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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09253

Wells Fargo Funds Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: June 30

Registrant is making a filing for 16 of its series:

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

Date of reporting period: December 31, 2016

ITEM 1. REPORT TO STOCKHOLDERS

Semi-Annual Report

December 31, 2016

Wells Fargo Alternative Strategies Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	7
Portfolio of investments	8
Financial statements
Statement of assets and liabilities	31
Statement of operations	32
Statement of changes in net assets	33
Financial highlights	34
Notes to financial statements	38
Other information	51
List of abbreviations	54

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

2 Wells Fargo Alternative Strategies Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

Stocks drifted somewhat lower in the fall as the U.S. presidential campaign wore on toward the election.

Throughout the period, economic and business data, while sometimes uneven, appeared to be strengthening overall.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Alternative Strategies Fund for the six-month period that ended December 31, 2016. During much of the period, positive economic data influenced global stock, bond, and commodity markets. Late in the period, stocks in the U.S. moved higher while they drifted lower in most international markets in reaction to the U.S. presidential election, production-cut agreements among Organization of the Petroleum Exporting Countries (OPEC) members intended to support higher oil prices, and an interest-rate increase in December announced by the U.S. Federal Reserve (the Fed). As interest rates increased and sentiment for stock investments—particularly in the U.S.—improved, bond values globally fell.

The surprise Brexit vote rattled markets briefly before stocks rebounded.

A round of investment market volatility and losses followed the U.K. Brexit vote to leave the European Union (E.U.) at the end of June 2016. The equity sell-off proved temporary. During July 2016, better-than-expected corporate earnings, economic data, consumer confidence, and industrial output sent stocks higher.

Stocks drifted somewhat lower in the fall as the U.S. presidential campaign wore on toward the election. At the same time, political circumstances in countries outside of the U.S. challenged investor sentiment. In the U.K., a new prime minister took office following the Brexit vote and began setting the ground rules for the country’s exit from the E.U. In Brazil, the Senate removed the president from office, and the possibility of presidential impeachment emerged in South Korea due to a corruption scandal. The French president lost a primary election and endorsed his rival. An attempted coup in Turkey, continued escalation of conflicts in Syria and Iraq, and North Korea’s testing of nuclear weapons capabilities also caused uncertainty.

Investors sensed improving economic and business data as the period advanced.

Throughout the period, economic and business data, while sometimes uneven, appeared to be strengthening overall. After generating concern early in 2016, China’s economic growth demonstrated strength. The prime minister’s reelection in Japan offered the potential for new economic stimulus. India appointed a new central-bank governor who many expected would continue the outgoing governor’s policies, which were considered effective. OPEC members agreed to production cuts intended to support increased prices for oil, which could benefit commodities markets that are economically important to many international developed and emerging markets. In the U.S., the S&P 500 Index¹ recorded a 7.8% return for the six-month period that ended December 31, 2016. Developed international markets, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net),² ended the period 5.6% higher. Stocks in emerging markets delivered a 4.5% gain for the period, as measured by the MSCI Emerging Markets Index (Net).³

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. You cannot invest directly in an index. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

³  The Morgan Stanley Capital International (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

Fixed-income markets were volatile before the U.S. election and declined postelection.

Global fixed-income markets were volatile during the period, particularly following the U.S. election. Investors appeared to be anticipating U.S. interest-rate increases and waiting for clarity from central-bank policymakers outside of the U.S. When the Fed increased interest rates in December 2016, investors tended to favor equities and high-yield bonds, over investment-grade bonds.

Currency values in several European and Asian countries fell relative to the U.S. dollar during the period, restraining investor interest in foreign bond markets. While the Bloomberg Barclays U.S. Aggregate Bond Index⁴ lost 2.5% during the period, a 9.3% loss for the Bloomberg Barclays Global Aggregate ex U.S. Dollar Bond Index⁵ reflected relatively more difficult conditions for bonds outside of the U.S.

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,

Andrew Owen

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 Bloomberg Barclays U.S. Aggregate Bond Index (formerly known as Barclays U.S. Aggregate Bond Index) is a broad-based benchmark that measures the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁵  The Bloomberg Barclays Global Aggregate ex U.S. Dollar Bond Index (formerly known as Barclays Global Aggregate ex U.S. Dollar Bond Index) tracks an international basket of government, corporate, agency, and mortgage-related bonds. You cