other information (unaudited) Wells Fargo Strategic Municipal Bond Fund 47

The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays Short-Intermediate Municipal Bond Index, for all periods under review except the one- and ten-year periods.

The Board also received and considered information regarding the 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 in comparison to the median ratios of funds in class-specific 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 the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

48 Wells Fargo Strategic Municipal Bond Fund Other information (unaudited)

Economies of Scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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 Strategic Municipal Bond Fund 49

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 Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

244411 08-16 A257/AR257 6-16

Annual Report

June 30, 2016

Wells Fargo

Ultra Short-Term Municipal Income Fund

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Summary portfolio of investments*	9
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	19
Notes to financial statements	23
Report of independent registered public accounting firm	28
Other information	29
List of abbreviations	35

* A complete schedule of portfolio holdings as of the report date may be obtained, free of charge, by accessing the following website: https://www.wellsfargofunds.com/assets/edocs/regulatory/holdings/ultra-short-term-municipal-income-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 June 30, 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 Ultra Short-Term Municipal Income Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Ultra Short-Term Municipal Income Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016.

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 3

The state of Illinois approved a six-month stopgap budget, a temporary but meaningful step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large trades are more difficult to execute. However, fixed-income markets appear to have functioned 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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Ultra Short-Term Municipal Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax, consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Wendy Casetta

Lyle J. Fitterer, CFA,^® CPA

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge								Excluding sales charge								Expense ratios2 (%)
	Inception date	1 year			5 year			10 year		1 year			5 year			10 year		Gross		Net3
Class A (SMAVX)	10-2-2000		(1.41	)		0.02			1.63		0.61			0.43			1.84		0.74		0.67
Class C (WFUSX )	3-31-2008		(1.19	)		(0.30	)		1.09		(0.19	)		(0.30	)		1.09		1.49		1.42
Administrator Class (WUSMX)	7-30-2010		–			–			–		0.68			0.50			1.93		0.68		0.60
Institutional Class (SMAIX)	7-31-2000		–			–			–		0.91			0.73			2.16		0.41		0.37
Barclays 1-Year Municipal Bond Index4	–		–			–			–		1.05			0.81			2.07		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 2.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to high-yield securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 5

Growth of $10,000 investment as of June 30, 2016⁵

¹  Historical performance shown for Class C shares prior to their inception reflects the performance of Class A shares, adjusted to reflect the higher expenses applicable to Class C shares. Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares, adjusted to reflect the higher expenses applicable to Administrator Class shares.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays 1-Year Municipal Bond Index is the one-year component of the Barclays Municipal Bond Index, which is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares for the most recent ten years with the Barclays 1- Year Municipal 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 2.00%.

⁶  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

⁷  The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

6 Wells Fargo Ultra Short-Term Municipal Income Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays 1-Year Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n Security selection was the main detractor from performance. The Fund was overweight the outperforming industrial development revenue/pollution control revenue and hospital sectors, but its holdings within those sectors slightly underperformed the index.

n Duration was significantly shorter than the benchmark’s duration because of the Fund’s ultra-short mandate, which helped results as short-term interest rates rose. Yield-curve positioning contributed to performance. At the front end, variable-rate demand note (VRDN) and floating-rate note (FRN) yields, with either daily or weekly coupon resets, benefited from higher short-term rates. Further out the curve, bond yields in the four- and five-year maturity range decreased, adding to performance.

n An overweight to A-rated and BBB-rated bonds, combined with an underweight to higher-rated and prerefunded bonds, helped performance.

In a period of ultralow yields, short-term rates rose and longer-term rates declined.

At the beginning of the period, the base-case projection for an increase in the federal funds target rate was late 2015, which made bonds with shorter-term maturities less attractive due to a potential backup in municipal rates as the U.S. Federal Reserve (Fed) normalized its interest-rate policy. Also, money market reform is scheduled to take effect in October 2016. As a result, demand for municipal-money-market eligible paper declined and yields on the very front end of the yield curve rose. Consequently, the municipal yield curve flattened due to the underperformance of the short end of the curve and the outperformance of the longer end of the curve. Inflows into municipal bond funds remained positive as yields in other parts of the world have drifted into negative territory and investors are looking for alternatives.

Effective maturity distribution as of June 30, 2016⁶

During the past year, we managed the Fund in a conservative manner from a duration perspective. We held duration short relative to the benchmark by keeping nearly half of the Fund invested in VRDNs and FRNs. We believe both of these structures have the potential to benefit from a rise in interest rates while maintaining fairly stable prices and high levels of liquidity and adding little duration. We like the defensive nature of these structures and intend to maintain an overweight exposure. The balance of the portfolio was invested in securities with maturities in the four- to five-year part of the curve. We believe the steepness of the front-end of the yield curve is likely to provide nice total return opportunities as the securities roll down the yield curve, benefiting from a natural increase in price as maturities shorten while potentially providing higher levels of income.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 7

Credit quality as of June 30, 2016⁷

Credit-quality allocation helped results.

Lower-rated bonds on the shorter end of the yield curve did well during the past year. We believe lower-rated credits should continue to experience good performance as investors search for income and municipal credit trends improve. Some of our sector tactics included increasing the Fund’s exposure to short-term local general obligation bonds and corporate-backed municipal bonds because we believe near-term fundamentals continue to look favorable and yield spreads are attractive from a longer-term perspective. On the other hand, we have increased our exposure to housing bonds that are backed by an escrow invested in

Treasury bonds. This high-quality structure has provided a nice level of income while it increased the overall credit quality of the Fund.

Political noise and a lack of a state budget caused volatility within the state of Illinois, but the state’s bonds had some of the highest returns. We have been overweight Illinois bonds because we feel that the above-market income is compensating investors for the credit uncertainty. We continue to believe that the state’s economic backdrop and ability to raise revenues, combined with Illinois Governor Bruce Rauner’s focus on cutting expenses, should lead to tighter spreads. New Jersey bonds also performed well as spreads tightened. Finally, short-term insured Puerto Rico debt performed well over the period.

Rates may be lower for longer.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. It remains to be seen whether the spike down in rates is an overreaction. At this point, we still believe the U.S. economy should grow at about a 2% pace. With inflation close to the target 2% rate and the unemployment rate below 5%, it is clear that central-bank policies are keeping U.S. rates artificially low. Although we now think rates will stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to an increase in rates.

Please see footnotes on page 5.

8 Wells Fargo Ultra Short-Term Municipal Income Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,003.13	$	3.34		0.67	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.53	$	3.37		0.67	%
Class C
Actual	$	1,000.00	$	998.94	$	7.06		1.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.80	$	7.12		1.42	%
Administrator Class
Actual	$	1,000.00	$	1,003.48	$	2.99		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,004.63	$	1.84		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.02	$	1.86		0.37	%

¹ Expenses paid is equal to the annualized expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).

Summary portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 9

The Summary portfolio of investments shows the 50 largest portfolio holdings in unaffiliated issuers and any holdings exceeding 1% of the total net assets as of the report date. The remaining securities held are grouped as “Other securities” in each category.

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 0.22%
Other securities								$	12,330,750		0.22	%
Total Agency Securities (Cost $12,744,996)									12,330,750		0.22
Municipal Obligations: 95.63%
Alabama: 2.88%
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.88	%		11-15-2038	$	39,545,000		39,557,259		0.72
Tender Option Bond Trust Receipts for Alabama Series XM0184 (Utilities Revenue, Morgan Stanley Bank LIQ) ø144A		0.84			9-1-2046		31,400,000		31,400,000		0.57
Other securities									88,261,652		1.59
									159,218,911		2.88
Alaska: 0.16%
Other securities									8,973,117		0.16
Arizona: 1.51%
Phoenix AZ IDA Various Republic Services Incorporated Projects (Industrial Development Revenue) ±		0.90			12-1-2035		25,000,000		25,000,750		0.45
Scottsdale AZ IDA Healthcare Series F (Health Revenue, AGM Insured) ±(m)		0.64			9-1-2045		47,825,000		47,825,000		0.86
Other securities									10,840,427		0.20
									83,666,177		1.51
Arkansas: 0.04%
Other securities									2,247,489		0.04
California: 6.46%
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series A (Transportation Revenue) ±		1.00			4-1-2047		28,885,000		28,915,618		0.52
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-2 (Miscellaneous Revenue) ±		0.67			4-1-2038		22,920,000		22,894,559		0.41
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-3 (Miscellaneous Revenue) ±		0.67			4-1-2038		15,600,000		15,582,684		0.28
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-4 (Miscellaneous Revenue) ±		0.67			4-1-2038		32,000,000		31,964,480		0.58
California Statewide CDA (Various Revenue) µ		0.52-5.00			11-15-2016 to 7-1-2040		48,660,000		48,703,130		0.89
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.51			7-1-2041		29,375,000		29,375,000		0.53
Other securities									179,760,797		3.25
									357,196,268		6.46

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Colorado: 0.57%
Other securities								$	31,747,110		0.57	%
Connecticut: 3.39%
Connecticut HEFA Yale University Series T-2 (Education Revenue) ±		0.60	%		7-1-2029	$	34,520,000		34,525,523		0.62
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		24,600,000		24,663,222		0.45
Other securities									128,163,364		2.32
									187,352,109		3.39
Delaware: 0.64%
Other securities									35,400,000		0.64
District of Columbia: 0.21%
Other securities									11,568,318		0.21
Florida: 3.98%
Miami-Dade County FL (Various Revenue) µ		0.61-5.25			10-1-2017 to 5-1-2031		91,435,000		92,358,185		1.68
Miami-Dade County FL School Board Certificate of Participation Series 3 (Miscellaneous Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) ø144A		0.84			9-25-2024		27,895,000		27,895,000		0.50
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) ø144A		0.78			5-1-2037		25,000,000		25,000,000		0.45
Other securities									75,066,512		1.35
									220,319,697		3.98
Georgia: 3.03%
Georgia Series G (GO Revenue) ±		0.81			12-1-2026		106,305,000		106,217,830		1.92
Other securities									61,355,201		1.11
									167,573,031		3.03
Guam: 0.07%
Other securities									3,766,366		0.07
Hawaii: 0.11%
Other securities									6,309,635		0.11
Idaho: 0.54%
Other securities									30,110,920		0.54
Illinois: 8.99%
Chicago IL Board of Education (GO Revenue) µ		0.00-5.25			12-1-2016 to 3-1-2032		31,375,000		30,642,642		0.56
Chicago IL Board of Education Series A2 (GO Revenue) ±		1.14			3-1-2035		72,320,000		68,211,479		1.23
Deutsche Bank SPEAR/LIFER Trust Series DBE 1032 (Tax Revenue, Deutsche Bank LIQ) ø144A		0.66			12-1-2036		31,235,000		31,235,000		0.57
Illinois (Various Revenue)		2.50-5.00			8-1-2016 to 1-1-2021		116,110,000		120,678,062		2.18

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Illinois (continued)
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.65	%		6-1-2025	$	38,675,000	$	38,675,000		0.70	%
Tender Option Bond Trust Receipts Floaters Series 2016-XG0008 (Health Revenue, AGC Insured, Bank of America NA LIQ) ø144A		0.68			8-15-2047		23,375,000		23,375,000		0.42
Other securities									184,229,463		3.33
									497,046,646		8.99
Indiana: 1.36%
Gary IN Woodlake-Concord Project (Housing Revenue, FHA Insured) ±		1.00			10-1-2017		22,715,000		22,722,723		0.41
Other securities									52,436,799		0.95
									75,159,522		1.36
Iowa: 0.62%
Other securities									34,534,515		0.62
Kansas: 0.63%
Other securities									34,598,254		0.63
Kentucky: 2.57%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		2.14			2-1-2040		30,700,000		30,717,499		0.56
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		50,920,000		52,863,616		0.96
Other securities									58,375,853		1.05
									141,956,968		2.57
Louisiana: 1.39%
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.82			2-1-2046		24,000,000		23,772,960		0.43
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.65			11-1-2040		35,000,000		35,000,000		0.63
Other securities									18,189,576		0.33
									76,962,536		1.39
Maine: 0.29%
Other securities									15,785,053		0.29
Maryland: 1.83%
Maryland CDA (Housing Revenue) µ		0.55-1.40			12-15-2016 to 12-1-2017		87,350,000		87,368,729		1.57
Other securities									14,036,696		0.26
									101,405,425		1.83

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Massachusetts: 2.47%
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ø		0.59	%		8-1-2043	$	78,750,000	$	78,750,000		1.43	%
Other securities									57,784,352		1.04
									136,534,352		2.47
Michigan: 3.83%
Michigan Finance Authority (Water & Sewer Revenue) µ		5.00			7-1-2016 to 7-1-2018		101,765,000		106,532,644		1.92
Other securities									105,225,232		1.91
									211,757,876		3.83
Minnesota: 0.89%
Other securities									48,953,257		0.89
Mississippi: 0.71%
Other securities									39,015,661		0.71
Missouri: 0.71%
Other securities									39,408,134		0.71
Nebraska: 0.20%
Other securities									11,244,850		0.20
Nevada: 0.02%
Other securities									1,062,780		0.02
New Jersey: 6.60%
New Jersey EDA (Various Revenue) µ		1.12-5.00			12-15-2016 to 6-15-2019		68,185,000		71,863,356		1.30
Other securities									293,265,537		5.30
									365,128,893		6.60
New Mexico: 0.73%
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.06			11-1-2039		40,685,000		40,368,878		0.73
New York: 13.29%
Metropolitan Transportation Authority New York (Various Revenue)		0.25-0.91			8-1-2016 to 11-15-2044		28,005,000		27,831,524		0.50
Metropolitan Transportation Authority New York Sub Series 3-3B (Tax Revenue) ±		0.75			11-1-2030		42,470,000		42,423,283		0.77
Metropolitan Transportation Authority New York Sub Series D-2A (Transportation Revenue, AGM Insured) ±		0.79			11-1-2032		36,650,000		36,590,627		0.66
Nassau County NY TAN Series A (GO Revenue)		2.00			9-15-2016		30,185,000		30,268,311		0.55
New York NY (Various Revenue) µ		0.15-0.96			8-1-2021 to 6-1-2036		39,315,000		39,315,659		0.71
New York NY Adjusted Fiscal 2008 Sub Series C4 (GO Revenue, AGC Insured) ±(m)		0.55			10-1-2027		53,500,000		53,500,000		0.97
New York NY Series A-6 (GO Revenue) ±		0.91			8-1-2031		39,950,000		39,878,490		0.72
New York NY Series J Sub Series J-3 (GO Revenue, AGM Insured) ±(m)		0.50			6-1-2036		25,275,000		25,275,000		0.46
New York NY Series J-9 (GO Revenue) ±		0.79			8-1-2027		38,000,000		37,968,840		0.69

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New York (continued)
New York NY Transitional Finance Authority NYC Recovery Series 3 (Tax Revenue, Dexia Credit Local SPA) ø		0.64	%		11-1-2022	$	23,375,000	$	23,375,000		0.42	%
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		37,360,000		37,374,944		0.68
Suffolk County NY (GO Revenue)		1.50-2.00			9-30-2016 to 10-15-2019		6,000,000		6,042,122		0.11
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		29,800,000		29,829,204		0.54
Suffolk County NY TAN Series I (GO Revenue)		2.00			9-30-2016		23,000,000		23,071,760		0.42
Other securities									281,817,659		5.09
									734,562,423		13.29
North Carolina: 0.77%
Other securities									42,299,473		0.77
North Dakota: 0.30%
Other securities									16,653,145		0.30
Ohio: 3.41%
Franklin County OH Hospital Facilities Series B (Health Revenue, Barclays Bank plc SPA) ø		0.42			11-15-2041		30,000,000		30,000,000		0.54
Other securities									158,500,139		2.87
									188,500,139		3.41
Oklahoma: 0.37%
Other securities									20,551,022		0.37
Oregon: 0.63%
Other securities									35,048,419		0.63
Pennsylvania: 3.69%
Pennsylvania EDFA Solid Waste Disposal Waste Management Incorporated Project (Resource Recovery Revenue) ±		0.85			8-1-2045		36,300,000		36,296,370		0.66
Other securities									167,474,499		3.03
									203,770,869		3.69
Puerto Rico: 0.27%
Other securities									15,160,021		0.27
Rhode Island: 0.50%
Other securities									27,387,601		0.50
South Carolina: 0.35%
Other securities									19,463,282		0.35
Tennessee: 1.05%
Other securities									58,120,244		1.05

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Texas: 9.48%
Lamar TX Consolidated Independent School District Schoolhouse Series A (GO Revenue) ±		2.00	%		8-15-2047	$	38,220,000	$	38,289,943		0.69	%
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		26,355,000		26,949,832		0.49
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		27,715,000		28,538,690		0.52
Round Rock TX Independent School District (GO Revenue) ±		1.50			8-1-2040		34,300,000		34,327,097		0.62
San Antonio TX Electric & Gas Refunding System Junior Lien Series A (Utilities Revenue) ±		0.67			2-1-2033		53,000,000		52,977,740		0.96
San Antonio TX Junior Lien No Reserve Fund Series F (Water & Sewer Revenue) ±		1.09			5-1-2043		12,320,000		12,321,109		0.22
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) ø144A		0.65			11-15-2029		30,400,000		30,400,000		0.55
Texas Municipal Gas Acquisition & Supply Corporation (Utilities Revenue) µ		0.98-5.00			12-15-2016 to 12-15-2017		21,955,000		21,997,996		0.40
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.88			9-15-2017		43,265,000		43,107,948		0.78
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Tax Revenue) ±		0.74			4-1-2032		24,000,000		23,980,320		0.43
Other securities									211,515,392		3.82
									524,406,067		9.48
Vermont: 0.03%
Other securities									1,586,005		0.03
Virgin Islands: 0.16%
Other securities									8,976,240		0.16
Virginia: 0.91%
Chesapeake VA EDA Electric and Power Company Series 2008A (Utilities Revenue) ±		1.75			2-1-2032		30,000,000		30,582,900		0.55
Other securities									19,472,668		0.36
									50,055,568		0.91
Washington: 0.27%
Other securities									14,733,084		0.27
West Virginia: 0.75%
West Virginia EDA Appalachian Power Company Mountaineer Project Series A (Utilities Revenue) ø		0.72			2-1-2036		25,000,000		25,000,000		0.45
Other securities									16,556,128		0.30
									41,556,128		0.75

The accompanying notes are an integral part of these financial statements.

Summary portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Wisconsin: 1.97%
Residual Interest Bonds Floaters Series 2WE-144A (Miscellaneous Revenue, Barclays Bank plc LOC) ø144A		0.58	%		5-1-2018	$	25,000,000	$	25,000,000		0.45	%
Other securities									83,635,366		1.52
									108,635,366		1.97
Total Municipal Obligations (Cost $5,282,990,525)									5,287,837,844		95.63
Other: 2.55%
Nuveen Enhanced Municipal Credit Opportunities Fund Institutional MuniFund Term Preferred Shares ±144A		1.16			10-1-2017		59,000,000		59,152,220		1.07
Nuveen Texas Quality Income Municipal Fund Institutional MuniFund Term Preferred Shares ±144A		1.01			11-1-2018		25,000,000		25,137,500		0.45
Other securities									56,581,529		1.03
Total Other (Cost $140,375,721)									140,871,249		2.55
	Yield					Shares
Short-Term Investments: 1.23%
Investment Companies: 1.22%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.30					67,619,138		67,619,138		1.22
��						Principal
U.S. Treasury Securities: 0.01%
U.S. Treasury Bill (z)#		0.26			9-15-2016	$	250,000		249,886		0.01
Total Short-Term Investments (Cost $67,868,998)									67,869,024		1.23
Total investments in securities (Cost $5,503,980,240) *									5,508,908,867		99.63
Other assets and liabilities, net									20,517,448		0.37
Total net assets								$	5,529,426,315		100.00	%

± Variable rate investment. The rate shown is the rate in effect at period end.

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end.

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.

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

µ All or some of these obligations have credit enhancements or liquidity features that may, under certain circumstances, provide for repayment of principal and interest.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

## All or a portion of this security has been segregated for when-issued securities.

(z) Zero coupon security. The rate represents the current yield to maturity.

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

* Cost for federal income tax purposes is $5,503,970,148 and unrealized gains (losses) consists of:

Gross unrealized gains	$	12,366,688
Gross unrealized losses		(7,427,969	)
Net unrealized gains	$	4,938,719

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo Ultra Short-Term Municipal Income Fund Statement of assets and liabilities—June 30, 2016

Assets
Investments
In unaffiliated securities, at value (cost $5,436,361,102)	$	5,441,289,729
In affiliated securities, at value (cost $67,619,138)		67,619,138
Total investments, at value (cost $5,503,980,240)		5,508,908,867
Receivable for investments sold		77,237,563
Receivable for Fund shares sold		20,447,646
Receivable for interest		26,920,630
Prepaid expenses and other assets		225,913
Total assets		5,633,740,619
Liabilities
Dividends payable		991,222
Payable for investments purchased		83,921,488
Payable for Fund shares redeemed		16,452,565
Payable for daily variation margin on open futures contracts		19,531
Due to custodian bank		767,512
Management fee payable		1,224,049
Distribution fee payable		19,746
Administration fees payable		448,301
Accrued expenses and other liabilities		469,890
Total liabilities		104,314,304
Total net assets	$	5,529,426,315
NET ASSETS CONSIST OF
Paid-in capital	$	5,524,509,370
Overdistributed net investment income		(486,020	)
Accumulated net realized gains on investments		1,035,360
Net unrealized gains on investments		4,367,605
Total net assets	$	5,529,426,315
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,209,818,227
Shares outstanding – Class A1		125,677,876
Net asset value per share – Class A		$9.63
Maximum offering price per share – Class A2		$9.83
Net assets – Class C	$	31,836,669
Shares outstanding – Class C1		3,361,598
Net asset value per share – Class C		$9.47
Net assets – Administrator Class	$	226,124,576
Shares outstanding – Administrator Class1		23,490,536
Net asset value per share – Administrator Class		$9.63
Net assets – Institutional Class	$	4,061,646,843
Shares outstanding – Institutional Class1		421,916,501
Net asset value per share – Institutional Class		$9.63

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/98 of net asset value. On investments of $50,000 or more, the offering price is reduced.

The accompanying notes are an integral part of these financial statements.

Statement of operations—year ended June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 17

Investment income
Interest	$	57,980,224
Income from affiliated securities		57,829
Total investment income		58,038,053
Expenses
Management fee		18,008,702
Administration fees
Class A		1,834,117
Class C		59,076
Administrator Class		267,244
Institutional Class		3,160,521
Investor Class		226,291	1
Shareholder servicing fees
Class A		2,865,808
Class C		92,306
Administrator Class		638,312
Investor Class		293,124	1
Distribution fee
Class C		276,919
Custody and accounting fees		287,888
Professional fees		46,164
Registration fees		224,215
Shareholder report expenses		12,682
Trustees’ fees and expenses		22,890
Other fees and expenses		39,158
Total expenses		28,355,417
Less: Fee waivers and/or expense reimbursements		(3,099,113	)
Net expenses		25,256,304
Net investment income		32,781,749
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		401,394
Futures transactions		444,593
Net realized gains on investments		845,987
Net change in unrealized gains (losses) on:
Unaffiliated securities		9,994,664
Futures transactions		(372,192	)
Net change in unrealized gains (losses) on investments		9,622,472
Net realized and unrealized gains (losses) on investments		10,468,459
Net increase in net assets resulting from operations	$	43,250,208

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

The accompanying notes are an integral part of these financial statements.

18 Wells Fargo Ultra Short-Term Municipal Income Fund Statement of changes in net assets

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	32,781,749					$	25,855,118
Net realized gains on investments					845,987						1,085,510
Net change in unrealized gains (losses) on investments					9,622,472						(21,719,373	)
Net increase in net assets resulting from operations					43,250,208						5,221,255
Distributions to shareholders from
Net investment income
Class A					(4,371,917	)					(2,749,665	)
Administrator Class					(1,193,229	)					(1,130,512	)
Institutional Class					(26,850,434	)					(21,082,314	)
Investor Class					(365,755	)1					(901,173	)
Net realized gains
Class A					(208,960	)					(244,521	)
Class C					(6,313	)					(11,088	)
Administrator Class					(41,422	)					(85,022	)
Institutional Class					(645,494	)					(858,240	)
Investor Class					0	1					(98,683	)
Total distributions to shareholders					(33,683,524	)					(27,161,218	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		76,129,489			732,473,920			111,855,247			542,684,333
Class C		206,402			1,957,767			180,062			862,969
Administrator Class		23,903,367			229,922,937			22,590,699			110,907,773
Institutional Class		381,558,709			3,670,300,026			914,711,014			4,491,582,630
Investor Class		1,404,939	1		13,526,753	1		10,840,147			53,947,649
					4,648,181,403						5,199,985,354
Reinvestment of distributions
Class A		459,511			4,421,270			578,030			2,925,065
Class C		554			5,255			1,902			9,074
Administrator Class		127,969			1,231,259			234,725			1,187,806
Institutional Class		1,790,146			17,224,273			2,557,359			12,986,750
Investor Class		28,543	1		274,869	1		189,236			963,181
					23,156,926						18,071,876
Payment for shares redeemed
Class A		(50,965,659	)		(490,321,000	)		(340,346,333	)		(1,162,471,735	)
Class C		(1,301,768	)		(12,342,895	)		(8,124,877	)		(17,508,880	)
Administrator Class		(34,686,573	)		(333,645,141	)		(73,238,026	)		(190,475,449	)
Institutional Class		(370,417,838	)		(3,562,999,025	)		(1,213,893,325	)		(3,962,637,971	)
Investor Class		(41,749,601	)1		(402,219,702	)1		(76,333,375	)		(175,481,600	)
					(4,801,527,763	)					(5,508,575,635	)
Net decrease in net assets resulting from capital share transactions					(130,189,434	)					(290,518,405	)
Total decrease in net assets					(120,622,750	)					(312,458,368	)
Net assets
Beginning of period					5,650,049,065						5,962,507,433
End of period				$	5,529,426,315					$	5,650,049,065
Overdistributed net investment income				$	(486,020	)				$	(486,434	)

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Ultra Short-Term Municipal Income Fund 19

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.61			$9.64			$9.64			$9.64			$9.64
Net investment income		0.04			0.02			0.04			0.04			0.10
Net realized and unrealized gains (losses) on investments		0.02			(0.03	)		0.00	2		(0.02	)		0.00	2
Total from investment operations		0.06			(0.01	)		0.04			0.02			0.10
Distributions to shareholders from
Net investment income		(0.04	)		(0.02	)		(0.04	)		(0.02	)		(0.10	)
Net realized gains		(0.00	)2		(0.00	)2		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.04	)		(0.02	)		(0.04	)		(0.02	)		(0.10	)
Net asset value, end of period		$9.63			$9.61			$9.64			$9.64			$9.64
Total return3		0.61	%		(0.07	)%		0.35	%		0.31	%		0.96	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.76	%
Net expenses		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%
Net investment income		0.38	%		0.23	%		0.34	%		0.32	%		0.95	%
Supplemental data
Portfolio turnover rate		41	%4		44	%4		51	%4		65	%4		111	%
Net assets, end of period (000s omitted)		$1,209,818			$961,485			$1,582,112			$1,914,970			$2,603,618

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

⁴  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

The accompanying notes are an integral part of these financial statements.

20 Wells Fargo Ultra Short-Term Municipal Income Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.49			$9.58			$9.62			$9.64			$9.64
Net investment income (loss)		(0.04	)2		(0.11	)		(0.04	)2		(0.06	)		0.02
Net realized and unrealized gains (losses) on investments		0.02			0.02			0.00	3		0.04			0.00	3
Total from investment operations		(0.02	)		(0.09	)		(0.04	)		(0.02	)		0.02
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.02	)
Net realized gains		(0.00	)3		(0.00	)3		(0.00	)3		0.00			0.00
Total distributions to shareholders		(0.00	)3		(0.00	)3		(0.00	)3		0.00			(0.02	)
Net asset value, end of period		$9.47			$9.49			$9.58			$9.62			$9.64
Total return4		(0.19	)%		(0.93	)%		(0.40	)%		(0.21	)%		0.25	%
Ratios to average net assets (annualized)
Gross expenses		1.50	%		1.50	%		1.50	%		1.50	%		1.51	%
Net expenses		1.42	%		1.42	%		1.42	%		1.42	%		1.42	%
Net investment income (loss)		(0.37	)%		(0.52	)%		(0.41	)%		(0.43	)%		0.23	%
Supplemental data
Portfolio turnover rate		41	%5		44	%5		51	%5		65	%5		111	%
Net assets, end of period (000s omitted)		$31,837			$42,289			$59,352			$89,148			$148,465

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  Calculated based upon average shares outstanding

³  Amount is less than $0.005.

⁴  Total return calculations do not include any sales charges.

⁵  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Ultra Short-Term Municipal Income Fund 21

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.61			$9.64			$9.64			$9.64			$9.64
Net investment income		0.04			0.03			0.04			0.04			0.10
Net realized and unrealized gains (losses) on investments		0.02			(0.03	)		0.00	2		0.00	2		0.00	2
Total from investment operations		0.06			0.00			0.04			0.04			0.10
Distributions to shareholders from
Net investment income		(0.04	)		(0.03	)		(0.04	)		(0.04	)		(0.10	)
Net realized gains		(0.00	)2		(0.00	)2		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.04	)		(0.03	)		(0.04	)		(0.04	)		(0.10	)
Net asset value, end of period		$9.63			$9.61			$9.64			$9.64			$9.64
Total return		0.68	%		0.00	%		0.42	%		0.38	%		1.03	%
Ratios to average net assets (annualized)
Gross expenses		0.68	%		0.69	%		0.69	%		0.69	%		0.68	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.45	%		0.30	%		0.41	%		0.39	%		0.95	%
Supplemental data
Portfolio turnover rate		41	%3		44	%3		51	%3		65	%3		111	%
Net assets, end of period (000s omitted)		$226,125			$328,134			$407,791			$482,711			$597,108

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  Amount is less than $0.005.

³  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

The accompanying notes are an integral part of these financial statements.

22 Wells Fargo Ultra Short-Term Municipal Income Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.61			$9.64			$9.64			$9.64			$9.64
Net investment income		0.07			0.05			0.06			0.06			0.12
Net realized and unrealized gains (losses) on investments		0.02			(0.03	)		0.00	2		0.00	2		0.00	2
Total from investment operations		0.09			0.02			0.06			0.06			0.12
Distributions to shareholders from
Net investment income		(0.07	)		(0.05	)		(0.06	)		(0.06	)		(0.12	)
Net realized gains		(0.00	)2		(0.00	)2		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.07	)		(0.05	)		(0.06	)		(0.06	)		(0.12	)
Net asset value, end of period		$9.63			$9.61			$9.64			$9.64			$9.64
Total return		0.91	%		0.23	%		0.65	%		0.61	%		1.26	%
Ratios to average net assets (annualized)
Gross expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.43	%
Net expenses		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%
Net investment income		0.68	%		0.54	%		0.64	%		0.61	%		1.23	%
Supplemental data
Portfolio turnover rate		41	%3		44	%3		51	%3		65	%3		111	%
Net assets, end of period (000s omitted)		$4,061,647			$3,930,234			$3,403,244			$3,085,284			$3,158,674

¹  A one-for-two share split took place after the close of business on June 12, 2015 for all classes of the Fund. The per share information has been adjusted to give effect to this transaction.

²  Amount is less than $0.005.

³  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

The accompanying notes are an integral part of these financial statements.

Notes to financial statements Wells Fargo Ultra Short-Term Municipal Income Fund 23

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Ultra Short-Term Municipal Income Fund (the “Fund”) which is a diversified series of the Trust.

Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund 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.

Investments in registered open-end investment companies are valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the manager and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in security values and interest rates. The

24 Wells Fargo Ultra Short-Term Municipal Income Fund Notes to financial statements

primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

Notes to financial statements Wells Fargo Ultra Short-Term Municipal Income Fund 25

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	0	$	12,330,750	$	12,330,750
Municipal obligations		0		5,287,837,844		0		5,287,837,844
Other		0		140,871,249		0		140,871,249
Short-term investments
Investment companies		67,619,138		0		0		67,619,138
U.S. Treasury securities		249,886		0		0		249,886
Total assets	$	67,869,024	$	5,428,709,093	$	12,330,750	$	5,508,908,867
Liabilities
Futures contracts	$	19,531	$	0	$	0	$	19,531
Total liabilities	$	19,531	$	0	$	0	$	19,531

Futures contracts are reported at their variation margin at measurement date, which represents the amount due from the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1. The Fund had no material transfers between Level 2 and Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.33% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:

	Class level administration fee
Class A, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08
Investor Class		0.19

26 Wells Fargo Ultra Short-Term Municipal Income Fund 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 Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.67% for Class A shares, 1.42% for Class C shares, 0.60% for Administrator Class shares, and 0.37% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $6,876 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Administrator Class, and Investor Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $2,505,639,495 and $1,882,690,313, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into futures contracts for to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio.

At June 30, 2016, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at June 30, 2016		Unrealized losses
9-30-2016	JPMorgan	250 Short		5-Year U.S. Treasury Note	$	30,541,016	$	(561,022	)

The Fund had an average notional amount of $54,949,534 in short futures contracts during the year ended June 30, 2016.

On June 30, 2016, the cumulative unrealized losses on futures contracts in the amount of $561,022 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to

Notes to financial statements Wells Fargo Ultra Short-Term Municipal Income Fund 27

cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of liabilites in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral pledged1			Net amount of liabilities
Futures – variation margin	JPMorgan	$19,531	$	0	$	(19,531	)	$	0

¹  Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Ordinary income	$	0	$	1,702,543
Tax-exempt income		32,781,335		24,436,678
Long-term capital gain		902,189		1,021,997

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed tax-exempt income	Undistributed long-term gain	Unrealized gains
$79,199	$505,201	$385,048	$4,938,719

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

28 Wells Fargo Ultra Short-Term Municipal Income Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the summary portfolio of investments, of the Wells Fargo Ultra Short-Term Municipal Income Fund (formerly known as Wells Fargo Advantage Ultra Short-Term Municipal Income Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Ultra Short-Term Municipal Income Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

Other information (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 29

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $902,189 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2016.

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

30 Wells Fargo Ultra Short-Term Municipal Income Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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, 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

32 Wells Fargo Ultra Short-Term Municipal Income Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Ultra Short-Term Municipal Income Fund (the “Fund”): (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 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.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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

Other information (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 33

Universe. The Board noted that the performance of the Fund (Class A) was lower than the average performance of the Universe for all periods under review except the ten-year period under review. The Board also noted that the performance of the Fund was lower than its benchmark, the Barclays 1 Year Municipal Bond Index (1-2), for all periods under review except for the ten-year period.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods noted above. The Board took note of the explanations for the relative underperformance in these periods, including with respect to market factors and investment decisions that affected the Fund’s performance and of recent outperformance.

The Board also received and considered information regarding the 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 in comparison to the median ratios of funds in class-specific 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 the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

34 Wells Fargo Ultra Short-Term Municipal Income Fund Other information (unaudited)

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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 Ultra Short-Term Municipal Income Fund 35

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

244412 08-16 A258/AR258 6-16

Annual Report

June 30, 2016

Wells Fargo Wisconsin Tax-Free Fund

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Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	20
Report of independent registered public accounting firm	24
Other information	25
List of abbreviations	31

The views expressed and any forward-looking statements are as of June 30, 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 Wisconsin Tax-Free Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Funds

In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Wisconsin Tax-Free Fund for the 12-month period that ended June 30, 2016. The U.S. Federal Reserve (Fed) began normalizing monetary policy, raising the federal funds rate to between 0.25% and 0.50% in December 2015. Short-term municipal bond yields rose, but yields on longer-term bonds declined. In fact, yields on municipal bonds that matured in 10 years or more experienced yield declines of more than 100 basis points (100 basis points equals 1.00%) during the reporting period. The Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, returned 7.65% during the 12-month reporting period.

Monetary policy was accommodative.

The Fed continued an easy monetary policy in order to support the economy and the financial system. However, it raised the federal funds target rate in December because it believed the U.S. economy was strong enough to begin normalizing monetary policy. The 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 maintained an aggressive monetary program aimed at combating deflation.

Despite accommodative central-bank policies that helped keep interest rates at ultra-low levels, there were periods of volatility. Early in 2016, weakness in certain emerging markets economies and commodities hurt riskier assets and a vote in June 2016 by the U.K. to exit the European Union set off another round of global uncertainty. Municipal bonds benefited because they are perceived as a safe-haven asset. In addition, investor demand for yield helped lower-rated debt outperform. The Barclays High Yield Municipal Bond Index² returned 12.09% during the 12-month period that ended June 30, 2016.

Strong demand, modest supply, and solid credit fundamentals supported municipals.

Market technicals remained favorable. According to the Investment Company Institute, more than $33 billion was allocated to municipal mutual funds during the first half of 2016, which was more than double the inflows during all of 2015. Further, inflows during the second quarter of 2016 were the largest in nearly seven years. In contrast, less new supply helped make 2015 the fifth calendar year of negative net supply and supply in the first half of 2016 was about 4% less than the same period last year.

Municipal credit quality remained on an uptrend despite a number of high-profile negative credit situations. Idiosyncratic credit risks remain, however. With regard to Puerto Rico, the U.S. enacted legislation that prohibits bondholder lawsuits temporarily and instills a fiscal oversight board for Puerto Rico; Puerto Rico then declared a moratorium on paying its general obligation (GO) bonds and defaulted on $911 million in payments due (most of which were GOs) on July 1, 2016. The state of Illinois approved a six-month stopgap budget, a temporary but meaningful

¹  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

²  The Barclays High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prerefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

Letter to shareholders (unaudited) Wells Fargo Wisconsin Tax-Free Fund 3

step. Under this stopgap budget for the state, the city of Chicago receives authority to raise property taxes for teacher pensions and low-income school districts would receive greater state funding. City of Chicago and school district debt rallied on the news.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large trades are more difficult to execute. However, fixed-income markets appear to have functioned 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.

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

4 Wells Fargo Wisconsin Tax-Free Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income exempt from federal income tax and Wisconsin individual income tax.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Lyle J. Fitterer, CFA,^® CPA

Thomas Stoeckmann

Average annual total returns (%) as of June 30, 2016¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (WWTFX)	3-31-2008		0.70		3.02		3.74		5.44		3.97		4.22		0.90		0.70
Class C (WWTCX)	12-26-2002		3.66		3.19		3.42		4.66		3.19		3.42		1.65		1.45
Barclays Municipal Bond Index4	–		–		–		–		7.65		5.33		5.13		–		–
Barclays Wisconsin Municipal Bond Index5	–		–		–		–		6.75		4.83		5.14		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed Wisconsin and Puerto Rico municipal securities risk, high-yield securities, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Wisconsin Tax-Free Fund 5

Growth of $10,000 investment as of June 30, 2016⁶

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares (except during those periods in which expenses of Class A shares would have been higher than those of the former Investor Class shares, no such adjustment is reflected). If these expenses had not been included, returns would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

³  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

⁴  The Barclays Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

⁵  The Barclays Wisconsin Municipal Bond Index is the Wisconsin component of the Barclays Municipal Bond Index. You cannot invest directly in an index.

⁶  The chart compares the performance of Class A shares for the most recent ten years with the Barclays Municipal Bond Index and the Barclays Wisconsin Municipal 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 credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

⁸  Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo Wisconsin Tax-Free Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmarks, the Barclays Municipal Bond Index and the Barclays Wisconsin Municipal Bond Index, for the 12-month period that ended June 30, 2016.

n Supply of Wisconsin double-tax-exempt (both national and state exempt) municipal debt was limited during the first half of the period. Therefore, in order to extend duration and also invest some cash, the Fund purchased longer-term national and short-term Virgin Island and Guam municipal issues. (Because the U.S. Virgin Islands and Guam are U.S. territories, their debt is tax exempt.)

n While we opportunistically extended the Fund’s duration when opportunities presented themselves, the Fund remained short duration and underweight the long end of the curve during the entire period. This detracted from performance as rates moved lower and the curve flattened.

n As bond yields moved lower, investors continued their search for income. This caused lower-quality bonds to outperform. The Fund’s overweight to these types of bonds (as well as below-investment-grade) had the largest positive impact on relative performance.

Ultralow yields continued throughout the period.

With the U.S. Federal Reserve (Fed) poised to normalize its interest-rate policy, shorter-term maturities between one and five years appeared less attractive at the beginning of the reporting period due to a potential backup in short-term yields. However, subdued inflation expectations, due in part to low oil prices, combined with a fragile European economy and softening Chinese economy, implied that longer maturities would outperform. The Fed tightened in December 2015 but signaled that the pace of further increases would be gradual.

While the Fed was likely to take its time raising rates, U.S. inflation started to trend higher, unemployment remained below 5%, and economic growth was expected to remain at or above 2%. We initially purchased some longer-dated, national municipal debt to extend the Fund’s duration but later allowed duration to drift lower as the market rallied and U.S. inflation measures started to move higher. Our below-benchmark duration exposure hurt relative performance during the period as U.S. rates moved lower in sympathy with declining global interest rates.

Credit quality as of June 30, 2016⁷

Credit-quality allocation helped results.

The Fund’s overweight to A-rated and BBB-rated debt and its out-of-benchmark holdings in high-yield and nonrated debt contributed to results because lower-rated bonds outperformed higher-quality bonds by a wide margin during the period. Our exposure to some lower-quality Wisconsin health care issuers and a local charter school were some of the Fund’s best-performing issues. Other issues that performed well included longer-dated, double-tax-exempt Wisconsin issues and also several of the national issues, such as Chicago Sales Tax, New Jersey Transportation Trust Fund Authority, and Illinois Sports Facilities Authority. While the national municipal bonds

do not generate state-exempt income, they produced some of the Fund’s highest total returns. We sold some of them as we found opportunities to reinvest in double-tax-exempt issues. For example, we bought Wisconsin Center District bonds, which were issued to help finance the new arena for the Milwaukee Bucks and were backed by an appropriation from the state of Wisconsin.

With continued uncertainty surrounding Puerto Rico, our exposure has drifted lower as the shorter-term bonds we own mature. The Fund continues to focus its exposure within Puerto Rico on shorter-term, insured bonds or dedicated revenue bonds. However, we increased our exposure to the Virgin Islands and Guam bonds. Our focus within these two territories is similar to the approach we took in Puerto Rico, buying shorter-insured bonds or bonds backed by dedicated revenue streams.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Wisconsin Tax-Free Fund 7

Wisconsin’s financial position is expected to remain stable.

Following the significant budgetary improvement resulting in operating surpluses over the prior three years, Wisconsin posted an anticipated deficit during the most recent fiscal year as stagnant revenues were overcome by increasing expenses. Despite the deficit, the budget stabilization fund remained steady and is expected to do so moving forward. Additionally, the remainder of the current biennium budget is expected to be balanced as economic growth drives improved revenue collections. When faced with softening revenues, the state legislature has shown the willingness to make the difficult spending cuts necessary to maintain fiscal balance and stabilize the state’s financial position. Debt levels have been stable, and the pension system continues to be fully funded. From an economic perspective, the state’s economy appears to be performing in line with national averages, economic growth has lagged the rest of the nation as the recovery in manufacturing jobs has been weak, and population growth is roughly half of the national average.

Rates may be lower for longer, making credit allocation and issue selection even more important.

Near the end of the reporting period, the U.K. voted to withdraw from the European Union, prompting considerable uncertainty about future political situations, financial markets, and economic growth. U.S. Treasuries and municipal bonds rallied significantly on the news, and both 10-year and 30-year municipal yields reached record-low levels. Although we think rates may stay lower for longer, we recognize that an improvement in overseas economies, outflows in mutual funds, or a more hawkish tone from the Fed could lead to a spike in rates. However, if the U.S. economy does

Effective maturity distribution as of June 30, 2016⁸

weaken materially, this could be the catalyst for us to increase our duration exposure and reduce our credit exposure. In this record-low interest-rate environment, security selection is even more important as breakeven yields (the sell-off that a bond can endure before the total return drops to zero) decrease.

Please see footnotes on page 5.

8 Wells Fargo Wisconsin Tax-Free Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,027.65	$	3.53		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.38	$	3.52		0.70	%
Class C
Actual	$	1,000.00	$	1,023.83	$	7.30		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.65	$	7.27		1.45	%

¹ Expenses paid is equal to the annualized expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).

Portfolio of investments—June 30, 2016 Wells Fargo Wisconsin Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.85%
Guam: 10.35%
Guam Government Business Privilege Series A (Tax Revenue)		5.25	%		1-1-2036	$	2,000,000	$	2,301,100
Guam Government Business Privilege Series B1 (Tax Revenue)		5.00			1-1-2042		500,000		564,440
Guam Government Business Privilege Series D (Tax Revenue)		5.00			11-15-2021		2,250,000		2,636,775
Guam Government Business Privilege Series D (Tax Revenue)		5.00			11-15-2022		1,500,000		1,783,005
Guam Government Hotel Occupancy Tax Series A (Tax Revenue)		5.00			11-1-2016		500,000		507,205
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.38			12-1-2024		1,000,000		1,138,970
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.50			12-1-2019		1,000,000		1,139,650
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.00			7-1-2019		650,000		720,603
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.00			7-1-2021		300,000		348,225
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.25			7-1-2025		740,000		894,823
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2016		100,000		101,160
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2019		100,000		112,615
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2020		100,000		115,012
Guam International Airport Authority Series B (Airport Revenue)		5.00			10-1-2016		150,000		151,559
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2021		2,500,000		2,877,525
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2019		1,575,000		1,777,718
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2020		500,000		580,565
									17,750,950
Illinois: 4.88%
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		1,000,000		773,970
Chicago IL Refunding Bond (Tax Revenue)		5.00			1-1-2034		2,000,000		2,200,440
Chicago IL Series A (GO Revenue)		5.00			1-1-2027		1,700,000		1,720,145
Chicago IL Waterworks Second Lien (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2020		500,000		539,495
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		250,000		288,530
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		3,500,000		2,841,265
									8,363,845
Michigan: 0.13%
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2021		215,000		216,933
New Jersey: 1.22%
New Jersey EDA Series EE (Miscellaneous Revenue)		5.00			9-1-2023		935,000		1,026,415
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		2,000,000		1,067,980
									2,094,395
Puerto Rico: 9.57%
Puerto Rico Commonwealth Public Improvement Refunding Bond Series A (GO Revenue, AGC Insured)		5.00			7-1-2016		1,535,000		1,535,169
Puerto Rico Commonwealth Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016		985,000		985,099

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo Wisconsin Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico (continued)
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50	%		7-1-2016	$	1,000,000	$	1,000,100
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		1,000,000		1,035,570
Puerto Rico Electric Power Authority Refunding Bond Series UU (Utilities Revenue, AGM Insured)		5.00			7-1-2016		2,255,000		2,255,180
Puerto Rico HFA Subordinated Capital Fund Modernization Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2018		600,000		654,408
Puerto Rico Highway & Transportation Authority Refunding Bond Series L (Transportation Revenue, AGC Insured)		5.25			7-1-2019		1,000,000		1,042,510
Puerto Rico Highway & Transportation Authority Refunding Bond Series L (Transportation Revenue, BHAC/FGIC Insured)		5.25			7-1-2021		300,000		347,127
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2018		1,375,000		1,429,973
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2019		1,500,000		1,588,185
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital De La Concepcion Series A (Health Revenue)		6.50			11-15-2020		25,000		25,489
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Polytechnic University of Puerto Rico Series A (Education Revenue, ACA Insured)		5.25			8-1-2016		1,060,000		1,062,237
Puerto Rico Municipal Finance Authority Series C (Tobacco Revenue, BHAC/FGIC Insured)		5.50			7-1-2020		3,000,000		3,414,390
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)		5.50			8-1-2031		250,000		28,750
									16,404,187
Virgin Islands: 9.19%
Virgin Islands PFA (Miscellaneous Revenue) 144A		3.00			9-1-2016		965,000		968,513
Virgin Islands PFA (Miscellaneous Revenue) 144A		5.00			9-1-2020		750,000		854,378
Virgin Islands PFA Gross Receipts Series C (Tax Revenue)		5.00			10-1-2017		2,240,000		2,341,181
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, National Insured)		4.00			10-1-2020		450,000		454,001
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, AGM Insured)		4.00			10-1-2022		3,000,000		3,202,500
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, National Insured)		5.00			10-1-2016		250,000		252,440
Virgin Islands PFA Matching Fund Loan Notes Senior Lien Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2025		2,000,000		2,255,380
Virgin Islands PFA Series A (Tax Revenue)		5.00			10-1-2018		5,165,000		5,411,319
Virgin Islands PFA Unrefunded Balance Series A (Miscellaneous Revenue)		7.30			10-1-2018		10,000		10,794
									15,750,506
Wisconsin: 63.51%
Appleton WI RDA Fox Cities Performing Arts Center Project (Tax Revenue)		1.75			9-1-2016		415,000		415,365
Blue Mounds WI CDA Series A (Miscellaneous Revenue)		1.25			4-1-2017		50,000		50,167
Brookfield WI Community Development & Redevelopment Authority Series A (Miscellaneous Revenue)		1.15			6-1-2018		550,000		553,234
Brookfield WI Community Development & Redevelopment Authority Series A (Miscellaneous Revenue)		1.35			6-1-2019		750,000		758,348
Cudahy WI CDA Series A (Miscellaneous Revenue)		1.20			6-1-2017		170,000		170,716
Cudahy WI CDA Series A (Miscellaneous Revenue)		1.50			6-1-2018		200,000		201,176

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Wisconsin Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Cudahy WI CDA Series C (Miscellaneous Revenue)		0.70	%		6-1-2017	$	250,000	$	250,208
Cudahy WI CDA Series C (Miscellaneous Revenue)		0.90			6-1-2018		200,000		200,410
Cudahy WI CDA Series C (Miscellaneous Revenue)		1.05			6-1-2019		125,000		125,469
Glendale WI CDA Bayshore Public Parking (Miscellaneous Revenue)		1.50			10-1-2019		300,000		305,271
Glendale WI CDA Series A (Miscellaneous Revenue)		3.50			10-1-2017		1,635,000		1,686,372
Glendale WI CDA Series A (Miscellaneous Revenue)		3.50			10-1-2018		1,700,000		1,792,276
Green Bay WI Housing Authority University Village Housing Incorporated (Education Revenue)		4.38			4-1-2022		200,000		215,144
Green Bay WI Housing Authority University Village Housing Incorporated (Education Revenue)		5.00			4-1-2030		1,410,000		1,567,018
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		5.50			12-1-2023		250,000		279,090
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		5.65			12-1-2026		100,000		111,996
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		6.00			12-1-2029		260,000		293,376
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		6.15			12-1-2032		420,000		475,427
Greenfield WI CDA Layton Terrace Project (Housing Revenue) ±		4.75			9-1-2033		500,000		500,910
Jackson WI CDA Kettle Moraine Lutheran High School Federation Incorporated (Education Revenue, FHLB LOC) ø		0.44			12-31-2036		1,210,000		1,210,000
Kaukauna WI RDA (Miscellaneous Revenue)		3.75			6-1-2032		850,000		929,059
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2019		50,000		54,237
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2020		100,000		110,620
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2021		310,000		347,529
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2022		235,000		266,626
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2023		200,000		229,522
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2025		425,000		500,833
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2028		425,000		489,060
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2035		900,000		983,961
Little Chute WI CDA (Miscellaneous Revenue)		4.25			3-1-2017		200,000		200,418
Little Chute WI CDA (Miscellaneous Revenue)		4.35			3-1-2018		200,000		200,428
Madison WI CDA Monticello Apartments (Housing Revenue, BMO Harris Bank NA LOC) ø		0.44			4-1-2023		730,000		730,000
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2023		150,000		169,553
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2025		475,000		536,266
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2039		5,000,000		5,651,350
Milwaukee WI RDA Neighborhood Schools Series A (Miscellaneous Revenue, Ambac Insured)		3.85			8-1-2020		200,000		206,118
Milwaukee WI RDA Neighborhood Schools Series A (Miscellaneous Revenue, Ambac Insured)		3.90			8-1-2021		405,000		416,850
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue, Ambac Insured)		4.00			8-1-2023		300,000		308,124
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2019		915,000		1,024,260
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2020		3,100,000		3,564,070
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2021		3,330,000		3,914,382
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.25			8-1-2043		2,100,000		2,422,560
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		3.15			8-1-2017		50,000		51,245
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		4.60			8-1-2024		870,000		947,543
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		5.00			8-1-2030		3,000,000		3,330,360
Milwaukee WI RDA University of Wisconsin Kenilworth Project Series 2005 (Education Revenue, U.S. Bank NA LOC) ø		0.44			9-1-2040		4,000,000		4,000,000
Milwaukee WI RDA Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.25			12-1-2038		2,155,000		2,155,000
Milwaukee WI Series B6 (GO Revenue)		2.00			4-1-2021		175,000		182,565

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo Wisconsin Tax-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Milwaukee WI Series B6 (GO Revenue)		3.00	%		4-1-2024	$	570,000	$	635,556
Milwaukee WI Series B6 (GO Revenue)		5.00			4-1-2022		350,000		423,066
Milwaukee WI Series B6 (GO Revenue)		5.00			4-1-2023		580,000		717,356
Milwaukee WI Series B6 (GO Revenue)		5.00			4-1-2025		550,000		706,173
Monroe WI RDA Monroe Clinic Incorporated (Health Revenue)		5.50			2-15-2029		1,000,000		1,101,880
Monroe WI RDA Monroe Clinic Incorporated (Health Revenue)		5.88			2-15-2039		1,570,000		1,733,704
North Fond Du Lac WI CDA (Miscellaneous Revenue)		0.85			12-1-2016		150,000		149,979
North Fond Du Lac WI CDA (Miscellaneous Revenue)		1.30			12-1-2017		50,000		50,165
North Fond Du Lac WI CDA (Miscellaneous Revenue)		1.70			12-1-2018		50,000		50,430
Oostburg WI CDA Series A (Miscellaneous Revenue)		1.75			5-1-2018		50,000		50,541
Pittsville WI CDA Series A (Miscellaneous Revenue)		1.65			6-1-2017		100,000		100,278
Platteville WI RDA University of Wisconsin Platteville Real Estate (Education Revenue)		5.00			7-1-2022		1,000,000		1,116,100
Prairie du Chien WI RDA Series B (Miscellaneous Revenue)		1.65			9-1-2020		200,000		205,366
Racine WI Elderly Housing Authority Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.25			10-1-2042		1,420,000		1,420,000
Residual Interest Bonds Floater Trust Various States Series 2WE (Miscellaneous Revenue, Barclays Bank plc LOC) 144Aø		0.58			5-1-2018		3,950,000		3,950,000
Saukville Village WI CDA Calibre Incorporated Project (Industrial Development Revenue, BMO Harris Bank NA LOC) ø		0.64			9-1-2029		605,000		605,000
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2017		1,765,000		1,885,055
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2018		380,000		424,107
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2019		100,000		115,570
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2021		2,000,000		2,462,760
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2023		1,600,000		2,034,928
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2026		2,435,000		3,107,279
Sturgeon Bay WI Waterfront RDA Series A (Miscellaneous Revenue)		4.35			10-1-2018		150,000		151,161
Sun Prairie WI CDA Tax Incremental #6 & 7 (Miscellaneous Revenue)		3.80			2-1-2018		300,000		304,503
Sun Prairie WI CDA Tax Incremental #6 & 7 (Miscellaneous Revenue)		4.00			2-1-2019		220,000		223,276
Sun Prairie WI CDA Tax Incremental #6 & 7 (Miscellaneous Revenue)		4.50			2-1-2022		250,000		253,773
Verona WI CDA Public Improvements (Miscellaneous Revenue)		5.38			12-1-2022		830,000		832,216
Warrens WI CDA Economic Improvements (Miscellaneous Revenue)		5.10			11-1-2020		70,000		54,445
Warrens WI CDA Interim Workout Extension (Tax Revenue)		3.70			11-1-2029		214,392		109,441
Warrens WI CDA Public Improvements (Miscellaneous Revenue)		5.00			11-1-2016		70,000		68,943
Waukesha WI Housing Authority Preservation Corporation Project (Housing Revenue, Johnson Bank LOC) ø		1.25			12-1-2042		1,950,000		1,950,000
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		2.30			12-1-2016		135,000		135,930
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		2.65			12-1-2017		335,000		343,891
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.00			12-1-2023		150,000		160,682
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.20			12-1-2024		150,000		161,420
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.25			12-1-2025		250,000		268,795

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Wisconsin Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Wauwatosa WI Housing Authority Hart Park Square Project (Health Revenue, BMO Harris Bank NA LOC) ø		0.64	%		3-1-2034	$	260,000	$	260,000
Weston WI CDA Series A (Miscellaneous Revenue)		5.25			10-1-2020		720,000		722,225
Wisconsin Center District CAB (Tax Revenue, National Insured) ¤		0.00			12-15-2019		175,000		166,087
Wisconsin Center District CAB (Tax Revenue, AGM Insured) ¤		0.00			12-15-2030		295,000		210,739
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2018		65,000		71,980
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2019		2,000,000		2,292,960
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2023		2,150,000		2,603,779
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2027		1,005,000		1,248,019
Wisconsin Center District Junior Dedicated Bond Series A (Tax Revenue)		5.00			12-15-2022		730,000		848,297
Wisconsin Center District Junior Dedicated Bond Series A (Tax Revenue)		5.00			12-15-2030		2,100,000		2,437,155
Wisconsin Center District Milwaukee Arena Project (Tax Revenue)		4.00			12-15-2032		1,100,000		1,252,977
Wisconsin Center District Milwaukee Arena Project (Tax Revenue)		4.00			12-15-2033		920,000		1,046,196
Wisconsin Center District Milwaukee Arena Project (Tax Revenue)		4.00			12-15-2034		2,000,000		2,264,880
Wisconsin Dells CDA (Miscellaneous Revenue)		4.60			3-1-2025		175,000		175,385
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		3.00			12-1-2019		1,475,000		1,560,358
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		4.00			12-1-2035		1,000,000		1,089,140
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		5.00			12-1-2025		1,500,000		1,848,525
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		5.00			12-1-2026		1,740,000		2,130,038
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue, Ambac Insured)		5.50			2-15-2019		35,000		36,584
Wisconsin HEFA Rogers Memorial Hospital Incorporated Series B (Health Revenue)		5.00			7-1-2044		3,250,000		3,729,310
Wisconsin Housing & EDA (Housing Revenue, FHA Insured)		6.10			6-1-2021		60,000		64,639
Wisconsin Housing & EDA AMT Series A (Housing Revenue)		4.63			11-1-2037		25,000		25,027
Wisconsin Housing & EDA AMT Series A (Housing Revenue)		4.75			5-1-2037		265,000		265,318
Wisconsin Housing & EDA MFHR Series A (Industrial Development Revenue) ±		4.25			12-1-2035		1,960,000		1,964,841
Wisconsin Housing & EDA President House Project (Housing Revenue, Associated Trust Company NA LOC) ø		0.54			8-1-2046		1,725,000		1,725,000
Wisconsin Housing & EDA Series A (Housing Revenue)		0.55			12-1-2016		50,000		49,987
Wisconsin Housing & EDA Series A (Housing Revenue)		0.80			6-1-2017		50,000		50,050
Wisconsin Housing & EDA Series A (Housing Revenue)		0.90			12-1-2017		50,000		50,129
Wisconsin Housing & EDA Series A (Housing Revenue)		1.15			6-1-2018		55,000		55,342
Wisconsin Housing & EDA Series A (Housing Revenue)		1.25			12-1-2018		55,000		55,519
Wisconsin Housing & EDA Series A (Housing Revenue)		1.55			12-1-2019		55,000		56,008
Wisconsin Housing & EDA Series A (Housing Revenue)		1.95			12-1-2020		55,000		56,626
Wisconsin Housing & EDA Series A (Housing Revenue)		3.00			5-1-2022		100,000		106,907
Wisconsin Housing & EDA Series A (Housing Revenue)		3.00			11-1-2022		125,000		134,290
Wisconsin Housing & EDA Series A (Housing Revenue)		4.05			12-1-2049		800,000		859,344
Wisconsin Housing & EDA Series A (Housing Revenue)		5.75			11-1-2043		3,355,000		3,637,390
Wisconsin Oneida Tribe of Indians (Tax Revenue) 144A		5.50			2-1-2021		515,000		572,432
									108,871,764
Total Municipal Obligations (Cost $161,524,719)									169,452,580

Total investments in securities (Cost $161,524,719) *	98.85	%		169,452,580
Other assets and liabilities, net	1.15			1,976,043
Total net assets	100.00	%	$	171,428,623

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo Wisconsin Tax-Free Fund Portfolio of investments—June 30, 2016

¤ The security is issued in zero coupon form with no periodic interest payments.

(s) The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

± Variable rate investment. The rate shown is the rate in effect at period end.

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end.

* Cost for federal income tax purposes is $161,522,255 and unrealized gains (losses) consists of:

Gross unrealized gains	$	8,063,628
Gross unrealized losses		(133,303	)
Net unrealized gains	$	7,930,325

The accompanying notes are an integral part of these financial statements.

Statement of assets and liabilities—June 30, 2016 Wells Fargo Wisconsin Tax-Free Fund 15

Assets
Investments in unaffiliated securities, at value (cost: $161,524,719)	$	169,452,580
Cash		509,216
Receivable for investments sold		50,000
Receivable for Fund shares sold		182,706
Receivable for interest		1,686,491
Prepaid expenses and other assets		21,891
Total assets		171,902,884
Liabilities
Dividends payable		29,617
Payable for investments purchased		227,127
Payable for Fund shares redeemed		119,853
Management fee payable		17,776
Distribution fee payable		6,719
Administration fees payable		22,299
Shareholder servicing fees payable		34,842
Accrued expenses and other liabilities		16,028
Total liabilities		474,261
Total net assets	$	171,428,623
NET ASSETS CONSIST OF
Paid-in capital	$	163,355,975
Overdistributed net investment income		(10,499	)
Accumulated net realized gains on investments		155,286
Net unrealized gains on investments		7,927,861
Total net assets	$	171,428,623
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	160,479,907
Shares outstanding – Class A1		14,376,402
Net asset value per share – Class A		$11.16
Maximum offering price per share – Class A2		$11.69
Net assets – Class C	$	10,948,716
Shares outstanding – Class C1		980,871
Net asset value per share – Class C		$11.16

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/95.50 of net asset value. On investments of $50,000 or more, the offering price is reduced.

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo Wisconsin Tax-Free Fund Statement of operations—year ended June 30, 2016

Investment income
Interest	$	4,856,530
Expenses
Management fee		653,298
Administration fees
Class A		180,289
Class C		17,257
Investor Class		75,732	1
Shareholder servicing fees
Class A		281,156
Class C		26,963
Investor Class		99,647	1
Distribution fee
Class C		80,890
Custody and accounting fees		9,728
Professional fees		45,168
Registration fees		61,380
Shareholder report expenses		45,269
Trustees’ fees and expenses		27,819
Other fees and expenses		7,557
Total expenses		1,612,153
Less: Fee waivers and/or expense reimbursements		(376,034	)
Net expenses		1,236,119
Net investment income		3,620,411
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		196,798
Net change in unrealized gains (losses) on investments		4,774,120
Net realized and unrealized gains (losses) on investments		4,970,918
Net increase in net assets resulting from operations	$	8,591,329

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

The accompanying notes are an integral part of these financial statements.

Statement of changes in net assets Wells Fargo Wisconsin Tax-Free Fund 17

	Year ended June 30, 2016						Year ended June 30, 2015
Operations
Net investment income				$	3,620,411					$	3,238,956
Net realized gains on investments					196,798						1,138,977
Net change in unrealized gains (losses) on investments					4,774,120						(1,520,636	)
Net increase in net assets resulting from operations					8,591,329						2,857,297
Distributions to shareholders from
Net investment income
Class A					(2,546,869	)					(476,833	)
Class C					(164,380	)					(156,636	)
Investor Class					(909,162	)1					(2,605,288	)
Net realized gains
Class A					(46,148	)					(213,581	)
Class C					(3,206	)					(108,604	)
Investor Class					0	1					(1,168,572	)
Total distributions to shareholders					(3,669,765	)					(4,729,514	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		14,703,085			160,926,790			654,328			7,170,002
Class C		130,742			1,437,094			165,504			1,815,037
Investor Class		505,794	1		5,498,632	1		2,709,500			29,751,822
					167,862,516						38,736,861
Reinvestment of distributions
Class A		211,387			2,330,732			56,852			622,960
Class C		15,074			165,617			23,730			259,991
Investor Class		59,864	1		650,999	1		316,401			3,467,290
					3,147,348						4,350,241
Payment for shares redeemed
Class A		(2,737,029	)		(30,185,352	)		(321,379	)		(3,523,390	)
Class C		(173,105	)		(1,899,783	)		(132,955	)		(1,456,383	)
Investor Class		(12,142,203	)1		(132,592,719	)1		(1,737,420	)		(19,058,958	)
					(164,677,854	)					(24,038,731	)
Net increase in net assets resulting from capital share transactions					6,332,010						19,048,371
Total increase in net assets					11,253,574						17,176,154
Net assets
Beginning of period					160,175,049						142,998,895
End of period				$	171,428,623					$	160,175,049
Overdistributed net investment income				$	(10,499	)				$	(10,499	)

¹  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

The accompanying notes are an integral part of these financial statements.

18 Wells Fargo Wisconsin Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.83			$10.96			$10.86			$11.09			$10.68
Net investment income		0.25			0.24			0.33			0.27			0.34
Net realized and unrealized gains (losses) on investments		0.33			(0.02	)		0.18			(0.22	)		0.42
Total from investment operations		0.58			0.22			0.51			0.05			0.76
Distributions to shareholders from
Net investment income		(0.25	)		(0.24	)		(0.33	)		(0.27	)		(0.34	)
Net realized gains		(0.00	)1		(0.11	)		(0.08	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.25	)		(0.35	)		(0.41	)		(0.28	)		(0.35	)
Net asset value, end of period		$11.16			$10.83			$10.96			$10.86			$11.09
Total return2		5.44	%		2.07	%		4.80	%		0.46	%		7.19	%
Ratios to average net assets (annualized)
Gross expenses		0.94	%		0.90	%		0.92	%		0.90	%		0.92	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		2.26	%		2.22	%		3.02	%		2.44	%		3.06	%
Supplemental data
Portfolio turnover rate		16	%		28	%		25	%		31	%		14	%
Net assets, end of period (000s omitted)		$160,480			$23,824			$19,825			$25,641			$20,844

¹  Amount is less than $0.005 per share.

²  Total return calculations do not include any sales charges.

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Wisconsin Tax-Free Fund 19

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.83			$10.96			$10.86			$11.09			$10.68
Net investment income		0.17			0.16			0.25			0.19			0.26
Net realized and unrealized gains (losses) on investments		0.33			(0.02	)		0.18			(0.22	)		0.42
Total from investment operations		0.50			0.14			0.43			(0.03	)		0.68
Distributions to shareholders from
Net investment income		(0.17	)		(0.16	)		(0.25	)		(0.19	)		(0.26	)
Net realized gains		(0.00	)1		(0.11	)		(0.08	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.17	)		(0.27	)		(0.33	)		(0.20	)		(0.27	)
Net asset value, end of period		$11.16			$10.83			$10.96			$10.86			$11.09
Total return2		4.66	%		1.31	%		4.02	%		(0.29	)%		6.40	%
Ratios to average net assets (annualized)
Gross expenses		1.68	%		1.65	%		1.67	%		1.65	%		1.67	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		1.52	%		1.47	%		2.28	%		1.69	%		2.32	%
Supplemental data
Portfolio turnover rate		16	%		28	%		25	%		31	%		14	%
Net assets, end of period (000s omitted)		$10,949			$10,923			$10,431			$12,094			$11,393

¹  Amount is less than $0.005 per share.

²  Total return calculations do not include any sales charges.

The accompanying notes are an integral part of these financial statements.

20 Wells Fargo Wisconsin Tax-Free Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Wisconsin Tax-Free Fund (the “Fund”) which is a non-diversified series of the Trust.

Effective at the close of business on October 23, 2015, Investor Class shares became Class A shares in a tax-free conversion. Shareholders of Investor Class received Class A shares at a value equal to the value of their Investor Class shares immediately prior to the conversion. Investor Class shares are no longer offered by the Fund.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although a Fund 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.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the manager and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income

Notes to financial statements Wells Fargo Wisconsin Tax-Free Fund 21

may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	169,452,580	$	0	$	169,452,580

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

22 Wells Fargo Wisconsin Tax-Free Fund Notes to financial statements

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:

	Class-level administration fee
Class A, Class C		0.16	%
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.70% for Class A shares and 1.45% for Class C shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $2,810 from the sale of Class A shares and $779 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Investor Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $36,734,371 and $22,891,727, respectively.

Notes to financial statements Wells Fargo Wisconsin Tax-Free Fund 23

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30
	2016		2015
Ordinary income	$	140	$	896,413
Tax-exempt income		3,620,411		3,238,756
Long-term capital gain		49,214		594,345

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed tax-exempt income	Unrealized gains
$152,828	$19,112	$7,930,325

8. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

24 Wells Fargo Wisconsin Tax-Free Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Wisconsin Tax-Free Fund (formerly known as Wells Fargo Advantage Wisconsin Tax-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Wisconsin Tax-Free Fund as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

Other information (unaudited) Wells Fargo Wisconsin Tax-Free Fund 25

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $49,214 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2016.

For the fiscal year ended June 30, 2016, $140 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2016.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

26 Wells Fargo Wisconsin Tax-Free Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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 Wisconsin Tax-Free Fund 27

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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.

28 Wells Fargo Wisconsin Tax-Free Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Wisconsin Tax-Free Fund (the “Fund”): (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 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.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board

Other information (unaudited) Wells Fargo Wisconsin Tax-Free Fund 29

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 the Fund (Class A) was higher than the average performance of the Universe for all periods under review except the five-year period under review. The Board also noted that the performance of the Fund was lower than its benchmark, the Barclays Municipal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, 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 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 the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total 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 fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

30 Wells Fargo Wisconsin Tax-Free Fund Other information (unaudited)

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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 Wisconsin Tax-Free Fund 31

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

244413 08-16 A259/AR259 6-16

Annual Report

June 30, 2016

Wells Fargo
Alternative Strategies Fund

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Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	33
Statement of operations	34
Statement of changes in net assets	35
Financial highlights	36
Notes to financial statements	40
Report of independent registered public accounting firm	54
Other information	55
List of abbreviations	61

The views expressed and any forward-looking statements are as of June 30, 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 Alternative Strategies Fund 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 Alternative Strategies Fund for the 12-month period that ended June 30, 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 ended, voters in the U.K. approved a referendum to leave the European Union, injecting new uncertainty into the markets and sending stock prices and bond yields significantly lower. Equity markets soon recovered to varying degrees, but bond prices remained elevated and yields lower as investors sought lower-volatility assets due to short-term fears.

Shifting investor sentiment reflected changing economic and business data.

Early in the period, oil prices declined after a spring 2015 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 drop 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—during August 2015 before recovering somewhat. The index retested its August lows in late September 2015 before recovering most of its year-to-date losses from October through December 2015. As anticipated, the U.S. Federal Reserve (Fed) increased the federal funds rate in December and suggested that 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 3.99% 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.

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 Alternative Strategies Fund 3

For the 12-month reporting period, the MSCI ACWI ex USA Index (Net) and MSCI EM Index (Net) recorded returns of -10.24% and -12.06%, 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. Data released in January 2016 indicated that U.S. corporate profits fell in the fourth quarter of 2015, the second consecutive quarter of decline. 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, particularly international bonds, benefited during the period, with the Barclays Global Aggregate ex U.S. Dollar Bond Index⁴ gaining 11.24% and the Barclays U.S. Aggregate Bond Index⁵ gaining 6.00%.

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

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.

4 Wells Fargo Alternative Strategies Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadvisers

The Rock Creep Group, LP

Chilton Investment Company, LLC

Ellington Global Asset Management LLC

Mellon Capital Management Corporation

Passport Capital, LLC

Pine River Capital Management L.P.

River Canyon Fund Management LLC

Sirios Capital Management, L.P.

Wellington Management Company LLP

Portfolio managers

Joseph Bishop

John F. Brennan, Jr.

John Burbank

Richard L. Chilton, Jr.

Vassilis Dagioglu

Robert Kinderman

Sudhir Krisnamurthi

Kenneth LaPlace

Soon Pho

Kent M. Stahl, CFA^®

Gregg R. Thomas, CFA^®

Ronald van der Wouden

Brian Zied

Aaron Zimmerman

Average annual total returns (%) as of June 30, 2016

		Including sales charge						Excluding sales charge					Expense ratios1 (%)
	Inception date	1 year			Since inception			1 year			Since inception		Gross		Net2
Class A (WALTX)	4-30-2014		(9.23	)		(1.18	)		(3.65	)		1.56		3.39		2.88
Class C (WACTX)	4-30-2014		(5.46	)		0.78			(4.46	)		0.78		4.14		3.63
Administrator Class (WADTX)	4-30-2014		–			–			(3.55	)		1.70		3.31		2.73
Institutional Class (WAITX)	4-30-2014		–			–			(3.36	)*		1.84		3.06		2.63
Barclays U.S. Aggregate Bond Index3	–		–			–			6.00			4.17		–		–
Credit Suisse Liquid Alternatives Beta Index4	–		–			–			(0.66	)		1.33		–		–

* 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, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wellsfargofunds.com.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

The Fund does not invest directly in hedge funds but pursues similar strategies to those typically used by hedge funds. The Fund invests using alternative investment strategies such as equity hedged, event driven, global macro, and relative value, which are speculative and entail a high degree of risk. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Borrowing money to purchase securities or cover short positions magnifies losses and incurs expenses. Short selling is generally considered speculative, has the potential for unlimited loss, and may involve leverage. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. The Fund is exposed to high-yield securities risk, mortgage- and asset-backed securities risk, convertible securities risk, loan risk, regulatory risk, and smaller-company securities risk. Consult a Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Alternative Strategies Fund 5

Growth of $10,000 investment as of June 30, 2016⁵

¹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.12% in acquired fund fees and expenses and 0.63% in dividend and interest expenses on securities sold short. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

²  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 2.22% for Class A, 2.97% for Class C, 2.07% for Administrator Class, and 1.97% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, prime broker fees, dividend and interest expenses on securities sold short, and extraordinary expenses are excluded from the expense cap. Acquired fund fees and expenses incurred by investments made by The Rock Creek Group, LP, a subadviser of the Fund, are included in the expense cap. Without this cap, the Fund’s returns would have been lower.

³  The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, 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.

⁴  The Credit Suisse Liquid Alternatives Beta Index reflects the returns of a dynamic basket of liquid, investable market factors selected and weighted in accordance with an algorithm that aims to approximate the aggregate returns of the universe of hedge fund managers, as represented by the Credit Suisse Hedge Fund Index. You cannot invest directly in an index.

⁵  The chart compares the performance of Class A shares since inception with the Barclays U.S. Aggregate Bond Index and Credit Suisse Liquid Alternatives Beta Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁶  The Morgan Stanley Capital International (MSCI) World Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 23 developed markets country indexes: 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. 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.

⁷  The MSCI EAFE (Europe, Australasia, Far East) Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Index 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 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 shows the percentage of Fund holdings within a particular sector that was held long (securities owned by the Fund) or sold short (sale of borrowed securities). Gross exposure is the absolute value of the long positions and short positions combined. Net exposure is the percentage of long positions minus the percentage of positions sold short.

¹¹  Strategy allocation is calculated based on the market value of total investments. Cash shown is the sweep cash position of the Fund, and excludes any cash or cash equivalents that may be pledged as collateral for other investments of the Fund. Strategy allocation is subject to change and may have changed since the date specified.

¹²  The ten largest long and short position holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

6 Wells Fargo Alternative Strategies Fund Performance highlights (unaudited)

MANAGERS’ DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays U.S. Aggregate Bond Index, for the 12-month period that ended June 30, 2016. The Fund also underperformed the Credit Suisse Liquid Alternatives Beta Index. (The Fund invests assets across a number of alternative investment strategies in an effort to achieve relatively low sensitivity and low volatility relative to major equity markets. It thus benchmarks itself against the Barclays U.S. Aggregate Bond Index, despite investing in a number of equity strategies.)

n A general flight away from volatility benefited the Fund’s fixed-income benchmark but led to losses from the Fund’s two most directional strategies: equity hedged and event driven.

n The trend-following component within the global macro sleeve, which tends to be least correlated with market direction, was the single largest contributor to Fund performance.

n The Fund’s underlying subadvisors decreased the market sensitivity of their portfolios in line with our market outlook, but strategy allocations were mostly unchanged.

Markets were quite volatile over the past 12 months, driven by worries over the Chinese economy; lower commodity prices; negative interest rates; and, most recently, the fallout from the Brexit referendum vote by which voters in the U.K. decided to exit the European Union. The Morgan Stanley Capital International (MSCI) World Index (Net)⁶ declined 2.8% for the period, with considerable variance across regions. The MSCI Europe, Asia, Far East (EAFE) Index⁷ was down more than 10% and emerging markets, as measured by the MSCI Emerging Markets (EM) Index (Net),⁸ were down more than 12%, versus a 4% gain for the S&P 500 Index.⁹ Commodity markets were volatile, with oil ending lower while the Brexit paved the way for significant weakening in the British pound and strengthened the U.S. dollar and Japanese yen. Meanwhile, fixed-income yields on most sovereign and higher-quality corporate bonds continued to trend lower as investors gravitated toward bonds with relatively low credit risk.

The equity hedged sleeve was the largest detractor from performance for the Fund. The U.S. equity market saw a massive rotation to value as evidenced by strong outperformance of the utilities and telecommunication services sectors, which were underweighted in the Fund. Subadvisors with a growth bias were more negatively affected by this rotation of capital. In particular, financials sector investments saw sharp drawdowns as a result of increasing uncertainty about future interest rates in the U.S., Europe, and Japan. Global equity hedged strategies with a long bias toward Europe and Japan were weighed down by China-related fears throughout the period and by volatility following the Brexit vote. These losses were partially offset by short exposure to energy- and materials-related stocks, as well as emerging markets stocks. Additionally, long positions in U.S. consumer stocks outperformed on the back of lower oil prices and signs of an improving labor market.

Sector allocation as of June 30, 201610
	Gross exposure (%)		Net exposure (%)
Consumer Discretionary		20		26
Consumer Staples		11		16
Energy		6		1
Financials		7		9
Health Care		10		14
Industrials		7		8
Information Technology		12		10
Materials		5		5
Telecommunication Services		2		3
Utilities		1		2
Other		19		6
		100		100

We continue to have a bias toward equity hedged and relative value strategies that rely on fundamental-based research to identify high- and low-quality companies to go long and sell short. Unfortunately, with ongoing central bank intervention and episodic deleveraging, the past 12-month period did not witness any meaningful outperformance by strong secular growth stocks over those with poorer earnings quality. This market environment affected both the equity hedged and relative value sleeves. However, we believe that the Fund’s equity hedged and relative value sleeves now incorporate significant embedded value and are well-positioned to benefit as prices converge with fundamentals.

We maintained a relatively low weight to the event-driven strategy throughout the period based on a conviction that special situation value equities and credit securities would underperform in an environment of slow and uncertain economic growth. While the event driven

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Alternative Strategies Fund 7

strategy did detract from performance, its impact was contained by the lower allocation. Non-agency residential mortgage-backed securities (RMBS) positioning was profitable in the second half of the period but the strategy was unable to regain the ground lost earlier in the year on corporate credit and deep-value equities. We believe the risk/reward trade-off in corporate credit remains poor, and we have shifted more of the Fund’s exposure to structured credit opportunities. Non-agency RMBS credit fundamentals have improved since 2008 as homeowners have accumulated more equity in their homes. Non-agency RMBS are typically low-duration securities with low sensitivity to interest rates, making them more attractive at this time relative to other fixed-income sectors.

Performance within the global macro sleeve was mixed, with commodity trading advisor (CTA) allocations generating strong results that were offset by losses from valuation-driven models. Losses came predominantly from equity positions, notably long the Japanese TOPIX and German DAX markets and short the S&P 500 Index. The Japanese equity market is currently trading at a discount relative to other developed markets partly because of fatigue Abenomics. Prime Minister Shinzo Abe’s policies intended to spark economic growth and partly because of a strengthening yen that has fueled doubts about the country’s ability to overcome its deflation troubles. Europe was showing signs of economic improvement despite China’s economic slowdown but now has had to contend with uncertainty and fallout of the Brexit vote. On the other hand, CTA models benefited from strong trends that persisted through the year. Early in the year, short positioning in energy-related commodities was profitable but the subsequent upturn in oil prices reversed some of those gains. Contributing to performance were long gold and short emerging markets currency positions. Long yen and short British pound and euro positions were additive at the end of the year.

Strategy allocation as of June 30, 2016¹¹

The Fund’s subadvisors have maintained conviction in most of their core positions but have tempered conviction by increasing portfolio hedges. As a result, the Fund’s gross exposure has been fairly steady while its net exposure has gradually trended down over the past year. This is consistent with our macro perspective that it is prudent to take less directional exposure because of the headwinds to global growth and unusually high valuations in the U.S. At present, the S&P 500 Index is trading at about a 25 times price/earnings multiple, which is a higher multiple than it has been for 90% of the time in the past eight decades. Easy monetary policy appears to be nearing its limits to inflate the prices of risk assets. We believe the Fund is well-positioned to resume generating strong risk-adjusted returns as the effects of central bank stimulus moderate and markets start reflecting corporate fundamentals.

Ten largest long position holdings (%) as of June 30, 201612
AQR Managed Futures Strategy Fund Class I	8.11
Allergan plc	1.55
The Sherwin-Williams Company	1.17
Facebook Incorporated Class A	1.13
Constellation Brands Incorporated Class A	1.04
Halliburton Company	1.01
Carrington Mortgage Loan Trust Series 06-NC4 Class A3, 0.61%, 10-25-2036	0.90
Credit-Based Asset Servicing and Securitization Series 07-CB4 Class A1B, 0.63%, 4-25-2037	0.87
Charter Communications Incorporated Class A	0.83
Microsoft Corporation	0.83

Ten largest short position holdings (%) as of June 30, 201612
SPDR S&P 500 ETF	(7.03)
Consumer Staples Select Sector SPDR Fund ETF	(0.75)
Occidental Petroleum Corporation	(0.69)
Electronic Arts Incorporated	(0.66)
Schlumberger Limited	(0.61)
International Business Machines Corporation	(0.58)
Infosys Limited ADR	(0.57)
Corning Incorporated	(0.55)
Equinix Incorporated	(0.50)
National Oilwell Varco Incorporated	(0.47)

Please see footnotes on page 5.

8 Wells Fargo Alternative Strategies Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,025.00	$	14.78		2.94	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,010.26	$	14.68		2.94	%
Class C
Actual	$	1,000.00	$	1,026.70	$	18.55		3.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,006.56	$	18.37		3.68	%
Administrator Class
Actual	$	1,000.00	$	1,021.40	$	14.05		2.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,010.96	$	13.98		2.80	%
Institutional Class
Actual	$	1,000.00	$	1,020.40	$	13.46		2.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,011.54	$	13.40		2.68	%

¹ Expenses paid is equal to the annualized expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 9

Security name	Shares		Value
Common Stocks: 54.52%
Consumer Discretionary: 13.31%
Auto Components: 0.83%
Delphi Automotive plc		14,674	$	918,592
Magna International Incorporated		28,098		985,397
Nissin Kogyo Company Limited		1,830		23,439
Tachi-S Company Limited		1,390		20,439
Tokai Rika Company Limited		1,085		16,027
Toyo Tire & Rubber Company Limited		4,268		46,527
Toyota Industries Corporation		985		39,163
TS Tech Company Limited		1,140		27,934
				2,077,518
Automobiles: 0.08%
Chongqing Changchun Automobile Class B		38,880		54,462
Fuji Heavy Industries Limited		1,150		39,529
Isuzu Motors Limited		2,790		34,364
Mazda Motor Corporation		1,165		15,417
Peugeot SA †		970		11,627
Renault SA		410		30,954
Suzuki Motor Corporation		665		18,007
				204,360
Diversified Consumer Services: 0.11%
Kroton Educacional SA		14,048		59,475
New Oriental Education & Technology Group Incorporated		1,867		78,190
Service Corporation International		5,452		147,422
				285,087
Hotels, Restaurants & Leisure: 2.59%
Caesars Acquisition Company Class A †		1,887		21,172
Caesars Entertainment Corporation †		3,485		26,800
Chipotle Mexican Grill Incorporated †		317		127,675
ClubCorp Holdings Incorporated		5,171		67,223
Compass Group plc		3,209		61,052
Domino’s Pizza Incorporated		7,108		933,849
Fuji Kyuko Company Limited		1,370		19,156
Genting Singapore plc		40,010		21,704
H.I.S. Company Limited		795		25,675
Hilton Worldwide Holdings Incorporated		49,171		1,107,823
Las Vegas Sands Corporation		2,928		127,339
Mandarin Oriental International Limited		22,600		30,623
McDonald’s Corporation (b)		4,425		532,505
MGM Resorts International †(b)		32,607		737,896
Norwegian Cruise Line Holdings Limited †		371		14,781
OPAP SA		8,484		59,129
Panera Bread Company Class A †		324		68,669
Royal Caribbean Cruises Limited		8,029		539,147
Sands China Limited		17,280		58,474

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
Hotels, Restaurants & Leisure (continued)
Sonic Corporation		45,747	$	1,237,456
Starbucks Corporation (b)		11,198		639,630
TUI AG		3,912		44,437
				6,502,215
Household Durables: 0.07%
Alpine Electronics Incorporated		1,715		16,807
Cairn Homes plc †		110,464		117,684
Panahome Corporation		2,320		18,365
Zojirushi Corporation		617		11,724
				164,580
Internet & Catalog Retail: 1.95%
Amazon.com Incorporated †		2,009		1,437,681
Expedia Incorporated		309		32,847
Home Retail Group plc		13,580		27,810
Netflix Incorporated †		5,669		518,600
Qliro Group AB †		12,748		14,013
Rakuten Incorporated		2,300		24,736
Start Today Company Limited		359		18,976
The Priceline Group Incorporated †		1,599		1,996,208
Wayfair Incorporated Class A †		21,393		834,327
				4,905,198
Leisure Products: 0.03%
Bandai Namco Holdings Incorporated		1,680		43,355
Sankyo Company Limited		495		18,559
Yamaha Corporation		419		11,293
				73,207
Media: 4.18%
Charter Communications Incorporated Class A †		9,150		2,092,056
Clear Channel Outdoor Holdings Incorporated Class A		4,337		26,976
Comcast Corporation Class A (b)		17,691		1,153,277
Daiichikosho Company Limited		450		18,865
Discovery Communications Incorporated Class A †(b)		11,498		290,095
DISH Network Corporation Class A †(b)		32,281		1,691,525
JC Decaux SA		26,221		884,089
Liberty Latin America and Caribbean Group Class A †		3,006		96,974
M6 Metropole Television SA		1,721		28,613
Nippon Television Network Corporation		2,645		43,670
SES SA		6,175		132,192
Sky plc		12,219		138,850
The Walt Disney Company		10,789		1,055,380
Time Warner Incorporated		26,490		1,948,075
TV Asahi Corporation		2,005		32,647
Twenty-First Century Fox Incorporated Class A (b)		20,524		555,174
Viacom Incorporated Class B		4,748		196,900

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 11

Security name	Shares		Value
Media (continued)
Wolters Kluwer NV		2,526	$	102,281
				10,487,639
Multiline Retail: 0.27%
Dollar Tree Incorporated †(b)		6,916		651,764
Seria Company Limited		196		16,222
				667,986
Specialty Retail: 2.65%
Adastria Company Limited		627		24,846
Advance Auto Parts Incorporated		418		67,561
Aoyama Trading Company Limited		865		31,898
AutoNation Incorporated †		33,200		1,559,736
AutoZone Incorporated †		1,956		1,552,751
Gulliver International Company Limited		1,541		12,649
Hornbach Holding AG & Company KGaA		776		52,619
Jumbo SA †		1,107		14,563
Lowe’s Companies Incorporated		448		35,468
Luk Fook Holdings International Limited		3,795		8,389
O’Reilly Automotive Incorporated †		1,767		479,034
Pal Company Limited		850		20,040
Shimamura Company Limited		243		36,155
The Home Depot Incorporated		14,167		1,808,984
The TJX Companies Incorporated (b)		10,620		820,183
Vitamin Shoppe Incorporated †		3,392		103,693
Yamada Denki Company Limited		3,472		18,328
				6,646,897
Textiles, Apparel & Luxury Goods: 0.55%
Brunello Cucinelli SpA		1,640		29,411
Crocs Incorporated †		5,635		63,563
Global Brands Group Holding Limited †		227,495		20,015
Nike Incorporated Class B		20,462		1,129,503
Pandora AS		169		23,018
Ralph Lauren Corporation		314		28,141
Samsonite International SA		14,000		38,764
VF Corporation		894		54,972
				1,387,387
Consumer Staples: 7.62%
Beverages: 4.13%
Anheuser-Busch InBev NV ADR		6,106		804,038
Asahi Breweries Limited		1,005		32,496
Brown-Forman Corporation Class B		8,510		848,958
C&C Group plc		14,884		58,376
Coca-Cola HBC AG		1,816		36,746
Constellation Brands Incorporated Class A (b)		15,741		2,603,561
Diageo plc		3,120		87,159
Heineken Malaysia Bhd		7,950		29,827

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
Beverages (continued)
Heineken NV		10,123	$	928,500
Molson Coors Brewing Company Class B (b)		19,505		1,972,540
Monster Beverage Corporation †		10,981		1,764,757
PepsiCo Incorporated		621		65,789
Sapporo Holdings Limited		1,030		29,775
The Coca-Cola Company		23,304		1,056,371
Vina Concha y Toro SA		11,707		18,484
Yantai Changyu Pioneer Wine Company Limited Class B		14,405		43,638
				10,381,015
Food & Staples Retailing: 1.35%
Ain Holdings Incorporated		254		19,702
Alimentation Couche-Tard Incorporated Class B		491		21,085
Belc Company Limited		199		8,296
Casey’s General Stores Incorporated		7,810		1,027,093
Cocokara Fine Incorporated		371		19,228
Costco Wholesale Corporation (b)		12,549		1,970,695
Create SD Holdings Company Limited		716		20,311
J Sainsbury plc		18,818		58,622
Metro AG		1,981		60,928
Sundrug Company Limited		755		70,891
Tsuruha Holdings Incorporated		388		46,982
Walgreens Boots Alliance Incorporated		816		67,948
				3,391,781
Food Products: 1.55%
Ariake Japan Company Limited		443		26,374
Chocoladefabriken Lindt & Sprungli AG		22		1,572,194
ConAgra Foods Incorporated		5,555		262,868
Greencore Group plc		26,517		109,127
Kikkoman Corporation		578		21,328
Meiji Holdings Company Limited		808		83,026
Mondelez International Incorporated Class A (b)		15,912		724,155
Morinaga & Company Limited		2,402		15,145
Nestle SA		1,044		80,887
Nippon Flour Mills Company Limited		1,595		12,464
Nisshin Seifun Group Incorporated		611		9,822
Post Holdings Incorporated †		1,492		123,373
Suedzucker AG		1,786		39,338
The J.M. Smucker Company		950		144,790
The Kraft Heinz Company (b)		7,273		643,515
Yamazaki Baking Company Limited		545		15,215
				3,883,621
Household Products: 0.16%
Colgate-Palmolive Company		2,553		186,880
Lion Corporation		1,993		32,883
Reckitt Benckiser Group plc		1,270		127,345
The Procter & Gamble Company		522		44,198
				391,306

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 13

Security name	Shares		Value
Personal Products: 0.15%
Beiersdorf AG		287	$	27,172
Coty Incorporated		954		24,794
Hypermarcas SA		3,700		26,664
Kao Corporation		232		13,512
Kose Corporation		129		10,931
LG Household & Health Care Limited H Shares		54		52,734
Natura Cosmeticos SA		2,790		22,148
Oriflame Holding AG †		2,123		54,143
Pola Orbis Holdings Incorporated		181		17,034
The Estee Lauder Companies Incorporated Class A		541		49,242
Unilever NV ADR		1,863		87,449
				385,823
Tobacco: 0.28%
British American Tobacco plc		10,478		679,279
Japan Tobacco Incorporated		535		21,562
				700,841
Energy: 4.31%
Energy Equipment & Services: 1.17%
Halliburton Company (b)		56,144		2,542,762
Helmerich & Payne Incorporated		535		35,915
Hilong Holding Limited		105,180		11,519
Schlumberger Limited (b)		4,380		346,371
Trican Well Service Limited †		4,095		7,829
				2,944,396
Oil, Gas & Consumable Fuels: 3.14%
Anadarko Petroleum Corporation		19,501		1,038,428
Apache Corporation		1,014		56,449
BP plc		32,718		191,515
Cabot Oil & Gas Corporation		1,165		29,987
Canadian Natural Resources Limited		1,624		50,068
Cobalt International Energy Incorporated †		3,128		4,192
Concho Resources Incorporated †(b)		5,748		685,564
Diamondback Energy Incorporated †		365		33,292
Eni SpA		7,584		122,157
EOG Resources Incorporated		697		58,144
EQT Corporation		5,954		461,018
Exxon Mobil Corporation (b)		3,315		310,748
Hess Corporation		6,100		366,610
Imperial Oil Limited		2,020		63,917
Japan Petroleum Exploration Company		1,220		24,592
Kinder Morgan Incorporated		7,761		145,286
Marathon Oil Corporation		2,085		31,296
Newfield Exploration Company †		148		6,539
Noble Energy Incorporated (b)		47,767		1,713,402
Petroleo Brasileiro SA ADR †		5,122		36,674
Pioneer Natural Resources Company (b)		5,007		757,109

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
PrairieSky Royalty Limited		33	$	626
QEP Resources Incorporated		259		4,566
Royal Dutch Shell plc Class B		3,934		108,691
Southwestern Energy Company †		2,310		29,060
Statoil ASA		1,921		33,192
Total SA		3,081		147,752
TransCanada Corporation		270		12,217
TransCanada Corporation-Subscription Receipt		500		22,571
Valero Energy Corporation (b)		25,937		1,322,787
WPX Energy Incorporated †		973		9,059
				7,877,508
Financials: 4.63%
Banks: 1.50%
Alpha Bank AE †		13,393		25,095
Banca Popolare dell’Emilia Romagna Scarl		11,296		41,472
Banco Macro SA		440		32,657
Banco Popular Espanol SA		35,603		46,268
Bank of America Corporation (b)		77,460		1,027,894
Bank of Ireland †		103,901		21,419
Bank of Nova Scotia		765		37,493
Bank of the Ozarks Incorporated (b)		13,731		515,187
BNP Paribas SA		4,057		177,922
CaixaBank SA		17,600		38,790
Citigroup Incorporated		2,887		122,380
Citizens Financial Group Incorporated		1,300		25,974
Eurobank Ergasias SA †		48,324		30,590
HDFC Bank Limited ADR		729		48,369
HSBC Holdings plc		22,160		137,293
ICICI Bank Limited ADR		7,013		50,353
ING Groep NV		6,294		65,117
Itau Unibanco Holding SA ADR		4,372		41,272
Japan Post Bank Company Limited		1,535		18,050
JPMorgan Chase & Company		599		37,222
M&T Bank Corporation		209		24,710
Mitsubishi UFJ Financial Group Incorporated		17,212		77,159
PNC Financial Services Group Incorporated		1,894		154,153
Sberbank of Russia (a)		20,340		42,288
Signature Bank †		1,668		208,367
Societe Generale SA		2,353		73,616
Standard Chartered plc		9,532		72,319
Sumitomo Mitsui Financial Group Incorporated		1,320		38,115
The San-in Godo Bank Limited		2,870		18,739
UniCredit SpA		15,167		33,356
Western Alliance Bancorp †(b)		14,778		482,502
				3,766,141
Capital Markets: 1.02%
Affiliated Managers Group Incorporated †(b)		3,927		552,804

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 15

Security name	Shares		Value
Capital Markets (continued)
Aizawa Securities Company Limited		2,550	$	12,916
ANIMA Holding SpA 144A		9,477		44,680
EFG International AG		2,019		7,650
Ichiyoshi Securities Company Limited		4,625		33,348
Invesco Limited		12,125		309,673
Julius Baer Group Limited		2,163		87,057
Nihon M&A Center Incorporated		337		21,888
OM Asset Management plc		11,755		156,929
Raymond James Financial Incorporated		1,108		54,624
SEI Investments Company		22,954		1,104,317
UBS Group AG		13,574		176,131
				2,562,017
Consumer Finance: 0.14%
Ally Financial Incorporated †		12,337		210,593
Navient Corporation		7,135		85,263
Santander Consumer USA Holdings Incorporated †		5,460		56,402
				352,258
Diversified Financial Services: 0.57%
Amundi SA		1,795		74,583
Hellenic Exchanges SA Holding		7,274		34,882
Intercontinental Exchange Incorporated		744		190,434
MarketAxess Holdings Incorporated		371		53,943
Markit Limited †		2,562		83,521
Moody’s Corporation		8,555		801,689
MSCI Incorporated		874		67,403
Rescap Liquidating Trust †		5,781		52,029
S&P Global Incorporated		741		79,480
				1,437,964
Insurance: 0.60%
Ageas NV		2,268		78,834
Ambac Financial Group Incorporated †(b)		3,037		49,989
American International Group Incorporated		3,018		159,622
Assicurazioni Generali SpA		4,015		47,346
Chubb Limited		662		86,530
Coface SA		4,873		32,965
Delta Lloyd NV		6,739		23,679
Fairfax Financial Holdings Limited		94		50,627
MetLife Incorporated		1,900		75,677
MS&AD Insurance Group Holdings Incorporated		2,315		59,982
PICC Property & Casualty Company Limited H Shares		17,400		27,434
Principal Financial Group Incorporated		1,050		43,166
Saga plc		26,014		66,912
Sony Financial Holdings Incorporated		1,860		21,031
Storebrand ASA †		13,643		51,754
T&D Holdings Incorporated		6,084		51,665
Tokio Marine Holdings Incorporated		1,370		45,609

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
Insurance (continued)
Torchmark Corporation		468	$	28,932
Unum Group		1,079		34,301
W.R. Berkley Corporation		6,906		413,808
Zurich Insurance Group AG		244		60,361
				1,510,224
Real Estate Management & Development: 0.22%
BR Malls Participacoes SA		16,250		65,004
Corporacion Inmobiliaria Vesta SAB de CV		17,280		26,795
Daito Trust Construction Company Limited		245		39,779
Deutsche Wohnen AG		1,536		52,298
Grand City Properties SA		7,959		163,778
LEG Immobilien AG		550		51,463
Leopalace21 Corporation		3,450		24,233
Relo Holdings Incorporated		414		73,275
Sumitomo Real Estate Sales Company Limited		2,865		56,325
				552,950
REITs: 0.57%
American Tower Corporation		1,240		140,876
Columbia Property Trust Incorporated		1,003		21,464
Equinix Incorporated		307		119,033
GLP J-REIT		16		20,196
Grivalia Properties Real Estate Investment Company		9,739		76,400
Hibernia REIT plc		72,651		108,037
Host Hotels & Resorts Incorporated		1,784		28,919
Intu Properties plc		20,493		79,672
Irish Residential Properties REIT plc		73,818		90,931
Kennedy Wilson Europe Real Estate plc		5,779		74,207
LaSalle Logiport REIT		41		41,733
National Retail Properties Incorporated		6,172		319,216
National Storage REIT †		7,037		8,292
National Storage REIT NPV		21,648		27,003
Public Storage Incorporated (b)		1,034		264,280
				1,420,259
Thrifts & Mortgage Finance: 0.01%
Genworth Mortgage Insurance		9,054		18,764
Health Care: 6.57%
Biotechnology: 0.68%
Alder Biopharmaceuticals Incorporated †		812		20,276
Biogen Incorporated †		1,885		455,830
Cepheid Incorporated †		760		23,370
Gilead Sciences Incorporated (b)		12,456		1,039,079
PeptiDream Incorporated †		195		11,663
Regeneron Pharmaceuticals Incorporated †		172		60,068
Tesaro Incorporated †		463		38,915

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 17

Security name	Shares		Value
Biotechnology (continued)
Vertex Pharmaceuticals Incorporated †		751	$	64,601
				1,713,802
Health Care Equipment & Supplies: 1.91%
Align Technology Incorporated †		354		28,515
Asahi Intecc Company Limited		401		19,595
Becton Dickinson & Company (b)		8,616		1,461,187
BioMerieux		195		26,422
Boston Scientific Corporation †		1,388		32,438
Danaher Corporation		4,434		447,834
Dexcom Incorporated †		558		44,266
Edwards Lifesciences Corporation †		544		54,253
Hologic Incorporated †		1,294		44,772
IDEXX Laboratories Incorporated †		10,346		960,730
Intuitive Surgical Incorporated †		51		33,732
Medtronic plc		953		82,692
Paramount Bed Holdings Company Limited		508		25,786
St. Jude Medical Incorporated		18,810		1,467,180
Sysmex Corporation		402		27,681
Terumo Corporation		682		29,105
				4,786,188
Health Care Providers & Services: 0.68%
Acadia Healthcare Company Incorporated †(b)		7,532		417,272
Brookdale Senior Living Incorporated †		731		11,287
Cardinal Health Incorporated		804		62,720
Envision Healthcare Holdings Incorporated †		1,038		26,334
HCA Holdings Incorporated †(b)		4,184		322,210
McKesson Corporation		256		47,782
UnitedHealth Group Incorporated		582		82,178
Universal Health Services Incorporated Class B (b)		5,441		729,638
				1,699,421
Health Care Technology: 0.01%
Agfa-Gevaert NV †		7,174		23,289
M3 Incorporated		443		15,461
				38,750
Life Sciences Tools & Services: 0.39%
Thermo Fisher Scientific Incorporated		6,589		973,591
Pharmaceuticals: 2.90%
Allergan plc †		16,805		3,883,468
Almirall SA		2,675		40,219
Astellas Pharma Incorporated		2,220		34,815
AstraZeneca plc		4,837		289,173
AstraZeneca plc ADR		3,103		93,680
Bristol-Myers Squibb Company (b)		13,465		990,350
Eisai Company Limited		1,054		58,851

The accompanying notes are an integral part of these financial statements.

18 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
Pharmaceuticals (continued)
H. Lundbeck AS †		1,643	$	61,592
Johnson & Johnson		697		84,546
Merck & Company Incorporated		2,333		134,404
Mylan NV †		2,164		93,571
Novartis AG		618		51,009
Ono Pharmaceutical Company Limited		4,410		192,104
Otsuka Holdings Company Limited		294		13,548
Pfizer Incorporated (b)		30,414		1,070,877
Roche Holding AG		156		41,165
Shionogi & Company Limited		1,336		73,034
Sosei Group Corporation †		117		21,790
Teva Pharmaceutical Industries Limited ADR		710		35,663
UCB SA		432		32,438
				7,296,297
Industrials: 4.40%
Aerospace & Defense: 1.49%
Airbus Group NV		1,078		61,791
Cobham plc		60,921		128,350
Honeywell International Incorporated		341		39,665
Leonardo-Finmeccanica SpA †		4,955		50,108	��
Lockheed Martin Corporation (b)		2,732		678,000
Northrop Grumman Corporation		2,051		455,896
Qinetiq Group plc		16,510		49,010
Raytheon Company (b)		15,068		2,048,495
Thales SA		596		49,494
TransDigm Group Incorporated †		256		67,505
Ultra Electronics Holdings plc		2,018		46,957
United Technologies Corporation		620		63,581
				3,738,852
Air Freight & Logistics: 0.75%
FedEx Corporation (b)		11,193		1,698,874
PostNL †		21,606		88,137
United Parcel Service Incorporated Class B		880		94,794
				1,881,805
Airlines: 0.14%
Deutsche Lufthansa AG		5,831		68,558
Japan Airlines Company Limited		895		28,794
Southwest Airlines Company		6,209		243,455
				340,807
Building Products: 0.16%
Compagnie de Saint-Gobain SA		6,595		249,987
Fortune Brands Home & Security Incorporated		708		41,043
Owens Corning Incorporated		416		21,432

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 19

Security name	Shares		Value
Building Products (continued)
Sanwa Holdings Corporation		9,880	$	89,809
				402,271
Commercial Services & Supplies: 0.08%
Aeon Delight Company Limited		1,018		27,729
Atento SA †		2,850		25,394
Nippon Kanzai Company Limited		2,080		32,995
Spotless Group Holdings Limited		64,587		54,661
Waste Connections Incorporated		929		66,934
				207,713
Construction & Engineering: 0.14%
Balfour Beatty plc †		25,774		74,083
Ellaktor SA †		4,350		6,449
GEK Terna Holding Real Estate Construction SA †		6,300		12,432
Hazama Ando Corporation		6,790		37,715
JGC Corporation		1,740		24,909
Kinden Corporation		3,510		37,995
Kyudenko Corporation		939		27,794
Nippo Corporation		1,790		30,449
Obayashi Corporation		1,968		20,953
Taisei Corporation		1,710		14,051
Vinci SA		1,025		72,331
				359,161
Electrical Equipment: 0.11%
Denyo Company Limited		1,780		18,420
Eaton Corporation plc		377		22,518
Generac Holdings Incorporated †		689		24,087
Legrand SA		1,701		87,076
Nissin Electric Company Limited		1,521		22,513
Schneider Electric SE		841		49,064
Ushio Incorporated		2,055		24,143
Zumtobel Group AG		2,872		34,959
				282,780
Industrial Conglomerates: 0.58%
Beijing Enterprises Holdings Limited		6,945		39,372
General Electric Company (b)		39,576		1,245,852
Koninklijke Philips NV		1,655		41,104
Rheinmetall AG		2,207		131,270
				1,457,598
Machinery: 0.14%
Atlas Copco AB Class A		1,333		34,621
Hino Motors Limited		1,925		19,173
IDEX Corporation		301		24,712
IHI Corporation		11,100		29,920
Mitsubishi Heavy Industries Limited		9,440		37,960

The accompanying notes are an integral part of these financial statements.

20 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
Machinery (continued)
Miura Company Limited		1,116	$	24,946
Namura Shipbuilding Company Limited		1,540		8,519
Sandvik AB		2,555		25,580
Sulzer AG		185		16,054
Takuma Company Limited		3,275		29,060
The Middleby Corporation †		767		88,397
Toshiba Machine Company Limited		6,680		20,206
				359,148
Marine: 0.04%
DS Norden AS †		1,999		27,912
Irish Continental Group plc		6,996		32,608
Kuehne & Nagel International AG		224		31,385
				91,905
Professional Services: 0.09%
Adecco SA		858		43,276
Experian Group Limited		3,724		70,652
Hays plc		32,233		42,116
Recruit Holdings Company Limited		1,065		38,909
TechnoPro Holdings Incorporated		826		25,720
				220,673
Road & Rail: 0.58%
Avis Budget Group Incorporated †(b)		5,135		165,501
Canadian National Railway Company		1,425		84,147
CSX Corporation		1,688		44,023
DSV AS		1,406		59,120
Genesee & Wyoming Incorporated Class A †		810		47,750
Hitachi Transport System Limited		770		12,667
Old Dominion Freight Line Incorporated †		4,742		285,990
Union Pacific Corporation		8,526		743,894
				1,443,092
Trading Companies & Distributors: 0.07%
Itochu Corporation		3,350		40,981
Kuroda Electric Company Limited		1,480		25,420
MonotaRO Company Limited		468		15,473
Rexel SA		4,297		54,024
SIG plc		28,253		42,406
				178,304
Transportation Infrastructure: 0.03%
Groupe Eurotunnel SE		5,453		57,598
Hamburger Hafen Und Logistik AG		1,376		20,597
				78,195

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 21

Security name	Shares		Value
Information Technology: 8.19%
Communications Equipment: 0.45%
ARRIS International plc †		1,400	$	29,344
Cisco Systems Incorporated		22,043		632,414
Motorola Solutions Incorporated		1,002		66,102
Palo Alto Networks Incorporated †		2,229		273,365
Radware Limited †		11,165		125,718
				1,126,943
Electronic Equipment, Instruments & Components: 0.16%
Amano Corporation		1,215		21,165
Flextronics International Limited †		23,366		275,719
Hitachi High Technologies Corporation		830		22,715
Hosiden Corporation		2,590		16,102
Largan Precision Company Limited		205		18,959
Nichicon Corporation		1,250		8,122
Spectris plc		782		19,035
WPG Holdings Company Limited		25,350		29,606
				411,423
Internet Software & Services: 3.74%
Alibaba Group Holding Limited ADR †		1,418		112,774
Alphabet Incorporated Class A †		431		303,221
Alphabet Incorporated Class C †(b)		2,560		1,771,776
Baidu Incorporated ADR †		797		131,625
ChinaCache International Holdings Limited ADR †		890		5,767
CoStar Group Incorporated †		413		90,307
Dena Company Limited		1,090		25,499
Dip Corporation		816		22,015
Envestnet Incorporated †		720		23,983
Facebook Incorporated Class A †(b)		24,880		2,843,286
LinkedIn Corporation Class A †		5,006		947,386
Naver Corporation		63		39,029
Rackspace Hosting Incorporated †		7,674		160,080
Tencent Holdings Limited H Shares		57,594		1,321,187
United Internet AG		1,137		47,264
Yahoo! Incorporated †		38,315		1,439,111
Yandex NV Class A †		5,253		114,768
				9,399,078
IT Services: 0.92%
Accenture plc Class A		901		102,074
Alliance Data Systems Corporation †		174		34,090
ALTEN SA		352		20,663
Automatic Data Processing Incorporated		702		64,493
Cerved Information Solutions SpA		10,694		84,251
Cognizant Technology Solutions Corporation Class A †(b)		14,545		832,556
CSRA Incorporated		5,826		136,503
Devoteam SA		269		12,836
Global Payments Incorporated		927		66,169

The accompanying notes are an integral part of these financial statements.

22 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
IT Services (continued)
MasterCard Incorporated Class A		7,851	$	691,359
OBIC Company Limited		601		33,083
Sopra Steria Group		442		45,558
Visa Incorporated Class A		2,449		181,642
				2,305,277
Semiconductors & Semiconductor Equipment: 0.31%
Applied Materials Incorporated		1,677		40,198
Globalwafers Company Limited		8,063		17,958
Kontron AG †		3,778		11,714
Lam Research Corporation		309		25,975
Silicon Motion Technology Corporation		383		18,307
STMicroelectronics NV		11,002		64,611
Synaptics Incorporated †		224		12,040
Taiwan Semiconductor Manufacturing Company Limited ADR		21,093		553,269
Tokyo Seimitsu Company Limited		1,130		26,314
				770,386
Software: 1.71%
Adobe Systems Incorporated †		727		69,639
Autodesk Incorporated †		597		32,322
Cadence Design Systems Incorporated †		2,710		65,853
CommVault Systems Incorporated †		3,696		159,630
Konami Holdings Corporation		347		13,238
Microsoft Corporation (b)		40,744		2,084,870
Nintendo Company Limited		333		47,852
Nippon System Development Company Limited		1,200		19,120
Oracle Corporation (b)		15,711		643,051
PTC Incorporated †		7,571		284,518
SS&C Technologies Holdings Incorporated		1,464		41,109
The Descartes Systems Group Incorporated †		1,490		28,498
Verint Systems Incorporated †(b)		10,850		359,461
VMware Incorporated Class A †(b)		5,696		325,925
Workday Incorporated Class A †		1,281		95,652
Xura Incorporated †		706		17,248
				4,287,986
Technology Hardware, Storage & Peripherals: 0.90%
Apple Incorporated		165		15,774
Canon Incorporated		765		21,841
Catcher Technology Company Limited		2,840		21,176
EMC Corporation		9,468		257,246
Hewlett Packard Enterprise Company		10,827		197,809
HP Incorporated (b)		42,233		530,024
NetApp Incorporated		21,916		538,914
Samsung Electronics Company Limited		93		115,818
Western Digital Corporation		11,650		550,579
				2,249,181

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 23

Security name	Shares		Value
Materials: 3.29%
Chemicals: 2.01%
Akzo Nobel NV		1,131	$	70,259
Axalta Coating Systems Limited †		6,373		169,076
Celanese Corporation Series A		660		43,197
CF Industries Holdings Incorporated		44,143		1,063,846
Platform Specialty Products Corporation †		5,088		45,181
Praxair Incorporated		692		77,774
Shin-Etsu Chemical Company Limited		1,280		74,993
The Sherwin-Williams Company		9,979		2,930,533
Tokyo Ohka Kogyo Company Limited		770		18,999
W.R. Grace & Company		7,475		547,245
				5,041,103
Construction Materials: 0.60%
BRAAS Monier Building Group SA		3,585		84,026
Buzzi Unicem SpA		6,728		117,902
Cemex Holdings Philippines Incorporated †144A		26,000		6,000
CRH plc		3,524		102,691
CRH plc – London Exchange		4,215		123,599
LafargeHolcim Limited		6,126		256,297
Martin Marietta Materials Incorporated		3,455		663,360
Sumitomo Osaka Cement Company Limited		8,200		35,186
Taiheiyo Cement Corporation		9,585		22,703
Vicat SA		681		38,350
Wienerberger AG		3,921		54,945
				1,505,059
Containers & Packaging: 0.12%
Berry Plastics Group Incorporated †(b)		6,660		258,741
Smurfit Kappa Group plc		2,869		63,171
				321,912
Metals & Mining: 0.56%
Anglo American plc		5,325		52,197
AngloGold Ashanti Limited ADR †		17,258		311,679
BHP Billiton Limited ADR		671		19,164
Constellium NV Class A †		1,920		9,005
Franco-Nevada Corporation		221		16,809
Franco-Nevada Corporation – Toronto Exchange		765		58,171
Freeport-McMoRan Incorporated		13,120		146,157
Goldcorp Incorporated		875		16,739
Lonmin plc †		3,775		9,687
Reliance Steel & Aluminum Company		601		46,217
Rio Tinto plc ADR		415		12,990
Salzgitter AG		1,488		39,343
Silver Wheaton Corporation		27,102		637,710
Yamato Kogyo Company Limited		1,265		28,714
				1,404,582

The accompanying notes are an integral part of these financial statements.

24 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares		Value
Telecommunication Services: 1.34%
Diversified Telecommunication Services: 0.84%
Cellnex Telecom SAU		11,678	$	183,258
Hellenic Telecommunications Organization SA		8,967		81,929
Nippon Telegraph & Telephone Corporation		2,091		98,057
Sunrise Communications Group AG 144A		4,363		278,961
Telecom Italia SpA †		26,776		21,991
Telefonica SA		5,393		51,200
Verizon Communications Incorporated (b)		24,950		1,393,208
				2,108,604
Wireless Telecommunication Services: 0.50%
China Mobile Limited		38,249		441,937
KDDI Corporation		1,330		40,445
NTT DOCOMO Incorporated		4,015		108,279
Orange Belgium SA †		1,896		43,829
SoftBank Group Corporation		10,841		613,081
				1,247,571
Utilities: 0.86%
Electric Utilities: 0.05%
Avangrid Incorporated		1,901		87,560
Power Assets Holdings Limited		4,945		45,467
				133,027
Gas Utilities: 0.04%
China Resources Gas Group Limited		4,521		13,749
ENN Energy Holdings Limited		5,500		27,241
Toho Gas Company Limited		1,316		10,768
UGI Corporation		769		34,797
				86,555
Independent Power & Renewable Electricity Producers: 0.01%
Huadian Fuxin Energy Corporation Limited H Shares		28,261		6,239
Huaneng Renewables Corporation Limited H Shares		79,370		26,565
				32,804
Multi-Utilities: 0.74%
E.ON SE		7,092		71,592
Engie SA		4,206		67,534
National Grid plc		4,400		64,703
RWE AG †		2,587		41,199
Sempra Energy (b)		13,703		1,562,416
Veolia Environnement SA		2,304		49,754
				1,857,198
Water Utilities: 0.02%
Guangdong Investment Limited		29,656		45,272
Total Common Stocks (Cost $128,979,212)				136,863,256

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 0.89%
Consumer Discretionary: 0.54%
Hotels, Restaurants & Leisure: 0.07%
Caesars Entertainment Operating Company Incorporated (s)		9.00	%		2-15-2020	$	85,000	$	78,413
Caesars Entertainment Operating Company Incorporated (s)		10.00			12-15-2018		35,000		13,913
Caesars Entertainment Operating Company Incorporated (s)		11.25			6-1-2017		50,000		46,125
Yum! Brands Incorporated		6.88			11-15-2037		40,000		39,600
									178,051
Multiline Retail: 0.04%
Neiman Marcus Group Limited 144A		8.00			10-15-2021		100,000		81,500
Neiman Marcus Group Limited (PIK at 9.50%) 144A¥		8.75			10-15-2021		15,000		11,400
									92,900
Specialty Retail: 0.43%
Guitar Center Incorporated 144A		6.50			4-15-2019		220,000		189,200
New Albertsons Incorporated (i)		6.52			4-10-2028		100,000		74,250
New Albertsons Incorporated (i)		6.57			2-23-2028		545,000		433,275
New Albertsons Incorporated		6.63			6-1-2028		20,000		17,800
New Albertsons Incorporated (i)		7.15			7-23-2027		15,000		11,700
New Albertsons Incorporated		7.45			8-1-2029		80,000		77,600
New Albertsons Incorporated		7.75			6-15-2026		25,000		24,375
New Albertsons Incorporated		8.00			5-1-2031		230,000		227,700
New Albertsons Incorporated		8.70			5-1-2030		25,000		25,000
									1,080,900
Financials: 0.21%
Insurance: 0.21%
Ambac Assurance Corporation 144A		5.10			6-7-2020		470,772		528,441
Industrials: 0.14%
Aerospace & Defense: 0.14%
DynCorp International Incorporated		11.88			11-30-2020		414,660		346,241
Total Corporate Bonds and Notes (Cost $2,266,542)									2,226,533
						Shares
Exchange-Traded Funds: 0.01%
TOPIX ETF							1,440		18,349
Total Exchange-Traded Funds (Cost $17,404)									18,349
						Principal
Foreign Corporate Bonds and Notes @: 0.03%
Consumer Discretionary: 0.03%
Textiles, Apparel & Luxury Goods: 0.03%
Boardriders SA (EUR)		9.50			12-15-2020		93,000		77,402
Total Foreign Corporate Bonds and Notes (Cost $96,639)									77,402

The accompanying notes are an integral part of these financial statements.

26 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Shares		Value
Investment Companies: 8.11%
Alternative Investment Funds: 8.11%
AQR Managed Futures Strategy Fund Class I							1,956,842	$	20,351,161
Total Investment Companies (Cost $20,580,408)									20,351,161
						Principal
Municipal Obligations: 0.28%
Puerto Rico: 0.28%
Puerto Rico Commonwealth Public Improvement Series A (GO Revenue) (i)		5.75	%		7-1-2041	$	5,000		3,263
Puerto Rico Commonwealth Refunding Bond Public Improvement Series A (GO Revenue) (i)		5.00			7-1-2041		10,000		6,489
Puerto Rico Commonwealth Refunding Bond Public Improvement Series A (GO Revenue) (i)		5.13			7-1-2037		95,000		61,644
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series A (GO Revenue) (i)		5.00			7-1-2033		80,000		51,934
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series A (GO Revenue) (i)		5.00			7-1-2034		10,000		6,491
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series A (Tax Revenue) (i)		5.13			7-1-2031		10,000		6,513
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series B (GO Revenue) (i)		5.25			7-1-2032		5,000		3,262
Puerto Rico Public Buildings Authority Government Facilities Series T (Miscellaneous Revenue) (i)		5.60			7-1-2030		650,000		364,163
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2036		110,000		74,953
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2037		90,000		61,320
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2038		65,000		44,288
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2039		15,000		10,221
Puerto Rico Sales Tax Financing Corporation Series C (Tax Revenue) (i)		6.00			8-1-2038		10,000		6,813
Total Municipal Obligations (Cost $808,855)									701,354
Non-Agency Mortgage-Backed Securities: 4.05%
American Home Mortgage Investment Corporation Series 2006-1 Class A2 ±		0.83			3-25-2046		2,918,173		1,164,627
Bear Stearns Alternative A-paper Trust Series 2006-3 Class 34A1 ±		3.06			5-25-2036		1,908,316		1,154,319
Carrington Mortgage Loan Trust Series 06-NC4 Class A3 ±		0.61			10-25-2036		3,250,000		2,260,180
Citi Held for Asset Issuance Series 16-MP1 Class A 144A		4.65			4-15-2025		1,150,749		1,164,178
Citi Held for Asset Issuance Series 16-MP1 Class B 144A		7.67			4-15-2025		915,000		962,737
Credit-Based Asset Servicing and Securitization LLC Series 07-CB4 Class A1B ±		0.63			4-25-2037		8,000,000		2,179,078
Merrill Lynch Alternative Note Series 2007-OAR2 Class A2 ±		0.66			4-25-2037		2,382,377		1,285,550
Total Non-Agency Mortgage-Backed Securities (Cost $9,966,099)									10,170,669
	Dividend yield					Shares
Preferred Stocks: 0.25%
Financials: 0.01%
Thrifts & Mortgage Finance: 0.01%
FHLMC †		0.00					700		3,115
FHLMC †		0.00					294		1,014
FHLMC †		0.00					493		1,696
FNMA †		0.00					850		3,808
FNMA †		0.00					559		2,119
									11,752

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 27

Security name	Dividend yield					Shares			Value
Health Care: 0.22%
Pharmaceuticals: 0.22%
Allergan plc ±		6.60	%				661		$	551,023
Industrials: 0.02%
Transportation Infrastructure: 0.02%
Uber Technologies Incorporated †(a)(i)		0.00					1,216			59,307
Total Preferred Stocks (Cost $696,982)										622,082
	Strike price			Expiration date		Contracts
Purchased Put Options: 0.21%
Hormel Foods Corporation (a)	$	38			9-16-2016		8,200			18,981
Hormel Foods Corporation (a)		40			9-16-2016		8,200			33,313
S&P 500 Index		1,850			12-16-2016		5,200			184,080
S&P 500 Index		1,875			3-17-2017		2,100			130,200
S&P 500 Index		1,875			6-16-2017		2,100			174,300
Total Purchased Put Options (Cost $827,818)										540,874
						Shares
Warrants: 0.12%
Financials: 0.11%
Capital Markets: 0.11%
Deutsche Bank AG †					9-27-2016		82,851			288,462
Industrials: 0.01%
Trading Companies & Distributors: 0.01%
Nexeo Solutions Incorporated †					6-9-2021		28,954			19,978
Total Warrants (Cost $313,001)										308,440
	Yield
Short-Term Investments: 21.80%
Investment Companies: 20.34%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.31	%				51,055,553			51,055,553
				Maturity date		Principal
U.S. Treasury Securities: 1.46%
Treasury Bill #(z)		0.23			9-15-2016	$	3,660,000			3,658,327
Total Short-Term Investments (Cost $54,713,733)										54,713,880
Securities Sold Short: (23.76%)
Common Stocks: (13.87%)
Consumer Discretionary: (2.14%)
Automobiles: (0.55%)
Ford Motor Company							(85,461	)		(1,074,245	)
Toyota Motor Corporation ADR							(3,408	)		(340,766	)
										(1,415,011	)

The accompanying notes are an integral part of these financial statements.

28 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares			Value
Hotels, Restaurants & Leisure: (0.10%)
Domino’s Pizza Incorporated		(74	)	$	(9,722	)
Panera Bread Company Class A †		(51	)		(10,809	)
Starbucks Corporation		(3,973	)		(226,938	)
Texas Roadhouse Incorporated		(188	)		(8,573	)
					(256,042	)
Household Durables: (0.12%)
Newell Brands Incorporated		(6,052	)		(293,946	)
Media: (0.41%)
Omnicom Group Incorporated		(3,911	)		(318,707	)
The Walt Disney Company		(7,184	)		(702,739	)
					(1,021,446	)
Multiline Retail: (0.42%)
Dollar Tree Incorporated †		(7,353	)		(692,946	)
Target Corporation		(5,356	)		(373,956	)
					(1,066,902	)
Specialty Retail: (0.02%)
Burlington Stores Incorporated †		(185	)		(12,341	)
Ross Stores Incorporated		(251	)		(14,229	)
The Michaels Companies Incorporated †		(125	)		(3,555	)
The TJX Companies Incorporated		(128	)		(9,885	)
					(40,010	)
Textiles, Apparel & Luxury Goods: (0.52%)
Compagnie Financière Richemont SA		(4,933	)		(288,752	)
The Swatch Group AG		(986	)		(286,928	)
Under Armour Incorporated Class A		(11,002	)		(441,510	)
VF Corporation		(4,710	)		(289,618	)
					(1,306,808	)
Consumer Staples: (0.55%)
Food & Staples Retailing: (0.54%)
Costco Wholesale Corporation		(3,317	)		(520,902	)
The Kroger Company		(12,454	)		(458,183	)
Wal-Mart Stores Incorporated		(2,413	)		(176,197	)
Woolworths Limited		(12,666	)		(199,218	)
					(1,354,500	)
Food Products: (0.01%)
Hormel Foods Corporation		(561	)		(20,533	)
Energy: (3.68%)
Energy Equipment & Services: (1.17%)
Helmerich & Payne Incorporated		(3,435	)		(230,592	)
National Oilwell Varco Incorporated		(34,962	)		(1,176,471	)

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 29

Security name	Shares			Value
Energy Equipment & Services (continued)
Schlumberger Limited		(19,411	)	$	(1,535,022	)
					(2,942,085	)
Oil, Gas & Consumable Fuels: (2.51%)
Apache Corporation		(17,981	)		(1,001,002	)
BP plc ADR		(18,327	)		(650,792	)
Chevron Corporation		(2,974	)		(311,764	)
Conocophillips		(24,797	)		(1,081,149	)
EOG Resources Incorporated		(10,732	)		(895,263	)
Hess Corporation		(6,886	)		(413,849	)
Murphy Oil Corporation		(6,208	)		(197,104	)
Occidental Petroleum Corporation		(22,994	)		(1,737,427	)
					(6,288,350	)
Financials: (1.09%)
Banks: (0.17%)
DBS Group Holdings Limited		(24,507	)		(288,960	)
HSBC Holdings plc ADR		(4,390	)		(137,451	)
					(426,411	)
Capital Markets: (0.13%)
Credit Suisse Group AG		(11,168	)		(118,966	)
Deutsche Bank AG †		(4,493	)		(62,107	)
Goldman Sachs Group Incorporated		(912	)		(135,505	)
					(316,578	)
REITs: (0.79%)
Crown Castle International Corporation		(7,399	)		(750,481	)
Equinix Incorporated		(3,212	)		(1,245,389	)
					(1,995,870	)
Health Care: (0.49%)
Health Care Equipment & Supplies: (0.26%)
Abbott Laboratories		(16,381	)		(643,937	)
Life Sciences Tools & Services: (0.23%)
Illumina Incorporated †		(4,206	)		(590,438	)
Industrials: (0.94%)
Aerospace & Defense: (0.11%)
The Boeing Company		(2,130	)		(276,623	)
Air Freight & Logistics: (0.03%)
United Parcel Service Incorporated Class B		(744	)		(80,144	)
Machinery: (0.53%)
Caterpillar Incorporated		(4,007	)		(303,771	)
Deere & Company		(770	)		(62,401	)

The accompanying notes are an integral part of these financial statements.

30 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

Security name	Shares			Value
Machinery (continued)
Parker-Hannifin Corporation		(8,932	)	$	(965,103	)
					(1,331,275	)
Professional Services: (0.15%)
Nielsen Holdings plc		(7,289	)		(378,809	)
Trading Companies & Distributors: (0.12%)
Fastenal Company		(3,158	)		(140,184	)
W.W. Grainger Incorporated		(637	)		(144,758	)
					(284,942	)
Information Technology: (3.78%)
Electronic Equipment, Instruments & Components: (0.58%)
Amphenol Corporation Class A		(1,317	)		(75,504	)
Corning Incorporated		(67,942	)		(1,391,452	)
					(1,466,956	)
Internet Software & Services: (0.33%)
Baidu Incorporated ADR †		(1,733	)		(286,205	)
Netease Incorporated ADR		(1,750	)		(338,135	)
Zillow Group Incorporated Class C †		(5,900	)		(214,052	)
					(838,392	)
IT Services: (1.36%)
Accenture plc Class A		(3,392	)		(384,280	)
Infosys Limited ADR		(80,752	)		(1,441,423	)
International Business Machines Corporation		(9,565	)		(1,451,776	)
Paypal Holdings Incorporated †		(3,663	)		(133,736	)
					(3,411,215	)
Semiconductors & Semiconductor Equipment: (0.11%)
Skyworks Solutions Incorporated		(4,355	)		(275,584	)
Software: (1.27%)
Activision Blizzard Incorporated		(7,245	)		(287,119	)
Adobe Systems Incorporated †		(3,434	)		(328,943	)
Electronic Arts Incorporated †		(21,852	)		(1,655,508	)
Mobileye NV †		(9,674	)		(446,358	)
Workday Incorporated Class A †		(6,272	)		(468,330	)
					(3,186,258	)
Technology Hardware, Storage & Peripherals: (0.13%)
Apple Incorporated		(3,312	)		(316,627	)
Materials: (1.17%)
Chemicals: (0.89%)
LyondellBasell Industries NV Class A		(9,205	)		(685,036	)
Potash Corporation of Saskatchewan Incorporated		(26,706	)		(433,705	)

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Alternative Strategies Fund 31

Security name	Shares			Value
Chemicals (continued)
Praxair Incorporated		(5,868	)	$	(659,505	)
The Mosaic Company		(17,285	)		(452,521	)
					(2,230,767	)
Metals & Mining: (0.28%)
First Quantum Minerals Limited		(43,847	)		(307,823	)
Teck Resources Limited Class B		(30,191	)		(397,615	)
					(705,438	)
Telecommunication Services: (0.03%)
Diversified Telecommunication Services: (0.03%)
AT&T Incorporated		(1,874	)		(80,976	)
Total Common Stocks – Securities Sold Short (Proceeds $(34,746,770))					(34,842,873	)
Exchange-Traded Funds: (9.89%)
Consumer Discretionary Select Sector SPDR Fund ETF		(11,669	)		(910,765	)
Consumer Staples Select Sector SPDR Fund ETF		(33,986	)		(1,874,328	)
Health Care Select Sector SPDR Fund ETF		(2,926	)		(209,853	)
Industrial Select Sector SPDR Fund ETF		(9,240	)		(517,070	)
iShares MSCI Brazil Capped ETF		(34,285	)		(1,033,007	)
Materials Select Sector SPDR ETF		(5,647	)		(261,682	)
SPDR S&P 500 ETF		(84,202	)		(17,642,845	)
SPDR S&P Regional Banking ETF		(10,343	)		(396,654	)
SPDR S&P Retail ETF		(15,310	)		(642,408	)
Technology Select Sector SPDR Fund ETF		(20,353	)		(882,506	)
VanEck Vectors Semiconductor ETF		(7,664	)		(440,373	)
Total Exchange-Traded Funds – Securities Sold Short (Proceeds $(24,373,322))					(24,811,491	)
Total Securities Sold Short (Proceeds $(59,120,092))					(59,654,364	)

Total investments in securities (excluding securities sold short) (Cost $219,266,693) *	90.27	%		226,594,000
Total securities sold short (Proceeds $(59,120,092))	(23.76	)		(59,654,364	)
Other assets and liabilities, net	33.49			84,069,966
Total net assets	100.00	%	$	251,009,602

The accompanying notes are an integral part of these financial statements.

32 Wells Fargo Alternative Strategies Fund Portfolio of investments—June 30, 2016

† Non-income-earning security

(b) All or a portion of this security is segregated as collateral for securities sold short.

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

(s) The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.

¥ A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.

(i) Illiquid security for which the designation as illiquid is unaudited.

@ Foreign bond principal is denominated in the local currency of the issuer.

± Variable rate investment. The rate shown is the rate in effect at period end.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

(z) Zero coupon security. The rate represents the current yield to maturity.

* Cost for federal income tax purposes is $227,069,220 and unrealized gains (losses) consists of:

Gross unrealized gains	$	12,729,488
Gross unrealized losses		(13,204,708	)
Net unrealized losses	$	(475,220	)

The accompanying notes are an integral part of these financial statements.

Statement of assets and liabilities—June 30, 2016 Wells Fargo Alternative Strategies Fund 33

Assets
Investments
In unaffiliated securities, at value (cost $168,211,140)	$	175,538,447
In affiliated securities, at value (cost $51,055,553)		51,055,553
Total investments, at value (cost $219,266,693)		226,594,000
Cash		41
Cash at prime broker for securities sold short		64,142,005
Cash at prime broker for derivatives		1,261,925
Foreign currency, at value (cost $21,371,957)		21,682,701
Receivable for investments sold		5,575,698
Receivable for Fund shares sold		441,511
Receivable for dividends and interest		264,631
Receivable for daily variation margin on open futures contracts		277,283
Unrealized gains on credit default swap transactions		385
Unrealized gains on forward foreign currency contracts		197,949
Unrealized gains on total return swap transactions		60,345
Prepaid expenses and other assets		55,648
Total assets		320,554,122
Liabilities
Dividends payable on securities sold short		116,901
Payable for investments purchased		6,178,949
Payable for Fund shares redeemed		2,216,409
Unrealized losses on total return swap transactions		186,601
Unrealized losses on forward foreign currency contracts		91,182
Premiums received on credit default swap transactions		1,032
Payable for daily variation margin on open futures contracts		330,756
Written options, at value (premiums received $357,900)		253,328
Payable for securities sold short, at value (proceeds $59,120,092)		59,654,364
Management fee payable		284,932
Distribution fee payable		8,025
Administration fees payable		29,477
Accrued expenses and other liabilities		192,564
Total liabilities		69,544,520
Total net assets	$	251,009,602
NET ASSETS CONSIST OF
Paid-in capital	$	254,401,970
Accumulated net investment loss		(1,278,703	)
Accumulated net realized losses on investments		(10,111,253	)
Net unrealized gains on investments		7,997,588
Total net assets	$	251,009,602
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	17,616,337
Shares outstanding – Class A1		1,760,048
Net asset value per share – Class A		$10.01
Maximum offering price per share – Class A2		$10.62
Net assets – Class C	$	12,669,840
Shares outstanding – Class C1		1,287,060
Net asset value per share – Class C		$9.84
Net assets – Administrator Class	$	35,188,522
Shares outstanding – Administrator Class1		3,503,598
Net asset value per share – Administrator Class		$10.04
Net assets – Institutional Class	$	185,534,903
Shares outstanding – Institutional Class1		18,435,057
Net asset value per share – Institutional Class		$10.06

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.

The accompanying notes are an integral part of these financial statements.

34 Wells Fargo Alternative Strategies Fund Statement of operations—year ended June 30, 2016

Investment income
Dividends (net of foreign withholding taxes of $52,057)	$	2,800,075
Interest		1,312,805
Income from affiliated securities		153,672
Total investment income		4,266,552
Expenses
Management fee		3,799,825
Administration fees
Class A		27,023
Class C		21,280
Administrator Class		34,856
Institutional Class		217,514
Shareholder servicing fees
Class A		32,171
Class C		25,333
Administrator Class		66,807
Distribution fee
Class C		76,000
Custody and accounting fees		395,838
Professional fees		62,396
Registration fees		81,334
Shareholder report expenses		67,077
Trustees’ fees and expenses		22,515
Dividends and interest expense on securities sold short		1,205,082
Prime broker fees		562,195
Other fees and expenses		49,388
Total expenses		6,746,634
Less: Fee waivers and/or expense reimbursements		(746,639	)
Net expenses		5,999,995
Net investment loss		(1,733,443	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(9,796,984	)
Securities sold short		2,973,367
Futures transactions		(1,126,149	)
Forward foreign currency contract transactions		(385,533	)
Foreign currency and foreign currency translations		118,420
Written options		327,817
Credit default swap transactions		277
Total return swap transactions		122,106
Capital gain distributions from investment companies		347,587
Net realized losses on investments		(7,419,092	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		2,950,315
Securities sold short		(1,728,596	)
Futures transactions		828,277
Forward foreign currency contract transactions		120,340
Foreign currency and foreign currency translations		831,997
Written options		129,020
Credit default swap transactions		385
Total return swap transactions		(175,246	)
Net change in unrealized gains (losses) on investments		2,956,492
Net realized and unrealized gains (losses) on investments		(4,462,600	)
Net decrease in net assets resulting from operations	$	(6,196,043	)

The accompanying notes are an integral part of these financial statements.

Statement of changes in net assets Wells Fargo Alternative Strategies Fund 35

	Year ended June 30, 2016						Year ended June 30, 20151						Year ended July 31, 20142
Operations
Net investment loss				$	(1,733,443	)				$	(409,829	)				$	(372,313	)
Net realized gains (losses) on investments					(7,419,092	)					3,562,413						(48,598	)
Net change in unrealized gains (losses) on investments					2,956,492						3,759,246						1,281,850
Net increase (decrease) in net assets resulting from operations					(6,196,043	)					6,911,830						860,939
Distributions to shareholders from
Net realized gains
Class A					(223,836	)					(25,783	)					0
Class C					(188,485	)					(18,175	)					0
Administrator Class					(361,883	)					(17,178	)					0
Institutional Class					(3,490,785	)					(1,497,363	)					0
Total distributions to shareholders					(4,264,989	)					(1,558,499	)					0
Capital share transactions		Shares						Shares						Shares
Proceeds from shares sold
Class A		1,817,481			18,623,286			235,618			2,508,255			156,226			1,567,098
Class C		1,350,979			13,802,561			123,694			1,304,534			112,656			1,127,500
Administrator Class		6,586,679			67,641,035			486,882			5,203,407			111,014			1,110,000
Institutional Class		16,461,170			170,134,081			5,333,055			56,672,360			9,700,000			97,000,000
					270,200,963						65,688,556						100,804,598
Reinvestment of distributions
Class A		22,001			223,789			2,510			25,746			0			0
Class C		18,330			184,236			1,540			15,733			0			0
Administrator Class		35,306			360,174			1,673			17,178			0			0
Institutional Class		238,285			2,433,253			140,736			1,446,167			0			0
					3,201,452						1,504,824						0
Payment for shares redeemed
Class A		(470,113	)		(4,738,024	)		(3,289	)		(34,930	)		(386	)		(3,912	)
Class C		(310,737	)		(3,077,186	)		(9,402	)		(95,074	)		0			0
Administrator Class		(3,715,198	)		(38,113,736	)		(2,758	)		(29,382	)		0			0
Institutional Class		(10,183,562	)		(105,316,859	)		(3,254,627	)		(34,734,926	)		0			0
					(151,245,805	)					(34,894,312	)					(3,912	)
Net increase in net assets resulting from capital share transactions					122,156,610						32,299,068						100,800,686
Total increase in net assets					111,695,578						37,652,399						101,661,625
Net assets
Beginning of period					139,314,024						101,661,625						0
End of period				$	251,009,602					$	139,314,024					$	101,661,625
Accumulated net investment loss				$	(1,278,703	)				$	(50,634	)				$	(24,113	)

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of operations) to July 31, 2014

The accompanying notes are an integral part of these financial statements.

36 Wells Fargo Alternative Strategies Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30						Year ended July 31, 20142
CLASS A	2016			20151
Net asset value, beginning of period		$10.58			$10.08			$10.00
Net investment loss		(0.10	)3		(0.06	)3		(0.04	)
Net realized and unrealized gains (losses) on investments		(0.28	)		0.71			0.12
Total from investment operations		(0.38	)		0.65			0.08
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.01			$10.58			$10.08
Total return4		(3.65	)%		6.49	%		0.80	%
Ratios to average net assets (annualized)
Gross expenses5		3.36	%		3.40	%		3.77	%
Net expenses5		2.95	%		2.93	%		3.00	%
Net investment loss		(0.96	)%		(0.64	)%		(1.70	)%
Supplemental data
Portfolio turnover rate		284	%		237	%		92	%
Net assets, end of period (000s omitted)		$17,616			$4,133			$1,571

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

³  Calculated based upon average shares outstanding

⁴  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

⁵  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Year ended June 30, 2016	0.83	%
Year ended June 30, 20151	0.64	%
Year ended July 31, 20142	0.58	%

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Alternative Strategies Fund 37

(For a share outstanding throughout each period)

	Year ended June 30						Year ended July 31, 20142
CLASS C	2016			20151
Net asset value, beginning of period		$10.49			$10.06			$10.00
Net investment loss		(0.17	)3		(0.13	)3		(0.06	)
Net realized and unrealized gains (losses) on investments		(0.29	)		0.71			0.12
Total from investment operations		(0.46	)		0.58			0.06
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$9.84			$10.49			$10.06
Total return4		(4.46	)%		5.80	%		0.60	%
Ratios to average net assets (annualized)
Gross expenses5		4.10	%		4.14	%		4.49	%
Net expenses5		3.70	%		3.70	%		3.75	%
Net investment loss		(1.73	)%		(1.35	)%		(2.45	)%
Supplemental data
Portfolio turnover rate		284	%		237	%		92	%
Net assets, end of period (000s omitted)	$	12,670		$	2,396		$	1,133

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

³  Calculated based upon average shares outstanding

⁴  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

⁵  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Year ended June 30, 2016	0.83	%
Year ended June 30, 20151	0.64	%
Year ended July 31, 20142	0.58	%

The accompanying notes are an integral part of these financial statements.

38 Wells Fargo Alternative Strategies Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30						Year ended July 31, 20142
ADMINISTRATOR CLASS	2016			20151
Net asset value, beginning of period		$10.60			$10.08			$10.00
Net investment loss		(0.09	)3		(0.05	)3		(0.04	)
Net realized and unrealized gains (losses) on investments		(0.28	)		0.72			0.12
Total from investment operations		(0.37	)		0.67			0.08
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.04			$10.60			$10.08
Total return4		(3.55	)%		6.58	%		0.90	%
Ratios to average net assets (annualized)
Gross expenses5		3.28	%		3.25	%		3.57	%
Net expenses5		2.79	%		2.78	%		2.84	%
Net investment loss		(0.85	)%		(0.51	)%		(1.54	)%
Supplemental data
Portfolio turnover rate		284	%		237	%		92	%
Net assets, end of period (000s omitted)	$	35,189		$	6,326		$	1,119

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

³  Calculated based upon average shares outstanding

⁴  Returns for periods of less than one year are not annualized.

⁵  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Year ended June 30, 2016	0.81	%
Year ended June 30, 20151	0.66	%
Year ended July 31, 20142	0.58	%

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Alternative Strategies Fund 39

(For a share outstanding throughout each period)

	Year ended June 30						Year ended July 31, 20142
INSTITUTIONAL CLASS	2016			20151
Net asset value, beginning of period		$10.61			$10.09			$10.00
Net investment loss		(0.06	)		(0.03	)		(0.04	)
Net realized and unrealized gains (losses) on investments		(0.30	)		0.70			0.13
Total from investment operations		(0.36	)		0.67			0.09
Distributions to shareholders from
Net realized gains		(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.06			$10.61			$10.09
Total return3		(3.45	)%		6.68	%		0.90	%
Ratios to average net assets (annualized)
Gross expenses4		3.00	%		2.95	%		3.29	%
Net expenses4		2.69	%		2.69	%		2.74	%
Net investment loss		(0.72	)%		(0.36	)%		(1.44	)%
Supplemental data
Portfolio turnover rate		284	%		237	%		92	%
Net assets, end of period (000s omitted)	$	185,535		$	126,459		$	97,838

¹  For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

²  For the period from April 30, 2014 (commencement of class operations) to July 31, 2014

³  Returns for periods of less than one year are not annualized.

⁴  Ratios include prime broker fees and dividend and interest expense on securities sold short as follows:

Year ended June 30, 2016	0.81	%
Year ended June 30, 20151	0.62	%
Year ended July 31, 20142	0.58	%

The accompanying notes are an integral part of these financial statements.

40 Wells Fargo Alternative Strategies Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Alternative Strategies Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.

Equity securities, options and futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the 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 Fund’s Valuation Procedures.

Non-listed options, swaps and exotics (i.e. caps, floors, etc.) are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team 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 Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On June 30, 2016, such fair value pricing was used in pricing foreign securities.

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

Investments in registered open-end investment companies are valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Notes to financial statements Wells Fargo Alternative Strategies Fund 41

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 subadvisers. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Forward foreign currency contracts

The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contract transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.

When-issued transactions

The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Futures contracts

The Fund is subject to interest rate risk, equity price risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in security values and interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset or liability and in the Statement of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

Options

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an

42 Wells Fargo Alternative Strategies Fund Notes to financial statements

amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.

The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment, the value of which is subsequently adjusted based on the current market value of the option. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

Options traded on an exchange are regulated and terms of the options are standardized. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Short sales

The Fund may sell a security it does not own in anticipation of a decline in the market value of that security (short sale). When the Fund makes a short sale, it must borrow the security sold short and deliver it to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement.

The Fund records the proceeds as a liability which is marked-to-market daily based upon quotations from an independent pricing service or an independent broker-dealer and any change in value is recorded as an unrealized gain or loss. Any interest or dividends accrued on such borrowed securities during the period of the loan are recorded as an expense on the Statement of Operations. To borrow the security, the Fund may be required to pay a premium, which would decrease the proceeds of the security sold. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the closing of a short sale if the market price at the closing is less than or greater than, respectively, the proceeds originally received. Until the short sale is closed or the borrowed security is replaced, the Fund maintains a segregated account of cash or liquid securities, the dollar value of which is at least equal to the market value of the security at the time of the short sale.

Credit default swaps

The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund may enter into credit default swap contracts for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or for investment gains. Credit default swaps involve an exchange of a stream of payments for protection against the loss in value of an underlying security or index. Under the terms of the swap, one party acts as a guarantor (referred to as the seller of protection) and receives a periodic stream of payments, provided that there is no credit event, from another party (referred to as the buyer of protection) that is a fixed percentage applied to a notional principal amount over the term of the swap. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. A credit event includes bankruptcy, failure to pay, obligation default, obligation acceleration, repudiation/moratorium, and restructuring. The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates. The maximum potential amount of future payments (undiscounted) that the Fund as the seller of protection could be required to make under the credit default swap contract would be an amount equal to the notional amount of the swap contract. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

If the Fund is the seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the buyer of protection the notional amount of the swap and take delivery of the

Notes to financial statements Wells Fargo Alternative Strategies Fund 43

referenced obligation or underlying securities comprising the referenced index. If the Fund is the buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will receive from the seller of protection the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index.

Any premiums paid or received on the transactions are recorded as an asset or liability on the Statement of Assets and Liabilities and amortized. The value of the swap contract is marked-to-market daily based on quotations from an independent pricing service or an independent broker-dealer and any change in value is recorded as an unrealized gain or loss. Periodic payments made or received are recorded as realized gains or losses. In addition, payments received or made as a result of a credit event or termination of the contract are recognized as realized gains or losses.

Certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements. Any election by the counterparty to terminate early may impact the amounts reported on the financial statements.

Total return swaps

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund may enter into total return swap contracts for hedging or speculative purposes. Total return swaps involve commitments to pay interest in exchange for a market-linked return, both based on notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from, or make a payment to, the counterparty.

The value of the swap contract is marked-to-market daily based upon quotations from an independent pricing service or an independent broker-dealer and any change in value is recorded as an unrealized gain or loss. Periodic payments made or received are recorded as realized gains or losses. The Fund could be exposed to risks if the counterparty defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index. The Fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Certain total return swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements. Any election by the counterparty to terminate early may impact the amounts reported on the financial statements.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

44 Wells Fargo Alternative Strategies Fund Notes to financial statements

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to certain distributions paid, dividends from certain securities, foreign currency transactions, net operating losses, and securities sold short. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net investment loss	Accumulated net realized losses on investments
$(852,321)	$505,374	$346,947

As of June 30, 2016, the Fund had current year deferred post-October capital losses and a qualified late-year ordinary loss which will both be recognized on the first day of the following fiscal year in the following amounts:

Deferred post-October capital losses		Late-year ordinary losses deferred
Short-term	Long-term
$(1,239,705)	$(621,036)	$(1,283,264)

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

Notes to financial statements Wells Fargo Alternative Strategies Fund 45

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	30,844,220	$	2,557,854	$	0	$	33,402,074
Consumer staples		14,561,395		4,572,992		0		19,134,387
Energy		10,182,486		639,418		0		10,821,904
Financials		8,810,786		2,809,791		0		11,620,577
Health care		15,419,309		1,088,740		0		16,508,049
Industrials		8,354,547		2,687,757		0		11,042,304
Information technology		18,428,093		2,122,181		0		20,550,274
Materials		7,079,594		1,193,062		0		8,272,656
Telecommunication services		1,393,208		1,962,967		0		3,356,175
Utilities		1,684,773		470,083		0		2,154,856
Corporate bonds and notes		0		2,226,533		0		2,226,533
Exchange-traded funds		0		18,349		0		18,349
Foreign corporate bonds and notes		0		77,402		0		77,402
Investment companies		20,351,161		0		0		20,351,161
Municipal obligations		0		701,354		0		701,354
Non-agency mortgage-backed securities		0		10,170,669		0		10,170,669
Preferred stocks
Financials		0		11,752		0		11,752
Health care		551,023		0		0		551,023
Industrials		0		0		59,307		59,307
Purchased put options		0		540,874		0		540,874
Warrants
Financials		0		288,462		0		288,462
Industrials		0		19,978		0		19,978
Short-term investments
Investment companies		51,055,553		0		0		51,055,553
U.S. Treasury securities		3,658,327		0		0		3,658,327
		192,374,475		34,160,218		59,307		226,594,000
Forward foreign currency contracts		0		197,949		0		197,949
Futures contracts		277,283		0		0		277,283
Total return swap contracts		0		60,345		0		60,345
Total assets	$	192,651,758	$	34,418,512	$	59,307	$	227,129,577
Liabilities
Securities sold short
Common stocks
Consumer discretionary	$	4,824,485	$	575,680	$	0	$	5,400,165
Consumer staples		1,175,815		199,218		0		1,375,033
Energy		9,230,435		0		0		9,230,435
Financials		2,268,826		470,033		0		2,738,859
Health care		1,234,375		0		0		1,234,375
Industrials		2,351,793		0		0		2,351,793
Information technology		9,495,032		0		0		9,495,032
Materials		2,936,205		0		0		2,936,205
Telecommunication services		80,976		0		0		80,976
Exchange-traded funds		24,811,491		0		0		24,811,491
		58,409,433		1,244,931		0		59,654,364
Credit default swap contracts		0		647		0		647
Forward foreign currency contracts		0		91,182		0		91,182
Futures contracts		330,756		0		0		330,756
Total return swap contracts		0		186,601		0		186,601
Written options		0		253,328		0		253,328
Total liabilities	$	58,740,189	$	1,776,689	$	0	$	60,516,878

46 Wells Fargo Alternative Strategies Fund Notes to financial statements

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. Futures contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Swap contracts consists of unrealized gains (losses) and premiums paid or received on swap contracts, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, fair value pricing was used in pricing certain foreign securities and securities in long positions valued at $13,374,984 were transferred from Level 1 to Level 2 within the fair value hierarchy. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadvisers, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 1.75% and declining to 1.63% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 1.75% of the Fund’s average daily net assets.

Funds Management has engaged The Rock Creek Group, LP, Chilton Investment Company, LLC, Ellington Global Asset Management LLC, Mellon Capital Management Corporation, Passport Capital, LLC, Pine River Capital Management L.P., River Canyon Fund Management LLC, Sirios Capital Management, L.P. and Wellington Management Company, LLP (“WMC”) to serve as sub-advisers to the Fund. The fee for subadvisory services is borne by Funds Management. The subadvisers are each entitled to receive from Funds Management an annual subadvisory fee.

The Rock Creek Group, LP, an indirect majority owned subsidiary of Wells Fargo and an affiliate of Funds Management, is entitled to receive a fee at an annual rate starting at 0.60% and declining to 0.55% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the subadvisory fees paid to the remaining unaffiliated subadvisors was equivalent to an annual rate of 0.98% of the Fund’s average daily net assets.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:

	Class-level administration fee
Class A, Class C		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 2.22% for Class A shares, 2.97% for Class C shares, 2.07% for Administrator Class shares, and 1.97% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prime broker fees and dividend and interest expense on securities sold short are excluded from the expense caps.

Notes to financial statements Wells Fargo Alternative Strategies Fund 47

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $24,920 from the sale of Class A shares and $138 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $603,585,990 and $546,474,673, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

48 Wells Fargo Alternative Strategies Fund Notes to financial statements

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into futures contracts for speculative purposes.

At June 30, 2016, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Contracts	Counterparty	Type	Contract value at June 30, 2016		Unrealized gains (losses)
7-15-2016	2 Short	Morgan Stanley	Amsterdam Index	$	193,230	$	(7,523	)
7-15-2016	30 Long	Morgan Stanley	CAC 40 Index		1,409,604		24,913
7-15-2016	13 Long	Morgan Stanley	IBEX 35 Index		1,172,505		(8,358	)
7-28-2016	2 Long	Morgan Stanley	Hang Seng Index		270,002		10,273
9-8-2016	136 Short	Morgan Stanley	Euro-Bund Futures		25,222,749		(475,623	)
9-8-2016	19 Long	Morgan Stanley	TOPIX Index		2,291,628		(157,223	)
9-8-2016	9 Short	Morgan Stanley	TOPIX Index		1,085,508		83,713
9-15-2016	110 Long	Morgan Stanley	10-Year Australian Treasury Bonds		11,173,539		84,923
9-15-2016	18 Short	Morgan Stanley	S&P/TSX 60 Index		2,273,494		(16,083	)
9-15-2016	8 Short	Morgan Stanley	SPI 200 Index		772,052		(8,835	)
9-16-2016	11 Long	Morgan Stanley	DAX Index		2,950,644		12,364
9-16-2016	111 Short	Morgan Stanley	Euro STOXX 50 Index		3,516,853		(51,952	)
9-16-2016	31 Short	Morgan Stanley	FTSE 100 Index		2,650,484		(229,504	)
9-16-2016	20 Short	Morgan Stanley	FTSE 100 Index		1,709,990		(136,090	)
9-16-2016	26 Long	Morgan Stanley	FTSE MIB Index		2,335,835		57,981
9-16-2016	20 Short	Morgan Stanley	MSCI EAFE Index		1,615,200		(20,645	)
9-16-2016	10 Short	Morgan Stanley	MSCI Emerging Markets Index		417,350		(18,923	)
9-16-2016	11 Short	Morgan Stanley	Russell 2000 Index		1,262,140		(7,156	)
9-16-2016	43 Short	Morgan Stanley	S&P 500 E-Mini Index		4,493,930		7,795
9-16-2016	8 Short	Morgan Stanley	S&P 500 E-Mini Index		836,080		(8,076	)
9-19-2016	87 Short	Morgan Stanley	British Pound Futures		7,203,600		347,155
9-19-2016	160 Short	Morgan Stanley	Euro FX Futures		22,215,000		475,073
9-19-2016	8 Short	Morgan Stanley	Swedish Krona Futures		1,892,480		84,776
9-19-2016	1 Long	Morgan Stanley	Swiss Franc Futures		128,300		(1,878	)
9-21-2016	6 Long	Morgan Stanley	10-Year Canadian Treasury Bonds		687,519		3,111
9-21-2016	221 Long	Morgan Stanley	10-Year U.S. Treasury Notes		29,389,547		760,940
9-28-2016	25 Short	Morgan Stanley	Long Gilt Bonds		4,276,306		(12,875	)

The Fund had an average notional amount of $43,362,119 in long and $71,940,209 in short futures contracts during the year ended June 30, 2016. As of June 30, 2016, in addition to securities held as collateral, the Fund had $801,183 on deposit at the prime broker for open futures contracts.

Notes to financial statements Wells Fargo Alternative Strategies Fund 49

During the year ended June 30, 2016, the Fund entered into forward foreign currency contracts for speculative purposes.

At June 30, 2016, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty	Contracts to receive			U.S. value at June 30, 2016		In exchange for U.S. $		Unrealized gains (losses)
7-15-2016	Morgan Stanley		169,000	EUR	$	187,613	$	186,694	$	919
7-15-2016	Morgan Stanley		37,000	EUR		41,075		41,544		(469	)
7-15-2016	Morgan Stanley		39,000	EUR		43,295		44,038		(743	)
7-15-2016	Morgan Stanley		29,000	EUR		32,194		32,919		(725	)
7-15-2016	Morgan Stanley		22,000	EUR		24,423		24,908		(485	)
7-15-2016	Morgan Stanley		24,000	EUR		26,643		27,542		(899	)
7-15-2016	Morgan Stanley		15,000	CHF		15,371		15,697		(326	)
7-15-2016	Morgan Stanley		70,000	EUR		77,709		80,179		(2,470	)
9-21-2016	Morgan Stanley		98,049	CHF		100,857		100,608		249
9-21-2016	Morgan Stanley		81,048	CHF		83,369		84,447		(1,078	)
9-21-2016	Morgan Stanley		111,328	CHF		114,516		116,311		(1,795	)
9-21-2016	Morgan Stanley		24,000	EUR		26,709		26,631		78

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver			U.S. value at June 30, 2016		In exchange for U.S. $		Unrealized gains (losses)
7-15-2016	Morgan Stanley		57,000	EUR	$	63,278	$	62,779	$	(499	)
7-15-2016	Morgan Stanley		89,000	EUR		98,802		99,428		626
7-15-2016	Morgan Stanley		17,000	EUR		18,872		19,348		476
7-15-2016	Morgan Stanley		638,000	EUR		708,266		728,596		20,330
7-15-2016	Morgan Stanley		24,000	CHF		24,593		25,237		644
7-15-2016	Morgan Stanley		76,000	CHF		77,879		79,916		2,037
7-15-2016	Morgan Stanley		496,000	EUR		550,627		566,432		15,805
7-15-2016	Morgan Stanley		189,000	CHF		193,672		198,738		5,066
7-15-2016	Morgan Stanley		26,000	EUR		28,864		29,665		801
7-15-2016	Morgan Stanley		49,000	EUR		54,397		54,637		240
7-15-2016	Morgan Stanley		34,000	EUR		37,745		38,509		764
9-21-2016	Bank of America		463,000	GBP		616,826		650,809		33,983
9-21-2016	JPMorgan Chase Bank		286,757,000	JPY		2,784,196		2,702,578		(81,618	)
9-21-2016	Morgan Stanley		1,606,448	CHF		1,652,451		1,674,883		22,432
9-21-2016	Morgan Stanley		73,914	EUR		82,259		82,184		(75	)
9-21-2016	Morgan Stanley		691,394	EUR		769,447		783,537		14,090
9-21-2016	Morgan Stanley		72,270	EUR		80,429		80,472		43
9-21-2016	Morgan Stanley		10,505	EUR		11,691		11,891		200
9-21-2016	Morgan Stanley		179,656	CHF		184,801		188,189		3,388
9-21-2016	UBS		3,342,000	EUR		3,719,286		3,795,064		75,778

The Fund had average contract amounts of $1,337,953 and $9,250,469 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the year ended June 30, 2016.

During the year ended June 30, 2016, the Fund entered into written options for speculative purposes.

50 Wells Fargo Alternative Strategies Fund Notes to financial statements

During the year ended June 30, 2016, the Fund had written option activities as follows:

	Call options						Put options
	Number of contracts			Premiums received			Number of contracts			Premiums received
Options outstanding at June 30, 2015		5		$	957			46		$	193,061
Options written		48			8,178			131			593,183
Options expired		(26	)		(4,352	)		(43	)		(156,969	)
Options closed		(2	)		(329	)		(66	)		(275,201	)
Options exercised		(3	)		(628	)		0			0
Options outstanding at June 30, 2016		22		$	3,826			68		$	354,074

Open put/call options written at June 30, 2016 were as follows:

Expiration date	Counterparty	Description	Number of contracts		Call/Put		Strike price		Value
7-15-2016	Morgan Stanley	EMC Corporation		1		Call	$	28	$	(13	)
8-19-2016	Morgan Stanley	Avis Budget Group Incorporated		5		Call		33		(1,145	)
11-18-2016	Morgan Stanley	Avis Budget Group Incorporated		3		Call		33		(1,080	)
11-18-2016	Morgan Stanley	Avis Budget Group Incorporated		3		Call		32		(1,260	)
12-16-2016	Morgan Stanley	S&P 500 Index		26		Put		1,700		(50,440	)
1-20-2017	Morgan Stanley	Avis Budget Group Incorporated		5		Call		40		(1,084	)
1-20-2017	Morgan Stanley	Avis Budget Group Incorporated		5		Call		38		(1,357	)
3-17-2017	Morgan Stanley	S&P 500 Index		21		Put		1,725		(80,010	)
6-16-2017	Morgan Stanley	S&P 500 Index		21		Put		1,725		(116,939	)

The Fund had an average of 10 written call options and 72 written put options during the year ended June 30, 2016. As of June 30, 2016, the Fund had $293,195 on deposit at the prime broker for written options.

During the year ended June 30, 2016, the Fund entered into purchased option contracts for speculative purposes and had an average of 106 purchased call options and 258 purchased put options.

During the year ended June 30, 2016, the Fund entered into total return swap contracts for speculative purposes. At June 30, 2016, the Fund had the following total return swap contracts outstanding:

Expiration	Notional amount	Counterparty	Swap description	Unrealized gains (losses)
10-20-2016	$41,426	Morgan Stanley	In an agreement dated 10-17-2014, the Fund makes monthly payments of 1 Month USD LIBOR +50. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Ally Financial Incorporated.	$	(8,703	)
10-20-2016	278,098	Morgan Stanley	In an agreement dated 10-17-2014, the Fund makes monthly payments of 1 Month USD LIBOR +50. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Brookdale Senior Living Incorporated.		(141,439	)
10-20-2016	119,199	Morgan Stanley	In an agreement dated 10-17-2014, the Fund makes monthly payments of 1 Month USD LIBOR +50. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Comcast Corporation Class A.		34,128
2-10-2017	162,755	Morgan Stanley	In an agreement dated 5-16-2016, the Fund makes monthly payments of 1 Month EUR LIBOR +60 basis points. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Ryanair Holdings plc.		(36,459	)
6-1-2018	(142,011)	Morgan Stanley	In an agreement dated 6-1-2016, the Fund receives monthly payments of 1 Month USD LIBOR -50. At expiration, the Fund will receive the negative return or pay the positive return of the referenced entity Banco Santander SA.		26,217

Notes to financial statements Wells Fargo Alternative Strategies Fund 51

During the year ended June 30, 2016, the Fund had an average notional balance on total return swaps of $3,926,100. As of June 30, 2016, the Fund had $167,547 on deposit at the prime broker for total return swaps.

The Fund enters into credit default swap contracts as a substitute for taking a position in the underlying security or basket of securities or to potentially enhance the Fund’s total return. At June 30, 2016, the Fund had the following credit default swap contracts outstanding:

Credit default swaps on debt obligations– Sell protection

Expiration	Counterparty	Reference debt obligation	Rating of reference debt obligation*		Notional amount		Fixed payments received			Value			Premiums received			Unrealized gains
12-21-2020	Morgan Stanley	Yum! Brands Incorporated, 6.25%, 3-15-18		AAA	$	15,000		1.00	%	$	(647	)	$	(1,032	)	$	385

* Reflects the ratings of a nationally recognized ratings agency at period end. The credit rating serves as indicator of the current status of the payment/performance risk of the credit derivative. A rating of D would most likely indicate a trigger event of default has occurred although circumstances including bankruptcy, failure to pay, obligation default, obligation acceleration, repudiation/moratorium and restructuring may also cause a credit event to take place.

The Fund had an average notional balance on credit default swaps of $43,667 during the year ended June 30, 2016.

The Fund’s credit default swap transactions may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions.

A summary of derivative instruments by primary risk exposure is outlined in the following tables.

The fair value of derivative instruments as of June 30, 2016 was as follows for the Fund:

	Asset derivatives				Liability derivatives
	Statement of Assets and Liabilities location	Fair value			Statement of Assets and Liabilities location	Fair value
Equity risk	Investments in unaffiliated securities, at value	$	540,874	*	Payable for written options	$	253,328
	Receivable for daily variation margin on open futures contracts		95,033	**	Payable for daily variation margin on open futures contracts		270,506	**
Foreign currency risk	Unrealized gains on forward foreign currency		197,949		Unrealized losses on forward foreign currency contracts		91,182
	Receivable for daily variation margin on open futures contracts		162,543	**	Payable for daily variation margin on open futures contracts		0
Interest rate risk	Receivable for daily variation margin on open futures contracts		19,707	**	Payable for daily variation margin on open futures contracts		60,250	**
	Unrealized gains on total return swap transactions		60,345		Unrealized losses on total return swap transactions		186,601
Credit contracts	Unrealized gains on credit default swap transactions		385		Premiums received on credit default swap transactions		1,032
		$	1,076,836			$	862,899

* Amount relates to purchased options

** Only the current day’s variation margin as of June 30, 2016, is reported separately on the Statement of Assets and Liabilities.

52 Wells Fargo Alternative Strategies Fund Notes to financial statements

The effect of derivative instruments on the Statement of Operations for the year ended June 30, 2016 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives
	Unaffiliated securities*			Futures contracts			Forward foreign currency contracts			Written options		Credit default swaps		Total return Swaps			Total
Interest rate risk	$	0		$	(459,911	)	$	0		$	0	$	0	$	122,106		$	(337,805	)
Equity contracts		(448,538	)		(1,416,367	)		0			327,817		0		0			(1,537,088	)
Foreign currency risk		0			750,129			(385,533	)		0		0		0			364,596
Credit contracts		0			0			0			0		277		0			277
	$	(448,538	)	$	(1,126,149	)	$	(385,533	)	$	327,817	$	277	$	122,106		$	(1,510,020	)
	Change in unrealized gains (losses) on derivatives
	Unaffiliated securities*			Futures contracts			Forward foreign currency contracts			Written options		Credit default swaps		Total return Swaps			Total
Interest rate risk	$	0		$	569,406		$	0		$	0	$	0	$	(175,246	)	$	394,160
Equity contracts		(585,306	)		(581,368	)		0			129,020		0		0			(1,037,654	)
Foreign currency risk		0			840,239			120,340			0		0		0			960,579
Credit contracts		0			0			0			0		385		0			385
	$	(585,306	)	$	828,277		$	120,340		$	129,020	$	385	$	(175,246	)	$	317,470

* Amount relates to purchased options

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts  of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	Morgan Stanley	$277,283	$	(277,283	)	$	0	$	0
Forward foreign currency contracts	Bank of America	33,983*		0			0		33,983
Forward foreign currency contracts	Morgan Stanley	88,188*		(9,564	)		0		78,624
Forward foreign currency contracts	UBS	75,778*		0			0		75,778
Total return swaps	Morgan Stanley	60,345*		(60,345	)		0		0

* Amount represents net unrealized gains.

Notes to financial statements Wells Fargo Alternative Strategies Fund 53

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Futures – variation margin	Morgan Stanley	$330,756	$	(277,283	)	$	(53,473	)	$	0
Forward foreign currency contracts	JPMorgan Chase Bank	81,618*		0			0			81,618
Forward foreign currency contracts	Morgan Stanley	9,564*		(9,564	)		0			0
Written options	Morgan Stanley	253,328		0			(253,328	)		0
Total return swaps	Morgan Stanley	186,601*		(60,345	)		(126,256	)		0
Credit default swaps	Morgan Stanley	647**		0			0			647

¹ Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty by derivative type.

* Amount represents net unrealized losses.

** The value of swap contracts consists of unrealized losses and premiums received on swap contracts as reflected on the Statement of Assets and Liabilities.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $200,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% of the unused balance is allocated to each participating fund. Prior to September 1, 2015, the revolving credit agreement amount was $150,000,000 and the annual commitment fee was equal to 0.10% of the unused balance which was allocated to each participating fund.

The Fund also had a committed credit facility to provide leverage for investment purposes. The credit facility had a commitment amount of $10 million which expired on March 2, 2016. During the year ended June 30, 2016, the Fund did not borrow under the credit facility but paid a commitment fee at an annual rate equal to 0.25% on the unutilized portion of the credit facility.

During the year ended June 30, 2016, the Fund did not borrow under either credit facility.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended June 30, 2016 and June 30, 2015 were as follows:

	Year ended June 30				Year ended July 31, 2014**
	2016		2015*
Ordinary income	$	3,032,012	$	1,057,252	$	0
Long-term capital gain		1,232,977		501,247		0

* For the eleven months ended June 30, 2015. The Fund changed its fiscal year end from July 31 to June 30, effective June 30, 2015.

** For the period from April 30, 2014 (commencement of operations) to July 31, 2014

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Unrealized losses	Late-year ordinary losses deferred	Post-October capital losses deferred
$(248,363)	$(1,283,264)	$(1,860,741)

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

54 Wells Fargo Alternative Strategies Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Alternative Strategies Fund (formerly known as Wells Fargo Advantage Alternative Strategies Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year end, and the statements of changes in net assets and financial highlights for the year then ended, the period from August 1, 2014 through June 30, 2015, and the period from April 30, 2014 (commencement of operations) through July 31, 2014. 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 June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Alternative Strategies Fund as of June 30, 2016, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended, the period from August 1, 2014 through June 30, 2015, and the period from April 30, 2014 (commencement of operations) through July 31, 2014, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

Other information (unaudited) Wells Fargo Alternative Strategies Fund 55

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 11.43% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended June 30, 2016.

Pursuant to Section 852 of the Internal Revenue Code, $1,232,977 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2016.

Pursuant to Section 854 of the Internal Revenue Code, $491,429 of income dividends paid during the fiscal year ended June 30, 2016 has been designated as qualified dividend income (QDI).

For the fiscal year ended June 30, 2016, $2,944,802 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available at each fiscal quarter end on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. As of each month end other than a month end that coincides with a fiscal quarter end, the Fund makes publicly available on the Fund’s website, on a one-month delayed basis (i) all portfolio holdings held long other than any put options on equity securities; (ii) portfolio holdings held short other than short positions in equity securities of single issuers; and (iii) the aggregate dollar value of equity securities of single issuers held short, and any put options on equity securities held long. In addition, top ten holdings information (excluding derivative positions and short positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

56 Wells Fargo Alternative Strategies Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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 Alternative Strategies Fund 57

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.

58 Wells Fargo Alternative Strategies Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Alternative Strategies Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment sub-advisory agreement with The Rock Creek Group LP (“Rock Creek”), an affiliate of Funds Management; (iii) an investment sub-advisory agreement with Rock Creek and Chilton Investment Company, LLC (“Chilton”); (iv) an investment sub-advisory agreement with Rock Creek and Mellon Capital Management Corporation (“Mellon”); (v) an investment sub-advisory agreement with Rock Creek and Passport Capital, LLC (“Passport”); (vi) an investment sub-advisory agreement with Rock Creek and Pine River Capital Management L.P. (“Pine River”); (vii) an investment sub-advisory agreement with Rock Creek and River Canyon Fund Management LLC (“River Canyon”); (viii) an investment sub-advisory agreement with Rock Creek and Sirios Capital Management, L.P. (“Sirios”); and (ix) an investment sub-advisory agreement with Rock Creek and Wellington Management Company, LLC (“Wellington”). The sub-advisory agreements with Rock Creek, Chilton, Mellon, Passport, Pine River, River Canyon, Sirios, and Wellington (the “Sub-Advisers”) are collectively referred to as the “Sub-Advisory Agreements,” and 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-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 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-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 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-Advisers 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-Advisers 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-Advisers 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 Alternative Strategies Fund 59

The Board evaluated the ability of Funds Management and the Sub-Advisers 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-Advisers. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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 the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays U.S. Aggregate Bond Index, for all periods under review. The Board noted the short performance history of the Fund.

The Board also received and considered information regarding the 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 in comparison to the median ratios of funds in class-specific 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 the net operating expense ratios of the Fund were lower than, equal to, or in range of the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to each of the Sub-Advisers for investment sub-advisory services.

Among other information reviewed by the Board was a comparison of the Fund’s 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 Fund were higher than the sum of these average rates for the Fund’s expense Groups for all share classes. The Board noted that the net operating expense ratios of the Fund were lower than, equal to, or in range of the median net operating expense ratios of the expense Groups for all share classes.

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-Advisers for sub-advisory services. The 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 Fund. 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-Advisers, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and Rock Creek, the Board ascribed limited relevance to the allocation of fees between them. The Board also considered that the sub-advisory fees paid to Chilton, Mellon, Passport, Pine River, River Canyon, Sirios and Wellington had been negotiated by Funds Management on an arm’s length basis.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Advisers to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

60 Wells Fargo Alternative Strategies Fund Other information (unaudited)

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Advisers under the Sub-Advisory Agreements was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of Rock Creek from providing services to the fund family as a whole, noting that Rock Creek’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis. The Board did not receive or consider profitability information with respect to Chilton, Mellon, Passport, Pine River, River Canyon, Sirios and Wellington, 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 Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Advisers

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management, the Sub-Advisers, and their affiliates as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Advisers’ business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by Chilton, Passport, Pine River, River Canyon, Sirios and Wellington, fees earned by Funds Management and its affiliate 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, the Sub-Advisers, and their affiliates 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-Advisers under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Alternative Strategies Fund 61

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 Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

244414 08-16 A267/AR267 6-16

Annual Report

June 30, 2016

Wells Fargo Global Long/Short Fund

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	20
Report of independent registered public accounting firm	27
Other information	28
List of abbreviations	34

The views expressed and any forward-looking statements are as of June 30, 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 Global Long/Short Fund 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 Global Long/Short Fund for the 12-month period that ended June 30, 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 ended, voters in the U.K. approved a referendum to leave the European Union, injecting new uncertainty into the markets and sending stock prices and bond yields significantly lower. Equity markets soon recovered to varying degrees, but bond prices remained elevated and yields lower as investors sought lower-volatility assets due to short-term fears.

Shifting investor sentiment reflected changing economic and business data.

Early in the period, oil prices declined after a spring 2015 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 drop 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—during August 2015 before recovering somewhat. The index retested its August lows in late September 2015 before recovering most of its year-to-date losses from October through December 2015. As anticipated, the U.S. Federal Reserve (Fed) increased the federal funds rate in December and suggested that 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 3.99% 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.

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 United States 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 Global Long/Short Fund 3

For the 12-month reporting period, the MSCI ACWI ex USA Index (Net) and MSCI EM Index (Net) recorded returns of -10.24% and -12.06%, 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. Data released in January 2016 indicated that U.S. corporate profits fell in the fourth quarter of 2015, the second consecutive quarter of decline. 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, particularly international bonds, benefited during the period, with the Barclays Global Aggregate ex U.S. Dollar Bond Index⁴ gaining 11.24% and the Barclays U.S. Aggregate Bond Index⁵ gaining 6.00%.

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

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.

4 Wells Fargo Global Long/Short Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Dale A. Winner, CFA^®

Average annual total returns (%) as of June 30, 2016

		Including sales charge						Excluding sales charge						Expense ratios1 (%)
	Inception date	1 year			Since inception			1 year			Since inception			Gross		Net2
Class A (WGLAX)	11-28-2014		(15.57	)		(8.15	)		(10.43	)		(4.66	)		5.38		2.85
Class C (WGLCX)	11-28-2014		(12.18	)		(5.40	)		(11.18	)		(5.40	)		6.13		3.60
Administrator Class (WGLDX)	11-28-2014		–			–			(10.38	)		(4.57	)		5.30		2.75
Institutional Class (WGLSX)	11-28-2014		–			–			(10.12	)		(4.34	)		5.05		2.55
Global Long/Short Composite Index3	–		–			–			(1.55	)		(0.72	)		–		–
Barclays U.S. 1-3 Month Treasury Bill Index4	–		–			–			0.14			0.09			–		–
MSCI ACWI Index (Net)5	–		–			–			(3.73	)		(1.95	)		–		–

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. There are numerous risks associated with transactions in options on securities. Borrowing money to purchase securities or cover short positions magnifies losses and incurs expenses. Short selling is generally considered speculative, has the potential for unlimited loss, and may involve leverage. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to regulatory and smaller-company 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 Global Long/Short Fund 5

Growth of $10,000 investment as of June 30, 2016⁶

¹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.05% in acquired fund fees and expenses and 1.05% in dividend and interest expenses on securities sold short. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

²  The manager has contractually committed through October 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 1.75% for Class A, 2.50% for Class C, 1.65% for Administrator Class, and 1.45% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, prime broker fees, dividend and interest expenses on securities sold short, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower.

³  Source: Wells Fargo Funds Management, LLC. The Global Long/Short Composite Index is weighted 50% in the MSCI ACWI Index (Net) (measures the equity market performance of developed and emerging markets) and 50% in the Barclays U.S. 1-3 Month Treasury Bill Index (tracks the performance and attributes of recently issued 1-3 month U.S. Treasury bills using Barclays’ monthly rebalancing conventions). You cannot invest directly in an index.

⁴  The Barclays U.S. 1-3 Month Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. You cannot invest directly in an index.

⁵  The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the United States 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 chart compares the performance of Class A shares since inception with the Global Long/Short Composite Index, Barclays U.S. 1-3 Month Treasury Bill Index, and the MSCI ACWI Index (Net). The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁷  The ten largest long and short position holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁸  The chart shows the percentage of Fund holdings within a particular sector or country that was held long (securities owned by the Fund) or sold short (sale of borrowed securities). Gross exposure is the absolute value of the long positions and short positions combined. Net exposure is the percentage of long positions minus the percentage of positions sold short. Short positions are represented by negative numbers.

6 Wells Fargo Global Long/Short Fund Performance highlights (unaudited)

MANAGERS’ DISCUSSION

Fund highlights

n The Fund underperformed its benchmark the Global Long/Short Composite Index for the 12-month period that ended June 30, 2016. (The Fund’s securities were either held long, as in securities owned by the fund, or sold short, as in the sale of borrowed securities.) The Fund’s underperformance was due primarily to notable stock-specific losses in each region globally during an unusually volatile period for global equities characterized by persistent momentum trading rather than a focus on fundamental value.

n Overall attribution gains primarily from long and short positions in the U.K. and China, as well as regional equity hedges globally and hedges of European and Japanese currency risk, were more than offset by losses in stock positions primarily in Japan, Germany, the Netherlands, and Italy, as well as underweights in U.S. equities.

n Notable gains were generated among consumer durables and producer manufacturing industries, but they were more than offset by stock positions in finance, consumer nondurables, and technology services.

n We continue to find fundamental long and short stock investment ideas as overall macroeconomic volatility persists, primarily across Asia and Europe.

While the Fund underperformed its benchmark during this period, we believe that our fundamental research-driven long and short positions will accrue value as global equity markets begin to normalize, rewarding fundamental valuations more than momentum. Results were derived from our research and risk management processes as we focused on fundamentals among nonconsensus ideas and sought low valuations underpinned by well-researched risk management.

Overall, Fund net exposures have concentrated across developed markets—notably Japan, the U.K., Hong Kong, Germany, Italy, and the Netherlands—with lower exposures across emerging markets other than China and South Korea. As we look globally, we continue to find compelling values internationally as the impacts of self-help restructuring, targeted regional reforms, and reflationary efforts allow select companies to engage in differentiated actions to potentially generate shareholder value, while others remain mired in unsustainable and uncompetitive business models more vulnerable to adverse volatility. At the same time, we recognize that a transition to more normalized monetary policy in the U.S. relative to expanding monetary and credit easing in Europe and the U.K., in particular, places pressures on domestic currencies. This contributes to our partial hedges of foreign-exchange risk of net long exposures in European and British currency-denominated net equity exposures. We covered our Japanese yen hedges early in 2016 based on a determination of diminishing returns from Japanese efforts to deflate its local currency.

Ten largest long position holdings (%) as of June 30,  20167
Vodafone Group plc	2.58
Compagnie de Saint-Gobain SA	2.45
Mitsubishi UFJ Financial Group Incorporated	2.26
Akzo Nobel NV	2.02
Alphabet Incorporated Class C	2.01
Lundin Mining Corporation	1.98
Smiths Group plc	1.97
SAP SE	1.96
American International Group Incorporated	1.80
Coca-Cola East Japan Company Limited	1.79

Ten largest short position holdings (%) as of June 30,  20167
iShares MSCI EAFE ETF	(1.90)
Nestle SA	(1.60)
Unilever NV	(1.19)
iShares MSCI Switzerland Capped ETF	(1.12)
Wisdomtree Japan Hedged Equity ETF	(1.11)
Schindler Holding AG	(1.04)
iShares MSCI Thailand Capped ETF	(1.01)
Ashmore Group plc	(1.00)
iShares MSCI Philippines ETF	(0.73)
Peugeot SA	(0.68)

Strong performance from international equity markets in the U.K. and China and hedges in Japan, non-Japan Asia, Europe, and Canada helped add to overall returns. Performance of those positions was notably enhanced by net long exposure in individual stocks that are consumption and financial reform beneficiaries as well as self-help restructuring-oriented developments. Top-performing long positions included Rheinmetall AG in Germany; Alphabet Incorporated in the U.S.; Daiwa House Industry Company, Limited, Coca-Cola East Japan Company, Limited, in Japan; and Xinyi Glass Holdings Limited in China. Top-performing stock shorts included a French automaker, a Swedish consumer discretionary

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Global Long/Short Fund 7

investment, a Japanese department store, and an unrelated trading company, as well as a U.S. asset manager. These gains were more than offset by losses from longs in Nomura Holdings, Incorporated; Mitsubishi UFJ Financial Group, Incorporated; Volkswagen AG; Hitachi, Limited; and China Everbright Limited, while losses from shorts were limited, largely composed of diversified shorts in expensive and vulnerable European and Japanese staples stocks.

Difficult performance during the past two quarters was exacerbated by extreme liquidations of Japanese equities during the first quarter of 2016 as investors grappled with the implications of negative interest rates for financial services industry profitability and a surprise U.K. referendum voting in favor of exiting the European Union (E.U.) during the second quarter of 2016. We expect this volatility to create long and short opportunities for us globally.

Sector allocation as of June 30, 20168
	Gross exposure(%)		Net exposure(%)
Consumer Discretionary		8		7
Consumer Staples		18		17
Energy		4		5
Financials		25		30
Health Care		3		4
Industrials		19		22
Information Technology		11		14
Materials		6		8
Telecommunication Services		6		8
Other		0		(15)
		100		100

Country allocation as of June 30, 20168
	Gross exposure(%)		Net exposure(%)
Canada		4		6
China		9		12
France		4		4
Germany		10		13
Hong Kong		1		2
Italy		6		8
Japan		18		21
Netherlands		7		6
Philippines		0		(1)
South Korea		2		3
Switzerland		3		(1)
Thailand		0		(1)
United Kingdom		12		13
United States		24		15
		100		100

Divergences in economies and markets create equity investment opportunities.

As we look forward at risks and opportunities, we continue to witness wide divergences in regional and national economies and policymaker actions as well as corporate prospects in an environment of increased differentiation between public equities within sectors and regions. In the U.K., Europe, China/Hong Kong, and Japan markets, there is a growing gulf separating reform-minded and shareholder-sensitive companies from other companies that we view as being in secular decline. In developed markets, a number of firms continue to stand out positively for their self-imposed restructurings and efforts to enhance profitability, while others are more challenged, unable to confront adverse headwinds from more competitive markets and/or moderating business trends.

We expect sustained volatility attributable to instability in the E.U.’s efforts to manage the economic and monetary union, China’s ability to gradually experiment with and progress toward a more market-oriented financial market, and Japan’s efforts to reflate its domestic economy to create additional long and short opportunities. In our view, a ready European Central Bank focused on helping contain credit risks arising from apparently intractable negotiations between Greece and its creditors; Chinese central authorities committed to easing the strains of deleveraging by promoting domestic consumption and financial reforms; and Japanese officials coordinating monetary, fiscal, and structural reform efforts to positively stimulate local investor sentiment all will provide the macro backdrop for continued market volatility that may reward fundamental stock pickers who can distinguish between fair market values and true micro fundamentals.

Please see footnotes on page 5.

8 Wells Fargo Global Long/Short Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2016 to June 30, 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.

	Beginning account value 1-1-2016		Ending account value 6-30-2016		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	953.17	$	12.57		2.59	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,011.99	$	12.95		2.59	%
Class C
Actual	$	1,000.00	$	949.69	$	16.13		3.33	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,008.31	$	16.62		3.33	%
Administrator Class
Actual	$	1,000.00	$	953.27	$	12.09		2.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,012.49	$	12.46		2.49	%
Institutional Class
Actual	$	1,000.00	$	955.35	$	11.13		2.29	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,013.48	$	11.46		2.29	%

¹ Expenses paid is equal to the annualized expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).

Portfolio of investments—June 30, 2016 Wells Fargo Global Long/Short Fund 9

Security name	Shares		Value
Common Stocks: 57.24%
Brazil: 0.09%
Cosan Limited Class A (Energy, Oil, Gas & Consumable Fuels)		1,386	$	9,023
Canada: 2.82%
Cameco Corporation (Energy, Oil, Gas & Consumable Fuels)		7,366		80,805
Lundin Mining Corporation (Materials, Metals & Mining) †		56,477		190,595
				271,400
China: 5.23%
China Everbright Limited (Financials, Capital Markets)		40,000		77,613
China Mobile Limited (Telecommunication Services, Wireless Telecommunication Services)		12,500		144,428
Dongfeng Motor Group Company Limited H Shares (Consumer Discretionary, Automobiles)		80,000		84,324
Industrial & Commercial Bank of China Limited H Shares (Financials, Banks)		163,000		90,900
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health Care, Health Care Providers & Services)		26,700		59,204
YY Incorporated (Information Technology, Internet Software & Services) †		1,377		46,639
				503,108
France: 2.45%
Compagnie de Saint-Gobain SA (Industrials, Building Products)		6,224		235,924
German : 6.54%
Metro AG (Consumer Staples, Food & Staples Retailing)		4,629		142,370
Rheinmetall AG (Industrials, Industrial Conglomerates)		2,155		128,177
SAP SE (Information Technology, Software)		2,512		188,664
Siemens AG (Industrials, Industrial Conglomerates)		1,655		169,838
				629,049
Hong Kong: 0.83%
Xinyi Glass Holdings Limited (Consumer Discretionary, Auto Components)		102,000		75,449
Xinyi Automobile Glass Hong Kong Enterprises Incorporated (Consumer Discretionary, Auto Components) †(a)		12,750		4,593
				80,042
Italy: 4.14%
ANIMA Holding SpA (Financials, Capital Markets) 144A		16,981		80,058
Eni SpA (Energy, Oil, Gas & Consumable Fuels)		10,356		166,806
Prysmian SpA (Industrials, Electrical Equipment)		6,920		151,888
				398,752
Japan: 12.04%
Coca-Cola East Japan Company Limited (Consumer Staples, Beverages)		9,000		172,256
Daiwa House Industry Company Limited (Financials, Real Estate Management & Development)		4,000		117,468
Daiwa Securities Group Incorporated (Financials, Capital Markets)		28,000		147,514
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components)		41,000		171,784
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks)		48,500		217,418
Mitsui Fudosan Company Limited (Financials, Real Estate Management & Development)		7,000		160,655
Nomura Holdings Incorporated (Financials, Capital Markets)		42,100		149,731
West Holdings Corporation (Consumer Discretionary, Household Durables)		3,600		21,904
				1,158,730

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo Global Long/Short Fund Portfolio of investments—June 30, 2016

Security name						Shares			Value
Netherlands: 4.35%
Akzo Nobel NV (Materials, Chemicals)							3,128		$	194,314
Koninklijke Philips NV (Industrials, Industrial Conglomerates)							3,847			95,545
NN Group NV (Financials, Insurance)							4,690			129,108
										418,967
South Korea: 1.42%
Hana Financial Group Incorporated (Financials, Banks)							6,726			136,745
Switzerland: 1.94%
ABB Limited (Industrials, Electrical Equipment)							4,672			92,644
Zurich Insurance Group AG (Financials, Insurance)							382			94,500
										187,144
United Kingdom: 7.52%
Capita plc (Industrials, Professional Services)							5,471			70,497
Smiths Group plc (Industrials, Industrial Conglomerates)							12,262			189,487
United Business Media plc (Consumer Discretionary, Media)							17,915			153,641
Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services)							81,543			248,613
Wolseley plc (Industrials, Trading Companies & Distributors)							1,181			61,156
										723,394
United States: 7.87%
Agilent Technologies Incorporated (Health Care, Life Sciences Tools & Services)							1,574			69,823
Alphabet Incorporated Class C (Information Technology, Internet Software & Services) †							279			193,096
American International Group Incorporated (Financials, Insurance)							3,278			173,373
Apple Incorporated (Information Technology, Technology Hardware, Storage & Peripherals)							971			92,828
Coach Incorporated (Consumer Discretionary, Textiles, Apparel & Luxury Goods)							3,364			137,049
Mead Johnson Nutrition Company (Consumer Staples, Food Products)							314			28,496
Merck & Company Incorporated (Health Care, Pharmaceuticals)							1,087			62,622
										757,287
Total Common Stocks (Cost $6,185,967)										5,509,565
				Expiration date
Participation Notes: 0.95%
China: 0.95%
HSBC Bank plc (Kweichow Moutai Company Limited Class A) (Consumer Staples, Beverages) †					12/4/2024		2,090			91,835
Total Participation Notes (Cost $53,236)										91,835
	Yield
Short-Term Investments: 39.23%
Investment Companies: 39.23%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.31	%				3,775,913			3,775,913
Total Short-Term Investments (Cost $3,775,913)										3,775,913
Securities Sold Short: (15.72%)
Common Stocks: (8.28%)
France: (0.68%)
Peugeot SA (Consumer Discretionary, Automobiles)							(5,489	)		(65,792	)

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—June 30, 2016 Wells Fargo Global Long/Short Fund 11

Security name	Shares			Value
Japan: (1.74%)
Isetan Mitsukoshi Holdings Limited (Consumer Discretionary, Multiline Retail)		(1,200	)	$	(10,681	)
Lawson Incorporated (Consumer Staples, Food & Staples Retailing)		(750	)		(59,876	)
Marubeni Corporation (Industrials, Industrial Conglomerates)		(5,500	)		(24,848	)
McDonalds Holdings Company (Consumer Discretionary, Hotels, Restaurants & Leisure)		(1,000	)		(27,163	)
Odakyu Electric Railway Company (Industrials, Road & Rail)		(2,000	)		(23,452	)
Takashimaya Company Limited (Consumer Discretionary, Multiline Retail)		(3,000	)		(21,488	)
					(167,508	)
Netherlands: (1.19%)
Unilever NV (Consumer Staples, Household Products)		(2,453	)		(114,088	)
Philippines: (0.27%)
Philippine Long Distance Telephone Company SP ADR (Telecommunication Services, Diversified Telecommunication Services)		(580	)		(25,851	)
Switzerland: (2.64%)
Nestle SA (Consumer Staples, Food Products)		(1,986	)		(153,872	)
Schindler Holding AG (Industrials, Machinery)		(553	)		(100,119	)
					(253,991	)
Thailand: (0.32%)
Charoen Pokphand Foods PCL (Consumer Staples, Food & Staples Retailing)		(37,300	)		(30,517	)
United Kingdom: (1.00%)
Ashmore Group plc (Financials, Diversified Financial Services)		(24,122	)		(96,046	)
United States: (0.45%)
Eaton Vance Corporation (Financials, Diversified Financial Services)		(1,018	)		(35,976	)
Franklin Resources Incorporated (Financials, Capital Markets)		(208	)		(6,941	)
					(42,917	)
Exchange-Traded Funds: (7.44%)
United States: (7.44%)
iShares Europe ETF		(1,470	)		(55,551	)
iShares MSCI EAFE ETF		(3,282	)		(183,168	)
iShares MSCI EMU ETF		(1,426	)		(46,017	)
iShares MSCI Philippines ETF		(1,782	)		(69,801	)
iShares MSCI Singapore ETF		(4,502	)		(48,937	)
iShares MSCI Switzerland Capped ETF		(3,633	)		(107,718	)
iShares MSCI Thailand Capped ETF		(1,414	)		(97,439	)
Wisdomtree Japan Hedged Equity ETF		(2,762	)		(107,110	)
					(715,741	)
Total Securities Sold Short (Proceeds $(1,637,253))					(1,512,451	)

Total investments in securities (excluding securities sold short) (Cost $10,015,116) *	97.42	%		9,377,313
Total securities sold short (Proceeds ($1,637,253))	(15.71	)		(1,512,451	)
Other assets and liabilities, net	18.29			1,760,929
Total net assets	100.00	%	$	9,625,791

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo Global Long/Short Fund Portfolio of investments—June 30, 2016

† Non-income-earning security

(a) The security is fair valued in accordance with procedures approved by the Board of Trustees.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

* Cost for federal income tax purposes is $10,015,659 and unrealized gains (losses) consists of:

Gross unrealized gains	$	214,356
Gross unrealized losses		(852,702	)
Net unrealized losses	$	(638,346	)

The accompanying notes are an integral part of these financial statements.

Statement of assets and liabilities—June 30, 2016 Wells Fargo Global Long/Short Fund 13

Assets
Investments
In unaffiliated securities, at value (cost $6,239,203)	$	5,601,400
In affiliated securities, at value (cost $3,775,913)		3,775,913
Total investments, at value (cost $10,015,116)		9,377,313
Cash		5,069
Segregated cash for securities sold short		1,678,113
Foreign currency, at value (cost $11,661)		11,629
Receivable for investments sold		3,010
Receivable for dividends		42,340
Unrealized gains on forward foreign currency contracts		32,590
Receivable from manager		7,097
Prepaid expenses and other assets		25,634
Total assets		11,182,795
Liabilities
Dividends payable on securities sold short		37
Payable for Fund shares redeemed		23,145
Payable for securities sold short, at value (proceeds $1,637,253)		1,512,451
Distribution fee payable		84
Administration fees payable		1,077
Accrued expenses and other liabilities		20,210
Total liabilities		1,557,004
Total net assets	$	9,625,791
NET ASSETS CONSIST OF
Paid-in capital	$	10,472,887
Accumulated net investment loss		(32,929	)
Accumulated net realized losses on investments		(333,197	)
Net unrealized losses on investments		(480,970	)
Total net assets	$	9,625,791
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	354,979
Shares outstanding – Class A1		38,741
Net asset value per share – Class A		$9.16
Maximum offering price per share – Class A2		$9.72
Net assets – Class C	$	135,004
Shares outstanding – Class C1		14,905
Net asset value per share – Class C		$9.06
Net assets – Administrator Class	$	92,880
Shares outstanding – Administrator Class1		10,114
Net asset value per share – Administrator Class		$9.18
Net assets – Institutional Class	$	9,042,928
Shares outstanding – Institutional Class1		983,181
Net asset value per share – Institutional Class		$9.20

¹ The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo Global Long/Short Fund Statement of operations—year ended June 30, 2016

Investment income
Dividends (net of foreign withholding taxes of $12,997)	$	178,812
Income from affiliated securities		11,466
Total investment income		190,278
Expenses
Management fee		130,120
Administration fees
Class A		722
Class C		296
Administrator Class		126
Institutional Class		12,256
Shareholder servicing fees
Class A		860
Class C		353
Administrator Class		242
Distribution fee
Class C		1,058
Custody and accounting fees		23,273
Professional fees		56,940
Registration fees		81,196
Shareholder report expenses		32,415
Trustees’ fees and expenses		20,658
Dividends on securities sold short		47,375
Prime broker fees		23,191
Other fees and expenses		14,642
Total expenses		445,723
Less: Fee waivers and/or expense reimbursements		(227,317	)
Net expenses		218,406
Net investment loss		(28,128	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(403,981	)
Securities sold short		100,925
Forward foreign currency contract transactions		(35,630	)
Written options		(25,240	)
Net realized losses on investments		(363,926	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(920,900	)
Securities sold short		165,154
Forward foreign currency contract transactions		61,402
Net change in unrealized gains (losses) on investments		(694,344	)
Net realized and unrealized gains (losses) on investments		(1,058,270	)
Net decrease in net assets resulting from operations	$	(1,086,398	)

The accompanying notes are an integral part of these financial statements.

Statement of changes in net assets Wells Fargo Global Long/Short Fund 15

	Year ended June 30, 2016						Year ended June 30, 20151
Operations
Net investment loss				$	(28,128	)				$	(38,262	)
Net realized gains (losses) on investments					(363,926	)					192,602
Net change in unrealized gains (losses) on investments					(694,344	)					213,374
Net increase (decrease) in net assets resulting from operations					(1,086,398	)					367,714
Distributions to shareholders from
Net investment income
Class A					(499	)					0
Administrator Class					(76	)					0
Institutional Class					(23,095	)					0
Net realized gains
Class A					(3,385	)					0
Class C					(1,461	)					0
Administrator Class					(1,017	)					0
Institutional Class					(98,879	)					0
Total distributions to shareholders					(128,412	)					0
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		14,706			143,822			29,360			299,099
Class C		3,035			28,407			14,590			147,995
Administrator Class		0			0			10,965			110,000
Institutional Class		0			0			972,067			9,721,435
					172,229						10,278,529
Reinvestment of distributions
Class A		406			3,884			0			0
Class C		154			1,461			0			0
Administrator Class		114			1,093			0			0
Institutional Class		12,710			121,974			0			0
					128,412						0
Payment for shares redeemed
Class A		(4,908	)		(46,365	)		(823	)		(8,482	)
Class C		(2,874	)		(26,632	)		0			0
Administrator Class		0			0			(965	)		(10,106	)
Institutional Class		(1,596	)		(14,698	)		0			0
					(87,695	)					(18,588	)
Net increase in net assets resulting from capital share transactions					212,946						10,259,941
Total increase (decrease) in net assets					(1,001,864	)					10,627,655
Net assets
Beginning of period					10,627,655						0
End of period				$	9,625,791					$	10,627,655
Undistributed (accumulated) net investment income (loss)				$	(32,929	)				$	56,021

¹  For the period from November 28, 2014 (commencement of operations) to June 30, 2015

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo Global Long/Short Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
CLASS A	2016			20151
Net asset value, beginning of period		$10.35			$10.00
Net investment loss		(0.04	)		(0.04	)2
Net realized and unrealized gains (losses) on investments		(1.04	)		0.39
Total from investment operations		(1.08	)		0.35
Distributions to shareholders from
Net investment income		(0.01	)		0.00
Net realized gains		(0.10	)		0.00
Total distributions to shareholders		(0.11	)		0.00
Net asset value, end of period		$9.16			$10.35
Total return3		(10.43	)%		3.50	%
Ratios to average net assets (annualized)
Gross expenses		4.77	%4		5.40	%4
Net expenses		2.47	%4		2.96	%4
Net investment loss		(0.41	)%		(0.59	)%
Supplemental data
Portfolio turnover rate		37	%		62	%
Net assets, end of period (000s omitted)		$355			$295

¹  For the period from November 28, 2014 (commencement of class operations) to June 30, 2015.

²  Calculated based upon average shares outstanding.

³  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

⁴  Ratios include fees for the prime broker and expense from dividends on securities sold short as follows:

Year ended June 30, 2016	0.72	%
Year ended June 30, 20151	1.21	%

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Global Long/Short Fund 17

(For a share outstanding throughout each period)

	Year ended June 30
CLASS C	2016			20151
Net asset value, beginning of period		$10.31			$10.00
Net investment loss		(0.12	)		(0.07	)
Net realized and unrealized gains (losses) on investments		(1.03	)		0.38
Total from investment operations		(1.15	)		0.31
Distributions to shareholders from
Net realized gains		(0.10	)		0.00
Net asset value, end of period		$9.06			$10.31
Total return2		(11.18	)%		3.10	%
Ratios to average net assets (annualized)
Gross expenses		5.50	%3		6.12	%3
Net expenses		3.20	%3		3.54	%3
Net investment loss		(1.24	)%		(1.64	)%
Supplemental data
Portfolio turnover rate		37	%		62	%
Net assets, end of period (000s omitted)		$135			$150

¹  For the period from November 28, 2014 (commencement of class operations) to June 30, 2015.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Ratios include fees for the prime broker and expense from dividends on securities sold short as follows:

Year ended June 30, 2016	0.70	%
Year ended June 30, 20151	1.04	%

The accompanying notes are an integral part of these financial statements.

18 Wells Fargo Global Long/Short Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended June 30
ADMINISTRATOR CLASS	2016			20151
Net asset value, beginning of period		$10.36			$10.00
Net investment loss		(0.04	)		(0.05	)
Net realized and unrealized gains (losses) on investments		(1.03	)		0.41
Total from investment operations		(1.07	)		0.36
Distributions to shareholders from
Net investment income		(0.01	)		0.00
Net realized gains		(0.10	)		0.00
Total distributions to shareholders		(0.11	)		0.00
Net asset value, end of period		$9.18			$10.36
Total return2		(10.38	)%		3.60	%
Ratios to average net assets (annualized)
Gross expenses		4.68	%3		5.22	%3
Net expenses		2.35	%3		2.70	%3
Net investment loss		(0.40	)%		(0.83	)%
Supplemental data
Portfolio turnover rate		37	%		62	%
Net assets, end of period (000s omitted)		$93			$104

¹  For the period from November 28, 2014 (commencement of class operations) to June 30, 2015.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Ratios include fees for the prime broker and expense from dividends on securities sold short as follows:

Year ended June 30, 2016	0.70	%
Year ended June 30, 20151	1.05	%

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Global Long/Short Fund 19

(For a share outstanding throughout each period)

	Year ended June 30
INSTITUTIONAL CLASS	2016			20151
Net asset value, beginning of period		$10.37			$10.00
Net investment loss		(0.02	)		(0.04	)
Net realized and unrealized gains (losses) on investments		(1.03	)		0.41
Total from investment operations		(1.05	)		0.37
Distributions to shareholders from
Net investment income		(0.02	)		0.00
Net realized gains		(0.10	)		0.00
Total distributions to shareholders		(0.12	)		0.00
Net asset value, end of period		$9.20			$10.37
Total return2		(10.12	)%		3.70	%
Ratios to average net assets (annualized)
Gross expenses		4.42	%3		4.95	%3
Net expenses		2.15	%3		2.49	%3
Net investment loss		(0.20	)%		(0.63	)%
Supplemental data
Portfolio turnover rate		37	%		62	%
Net assets, end of period (000s omitted)		$9,043			$10,078

¹  For the period from November 28, 2014 (commencement of class operations) to June 30, 2015.

²  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

³  Ratios include fees for the prime broker and expense from dividends on securities sold short as follows:

Year ended June 30, 2016	0.70	%
Year ended June 30, 20151	1.04	%

The accompanying notes are an integral part of these financial statements.

20 Wells Fargo Global Long/Short Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Global Long/Short Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although a Fund may deviate from this calculation time under unusual or unexpected circumstances.

Equity securities and options that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the 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 Fund’s Valuation Procedures.

Non-listed options are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team 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 Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On June 30, 2016, such fair value pricing was used in pricing foreign securities.

Investments in registered open-end investment companies are valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the manager and/or subadviser. Unobservable inputs

Notes to financial statements Wells Fargo Global Long/Short Fund 21

used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Forward foreign currency contracts

The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objectives. A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contract transactions. The Fund could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.

Options

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.

The Fund may also purchase call or put options. The premium is included in the Statement of Assets and Liabilities as an investment, the value of which is subsequently adjusted based on the current market value of the option. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.

Options traded on an exchange are regulated and terms of the options are standardized. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

Short sales

The Fund may sell a security it does not own in anticipation of a decline in the market value of that security (short sale). When the Fund makes a short sale, it must borrow the security sold short and deliver it to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement.

The Fund records the proceeds as a liability which is marked-to-market daily based upon quotations from an independent pricing service or from brokers, which use prices provided by market makers, and any change in value is

22 Wells Fargo Global Long/Short Fund Notes to financial statements

recorded as an unrealized gain or loss. Any interest or dividends accrued on such borrowed securities during the period of the loan are recorded as an expense on the Statement of Operations. To borrow the security, the Fund may be required to pay a premium, which would decrease the proceeds of the security sold. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the closing of a short sale if the market price at the closing is less than or greater than, respectively, the proceeds originally received. Until the short sale is closed or the borrowed security is replaced, the Fund maintains a segregated account of cash or liquid securities, the dollar value of which is at least equal to the market value of the security at the time of the short sale.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

The Fund intends to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the fiscal years since commencement of operations 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 2014, the year the Fund commenced operations.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to foreign currency transactions and recognition of partnership income. At June 30, 2016, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Accumulated net investment loss	Accumulated net realized losses on investments
$(37,152)	$37,152

As of June 30, 2016, the Fund had capital loss carryforwards which consist of $97,711 in short-term capital losses and $234,944 in long-term capital losses.

As of June 30, 2016, the Fund had a qualified late-year ordinary loss of $325 which will be recognized on the first day of the following fiscal year.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy

Notes to financial statements Wells Fargo Global Long/Short Fund 23

gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

n Level 1 – quoted prices in active markets for identical securities

n Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Brazil	$	9,023	$	0	$	0	$	9,023
Canada		271,400		0		0		271,400
China		46,639		456,469		0		503,108
France		0		235,924		0		235,924
Germany		0		629,049		0		629,049
Hong Kong		0		80,042		0		80,042
Italy		0		398,752		0		398,752
Japan		0		1,158,730		0		1,158,730
Netherlands		0		418,967		0		418,967
South Korea		0		136,745		0		136,745
Switzerland		0		187,144		0		187,144
United Kingdom		0		723,394		0		723,394
United States		757,287		0		0		757,287
Participation Notes
China		0		91,835		0		91,835
Short-term investments
Investment companies		3,775,913		0		0		3,775,913
		4,860,262		4,517,051		0		9,377,313
Forward foreign currency contracts		0		32,590		0		32,590
Total assets	$	4,860,262	$	4,549,641	$	0	$	9,409,903
Liabilities
Securities sold short
Common stocks
France	$	0	$	65,792	$	0	$	65,792
Japan		0		167,508		0		167,508
Netherlands		114,088		0		0		114,088
Philippines		25,851		0		0		25,851
Switzerland		0		253,991		0		253,991
Thailand		30,517		0		0		30,517
United Kingdom		0		96,046		0		96,046
United States		42,917		0		0		42,917
Exchange-traded funds
United States		715,741		0		0		715,741
Total liabilities	$	929,114	$	583,337	$	0	$	1,512,451

24 Wells Fargo Global Long/Short Fund Notes to financial statements

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At June 30, 2016, fair value pricing was used in pricing certain foreign securities in long positions valued at $3,719,012 and securities in short positions valued at $487,291 were transferred from Level 1 to Level 2 within the fair value hierarchy. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 1.30% and declining to 1.13% as the average daily net assets of the Fund increase. For the year ended June 30, 2016, the management fee was equivalent to an annual rate of 1.30% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 1.00% and declining to 0.90% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:

	Class-level administration fee
Class A, Class C		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through October 31, 2016 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.75% for Class A shares, 2.50% for Class C shares, 1.65% for Administrator Class shares and 1.45% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prime broker fees and dividend expense on securities sold short are excluded from the expense caps.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended June 30, 2016, Funds Distributor received $72 from the sale of Class A shares.

Notes to financial statements Wells Fargo Global Long/Short Fund 25

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2016 were $3,743,067 and $2,811,857, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which generally do not incur broker commissions, are effected at current market prices. Interfund trades are included within the respective purchases and sales amounts shown.

6. DERIVATIVE TRANSACTIONS

During the year ended June 30, 2016, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At June 30, 2016, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver		U.S. value at June 30, 2016		In exchange for U.S. $		Unrealized gains
7-25-2016	Morgan Stanley		11,900 GBP	$	15,844	$	17,497	$	1,653
7-25-2016	Morgan Stanley		11,900 GBP		15,844		17,378		1,534
7-25-2016	Morgan Stanley		11,900 GBP		15,844		17,259		1,415
7-25-2016	Morgan Stanley		11,900 GBP		15,844		17,140		1,296
8-31-2016	Morgan Stanley		269,000 EUR		299,124		301,143		2,019
9-15-2016	Credit Suisse		100,300 EUR		111,596		113,563		1,967
9-22-2016	Morgan Stanley		165,600 GBP		220,621		243,327		22,706

The Fund had average contract amounts of $361,247 and $1,246,653 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the year ended June 30, 2016.

During the year ended June 30, 2016, the Fund entered into written options for economic hedging purposes.

During the year ended June 30, 2016, the Fund had written call option activities as follows:

	Number of contracts			Premiums received
Options outstanding at June 30, 2015		0		$	0
Options written		20			4,391
Options expired		(20	)		(4,391	)
Options terminated in closing purchase transactions		0			0
Options exercised		0			0
Options outstanding at June 30, 2016		0		$	0

As of June 30, 2016, the Fund did not have any open written options. The Fund had an average of 6 written option contracts during the year ended June 30, 2016.

During the year ended June 30, 2016, the Fund entered into purchased options contracts for speculative purposes and had an average of 12 purchased options contracts.

The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the appropriate financial statements.

26 Wells Fargo Global Long/Short Fund Notes to financial statements

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities			Amounts subject to netting agreements		Collateral received		Net amount of assets
Forward foreign currency contracts	Morgan Stanley	$	30,623	*	$	0	$	0	$	30,623
	Credit Suisse		1,967	*		0		0		1,967

* Amount represents net unrealized gains.

7. BANK BORROWINGS

The Fund has an uncommitted credit facility to provide leverage for investment purposes or to meet unanticipated redemptions. The Fund’s borrowings under the Facility are charged at a rate to be determined at the time of the borrowing.

For the year ended June 30, 2016, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid for the year ended June 30, 2016 was $128,412 of ordinary income. For the year ended June 30, 2015, the Fund did not pay any distributions to shareholders.

As of June 30, 2016, the components of distributable earnings on a tax basis were as follows:

Unrealized losses	Late-year ordinary losses deferred	Capital loss carryforward
$(514,116)	$(325)	$(332,655)

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

Report of independent registered public accounting firm Wells Fargo Global Long/Short Fund 27

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Global Long/Short Fund (formerly known as Wells Fargo Advantage Global Long/Short Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended and the statements of changes in net assets and financial highlights for the year then ended and the period from November 28, 2014 (commencement of operations) to June 30, 2015. 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 June 30, 2016, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Global Long/Short Fund as of June 30, 2016, and the results of its operations for the year then ended and the changes in its net assets and the financial highlights for the year then ended and the period from November 28, 2014 (commencement of operations) to June 30, 2015, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

28 Wells Fargo Global Long/Short Fund Other information (unaudited)

TAX INFORMATION

Pursuant to Section 854 of the Internal Revenue Code, $100,755 of income dividends paid during the fiscal year ended June 30, 2016 has been designated as qualified dividend income (QDI).

For the fiscal year ended June 30, 2016, $285 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended June 30, 2016, $104,739 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Global Long/Short Fund 29

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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

30 Wells Fargo Global Long/Short Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 2010	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust

* 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 Global Long/Short Fund 31

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment 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 Wells Fargo Global Long/Short Fund (the “Fund”): (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 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.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2015. The Board 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 Fund (the “Universe”), and in comparison to the 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.

32 Wells Fargo Global Long/Short Fund Other information (unaudited)

The Board noted that the performance of the Fund (Administrator Class A) was lower than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was lower than its benchmark, the Global Long/Short Composite Index, for all periods under review. The Board noted the short performance history of the Fund.

The Board also received and considered information regarding the 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 in comparison to the median ratios of funds in class-specific 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 the net operating expense ratios of the Fund were lower than or equal to the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.

Investment management and sub-advisory fee rates

The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the 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 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 Fund’s 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 Fund were higher than the sum of these average rates for the Fund’s expense Groups for all share classes except Institutional Class. The Board noted that the net operating expense ratios of the Fund were lower than or equal to the median net operating expense ratios of the expense Groups.

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 fees between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo 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 Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Other information (unaudited) Wells Fargo Global Long/Short Fund 33

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory 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.

34 Wells Fargo Global Long/Short Fund List of abbreviations

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargofunds.com. Read the prospectus carefully before you invest or send money.

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

244415 08-16 A268/AR268 6-16

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
	June 30, 2016		June 30, 2015
Audit fees	$	619,678	$	531,370
Audit-related fees		—		—
Tax fees (1)		37,755		31,680
All other fees		—		—
	$	657,433	$	563,050

⁽¹⁾  Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services for the mutual funds of Wells Fargo Funds Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(f) Not applicable

(g) Not applicable

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

Wells Fargo Intermediate Tax/AMT-Free Fund, Wells Fargo Municipal Bond Fund, and Wells Fargo Ultra Short-Term Municipal Income Fund included a Summary Portfolio of Investments under Item 1. A Portfolio of Investments for each of Wells Fargo Intermediate Tax/AMT-Free Fund, Wells Fargo Municipal Bond Fund, and Wells Fargo Ultra Short-Term Municipal Income Fund are filed under this Item.

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 101.06%
Alabama: 0.24%
Alabama Public School & College Authority Capital Improvement (Tax Revenue)		5.00	%		12-1-2017	$	2,640,000	$	2,802,809
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		3,325,000		3,557,916
									6,360,725
Alaska: 0.17%
Alaska Railroad Corporation Series A (Miscellaneous Revenue, National Insured)		5.00			8-1-2020		3,245,000		3,399,332
Valdez AK Marine Terminal BP Pipelines Project Series 2003B (Industrial Development Revenue)		5.00			1-1-2021		1,000,000		1,146,670
									4,546,002
Arizona: 1.50%
Arizona Refunding Certificate of Participation (Miscellaneous Revenue)		5.00			9-1-2027		3,040,000		3,852,926
Arizona Sports & Tourism Authority Series A (Tax Revenue)		4.00			7-1-2020		1,365,000		1,490,416
Arizona Sports & Tourism Authority Series A (Tax Revenue)		5.00			7-1-2021		795,000		917,009
Arizona Sports & Tourism Authority Series A (Tax Revenue)		5.00			7-1-2022		1,000,000		1,174,170
Greater Arizona Development Authority Infrastructure Pinal County Road Project Series 1 (Miscellaneous Revenue, National Insured)		4.50			8-1-2023		2,755,000		2,764,450
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		4.50			7-1-2024		1,575,000		1,895,544
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		4.50			7-1-2025		1,270,000		1,520,990
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		5.00			7-1-2027		420,000		522,585
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		5.50			7-1-2029		960,000		1,234,243
McAllister AZ Arizona State University Hassayampa Academic Village Project (Education Revenue) %%		5.00			7-1-2025		750,000		957,195
Mohave County AZ Kingman Unified School District #20 (GO Revenue, Build America Mutual Assurance Company Insured) %%		5.00			7-1-2024		4,000,000		4,900,840
Mohave County AZ Kingman Unified School District #20 (GO Revenue, Build America Mutual Assurance Company Insured) %%		5.00			7-1-2026		1,175,000		1,470,936
Phoenix AZ Civic Improvement Corporation Series A (Airport Revenue)		5.00			7-1-2029		5,000,000		5,711,950
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.00			7-1-2021		775,000		769,219
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		5,000,000		5,012,250
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2027		450,000		556,128
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2028		700,000		862,449
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2034		3,680,000		4,447,317
									40,060,617
California: 10.03%
Acalanes CA Union High School District Refunding Bonds (GO Revenue)		5.00			8-1-2017		2,070,000		2,169,567
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		4,220,000		4,141,086
Alameda CA Corridor Transportation Authority CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		1,350,000		1,310,864
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2039		2,500,000		3,053,575

2 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Bay Area CA Toll Authority Series A (Transportation Revenue) ±		1.66	%		4-1-2036	$	20,000,000	$	19,757,800
California (GO Revenue)		5.25			3-1-2024		5,000,000		5,816,750
California (GO Revenue)		5.25			3-1-2030		1,440,000		1,673,525
California (GO Revenue)		6.00			3-1-2033		2,510,000		2,979,998
California Municipal Finance Authority (Utilities Revenue)		5.00			10-1-2025		1,500,000		1,970,115
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.59			8-1-2027		14,975,000		14,975,000
California PFOTER Series DCL-010 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.59			8-1-2027		7,825,000		7,825,000
California PFOTER Series DCL-011 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.59			8-1-2027		5,975,000		5,975,000
California Public Works Board Department of Corrections Project Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2019		1,990,000		2,142,971
California Public Works Board Department of General Services Buildings 8 & 9A (Miscellaneous Revenue)		6.25			4-1-2034		2,750,000		3,192,035
California Public Works Board Various Judicial Council Project Series D (Miscellaneous Revenue)		5.25			12-1-2026		1,000,000		1,211,880
California Public Works University of California Board of Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		12,110,000		14,668,480
California Statewide CDA Series A (Education Revenue)		6.90			8-1-2031		1,915,000		2,221,477
California Statewide CDA Series C (Health Revenue)		5.25			8-15-2031		3,000,000		3,582,360
California Various Purposes (GO Revenue)		6.00			4-1-2038		8,055,000		9,189,547
Cerritos CA Community College District Series D (GO Revenue) ¤		0.00			8-1-2025		1,800,000		1,482,804
Chino Basin CA Desalter Authority Series A (Water & Sewer Revenue) %%		4.00			6-1-2028		2,000,000		2,375,380
Compton CA Community College District Election of 2002 CAB Series C (GO Revenue) ¤		0.00			8-1-2029		1,565,000		1,022,508
Compton CA Community College District Election of 2002 CAB Series C (GO Revenue) ¤		0.00			8-1-2031		2,400,000		1,417,728
El Monte CA Union High School District (GO Revenue)		5.00			6-1-2019		1,490,000		1,671,363
El Monte CA Union High School District (GO Revenue)		5.00			6-1-2020		2,000,000		2,314,580
Emery CA Unified School District Election of 2010 Series A (GO Revenue, AGM Insured)		6.25			8-1-2031		4,500,000		5,605,560
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		7.00			11-1-2034		2,000,000		3,118,100
M-S-R California Energy Authority Gas Series C (Utilities Revenue)		7.00			11-1-2034		3,000,000		4,677,150
New Haven CA Unified School District CAB Project (GO Revenue, AGC Insured) ¤		0.00			8-1-2033		5,590,000		3,424,546
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.14			7-1-2027		10,000,000		9,123,100
Northern California Power Agency Series A (Utilities Revenue)		5.25			8-1-2023		5,150,000		5,931,873
Northern Humboldt CA High School District Election of 2010 Series A (GO Revenue)		6.50			8-1-2034		1,145,000		1,439,025
Oakland CA Unified School District Alameda County Election of 2006 Series A (GO Revenue)		6.50			8-1-2020		1,730,000		1,998,859
Oakland CA Unified School District Alameda County Election of 2009 Series A (GO Revenue)		6.25			8-1-2019		1,285,000		1,468,871
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		6.25			8-1-2028		2,000,000		2,451,860
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		6.25			8-1-2030		2,000,000		2,435,120
Oxnard CA School District Series A (GO Revenue, National Insured)		5.75			8-1-2030		1,825,000		2,287,583
Pasadena CA PFA Rose Bowl Renovation Series A (Miscellaneous Revenue)		5.00			3-1-2021		1,655,000		1,940,322
Patterson CA Unified School District CAB Election of 2008 Project Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2033		3,000,000		1,788,570
Peralta CA Community College District Alameda County (GO Revenue)		5.00			8-1-2023		3,045,000		3,782,255
Peralta CA Community College District Alameda County (GO Revenue)		5.00			8-1-2024		3,000,000		3,712,980
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		2,700,000		3,094,929

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Rio Hondo CA Community College District (GO Revenue) ¤		0.00	%		8-1-2030	$	2,315,000	$	1,547,462
Sacramento CA Airport Systems (Airport Revenue)		5.00			7-1-2025		2,000,000		2,290,240
Sacramento CA Municipal Utility District Series B (Utilities Revenue)		5.00			8-15-2030		1,075,000		1,331,613
San Diego CA Community College District Election of 2012 (GO Revenue)		5.00			8-1-2032		3,095,000		3,839,378
San Diego CA PFFA Capital Improvement Projects Series B (Miscellaneous Revenue)		5.00			10-15-2027		500,000		638,420
San Diego CA PFFA Capital Improvement Projects Series B (Miscellaneous Revenue)		5.00			10-15-2028		1,000,000		1,272,490
San Diego CA Unified School District Election of 1998 Series E-2 (GO Revenue, AGM Insured)		5.50			7-1-2027		5,000,000		6,857,250
San Gorgonio CA Memorial Healthcare District (GO Revenue)		7.00			8-1-2029		2,000,000		2,140,620
San Jose CA Libraries & Parks Project (GO Revenue)		5.13			9-1-2031		6,110,000		6,134,746
San Jose CA MFHR Casa Del Pueblo Apartments Project Series D (Housing Revenue) ±		0.95			12-1-2017		10,000,000		10,003,100
San Jose CA Redevelopment Agency Series A-1 (Tax Revenue)		5.50			8-1-2030		1,355,000		1,560,052
Santa Ana CA Financing Authority Police Administration and Holding Facilities Prerefunded Balance (Miscellaneous Revenue, National Insured)		6.25			7-1-2019		500,000		579,075
Santa Ana CA Financing Authority Police Administration and Holding Facilities Unrefunded Balance (Miscellaneous Revenue, National Insured)		6.25			7-1-2019		500,000		574,730
Southern California Public Power Authority Milford Wind Corridor Project #1 (Utilities Revenue)		5.00			7-1-2024		5,000,000		5,698,800
Southern California Public Power Authority Southern Transmission Project Series S (Utilities Revenue)		5.75			7-1-2024		2,000,000		2,205,600
Sylvan CA Unified School District CAB Election of 2006 (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		2,590,000		1,672,518
Sylvan CA Unified School District CAB Election of 2006 (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		2,800,000		1,756,468
Tustin CA Unified School District #88-1 Election of 2008 Series B (GO Revenue)		6.00			8-1-2036		1,500,000		1,878,330
University of California Limited Project Series G (Education Revenue)		5.00			5-15-2037		10,390,000		12,274,019
University of California Medical Center Series J (Health Revenue)		5.25			5-15-2030		15,000,000		18,427,800
University of California Prerefunded Series Q (Education Revenue)		5.25			5-15-2024		2,090,000		2,197,029
University of California Unrefunded Series Q (Education Revenue)		5.25			5-15-2024		65,000		68,347
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2016		300,000		300,036
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2018		445,000		478,273
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2019		905,000		1,003,012
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2020		1,300,000		1,350,960
Washington Township CA Health Care District Series A (Health Revenue)		5.13			7-1-2017		260,000		270,356
West Contra Costa California Unified School District Election of 2005 Series C-1 (GO Revenue, AGC Insured) ¤		0.00			8-1-2026		4,620,000		3,660,149
									268,432,969
Colorado: 0.80%
Adams County CO Refunding & Improvement Certificate of Participation (Miscellaneous Revenue)		4.00			12-1-2018		500,000		537,820
Adams County CO Refunding & Improvement Certificate of Participation (Miscellaneous Revenue)		5.00			12-1-2021		830,000		993,552
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		5.50			10-1-2017		400,000		412,732
Colorado ECFA University of Denver Project (Education Revenue, National Insured)		5.25			3-1-2025		1,110,000		1,399,688
Colorado Springs CO Utilities System Sub Lien Improvement Series B (Utilities Revenue, Bayerische Landesbank SPA) ø		0.56			11-1-2036		12,000,000		12,000,000
Regents of the University of Colorado Certificate of Participation Series 2013A (Education Revenue)		5.00			11-1-2028		5,000,000		6,109,550
									21,453,342

4 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Connecticut: 3.00%
Connecticut Health & HEFAR Yale University Issue Series A (Education Revenue) ±		1.38	%		7-1-2035	$	10,000,000	$	10,119,300
Connecticut HEFA Yale University Series A (Education Revenue) ±%%		1.00			7-1-2042		25,000,000		25,072,500
Connecticut Series A (Miscellaneous Revenue) ±		1.26			3-1-2022		3,000,000		2,967,060
Connecticut Series A (Miscellaneous Revenue) ±		1.31			3-1-2023		3,000,000		2,952,840
Connecticut Series A (Miscellaneous Revenue) ±		1.36			3-1-2024		5,640,000		5,520,094
Connecticut Series A (Miscellaneous Revenue) ±		1.51			4-15-2019		2,300,000		2,313,662
Connecticut Series A (Miscellaneous Revenue) ±		1.66			4-15-2020		3,300,000		3,333,759
Connecticut Special Tax Obligation Bonds Transportation Infrastructure Purposes Series A (Tax Revenue)		5.00			8-1-2028		2,000,000		2,526,240
Connecticut Special Tax Obligation Bonds Transportation Infrastructure Purposes Series A (Tax Revenue)		5.00			8-1-2030		1,000,000		1,253,770
Hamden CT (GO Revenue)		4.00			8-15-2020		1,235,000		1,346,792
Hamden CT (GO Revenue)		4.00			8-15-2021		1,235,000		1,362,662
Hamden CT (GO Revenue, AGM Insured)		5.00			8-15-2021		1,000,000		1,171,760
Hamden CT (GO Revenue, AGM Insured)		5.00			8-15-2022		1,000,000		1,194,640
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			4-1-2022		3,010,000		3,539,068
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2026		1,000,000		1,228,950
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2028		1,265,000		1,557,506
Hartford CT Series C (GO Revenue, AGM Insured)		5.00			7-15-2022		2,320,000		2,743,446
University of Connecticut Series A (Education Revenue)		5.00			3-15-2027		1,000,000		1,264,700
University of Connecticut Series A (Education Revenue)		5.00			3-15-2028		2,000,000		2,516,120
University of Connecticut Series A (Education Revenue)		5.00			3-15-2031		3,000,000		3,739,500
University of Connecticut Series A (Education Revenue)		5.00			3-15-2032		2,000,000		2,481,140
									80,205,509
Delaware: 0.08%
Delaware EDA Odyssey Charter School Project Series B (Education Revenue) 144A		6.75			9-1-2035		2,000,000		2,069,980
District of Columbia: 0.56%
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.00			12-1-2023		1,000,000		1,211,210
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.00			12-1-2025		3,520,000		4,279,475
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.25			12-1-2025		2,630,000		3,094,563
District of Columbia Howard University Series A (Education Revenue)		5.75			10-1-2026		2,510,000		2,671,418
District of Columbia Medical Association of Colleges Series B (Miscellaneous Revenue)		5.00			10-1-2024		3,095,000		3,606,077
									14,862,743
Florida: 4.85%
Boynton Beach FL Utilities Systems (Water & Sewer Revenue, National Insured)		5.50			11-1-2016		1,500,000		1,523,340
Broward County FL School Board Certificate of Participation Series A (Miscellaneous Revenue)		5.00			7-1-2024		5,000,000		6,259,500
Cityplace Florida Community Development District Special Assessment (Miscellaneous Revenue)		5.00			5-1-2021		2,945,000		3,323,698
Daytona Beach FL Utility System (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2022		2,205,000		2,691,599
Duval County FL School Board Certificate of Participation Series B (Miscellaneous Revenue)		5.00			7-1-2028		2,500,000		3,111,625
Duval County FL School Board Certificate of Participation Series B (Miscellaneous Revenue)		5.00			7-1-2029		5,000,000		6,197,700

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Florida Department of Transportation Turnpike System Series A (Transportation Revenue)		5.00	%		7-1-2023	$	3,910,000	$	4,873,932
Florida Department of Transportation Turnpike System Series A (Transportation Revenue)		5.00			7-1-2025		4,950,000		6,372,729
Florida Development Finance Corporation Renaissance Charter School Series A (Education Revenue)		5.00			9-15-2020		1,855,000		1,950,291
Florida HEFAR (Education Revenue)		4.00			4-1-2021		1,000,000		1,115,480
Florida Mid-Bay Bridge Authority Series A (Transportation Revenue)		5.00			10-1-2025		1,250,000		1,556,625
Gulf Breeze FL Capital Funding Loan Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2017		1,665,000		1,751,330
Gulf Breeze FL Capital Funding Loan Program Series B (Miscellaneous Revenue, AGM Insured)		4.00			10-1-2016		1,000,000		1,008,510
Gulf Breeze FL Capital Funding Loan Program Series B (Miscellaneous Revenue, AGM Insured)		4.00			10-1-2017		1,000,000		1,039,410
Gulf Breeze FL Local Government Loan Series J (Water & Sewer Revenue) ±		4.10			12-1-2020		3,000,000		3,042,090
Gulf Breeze FL Local Government Loan Series J (Water & Sewer Revenue) ±		4.20			12-1-2020		3,290,000		3,441,735
Hernando County FL School Board Florida Master Lease Program Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		5.00			7-1-2025		2,065,000		2,610,986
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			10-1-2019		3,440,000		3,772,338
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			10-1-2020		3,600,000		4,021,380
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			4-1-2021		2,485,000		2,788,965
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		0.79			9-25-2024		12,705,000		12,705,000
Miami-Dade County FL School Board Certificate of Participation Series A (Miscellaneous Revenue) ±		5.00			5-1-2031		3,000,000		3,692,100
Miami-Dade County FL School Board Certificate of Participation Series D (Miscellaneous Revenue)		5.00			11-1-2027		6,600,000		8,143,476
Miami-Dade County FL Special Obligation Series A (Tax Revenue)		5.00			10-1-2023		700,000		848,953
Miami-Dade County FL Water & Sewer Refunding Bond Series C (Water & Sewer Revenue, BHAC Insured)		5.00			10-1-2024		2,950,000		3,233,348
Miami-Dade County FL Water & Sewer Refunding Bond Series C (Water & Sewer Revenue)		5.25			10-1-2022		3,000,000		3,304,890
Orange County FL Health Facilities Authority Lakeside Health Facility (Health Revenue, SunTrust Bank LOC) ø		0.48			7-1-2027		7,235,000		7,235,000
Orange County FL School Board Certificates Partner Series A (Miscellaneous Revenue, National Insured)		5.00			8-1-2016		1,000,000		1,003,920
Putnam County FL Development Authority PCR Seminole Project Series A (Utilities Revenue, Ambac Insured) ±		5.35			3-15-2042		5,260,000		5,660,865
Reedy Creek FL Improvement District Series A (GO Revenue) %%		5.00			6-1-2027		2,800,000		3,613,568
Reedy Creek FL Improvement District Series A (GO Revenue) %%		5.00			6-1-2035		4,675,000		5,824,302
Seminole Tribe of Florida Special Obligation Series A (Miscellaneous Revenue) 144A		5.50			10-1-2024		2,500,000		2,607,650
South Lake County FL Hospital District South Lake Hospital Incorporated (Health Revenue)		5.00			10-1-2016		1,015,000		1,025,008
South Lake County FL Hospital District South Lake Hospital Incorporated (Health Revenue)		5.00			10-1-2017		900,000		939,789
Tampa FL Sports Authority Stadium Project (Tax Revenue)		5.00			1-1-2025		3,395,000		4,352,730
University of South Florida Financing Corporation Certificate of Participation Master Lease Program Series A (Education Revenue)		5.00			7-1-2022		1,730,000		2,061,589
University of South Florida Financing Corporation Certificate of Participation Master Lease Program Series A (Education Revenue)		5.00			7-1-2023		815,000		988,571
									129,694,022

6 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Georgia: 0.94%
Columbus GA Refunding Bond (Water & Sewer Revenue)		5.00	%		5-1-2033	$	950,000	$	1,213,055
Columbus GA Refunding Bond (Water & Sewer Revenue)		5.00			5-1-2035		1,200,000		1,521,192
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		1,000,000		1,041,550
Georgia Public Gas Partners Incorporated Series A (Utilities Revenue)		5.00			10-1-2017		2,500,000		2,634,300
Georgia Public Gas Partners Incorporated Series A (Utilities Revenue)		5.00			10-1-2019		5,000,000		5,653,000
Main Street Natural Gas Incorporated Georgia Gas Project Series A (Utilities Revenue)		5.50			9-15-2022		1,000,000		1,198,830
Monroe County GA PCR Georgia Power Company Plant Scherer Project (Industrial Development Revenue) ±		2.35			10-1-2048		2,000,000		2,083,100
Private Colleges & Universities Authority of Georgia Series A (Education Revenue)		5.00			10-1-2021		3,330,000		3,878,051
Savannah GA MFHR Wessels/Blackshear Home Project (Housing Revenue) ±		1.15			7-1-2019		6,000,000		5,996,460
									25,219,538
Guam: 0.42%
Guam Education Financing Foundation Certificate of Participation Guam Public School Facilities Project Series A (Miscellaneous Revenue)		5.00			10-1-2017		2,195,000		2,215,787
Guam Government Business Privilege Tax Bond Series A (Tax Revenue)		5.00			1-1-2020		1,215,000		1,372,014
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			7-1-2028		1,000,000		1,179,390
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2020		350,000		401,100
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2033		2,500,000		2,969,175
Guam International Airport Authority (Airport Revenue)		5.00			10-1-2022		1,000,000		1,192,330
Guam International Airport Authority (Airport Revenue)		5.00			10-1-2023		1,500,000		1,809,105
									11,138,901
Illinois: 16.32%
Bolingbrook, Will & DuPage Counties IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2023		650,000		777,101
Champaign & Coles Counties IL Community College District #505 Series A (GO Revenue)		4.00			12-1-2018		1,015,000		1,087,684
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2021		1,000,000		840,140
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2025		3,380,000		2,394,460
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2026		4,030,000		2,718,960
Chicago IL Board of Education School Reform Series A (GO Revenue, National/FGIC Insured)		5.25			12-1-2023		5,125,000		5,777,771
Chicago IL Board of Education Series A3 (GO Revenue) ±		1.23			3-1-2036		10,000,000		8,762,200
Chicago IL Board of Education Series B (GO Revenue, Ambac Insured)		5.00			12-1-2021		7,760,000		7,778,779
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2021		2,500,000		2,349,975
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2029		3,000,000		2,697,870
Chicago IL Board of Education Series C (GO Revenue)		5.25			12-1-2025		5,000,000		4,599,950
Chicago IL Board of Education Series F (GO Revenue)		5.00			12-1-2020		2,375,000		2,256,226
Chicago IL CAB Series A (GO Revenue, National Insured)		5.44			1-1-2018		1,725,000		1,748,736
Chicago IL Metropolitan Reclamation Series B (GO Revenue)		5.00			12-1-2025		2,500,000		2,945,450
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue, AGM Insured)		5.13			1-1-2030		2,610,000		3,142,962
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue, AGM Insured)		5.13			1-1-2031		3,335,000		4,006,936
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue)		5.25			1-1-2032		8,755,000		10,588,822
Chicago IL O’Hare International Airport Senior Lien Series B (Airport Revenue)		5.00			1-1-2030		8,000,000		9,825,920
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue, AGM Insured)		5.00			1-1-2033		1,000,000		1,055,040

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL O’Hare International Airport Third Lien Series C (Airport Revenue, AGC Insured)		5.25	%		1-1-2025	$	4,075,000	$	4,619,950
Chicago IL O’Hare International Airport Third Lien Series F (Airport Revenue)		4.25			1-1-2021		735,000		810,874
Chicago IL Park District Series A (GO Revenue)		5.00			1-1-2036		2,150,000		2,354,057
Chicago IL Park District Series B (GO Revenue)		5.00			1-1-2021		3,765,000		4,273,388
Chicago IL Park District Series C (GO Revenue)		5.00			1-1-2022		1,515,000		1,743,038
Chicago IL Public Building Commission School Reform (Miscellaneous Revenue, National Insured)		5.25			12-1-2017		3,555,000		3,679,318
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2025		615,000		657,933
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2026		5,140,000		5,923,130
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2027		3,000,000		3,440,070
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2030		2,075,000		2,310,264
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2022		1,730,000		2,031,920
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2023		1,155,000		1,351,708
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2025		500,000		582,415
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2026		2,000,000		2,325,800
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2028		3,000,000		3,455,820
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2029		1,490,000		1,713,247
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2033		1,000,000		1,171,440
Chicago IL Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		10,000,000		10,138,500
Chicago IL Series A (GO Revenue, Ambac Insured)		5.00			1-1-2019		2,500,000		2,540,500
Chicago IL Series A (GO Revenue)		5.00			1-1-2025		750,000		764,565
Chicago IL Series A (GO Revenue)		5.00			1-1-2027		1,000,000		1,011,850
Chicago IL Series A (GO Revenue)		5.25			1-1-2022		4,020,000		4,104,380
Chicago IL Series A (GO Revenue)		5.25			1-1-2023		4,475,000		4,562,352
Chicago IL Series A (GO Revenue)		5.25			1-1-2028		1,750,000		1,758,768
Chicago IL Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2037		4,750,000		4,927,935
Chicago IL Series C (GO Revenue) ¤		0.00			1-1-2023		2,500,000		1,781,400
Chicago IL Series C (GO Revenue)		4.00			1-1-2020		1,505,000		1,519,704
Chicago IL Series C (GO Revenue)		5.00			1-1-2024		3,695,000		3,761,880
Chicago IL Series C (GO Revenue)		5.00			1-1-2026		5,000,000		5,121,600
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		16,865,000		17,158,788
Chicago IL Series J (GO Revenue, Ambac Insured)		5.00			12-1-2023		365,000		371,358
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5307-A (Transportation Revenue, AGC Insured)		5.25			6-1-2022		500,000		531,775
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5309-A (Transportation Revenue, AGC Insured)		6.00			6-1-2024		2,000,000		2,254,020
Chicago IL Transit Authority Sales Tax Receipts (Tax Revenue)		5.25			12-1-2027		2,600,000		2,969,538
Chicago IL Unrefunded Balance (GO Revenue, AGM Insured)		5.00			1-1-2024		35,000		35,323
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2022		1,340,000		1,540,196
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2023		1,935,000		2,213,272
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2024		2,000,000		2,276,500
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2032		1,000,000		1,145,040
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2033		1,000,000		1,141,410
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2034		1,000,000		1,139,960
Chicago IL Waste Water Transmission Second Lien Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		2,000,000		2,031,380
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2025		1,250,000		1,498,688
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2027		1,295,000		1,537,256

8 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Cook County IL Community College District #508 (GO Revenue)		5.25	%		12-1-2028	$	1,250,000	$	1,477,263
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2030		3,000,000		3,533,250
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2031		3,200,000		3,749,952
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		7,240,000		8,204,223
Cook County IL Series A (GO Revenue)		5.25			11-15-2023		7,680,000		8,680,013
Cook County IL Series A (GO Revenue)		5.25			11-15-2024		2,200,000		2,538,360
Cook County IL Series B (GO Revenue)		5.00			11-15-2023		600,000		698,958
Cook County IL Series C (GO Revenue)		5.00			11-15-2021		1,340,000		1,554,628
Cook County IL Series C (GO Revenue)		5.00			11-15-2024		2,175,000		2,529,743
Cook County IL Series C (GO Revenue)		5.00			11-15-2025		2,450,000		2,830,289
DuPage County IL High School District (GO Revenue, AGM Insured)		5.00			1-1-2021		1,000,000		1,021,700
DuPage, Cook & Will Counties IL Community College District #502 Series A (GO Revenue)		5.00			6-1-2022		2,650,000		3,167,943
Homer, Glen, Will & Cook Village Counties IL Series A (GO Revenue)		4.00			12-1-2019		1,000,000		1,094,460
Homer, Glen, Will & Cook Village Counties IL Series A (GO Revenue)		5.00			12-1-2021		1,015,000		1,138,048
Huntley IL Special Service Area #9 (Tax Revenue, AGC Insured)		4.60			3-1-2017		325,000		329,059
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		2,300,000		2,654,476
Illinois (GO Revenue)		4.75			4-1-2020		2,650,000		2,761,751
Illinois (GO Revenue, AGM Insured)		5.00			9-1-2016		585,000		587,305
Illinois (GO Revenue, AGM Insured)		5.00			1-1-2023		2,450,000		2,673,122
Illinois (Tax Revenue)		5.00			6-15-2023		16,050,000		19,563,345
Illinois (Miscellaneous Revenue)		5.00			7-1-2023		5,000,000		5,651,050
Illinois (Miscellaneous Revenue)		5.00			8-1-2025		1,000,000		1,101,660
Illinois (GO Revenue, AGM Insured)		5.00			4-1-2026		5,000,000		5,851,900
Illinois (Tax Revenue)		5.00			6-15-2029		1,000,000		1,142,230
Illinois Education Facilities Authority (Miscellaneous Revenue) ±		3.40			11-1-2036		1,275,000		1,305,141
Illinois Education Facilities Authority Field Museum (Miscellaneous Revenue) ±		4.13			11-1-2036		4,560,000		4,711,301
Illinois Finance Authority OSF Healthcare System Series F (Health Revenue, Barclays Bank plc LOC) ø##		0.42			11-15-2037		20,000,000		20,000,000
Illinois Finance Authority Student Housing Illinois State University Project (Education Revenue)		5.50			4-1-2021		3,920,000		4,262,098
Illinois Finance Authority Wesleyan University (Education Revenue) %%		5.00			9-1-2026		680,000		827,247
Illinois HFA Evanston Hospital Corporation (Health Revenue, JPMorgan Chase & Company SPA) ø		0.46			8-15-2035		10,000,000		10,000,000
Illinois Municipal Electric Agency Power Supply (Utilities Revenue, National Insured)		5.25			2-1-2024		2,500,000		2,568,625
Illinois Municipal Electric Agency Power Supply Series A (Utilities Revenue, National/FGIC Insured)		5.25			2-1-2023		1,100,000		1,130,195
Illinois Regional Transportation Authority (Tax Revenue, AGM Insured)		5.75			6-1-2018		6,790,000		7,435,254
Illinois Regional Transportation Authority (Tax Revenue, National Insured)		6.50			7-1-2026		7,815,000		10,693,421
Illinois Series A (Tax Revenue)		5.00			6-1-2022		485,000		487,173
Illinois Series A (GO Revenue)		5.00			4-1-2023		4,500,000		5,072,670
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		2,500,000		2,906,275
Illinois Series A (Tax Revenue)		5.00			1-1-2027		10,625,000		11,516,013
Illinois Series B (Tax Revenue)		5.00			6-15-2018		175,000		189,768
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.00			6-15-2028		2,500,000		2,907,675
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.25			6-15-2030		4,000,000		4,702,680
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.25			6-15-2032		3,000,000		3,495,450
Illinois Toll Highway Authority Series A-1 (Transportation Revenue, AGM Insured)		5.00			1-1-2024		4,650,000		4,650,558
Illinois Toll Highway Authority Series A-1 (Transportation Revenue)		5.25			1-1-2026		3,500,000		3,957,765
Illinois Unrefunded Balance Series A (Miscellaneous Revenue)		5.00			10-1-2016		3,200,000		3,210,560
Illinois Unrefunded Balance Series B (Tax Revenue)		5.00			6-15-2018		825,000		891,413

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Kane, Cook & DuPage Counties IL School District #46 Prerefunded Balance Series B (GO Revenue)		4.50	%		1-1-2024	$	1,170,000	$	1,386,649
Kane, Cook & DuPage Counties IL School District #46 Unrefunded Balance Series B (GO Revenue)		4.50			1-1-2024		3,100,000		3,585,894
Kane, McHenry, Cook & DeKalb Counties IL Unified School District (GO Revenue, Ambac Insured)		5.00			1-1-2024		2,000,000		2,044,620
Kendall, Kane & Will Counties IL Unified School District Series A (GO Revenue)		5.00			2-1-2023		1,000,000		1,160,400
McHenry & Kane Counties IL Community Consolidated School District #158 (GO Revenue)		5.63			1-15-2031		2,000,000		2,410,520
McHenry & Lake Counties IL Community Consolidated School District #26 (GO Revenue, AGM Insured)		5.00			2-1-2020		1,455,000		1,636,089
Northern IIlinois Municipal Power Agency Prairie State Project Series A (Utilities Revenue, National Insured)		5.00			1-1-2021		2,740,000		2,897,577
Northern Illinois University Board of Trustees (Education Revenue, AGM Insured)		5.00			4-1-2019		1,000,000		1,096,300
Northern Illinois University Board of Trustees Certificate of Participation (Education Revenue, AGM Insured)		5.00			9-1-2022		1,325,000		1,548,170
Northern Illinois University Board of Trustees Certificate of Participation (Education Revenue, AGM Insured)		5.00			9-1-2024		1,000,000		1,202,760
Southwestern Illinois Development Authority Local Government Program Collinsville Limited (Tax Revenue)		5.00			3-1-2025		1,975,000		1,692,338
Springfield IL Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2022		3,600,000		3,704,832
Springfield IL Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2023		1,560,000		1,605,427
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2017		455,000		503,994
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2018		535,000		631,172
University of Illinois Auxiliary Facilities Systems (Education Revenue) ¤		0.00			4-1-2020		8,270,000		7,740,803
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, Ambac Insured)		5.50			4-1-2024		1,000,000		1,275,740
University of Illinois Board of Trustees Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2020		2,000,000		2,104,020
Will County IL Community Unified School District CAB (GO Revenue, National Insured) ¤		0.00			11-1-2018		9,730,000		9,365,028
									436,685,635
Indiana: 2.39%
Indiana Bond Bank Hendricks Regional Health Series A (Miscellaneous Revenue)		4.00			8-1-2017		1,000,000		1,034,050
Indiana Bond Bank Hendricks Regional Health Series A (Miscellaneous Revenue)		5.00			8-1-2016		1,340,000		1,345,065
Indiana Bond Bank Special Program Series A (Utilities Revenue)		5.00			10-15-2017		5,410,000		5,680,500
Indiana Bond Bank Special Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2022		1,545,000		1,840,280
Indiana Bond Bank Special Program Series A (Utilities Revenue)		5.25			10-15-2016		600,000		607,968
Indiana Finance Authority Clean Water Act Project Series A (Water & Sewer Revenue)		5.00			10-1-2031		1,035,000		1,268,341
Indiana Finance Authority CWA Authority Project Series A (Water & Sewer Revenue)		5.00			10-1-2030		2,315,000		2,848,770
Indiana Finance Authority Parkview Health System Series A (Health Revenue)		5.50			5-1-2024		4,500,000		5,098,680
Indiana Finance Authority Southern Indiana Gas & Electric Company Project Series D (Utilities Revenue) ±		1.95			3-1-2024		4,000,000		4,054,840
Indiana Finance Authority Stadium Project Series A (Miscellaneous Revenue)		5.25			2-1-2028		2,000,000		2,565,620
Indiana HEFA Ascension Health Series B3 (Health Revenue) ±		1.26			11-15-2031		15,000,000		15,000,150
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2027		760,000		979,214
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2028		1,000,000		1,281,370

10 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Indiana (continued)
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00	%		1-1-2029	$	735,000	$	938,852
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2030		1,375,000		1,739,898
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2031		1,000,000		1,260,430
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2033		1,545,000		1,932,177
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2034		2,000,000		2,491,440
Jasper County IN PCR Northern Series A (Industrial Development Revenue, National Insured)		5.60			11-1-2016		5,900,000		5,993,751
Jeffersonville IN Building Corporation First Mortgage Series C (Miscellaneous Revenue)		4.25			8-15-2017		315,000		322,236
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2022		925,000		1,072,353
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2023		665,000		752,694
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2026		750,000		838,358
Mount Vernon IN School Building Corporation Prerefunded Balance First Mortgage (Miscellaneous Revenue, AGM Insured)		5.00			7-15-2019		265,000		282,978
Mount Vernon IN School Building Corporation Unrefunded Balance First Mortgage (Miscellaneous Revenue, AGM Insured)		5.00			7-15-2019		735,000		781,717
University of Southern Indiana Student Fee Series J (Education Revenue, AGC Insured)		5.00			10-1-2019		1,000,000		1,124,940
Valparaiso IN Multi-Schools Building Corporation (Miscellaneous Revenue)		5.00			7-15-2024		750,000		942,795
									64,079,467
Iowa: 0.44%
Altoona IA Annual Appropriation Urban Renewal Refunding Bond (GO Revenue) %%		5.00			6-1-2027		2,310,000		2,864,816
Iowa Student Loan Liquidity Corporation Series 1 (Education Revenue)		5.25			12-1-2017		3,000,000		3,165,780
Iowa Student Loan Liquidity Corporation Series 1 (Education Revenue)		5.25			12-1-2018		5,285,000		5,763,980
									11,794,576
Kansas: 0.23%
Kansas Development Finance Authority Agro-Defense Facility Series G (Miscellaneous Revenue)		5.00			4-1-2030		2,650,000		3,171,971
Kansas Development Finance Authority Health Facilities Series F (Health Revenue)		5.00			11-15-2021		1,300,000		1,544,452
Wyandotte County & Kansas City KS Sales Tax Special Obligation Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00			9-1-2034		4,180,000		1,518,887
									6,235,310
Kentucky: 0.46%
Kentucky EDFA Series B2 (Health Revenue) ±		1.21			2-1-2046		1,250,000		1,234,888
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2020		1,000,000		896,260
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2021		2,750,000		2,376,963
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2022		4,320,000		3,584,174
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2025		1,020,000		723,588

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Kentucky (continued)
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00	%		7-1-2029	$	1,400,000	$	856,310
University of Kentucky Certificate of Participation Master Street Lease #4 (Miscellaneous Revenue)		4.45			6-18-2018		2,438,396		2,541,345
									12,213,528
Louisiana: 2.02%
Bossier City LA (Water & Sewer Revenue)		5.00			10-1-2037		2,000,000		2,407,060
Lafayette LA Communications System (Miscellaneous Revenue, AGM Insured)		5.00			11-1-2025		1,500,000		1,886,040
Louisiana Correctional Facilities Corporation (Miscellaneous Revenue, Ambac Insured)		5.00			9-1-2019		1,000,000		1,121,350
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Series A (Water & Sewer Revenue)		5.00			2-1-2030		1,000,000		1,213,310
Louisiana Public Facilities Authority Archdiocese of New Orleans Project (Miscellaneous Revenue, CIFG Insured)		5.00			7-1-2016		100,000		100,011
Louisiana Public Facilities Authority Archdiocese of New Orleans Project (Miscellaneous Revenue, CIFG Insured)		5.00			7-1-2017		150,000		155,528
Louisiana Public Facilities Authority Black & Gold Facilities Project Series A (Housing Revenue, AGC Insured)		4.25			7-1-2017		55,000		56,667
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2026		2,000,000		2,499,060
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2027		2,700,000		3,354,129
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2028		2,405,000		2,968,059
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2029		2,695,000		3,319,270
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2030		2,700,000		3,312,846
New Orleans LA Public Improvement Series A (GO Revenue, AGC Insured)		5.00			12-1-2016		1,365,000		1,389,611
New Orleans LA Sewer Service (GO Revenue, FGIC Insured)		5.50			12-1-2016		1,350,000		1,377,162
St. Bernard Parish LA Sales & Use Tax (Tax Revenue)		4.00			3-1-2023		3,405,000		3,864,266
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series B-1 (Industrial Development Revenue) ø##		0.70			11-1-2040		25,000,000		25,000,000
									54,024,369
Maryland: 1.53%
Maryland Department of Housing & Community Development Calvin Mowbray & Stephen Camper Park Project Series E (Housing Revenue) 144A		1.35			1-1-2019		5,000,000		5,010,850
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00			6-1-2027		500,000		562,805
Maryland Health & HEFAR John Hopkins Health System Series D (Health Revenue) ±		1.12			5-15-2038		3,870,000		3,868,259
Maryland Series B (GO Revenue)		4.00			8-1-2023		5,000,000		5,966,750
Maryland Series B (GO Revenue)		4.00			8-1-2024		15,000,000		18,141,600
Maryland Series C (GO Revenue)		5.00			8-1-2022		2,975,000		3,667,550
Maryland Stadium Authority Baltimore City Public Schools Construction & Revitalization Program (Miscellaneous Revenue)		5.00			5-1-2033		3,000,000		3,784,650
									41,002,464

12 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal			Value
Massachusetts: 2.23%
Boston MA Series A (GO Revenue)		5.00	%		4-1-2026	$	5,790,000		$	7,526,421
Massachusetts Consolidated Loan Series C (Tax Revenue, AGM Insured)		5.25			8-1-2025		5,000,000			5,253,000
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ø		1.05			8-1-2043		10,000,000			10,000,000
Massachusetts Development Finance Agency Lasell College (Education Revenue)		5.00			7-1-2021		2,820,000			3,244,043
Massachusetts Development Finance Agency Merrimack College Series A (Education Revenue)		5.00			7-1-2021		1,035,000			1,174,197
Massachusetts Development Finance Agency MFHR RTH Restoration Housing Limited Partnership (Housing Revenue, Bank of America NA LOC)		1.05			11-1-2017		2,300,000			2,301,058
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		6.55			4-15-2020		615,000			730,866
Massachusetts Educational Financing Authority Issue I (Education Revenue)		5.50			1-1-2018		2,000,000			2,136,700
Massachusetts Educational Financing Authority Issue I Series A (Education Revenue)		5.50			1-1-2017		2,000,000			2,047,080
Massachusetts HEFA Harvard University Series A (Education Revenue)		5.00			12-15-2029		1,890,000			2,167,414
Massachusetts HEFA Various Partners Healthcare Series G-6 (Health Revenue) ±		1.29			7-1-2038		14,000,000			13,998,740
Massachusetts Housing Finance Agency Multifamily Conduit Wood Ridge Homes Project Series A (Housing Revenue) ±		1.05			12-1-2017		9,000,000			9,011,160
										59,590,679
Michigan: 3.69%								��
Clinton MI Township Building Authority (Miscellaneous Revenue, Ambac Insured)		5.50			11-1-2017		2,755,000			2,825,445
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2018		3,000,000			3,238,170
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2019		1,500,000			1,660,860
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2020		2,700,000			3,051,891
Eaton Rapids MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		1,785,000			2,150,568
Flint MI International Academy (Education Revenue)		5.38			10-1-2022		2,270,000			2,303,029
Flint MI International Academy (Education Revenue)		5.50			10-1-2027		1,985,000			2,006,835
Flint MI International Academy Public School Project (Education Revenue)		5.00			10-1-2017		190,000			192,497
Hazel Park MI School District (GO Revenue, AGM/Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,160,000			1,337,352
Kent County MI (GO Revenue)		5.00			1-1-2025		1,000,000			1,097,320
Kent County MI Limited Tax Capital Improvement Bond (GO Revenue)		5.00			6-1-2030		1,040,000			1,337,804
Kent County MI Limited Tax Capital Improvement Bond (GO Revenue)		5.00			6-1-2035		520,000			655,455
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2024		1,750,000			1,991,273
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2025		1,750,000			1,991,273
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2026		1,930,000			2,190,917
Michigan Comprehensive Transportation Program (Tax Revenue)		5.25			5-15-2017		2,750,000			2,854,143
Michigan Finance Authority (Miscellaneous Revenue)		5.00			6-1-2020		1,400,000			1,448,104
Michigan Finance Authority (Health Revenue)		5.00			11-15-2023		400,000			482,680
Michigan Finance Authority (Health Revenue)		5.00			11-15-2026		800,000			944,544
Michigan Finance Authority Limited Obligation Public School Academy Cesar Chavez Academy Project (Education Revenue)		5.00			2-1-2022		2,540,000			2,566,822
Michigan Finance Authority Local Government Loan Program Series C (Health Revenue)		5.00			11-1-2022		2,070,000			2,297,824
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, National Insured)		5.00			7-1-2025		1,000,000			1,221,680
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue)		5.00			7-1-2030		12,000,000		��	14,269,080
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2035		2,750,000			3,241,480

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, AGM Insured)		5.00	%		7-1-2037	$	2,000,000	$	2,344,780
Michigan Finance Authority Local Government Loan Program Series F (Tax Revenue)		4.00			10-1-2024		3,000,000		3,343,080
Michigan Housing Development Authority Limited Greenwood Villa Project (Housing Revenue, AGM Insured)		4.75			9-15-2017		710,000		721,339
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2018		1,075,000		1,100,198
Michigan Public Educational Facilities Authority Limited Obligation Chandler Park Academy (Miscellaneous Revenue)		5.60			11-1-2018		605,000		606,077
Michigan Public Educational Facilities Authority Limited Obligation Nataki Talibah (Miscellaneous Revenue) (i)(s)		6.25			10-1-2023		815,000		244,476
Michigan Strategic Fund Limited Obligation Cadillac Place Office Building Project (Miscellaneous Revenue)		5.25			10-15-2025		4,165,000		4,982,881
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		11,500,000		11,808,545
Pinckney MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2025		2,040,000		2,522,399
Pinckney MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2026		2,505,000		3,071,330
Southfield MI 2015 Street Improvement (GO Revenue)		4.00			5-1-2025		1,490,000		1,750,929
Southfield MI Public Schools (GO Revenue, National/Qualified School Board Loan Fund Insured)		4.38			5-1-2025		4,000,000		4,112,760
Western Michigan University Board of Trustees (Education Revenue)		5.25			11-15-2027		600,000		743,232
Western Michigan University Board of Trustees (Education Revenue)		5.25			11-15-2029		1,000,000		1,226,030
Western Michigan University Board of Trustees (Education Revenue, AGM Insured)		5.25			11-15-2033		750,000		912,330
Western Townships MI Utilities Authority (GO Revenue)		5.00			1-1-2017		1,500,000		1,531,860
Wyandotte MI Series A (Utilities Revenue, AGC Insured)		4.00			10-1-2016		500,000		504,405
									98,883,697
Minnesota: 0.28%
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series B (Airport Revenue, National Insured)		5.00			1-1-2018		4,555,000		4,658,034
St. Louis Park MN Nicollett Health Services Series C (Health Revenue)		5.50			7-1-2023		2,500,000		2,742,450
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		5.50			9-1-2018		200,000		200,600
									7,601,084
Mississippi: 0.54%
Mississippi Development Bank Special Obligation Jackson Public School District Project Series A (Miscellaneous Revenue)		5.00			4-1-2020		1,000,000		1,139,210
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project (Water & Sewer Revenue, AGM Insured)		6.00			12-1-2023		1,145,000		1,513,656
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project Series A (Water & Sewer Revenue, AGM Insured)		5.00			9-1-2030		10,000,000		11,918,300
									14,571,166
Missouri: 0.29%
Kansas City MO Municipal Assistance Corporation Series B-1 (Miscellaneous Revenue, Ambac Insured) ¤		0.00			4-15-2022		3,640,000		3,194,464
Manchester MO Highway 141 Manchester Road Project (Tax Revenue)		6.00			11-1-2025		475,000		505,020
Maryland Heights MO South Heights Redevelopment Project A (Tax Revenue)		5.50			9-1-2018		465,000		481,247

14 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Missouri (continued)
Poplar Bluff MO School District (Miscellaneous Revenue, AGM Insured)		5.00	%		3-1-2032	$	1,500,000	$	1,811,340
Poplar Bluff MO School District (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2034		1,000,000		1,200,490
St. Louis MO Lambert St. Louis International Airport Series A-1 (Airport Revenue)		6.00			7-1-2019		415,000		475,432
									7,667,993
Nebraska: 0.12%
Lincoln County NE Hospital Authority Great Plains Regional Medical Center (Health Revenue)		5.00			11-1-2024		1,000,000		1,168,370
Municipal Energy Agency of Nebraska Series A (Utilities Revenue, BHAC Insured)		5.00			4-1-2019		500,000		557,060
Nebraska Central Plains Energy Project #3 (Utilities Revenue)		5.00			9-1-2027		1,290,000		1,504,566
									3,229,996
Nevada: 1.32%
Clark County NV Airport Series C (Airport Revenue, AGM Insured)		5.00			7-1-2023		5,600,000		6,262,816
Clark County NV Airport Series D (Airport Revenue)		5.00			7-1-2024		2,750,000		3,121,608
Clark County NV Las Vegas McCarran International Airport Series A (Airport Revenue)		5.00			7-1-2016		3,000,000		3,000,390
Clark County NV Water Reclamation District (GO Revenue)		5.00			7-1-2027		4,155,000		5,287,196
Clark County NV Water Reclamation District Series A (GO Revenue)		5.25			7-1-2038		2,880,000		3,237,552
Las Vegas NV New Convention & Visitors Authority Series E (Tax Revenue, AGM Insured)		4.20			7-1-2021		500,000		555,550
Las Vegas NV Series A (GO Revenue)		5.00			5-1-2031		1,985,000		2,453,797
Las Vegas NV Series C (GO Revenue)		5.00			9-1-2030		1,000,000		1,270,600
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2019		735,000		771,353
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2020		615,000		654,674
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2021		800,000		862,520
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.25			6-1-2024		200,000		215,746
Las Vegas NV Valley Water District Series B (GO Revenue)		5.00			6-1-2030		3,945,000		5,037,647
Reno NV Sparks Indian Governmental Colony (Miscellaneous Revenue, U.S. Bank NA LOC)		5.00			6-1-2021		2,580,000		2,588,901
									35,320,350
New Hampshire: 0.08%
New Hampshire HFA Single Family Mortgage Acquisition Series E & F (Housing Revenue)		4.80			7-1-2028		2,030,000		2,229,752
New Jersey: 4.07%
Essex County NJ Import Authority Series A (Miscellaneous Revenue)		6.00			11-1-2025		5,000,000		5,404,900
Garden NJ Open Space & Farmland Preservation Refunding Bonds Series A (Tax Revenue)		4.00			11-1-2017		930,000		965,907
New Jersey EDA Cigarette Tax Refunding Bonds (Tobacco Revenue)		5.00			6-15-2021		2,500,000		2,815,125
New Jersey EDA Motor Vehicle Surcharges Series A (Miscellaneous Revenue, National Insured)		5.25			7-1-2026		2,860,000		3,506,846
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		2.01			3-1-2028		5,000,000		4,485,850
New Jersey EDA School Facilities Construction Refunding Bond Series NN (Miscellaneous Revenue)		5.00			3-1-2021		15,035,000		16,649,158
New Jersey EDA School Facilities Construction Refunding Bond Series PP (Miscellaneous Revenue)		5.00			6-15-2026		8,380,000		9,450,629
New Jersey Educational Facilities Authority (Miscellaneous Revenue)		5.00			6-15-2026		3,015,000		3,400,196

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00	%		12-1-2016	$	2,100,000	$	2,138,367
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2017		2,000,000		2,068,480
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2019		9,860,000		10,842,549
New Jersey Housing & Mortgage Finance Agency (Housing Revenue)		5.25			10-1-2016		160,000		161,110
New Jersey Sports & Exposition Authority (Miscellaneous Revenue, National Insured)		5.50			3-1-2022		1,755,000		2,186,870
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			6-15-2020		4,000,000		4,405,880
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		1,305,000		1,461,809
New Jersey TTFA Series A (Miscellaneous Revenue)		5.25			6-15-2024		1,695,000		1,893,400
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		2,500,000		2,865,150
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144Aø		0.59			12-15-2022		19,850,000		19,850,000
New Jersey TTFA Unrefunded Balance (Transportation Revenue, National Insured)		5.25			12-15-2021		6,000,000		6,911,400
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2022		1,630,000		1,910,947
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2024		1,775,000		2,143,792
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		1,860,000		2,275,152
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		1,000,000		1,217,380
									109,010,897
New Mexico: 0.65%
Albuquerque Bernalillo County NM Water Utility Authority Series B (Water & Sewer Revenue)		5.00			7-1-2024		1,000,000		1,264,320
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2028		9,265,000		11,199,717
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2029		1,000,000		1,206,520
New Mexico Mortgage Finance Authority SFMR Class I Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		4.63			9-1-2025		1,240,000		1,281,751
New Mexico Mortgage Finance Authority SFMR Class I Series B (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.00			3-1-2028		475,000		509,979
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.06			11-1-2039		2,000,000		1,984,460
									17,446,747
New York: 10.92%
Hempstead NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		2,720,000		3,117,746
Liberty Development Corporation New York Series 1251 (Miscellaneous Revenue, Morgan Stanley Bank LIQ) 144Aø		0.55			10-1-2035		7,914,000		7,914,000
Metropolitan Transportation Authority New York Dedicated Tax Fund Series A (Tax Revenue)		5.00			11-15-2024		6,010,000		7,379,559
Metropolitan Transportation Authority New York Series A (Transportation Revenue)		5.00			11-15-2030		4,010,000		4,860,200
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2028		5,000,000		6,505,100
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2029		11,100,000		14,417,568
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2030		8,350,000		10,824,773
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2031		4,500,000		5,820,210

16 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Metropolitan Transportation Authority New York Series D (Transportation Revenue)		5.00	%		11-15-2027	$	2,000,000	$	2,456,900
Metropolitan Transportation Authority New York Series F (Transportation Revenue)		5.00			11-15-2025		2,490,000		3,219,595
Metropolitan Transportation Authority New York Series F (Transportation Revenue)		5.00			11-15-2028		2,450,000		2,973,810
Monroe County NY Industrial Development Corporation Revenue Monroe Community College Project Series A (Education Revenue, AGM Insured)		5.00			1-15-2022		790,000		911,818
Monroe County NY Industrial Development Corporation Revenue Monroe Community College Project Series A (Education Revenue, AGM Insured)		5.00			1-15-2023		645,000		757,327
Monroe County NY Industrial Development Corporation Revenue Monroe Community College Project Series A (Education Revenue, AGM Insured)		5.00			1-15-2024		905,000		1,078,624
Monroe County NY Industrial Development Corporation St. John Fisher College Project Series A (Education Revenue)		5.00			6-1-2020		2,125,000		2,404,140
Nassau County NY TAN Series A (GO Revenue)		2.00			9-15-2016		5,000,000		5,013,800
Nassau NY Water Authority Series A (Water & Sewer Revenue)		5.00			4-1-2027		350,000		438,550
Nassau NY Water Authority Series A (Water & Sewer Revenue)		5.00			4-1-2028		300,000		374,385
Nassau NY Water Authority Series B (Water & Sewer Revenue)		5.00			4-1-2024		400,000		500,104
Nassau NY Water Authority Series B (Water & Sewer Revenue)		5.00			4-1-2026		755,000		953,150
New York Convention Center Development Corporation (Tax Revenue)		5.00			11-15-2028		8,000,000		10,219,040
New York Dormitory Authority Interagency Council Pooled Loan Series A-1 (Miscellaneous Revenue)		4.00			7-1-2019		740,000		798,652
New York Dormitory Authority Mount Sinai School of Medicine (Education Revenue)		5.50			7-1-2022		2,000,000		2,277,060
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		1.16			5-1-2018		800,000		798,944
New York Dormitory Authority Series A (Tax Revenue)		5.00			3-15-2028		5,000,000		6,368,200
New York Dormitory Authority Series B (Tax Revenue, Ambac Insured)		5.50			3-15-2025		3,885,000		5,199,296
New York Dormitory Authority State University Educational Facilities Series A (Miscellaneous Revenue)		5.50			5-15-2019		3,675,000		4,036,804
New York Dormitory Authority United Health Hospitals (Health Revenue, FHA Insured)		4.50			8-1-2018		1,500,000		1,584,645
New York NY Municipal Water Finance Authority Series AA-2 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.50			6-15-2032		15,475,000		15,475,000
New York NY Municipal Water Finance Authority Series GG (Water & Sewer Revenue)		5.00			6-15-2029		1,645,000		2,091,469
New York NY Series C (GO Revenue)		5.00			8-1-2031		5,000,000		6,231,500
New York NY Series C & D (GO Revenue)		5.00			8-1-2028		3,000,000		3,843,750
New York NY Series J-4 (GO Revenue) ±		0.96			8-1-2025		10,000,000		10,000,300
New York NY Sub Series H-5 (GO Revenue, Dexia Credit Local LOC) ø		0.60			3-1-2034		16,660,000		16,660,000
New York NY Transitional Finance Authority Prerefunded Balance Series A (Tax Revenue)		5.00			5-1-2023		2,875,000		3,221,265
New York NY Transitional Finance Authority Series 3 Sub Series 3C (Tax Revenue, Dexia Credit Local SPA) ø		0.64			11-1-2022		6,000,000		6,000,000
New York NY Transitional Finance Authority Series B (Tax Revenue)		5.00			8-1-2027		1,115,000		1,420,778
New York NY Transitional Finance Authority Series C (Tax Revenue)		5.00			11-1-2027		5,000,000		6,405,700
New York NY Transitional Finance Authority Sub Series 2-B (Tax Revenue, Dexia Credit Local SPA) ø##		0.56			11-1-2022		23,400,000		23,400,000
New York NY Transitional Finance Authority Sub Series 2-A (Tax Revenue, Dexia Credit Local LIQ) ø		0.60			11-1-2022		2,500,000		2,500,000
New York NY Transitional Finance Authority Sub Series B-1 (Tax Revenue)		5.00			11-1-2028		1,000,000		1,291,400
New York NY Trust for Cultural Resources Series A-1 (Miscellaneous Revenue)		5.00			7-1-2031		2,475,000		2,864,837

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 17

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20	%		2-1-2017	$	14,940,000	$	14,945,976
New York Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2031		3,815,000		4,730,180
New York Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2029		7,500,000		9,692,175
New York Urban Development Corporation Personal income Tax Series A (Tax Revenue)		5.00			3-15-2032		5,000,000		6,378,300
New York Urban Development Corporation Series D (Miscellaneous Revenue, AGC Insured)		5.50			1-1-2019		3,000,000		3,354,240
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2020		1,160,000		1,310,011
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2022		1,350,000		1,586,129
Oyster Bay NY RAN (GO Revenue)		3.75			3-31-2017		2,000,000		2,018,320
Port Authority New York & New Jersey Special Obligation (Airport Revenue)		5.00			12-1-2020		5,000,000		5,732,850
Suffolk County NY TAN (GO Revenue) ##		2.00			7-27-2016		20,855,000		20,875,438
Suffolk NY Public Improvement Serial Bond Series A (GO Revenue, AGM Insured)		3.00			6-1-2019		1,180,000		1,249,714
Suffolk NY Tobacco Asset Securitization Corporation Tobacco Settlement Series B (Tobacco Revenue)		4.00			6-1-2022		420,000		471,723
Suffolk NY Tobacco Asset Securitization Corporation Tobacco Settlement Series B (Tobacco Revenue)		5.00			6-1-2023		500,000		587,510
Troy NY Capital Resource Corporation Rensselaer Polytechnic Series B (Education Revenue)		5.00			9-1-2020		1,430,000		1,649,462
Upper Mohawk Valley NY Regional Water Finance Authority Series A (Water & Sewer Revenue, AGC Insured)		5.00			4-1-2018		435,000		453,836
Utility Debt Securitization Authority New York (Utilities Revenue)		5.00			12-15-2032		1,250,000		1,552,638
Yonkers NY Series A (GO Revenue, AGM Insured)		5.00			10-1-2024		1,000,000		1,171,300
									292,369,801
North Carolina: 0.60%
Craven County NC Certificate of Participation (Miscellaneous Revenue, National Insured)		5.00			6-1-2023		4,400,000		4,578,552
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2020		3,400,000		3,927,170
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2022		250,000		301,040
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2023		1,000,000		1,225,210
North Carolina Grant Anticipation Vehicle Bond (Miscellaneous Revenue)		5.00			3-1-2029		2,470,000		3,062,973
Onslow County NC Limited Obligation Series A (Miscellaneous Revenue)		4.00			6-1-2022		90,000		103,626
Pitt County NC Certificate of Participation School Facilities Project Prerefunded Balance (Miscellaneous Revenue, National Insured)		5.00			4-1-2023		1,185,000		1,224,318
Pitt County NC Certificate of Participation School Facilities Project Unrefunded Balance (Miscellaneous Revenue, National Insured)		5.00			4-1-2023		1,570,000		1,621,669
									16,044,558
North Dakota: 0.18%
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		4,000,000		4,008,360
North Dakota Housing Finance Agency Series D (Housing Revenue)		4.50			1-1-2029		665,000		703,317
									4,711,677
Ohio: 2.43%
Cincinnati OH City School District Improvement Project Certificate of Participation (Miscellaneous Revenue)		5.00			12-15-2024		4,815,000		5,977,293

18 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Ohio (continued)
Cincinnati OH City School District Improvement Project Certificate of Participation (Miscellaneous Revenue)		5.00	%		12-15-2025	$	2,095,000	$	2,595,265
Clermont County OH Port Authority West Clermont Local School District Project (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		500,000		627,985
Clermont County OH Port Authority West Clermont Local School District Project (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		600,000		748,908
Clermont County OH Port Authority West Clermont Local School District Project (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2028		1,250,000		1,538,500
JobsOhio Beverage System Statewide Liquor Profits Senior Lien Series A (Miscellaneous Revenue)		5.00			1-1-2022		2,500,000		2,989,700
Kent University Ohio General Receipts Series B (Education Revenue, AGC Insured)		5.00			5-1-2018		1,165,000		1,256,150
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75			12-1-2023		2,000,000		2,054,640
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			10-1-2033		1,750,000		1,789,113
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			12-1-2033		2,500,000		2,558,250
Ohio Building Authority Series A (Miscellaneous Revenue)		5.00			10-1-2024		1,000,000		1,175,170
Ohio Turnpike Commission Junior Lien Infrastructure Projects Series A-1 (Transportation Revenue)		5.25			2-15-2029		1,000,000		1,234,570
Ohio University Hospital Health Systems Series B (Health Revenue) ø		0.72			1-15-2033		9,500,000		9,500,000
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series A (Water & Sewer Revenue) ±		3.75			6-1-2033		10,000,000		10,278,900
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series B (Industrial Development Revenue) ±		3.63			10-1-2033		3,150,000		3,220,403
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		15,000,000		15,427,050
RiverSouth Authority Ohio Lazarus Building Redevelopment Series A (Miscellaneous Revenue)		5.75			12-1-2027		950,000		1,000,540
Summit County OH Port Authority University of Akron Student Housing Project (Education Revenue)		5.25			1-1-2024		315,000		365,501
Summit County OH Port Authority University of Akron Student Housing Project (Education Revenue)		5.25			1-1-2024		685,000		814,534
									65,152,472
Oklahoma: 1.88%
Carter County OK Public Facilities Authority Educational Facilities Plainview Public School Project (Miscellaneous Revenue)		5.00			12-1-2026		1,000,000		1,271,800
Carter County OK Public Facilities Authority Educational Facilities Plainview Public School Project (Miscellaneous Revenue)		5.00			12-1-2027		1,000,000		1,266,530
Carter County OK Public Facilities Authority Educational Facilities Plainview Public School Project (Miscellaneous Revenue)		5.00			12-1-2028		1,285,000		1,620,411
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2019		1,325,000		1,431,967
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2022		2,595,000		2,934,841
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2023		1,010,000		1,137,412
Cleveland County OK Educational Facilities Authority Moore Public Schools Project (Miscellaneous Revenue)		5.00			6-1-2023		2,445,000		2,961,164
Creek County OK Educational Facilities Sapulpa Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2023		3,000,000		3,655,680
Cushing OK Educational Facilities Authority (Miscellaneous Revenue)		5.00			9-1-2022		2,210,000		2,681,039
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2018		820,000		887,863
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2019		860,000		959,975

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma (continued)
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00	%		9-1-2020	$	455,000	$	519,246
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2026		1,000,000		1,232,570
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2027		500,000		613,180
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2023		1,000,000		1,220,820
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2024		1,075,000		1,332,764
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2025		500,000		627,145
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2028		1,160,000		1,428,331
McGee Creek OK Authority (Water & Sewer Revenue, National Insured)		6.00			1-1-2023		1,490,000		1,688,334
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2020		1,000,000		1,131,670
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2021		1,000,000		1,150,310
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2022		1,000,000		1,165,910
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2026		1,495,000		1,873,175
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2027		1,140,000		1,419,642
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2028		1,265,000		1,569,296
Oklahoma Development Finance Authority (Miscellaneous Revenue)		4.00			6-1-2023		1,270,000		1,477,632
Oklahoma Development Finance Authority (Miscellaneous Revenue)		5.00			6-1-2023		1,230,000		1,506,209
Oklahoma Development Finance Authority Higher Education Master Real Property Series B (Miscellaneous Revenue)		4.00			6-1-2024		1,270,000		1,495,514
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2019		1,500,000		1,659,225
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2021		1,185,000		1,338,825
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2022		520,000		588,229
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2025		1,200,000		1,353,864
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2026		1,250,000		1,406,300
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2027		1,000,000		1,120,600
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2028		500,000		559,310
									50,286,783
Oregon: 0.05%
Medford OR Hospital Facilities Authority (Health Revenue)		5.00			10-1-2020		1,155,000		1,312,992
Pennsylvania: 8.19%
Adams County PA IDA Gettysburg College Project (Education Revenue)		5.00			8-15-2024		1,500,000		1,703,895
Adams County PA IDA Gettysburg College Project (Education Revenue)		5.00			8-15-2025		1,500,000		1,699,410
Allegheny County PA Hospital Development Authority Series B (Health Revenue, National Insured)		6.00			7-1-2025		2,605,000		3,495,233
Allegheny County PA Moon Area School District Series A (GO Revenue)		5.00			11-15-2024		3,400,000		4,268,972
Allegheny County PA Series 72 (GO Revenue)		5.25			12-1-2033		4,000,000		4,938,760

20 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Allegheny County PA Series 75 (GO Revenue) %%		5.00	%		11-1-2026	$	2,500,000	$	3,231,900
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		5,000,000		5,093,550
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue) ±		1.93			11-1-2039		10,000,000		10,079,100
Bucks County PA Water & Sewer Authority Water System (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2026		2,400,000		2,841,240
Central Dauphin PA School District (GO Revenue)		5.00			2-1-2029		825,000		1,045,580
Central Dauphin PA School District (GO Revenue)		5.00			2-1-2030		1,110,000		1,400,054
Central Greene PA School District Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			2-15-2019		865,000		952,512
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		5.65			12-15-2017		250,000		257,653
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2025		1,340,000		1,638,820
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2026		1,370,000		1,664,810
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2027		1,225,000		1,474,925
Delaware County PA Vocational & Technical School Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.25			11-1-2033		2,000,000		2,412,620
Delaware Valley PA Regional Finance Authority Series 2182 (Miscellaneous Revenue, Morgan Stanley Bank LIQ) 144Aø		0.64			7-1-2017		7,500,000		7,500,000
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Bayerische Landesbank LOC) ø		0.54			6-1-2042		8,400,000		8,400,000
Johnstown PA School District (GO Revenue, AGM Insured)		5.00			8-1-2024		2,730,000		3,190,961
Lancaster County PA Solid Waste Management Authority Series A (Resource Recovery Revenue)		5.25			12-15-2028		5,665,000		6,926,935
Lycoming County PA Authority Pennsylvania College of Technology (Education Revenue)		5.50			7-1-2026		4,000,000		4,769,440
Millcreek Richland Joint Authority Pennsylvania Series B (Water & Sewer Revenue, AGC Insured)		4.70			8-1-2017		195,000		200,405
Moon Area PA School District Series A (GO Revenue)		5.00			11-15-2029		1,000,000		1,220,350
Northampton County PA General Purpose Hospital Authority St. Luke’s Hospital Project Series C (Health Revenue) ±		4.50			8-15-2032		1,170,000		1,174,926
Northeastern Pennsylvania Hospital & Education Authority Series A (Education Revenue)		5.00			3-1-2026		515,000		635,098
Northeastern Pennsylvania Hospital & Education Authority Series A (Education Revenue)		5.00			3-1-2028		660,000		804,738
Pennsylvania HEFAR Series AQ (Education Revenue)		5.00			6-15-2023		6,090,000		7,458,971
Pennsylvania HEFAR Series AR (Education Revenue)		5.00			6-15-2025		1,000,000		1,261,600
Pennsylvania HEFAR Series AS (Education Revenue)		5.00			6-15-2024		1,530,000		1,904,085
Pennsylvania HEFAR Series AS (Education Revenue)		5.00			6-15-2025		1,575,000		1,987,020
Pennsylvania HEFAR Series AS (Education Revenue)		5.00			6-15-2027		1,790,000		2,261,289
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2019		880,000		941,222
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2020		590,000		638,870
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2022		1,310,000		1,440,266
Pennsylvania Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		1,460,000		1,588,130
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2024		2,000,000		2,245,200
Pennsylvania Public School Building Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			5-15-2021		500,000		557,370
Pennsylvania Public School Building Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			5-15-2022		1,000,000		1,107,310
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2020		5,600,000		6,200,040
Pennsylvania Public School Building Authority (Education Revenue)		5.00			5-1-2023		2,185,000		2,642,736

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania Public School Building Authority (Education Revenue)		5.00	%		6-15-2025	$	2,265,000	$	2,775,667
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2029		1,000,000		1,092,200
Pennsylvania Public School Building Authority Series A (Miscellaneous Revenue, AGM Insured) %%		5.00			12-1-2030		8,300,000		10,243,694
Pennsylvania Public School Building Authority Series B (Miscellaneous Revenue, AGM Insured)		5.00			6-1-2029		2,000,000		2,438,580
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2024		1,250,000		1,549,700
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		1,250,000		1,570,900
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		1,250,000		1,564,225
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		1,010,000		1,257,420
Pennsylvania Series 2 (GO Revenue)		5.00			4-15-2023		2,000,000		2,222,020
Pennsylvania Turnpike Commission Sub Series B (Transportation Revenue)		5.00			6-1-2029		10,000,000		12,276,200
Pennsylvania Turnpike Commission Sub Series C (Transportation Revenue, AGM Insured)		6.25			6-1-2033		1,350,000		1,830,519
Pennsylvania Turnpike Commission Sub Series E (Transportation Revenue) ¤		0.00			12-1-2038		2,000,000		2,537,080
Philadelphia PA Authority for Industrial Development (Education Revenue)		5.88			6-15-2022		1,000,000		1,102,690
Philadelphia PA Authority for Industrial Development (Education Revenue)		6.13			6-15-2023		1,305,000		1,457,698
Philadelphia PA Authority for Industrial Development (Education Revenue)		7.00			5-1-2026		740,000		797,875
Philadelphia PA Gas Works 8th General Ordinance Series A (Utilities Revenue)		5.00			8-1-2016		1,000,000		1,003,840
Philadelphia PA Hospital & HEFAR Refunding Bond Temple University Health System Series B (Health Revenue)		6.25			7-1-2023		1,475,000		1,536,021
Philadelphia PA IDA Master Charter School (Education Revenue)		5.00			8-1-2020		510,000		542,951
Philadelphia PA IDA West Philadelphia Achievement Charter Elementary School Project (Education Revenue)		6.25			5-1-2021		285,000		301,744
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		8,065,000		8,627,534
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2021		2,200,000		2,477,552
Philadelphia PA School District Refunding Bond Series D (GO Revenue)		5.00			9-1-2022		3,750,000		4,236,225
Philadelphia PA School District Refunding Bond Series E (GO Revenue)		5.25			9-1-2021		1,490,000		1,654,332
Philadelphia PA Series A (GO Revenue)		5.00			9-15-2021		7,000,000		8,298,150
Philadelphia PA Series A (GO Revenue)		5.00			8-1-2024		1,000,000		1,235,970
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2026		3,000,000		3,649,860
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2028		2,590,000		3,196,630
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2029		4,410,000		5,432,459
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2032		4,380,000		5,344,476
Pittsburgh PA Series A (GO Revenue)		4.00			9-1-2022		1,000,000		1,156,550
Pittsburgh PA Series A (GO Revenue)		5.00			9-1-2022		2,060,000		2,504,054
Pittsburgh PA Series A (GO Revenue)		5.00			9-1-2023		3,810,000		4,612,043
Reading PA School District (GO Revenue)		5.00			4-1-2021		3,120,000		3,524,882
									219,307,737
Puerto Rico: 0.05%
Puerto Rico Public Improvement Refunding Bond Series A (Tax Revenue, National Insured)		5.50			7-1-2016		1,350,000		1,350,135
Rhode Island: 0.18%
Providence RI Series A (GO Revenue, AGM Insured)		4.00			1-15-2018		2,115,000		2,205,437
Rhode Island Health & Educational Building Corporation Providence Public Schools Financing Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			5-15-2022		2,425,000		2,516,932
									4,722,369

22 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
South Carolina: 1.36%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00	%		1-1-2017	$	35,996	$	32,576
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		39,781		29,835
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2021		1,000,000		1,176,940
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2022		1,250,000		1,495,500
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2025		1,000,000		1,252,070
Lee County SC School Facilities Incorporated Series 2006 (Miscellaneous Revenue, AGC Insured)		6.00			12-1-2016		590,000		602,956
Piedmont SC Municipal Power Agency Series A-3 (Utilities Revenue)		5.25			1-1-2019		3,500,000		3,727,850
Scago SC Educational Facilities Corporation For Sumter County School District 17 (Miscellaneous Revenue)		4.00			12-1-2019		1,000,000		1,084,990
Scago SC Educational Facilities Corporation For Sumter County School District 17 (Miscellaneous Revenue)		5.00			12-1-2022		1,720,000		2,034,777
South Carolina Education Assistance Authority Student Loan Series I (Education Revenue)		5.00			10-1-2024		2,675,000		2,906,816
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2028		700,000		875,889
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2030		1,885,000		2,331,745
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2031		2,155,000		2,653,538
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.00			11-1-2033		1,000,000		1,128,350
South Carolina Public Service Authority Series A (Utilities Revenue)		5.00			12-1-2037		12,215,000		15,015,380
									36,349,212
South Dakota: 0.04%
Rapid City SD Airport Project (Airport Revenue)		6.25			12-1-2026		920,000		1,035,083
Tennessee: 0.34%
Chattanooga TN Health Educational & Housing Facilities University of Tennessee at Chattanooga Project (Housing Revenue)		5.00			10-1-2023		750,000		905,115
Franklin County TN HEFA (Education Revenue)		4.00			9-1-2024		250,000		285,583
Franklin County TN HEFA (Education Revenue)		5.00			9-1-2030		560,000		667,425
Shelby County TN Health Educational & Housing Facilities Board Le Bonheur Children’s Medical Center Series D (Health Revenue, National Insured)		5.50			8-15-2019		445,000		476,720
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.00			9-1-2016		500,000		503,510
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		2,140,000		2,240,494
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		1,400,000		1,519,784
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2027		2,000,000		2,464,580
									9,063,211
Texas: 9.69%
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2023		3,805,000		4,742,704
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2024		3,970,000		5,043,647
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2025		2,050,000		2,653,438
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2026		1,450,000		1,872,922
Austin TX Refunding Bond (Water & Sewer Revenue)		5.00			11-15-2030		2,000,000		2,590,020
Austin TX Refunding Bond (Utilities Revenue, National Insured)		5.25			5-15-2025		1,400,000		1,752,520
Bexar County TX Combination Tax Certificate of Obligation (GO Revenue)		5.00			6-15-2024		1,000,000		1,266,770
Bexar County TX Limited Tax Refunding Bond (GO Revenue) %%		4.00			6-15-2032		2,000,000		2,303,540
Bexar County TX Limited Tax Refunding Bond (GO Revenue) %%		5.00			6-15-2026		2,140,000		2,743,694
Bexar County TX Limited Tax Refunding Bond (GO Revenue) %%		5.00			6-15-2027		3,205,000		4,071,824
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2026		2,190,000		2,767,175

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00	%		9-1-2029	$	1,500,000	$	1,867,185
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2030		2,500,000		3,094,700
Central Texas Regional Mobility Authority Prerefunded Senior Lien (Transportation Revenue)		5.75			1-1-2019		985,000		1,106,362
Central Texas Regional Mobility Authority Series B (Transportation Revenue) ±		5.00			1-1-2045		8,000,000		9,047,600
Central Texas Regional Mobility Authority Unrefunded Senior Lien (Transportation Revenue)		5.75			1-1-2019		325,000		362,720
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2023		1,350,000		1,674,905
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2026		1,000,000		1,286,600
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2027		1,300,000		1,650,116
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2022		1,515,000		1,769,687
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2023		1,395,000		1,662,993
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2026		1,000,000		1,223,370
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2030		1,130,000		1,344,067
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2031		1,000,000		1,182,640
Cypress-Fairbanks TX Independent School District Series B-2 (GO Revenue) ±		3.00			2-15-2040		11,010,000		11,493,779
Del Rio TX Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2023		720,000		827,503
Del Rio TX Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2024		745,000		864,319
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2023		1,990,000		2,473,590
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2024		1,145,000		1,450,589
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2025		1,000,000		1,260,170
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2030		1,000,000		1,258,170
El Paso County TX Hospital District (GO Revenue)		5.00			8-15-2028		2,045,000		2,409,399
El Paso County TX Refunding Bond Series A (GO Revenue)		5.00			2-15-2031		2,000,000		2,495,120
El Paso County TX Refunding Bond Series A (GO Revenue)		5.00			2-15-2032		2,120,000		2,634,397
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		4.00			3-1-2026		755,000		893,550
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2020		650,000		745,388
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2021		510,000		600,296
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2022		1,000,000		1,204,430
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2023		620,000		764,547
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2024		1,660,000		2,090,621
Fort Bend TX Independent School District Various School Building Series A (GO Revenue) ±		0.66			8-1-2040		1,220,000		1,220,098
Galveston TX Wharves & Terminal (Airport Revenue)		5.00			2-1-2026		2,000,000		2,243,360
Georgetown TX Independent School District (GO Revenue) ±		2.00			8-1-2034		1,630,000		1,662,030
Harris County TX Flood Control District Series A (GO Revenue)		5.00			10-1-2025		1,500,000		1,914,420
Harris County TX Road Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		4,215,000		5,490,290
Harris County TX Road Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		8,445,000		10,763,068
Harris County TX Toll Road Project Series C (GO Revenue, AGM Insured)		5.25			8-15-2027		4,000,000		5,357,080
Hays County TX Refunding Bond (GO Revenue)		5.00			2-15-2023		1,750,000		2,147,110
Houston TX Airport Senior Lien Series A (Airport Revenue)		5.00			7-1-2025		1,000,000		1,082,660
Houston TX Higher Education Finance Corporation Series A (Education Revenue)		4.00			2-15-2022		740,000		789,476
Houston TX Independent School District Limited Tax (GO Revenue)		4.25			2-15-2021		5,000,000		5,113,600
Houston TX Utilities Systems Series A (Water & Sewer Revenue)		5.25			11-15-2031		3,000,000		3,528,060
Lower Colorado River TX Authority (Utilities Revenue)		5.50			5-15-2031		2,500,000		3,097,425
Midland County TX PFFA Compass Pointe Apartments (Housing Revenue)		1.25			3-1-2018		2,500,000		2,507,150
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2027		1,880,000		2,263,539
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2029		2,390,000		2,816,735

24 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date			Principal		Value
Texas (continued)
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25	%		1-1-2030		$	1,500,000	$	1,789,830
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2031			1,000,000		1,189,200
North Harris County TX Regional Water Authority Senior Lien (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-15-2029			1,215,000		1,496,916
North Texas Health Facilities Development Corporation United Regional Health Care System (Health Revenue, AGM Insured)		5.00			9-1-2016			1,135,000		1,143,251
North Texas Higher Education Authority Incoming Student Loan Series A-2 (Education Revenue) ±		1.53			7-1-2030			7,185,000		7,185,790
Northside TX Independent School District Refunding Bond (GO Revenue) ±		1.20			8-1-2040			605,000		607,644
Northwest TX Independent School District Refunding Bond (GO Revenue)		5.00			2-15-2030			4,000,000		5,014,640
Nueces River TX Water Supply Facility Corpus Christi Lake Texana Project (Water & Sewer Revenue)		5.00			7-15-2026			1,000,000		1,289,730
Nueces River TX Water Supply Facility Corpus Christi Lake Texana Project (Water & Sewer Revenue)		5.00			7-15-2027			1,250,000		1,598,913
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series B (Resource Recovery Revenue) ø		0.54			12-1-2039			15,000,000		15,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.54			12-1-2039			14,600,000		14,600,000
San Antonio TX Junior Lien Series B (Utilities Revenue) ±		1.75			12-1-2027			5,000,000		5,079,150
Texas Independent School District Refunding Bond (GO Revenue)		5.00			8-15-2025			2,260,000		2,941,752
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.88			9-15-2017	��		3,505,000		3,492,277
Texas Municipal Gas Acquisition & Supply Corporation III Series 2012 (Utilities Revenue)		5.00			12-15-2021			3,945,000		4,638,847
Texas Municipal Gas Acquisition & Supply Corporation Series B (Utilities Revenue)		5.00			12-15-2022			5,000,000		5,995,000
Texas Private Activity Surface Transportation Corporation Project (Transportation Revenue)		7.50			6-30-2032			2,000,000		2,457,200
Texas Private Activity Surface Transportation Corporation Project (Transportation Revenue)		7.50			6-30-2033			2,000,000		2,457,200
Texas Private Activity Surface Transportation Corporation Project Senior Lien Note (Transportation Revenue)		7.50			12-31-2031			3,745,000		4,510,104
Texas SA Energy Acquisition Public Facility Corporation Gas Supply (Utilities Revenue)		5.25			8-1-2016			5,660,000		5,681,451
Texas SA Energy Acquisition Public Facility Corporation Gas Supply (Utilities Revenue)		5.50			8-1-2019			1,465,000		1,653,370
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.65			4-1-2026			10,000,000		10,000,000
Texas Woman’s University Financing System (Education Revenue)		4.00			7-1-2020			1,000,000		1,116,590
University of Houston Texas (Education Revenue)		5.00			2-15-2024			2,700,000		2,988,117
University of Houston Texas Series B (Education Revenue)		5.25			7-1-2026			4,225,000		5,647,642
University of Texas Board of Regents Series D (Education Revenue) %%		5.00			8-15-2026			2,000,000		2,661,260
Waco TX Health Facilities Development Corporation Hillcrest System Project Series A (Health Revenue, National/FHA Insured)		5.00			8-1-2016			920,000		923,560
Weatherford TX Utility System Refunding & Improvement Bond (Utilities Revenue, AGM Insured)		5.00			9-1-2025			1,000,000		1,261,950
Weatherford TX Utility System Refunding & Improvement Bond (Utilities Revenue, AGM Insured)		5.00			9-1-2026			375,000		469,999
										259,434,551

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Utah: 0.17%
Canyons UT Board of Education Utah School Bond Guaranty Program (GO Revenue, AGM Insured)		5.00	%		6-15-2022	$	1,860,000	$	2,272,883
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2020		250,000		274,815
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2021		400,000		446,480
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2022		400,000		451,576
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2023		400,000		456,680
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2024		450,000		519,989
									4,422,423
Virgin Islands: 0.29%
Virgin Islands PFA (Miscellaneous Revenue)		6.75			10-1-2019		2,480,000		2,694,396
Virgin Islands PFA Sub Lien Series C (Miscellaneous Revenue)		5.00			10-1-2017		5,000,000		5,195,300
									7,889,696
Virginia: 1.63%
Greater Richmond VA Convention Center (Tax Revenue)		5.00			6-15-2025		1,000,000		1,278,270
Marquis VA CDA CAB Series C (Tax Revenue) (i)¤		0.00			9-1-2041		1,772,000		247,584
Marquis VA CDA Convertible CAB (Tax Revenue) 144A¤		0.00			9-1-2045		386,000		254,911
Marquis VA CDA Series B (Tax Revenue) (i)		5.63			9-1-2041		1,274,000		1,038,501
Virginia College Building Authority Educational Facilities Series A (Education Revenue) %%		3.00			9-1-2025		13,630,000		15,303,219
Virginia Public School Authority Special Obligation Financing & Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2026		10,000,000		13,332,800
Virginia Resources Authority Pooled Financing Program Series A (Miscellaneous Revenue)		4.00			11-1-2025		2,370,000		2,893,178
Virginia Resources Authority Pooled Financing Program Series A (Miscellaneous Revenue)		5.00			11-1-2027		1,320,000		1,742,506
Virginia Small Business Financing Authority (Education Revenue)		5.25			10-1-2029		3,000,000		3,722,790
Virginia Transportation Board Capital Projects Bond (Miscellaneous Revenue)		5.00			5-15-2026		2,505,000		3,312,437
Watkins Centre VA CDA (Miscellaneous Revenue)		5.40			3-1-2020		582,000		583,310
									43,709,506
Washington: 2.85%
Energy Northwest Washington Wind Project (Utilities Revenue)		5.00			7-1-2022		1,185,000		1,418,872
Kent WA Limited Tax Refunding Bond (GO Revenue)		5.00			12-1-2031		1,000,000		1,265,610
Kent WA Limited Tax Refunding Bond (GO Revenue)		5.00			12-1-2032		2,000,000		2,520,980
King County WA Federal Way School District #210 (GO Revenue, AGM Insured)		4.00			12-1-2023		4,085,000		4,830,145
Lewis County WA Public Utility District Refunding (Utilities Revenue)		5.25			4-1-2032		6,115,000		7,628,034
Seattle WA Refunding Bond Series A (GO Revenue)		5.00			6-1-2024		6,345,000		8,092,032
Tacoma WA Solid Waste Refunding Bond Series B (Resource Recovery Revenue) %%		5.00			12-1-2027		620,000		777,573
Tacoma WA Solid Waste Refunding Bond Series B (Resource Recovery Revenue) %%		5.00			12-1-2028		1,455,000		1,819,739
Tacoma WA Solid Waste Refunding Bond Series B (Resource Recovery Revenue) %%		5.00			12-1-2029		1,525,000		1,900,760

26 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Washington (continued)
Tumwater Office Properties Washington Office Buildings (Miscellaneous Revenue)		5.00	%		7-1-2026	$	2,750,000	$	3,418,250
Washington EDFA (Education Revenue)		5.00			6-1-2028		1,000,000		1,240,120
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2023		4,000,000		4,798,480
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2026		2,250,000		2,801,498
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2027		1,050,000		1,288,928
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2028		1,350,000		1,644,881
Washington Motor Vehicle Fuel Tax Refunding Bond Series D (Miscellaneous Revenue)		5.00			7-1-2031		5,830,000		7,263,539
Washington TES Properties (Miscellaneous Revenue)		5.50			12-1-2029		1,400,000		1,592,906
Washington Various Purpose Refunding Bond Series A (Miscellaneous Revenue) %%		5.00			8-1-2027		4,000,000		5,200,120
Washington Various Purpose Refunding Bond Series B (GO Revenue)		5.00			7-1-2025		8,000,000		10,338,160
Washington Various Purpose Refunding Bond Series B (GO Revenue)		5.00			7-1-2028		3,130,000		4,013,849
Washington Various Purpose Refunding Bond Series B (GO Revenue)		5.00			7-1-2030		2,000,000		2,544,700
									76,399,176
West Virginia: 0.28%
West Virginia School Building Authority (Miscellaneous Revenue)		5.25			7-1-2020		1,100,000		1,200,980
West Virginia School Building Authority Series A (Miscellaneous Revenue)		5.00			7-1-2026		1,520,000		1,941,496
West Virginia School Building Authority Series A (Miscellaneous Revenue)		5.00			7-1-2027		1,595,000		2,028,872
West Virginia School Building Authority Series A (Miscellaneous Revenue)		5.00			7-1-2029		1,755,000		2,213,195
									7,384,543
Wisconsin: 0.68%
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue, Ambac Insured)		5.50			2-15-2019		600,000		627,162
Wisconsin HEFA Mercy Alliance Incorporated Project Series A (Health Revenue)		5.00			6-1-2019		1,050,000		1,100,148
Wisconsin HEFA Series A (Health Revenue)		5.00			7-15-2021		3,500,000		4,127,515
Wisconsin HEFA Series A (Health Revenue)		5.00			11-15-2023		3,500,000		4,352,215
Wisconsin HEFA Series M (Health Revenue, National Insured) ±(m)(n)		0.74			6-1-2019		1,000,000		968,750
Wisconsin PFA Central District Development Project (Education Revenue)		5.00			3-1-2036		4,500,000		5,392,440
Wisconsin PFA Charter School Voyager Foundation Incorporate Project Series A (Education Revenue)		6.00			10-1-2032		1,475,000		1,631,512
									18,199,742
Total Municipal Obligations (Cost $2,552,799,827)									2,704,777,725
	Yield					Shares
Short-Term Investments: 0.76%
Investment Companies: 0.74%
Wells Fargo National Tax-Free Money Market Fund Premier Class ##(l)(u)		0.27					19,871,388		19,871,388
						Principal
U.S. Treasury Securities: 0.02%
U.S. Treasury Bill (z)#		0.22			9-15-2016	$	500,000		499,772
Total Short-Term Investments (Cost $20,371,151)									20,371,160

Total investments in securities (Cost $2,573,170,978) *	101.82	%		2,725,148,885
Other assets and liabilities, net	(1.82	)		(48,712,056	)
Total net assets	100.00	%	$	2,676,436,829

Portfolio of investments—June 30, 2016 Wells Fargo Intermediate Tax/AMT-Free Fund 27

%% The security is issued on a when-issued basis.

¤ The security is issued in zero coupon form with no periodic interest payments.

± Variable rate investment. The rate shown is the rate in effect at period end.

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end.

## All or a portion of this security is segregated for when-issued securities.

(i) Illiquid security for which the designation as illiquid is unaudited.

(s) The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

(n) The auction to set the interest rate on the security failed at period end due to insufficient investor interest. A failed auction does not itself cause a default.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

(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 $2,573,233,309 and unrealized gains (losses) consists of:

Gross unrealized gains	$	156,105,295
Gross unrealized losses		(4,189,719	)
Net unrealized gains	$	151,915,576

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 0.50%
Consumer Discretionary: 0.50%
Diversified Consumer Services: 0.50%
Toll Road Investors Partnership II 144A ¤		0.00	%		2-15-2028	$	30,780,000	$	14,660,083
Total Corporate Bonds and Notes (Cost $15,367,850)									14,660,083
Municipal Obligations: 98.14%
Alabama: 1.07%
Alabama State University General Tuition and Fee Revenue Bonds (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25			8-1-2032		10,520,000		10,522,735
Birmingham AL CAB Series A1 (GO Revenue) ±		0.00			3-1-2045		3,000,000		3,170,700
Jefferson County AL CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2026		3,000,000		2,076,300
Jefferson County AL Limited Obligation School District Series A (Tax Revenue, AGM Insured)		5.25			1-1-2018		775,000		779,526
Jefferson County AL Limited Obligation School District Series A (Tax Revenue)		5.25			1-1-2020		3,000,000		3,017,520
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		5,495,000		5,879,925
Jefferson County AL Sewer Revenue Warrants CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2025		710,000		523,057
Jefferson County AL Sewer Revenue Warrants CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2029		4,115,000		2,317,239
Jefferson County AL Warrants Series C (GO Revenue)		4.90			4-1-2021		3,170,000		3,383,436
									31,670,438
Alaska: 0.45%
Alaska International Airports System Series B (Airport Revenue) %%		5.00			10-1-2033		3,080,000		3,797,147
Alaska International Airports System Series B (Airport Revenue) %%		5.00			10-1-2034		3,225,000		3,969,846
Valdez AK Marine Terminal (Transportation Revenue) ø		0.58			5-1-2031		5,500,000		5,500,000
									13,266,993
Arizona: 0.80%
Phoenix AZ IDA Legacy Traditional Schools Project Series A (Education Revenue) 144A		6.50			7-1-2034		2,000,000		2,387,900
Pima County AZ IDA Acclaim Charter School Project (Education Revenue)		5.60			12-1-2016		125,000		125,566
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		7,510,000		7,528,400
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		6,495,000		6,514,680
Pima County AZ IDA Noah Webster Schools-PIMA Project (Education Revenue)		7.00			12-15-2043		3,225,000		3,750,901
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.25			12-1-2020		1,000,000		1,127,760
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.38			12-1-2021		1,000,000		1,147,310
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.50			12-1-2022		1,000,000		1,142,970
									23,725,487
California: 10.30%
Alameda County CA Certificate of Participation (Miscellaneous Revenue, National Insured) ¤		0.00			6-15-2019		1,400,000		1,327,466
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		2,175,000		1,436,218
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		3,795,000		2,412,747

2 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00	%		8-1-2034	$	5,000,000	$	2,900,300
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2035		6,700,000		3,729,086
Alhambra CA Unified School District CAB Series B (GO Revenue, AGC Insured) ¤		0.00			8-1-2031		7,500,000		4,923,075
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		8,500,000		10,292,735
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2037		1,305,000		689,301
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2038		1,900,000		982,167
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2039		2,005,000		1,003,663
Bay Area CA Toll Authority Toll Bridge Revenue Series A (Transportation Revenue) ±		1.66			4-1-2036		28,000,000		27,660,920
Bay Area CA Toll Authority Toll Bridge Revenue Series G-1 (Transportation Revenue, U.S. Bank NA LOC) ø		0.39			4-1-2047		10,300,000		10,300,000
California HFFA Children’s Hospital of Orange County Series C (Health Revenue, U.S. Bank NA LOC) ø		0.39			11-1-2038		14,900,000		14,900,000
California HFFA Unrefunded Bond Providence Health Services Series C (Health Revenue) (h)		6.50			10-1-2038		10,050,000		11,373,484
California Municipal Finance Authority Charter School Revenue Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		2,230,000		2,584,637
California Public Works Board Department of General Services Buildings 8 & 9A (Miscellaneous Revenue)		6.25			4-1-2034		4,000,000		4,642,960
California Public Works Board Judicial Council Project Series A (Miscellaneous Revenue)		5.00			3-1-2031		3,260,000		3,935,537
California Series B-3 (GO Revenue, Bank of America NA LOC) ø		0.39			5-1-2033		10,000,000		10,000,000
California Statewide CDA (Health Revenue) ø		0.40			4-1-2038		11,650,000		11,650,000
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.00			7-1-2020		525,000		554,715
California Statewide CDA Sutter Health Series A (Health Revenue)		6.00			8-15-2042		4,900,000		5,956,293
Cerritos CA Community College District CAB Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2027		1,000,000		774,790
Cerritos CA Community College District CAB Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2028		1,040,000		775,081
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		1,000,000		656,410
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		1,000,000		634,310
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2033		1,000,000		611,440
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2032		2,515,000		1,412,223
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2033		2,000,000		1,067,220
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2036		510,000		242,286
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2028		1,165,000		837,903
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2029		1,500,000		1,034,505
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2030		2,000,000		1,318,500
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2031		2,000,000		1,263,880
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2032		1,660,000		1,009,313

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00	%		6-1-2033	$	1,230,000	$	722,441
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2034		1,615,000		915,963
Gilroy CA Unified School District Prerefunded CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2032		6,470,000		4,803,587
Gilroy CA Unified School District Unrefunded CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2032		3,330,000		2,097,167
Golden State Tobacco Securitization Corporation California Tobacco Settlement Series A (Miscellaneous Revenue)		5.00			6-1-2030		970,000		1,176,707
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		6.13			11-1-2029		15,925,000		21,528,689
Montebello CA Unified School District CAB Election of 1998 (GO Revenue, National Insured) ¤		0.00			8-1-2024		1,130,000		941,098
Montebello CA Unified School District CAB Election of 1998 (GO Revenue, National Insured) ¤		0.00			8-1-2027		2,775,000		2,086,439
Morongo Band of Mission Indians California Enterprise Casino Series B (Miscellaneous Revenue) 144A		6.50			3-1-2028		2,000,000		2,165,740
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.14			7-1-2027		27,660,000		25,234,495
Ontario Montclair CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2028		1,500,000		1,097,295
Ontario Montclair CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2030		2,000,000		1,369,180
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2027		2,095,000		1,568,736
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2028		4,450,000		3,218,819
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2029		4,520,000		3,156,226
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2030		6,725,000		4,380,934
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2031		2,185,000		1,373,491
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2032		2,000,000		1,232,620
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2033		4,295,000		2,525,932
Richmond CA Joint Powers Financing Authority Civic Center Project Series A (Miscellaneous Revenue, AGC Insured)		5.88			8-1-2037		25,000		28,298
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		5,420,000		6,212,783
San Bernardino CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2031		1,100,000		1,320,220
San Bernardino CA Unified School District Series A (GO Revenue, AGM Insured)		5.00			8-1-2026		1,100,000		1,353,187
San Bernardino CA Unified School District Series A (GO Revenue, AGM Insured)		5.00			8-1-2028		1,250,000		1,523,025
San Buenaventura CA Community Mental Health System (Health Revenue)		6.00			12-1-2019		1,040,000		1,175,210
San Buenaventura CA Community Mental Health System (Health Revenue)		6.25			12-1-2020		2,000,000		2,345,280
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2033		1,000,000		1,247,440
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2034		1,080,000		1,342,073
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2035		1,000,000		1,237,900
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2031		2,000,000		1,321,740
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2032		1,500,000		953,715
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2033		1,000,000		612,910
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2034		2,000,000		1,172,160
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2035		1,500,000		855,015
Sylvan CA Unified School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2037		1,085,000		573,097
Tender Option Bond Trust Receipts for Los Angeles CA Series ZF0183 (Miscellaneous Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.56			12-1-2022		8,925,000		8,925,000
Tender Option Bond Trust Receipts for Palomar CA Pomerado Health Series XG0017 (GO Revenue, Bank of America NA LIQ) 144Aø		0.69			8-1-2037		31,250,000		31,250,000

4 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Tender Option Bond Trust Receipts for San Jose CA Series B (Airport Revenue, Ambac/AGM Insured, JPMorgan Chase & Company LIQ) 144Aø		0.61	%		9-1-2030	$	8,900,000	$	8,900,000
West Contra Costa CA Unified School District CAB Series C (GO Revenue, AGM Insured) ¤		0.00			8-1-2029		3,000,000		2,142,960
West Contra Costa CA Unified School District Election of 2005 Series C-1 (GO Revenue, AGC Insured) ¤		0.00			8-1-2029		1,690,000		1,208,756
Wiseburn CA School District CAB Election of 2010 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2034		2,530,000		1,456,749
									303,646,242
Colorado: 1.78%
Colorado E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00			9-1-2020		9,385,000		8,762,211
Colorado E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00			9-1-2022		4,600,000		4,108,490
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.13			12-1-2033		2,200,000		2,572,108
Colorado ECFA Charter School Banning Lewis Ranch Academy Project (Education Revenue) 144A		6.13			12-15-2035		3,940,000		3,957,848
Colorado ECFA Charter School Community Leadership (Education Revenue)		5.75			7-1-2019		555,000		575,790
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		5.50			10-1-2017		115,000		118,660
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		7.25			10-1-2039		500,000		572,880
Colorado ECFA Community Leadership Academy Incorporated Second Campus Project (Education Revenue)		7.00			8-1-2033		1,330,000		1,589,430
Colorado ECFA Rocky Mountain Classical Academy Project Series A (Education Revenue)		7.50			9-1-2033		5,015,000		5,265,951
Colorado ECFA Rocky Mountain Classical Academy Project Series A (Education Revenue)		8.00			9-1-2043		5,930,000		6,358,917
Colorado ECFA Rocky Mountain Classical Academy Project Series A (Education Revenue)		8.13			9-1-2048		3,795,000		4,084,938
Colorado ECFA Twin Peaks Charter Academy (Miscellaneous Revenue)		6.50			3-15-2043		1,290,000		1,450,166
Colorado Health Facilities Authority Catholic Health Initiatives Series D1 (Health Revenue)		6.25			10-1-2033		4,000,000		4,486,160
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		2,160,000		2,371,961
Colorado PFA Charter School Highline Academy Project (Education Revenue)		6.25			12-15-2020		335,000		359,274
Colorado PFA Charter School Highline Academy Project (Education Revenue)		6.75			12-15-2025		455,000		494,112
Colorado PFA Charter School Highline Academy Project (Education Revenue)		7.38			12-15-2040		4,010,000		4,437,667
Eagle County CO Airport Terminal Corporation Airport Terminal Improvement Project Series A (Airport Revenue)		5.15			5-1-2017		35,000		35,084
Eagle County CO Airport Terminal Corporation Airport Terminal Improvement Project Series B (Airport Revenue)		5.25			5-1-2020		750,000		751,823
									52,353,470
Connecticut: 0.44%
Connecticut HEFA Eastern Connecticut Health Network Series A (Health Revenue, AGC Insured)		6.38			7-1-2016		250,000		250,043
Connecticut HFA Special Needs Housing Series 2 (Health Revenue, Ambac Insured)		5.25			6-15-2022		1,315,000		1,320,168
Connecticut Series A (Miscellaneous Revenue) ±		1.51			4-15-2019		4,050,000		4,074,057
Connecticut Series A (Miscellaneous Revenue) ±		1.66			4-15-2020		5,900,000		5,960,357
Hamden CT BAN (GO Revenue)		5.00			8-15-2026		1,235,000		1,448,062
									13,052,687

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Delaware: 0.86%
Delaware EDA Delmarva Power and Light Company Series A (Utilities Revenue) ø		0.50	%		7-1-2024	$	10,000,000	$	10,000,000
Delaware EDA Odyssey Charter School Incorporated Project Series A (Education Revenue) 144A		7.00			9-1-2045		7,500,000		7,784,850
Kent County DE Charter School Incorporated Project (Education Revenue)		7.38			5-1-2037		2,110,000		2,475,853
New Castle County DE Series ZF2088 (GO Revenue, Morgan Stanley Bank LIQ) 144Aø		0.45			10-1-2045		5,000,000		5,000,000
									25,260,703
District of Columbia: 0.59%
District of Columbia Cesar Chavez Public Charter School (Education Revenue)		6.50			11-15-2021		4,125,000		4,592,651
District of Columbia Population Services International (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.48			11-1-2042		10,500,000		10,500,000
District of Columbia Water & Sewer Authority Public Utilities Series A (Water & Sewer Revenue)		6.00			10-1-2035		2,000,000		2,237,680
									17,330,331
Florida: 3.31%
Championsgate FL Community Development District Capital Improvement Series A (Miscellaneous Revenue)		6.25			5-1-2020		1,060,000		1,060,159
CityPlace Florida Community Development District (Miscellaneous Revenue)		5.00			5-1-2022		1,000,000		1,143,520
Collier County FL School Board Refunding Certificate of Participation (Miscellaneous Revenue, AGM Insured)		5.25			2-15-2021		1,000,000		1,183,900
Crossings At Fleming Island Florida Community Development District Refunding Bond Senior Lien Series A-1 (Miscellaneous Revenue)		4.00			5-1-2024		1,025,000		1,070,551
Crossings At Fleming Island Florida Community Development District Refunding Senior Lien Series A-1 (Miscellaneous Revenue)		2.25			5-1-2018		1,260,000		1,274,981
Crossings At Fleming Island Florida Community Development District Refunding Senior Lien Series A-1 (Miscellaneous Revenue)		2.63			5-1-2019		1,295,000		1,316,109
Daytona Beach FL Refunding & Improvement Project (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2031		1,155,000		1,391,475
Daytona Beach FL Refunding & Improvement Project (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2032		1,465,000		1,760,051
Florida Development Finance Corporation Educational Facilities Renaissance Charter School Project Series A (Education Revenue)		8.50			6-15-2044		13,290,000		15,771,642
Florida Housing Finance Corporation Journet Place Apartments Series 1 (Housing Revenue)		7.60			12-15-2047		810,000		1,050,465
Florida Housing Finance Corporation Villa Capri Phase III (Housing Revenue)		7.60			12-15-2042		2,720,000		3,087,880
Heritage Harbor Florida Community Development District (Miscellaneous Revenue)		7.75			5-1-2023		380,000		379,962
Holmes County FL Hospital Corporation Doctors Memorial Hospital Project (Health Revenue)		6.00			11-1-2038		2,500,000		2,506,775
Indigo FL Community Development District Series C (Miscellaneous Revenue) (i)(s)		1.40			5-1-2030		2,536,248		1,283,113
Lakeland FL Educational Facilities Authority Florida Southern College Project Series A (Education Revenue)		5.00			9-1-2025		530,000		624,308
Lakeland FL Educational Facilities Authority Florida Southern College Project Series A (Education Revenue)		5.00			9-1-2028		1,195,000		1,394,505
Lakeside Plantation FL Community Development District Series A (Miscellaneous Revenue)		6.95			5-1-2031		1,186,000		1,187,352
Marshall Creek Florida Community Development District (Miscellaneous Revenue)		6.32			5-1-2045		135,000		137,959
Marshall Creek Florida Community Development District (Miscellaneous Revenue)		6.63			5-1-2032		2,110,000		2,067,695

6 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date			Principal		Value
Florida (continued)
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		0.78	%		9-25-2024		$	15,000,000	$	15,000,000
Miami-Dade County FL Seaport Revenue Bond Series B (Airport Revenue)		6.00			10-1-2033			500,000		634,385
Midtown Miami FL Community Development District Parking Garage Project Series A (Miscellaneous Revenue)		5.00			5-1-2029			2,500,000		2,730,900
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)		5.00			10-1-2033			1,525,000		1,872,715
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)		5.00			10-1-2035			1,680,000		2,051,616
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)		5.00			10-1-2036			1,765,000		2,146,452
Palm Beach County FL Public Improvement Series 2 (Miscellaneous Revenue)		5.38			11-1-2028			2,000,000		2,219,200
Saint Petersburg FL Health Facilities Authority All Children’s Project Series A (Health Revenue)		6.50			11-15-2039			5,500,000		6,530,150
Seminole County FL IDA Choices in Learning Series A (Education Revenue)		6.20			11-15-2026			1,940,000		2,156,504
Seminole County FL IDA Choices in Learning Series A (Education Revenue)		7.38			11-15-2041			3,525,000		4,072,115
South Miami FL Health Facilities Baptist Health (Health Revenue)		5.00			8-15-2023	��		2,810,000		2,944,515
St. Johns County FL IDA Refunding Glenmoor Project Series A (Health Revenue) ±(s)		5.38			1-1-2049			750,000		509,993
St. Johns County FL IDA Refunding Subordinated Glenmoor Project Series B (Health Revenue) (s)(t)		2.50			1-1-2049			277,527		3
Tender Option Bond Trust Receipts for Seminole County FL Series ZF0444 (Tax Revenue, National Insured, JPMorgan Chase & Company LIQ) 144Aø		0.49			4-1-2027			5,250,000		5,250,000
Trout Creek Florida Community Development District (Miscellaneous Revenue)		4.88			5-1-2025			2,545,000		2,638,223
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2020			2,020,000		2,187,539
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2021			2,140,000		2,353,401
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2022			2,265,000		2,511,613
										97,501,726
Georgia: 0.76%
Cobb County GA Development Authority Charter Learning Center Foundation Central Project Series A (Education Revenue)		6.38			7-1-2025			1,920,000		1,918,042
Georgia Municipal Association Certificate of Participation City Court Atlanta Project (Miscellaneous Revenue, Ambac Insured)		5.50			12-1-2016			2,175,000		2,175,305
Georgia Municipal Association Certificate of Participation City Court Atlanta Project (Miscellaneous Revenue, Ambac Insured)		5.50			12-1-2017			2,220,000		2,220,311
Georgia Municipal Association Certificate of Participation City Court Atlanta Project (Miscellaneous Revenue, Ambac Insured)		5.50			12-1-2018			2,500,000		2,500,350
Georgia Municipal Electric Authority Power Series EE (Utilities Revenue, Ambac Insured)		7.25			1-1-2024			400,000		558,152
Georgia Private Colleges & Universities Authority Series A (Education Revenue)		5.25			10-1-2027			2,000,000		2,345,120
Georgia Road & Tollway Authority Toll Revenue CAB I-75 South Expressway Lanes Project Series A (Transportation Revenue) 144A¤		0.00			6-1-2034			3,750,000		1,288,725
Georgia Road & Tollway Authority Toll Revenue Convertible CAB I-75 South Expressway Lanes Project Series B (Transportation Revenue) 144A±		0.00			6-1-2049			5,600,000		3,444,000
Tender Option Bond Trust Receipts Series ZF0210 (Health Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.56			2-2-2023			5,900,000		5,900,000
										22,350,005

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Guam: 0.14%
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.38	%		12-1-2024	$	3,195,000	$	3,639,009
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.00			7-1-2019		450,000		498,879
Guam Housing Corporation Guaranteed Mortgage-Backed Securities Series A (Housing Revenue, FHLMC Insured)		5.75			9-1-2031		60,000		65,426
									4,203,314
Hawaii: 0.11%
Hawaii Series DZ (GO Revenue)		5.00			12-1-2031		2,700,000		3,203,091
Idaho: 0.63%
Boise-Kuna ID Irrigation District Arrowrock Hydroelectric Project (Utilities Revenue)		7.38			6-1-2040		6,300,000		7,101,423
Idaho Health Facilities Authority Trinity Health Credit Group Series B (Health Revenue)		6.25			12-1-2033		3,000,000		3,396,780
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		5.75			12-1-2032		500,000		562,940
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		6.50			12-1-2038		1,405,000		1,498,545
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		5.85			5-1-2033		730,000		782,246
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		6.25			5-1-2043		1,365,000		1,496,559
Idaho Housing & Finance Association Liberty Charter School Series A (Education Revenue)		6.00			6-1-2038		500,000		521,765
Idaho Housing & Finance Association Nonprofit Facilities Revenue CAB North Star Charter School Series A (Education Revenue)		6.75			7-1-2048		1,322,876		1,363,263
Idaho Housing & Finance Association Nonprofit Facilities Revenue CAB North Star Charter School Series B (Education Revenue) 144A¤		0.00			7-1-2049		1,276,564		135,635
Idaho Housing & Finance Association Series A (Education Revenue)		6.13			7-1-2038		1,500,000		1,573,155
									18,432,311
Illinois: 19.21%
Chicago IL (Tax Revenue)		5.00			1-1-2028		4,430,000		5,054,896
Chicago IL (Tax Revenue)		5.00			1-1-2029		1,500,000		1,678,275
Chicago IL Board of Education CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2025		9,935,000		7,347,429
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		9,455,000		7,317,886
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2029		7,885,000		4,562,340
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2020		1,000,000		874,020
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2031		2,705,000		1,405,302
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2023		1,430,000		1,106,777
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2026		4,000,000		2,698,720
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2028		24,270,000		14,819,505

8 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00	%		12-1-2030	$	4,550,000	$	2,492,581
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2031		10,000,000		5,183,300
Chicago IL Board of Education Series A (GO Revenue, National Insured) ¤		0.00			12-1-2027		4,040,000		2,592,064
Chicago IL Board of Education Series C (GO Revenue, AGM Insured)		5.25			12-1-2023		1,500,000		1,589,700
Chicago IL Board of Education Series D (GO Revenue, AGM Insured)		5.00			12-1-2025		1,430,000		1,477,090
Chicago IL CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2030		5,745,000		3,387,769
Chicago IL CAB Project & Refunding Series A (GO Revenue, National Insured) ±		5.56			1-1-2021		3,520,000		3,568,928
Chicago IL CAB Project & Refunding Series C (GO Revenue, AGM Insured) ¤		0.00			1-1-2026		7,360,000		5,233,770
Chicago IL CAB Series C (GO Revenue) ¤		0.00			1-1-2031		4,945,000		2,167,146
Chicago IL Motor Fuel Tax Revenue Refunding (Tax Revenue)		5.00			1-1-2025		2,595,000		2,844,509
Chicago IL Motor Fuel Tax Revenue Refunding (Tax Revenue)		5.00			1-1-2026		3,000,000		3,269,880
Chicago IL Motor Fuel Tax Revenue Refunding (Tax Revenue)		5.00			1-1-2028		1,000,000		1,076,350
Chicago IL Neighborhoods Alive 21 Program Series B (GO Revenue)		5.50			1-1-2034		1,500,000		1,537,860
Chicago IL O’Hare International Airport (Airport Revenue, AGM Insured)		5.50			1-1-2043		4,530,000		5,379,828
Chicago IL O’Hare International Airport (Airport Revenue)		5.75			1-1-2038		7,500,000		9,049,500
Chicago IL O’Hare International Airport AMT Passenger Facility Charge Series B (Airport Revenue)		5.00			1-1-2026		5,000,000		5,800,550
Chicago IL O’Hare International Airport AMT Senior Lien Series A (Airport Revenue)		5.00			1-1-2025		2,000,000		2,322,500
Chicago IL O’Hare International Airport AMT Senior Lien Series C (Airport Revenue)		5.50			1-1-2044		4,000,000		4,739,800
Chicago IL O’Hare International Airport Customer Facility Charge Senior Lien Series D (Airport Revenue)		5.75			1-1-2043		4,500,000		5,420,655
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue)		5.75			1-1-2039		2,760,000		3,243,883
Chicago IL Public Building Commission Transit Authority (Transportation Revenue, Ambac Insured)		5.25			3-1-2025		2,960,000		3,464,650
Chicago IL Public Building Commission Transit Authority (Transportation Revenue, Ambac Insured)		5.25			3-1-2027		3,400,000		4,038,724
Chicago IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2028		9,550,000		10,366,048
Chicago IL Series A (GO Revenue, National Insured)		5.00			1-1-2029		4,000,000		4,056,280
Chicago IL Series A (Tax Revenue)		5.25			1-1-2038		6,000,000		6,540,240
Chicago IL Series A (GO Revenue)		5.50			1-1-2033		12,730,000		13,060,089
Chicago IL Series A (GO Revenue)		5.50			1-1-2034		7,175,000		7,356,097
Chicago IL Series A (GO Revenue)		5.50			1-1-2035		920,000		941,942
Chicago IL Series B (GO Revenue)		5.50			1-1-2032		1,285,000		1,319,207
Chicago IL Transit Authority Sales Tax Receipts Revenue Bonds (Tax Revenue, AGM Insured)		5.00			12-1-2044		4,000,000		4,728,280
Chicago IL Waste Water Transmission Second Lien Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		2,500,000		2,539,225
Chicago IL Wastewater Second Lien Transmission (Water & Sewer Revenue)		5.00			1-1-2027		4,000,000		4,513,320
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2029		4,600,000		5,289,218
Chicago IL Water Revenue Second Lien (Water & Sewer Revenue)		5.00			11-1-2030		5,000,000		5,737,600
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		3,000,000		3,399,540
Cook County IL Series C (GO Revenue, AGM Insured)		5.00			11-15-2024		4,240,000		4,964,489
Cook County IL Series C (GO Revenue)		5.00			11-15-2025		2,140,000		2,472,171
Cook County IL Series C (GO Revenue)		5.00			11-15-2027		325,000		373,812
Cook County IL Series G (GO Revenue)		5.00			11-15-2028		27,000,000		29,765,610
DeKalb-Kane-Lasalle Counties IL Kishwaukee Community College District #523 Series B (GO Revenue) ¤		0.00			2-1-2019		725,000		697,900

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois (GO Revenue)		5.00	%		1-1-2023	$	1,245,000	$	1,250,578
Illinois (GO Revenue, Ambac Insured)		5.00			4-1-2024		1,830,000		1,844,768
Illinois (Miscellaneous Revenue)		5.00			8-1-2024		2,610,000		2,887,756
Illinois (Miscellaneous Revenue)		5.00			8-1-2025		5,685,000		6,262,937
Illinois (GO Revenue, AGM Insured)		5.00			4-1-2026		3,000,000		3,511,140
Illinois (GO Revenue, Ambac Insured)		5.00			4-1-2027		7,585,000		7,646,211
Illinois (GO Revenue, Ambac Insured)		5.00			4-1-2028		6,705,000		6,759,109
Illinois (Miscellaneous Revenue)		5.25			7-1-2030		2,500,000		2,804,250
Illinois (Miscellaneous Revenue)		5.50			7-1-2025		6,000,000		6,941,100
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		4,450,000		5,135,834
Illinois (GO Revenue)		5.50			1-1-2030		2,900,000		3,526,864
Illinois (Miscellaneous Revenue)		5.50			7-1-2038		4,000,000		4,493,040
Illinois Finance Authority Advocate Healthcare Network Series D (Health Revenue)		6.50			11-1-2038		5,415,000		6,147,704
Illinois Finance Authority Carle Foundation Obligated Group Series C (Health Revenue, Northern Trust Company LOC) ø		0.42			2-15-2033		10,000,000		10,000,000
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2018		1,325,000		1,416,147
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2020		1,465,000		1,649,942
Illinois Finance Authority Charter School Refunding Bond Series A (Education Revenue)		6.88			10-1-2031		1,865,000		2,070,001
Illinois Finance Authority Charter Schools Series A (Education Revenue)		6.25			9-1-2039		7,955,000		9,464,302
Illinois Finance Authority Charter Schools Series A (Education Revenue)		7.13			10-1-2041		3,800,000		4,252,238
Illinois Finance Authority Medical District Commission Project A (Health Revenue, AGC Insured)		4.13			9-1-2018		515,000		517,297
Illinois Finance Authority Northwest Community Hospital Series B (Health Revenue, JPMorgan Chase & Company LOC) ø		0.42			7-1-2032		10,005,000		10,005,000
Illinois Finance Authority Northwestern Memorial Hospital Project Series A (Health Revenue)		6.00			8-15-2039		5,000,000		5,836,300
Illinois Finance Authority OSF Healthcare System Series F (Health Revenue, Barclays Bank plc LOC) ø		0.42			11-15-2037		10,000,000		10,000,000
Illinois Finance Authority Student Housing Illinois State University (Education Revenue)		6.75			4-1-2031		8,000,000		9,208,160
Illinois Finance Authority University of Chicago Series B (Education Revenue)		6.25			7-1-2038		3,115,000		3,462,198
Illinois Finance Authority YMCA of Metropolitan Chicago Project (Miscellaneous Revenue, Harris NA LOC) ø		0.46			6-1-2034		5,000,000		5,000,000
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2030		7,000,000		8,606,080
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2031		8,000,000		9,791,200
Illinois Series 1 (GO Revenue, National Insured)		6.00			11-1-2026		3,200,000		3,907,552
Illinois Series 2013 (Miscellaneous Revenue)		5.00			7-1-2022		6,750,000		7,547,513
Illinois Series A (GO Revenue)		5.00			4-1-2021		6,675,000		7,364,661
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		3,000,000		3,487,530
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.00			6-15-2028		4,030,000		4,687,172
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.25			6-15-2032		3,500,000		4,078,025
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2021		7,595,000		6,752,107
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		17,510,000		14,214,443
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2025		1,040,000		814,736
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2025		3,745,000		4,413,370
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2026		4,775,000		5,602,221

10 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00	%		6-15-2027	$	8,355,000	$	9,747,695
Illinois Toll Highway Authority Series B (Transportation Revenue)		5.00			1-1-2039		1,500,000		1,786,740
Kane-Cook-DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		8,225,000		7,477,759
Kane-Cook-DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		15,025,000		12,750,666
Kendall-Kane-Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2025		1,710,000		1,366,068
Kendall-Kane-Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤	��	0.00			2-1-2026		5,050,000		3,869,260
Kendall-Kane-Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2027		12,050,000		8,805,658
Lake County IL School District #24 Millburn CAB (GO Revenue, National Insured) ¤		0.00			1-1-2024		2,000,000		1,612,640
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2018		3,800,000		3,666,544
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		675,000		632,880
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2020		1,250,000		1,138,425
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2021		1,175,000		1,037,913
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2024		5,385,000		4,313,816
Lake County IL Township High School District #126 Zion-Benton CAB (GO Revenue, National Insured) ¤		0.00			2-1-2020		910,000		852,497
McHenry-Kane Counties IL Community Consolidated School District #158 (GO Revenue)		5.63			1-15-2032		2,500,000		3,006,575
McHenry-Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2019		765,000		745,584
McHenry-Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2021		6,250,000		5,625,938
McHenry-Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, AGM/FGIC Insured) ¤		0.00			1-1-2023		1,805,000		1,547,607
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2026		11,435,000		8,308,214
Metropolitan Pier & Exposition Authority Illinois Series 2015-XM0036 (Airport Revenue, Morgan Stanley Bank LIQ) 144Aø		1.00			6-15-2050		12,640,000		12,640,000
Regional Transportation Authority Illinois (Tax Revenue, AGM Insured)		5.75			6-1-2023		400,000		493,684
Sangamon County IL School District #186 Certificate of Participation Hay-Edwards Elementary School Project Series A (Miscellaneous Revenue, ACA Insured)		5.88			8-15-2018		1,815,000		1,784,127
Southwestern Illinois Development Authority Local Government Program Collinsville Limited (Tax Revenue)		5.00			3-1-2025		2,525,000		2,163,622
Springfield IL Senior Lien Notes (Utilities Revenue, National Insured)		5.00			3-1-2024		1,425,000		1,466,496
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2023		350,000		518,039
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, National Insured) ¤		0.00			4-1-2026		2,355,000		1,826,609
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, National Insured) ¤		0.00			4-1-2027		2,435,000		1,816,315
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue)		5.75			4-1-2038		14,000,000		15,893,220
Will County IL Community Unified School District #201 U Crete-Monee CAB (GO Revenue, National Insured) ¤		0.00			11-1-2023		1,500,000		1,244,190
									566,365,522

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Indiana: 1.37%
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25	%		9-1-2034	$	5,000,000	$	5,696,800
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series A (Industrial Development Revenue)		5.00			7-1-2035		9,970,000		11,444,762
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series A (Industrial Development Revenue)		5.00			7-1-2040		2,470,000		2,810,020
Indianapolis IN Local Public Improvement Bond Bank Airport Authority Project Series F (Miscellaneous Revenue, Ambac Insured)		5.00			1-1-2023		2,750,000		2,750,330
Rockport IN AEP Generating Company Project (Industrial Development Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.43			7-1-2025		16,200,000		16,200,000
Valparaiso IN Pratt Paper LLC Project (Industrial Development Revenue)		5.88			1-1-2024		1,270,000		1,499,654
									40,401,566
Iowa: 0.17%
Altoona IA Annual Appropriation Urban Renewal Series C (GO Revenue) %%		5.00			6-1-2031		1,805,000		2,202,660
Coralville IA Certificate of Participation Series D (Miscellaneous Revenue)		5.25			6-1-2026		2,695,000		2,696,590
									4,899,250
Kansas: 1.20%
Sedgwick & Shawnee Counties KS Mortgage-Backed Securities Series A2 (Housing Revenue, GNMA Insured)		6.70			6-1-2029		70,000		70,610
Wyandotte County & Kansas City KS Sales Tax Special Obligation Vacation Village Project Area 4 - Major Multi-Sport Athletic Complex Project CAB Series 2015 (Tax Revenue) 144A¤		0.00			9-1-2034		97,000,000		35,246,890
Wyandotte County & Kansas City KS Unified Government Special Obligation Second Lien CAB Series B (Tax Revenue) ¤		0.00			6-1-2021		45,000		34,244
									35,351,744
Kentucky: 1.69%
Kentucky EDFA Balance Norton Series B (Health Revenue, National Insured) ¤		0.00			10-1-2028		4,845,000		3,393,438
Kentucky EDFA Catholic Health Initiatives Series B (Health Revenue) ±		1.79			2-1-2046		22,715,000		22,343,610
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, National Insured) ¤		0.00			10-1-2024		9,260,000		7,479,024
Kentucky EDFA Series 2980 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.73			8-15-2024		10,500,000		10,500,000
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series C (Transportation Revenue) ±		0.00			7-1-2033		1,000,000		882,430
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series C (Transportation Revenue) ±		0.00			7-1-2034		1,505,000		1,323,136
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series B (Transportation Revenue) ¤		0.00			7-1-2030		2,000,000		1,144,080
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series B (Transportation Revenue) ¤		0.00			7-1-2031		2,780,000		1,485,632
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project Series B (Transportation Revenue) ¤		0.00			7-1-2032		2,500,000		1,246,650
									49,798,000
Louisiana: 0.78%
Louisiana Local Government Environmental Facilities (Miscellaneous Revenue, Ambac Insured)		5.25			12-1-2018		2,085,000		2,165,001
Louisiana Tobacco Settlement Financing Corporation Revenue Bonds Series A (Tobacco Revenue)		5.00			5-15-2025		2,410,000		2,416,242

12 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Louisiana (continued)
New Orleans LA (GO Revenue, FGIC Insured)		5.50	%		12-1-2021	$	2,050,000	$	2,324,003
New Orleans LA Aviation Board AMT Series B (Airport Revenue, AGM Insured)		5.00			1-1-2033		3,000,000		3,583,980
New Orleans LA Aviation Board AMT Series B (Airport Revenue)		5.00			1-1-2034		4,500,000		5,311,620
New Orleans LA Aviation Board Gulf Opportunity Zone Consolidated Rental Car Series A (Airport Revenue)		6.50			1-1-2040		6,500,000		7,290,270
									23,091,116
Maine: 0.08%
Maine Educational Loan Authority Student Loan Series A-3 Class A (Education Revenue, AGC Insured)		5.88			12-1-2039		2,015,000		2,241,385
Maryland: 0.31%
Howard County MD Certificate of Participation Agricultural Land Preservation #90-23 Series A (Miscellaneous Revenue)		8.00			8-15-2020		296,000		366,587
Prince Georges County MD Charter School Chesapeake Lighthouse Obligated Group Series A (Education Revenue) 144A		6.90			8-1-2041		8,480,000		8,888,906
									9,255,493
Massachusetts: 0.73%
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		8.00			4-15-2031		2,150,000		2,655,465
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		8.00			4-15-2039		3,900,000		4,816,890
Massachusetts Educational Finance Authority Series B (Education Revenue)		5.38			1-1-2020		1,780,000		1,927,900
Massachusetts Educational Finance Authority Series I (Education Revenue)		6.00			1-1-2028		1,790,000		1,906,493
Massachusetts Educational Finance Authority Series J (Education Revenue)		5.00			7-1-2020		6,000,000		6,733,380
Massachusetts Educational Finance Authority Series J (Education Revenue)		5.00			7-1-2021		3,000,000		3,406,530
									21,446,658
Michigan: 5.74%
Detroit MI Distribution of State Aid (GO Revenue)		5.00			11-1-2030		2,330,000		2,552,818
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2018		3,050,000		2,826,496
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2019		3,050,000		2,717,276
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2020		2,070,000		1,740,125
Detroit MI Water Supply System Second Lien Series B (Water & Sewer Revenue, AGM Insured)		7.00			7-1-2036		9,675,000		10,999,121
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2026		1,075,000		1,279,078
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2028		1,450,000		1,708,361
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2029		1,350,000		1,563,462
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2030		1,775,000		2,074,886
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2031		1,425,000		1,660,196
Michigan Finance Authority Limited Obligation Holly Academy (Education Revenue)		6.50			10-1-2020		155,000		166,306
Michigan Finance Authority Limited Obligation Holly Academy (Education Revenue)		8.00			10-1-2040		1,350,000		1,563,935
Michigan Finance Authority Limited Obligation Series A (Miscellaneous Revenue)		7.50			12-1-2020		310,000		340,888
Michigan Finance Authority Limited Obligation Series A (Miscellaneous Revenue)		8.00			12-1-2030		1,135,000		1,291,573
Michigan Finance Authority Limited Obligation Series A (Miscellaneous Revenue)		8.25			12-1-2039		2,220,000		2,553,044
Michigan Finance Authority Public School Academy University Learning (Education Revenue)		6.25			11-1-2020		440,000		469,660
Michigan Finance Authority Refunding Bond Local Government Loan Program City of Detroit Financial Recovery Series F (Tax Revenue)		4.50			10-1-2029		3,000,000		3,361,380

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D4 (Water & Sewer Revenue)		5.00	%		7-1-2031	$	6,500,000	$	7,703,085
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2036		3,250,000		3,802,598
Michigan Finance Authority Refunding Notes Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		12,625,000		14,496,656
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2025		2,000,000		2,443,360
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2026		1,945,000		2,360,938
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2027		2,260,000		2,724,814
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2028		3,480,000		4,180,141
Michigan Finance Authority Revenue Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2032		5,750,000		6,814,268
Michigan Finance Authority Revenue Local Government Loan Program Series D (Water & Sewer Revenue, National Insured)		5.00			7-1-2027		1,000,000		1,205,670
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2031		1,340,000		1,602,707
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2032		2,000,000		2,387,140
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2033		2,975,000		3,538,614
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2034		3,670,000		4,353,244
Michigan Finance Authority Revenue Series H-1 (Tax Revenue)		5.00			10-1-2039		7,955,000		9,325,806
Michigan Hospital Finance Authority Hospice of Michigan (Miscellaneous Revenue, Fifth Third Bank LOC) ø		0.52			9-1-2027		1,000,000		1,000,000
Michigan Municipal Bond Authority Local Government Loan Program CAB Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2017		365,000		357,722
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2021		150,000		151,349
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2017		550,000		562,859
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		4.25			12-1-2016		2,770,000		2,795,955
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2017		2,475,000		2,535,464
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.25			12-1-2023		1,185,000		1,204,991
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		3.75			5-1-2017		450,000		455,400
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.00			5-1-2019		100,000		101,217
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.75			5-1-2027		4,610,000		4,667,671
Michigan Municipal Bond Authority Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2019		75,000		69,514
Michigan Municipal Bond Authority Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2020		205,000		184,352
Michigan Public Educational Facilities Authority Bradford Academy Project (Education Revenue)		8.75			9-1-2039		3,500,000		2,800,070
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue) 144A		6.50			9-1-2037		3,745,000		2,996,075

14 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue)		8.50	%		9-1-2029	$	1,500,000	$	1,200,030
Michigan Public Educational Facilities Authority Limited Obligation Crescent Academy (Education Revenue)		7.00			10-1-2036		1,195,000		1,267,154
Michigan Public Educational Facilities Authority Limited Obligation Nataki Talibah (Miscellaneous Revenue) (i)(s)(t)		6.25			10-1-2023		800,000		239,976
Michigan Public Educational Facilities Authority Madison Academy Project (Education Revenue)		8.38			12-1-2030		2,085,000		2,403,609
Michigan Public Educational Facilities Authority Madison Academy Project (Education Revenue)		8.63			12-1-2039		4,170,000		4,857,633
Michigan Strategic Fund Limited Obligation Detroit Edison Company Exempt Facilities Project Series KT (Utilities Revenue)		5.63			7-1-2020		1,200,000		1,398,732
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		15,500,000		15,915,865
Oakland County MI Economic Development Corporation The Academy of The Sacred Heart Project Series A (Education Revenue)		6.50			12-15-2036		4,505,000		4,578,251
Star International Academy Michigan (Miscellaneous Revenue)		3.40			3-1-2017		100,000		100,618
Tender Option Bond Trust Receipts for Michigan Housing Development Authority Series XF0385 (Housing Revenue, AGM Insured, Bank of America NA LIQ) 144Aø		0.72			10-1-2042		1,000,000		1,000,000
Wayne Charter County MI Airport Authority Junior Lien (Airport Revenue, National Insured)		5.00			12-1-2016		1,115,000		1,133,476
Wayne County MI Building Improvement Series A (GO Revenue)		6.75			11-1-2039		8,910,000		9,511,069
									169,296,698
Minnesota: 0.03%
Baytown Township MN St. Croix Preparatory Academy Series A (Education Revenue)		7.00			8-1-2038		750,000		766,755
Mississippi: 1.01%
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project Series A (Water & Sewer Revenue, AGM Insured)		5.00			9-1-2030		8,155,000		9,719,374
Perry County MS PCR Leaf River Forest Products Incorporated Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.60			2-1-2022		20,000,000		20,000,000
									29,719,374
Missouri: 0.59%
Blue Springs MO Special Obligation Tax Refunding & Improvement Adams Farm Project Series A (Tax Revenue)		4.00			6-1-2026		10,875,000		11,365,245
Manchester MO Highway 141 Manchester Road Project (Tax Revenue)		6.00			11-1-2025		1,430,000		1,520,376
St. Louis MO IDA Convention Center Hotel (Miscellaneous Revenue, Ambac Insured) ¤		0.00			7-15-2019		2,475,000		2,354,542
St. Louis MO Lambert St. Louis International Airport Series A-1 (Airport Revenue)		6.25			7-1-2029		2,000,000		2,267,200
									17,507,363
Nebraska: 0.04%
Nebraska Central Plains Energy Project #3 (Utilities Revenue)		5.00			9-1-2027		1,020,000		1,189,657
Nevada: 0.67%
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2022		490,000		549,270
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2023		385,000		436,717

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Nevada (continued)
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00	%		6-1-2024	$	260,000	$	296,013
Tender Option Bond Trust Receipts for Las Vegas Valley NV Water District (GO Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.61			6-1-2020		5,000,000		5,000,000
Washoe County NV Series 2011-001 (GO Revenue, Dexia Credit Local LIQ) 144Aø		0.76			12-9-2030		13,555,000		13,555,000
									19,837,000
New Jersey: 5.44%
Bayonne NJ School Refunding Bonds (GO Revenue, AGM Insured)		5.00			7-15-2023		2,505,000		3,031,401
New Jersey EDA Natural Gas Company Project Series C (Utilities Revenue, National Insured) ±		4.90			10-1-2040		5,680,000		5,701,754
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.64			9-1-2025		1,315,000		1,183,789
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.96			9-1-2027		22,245,000		19,992,916
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		2.01			3-1-2028		7,200,000		6,459,624
New Jersey EDA School Facilities Construction Project Series II (Miscellaneous Revenue)		5.00			3-1-2026		4,000,000		4,419,640
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue)		5.00			3-1-2026		15,000,000		16,738,500
New Jersey TTFA (Transportation Revenue)		6.00			12-15-2038		10,425,000		11,574,461
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2029		7,500,000		4,407,825
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2030		4,375,000		2,450,263
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		4,500,000		2,402,955
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2026		1,300,000		883,610
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			6-15-2042		5,540,000		6,073,834
New Jersey TTFA Series A (Miscellaneous Revenue, National Insured)		5.75			6-15-2023		2,000,000		2,428,820
New Jersey TTFA Series A (Miscellaneous Revenue, National Insured)		5.75			6-15-2025		10,000,000		12,550,800
New Jersey TTFA Series AA (Miscellaneous Revenue)		5.00			6-15-2044		1,000,000		1,110,730
New Jersey TTFA Series AA (Transportation Revenue)		5.25			6-15-2033		10,000,000		11,249,700
New Jersey TTFA Series B (Transportation Revenue)		5.25			6-15-2036		5,575,000		6,186,801
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		8,000,000		9,168,480
Newark NJ Housing Authority Port Newark Marine Terminal Rental (Miscellaneous Revenue, National Insured)		5.00			1-1-2032		7,620,000		9,650,425
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2025		5,000,000		5,738,550
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2026		2,205,000		2,512,928
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2027		6,035,000		6,822,507
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.25			7-15-2024		1,325,000		1,530,150
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2025		385,000		441,868
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2026		395,000		450,162
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2027		405,000		457,848
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.25			7-15-2024		375,000		433,061
Rutgers NJ State University Series L (Education Revenue)		5.00			5-1-2033		3,560,000		4,279,440
									160,332,842
New Mexico: 0.36%
New Mexico Mortgage Finance Authority SFMR Class I (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.35			3-1-2030		725,000		796,181
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.06			11-1-2039		10,000,000		9,922,300
									10,718,481

16 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New York: 11.77%
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65	%		2-1-2044	$	3,500,000	$	4,011,805
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		8.25			2-1-2041		9,790,000		11,490,229
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		6.50			11-15-2028		5,970,000		6,782,219
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		6.50			11-15-2028		2,030,000		2,312,251
Metropolitan Transportation Authority New York Services Contract Series 7 (Miscellaneous Revenue)		5.63			7-1-2016		790,000		790,111
Metropolitan Transportation Authority New York Subseries E-2 (Transportation Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.40			11-15-2050		15,000,000		15,000,000
Monroe County NY Industrial Development Agency Continuing Development Services Project (Industrial Development Revenue, Citizens Bank LOC) ø		0.65			7-1-2027		1,250,000		1,250,000
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		1.16			5-1-2018		1,520,000		1,517,994
New York Dormitory Authority Series B (Tax Revenue)		5.75			3-15-2036		10,000,000		11,361,000
New York NY Municipal Water Finance Authority 2nd General Resolution Series AA (Water & Sewer Revenue)		5.00			6-15-2044		17,400,000		20,342,514
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.00			6-15-2044		30,265,000		35,834,971
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.25			6-15-2044		9,800,000		11,800,082
New York NY Municipal Water Finance Authority 2nd General Resolution Series DD (Water & Sewer Revenue, JPMorgan Chase & Company SPA) ø		0.37			6-15-2043		10,000,000		10,000,000
New York NY Municipal Water Finance Authority 2nd General Resolution Series DD (Water & Sewer Revenue)		6.00			6-15-2040		11,625,000		12,815,749
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.00			6-15-2038		36,650,000		38,150,818
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.75			6-15-2040		1,150,000		1,263,574
New York NY Municipal Water Finance Authority Water & Sewer System Series DD (Water & Sewer Revenue)		5.00			6-15-2026		3,255,000		3,872,083
New York NY Municipal Water Finance Authority Water & Sewer System Unrefunded Balance (Water & Sewer Revenue)		5.75			6-15-2040		3,850,000		4,233,614
New York NY Series A-6 (GO Revenue, AGM Insured, Dexia Credit Local SPA) ø		0.60			11-1-2026		10,150,000		10,150,000
New York NY Series F-1 (GO Revenue)		5.00			3-1-2032		3,000,000		3,646,980
New York NY Series I Subseries I-7 (GO Revenue, Bank of America NA LOC) ø		0.39			4-1-2036		11,900,000		11,900,000
New York NY Transitional Finance Authority Building Aid Fiscal Year 2009 Series S-4 (Miscellaneous Revenue)		5.75			1-15-2039		2,500,000		2,819,925
New York NY Transitional Finance Authority Future Tax Secured Bonds Fiscal 2007 Series A (Tax Revenue, Dexia Credit Local SPA) ø		0.60			8-1-2022		20,500,000		20,500,000
New York NY Transitional Finance Authority Future Tax Secured Revenue Series I (Tax Revenue)		5.00			5-1-2033		5,395,000		6,597,761
New York NY Transitional Finance Authority Future Tax Secured Subordinate Bonds Series A (Tax Revenue)		5.00			8-1-2031		17,075,000		21,432,369
New York NY Transitional Finance Authority NYC Recovery Series 3 (Tax Revenue, Dexia Credit Local SPA) ø		0.64			11-1-2022		10,000,000		10,000,000
New York NY Transitional Finance Authority Series 3 Sub Series 3C (Tax Revenue, Dexia Credit Local SPA) ø		0.64			11-1-2022		6,135,000		6,135,000
New York NY Transitional Finance Authority Sub Series C3 (Tax Revenue, Dexia Credit Local SPA) ø		0.56			8-1-2031		24,200,000		24,200,000

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20	%		2-1-2017	$	20,920,000	$	20,928,368
Oyster Bay NY BAN Series C (GO Revenue)		4.00			6-1-2018		3,000,000		3,040,080
Suffolk NY Tobacco Securitization Corporation Series B (Tobacco Revenue)		4.50			6-1-2026		520,000		588,401
Suffolk NY Tobacco Securitization Corporation Series B (Tobacco Revenue)		5.00			6-1-2025		500,000		582,455
Tender Option Bond Trust Receipts (Housing Revenue, Bank of America NA LIQ) 144Aø		0.70			11-1-2038		4,600,000		4,600,000
Westchester County NY Local Development Corporation Pace University Series A (Education Revenue)		5.00			5-1-2034		1,750,000		2,007,075
Westchester County NY Local Development Pace University Series B (Education Revenue) ø		0.95			5-1-2044		5,000,000		5,000,000
									346,957,428
North Carolina: 0.64%
North Carolina Eastern Municipal Power Agency Series A (Utilities Revenue)		5.50			1-1-2026		1,250,000		1,397,600
North Carolina Eastern Municipal Power Agency Series C (Utilities Revenue)		6.75			1-1-2024		2,000,000		2,298,060
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.00			12-1-2029		5,000,000		5,637,850
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.25			12-1-2033		8,500,000		9,635,260
									18,968,770
Ohio: 2.73%
Akron OH Sewer System (Water & Sewer Revenue, Ambac Insured)		5.00			12-1-2016		1,500,000		1,525,965
Allen County OH Catholic Healthcare Series B (Health Revenue)		5.25			9-1-2027		3,825,000		4,446,869
Cleveland OH Airport System Revenue Series A (Airport Revenue)		5.00			1-1-2025		4,015,000		4,692,130
Cleveland OH Airport System Revenue Series A (Airport Revenue, AGM Insured)		5.00			1-1-2031		3,600,000		4,164,192
Kings OH Local School District (GO Revenue, National/FGIC Insured)		7.50			12-1-2016		235,000		241,911
Montgomery County OH Hospital Kettering Medical Center (Health Revenue, National Insured)		6.25			4-1-2020		2,500,000		2,725,950
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2026		1,500,000		1,835,745
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2028		1,600,000		1,937,808
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2030		2,250,000		2,702,835
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2035		12,000,000		14,202,720
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Industrial Development Revenue, AGM Insured)		5.00			12-31-2039		2,500,000		2,943,600
Ohio Turnpike Commission CAB Series A-4 (Transportation Revenue) ±		0.00			2-15-2034		8,500,000		8,643,140
Ohio Water Development Authority Pollution Control AMT Series C (Industrial Development Revenue) ±		3.95			11-1-2032		8,000,000		8,188,560
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		18,000,000		18,512,460
RiverSouth Authority Ohio Lazarus Building Redevelopment Series A (Miscellaneous Revenue)		5.75			12-1-2027		1,900,000		2,001,080
Toledo OH Enterprise Bond Series 2A (Industrial Development Revenue)		5.50			12-1-2019		1,475,000		1,577,424
									80,342,389

18 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma: 0.40%
Garfield County OK Educational Facilities Authority Enid Public Schools Project Series A (Miscellaneous Revenue)		5.00	%		9-1-2026	$	1,810,000	$	2,296,564
Garfield County OK Educational Facilities Authority Enid Public Schools Project Series A (Miscellaneous Revenue)		5.00			9-1-2030		2,000,000		2,489,160
Garfield County OK Educational Facilities Authority Enid Public Schools Project Series A (Miscellaneous Revenue)		5.00			9-1-2031		1,145,000		1,419,182
McGee Creek Authority Oklahoma Water Revenue (Water & Sewer Revenue, National Insured)		6.00			1-1-2023		3,795,000		4,300,152
Tulsa OK Airports Improvement Trust AMT Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2035		1,055,000		1,206,720
									11,711,778
Oregon: 0.18%
Deschutes County OR Hospital Facilities Authority Cascade Healthcare Community Incorporated Project (Health Revenue)		8.25			1-1-2038		4,500,000		5,338,980
Pennsylvania: 7.66%
Allegheny County PA Hospital Development Authority University of Pittsburgh Medical Center Series A (Health Revenue)		5.63			8-15-2039		5,130,000		5,837,684
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		1.93			11-1-2039		20,000,000		20,158,200
Bristol Township PA School District Series 27W Residual Interest Bonds Trust (GO Revenue, Barclays Bank plc LIQ) 144Aø		0.78			6-1-2031		12,790,000		12,790,000
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		6.25			12-15-2027		2,000,000		2,104,060
Delaware County PA IDA Resource Recovery Facility Series A (Resource Recovery Revenue)		6.20			7-1-2019		1,115,000		1,119,460
Delaware Valley PA Regional Finance Authority Local Government Public Improvements Project (Miscellaneous Revenue)		5.75			7-1-2032		5,000,000		6,806,400
Delaware Valley PA Regional Finance Authority Local Government Series C (Miscellaneous Revenue, Ambac Insured)		7.75			7-1-2027		3,975,000		5,954,590
Delaware Valley PA Regional Finance Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		16,420,000		21,281,634
Luzerne County PA Series E (GO Revenue, AGM Insured)		8.00			11-1-2027		135,000		154,707
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue)		5.00			4-1-2024		1,540,000		1,832,769
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue)		5.00			4-1-2025		1,625,000		1,959,214
Montgomery County PA IDA Exelon Generation Company LLC Project Series A (Industrial Development Revenue) ±		2.55			12-1-2029		15,530,000		15,967,014
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50			10-1-2030		10,625,000		10,839,200
Penn Hills Municipality PA Series B (GO Revenue, Ambac Insured) ¤		0.00			12-1-2017		1,000,000		981,560
Pennsylvania EDFA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2034		7,700,000		9,176,013
Pennsylvania Finance Authority Penn Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2025		3,440,000		2,700,125
Pennsylvania HEFAR (Education Revenue) ø		0.75			9-1-2045		12,075,000		12,075,000
Pennsylvania HFA Single Family Mortgage Revenue Bonds AMT Series A (Housing Revenue)		4.70			10-1-2037		3,655,000		3,668,962
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2024		3,960,000		4,445,496
Pennsylvania Public School Building Authority Series DCL-016 (Miscellaneous Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.88			6-1-2023		15,710,000		15,710,000

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania Turnpike Commission Motor License Series B1 (Transportation Revenue)		5.00	%		12-1-2040	$	12,410,000	$	14,050,478
Philadelphia PA Airport Revenue Bonds AMT Series A (Airport Revenue, AGM Insured)		5.00			6-15-2032		5,000,000		5,179,300
Philadelphia PA Airport Revenue Bonds AMT Series A (Airport Revenue, AGM Insured)		5.00			6-15-2037		10,000,000		10,327,400
Philadelphia PA IDA 1st Philadelphia Preparatory Charter School Project Series A (Education Revenue)		7.00			6-15-2033		2,000,000		2,393,420
Philadelphia PA IDA New Foundations Charter School Project (Education Revenue)		6.00			12-15-2027		285,000		321,822
Philadelphia PA School District Series A (GO Revenue)		5.00			9-1-2024		2,075,000		2,393,098
Philadelphia PA Series B (GO Revenue, Barclays Bank plc LOC) ø		0.42			8-1-2031		15,000,000		15,000,000
Philadelphia PA Water & Wastewater Bonds Series A (Water & Sewer Revenue)		5.00			7-1-2033		8,000,000		9,791,120
State Public School Building Authority Pennsylvania Philadelphia School District Project (Miscellaneous Revenue)		5.00			4-1-2022		2,635,000		2,984,348
State Public School Building Authority Pennsylvania Philadelphia School District Project Series A (Miscellaneous Revenue)		5.00			6-1-2024		2,250,000		2,588,153
Wilkes-Barre PA Finance Authority (Education Revenue)		5.00			3-1-2022		955,000		982,934
Wilkes-Barre PA Finance Authority (Education Revenue)		5.00			3-1-2022		645,000		661,480
York County PA IDA Philadelphia Electric Company Project Series A (Industrial Development Revenue) ±		2.55			6-1-2036		3,390,000		3,467,665
									225,703,306
Puerto Rico: 0.39%
Puerto Rico Electric Power Authority Refunding Bond Series KK (Utilities Revenue, National Insured)		5.50			7-1-2016		7,100,000		7,100,710
Puerto Rico Electric Power Authority Refunding Bond Series MM (Utilities Revenue, National Insured)		5.00			7-1-2017		150,000		154,595
Puerto Rico Highway & Transportation Authority Series AA (Transportation Revenue, National Insured)		5.50			7-1-2020		3,015,000		3,151,248
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Miscellaneous Revenue, Government Development Bank for Puerto Rico SPA) (s)(t)		5.50			8-1-2031		3,300,000		379,500
Puerto Rico Public Finance Corporation Commonwealth Appropriation Bond Series B (Tax Revenue, Government Development Bank for Puerto Rico SPA) (s)(t)		6.00			8-1-2024		7,000,000		805,000
									11,591,053
Rhode Island: 0.19%
Rhode Island Clean Water Finance Agency Cranston Wastewater Treatment System (Miscellaneous Revenue, National Insured)		5.80			9-1-2022		3,335,000		3,342,037
Rhode Island Commerce Corporation Series D (Airport Revenue) %%		5.00			7-1-2033		1,415,000		1,713,735
Rhode Island Commerce Corporation Series D (Airport Revenue) %%		5.00			7-1-2036		500,000		599,710
									5,655,482
South Carolina: 0.63%
Calhoun County SC Solid Waste Disposal Facilities Eastman Kodak Company Project (Industrial Development Revenue)		6.75			5-1-2017		400,000		419,764
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		164,621		148,980
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		181,929		136,445
Kershaw County SC Public Schools Kershaw County School District Project (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2021		2,870,000		2,924,013

20 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
South Carolina (continued)
Kershaw County SC Public Schools Kershaw County School District Project (Miscellaneous Revenue, AGC Insured)		5.00	%		12-1-2022	$	905,000	$	922,032
Kershaw County SC Public Schools Kershaw County School District Project (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2023		6,950,000		7,080,799
Lee County SC School Facilities Incorporated Series 2006 (Miscellaneous Revenue, AGC Insured)		6.00			12-1-2031		2,890,000		3,101,982
Piedmont SC Municipal Power Agency (Utilities Revenue, FGIC Insured)		6.75			1-1-2019		210,000		241,183
South Carolina Education Assistance Authority Student Loan Series I (Education Revenue)		5.10			10-1-2029		1,770,000		1,901,210
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.25			11-1-2045		1,500,000		1,707,900
									18,584,308
South Dakota: 0.26%
Rapid City SD Series A (Airport Revenue)		6.75			12-1-2031		1,020,000		1,178,977
Rapid City SD Series A (Airport Revenue)		7.00			12-1-2035		750,000		853,590
South Dakota HEFA Sanford Health Project (Health Revenue)		5.50			11-1-2040		5,000,000		5,653,550
									7,686,117
Tennessee: 0.49%
Memphis-Shelby County TN Industrial Development Board Boys & Girls Club Series A (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.48			1-1-2028		4,530,000		4,530,000
Shelby County TN Health Educational & Housing Facilities Board Methodist Le Bonheur Series B (Health Revenue, AGM Insured, U.S. Bank NA SPA) ø		0.42			6-1-2042		10,000,000		10,000,000
									14,530,000
Texas: 7.66%
Austin TX Airport System AMT (Airport Revenue)		5.00			11-15-2039		8,000,000		9,357,680
Austin TX Airport System AMT (Airport Revenue)		5.00			11-15-2044		3,500,000		4,076,870
Beasley TX Higher Education Finance Corporation Focus Learning Academy Series A (Education Revenue)		7.75			8-15-2041		2,000,000		2,046,200
Central Texas Regional Mobility Authority Senior Lien (Transportation Revenue)		5.75			1-1-2025		2,000,000		2,336,000
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2033		3,740,000		4,334,436
Clifton TX Higher Educational Finance Corporation Series A (Education Revenue)		5.75			8-15-2038		2,000,000		2,210,500
Dallas TX Independent School District School Building (GO Revenue, Permanent School Fund Insured)		6.38			2-15-2034		10,000,000		10,935,400
Grand Parkway Transportation Corporation TX CAB Series B (Transportation Revenue) ±		0.00			10-1-2029		1,015,000		942,478
Grand Parkway Transportation Corporation TX CAB Series B (Transportation Revenue) ±		0.00			10-1-2030		2,000,000		1,856,240
Gulf Coast TX IDA (Industrial Development Revenue, BNP Paribas LOC) ø		0.70			11-1-2019		4,850,000		4,850,000
Houston TX Housing Finance Corporation Cullen Park Apartments Series A (Housing Revenue, FNMA LIQ)		5.70			12-1-2033		965,000		972,556
La Vernia TX Higher Education Finance Corporation Lifeschool of Dallas Series A (Education Revenue)		6.25			8-15-2021		3,660,000		4,258,007
La Vernia TX Higher Education Finance Corporation Lifeschool of Dallas Series A (Education Revenue)		7.50			8-15-2041		6,500,000		7,811,700
La Vernia TX Higher Education Finance Corporation Series A (Education Revenue)		6.25			2-15-2017		170,000		174,865
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		4,495,000		4,739,034

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50	%		9-1-2034	$	2,255,000	$	2,377,424
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue)		6.75			10-1-2032		1,940,000		2,055,314
Lower Colorado TX River Authority Series A (Utilities Revenue)		5.00			5-15-2033		2,475,000		2,946,166
Newark TX ECFA A.W. Brown-Fellowship Leadership Academy Project Series A (Education Revenue)		6.00			8-15-2032		1,750,000		1,790,075
Newark TX ECFA A.W. Brown-Fellowship Leadership Academy Project Series A (Education Revenue)		6.00			8-15-2042		2,330,000		2,383,287
North Texas Tollway Authority Second Tier Revenue Series A (Transportation Revenue)		5.00			1-1-2035		4,000,000		4,826,360
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2033		3,600,000		4,371,588
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ø##		0.54			11-1-2040		25,000,000		25,000,000
Port Houston TX Authority Series D-1 (GO Revenue)		5.00			10-1-2035		10,000,000		11,626,000
San Leanna TX Education Facilities Corporation Street Edwards University Project (Education Revenue)		5.13			6-1-2022		1,735,000		1,788,837
San Leanna TX Education Facilities Corporation Street Edwards University Project (Education Revenue)		5.13			6-1-2023		1,000,000		1,030,290
San Leanna TX Education Facilities Corporation Street Edwards University Project (Education Revenue)		5.13			6-1-2024		750,000		772,380
Tarrant County TX Cultural Education Facilities Buckingham Senior Living Community Incorporated (Health Revenue)		3.88			11-15-2020		2,000,000		2,025,780
Tarrant County TX Cultural Education Facilities Finance Corporation Air Force Village Obligation Group (Health Revenue)		5.00			5-15-2017		1,400,000		1,431,052
Tarrant County TX Cultural Education Facilities Finance Corporation Series B (Health Revenue)		5.00			11-15-2030		4,000,000		4,631,720
Tarrant County TX Cultural Education Facilities Finance Corporation Texas Health Resources Series A (Health Revenue)		5.00			2-15-2023		9,900,000		10,171,260
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.88			9-15-2017		8,405,000		8,374,490
Texas Municipal Gas Acquisition & Supply Corporation Sub Lien Series C (Utilities Revenue) ±		1.88			12-15-2026		28,780,000		26,458,030
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		6.75			6-30-2043		4,000,000		5,007,880
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		12,500,000		15,916,125
Texas Transportation Commission Highway Improvement (Miscellaneous Revenue)		5.00			4-1-2028		7,280,000		9,129,047
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.65			4-1-2026		20,650,000		20,650,000
									225,665,071
Utah: 0.52%
Spanish Fork UT Charter School American Leadership Academy (Education Revenue) 144A		5.55			11-15-2021		1,030,000		1,048,272
Utah County UT Charter School Ronald Wilson Reagan Series A (Education Revenue)		5.75			2-15-2022		570,000		588,417
Utah State Charter School Finance Authority Early Light Academy Project (Education Revenue)		8.50			7-15-2046		6,480,000		7,281,770

22 Wells Fargo Municipal Bond Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Utah (continued)
Utah State Charter School Finance Authority Oquirrh Mountain Charter School Project (Education Revenue)		8.00	%		7-15-2030	$	1,940,000	$	2,124,416
Utah State Charter School Finance Authority Oquirrh Mountain Charter School Project (Education Revenue)		8.00			7-15-2041		3,910,000		4,281,685
									15,324,560
Vermont: 1.38%
Vermont Student Assistance Corporation Series B Class A2 (Education Revenue) ±		3.68			12-3-2035		16,800,000		17,451,000
Vermont Student Assistance Corporation Series B Class B (Education Revenue) ±		1.46			6-2-2042		23,782,086		23,353,533
									40,804,533
Virgin Islands: 0.32%
Virgin Islands PFA Series C (Miscellaneous Revenue)		5.00			10-1-2018		8,860,000		9,455,481
Virginia: 0.22%
Fairfax County VA Redevelopment & Housing Authority Housing for the Elderly Series A (Housing Revenue, FHA Insured)		6.00			9-1-2016		105,000		105,410
Marquis VA CDA CAB Series C (Tax Revenue) (i)¤		0.00			9-1-2041		1,824,000		254,849
Marquis VA CDA Convertible CAB (Tax Revenue) 144A±		0.00			9-1-2045		397,000		262,175
Marquis VA CDA Series B (Tax Revenue) (i)		5.63			9-1-2041		1,310,000		1,067,847
Riverside VA Regional Jail Authority (Miscellaneous Revenue)		5.00			7-1-2025		3,435,000		4,198,223
Watkins Centre VA CDA (Miscellaneous Revenue)		5.40			3-1-2020		609,000		610,370
									6,498,874
Washington: 0.26%
Spokane WA Housing Finance Commission Riverview Retirement Community Project (Health Revenue)		5.00			1-1-2023		1,545,000		1,738,926
Washington Health Care Facilities Authority Central Washington (Health Revenue)		7.00			7-1-2039		5,000,000		5,932,750
									7,671,676
West Virginia: 0.43%
West Virginia EDA Solid Waste Disposal Appalachian Power Company (Utilities Revenue, Mizuho Corporate Bank LOC) ø		0.72			2-1-2036		10,000,000		10,000,000
West Virginia Hospital Finance Authority Improvement Series D (Health Revenue, AGM Insured)		5.50			6-1-2033		2,305,000		2,570,836
									12,570,836
Wisconsin: 0.56%
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.00			8-1-2033		2,120,000		2,414,341
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.25			8-1-2043		4,650,000		5,364,240
Wisconsin HEFA Aurora Health Care Incorporated Series A (Health Revenue)		5.25			4-15-2024		1,025,000		1,166,020
Wisconsin HEFA Series M (Health Revenue, National Insured) ±(m)(n)		0.74			6-1-2019		2,700,000		2,615,625
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.00			8-1-2023		470,000		517,738
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.75			8-1-2033		1,430,000		1,629,342
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		7.00			8-1-2043		1,575,000		1,819,834
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		7.20			8-1-2048		940,000		1,092,713
									16,619,853

Portfolio of investments—June 30, 2016 Wells Fargo Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Wyoming: 0.79%
Sweetwater County WY PCR Refunding PacifiCorp Project Series A (Industrial Development Revenue) ø		0.52	%		1-1-2017	$	21,000,000	$	21,000,000
West Park Hospital District Wyoming Series B (Health Revenue)		6.50			6-1-2027		500,000		594,045
Wyoming CDA (Education Revenue)		6.50			7-1-2043		1,600,000		1,835,936
									23,429,981
Total Municipal Obligations (Cost $2,679,389,675)									2,893,326,178
	Yield					Shares
Short-Term Investments: 0.19%
Investment Companies: 0.08%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.30					2,204,064		2,204,064
						Principal
U.S. Treasury Securities: 0.11%
U.S. Treasury Bill (z)#		0.26			9-15-2016	$	3,325,000		3,323,480
Total Short-Term Investments (Cost $5,527,197)									5,527,544

Total investments in securities (Cost $2,700,284,722) *	98.83	%		2,913,513,805
Other assets and liabilities, net	1.17			34,457,016
Total net assets	100.00	%	$	2,947,970,821

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

¤ The security is issued in zero coupon form with no periodic interest payments.

± Variable rate investment. The rate shown is the rate in effect at period end.

%% The security is issued on a when-issued basis.

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end.

(h) Underlying security in an inverse floater structure

(s) The security is currently in default with regards to scheduled interest and/or principal payments.

(t) The Fund has stopped accruing interest on the security.

(i) Illiquid security for which the designation as illiquid is unaudited.

(n) The auction to set the interest rate on the security failed at period end due to insufficient investor interest. A failed auction does not itself cause a default.

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

## All or a portion of this security is segregated for when-issued securities.

(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 $2,701,438,187 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	221,205,311
	Gross unrealized losses		(9,129,693	)
	Net unrealized gains	$	212,075,618

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 0.22%
FHLMC Multifamily Variable Rate Demand Certificates Series M012 Class A1A		5.50	%		8-15-2051	$	7,000,000	$	7,017,500
FHLMC Multifamily Variable Rate Demand Certificates Series M012 Class A1A2		5.50			8-15-2051		5,300,000		5,313,250
Total Agency Securities (Cost $12,744,996)									12,330,750
Municipal Obligations: 95.63%
Alabama: 2.88%
Alabama Health Care Authority for Baptist Health Series B (Health Revenue, AGC Insured) ±(m)		0.80			11-15-2037		9,575,000		9,575,000
Alabama Health Care Authority for Baptist Health Series B (Health Revenue) ø		0.80			11-1-2042		17,000,000		17,000,000
Alabama HFA MFHR The Plaza Centennial Hill Phase 2 Series C (Housing Revenue) ±		0.55			6-15-2017		13,500,000		13,500,135
Alabama Port Authority Docks Facilities AMT Series A (Airport Revenue, National Insured)		5.00			10-1-2017		2,000,000		2,019,720
Chatom AL Industrial Development Board Alabama Electric Series A (Utilities Revenue, National Rural Utilities Cooperative Finance Corporation SPA) ±		1.00			8-1-2037		12,911,000		12,910,225
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.88			11-15-2038		39,545,000		39,557,259
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		16,645,000		17,810,982
Jefferson County AL Sewer Sub Lien Series D (Water & Sewer Revenue)		5.00			10-1-2016		1,000,000		1,010,820
Jefferson County AL Sewer Sub Lien Series D (Water & Sewer Revenue)		5.00			10-1-2017		1,750,000		1,834,770
Tender Option Bond Trust Receipts for Alabama Series XM0184 (Utilities Revenue, Morgan Stanley Bank LIQ) ø144A		0.84			9-1-2046		31,400,000		31,400,000
Tuscaloosa County AL IDA (Industrial Development Revenue) ø		0.70			9-1-2020		12,600,000		12,600,000
									159,218,911
Alaska: 0.16%
Alaska Industrial Development and Export Authority Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2017		765,000		779,604
North Slope Borough AK Water & Wastewater Facilities Service (Water & Sewer Revenue)		4.00			6-30-2018		1,125,000		1,193,513
Valdez AK Marine Terminal (Transportation Revenue) ø		0.58			5-1-2031		7,000,000		7,000,000
									8,973,117
Arizona: 1.51%
Maricopa County AZ Gilbert Unified School District No. 41 (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			7-1-2019		3,845,000		4,078,968
Phoenix AZ IDA Various Republic Services Incorporated Projects (Industrial Development Revenue) ±		0.90			12-1-2035		25,000,000		25,000,750
Pima County AZ IDA Charter Schools Project Series K (Miscellaneous Revenue)		6.38			7-1-2031		895,000		895,143
Pima County AZ IDA Charter Schools Project Series O (Education Revenue)		5.00			7-1-2026		915,000		915,110
Scottsdale AZ IDA Healthcare Series A (Health Revenue)		5.00			9-1-2016		3,655,000		3,682,010
Scottsdale AZ IDA Healthcare Series F (Health Revenue, AGM Insured) ±(m)		0.64			9-1-2045		47,825,000		47,825,000
University of Arizona Medical Center Corporation (Health Revenue)		5.00			7-1-2016		700,000		700,091
University of Arizona Medical Center Corporation (Health Revenue)		5.00			7-1-2017		545,000		569,105
									83,666,177
Arkansas: 0.04%
Arkansas Development Finance Authority Police Headquarters & Wireless Data Equipment Project (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2017		850,000		874,599

2 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Arkansas (continued)
Arkansas Development Finance Authority Police Headquarters & Wireless Data Equipment Project (Miscellaneous Revenue, AGM Insured)		4.00	%		6-1-2018	$	500,000	$	528,900
Springdale AR Sales & Use Tax Refunding & Improvement (Tax Revenue)		2.00			11-1-2016		840,000		843,990
									2,247,489
California: 6.46%
Acalanes CA Union High School District BAN (GO Revenue)		5.00			8-1-2017		4,500,000		4,710,240
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series A (Transportation Revenue) ±		1.00			4-1-2047		28,885,000		28,915,618
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.22			4-1-2045		1,500,000		1,500,720
California (GO Revenue) ±		0.94			12-1-2028		9,000,000		9,000,090
California (GO Revenue) ±		4.00			12-1-2027		4,800,000		4,950,528
California Administrative Services Sacramento Unified School District (Miscellaneous Revenue, Ambac Insured) ±		1.46			1-1-2017		615,000		614,631
California Association of Bay Area Governments Financing Authority Series A (Health Revenue, Bank of America NA LOC) ø		0.39			8-1-2024		9,170,000		9,170,000
California HFFA San Diego Hospital Series A (Health Revenue, National Insured) ±(m)(n)		0.59			7-15-2018		2,800,000		2,747,500
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-2 (Miscellaneous Revenue) ±		0.67			4-1-2038		22,920,000		22,894,559
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-3 (Miscellaneous Revenue) ±		0.67			4-1-2038		15,600,000		15,582,684
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-4 (Miscellaneous Revenue) ±		0.67			4-1-2038		32,000,000		31,964,480
California Municipal Financing Authority Northbay Healthcare Series A (Health Revenue) ±		2.49			11-1-2027		9,000,000		9,003,330
California Pollution Control Financing Authority Series A (Resource Recovery Revenue) ±144A		0.90			8-1-2023		1,200,000		1,200,024
California Public Works Board Department of Corrections Project Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2019		1,125,000		1,211,479
California Series B-3 (GO Revenue, Bank of America NA LOC) ø		0.39			5-1-2033		20,000,000		20,000,000
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		3.00			11-15-2016		250,000		252,205
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		4.00			11-15-2017		260,000		271,453
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		5.00			11-15-2018		275,000		301,040
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.51			7-1-2041		29,375,000		29,375,000
California Statewide CDA Health Facilities Catholic Series E (Health Revenue, AGM Insured) ±(m)		0.55			7-1-2040		22,475,000		22,475,000
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.52			7-1-2040		4,350,000		4,350,000
California Statewide CDA Samoa Avenue Apartments Series V (Housing Revenue) ±		0.95			12-1-2017		10,000,000		10,003,100
California Statewide CDA Stoneman Village Series I (Housing Revenue) ±		0.67			6-1-2018		11,050,000		11,050,332
El Monte CA Union High School District Refunding Bond (GO Revenue)		4.00			6-1-2017		5,365,000		5,531,798
Hemet CA Unified School District Certificate of Participation (Miscellaneous Revenue) ±		1.06			10-1-2036		3,335,000		3,334,867
Los Angeles County CA Metropolitan Transportation Authority Series A (Tax Revenue)		5.00			7-1-2016		3,280,000		3,280,426
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.02			7-1-2017		17,900,000		17,902,148
Oxnard CA Harbor District Series A (Airport Revenue)		5.00			8-1-2016		1,150,000		1,154,175
Palomar Pomerado CA Health Care District Certificate of Participation Series A (Health Revenue, AGM Insured) ±(m)		1.45			11-1-2036		19,925,000		19,925,000

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Palomar Pomerado CA Health Care District Certificate of Participation Series B (Health Revenue, AGM Insured) ±(m)		1.45	%		11-1-2036	$	19,800,000	$	19,800,000
Palomar Pomerado CA Health Care District ROC RR-11872 (GO Revenue, National Insured, Citibank NA LIQ) ø144A		0.59			4-13-2017		6,000,000		6,000,000
Sacramento County CA Airport System AMT Senior Series B (Airport Revenue, AGM Insured)		5.50			7-1-2018		4,450,000		4,577,938
Sacramento County CA Airport System Refunding AMT Subordinated & PFC Series E (Airport Revenue, AGM Insured)		5.50			7-1-2018		5,345,000		5,498,669
Santa Clara CA PFOTER Series 4713 (GO Revenue, Ambac Insured, Dexia Credit Local LIQ) ø144A		0.70			12-15-2021		22,550,000		22,550,000
Tender Option Bond Trust Receipts Floaters Series 2016-XG0227 (Miscellaneous Revenue, Bank of America NA LIQ) ø144A		0.63			5-15-2036		5,000,000		5,000,000
Windsor CA Redevelopment Successor Refunding Agency Windsor Redevelopment Project (Tax Revenue)		2.00			9-1-2016		1,095,000		1,097,234
									357,196,268
Colorado: 0.57%
Colorado HEFA Covenant Retirement Community Series A (Health Revenue)		3.00			12-1-2017		1,400,000		1,434,048
Colorado HEFA Covenant Retirement Community Series A (Health Revenue)		4.00			12-1-2018		1,150,000		1,217,103
Colorado HEFA Montbello Senior Housing Project Series I (Housing Revenue, FHA Insured)		1.05			8-1-2018		2,755,000		2,761,529
Denver CO City & County Airport Sub Series A (Airport Revenue)		4.00			11-15-2016		450,000		455,846
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2016		250,000		254,095
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2017		400,000		422,696
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2018		500,000		546,355
Denver CO City & County Airport Sub Series B (Airport Revenue)		5.00			11-15-2017		600,000		635,088
Denver CO City & County Airport Sub Series B (Airport Revenue)		5.00			11-15-2018		600,000		659,388
Denver CO City & County Airport Sub Series F2 (Airport Revenue, AGC Insured) ±(m)		0.52			11-15-2025		9,375,000		9,375,000
Denver CO City & County 2300 Welton Project (Housing Revenue)		0.65			4-1-2017		2,290,000		2,286,405
E-470 Colorado Public Highway Authority Senior Index Series A (Transportation Revenue) ±		1.57			9-1-2039		11,725,000		11,699,557
									31,747,110
Connecticut: 3.39%
Bridgeport CT Series C (GO Revenue, National Insured)		5.25			8-15-2016		2,000,000		2,011,440
Connecticut Economic Recovery Notes Series A-3 (GO Revenue) ±		0.65			7-1-2017		20,000,000		20,000,000
Connecticut HEFA Lawrence & Memorial Hospital Series F (Health Revenue)		4.00			7-1-2017		1,880,000		1,937,096
Connecticut HEFA Quinnipiac University Series H (Education Revenue, Ambac Insured)		5.00			7-1-2036		3,500,000		3,500,420
Connecticut HEFA Yale New Haven Hospital Series C (Health Revenue, JPMorgan Chase & Company LOC) ±		0.45			7-1-2025		9,100,000		9,100,000
Connecticut HEFA Yale University Series A (Education Revenue) ±		0.80			7-1-2048		5,000,000		5,005,500
Connecticut HEFA Yale University Series A (Education Revenue) ±%%		1.00			7-1-2042		15,000,000		15,043,500
Connecticut HEFA Yale University Series T-2 (Education Revenue) ±		0.60			7-1-2029		34,520,000		34,525,523
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		24,600,000		24,663,222
Connecticut Series A (Miscellaneous Revenue) ±		0.81			3-1-2018		2,875,000		2,864,190
Connecticut Series A (Miscellaneous Revenue) ±		1.31			5-15-2018		7,000,000		7,015,190
Connecticut Series D (Miscellaneous Revenue) ±		1.08			8-15-2017		14,855,000		14,885,750
Connecticut Series D (Miscellaneous Revenue) ±		1.27			8-15-2018		6,000,000		6,005,880
Groton CT BAN (GO Revenue)		2.00			10-5-2016		6,500,000		6,519,305
Hamden CT Refunding (GO Revenue)		2.00			8-15-2016		1,000,000		1,000,820

4 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Connecticut (continued)
Hartford CT EDA Series B (Transportation Revenue, Bank of America NA SPA) ø		0.53	%		6-15-2034	$	17,350,000	$	17,350,000
New Britain CT (GO Revenue, Ambac Insured)		5.00			4-15-2017		1,165,000		1,205,740
New Haven CT (GO Revenue, Ambac Insured)		5.00			11-1-2016		6,250,000		6,339,750
New Haven CT Series A (GO Revenue)		5.00			8-1-2016		5,680,000		5,701,868
Waterbury CT (GO Revenue)		5.00			2-1-2017		1,350,000		1,383,426
Waterbury CT (GO Revenue)		5.00			2-1-2018		1,215,000		1,293,489
									187,352,109
Delaware: 0.64%
Delaware EDA Delmarva Power and Light Company Series A (Industrial Development Revenue) ø		0.55			10-1-2017		6,400,000		6,400,000
Delaware EDA Delmarva Power and Light Company Series B (Industrial Development Revenue) ø		0.55			10-1-2017		18,000,000		18,000,000
Delaware EDA Delmarva Power and Light Company Series B (Utilities Revenue) ø		0.60			7-1-2024		11,000,000		11,000,000
									35,400,000
District of Columbia: 0.21%
District of Columbia HFA Edgewood Terrace (Housing Revenue) ±		0.65			6-1-2017		6,070,000		6,070,243
District of Columbia HFA MFHR Channing Phillips Project (Housing Revenue) ±		0.55			9-1-2017		5,500,000		5,498,075
									11,568,318
Florida: 3.98%
Florida Housing Finance Corporation Hilltop Landings Apartments Project Series A (Housing Revenue)		0.75			3-1-2017		1,500,000		1,500,030
Florida Housing Finance Corporation Housing Georgia Arms Apartments Series D (Housing Revenue)		0.55			10-1-2016		1,800,000		1,800,000
Florida Hurricane Catastrophe Fund Finance Corporation Series A (Miscellaneous Revenue)		5.00			7-1-2016		65,000		65,008
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2016		255,000		257,514
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2017		225,000		235,193
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2018		300,000		323,790
Hernando County FL Criminal Justice Complex Financing (Miscellaneous Revenue, National Insured)		7.65			7-1-2016		16,175,000		16,178,073
Hillsborough County FL Tampa International Airport Aviation Authority Series A (Airport Revenue)		5.00			10-1-2016		1,200,000		1,213,476
Lakeland FL Energy System (Utilities Revenue) ±		1.16			10-1-2017		5,220,000		5,223,289
Lee County FL Solid Waste System Series A (Resource Recovery Revenue, Ambac Insured)		5.00			10-1-2016		4,535,000		4,578,037
Miami-Dade County FL Aviation Series B (Airport Revenue)		5.00			10-1-2017		300,000		315,825
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, AGC Insured, Citibank NA LIQ) ø144A		0.61			7-1-2018		1,000,000		1,000,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) ±144A		0.86			8-1-2028		16,505,000		16,505,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) ±144A		0.91			10-13-2023		9,655,000		9,655,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) ±144A		0.91			3-8-2030		11,130,000		11,130,000
Miami-Dade County FL Expressway Authority Toll System Series DCL-2012-003 (Transportation Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) ±144A		0.91			3-8-2026		16,860,000		16,860,000

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Miami-Dade County FL HFA Miami Children’s Hospital Project Series A (Health Revenue)		5.25	%		8-1-2021	$	1,000,000	$	1,107,130
Miami-Dade County FL International Airport Series C (Airport Revenue, AGM Insured)		5.25			10-1-2019		16,775,000		17,682,360
Miami-Dade County FL School Board Certificate of Participation Series 3 (Miscellaneous Revenue, Dexia Credit Local LOC, Ambac Insured, Dexia Credit Local LIQ) ø144A		0.84			9-25-2024		27,895,000		27,895,000
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) ø144A		0.78			5-1-2037		25,000,000		25,000,000
Miami-Dade County FL School Board Foundation Incorporated (Miscellaneous Revenue, Dexia Credit Local LOC, National Insured, Dexia Credit Local LIQ) ø144A		0.78			5-1-2031		19,210,000		19,210,000
Okeechobee County FL Disposal Waste Management Landfill Series A (Resource Recovery Revenue) ±		2.25			7-1-2039		2,360,000		2,360,094
Orange County FL Health Facilities Unrefunded Balance Series A (Health Revenue, National Insured)		6.25			10-1-2016		440,000		446,534
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		3.00			5-15-2017		1,065,000		1,084,042
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		4.00			5-15-2018		500,000		526,740
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		4.00			5-15-2019		780,000		839,179
Palm Beach County FL HFA Retirement Life Communities Project (Housing Revenue) %%		4.00			11-15-2019		2,675,000		2,918,158
Palm Beach County FL School Board Series A (Miscellaneous Revenue) ±		5.00			8-1-2032		5,300,000		5,320,829
Pasco County FL School Board Certificates Series B (Miscellaneous Revenue, Ambac Insured) ±(m)		0.85			8-1-2030		11,900,000		11,900,000
Pasco County FL School District (Tax Revenue)		3.00			10-1-2016		1,260,000		1,267,774
Pineallas County FL HFA Series A (Health Revenue)		5.65			5-1-2037		3,380,000		3,521,622
Tender Option Bond Trust Receipts Floaters Series 2016-XG0010 (Airport Revenue, AGC Insured, Bank of America NA LIQ) ø144A		0.85			10-1-2038		12,400,000		12,400,000
									220,319,697
Georgia: 3.03%
Athens GA Housing Authority Pinewood Apartments Project Series 2015 (Housing Revenue)		0.60			10-1-2016		2,000,000		1,999,480
Atlanta GA Urban Residential Finance Authority The Remington Apartments Project (Housing Revenue) ±		1.05			6-1-2019		10,250,000		10,261,070
Burke County GA Development Authority Georgia Power Company Plant Vogtle Project First Series 2012 (Utilities Revenue) ±		1.75			12-1-2049		4,600,000		4,635,374
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project Second Series 2012 (Utilities Revenue) ±		1.75			12-1-2049		5,135,000		5,177,312
Burke County GA Development Authority Georgia Transmission Corporation (Industrial Development Revenue) ±		1.30			1-1-2052		14,000,000		14,066,220
Cedartown GA Housing Authority Cherokee Springs Apartments Project (Housing Revenue) ±		1.00			4-1-2019		5,000,000		5,002,500
Cedartown GA Housing Authority Grayfield Apartments Project (Housing Revenue) ±		1.00			1-1-2019		3,800,000		3,800,380
Georgia Private Colleges & Universities Authority Mercer University Series A (Education Revenue)		4.00			10-1-2016		1,500,000		1,512,525
Georgia Series G (GO Revenue) ±		0.81			12-1-2026		106,305,000		106,217,830

6 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Georgia (continued)
Savannah GA EDA Exempt Facilities Home Depot Project Series B (Industrial Development Revenue, SunTrust Bank LOC) ±		0.50	%		8-1-2025	$	6,400,000	$	6,400,000
Union City GA Housing Authority Providence at Parkway Village Apartments Project (Housing Revenue) ±		0.70			5-1-2017		8,500,000		8,500,340
									167,573,031
Guam: 0.07%
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2017		850,000		896,053
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2017		2,750,000		2,870,313
									3,766,366
Hawaii: 0.11%
Hawaii Department of Budget and Finance Queens Health System Series B (Health Revenue) ±		0.84			7-1-2039		3,055,000		3,055,000
Hawaii Department of Transportation Airports Division Lease AMT (Miscellaneous Revenue)		4.00			8-1-2018		1,000,000		1,060,600
Hawaii Department of Transportation Airports Division Lease AMT (Miscellaneous Revenue)		5.00			8-1-2017		425,000		443,930
Hawaii Housing Finance & Development Corporation Kalani Gardens Series A (Housing Revenue)		0.70			4-1-2017		1,750,000		1,750,105
									6,309,635
Idaho: 0.54%
Idaho HFFA LPN Series A (Health Revenue)		2.50			5-1-2017		6,500,000		6,500,520
Idaho Housing & Finance Association Series A (Housing Revenue, FNMA LOC) ø		0.64			1-1-2038		18,545,000		18,545,000
Idaho TAN (GO Revenue) %%		2.00			6-30-2017		5,000,000		5,065,400
									30,110,920
Illinois: 8.99%
Chicago Housing Authority Capital Program (Housing Revenue, AGM Insured)		5.00			7-1-2020		6,350,000		6,350,762
Chicago Housing Authority Capital Program (Housing Revenue, AGM Insured)		5.00			7-1-2022		2,745,000		2,745,329
Chicago IL (GO Revenue)		5.00			1-1-2020		1,285,000		1,339,407
Chicago IL (GO Revenue)		5.00			1-1-2021		2,000,000		2,093,420
Chicago IL (GO Revenue, National Insured)		5.25			1-1-2017		500,000		506,475
Chicago IL Board of Education Refunding Bond Series A (GO Revenue) ±		4.39			3-1-2032		15,000,000		14,706,150
Chicago IL Board of Education Series A (GO Revenue, Ambac Insured) ¤		0.00			12-1-2016		6,845,000		6,733,290
Chicago IL Board of Education Series A (GO Revenue, National Insured) ¤		0.00			12-1-2018		5,265,000		4,918,352
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.25			12-1-2017		1,645,000		1,712,116
Chicago IL Board of Education Series A2 (GO Revenue) ±		1.14			3-1-2035		72,320,000		68,211,479
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2017		1,620,000		1,579,014
Chicago IL Board of Education Series F (GO Revenue)		5.00			12-1-2016		1,000,000		993,720
Chicago IL Modern Schools Across Illinois Series B (GO Revenue, Ambac Insured)		5.00			12-1-2016		1,000,000		1,011,090
Chicago IL Neighborhoods Alive 21 Program Series B (GO Revenue)		5.00			1-1-2019		1,925,000		1,994,550
Chicago IL Park District Limited Tax Series D (GO Revenue)		4.00			1-1-2017		1,000,000		1,014,250
Chicago IL Park District Limited Tax Series D (GO Revenue)		4.00			1-1-2018		2,760,000		2,871,808
Chicago IL Prerefunded Neighborhoods Alive 21 Program Series B (GO Revenue)		5.00			1-1-2017		305,000		308,633
Chicago IL Prerefunded Series B (GO Revenue)		5.00			1-1-2017		565,000		577,114
Chicago IL Refunding Emergency System (GO Revenue, AGM/FGIC Insured)		5.50			1-1-2019		3,000,000		3,213,270
Chicago IL Refunding Project Series B (GO Revenue)		5.00			1-1-2019		3,205,000		3,320,797

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Refunding Project Series B (GO Revenue)		5.00	%		1-1-2020	$	3,270,000	$	3,408,452
Chicago IL Refunding Series A (GO Revenue)		4.00			1-1-2019		1,250,000		1,265,450
Chicago IL Series A (GO Revenue)		4.00			1-1-2019		1,335,000		1,351,501
Chicago IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2018		10,000,000		10,088,400
Chicago IL Series A (GO Revenue)		5.00			12-1-2019		1,000,000		1,047,260
Chicago IL Series A (GO Revenue, AGM Insured)		5.25			1-1-2017		735,000		737,117
Chicago IL Series A2 (GO Revenue, Ambac Insured)		5.50			1-1-2018		3,135,000		3,232,969
Chicago IL Series B (GO Revenue, Ambac Insured)		5.00			12-1-2018		2,540,000		2,583,586
Chicago IL Series C (Water & Sewer Revenue)		4.00			1-1-2017		1,980,000		2,006,710
Chicago IL Series C (GO Revenue, National Insured)		5.00			1-1-2018		5,350,000		5,526,818
Chicago IL Series D (GO Revenue, AGM/FGIC Insured)		5.25			1-1-2017		1,210,000		1,227,194
Chicago IL Transit Authority Capital Grant Unrefunded Balance Federal Transit Administration (Miscellaneous Revenue, Ambac Insured)		5.00			6-1-2018		1,500,000		1,527,705
Chicago IL Unrefunded Neighborhoods Alive 21 Program Series B (GO Revenue)		5.00			1-1-2017		245,000		250,253
Chicago IL Unrefunded Series B (GO Revenue)		5.00			1-1-2017		710,000		718,456
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		2.05			12-30-2016		1,280,000		1,283,302
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		3.00			12-30-2017		1,340,000		1,367,095
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		3.00			12-30-2018		880,000		900,486
Cook County IL Refunding Series A (GO Revenue)		4.00			11-15-2018		300,000		318,825
Cook County IL Refunding Series A (GO Revenue, Ambac Insured)		5.00			11-15-2019		1,000,000		1,001,890
Cook County IL Refunding Series C (GO Revenue)		4.25			11-15-2018		100,000		106,858
Cook County IL School District No. 087 Refunding School Series A (GO Revenue)		2.00			12-1-2016		1,175,000		1,178,408
Deutsche Bank SPEAR/LIFER Trust Series DBE 1032 (Tax Revenue, Deutsche Bank LIQ) ø144A		0.66			12-1-2036		31,235,000		31,235,000
Grundy Kendall & Will Counties IL Community School District #201 (GO Revenue, AGC Insured)		5.75			10-15-2019		540,000		597,866
Illinois (Miscellaneous Revenue)		2.50			7-1-2017		3,000,000		3,034,860
Illinois (GO Revenue)		3.00			2-1-2017		8,740,000		8,833,780
Illinois (GO Revenue)		4.00			2-1-2018		5,550,000		5,761,233
Illinois (Miscellaneous Revenue)		4.00			7-1-2018		13,610,000		14,248,581
Illinois (GO Revenue)		5.00			3-1-2017		5,000,000		5,126,600
Illinois (Miscellaneous Revenue)		5.00			5-1-2017		5,070,000		5,227,170
Illinois (Miscellaneous Revenue)		5.00			7-1-2017		10,000,000		10,364,400
Illinois (GO Revenue, AGM Insured)		5.00			9-1-2017		3,200,000		3,225,824
Illinois (GO Revenue)		5.00			1-1-2018		21,700,000		22,505,080
Illinois (GO Revenue)		5.00			3-1-2018		2,000,000		2,112,580
Illinois (Miscellaneous Revenue)		5.00			5-1-2019		10,500,000		11,372,130
Illinois (Miscellaneous Revenue)		5.00			8-1-2019		10,335,000		11,256,572
Illinois (GO Revenue)		5.00			1-1-2021		2,500,000		2,748,925
Illinois Educational Authority University of Chicago Series B-1 (Education Revenue) ±		1.10			7-1-2036		6,485,000		6,510,032
Illinois Finance Authority Carle Foundation Series A (Health Revenue)		5.00			8-15-2016		2,200,000		2,212,430
Illinois Finance Authority DePaul University (Education Revenue)		5.00			10-1-2016		1,850,000		1,870,850
Illinois Finance Authority Little Company of Mark Hospital Series B (Health Revenue, Barclays Bank plc LOC) ø		0.42			8-15-2035		20,000,000		20,000,000
Illinois Finance Authority Presbyterian Homes Obligated Group Series A (Health Revenue)		4.00			5-1-2019		500,000		538,480
Illinois Finance Authority Presbyterian Homes Obligated Group Series A (Health Revenue)		4.00			11-1-2019		500,000		543,925
Illinois Finance Authority Presbyterian Homes Obligated Group Series B (Health Revenue) ±		1.67			5-1-2036		5,000,000		4,995,100

8 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois HFA Evanston Hospital Corporation (Health Revenue, JPMorgan Chase & Company SPA) ø		0.46	%		8-15-2035	$	10,000,000	$	10,000,000
Illinois Housing Development Authority Lafayette Terrace Apartments (Housing Revenue)		0.80			12-1-2016		7,650,000		7,650,000
Illinois Housing Development Authority Multi-Housing Township Village Apartments Project Series A (Housing Revenue) ±		1.25			5-1-2019		5,300,000		5,305,300
Illinois Metropolitan Pier & Exposition Authority Prefunded CAB (Tax Revenue, National Insured) ¤		0.00			6-15-2017		450,000		446,535
Illinois Metropolitan Pier & Exposition Authority Unrefunded CAB (Tax Revenue, National Insured) ¤		0.00			6-15-2017		1,780,000		1,758,106
Illinois Refunding Bond (GO Revenue) ##		5.00			1-1-2018		8,685,000		9,128,369
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2016		1,125,000		1,129,005
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2017		1,425,000		1,480,874
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2018		1,520,000		1,624,606
Illinois Series A (GO Revenue)		5.00			4-1-2017		6,840,000		7,032,820
Illinois Series A (Tax Revenue)		5.00			6-1-2017		250,000		258,435
Illinois Sports Authority (Tax Revenue)		5.00			6-15-2017		760,000		780,474
Illinois Toll Highway Authority Series A-2A (Transportation Revenue, Royal Bank of Canada LOC) ø		0.41			7-1-2030		20,800,000		20,800,000
Illinois University of Illinois Auxiliary Facilities (Education Revenue, JPMorgan Chase & Company SPA) ø		0.88			4-1-2038		10,000,000		10,000,000
Illinois Unrefunded Balance Series A (Miscellaneous Revenue)		5.00			10-1-2016		5,560,000		5,578,348
Kane County IL School District #129 Aurora West Series B (GO Revenue)		2.00			2-1-2017		2,190,000		2,205,111
Kane County IL School District #129 West Side Series B (GO Revenue)		2.00			2-1-2018		2,430,000		2,468,248
Kendall, Kane & Will Counties IL Community Unit School District #308 (GO Revenue)		4.00			10-1-2018		2,000,000		2,143,520
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2017		500,000		494,550
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		2.00			12-1-2016		240,000		240,912
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.00			12-1-2017		415,000		424,246
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.50			12-1-2018		400,000		418,708
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.50			12-1-2019		565,000		597,092
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.65			6-1-2025		38,675,000		38,675,000
Tender Option Bond Trust Receipts Floaters Series 2016-XG0008 (Health Revenue, AGC Insured, Bank of America NA LIQ) ø144A		0.68			8-15-2047		23,375,000		23,375,000
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2016		350,000		351,768
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2017		500,000		510,430
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2018		500,000		518,010
									497,046,646
Indiana: 1.36%
Gary IN Woodlake-Concord Project (Housing Revenue, FHA Insured) ±		1.00			10-1-2017		22,715,000		22,722,723
Indiana Finance Authority I-69 Section 5 Project (Miscellaneous Revenue)		4.00			3-1-2017		2,115,000		2,136,594
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		4,610,000		4,705,888

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Indiana (continued)
Indiana Housing and Community Development Authority River Run Apartments Project (Housing Revenue, FHA Insured)		0.75	%		1-1-2017	$	4,900,000	$	4,900,294
Indiana Housing and Community Development Authority Series A-2 (Housing Revenue, GNMA/FNMA/FHLMC Insured) ±		0.86			7-1-2039		9,465,000		9,465,000
Indiana Porter Township High School BAN (Miscellaneous Revenue)		1.00			12-31-2016		6,500,000		6,500,845
Indiana Transportation Finance Authority Series A (Miscellaneous Revenue)		6.80			12-1-2016		1,165,000		1,192,133
Jasper County IN Pollution Control Northern Indiana Public Services Company Series C (Industrial Development Revenue, National Insured)		5.60			11-1-2016		1,450,000		1,473,041
Mount Vernon IN Waterworks BAN (Water & Sewer Revenue)		1.00			7-1-2016		5,350,000		5,350,054
Posey County IN EDA Midwest Fertilizer Company LLC Project (Industrial Development Revenue) ±		0.35			7-1-2046		13,500,000		13,494,870
Rockport IN PCR Indiana-Michigan Power Company Series B (Utilities Revenue) ±		1.75			6-1-2025		2,000,000		2,018,080
Tender Option Bond Trust Receipts Floaters Series 2015-XF0115 (Utilities Revenue, JPMorgan Chase & Company LIQ) ø144A		0.75			4-15-2018		1,200,000		1,200,000
									75,159,522
Iowa: 0.62%
Buchanan County IA People’s Memorial Hospital (Health Revenue)		1.50			12-1-2018		2,500,000		2,501,625
Iowa Finance Authority BAN Shenandoah Medical Center Project (Health Revenue)		1.75			6-1-2018		7,000,000		7,027,790
Iowa Finance Authority UnityPoint Health Project Series B-1 (Health Revenue, Union Bank NA LOC) ±		0.46			2-15-2039		15,000,000		15,000,000
Randall IA Healthcare BAN Bethany Manor Incorporated (Health Revenue)		1.25			8-1-2016		10,000,000		10,005,100
									34,534,515
Kansas: 0.63%
Kansas Department of Transportation Highway Libor Index Series B-2 (Tax Revenue) ±		0.50			9-1-2016		10,000,000		10,001,700
Kansas Department of Transportation Highway Libor Index Series B-3 (Tax Revenue) ±		0.55			9-1-2017		4,500,000		4,484,115
Kansas Department of Transportation Highway Libor Index Series B-4 (Tax Revenue) ±		0.63			9-1-2018		7,000,000		6,951,140
Kansas Department of Transportation Highway Libor Index Series B-5 (Tax Revenue) ±		0.71			9-1-2019		6,000,000		5,947,200
Kansas Development Finance Authority Series A (GO Revenue)		5.00			5-1-2018		5,710,000		6,149,099
Lawrence KS Series A (Industrial Development Revenue, U.S. Bank NA LOC) ø		0.67			12-1-2018		1,065,000		1,065,000
									34,598,254
Kentucky: 2.57%
Ashland KY Ashland Hospital Corporation Kings Daughters Medical Center Project (Health Revenue) ±		2.14			2-1-2040		30,700,000		30,717,499
Ashland KY Medical Center Ashland Hospital Corporation Series B (Health Revenue)		5.00			2-1-2018		900,000		944,919
Harrison KY Harrison Memorial Hospital Project BAN (Health Revenue)		1.50			5-1-2017		9,065,000		9,068,626
Kentucky EDA Republic Services Incorporated Project Series A (Resource Recovery Revenue) ø		0.80			4-1-2031		3,000,000		3,000,000
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		50,920,000		52,863,616
Louisville & Jefferson Counties KY Louisville Gas & Electric Company Project (Utilities Revenue) ±		1.65			10-1-2033		2,000,000		2,009,560
Louisville & Jefferson Counties KY PCR Louisville Gas & Electric Company Project Series B (Utilities Revenue) ±		1.35			11-1-2027		16,000,000		16,056,480

10 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Kentucky (continued)
Louisville County KY Metropolitan District Sewer and Drainage System BAN (Water & Sewer Revenue)		5.00	%		11-22-2016	$	13,000,000	$	13,222,950
Pikeville KY University of Pikeville College of Optometry BAN (Education Revenue, USDA Insured)		3.00			8-1-2017		13,950,000		14,073,318
									141,956,968
Louisiana: 1.39%
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.82			2-1-2046		24,000,000		23,772,960
Louisiana Gas & Fuel Tax 2nd Lien Series A (Tax Revenue) ±		0.79			5-1-2043		11,200,000		11,178,944
Louisiana Offshore Terminal Authority Deepwater Loop LLC Project Series B-1 (Airport Revenue) ±		2.20			10-1-2040		750,000		758,678
Louisiana Offshore Terminal Authority Deepwater Loop LLC Project Series B-1A1 (Airport Revenue) ±		1.38			10-1-2037		3,115,000		3,117,554
Shreveport LA Water & Sewer Refunding Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			12-1-2017		3,000,000		3,134,400
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.65			11-1-2040		35,000,000		35,000,000
									76,962,536
Maine: 0.29%
Maine HEFA Series B (Health Revenue)		4.00			7-1-2016		525,000		525,053
Old Town ME Georgia Pacific Corporation Project (Resource Recovery Revenue) ø		0.60			12-1-2024		15,260,000		15,260,000
									15,785,053
Maryland: 1.83%
Maryland CDA Allendale Apartments Series I (Housing Revenue)		1.02			5-1-2017		10,000,000		9,998,300
Maryland CDA Bascilica Place Apartments Series 2015E (Housing Revenue)		1.10			3-1-2017		6,900,000		6,901,863
Maryland CDA Commons of Avalon Series 2015C (Housing Revenue)		1.00			1-1-2017		12,850,000		12,857,710
Maryland CDA Department of Housing & Community Development Marlborough Apartment Series I (Housing Revenue, FNMA Insured)		0.55			12-15-2016		2,050,000		2,049,139
Maryland CDA Department of Housing & Community Development Windsor Valley Apartments I & II Series G (Housing Revenue)		1.00			6-1-2017		16,500,000		16,501,155
Maryland CDA Hollins House (Housing Revenue)		1.27			11-1-2017		12,000,000		11,999,160
Maryland CDA Multifamily Development Conifer Village (Housing Revenue)		0.80			4-1-2017		13,000,000		13,007,540
Maryland CDA Tabco Towers Series K (Housing Revenue)		1.40			12-1-2017		7,150,000		7,159,796
Maryland Department of Housing and Community Development Series A (Housing Revenue)		1.25			10-1-2017		6,900,000		6,894,066
Maryland HEFA Suburban Hospital Series A (Health Revenue, National/FHA Insured)		4.75			7-1-2036		13,620,000		13,621,634
Maryland HEFA Suburban Hospital Series A (Health Revenue)		5.50			7-1-2016		415,000		415,062
									101,405,425
Massachusetts: 2.47%
Massachusetts Bay Transportation Authority Series A-2 (Transportation Revenue, Bank of Tokyo-Mitsubishi SPA) ±		0.40			3-1-2030		5,000,000		5,000,000
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ø		0.59			8-1-2043		78,750,000		78,750,000
Massachusetts Development Finance Agency Boston University Series U-6E (Education Revenue) ±		0.94			10-1-2042		14,000,000		14,002,240
Massachusetts HEFA Partners Healthcare Series G-2 (Health Revenue, AGM Insured) ±(m)		0.49			7-1-2042		17,810,000		17,810,000

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Massachusetts (continued)
Springfield MA (GO Revenue)		2.00	%		8-1-2016	$	4,920,000	$	4,926,396
Tender Option Bond Trust Receipts Floaters Series 2016-XF2306 (Education Revenue, Morgan Stanley Bank LIQ) ø144A		0.70			7-1-2033		14,000,000		14,000,000
Uxbridge MA BAN (GO Revenue)		1.00			8-19-2016		2,045,000		2,045,716
									136,534,352
Michigan: 3.83%
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2016		4,855,000		4,929,087
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2017		4,955,000		5,244,174
Charlotte MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		685,000		703,906
Charlotte MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,515,000		1,687,786
Detroit MI (GO Revenue)		5.00			11-1-2017		7,485,000		7,831,780
Detroit MI Water Supply System Senior Lien Series B (Water & Sewer Revenue, National Insured)		5.00			7-1-2016		125,000		125,015
Forest Hills MI Public Schools (GO Revenue)		4.00			5-1-2017		2,150,000		2,210,265
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			11-1-2016		425,000		428,298
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			11-1-2017		225,000		234,281
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			11-1-2018		220,000		235,464
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2019		240,000		270,710
Grand Ledge MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,235,000		1,279,361
Kent MI Hospital Finance Authority Spectrum Health Series C (Health Revenue, Bank of New York Mellon LOC) ø		0.41			1-15-2026		13,645,000		13,645,000
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		2,325,000		2,389,170
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		4,650,000		5,004,330
Mattawan MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		875,000		899,150
Mattawan MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		855,000		920,151
Michigan Central University Series A (Education Revenue, JPMorgan Chase & Company LOC) ø		0.46			10-1-2032		2,100,000		2,100,000
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series C (Water & Sewer Revenue)		5.00			11-1-2017		2,000,000		2,101,400
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2016		2,400,000		2,400,288
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2017		7,065,000		7,357,844
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-3 (Water & Sewer Revenue, National Insured)		5.00			7-1-2018		20,000,000		21,586,600
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-4 (Water & Sewer Revenue)		5.00			7-1-2016		13,740,000		13,741,511
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-4 (Water & Sewer Revenue)		5.00			7-1-2017		15,000,000		15,609,450
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-7 (Water & Sewer Revenue)		5.00			7-1-2017		1,630,000		1,693,391

12 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00	%		7-1-2017	$	10,000,000	$	10,417,600
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2018		17,500,000		18,888,275
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-6 (Water & Sewer Revenue)		5.00			7-1-2016		8,300,000		8,300,913
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-6 (Water & Sewer Revenue)		5.00			7-1-2018		4,130,000		4,435,372
Michigan Grant Anticipation Bonds (Miscellaneous Revenue, AGM Insured)		5.25			9-15-2018		1,500,000		1,582,740
Michigan Hospital Finance Authority Ascension Health Credit Group Series B-3 (Health Revenue) ±		0.95			11-15-2033		2,000,000		2,000,760
Michigan Hospital Finance Authority Ascension Health Group Project Series A-2 (Health Revenue) ±		1.50			11-1-2027		2,000,000		2,019,920
Michigan Hospital Finance Authority Ascension Health Group Project Series E-1 (Health Revenue) ±		1.10			11-15-2046		4,000,000		4,012,520
Michigan Hospital Finance Authority Ascension Health Series A-3 (Health Revenue) ±		1.87			11-1-2027		7,025,000		7,141,475
Michigan Hospital Finance Authority Ascension Health Series F-3 (Health Revenue) ±		1.40			11-15-2047		9,250,000		9,326,775
Michigan Hospital Finance Authority Refunding Ascension Health Senior Credit Group (Health Revenue) ±		1.50			11-15-2047		1,360,000		1,366,854
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		16,000,000		16,429,280
Pinckney MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		645,000		662,415
Pinckney MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		1,035,000		1,112,553
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,000,000		1,035,320
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		750,000		806,198
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,000,000		1,111,770
Walled Lake MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		6,020,000		6,478,724
									211,757,876
Minnesota: 0.89%
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.59			11-15-2017		6,500,000		6,435,000
Minneapolis MN Housing Broadway Flats Apartments Project (Housing Revenue)		0.55			12-1-2016		13,000,000		12,997,660
Minneapolis MN Plymouth Stevens House Project Series A (Housing Revenue)		1.00			12-1-2017		2,400,000		2,401,344
Minneapolis MN Seward Towers Apartments Project Series A (Housing Revenue)		1.10			1-1-2018		11,700,000		11,719,773
Minnesota Housing Finance Agency Multifamily Housing Project (Housing Revenue) ±		0.55			2-1-2017		13,500,000		13,498,245
Pipestone County MN Medical Center BAN (Health Revenue)		0.85			5-1-2017		1,900,000		1,901,235
									48,953,257
Mississippi: 0.71%
Mississippi Business Finance Corporation Coast Electric Power Association (Utilities Revenue) ±		0.75			5-1-2037		1,312,000		1,312,210

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Mississippi (continued)
Mississippi Business Finance Corporation Gulf Power Company Project (Industrial Development Revenue) ±		0.44	%		11-1-2042	$	7,100,000	$	7,100,000
Mississippi Business Finance Corporation Mississippi Power Company Project (Industrial Development Revenue) ±		0.50			12-1-2027		9,400,000		9,400,000
Mississippi Business Finance Corporation Waste Management Incorporated Project (Resource Recovery Revenue) ±		1.38			3-1-2027		800,000		802,568
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.00			10-1-2016		535,000		539,938
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.50			10-1-2017		565,000		591,521
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.50			10-1-2018		595,000		643,368
Mississippi Development Bank Special Obligation Refunding Biloxi Mississippi Project Series A (Miscellaneous Revenue, Ambac Insured)		4.50			11-1-2018		1,810,000		1,833,983
Mississippi Hospital Equipment & Facilities Authority Baptist Memorial Health Series B2 (Health Revenue) ±144A		0.75			9-1-2022		8,500,000		8,500,000
Mississippi Hospital Equipment & Facilities Authority Mississippi Baptist Health System Incorporated Series A (Health Revenue)		5.00			8-15-2018		4,110,000		4,292,073
Perry County MS PCR Leaf River Forest Products Incorporated Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) ø144A		0.60			2-1-2022		4,000,000		4,000,000
									39,015,661
Missouri: 0.71%
Missouri HEFA Saint Louis University Series B-1 (Education Revenue, Barclays Bank plc LOC) ø		0.33			10-1-2035		6,140,000		6,140,000
Springfield MO Public Utility Refunding (Utilities Revenue)		5.00			8-1-2016		6,660,000		6,686,307
Springfield MO Public Utility Refunding (Utilities Revenue)		5.00			8-1-2017		14,835,000		15,551,827
St. Louis MO Series 004 (Airport Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) ø144A		0.59			7-1-2026		11,030,000		11,030,000
									39,408,134
Nebraska: 0.20%
Hall County NE Airport Authority BAN Series A (GO Revenue)		1.50			8-15-2016		3,745,000		3,744,850
Tender Option Bond Trust Receipts for Nebraska Series XM0184 (Airport Revenue, AGC Insured, Bank of America NA LIQ) ø144A		0.76			10-1-2033		7,500,000		7,500,000
									11,244,850
Nevada: 0.02%
Clark County NV School District (GO Revenue)		5.00			6-15-2018		1,000,000		1,062,780
New Jersey: 6.60%
Atlantic County NJ BAN (GO Revenue)		2.00			6-22-2017		19,566,000		19,782,596
Beach Haven NJ BAN (GO Revenue)		2.00			5-12-2017		5,085,000		5,125,985
Burlington County NJ Governmental Leasing Program Series A (Miscellaneous Revenue)		2.00			4-26-2017		3,130,000		3,161,331
Burlington County NJ Governmental Leasing Program Series B (Miscellaneous Revenue)		2.00			4-26-2017		10,370,000		10,473,804
Clinton NJ BAN (GO Revenue)		1.50			1-25-2017		2,909,000		2,917,960
East Brunswick NJ BAN (GO Revenue)		2.00			3-17-2017		15,000,000		15,132,000
East Orange NJ Capital Improvement Series A (GO Revenue, AGM Insured)		3.00			6-1-2017		1,420,000		1,446,156
East Orange NJ Capital Improvement Series A (GO Revenue, AGM Insured)		4.00			6-1-2018		650,000		686,296

14 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
Essex County NJ BAN (GO Revenue)		2.00	%		12-14-2016	$	1,090,480	$	1,094,547
Franklin NJ BAN Series A (GO Revenue)		2.00			4-12-2017		5,226,250		5,267,851
Glassboro NJ School District Refunding (GO Revenue, National Insured)		4.00			8-15-2017		1,355,000		1,360,406
Hackensack NJ (GO Revenue)		1.50			11-9-2016		14,000,000		14,040,040
Hammonton NJ BAN (GO Revenue)		1.75			11-29-2016		2,741,851		2,753,668
Hawthorne NJ BAN (GO Revenue)		2.00			10-28-2016		7,526,600		7,557,309
Hightstown NJ BAN (GO Revenue)		2.00			2-1-2017		3,809,000		3,832,806
Linden NJ BAN (GO Revenue)		2.00			4-11-2017		4,339,208		4,374,312
Maple Shade NJ BAN (GO Revenue)		2.00			6-29-2017		8,572,449		8,634,942
New Jersey Building Authority Series A (Miscellaneous Revenue)		4.00			6-15-2017		1,065,000		1,094,437
New Jersey Building Authority Series A (Miscellaneous Revenue)		5.00			6-15-2017		5,595,000		5,802,854
New Jersey Building Authority Series A (Miscellaneous Revenue)		5.00			6-15-2019		1,100,000		1,190,904
New Jersey Certificate of Participation Equipment Lease Purchase Series A (Miscellaneous Revenue)		5.00			6-15-2017		1,000,000		1,037,450
New Jersey EDA Prerefunded School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2016		765,000		779,130
New Jersey EDA Refunded School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2017		7,785,000		8,270,161
New Jersey EDA Refunding Transportation Project Sublease Series A (Transportation Revenue)		5.00			5-1-2018		5,170,000		5,473,841
New Jersey EDA School Facilities Construction Notes Series DD1 (Miscellaneous Revenue)		5.00			12-15-2018		2,220,000		2,386,100
New Jersey EDA School Facilities Construction Notes Series K (Miscellaneous Revenue) ±		1.12			2-1-2017		9,800,000		9,777,166
New Jersey EDA School Facilities Construction Series C (Miscellaneous Revenue) ±		2.21			2-1-2018		2,000,000		1,991,640
New Jersey EDA School Facilities Construction Series PP (Miscellaneous Revenue)		5.00			6-15-2019		12,710,000		13,779,419
New Jersey EDA School Facilities Construction Series XX (Miscellaneous Revenue)		5.00			6-15-2019		15,000,000		16,262,100
New Jersey EDA Transportation Project Series A (Transportation Revenue)		5.00			5-1-2017		11,175,000		11,542,322
New Jersey EDA Unrefunded School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2016		1,245,000		1,270,286
New Jersey EDA Unrefunded School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2017		315,000		331,191
New Jersey HEFAR Student Loan Assistance Series 1 (Education Revenue)		5.00			12-1-2017		600,000		630,900
New Jersey HFA NCC Manor Project Series 2015K (Housing Revenue) ±		1.05			2-1-2018		20,500,000		20,512,095
New Jersey HFA Prospect Park Apartments Project Series 2015R (Housing Revenue) ±		0.88			10-1-2017		8,145,000		8,147,851
New Jersey Higher Education Assistance Authority Senior Series 1A (Education Revenue)		5.00			12-1-2017		1,740,000		1,832,220
New Jersey Higher Education Student Assistance Authority Series 1 (Education Revenue)		5.00			12-1-2016		2,950,000		2,999,678
New Jersey Higher Education Student Assistance Authority Series 1A (Education Revenue)		5.00			12-1-2017		2,000,000		2,105,120
New Jersey Housing and Mortgage Finance Agency Oakwood Towers Project Series U (Housing Revenue) ±		0.80			11-1-2017		3,000,000		2,996,100
New Jersey Housing and Mortgage Finance Agency Series B (Housing Revenue)		0.55			11-1-2016		3,135,000		3,134,373
New Jersey Housing and Mortgage Finance Agency Series B (Housing Revenue)		1.05			5-1-2018		2,000,000		2,001,200
New Jersey Housing and Mortgage Finance Agency Series F (Housing Revenue) ±		0.95			3-1-2018		8,450,000		8,454,310
New Jersey Housing and Mortgage Finance Agency Trent Center West Senior Apartments Project Series FF (Housing Revenue)		1.10			12-1-2017		6,000,000		6,004,620
New Jersey Transportation Program Series B (Miscellaneous Revenue, National Insured)		5.50			12-15-2016		4,625,000		4,725,871
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue)		5.00			12-15-2016		8,845,000		9,008,721

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue)		5.00	%		12-15-2019	$	4,405,000	$	4,817,528
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue, Ambac Insured)		5.75			6-15-2017		1,700,000		1,775,786
New Jersey Transportation Trust Fund Series AA (Miscellaneous Revenue)		5.00			6-15-2017		695,000		721,028
New Jersey Transportation Trust Fund Series AA (Miscellaneous Revenue)		5.00			6-15-2020		1,600,000		1,762,352
New Jersey Transportation Trust Fund Series B (Miscellaneous Revenue)		5.00			6-15-2017		3,135,000		3,252,406
New Jersey Transportation Trust Fund Series B (Miscellaneous Revenue, National Insured)		5.50			12-15-2017		2,505,000		2,658,156
New Jersey Transportation Trust Fund Series B-1 (Transportation Revenue)		5.00			12-15-2017		2,125,000		2,237,965
New Jersey Transportation Trust Fund Series B-2 (Transportation Revenue, Syncora Guarantee Incorporated Insured)		5.00			12-15-2016		14,515,000		14,783,673
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) ø144A		0.59			12-15-2022		12,305,000		12,305,000
New Jersey Turnpike Authority Series C (Transportation Revenue) ±		0.89			1-1-2017		13,000,000		13,002,730
Newark NJ Refunding General Improvement Series A (GO Revenue)		4.00			10-1-2016		3,710,000		3,732,557
Newark NJ TAN Series A (GO Revenue)		2.50			2-15-2017		4,500,000		4,525,695
Sussex County NJ Municipal Utilities Authority BAN (Water & Sewer Revenue)		2.00			12-1-2016		6,000,000		6,033,240
Tender Option Bond Trust Receipts Floaters Series 2016-XG0047 (Health Revenue, AGC Insured, Deutsche Bank LIQ) ø144A		0.40			7-1-2038		21,805,285		21,805,285
Union County NJ BAN (GO Revenue)		1.25			3-3-2017		6,979,670		6,991,954
Union County NJ BAN (GO Revenue)		1.50			3-22-2017		3,526,000		3,539,469
									365,128,893
New Mexico: 0.73%
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.06			11-1-2039		40,685,000		40,368,878
New York: 13.29%
Babylon NY IDA Covanta Babylon Series A (Industrial Development Revenue)		5.00			1-1-2018		2,500,000		2,651,500
Binghamton NY City School District TAN (GO Revenue)		1.50			1-31-2017		3,000,000		3,010,770
Broome County NY BAN (GO Revenue)		2.00			5-5-2017		19,620,000		19,824,833
Chautauqua County NY Ripley Central School District BAN Series A (GO Revenue)		2.00			11-22-2016		1,605,500		1,612,885
Cicero NY BAN (GO Revenue)		2.00			3-31-2017		3,660,549		3,685,075
Cold Spring NY BAN (GO Revenue)		2.00			5-12-2017		3,040,000		3,064,715
Concord NY BAN (GO Revenue)		2.00			2-23-2017		2,664,000		2,679,105
Cortland NY Cincinnatus Central School District BAN (GO Revenue)		1.50			8-19-2016		2,500,000		2,502,700
Franklin County NY Salmon River Central School District BAN (GO Revenue)		1.50			7-22-2016		2,000,000		2,000,780
Freeport NY BAN Series C (GO Revenue)		2.00			5-3-2017		11,360,000		11,468,261
Fulton NY City School District BAN (GO Revenue)		2.00			6-29-2017		12,575,000		12,719,361
Hamburg NY BAN (GO Revenue) %%		2.00			7-6-2017		6,580,000		6,664,882
Hancock NY Central School District BAN (GO Revenue) %%		2.00			7-6-2017		4,950,000		5,003,411
Hempstead NY Budget Notes (GO Revenue)		2.00			12-16-2016		13,400,000		13,467,670
Long Beach NY BAN (GO Revenue)		1.50			2-16-2017		3,575,000		3,585,618
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		1.20			5-1-2033		10,000,000		9,981,100
Metropolitan Transportation Authority New York BAN Series B-1 (Transportation Revenue)		0.25			8-1-2016		2,000,000		1,999,320
Metropolitan Transportation Authority New York Refunding Series 2008A-2A (Tax Revenue) ±		0.79			11-1-2026		6,905,000		6,878,899
Metropolitan Transportation Authority New York Refunding Sub Series B-3A (Tax Revenue) ±		0.78			11-1-2028		3,000,000		2,965,260

16 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Metropolitan Transportation Authority New York Series A3 (Transportation Revenue) ±		0.91	%		11-15-2042	$	10,000,000	$	9,897,500
Metropolitan Transportation Authority New York Series D-2 (Transportation Revenue) ±		0.75			11-15-2044		6,100,000		6,090,545
Metropolitan Transportation Authority New York Sub Series 3-3B (Tax Revenue) ±		0.75			11-1-2030		42,470,000		42,423,283
Metropolitan Transportation Authority New York Sub Series D-2A (Transportation Revenue, AGM Insured) ±		0.79			11-1-2032		36,650,000		36,590,627
Nassau County NY TAN Series A (GO Revenue)		2.00			9-15-2016		30,185,000		30,268,311
Nassau NY Health Care Corporation Series D-1 (Health Revenue, JPMorgan Chase & Company LOC) ø		0.42			8-1-2029		12,380,000		12,380,000
New York Akron Central School District BAN (GO Revenue) %%		2.00			6-22-2017		6,423,907		6,507,354
New York Energy R&D Authority PCR Keyspan Generation Series A (Industrial Development Revenue, Ambac Insured) ±(m)		0.25			10-1-2028		2,100,000		2,100,000
New York Energy R&D Authority Rochester Gas and Electric Company Project Series A (Resource Recovery Revenue, National Insured) ±		4.75			5-15-2032		1,650,000		1,650,198
New York Energy R&D Authority Rochester Gas and Electric Company Project Series C (Industrial Development Revenue, National Insured) ±		5.00			8-1-2032		4,250,000		4,264,195
New York Environmental Facilities Corporation Waste Management Incorporated Project Series A (Resource Recovery Revenue)		2.75			7-1-2017		1,650,000		1,682,736
New York Local Government Assistance Corporation Refinance Sub Lien Series A-10V (Tax Revenue, AGM Insured) ±(m)(n)		0.45			4-1-2017		6,400,000		6,384,000
New York Local Government Refunding Series C (Tax Revenue)		5.50			4-1-2017		1,420,000		1,465,596
New York Nassau Health Care Corporation RAN (Health Revenue)		2.00			1-17-2017		8,000,000		8,034,560
New York NY Adjusted Fiscal 2008 Sub Series A-3 (GO Revenue, AGM Insured) ±(m)		0.55			8-1-2026		1,300,000		1,300,000
New York NY Adjusted Fiscal 2008 Sub Series C4 (GO Revenue, AGC Insured) ±(m)		0.55			10-1-2027		53,500,000		53,500,000
New York NY Adjusted Fiscal 2008 Sub Series J7 (GO Revenue) ±		0.88			8-1-2021		8,325,000		8,325,333
New York NY Adjusted Fiscal 2015 Sub Series F-4 (GO Revenue, Bank of Tokyo-Mitsubishi LOC) ±		0.42			6-1-2044		8,500,000		8,500,000
New York NY Housing Development Corporation Series E-1A (Housing Revenue)		0.75			11-1-2016		1,705,000		1,705,136
New York NY Series A-6 (GO Revenue) ±		0.91			8-1-2031		39,950,000		39,878,490
New York NY Series J Sub Series J-2 (GO Revenue, AGM Insured) ±(m)		0.55			6-1-2036		17,800,000		17,800,000
New York NY Series J Sub Series J-3 (GO Revenue, AGM Insured) ±(m)		0.50			6-1-2036		25,275,000		25,275,000
New York NY Series J-4 (GO Revenue) ±		0.96			8-1-2025		10,865,000		10,865,326
New York NY Series J-9 (GO Revenue) ±		0.79			8-1-2027		38,000,000		37,968,840
New York NY Sub Series C-4 (GO Revenue, AGM Insured) ±(m)		0.15			1-1-2032		1,025,000		1,025,000
New York NY Transitional Finance Authority Future Tax Secured Bonds Fiscal 2007 Series A (Tax Revenue, Dexia Credit Local SPA) ø		0.55			8-1-2022		1,200,000		1,200,000
New York NY Transitional Finance Authority NYC Recovery Series 3 (Tax Revenue, Dexia Credit Local SPA) ø		0.64			11-1-2022		23,375,000		23,375,000
New York Transportation Development Corporation American Airlines Incorporated John F. Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2017		12,500,000		12,947,375
New York Transportation Development Corporation American Airlines Incorporated John F. Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2018		10,000,000		10,628,800
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		37,360,000		37,374,944
Norwood NY Central School District BAN (GO Revenue)		2.00			8-5-2016		2,000,000		2,002,040
Orange County NY Board of Cooperative Educational Services RAN (Miscellaneous Revenue)		1.50			7-28-2016		11,000,000		11,005,060
Oyster Bay NY BAN Series A (GO Revenue)		2.75			2-3-2017		11,000,000		11,055,770
Oyster Bay NY Public Improvement (GO Revenue)		3.00			8-15-2017		780,000		784,508
Rome NY BAN (GO Revenue)		1.25			9-30-2016		14,100,000		14,108,601
Rome NY BAN (GO Revenue)		1.38			9-30-2016		2,250,000		2,251,710

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Sackets Harbor NY BAN (GO Revenue)		2.00	%		6-16-2017	$	2,750,000	$	2,776,565
Saltaire NY RAN (GO Revenue)		2.00			10-21-2016		5,000,000		5,018,800
Sleepy Hollow NY BAN Series B (GO Revenue)		1.25			11-23-2016		5,315,000		5,318,242
Steuben County NY BAN (GO Revenue)		1.38			8-26-2016		3,750,000		3,751,875
Suffolk County NY Public Improvement Serial Bonds Series B (GO Revenue)		2.00			10-15-2016		1,000,000		1,003,530
Suffolk County NY Public Improvement Serial Bonds Series B (GO Revenue, Build America Mutual Assurance Company Insured)		2.00			10-15-2019		880,000		909,198
Suffolk County NY TAN (GO Revenue)		2.00			7-27-2016		29,800,000		29,829,204
Suffolk County NY TAN Series I (GO Revenue)		1.50			9-30-2016		4,120,000		4,129,394
Suffolk County NY TAN Series I (GO Revenue)		2.00			9-30-2016		23,000,000		23,071,760
Triborough Bridge & Tunnel Authority New York Refunding Bond General Sub Series B-4 (Transportation Revenue) ±		0.83			1-1-2029		4,500,000		4,499,280
Ulster County NY BAN (GO Revenue)		2.00			7-28-2016		3,325,036		3,327,995
Utica NY School District (GO Revenue)		2.00			7-22-2016		1,000,000		1,000,440
Utica NY School District (GO Revenue)		3.00			7-1-2016		960,000		960,048
Utica NY School District (GO Revenue)		3.00			7-1-2017		1,320,000		1,341,622
Vestal NY BAN (GO Revenue)		2.00			5-12-2017		4,350,000		4,388,367
Watertown NY BAN (GO Revenue)		2.00			4-20-2017		5,850,000		5,885,627
Westchester County NY Hudson Project (Health Revenue)		3.00			1-1-2017		500,000		504,395
Yonkers NY Series A (GO Revenue)		4.00			7-1-2016		2,835,000		2,835,284
Yonkers NY Series B (GO Revenue)		3.00			7-1-2016		1,290,000		1,290,090
Yonkers NY Series C (GO Revenue)		4.00			8-15-2016		2,085,000		2,093,986
Yonkers NY Series D (GO Revenue)		2.00			8-1-2016		3,325,000		3,329,223
Yonkers NY Series D (GO Revenue)		3.00			8-15-2016		660,000		662,059
Yonkers NY Series D (GO Revenue)		3.00			8-1-2017		2,045,000		2,092,424
Yonkers NY Series D (GO Revenue)		4.00			8-1-2018		3,135,000		3,328,868
Yonkers NY Series E (GO Revenue)		3.25			9-1-2017		790,000		811,915
Yonkers NY Series E (GO Revenue)		4.00			9-1-2018		1,225,000		1,304,931
Yonkers NY Series F (GO Revenue)		2.00			9-1-2017		345,000		349,564
Yonkers NY Series F (GO Revenue)		3.00			9-1-2018		350,000		365,754
									734,562,423
North Carolina: 0.77%
Ashville NC Housing Authority Spruce Hill Apartments (Housing Revenue) ±		0.95			8-1-2019		10,000,000		9,997,100
Charlotte NC Housing Authority MFHR Boulevard Phase III Project (Housing Revenue) ±		0.75			8-1-2017		10,500,000		10,501,365
Greensboro NC Housing Authority Claremont Courts Project (Housing Revenue) ±		0.95			11-1-2017		4,800,000		4,801,008
Hertford County NC IDA Nucor Corporation Project (Industrial Development Revenue) ±		0.73			11-1-2033		5,000,000		5,000,000
North Carolina Capital Finance Republic Services Incorporated Project Series 2013 (Resource Recovery Revenue) ±		0.80			6-1-2038		12,000,000		12,000,000
									42,299,473
North Dakota: 0.30%
Burleigh County ND (Tax Revenue, AGM Insured)		5.00			11-1-2016		600,000		608,598
Dickinson ND Series A (Tax Revenue)		3.00			10-1-2017		1,100,000		1,128,699
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		3,000,000		3,006,270
North Dakota HFA Meadowlark Heights Apartments Project (Housing Revenue)		0.40			9-1-2016		8,000,000		7,997,920
Williston ND Series A (Tax Revenue, AGM Insured)		3.00			5-1-2017		3,875,000		3,911,658
									16,653,145

18 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Ohio: 3.41%
Cleveland OH Airport System Series A (Airport Revenue, Ambac Insured)		5.25	%		1-1-2017	$	2,315,000	$	2,363,870
Cleveland OH Airport System Series C (Airport Revenue, AGC Insured)		5.00			1-1-2017		2,895,000		2,956,490
Crawford County OH Avita Health System Obligated Group Project (Health Revenue)		1.43			11-1-2017		15,000,000		15,053,100
Cuyahoga OH Metropolitan Housing Authority Bohn Tower Apartments Project (Housing Revenue)		0.70			3-1-2017		12,700,000		12,701,143
Franklin County OH Hospital Facilities Series B (Health Revenue, Barclays Bank plc SPA) ø		0.42			11-15-2041		30,000,000		30,000,000
Franklin County OH Poindexter Phase IIA Project (Housing Revenue) ±		1.10			12-1-2018		3,000,000		3,004,140
Lancaster OH Port Authority (Utilities Revenue) ±		0.71			2-1-2017		3,895,000		3,893,598
Lancaster OH Port Authority (Utilities Revenue) ±		0.76			8-1-2017		3,240,000		3,240,227
Lancaster OH Port Authority (Utilities Revenue) ±		0.81			2-1-2018		7,225,000		7,210,333
Lancaster OH Port Authority (Utilities Revenue) ±		0.86			8-1-2018		4,000,000		3,993,840
Marietta OH BAN (GO Revenue)		1.50			5-12-2017		3,475,000		3,491,750
Medina County OH Manor Apartments Project (Housing Revenue) ±		1.00			12-1-2017		3,000,000		3,003,270
Ohio Air Quality Development Authority AMT Refunding Bond Pollution Control 1st Energy Series C (Industrial Development Revenue) ±		3.95			11-1-2032		450,000		460,607
Ohio Air Quality Development Authority FirstEnergy Generation Series 2009-A (Utilities Revenue)		5.70			8-1-2020		16,790,000		18,561,513
Ohio American Municipal Power Incorporated BAN (Utilities Revenue)		1.00			10-21-2016		4,500,000		4,502,520
Ohio HFA Coopermill Manor Project (Housing Revenue)		0.85			8-1-2017		15,850,000		15,849,049
Ohio HFA MFHR Walnut Court Senior Apartments (Housing Revenue)		0.50			8-1-2016		3,900,000		3,899,844
Ohio Higher Educational Facility John Carroll University Project (Education Revenue) ±		2.25			9-1-2033		1,790,000		1,828,557
Ohio Housing Finance Agency Northland Village Apartments Project (Housing Revenue) ±		1.00			5-1-2019		14,000,000		14,006,020
Ohio Major New State Infrastructure Project Series 3 (Miscellaneous Revenue)		5.00			12-15-2016		1,960,000		2,000,474
Ohio University Hospital Health System Series B (Health Revenue) ø		0.72			1-15-2033		12,720,000		12,720,000
Ohio University Hospital Health System Series B (Health Revenue) ø		0.72			1-15-2045		13,000,000		13,000,000
Ohio Water Development Authority Waste Management Project (Resource Recovery Revenue)		2.25			7-1-2021		1,250,000		1,250,050
Seven Hills OH BAN (GO Revenue)		1.13			7-7-2016		2,020,000		2,020,101
Warren County OH Health Care Facilities Otterbein Homes Series A (Health Revenue)		4.00			7-1-2016		1,760,000		1,760,176
Warren County OH Health Care Facilities Otterbein Homes Series A (Health Revenue)		4.00			7-1-2017		4,375,000		4,507,869
Warrensville Heights OH BAN (GO Revenue)		2.13			8-11-2016		1,220,000		1,221,598
									188,500,139
Oklahoma: 0.37%
Cleveland County OK Detention Facilities Project (Tax Revenue)		3.00			3-1-2018		1,000,000		1,033,980
Cleveland County OK Detention Facilities Project (Tax Revenue)		3.00			3-1-2019		1,505,000		1,582,056
Cleveland County OK Educational Facilities Moore Public Schools Project (Miscellaneous Revenue)		5.00			6-1-2017		4,825,000		5,009,798
Comanche County OK Hospital Authority Refunding (Health Revenue)		5.00			7-1-2017		2,855,000		2,939,337
Oklahoma Capitol Improvement Authority Higher Education Projects Series A (Miscellaneous Revenue)		5.00			7-1-2018		2,225,000		2,414,481
Oklahoma County OK Independent School District #52 Series B (GO Revenue)		2.00			3-1-2017		2,550,000		2,572,670
Oklahoma Housing Finance Agency Cherokee Terrace Apartments (Housing Revenue, GNMA Insured) ±		0.70			12-1-2017		5,000,000		4,998,700
									20,551,022

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Oregon: 0.63%
Oregon Facilities Authority Peace Health Hospitals Series A (Health Revenue, U.S. Bank NA LOC) ø		0.40	%		8-1-2034	$	14,000,000	$	14,000,000
Oregon Facilities Authority Providence Health & Services Series C (Health Revenue) ±		1.27			10-1-2020		14,650,000		14,650,147
Oregon Housing Development Holiday Garden Apartments Series 2015D (Housing Revenue) ±		0.80			8-1-2018		6,400,000		6,398,272
									35,048,419
Pennsylvania: 3.69%
Allentown PA Hospital Authority Sacred Heart Hospital (Health Revenue)		6.00			11-15-2016		115,000		117,359
Beaver County PA IDA FirstEnergy Generation Series A (Utilities Revenue)		2.15			3-1-2017		3,300,000		3,311,781
Beaver County PA IDA FirstEnergy Generation Series A (Miscellaneous Revenue) ±		2.20			1-1-2035		3,000,000		3,000,060
Beaver County PA IDA FirstEnergy Generation Series B (Utilities Revenue) ±		2.50			12-1-2041		4,000,000		4,036,360
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		3,000,000		3,056,130
Bethlehem PA Area School District Authority (Miscellaneous Revenue) ±		0.75			1-1-2030		8,115,000		8,099,582
Chester County PA IDA University Student Housing Project Series C-1 (Housing Revenue)		0.65			2-1-2017		1,900,000		1,899,696
Clarion County PA IDA Clarion University Housing Project Series D (Housing Revenue)		3.00			7-1-2016		435,000		435,022
Clarion County PA IDA Clarion University Housing Project Series D (Housing Revenue)		3.00			7-1-2017		900,000		913,113
Greater Latrobe PA School District (Miscellaneous Revenue)		3.00			10-1-2016		4,580,000		4,607,159
Leigh County PA IDA PPL Corporation Series A (Industrial Development Revenue) ±		0.90			9-1-2029		12,500,000		12,510,250
Lycoming County PA Authority Association of Independent Colleges & Universities of Pennsylvania Financing Program (Education Revenue) ±		3.00			11-1-2035		4,000,000		4,023,400
Montgomery County PA IDA Acts Retirement Community Series B (Health Revenue)		5.00			11-15-2017		2,300,000		2,335,075
Montgomery County PA IDA Refunding Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.55			6-1-2029		12,910,000		13,273,287
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.66			11-1-2018		700,000		694,918
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.72			11-1-2019		1,000,000		989,150
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.81			11-1-2024		5,000,000		4,960,450
Northampton County PA General Purpose Hospital Authority St. Luke’s Hospital Project Series C (Health Revenue) ±		4.50			8-15-2032		2,500,000		2,510,525
Pennsylvania EDFA Solid Waste Disposal Republic Services Incorporated Project Series A (Resource Recovery Revenue) ±		0.90			4-1-2019		10,750,000		10,750,000
Pennsylvania EDFA Solid Waste Disposal Waste Management Incorporated Project (Resource Recovery Revenue) ±		0.85			8-1-2045		36,300,000		36,296,370
Pennsylvania HEFA AICUP Financing Program York College of Pennsylvania Project Series T-2 (Education Revenue) ±		1.35			5-1-2034		2,565,000		2,569,874
Pennsylvania HEFA Wilkes University Project Series A (Education Revenue)		4.00			3-1-2020		735,000		800,275
Pennsylvania HEFA Wilkes University Project Series A (Education Revenue)		5.00			3-1-2021		500,000		573,845
Pennsylvania HEFAR Associated Independent Colleges Series 13 (Education Revenue) ±		1.20			11-1-2031		225,000		225,245
Pennsylvania HEFAR Association of Independent Colleges and Universities of Pennsylvania Financing Program Mount Aloysius College Project Series R1 (Education Revenue) ±		1.25			11-1-2041		1,500,000		1,502,040
Pennsylvania HEFA Independent Colleges Series I4 (Education Revenue) ±		1.50			11-1-2031		5,800,000		5,843,790
Pennsylvania Public School Building Authority The School District of Pennsylvania Project (Miscellaneous Revenue)		5.00			4-1-2017		3,500,000		3,591,000
Pennsylvania Series 2 (GO Revenue)		5.00			4-15-2017		1,250,000		1,293,375

20 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania Turnpike Commission Series B-1 (Transportation Revenue) ±		1.01	%		12-1-2018	$	19,000,000	$	18,929,320
Philadelphia PA School District (GO Revenue)		3.00			9-1-2016		1,450,000		1,455,046
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		1,880,000		2,011,130
Philadelphia PA School District Series B (GO Revenue)		5.00			9-1-2016		3,500,000		3,523,975
Philadelphia PA School District Series C (GO Revenue)		5.00			9-1-2018		250,000		267,438
Philadelphia PA School District Series D (GO Revenue)		4.00			9-1-2016		240,000		241,272
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2016		4,360,000		4,391,087
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2017		6,050,000		6,306,218
Philadelphia PA School District Series E (GO Revenue)		5.00			9-1-2018		145,000		155,114
Philadelphia PA School District Series F (GO Revenue, BHAC Insured)		5.00			9-1-2016		450,000		453,195
Pine-Richland PA School District (GO Revenue, AGM Insured)		4.50			7-15-2030		1,000,000		1,001,700
Tunkhannock PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		2.00			7-15-2016		1,240,000		1,240,694
University Area Joint Authority Pennsylvania Refunding Bond (Water & Sewer Revenue) ±		0.79			11-1-2028		3,300,000		3,294,885
Upper Darby PA School District (GO Revenue)		3.00			5-1-2017		500,000		508,990
Upper Darby PA School District (GO Revenue)		4.00			5-1-2018		700,000		738,591
Warwick PA School District (GO Revenue)		3.00			2-15-2017		1,000,000		1,014,730
Warwick PA School District (GO Revenue)		4.00			2-15-2018		1,250,000		1,314,863
Warwick PA School District (GO Revenue)		4.00			2-15-2019		1,025,000		1,108,353
Washington County PA Hospital Authority Series A (Health Revenue, PNC Bank NA LOC) ±		0.50			7-1-2037		3,310,000		3,310,000
Washington County PA Hospital Authority Series B (Health Revenue, PNC Bank NA LOC) ±		0.50			7-1-2031		3,235,000		3,235,000
Washington County PA Washington Hospital Project (Health Revenue)		4.00			7-1-2016		1,080,000		1,080,086
Washington County PA Washington Hospital Project (Health Revenue)		4.00			7-1-2017		1,085,000		1,111,572
Westmoreland County PA IDA Excela Health Project (Health Revenue)		4.00			7-1-2017		1,650,000		1,686,911
Westmoreland County PA IDA Excela Health Project (Health Revenue)		5.00			7-1-2018		1,650,000		1,752,069
York County PA Refunding Bond (GO Revenue) ±		0.61			6-1-2033		9,445,000		9,419,499
									203,770,869
Puerto Rico: 0.27%
Puerto Rico Electric Power Authority Series L (Utilities Revenue, National Insured)		5.50			7-1-2016		2,000,000		2,000,200
Puerto Rico Electric Power Authority Series SS (Utilities Revenue, National Insured)		5.00			7-1-2016		725,000		725,065
Puerto Rico Electric Power Authority Series TT (Utilities Revenue, AGM Insured)		5.00			7-1-2017		550,000		561,281
Puerto Rico Highway & Transportation Authority Series E (Transportation Revenue, AGM Insured)		5.50			7-1-2017		575,000		597,805
Puerto Rico Municipal Finance Agency Series C (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2016		4,935,000		4,951,680
Puerto Rico Public Improvement Series A (GO Revenue, AGC Insured)		5.00			7-1-2017		250,000		258,323
Puerto Rico Series A (GO Revenue, AGC Insured)		5.00			7-1-2016		6,065,000		6,065,667
									15,160,021
Rhode Island: 0.50%
East Providence RI TAN (GO Revenue)		1.50			7-28-2016		6,700,000		6,703,417
Providence RI Redevelopment Agency Public Safety Building Project Series A (Miscellaneous Revenue)		4.00			4-1-2018		3,025,000		3,167,387
Providence RI Series A (GO Revenue)		5.00			7-15-2017		1,400,000		1,456,364
Rhode Island HEFA (Health Revenue, AGM Insured)		5.00			5-15-2017		7,370,000		7,395,500
Rhode Island HEFA Refunding Bond Providence Financing Program (Education Revenue, AGM Insured)		3.00			5-15-2017		1,815,000		1,847,743

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Rhode Island (continued)
Rhode Island HEFA Refunding Bond Providence Financing Program (Education Revenue, AGM Insured)		3.00	%		5-15-2018	$	1,535,000	$	1,591,304
Rhode Island Housing and Mortgage Finance Corporation Series 66-B (Housing Revenue) ±		1.09			10-1-2045		4,400,000		4,395,336
Rhode Island Student Loan Authority AMT Program Senior Series A (Education Revenue)		5.00			12-1-2019		750,000		830,550
									27,387,601
South Carolina: 0.35%
Berkeley County SC IDA Nucor Corporation Project (Industrial Development Revenue) ø		0.70			4-1-2030		5,000,000		5,000,000
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		3.00			4-1-2017		600,000		606,390
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		3.00			4-1-2018		500,000		506,660
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		4.00			4-1-2019		500,000		524,515
South Carolina HFA West Greenville Project (Housing Revenue) ±		1.00			4-1-2019		7,600,000		7,604,028
South Carolina Housing Finance & Development Authority Spartanburg 7 Project Series A (Housing Revenue) ±		1.05			1-1-2019		3,175,000		3,175,953
Woodruff SC BAN (Water & Sewer Revenue)		1.05			4-1-2017		2,045,000		2,045,736
									19,463,282
Tennessee: 1.05%
Clarksville TN Natural Gas Acquisition Corporation (Utilities Revenue)		5.00			12-15-2016		2,740,000		2,791,813
Knoxville TN Industrial Development Board Collateralized Housing Golden Age Retirement Village Project (Housing Revenue, GNMA Insured)		0.85			12-1-2017		5,900,000		5,911,092
Memphis TN HEFA Ashland Lakes II Apartments Project Series A (Housing Revenue, U.S. Bank NA LOC) ø		0.43			5-1-2043		11,500,000		11,500,000
Metropolitan Government Nashville & Davidson Counties TN Health & Education Facilities Meharry Medical College (Health Revenue, Ambac Insured)		6.00			12-1-2016		560,000		567,140
Nashville TN DWR (Water & Sewer Revenue)		0.68			7-27-2016		15,000,000		15,000,000
Nashville TN HEFA The Paddock at Grandview Apartments Project (Housing Revenue)		0.95			5-1-2018		16,500,000		16,507,755
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.00			9-1-2016		4,315,000		4,345,291
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		1,430,000		1,497,153
									58,120,244
Texas: 9.48%
Alamito TX Public Facilities Corporation HACEP RAD Conversion Program (Housing Revenue) ±		1.00			10-1-2018		9,500,000		9,499,335
Clear Creek TX Independent School District (GO Revenue) ±		3.00			2-15-2035		4,310,000		4,419,733
Dallas TX Independent High School District (GO Revenue) ±		1.50			2-15-2034		4,000,000		4,054,840
Fort Bend TX Independent School District Various School Building Series A (GO Revenue) ±		0.66			8-1-2040		6,675,000		6,675,534
Galveston TX Dickinson Independent High School District (GO Revenue) ±		1.05			8-1-2037		4,000,000		4,007,560
Galveston TX Hotel Occupancy Series B (Tax Revenue, AGM Insured)		4.00			9-1-2016		420,000		422,272
Harris County TX (Transportation Revenue) ±		1.03			8-15-2021		3,500,000		3,500,140
Harris County TX Cypress-Fairbanks Independent High School Series 2014B-2 (GO Revenue) ±		3.00			2-15-2040		960,000		983,846
Harris County TX Cypress-Fairbanks Independent High School Series 2014B-3 (GO Revenue) ±		1.05			2-15-2044		12,000,000		12,006,600
Harris County TX Houston Independent School District Series B (GO Revenue) ±		0.95			6-1-2035		9,150,000		9,165,372

22 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Houston TX Hotel Occupancy Prerefunded Series B (Tax Revenue)		5.00	%		9-1-2018	$	1,735,000	$	1,748,203
Houston TX Hotel Occupancy Unrefunded Series B (Tax Revenue)		5.00			9-1-2018		285,000		287,180
Lamar TX Consolidated Independent School District Schoolhouse Series A (GO Revenue) ±		2.00			8-15-2047		38,220,000		38,289,943
Midland County TX PFFA Compass Pointe Apartments (Housing Revenue)		1.25			3-1-2018		7,000,000		7,020,020
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		26,355,000		26,949,832
Northside TX Independent School District Building Project (GO Revenue) ±		2.13			8-1-2040		1,960,000		1,962,019
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			8-1-2044		2,610,000		2,691,406
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		27,715,000		28,538,690
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series B (Resource Recovery Revenue) ø		0.53			12-1-2039		10,000,000		10,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ±		0.52			11-1-2040		21,600,000		21,600,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ø		0.53			11-1-2040		3,500,000		3,500,000
Richardson TX Independent School District Series A (GO Revenue)		5.00			2-15-2017		3,835,000		3,943,339
Round Rock TX Independent School District (GO Revenue) ±		1.50			8-1-2040		34,300,000		34,327,097
San Antonio TX Electric & Gas Refunding System Junior Lien Series A (Utilities Revenue) ±		0.67			2-1-2033		53,000,000		52,977,740
San Antonio TX Housing Trust Finance Corporation Freedom Hills Ranch Apartments Project (Housing Revenue)		1.00			1-1-2018		12,650,000		12,651,265
San Antonio TX Housing Trust Finance Corporation MFHR Masters Ranch Apartments Project (Housing Revenue)		0.50			9-1-2016		15,500,000		15,499,845
San Antonio TX Junior Lien No Reserve Fund Series F (Water & Sewer Revenue) ±		1.09			5-1-2043		12,320,000		12,321,109
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		2.00			11-15-2016		400,000		401,208
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		3.00			11-15-2017		485,000		494,909
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		4.00			11-15-2018		500,000		527,370
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		4.00			11-15-2019		510,000		546,185
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		3.00			11-15-2017		500,000		510,630
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		4.00			11-15-2018		500,000		528,090
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		4.00			11-15-2019		710,000		761,582
Tarrant County TX Cultural Education Facilities Finance Corporation Hendrick Medical Center (Health Revenue)		4.00			9-1-2017		550,000		568,475
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) ø144A		0.65			11-15-2029		30,400,000		30,400,000
Tender Option Bond Trust Receipts Floaters Series 2016-XG0058 (Health Revenue, Deutsche Bank LIQ) ø144A		0.62			8-15-2027		4,985,000		4,985,000
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2017		6,925,000		7,090,992
Texas Affordable Housing Corporation Woodside Village Project (Housing Revenue) ±		1.00			12-1-2018		5,750,000		5,752,070
Texas Department of Housing and Community Affairs Good Samaritan Towers (Housing Revenue)		0.95			9-1-2017		5,620,000		5,623,372
Texas Lower Neches Valley Authority Chevron USA Incorporated Project (Industrial Development Revenue) ±		0.20			2-15-2017		18,000,000		17,987,760
Texas Municipal Gas Acquisition & Supply Corporation II Series A (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.13			9-15-2017		16,480,000		16,480,989

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		0.88	%		9-15-2017	$	43,265,000	$	43,107,948
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2016		2,500,000		2,549,325
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series B (Utilities Revenue) ±		0.98			12-15-2017		2,975,000		2,967,682
Texas Public Finance Authority Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2016		2,080,000		2,107,976
Texas Public Finance Authority Unemployment Compensation Series B (Miscellaneous Revenue)		4.00			7-1-2017		11,500,000		11,710,680
Texas Tollway Authority Series C (Transportation Revenue) ±		1.95			1-1-2038		1,535,000		1,563,904
Texas Tollway Authortiy Series D (Transportation Revenue, Royal Bank of Canada LOC) ø		0.41			1-1-2049		500,000		500,000
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Transportation Revenue, Banco Bilboa Vizcaya SPA) ø		0.65			4-1-2026		6,500,000		6,500,000
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Tax Revenue) ±		0.74			4-1-2032		24,000,000		23,980,320
Texas Turnpike Authority Central Texas Turnpike System Prerefunded Capital Appreciation 1st Tier Series A (Transportation Revenue, Ambac Insured) ¤		0.00			8-15-2016		4,755,000		4,751,909
Texas Turnpike Authority Central Texas Turnpike System Unrefunded Balance Capital Appreciation 1st Tier Series A (Transportation Revenue, Ambac Insured) ¤		0.00			8-15-2016		340,000		339,759
Williamson County TX (GO Revenue) ±		1.45			8-15-2034		2,600,000		2,625,012
									524,406,067
Vermont: 0.03%
Burlington VT Airport Refunding Series 2012B (Airport Revenue)		3.50			7-1-2018		1,560,000		1,586,005
Virgin Islands: 0.16%
Virgin Islands PFA Senior Lien Matching Fund Loan Series A (Miscellaneous Revenue)		4.00			10-1-2016		1,700,000		1,712,308
Virgin Islands PFA Senior Lien Matching Fund Loan Series B (Miscellaneous Revenue)		5.00			10-1-2017		6,950,000		7,263,932
									8,976,240
Virginia: 0.91%
Bedford VA American Municipal Power Incorporated (Utilities Revenue)		1.25			3-28-2017		4,385,000		4,394,121
Chesapeake VA EDA Electric and Power Company Series 2008A (Utilities Revenue) ±		1.75			2-1-2032		30,000,000		30,582,900
Fredericksburg VA EDA Mary Washington Healthcare Group Series A (Health Revenue) ±		2.29			8-1-2038		4,265,000		4,283,510
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2017		1,250,000		1,301,700
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2018		1,500,000		1,623,495
Louisa VA IDA Virginia Electric & Power Company Series C (Utilities Revenue) ±		0.70			11-1-2035		6,400,000		6,401,216
Virginia Housing Development Authority Series B (Housing Revenue)		2.25			9-1-2017		500,000		508,125
Virginia Small Business Financing Authority Hampton University (Education Revenue)		3.00			10-1-2016		955,000		960,501
									50,055,568
Washington: 0.27%
Grant County WA Public Utility District #2 Series K (Utilities Revenue) ±		0.71			1-1-2044		4,000,000		3,983,920
Kent WA (GO Revenue)		3.00			12-1-2016		500,000		505,030

24 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—June 30, 2016

Security name	Interest rate			Maturity date		Principal		Value
Washington (continued)
Skagit County WA Public Hospital District No. 1 (GO Revenue, National Insured)		5.13	%		12-1-2016	$	1,070,000	$	1,089,014
Washington Energy Northwest Prerefunded (Utilities Revenue)		5.00			7-1-2023		1,000,000		1,000,120
Washington HCFR Series XF2035 (Health Revenue, Morgan Stanley Bank LIQ) ø144A		0.76			10-1-2036		7,655,000		7,655,000
Washington HFA Multicare Health System Series D (Health Revenue, Barclays Bank plc LOC) ±		0.37			8-15-2041		500,000		500,000
									14,733,084
West Virginia: 0.75%
Mason County WV PCR Appalachian Power Company Series L (Industrial Development Revenue) ±		1.63			10-1-2022		16,400,000		16,556,128
West Virginia EDA Appalachian Power Company Mountaineer Project Series A (Utilities Revenue) ø		0.72			2-1-2036		25,000,000		25,000,000
									41,556,128
Wisconsin: 1.97%
Algoma Kewaunee County WI School District BAN (Miscellaneous Revenue)		2.50			11-15-2016		4,860,000		4,871,761
Argyle Green County WI School District BAN (Miscellaneous Revenue) %%		2.00			9-19-2016		6,475,000		6,486,202
Delavan WI School District Anticipation Notes (GO Revenue)		2.00			9-1-2016		8,450,000		8,471,463
Dodgeville WI School District BAN (Miscellaneous Revenue) %%		2.00			9-6-2016		5,945,000		5,955,998
Ellsworth WI Community School District (Miscellaneous Revenue)		2.00			10-1-2017		4,235,000		4,248,594
Ellsworth WI Community School District BAN (Miscellaneous Revenue) %%		2.00			9-7-2016		11,640,000		11,660,486
Milwaukee County WI Series A (Airport Revenue)		5.00			12-1-2016		345,000		351,258
Milwaukee County WI Series B (Airport Revenue)		4.00			12-1-2016		385,000		390,375
Milwaukee County WI Series B (Airport Revenue)		4.00			12-1-2017		385,000		401,736
Mishicot WI School District BAN (Miscellaneous Revenue)		2.00			8-8-2016		8,900,000		8,914,151
Mukwonago WI School District BAN (Miscellaneous Revenue) %%		2.00			9-14-2016		9,500,000		9,518,810
Residual Interest Bonds Floaters Series 2WE-144A (Miscellaneous Revenue, Barclays Bank plc LOC) ø144A		0.58			5-1-2018		25,000,000		25,000,000
Stratford WI BAN (Miscellaneous Revenue)		2.00			8-9-2016		4,000,000		4,006,520
Tender Option Bond Trust Receipts Floaters Series 2015-XF0127 (Health Revenue, JPMorgan Chase & Company LIQ) ø144A		0.61			10-1-2020		4,875,000		4,875,000
Waukesha WI Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.25			12-1-2042		3,800,000		3,800,000
Wisconsin HEFA Aspirus Incorporate Obligation Group Series A (Health Revenue)		3.00			8-15-2016		420,000		421,252
Wisconsin HEFA Aurora Health Care Incorporated Series B (Health Revenue) ±		5.13			8-15-2027		3,500,000		3,518,515
Wisconsin HEFA Aurora Health Care Series B-1 (Health Revenue) ±		1.25			8-15-2025		3,540,000		3,550,974
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		2.00			12-1-2016		1,455,000		1,463,075
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		3.00			12-1-2017		200,000		205,866
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		3.00			12-1-2018		500,000		523,330
									108,635,366
Total Municipal Obligations (Cost $5,282,990,525)									5,287,837,844
Other: 2.55%
Eaton Vance California Municipal Income Trust Preferred shares ±144A§		1.91			9-1-2019		16,975,000		17,000,802
Eaton Vance Massachusetts Municipal Bond Fund Institutional MuniFund Term Preferred Shares ±144A§		1.39			7-1-2019		6,475,000		6,519,160
Eaton Vance Municipal Bond Fund 2 Institutional MuniFund Term Preferred Shares ±144A		1.44			7-1-2019		9,950,000		10,004,327

Portfolio of investments—June 30, 2016 Wells Fargo Ultra Short-Term Municipal Income Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Other (continued)
Eaton Vance Pennsylvania Municipal Bond Fund Institutional MuniFund Term Preferred Shares ±144A		1.39	%		7-1-2019	$	6,000,000	$	6,040,920
Nuveen Enhanced Municipal Credit Opportunities Fund Institutional MuniFund Term Preferred Shares ±144A		1.16			10-1-2017		59,000,000		59,152,220
Nuveen New York AMT-Free Municipal Income Fund Institutional MuniFund Term Preferred Shares ±144A§		1.03			10-1-2017		17,000,000		17,016,320
Nuveen Texas Quality Income Municipal Fund Institutional MuniFund Term Preferred Shares ±144A		1.01			11-1-2018		25,000,000		25,137,500
Total Other (Cost $140,375,721)									140,871,249
	Yield					Shares
Short-Term Investments: 1.23%
Investment Companies: 1.22%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.30					67,619,138		67,619,138
						Principal
U.S. Treasury Securities: 0.01%
U.S. Treasury Bill (z)#		0.26			9-15-2016	$	250,000		249,886
Total Short-Term Investments (Cost $67,868,998)									67,869,024

Total investments in securities (Cost $5,503,980,240) *	99.63	%		5,508,908,867
Other assets and liabilities, net	0.37			20,517,448
Total net assets	100.00	%	$	5,529,426,315

± Variable rate investment. The rate shown is the rate in effect at period end.

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end.

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.

(n) The auction to set the interest rate on the security failed at period end due to insufficient investor interest. A failed auction does not itself cause a default.

%% The security is issued on a when-issued basis.

¤ The security is issued in zero coupon form with no periodic interest payments.

§ The security is subject to a demand feature which reduces the effective maturity.

(l) The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents the 7-day annualized yield at period end.

## All or a portion of this security is segregated for when-issued securities.

(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 $5,503,970,148 and unrealized gains (losses) consists of:

Gross unrealized gains	$	12,366,688
Gross unrealized losses		(7,427,969	)
Net unrealized gains	$	4,938,719

Report of Independent Registered Public Accounting Firm

Board of Trustees and Shareholders of

Wells Fargo Funds Trust:

We have audited the accompanying statement of assets and liabilities, including the summary portfolio of investments, of the Wells Fargo Intermediate Tax/AMT-Free Fund (formerly known as Wells Fargo Advantage Intermediate Tax/AMT-Free Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended (collectively, the “financial statements”), the financial highlights for each of the years in the five-year period then ended (the financial statements and financial highlights are included in Item 1 of this Form N-CSR), and the portfolio of investments as of June 30, 2016 (included in Item 6 of this Form N-CSR). These financial statements, financial highlights and portfolio of investments are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements, financial highlights and portfolio of investments 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, financial highlights, and portfolio of investments are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and portfolio of investments. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with the custodian and brokers, or by other appropriate auditing procedures when replies from brokers were not received. 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, financial highlights, and portfolio of investments referred to above present fairly, in all material respects, the financial position of the Wells Fargo Intermediate Tax/AMT-Free Fund (formerly known as Wells Fargo Advantage Intermediate Tax/AMT-Free Fund), as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

Report of Independent Registered Public Accounting Firm

Board of Trustees and Shareholders of

Wells Fargo Funds Trust:

We have audited the accompanying statement of assets and liabilities, including the summary portfolio of investments, of the Wells Fargo Municipal Bond Fund (formerly known as Wells Fargo Advantage Municipal Bond Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended (collectively, the “financial statements”), the financial highlights for each of the years in the five-year period then ended (the financial statements and financial highlights are included in Item 1 of this Form N-CSR), and the portfolio of investments as of June 30, 2016 (included in Item 6 of this Form N-CSR). These financial statements, financial highlights and portfolio of investments are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements, financial highlights and portfolio of investments 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, financial highlights, and portfolio of investments are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and portfolio of investments. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with the custodian and brokers, or by other appropriate auditing procedures when replies from brokers were not received. 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, financial highlights, and portfolio of investments referred to above present fairly, in all material respects, the financial position of the Wells Fargo Municipal Bond Fund (formerly known as Wells Fargo Advantage Municipal Bond Fund), as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

Report of Independent Registered Public Accounting Firm

Board of Trustees and Shareholders of

Wells Fargo Funds Trust:

We have audited the accompanying statement of assets and liabilities, including the summary portfolio of investments, of the Wells Fargo Ultra Short-Term Municipal Income Fund (formerly known as Wells Fargo Advantage Ultra Short-Term Municipal Income Fund) (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of June 30, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended (collectively, the “financial statements”), the financial highlights for each of the years in the five-year period then ended (the financial statements and financial highlights are included in Item 1 of this Form N-CSR), and the portfolio of investments as of June 30, 2016 (included in Item 6 of this Form N-CSR). These financial statements, financial highlights and portfolio of investments are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements, financial highlights and portfolio of investments 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, financial highlights, and portfolio of investments are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and portfolio of investments. Our procedures included confirmation of securities owned as of June 30, 2016, by correspondence with the custodian and brokers, or by other appropriate auditing procedures when replies from brokers were not received. 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, financial highlights, and portfolio of investments referred to above present fairly, in all material respects, the financial position of the Wells Fargo Ultra Short-Term Municipal Income Fund (formerly known as Wells Fargo Advantage Ultra Short-Term Municipal Income Fund), as of June 30, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

August 25, 2016

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:	August 25, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Wells Fargo Funds Trust
By:	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date:	August 25, 2016
By:	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date:	August 25, 2016
By:	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date:	August 25, 2016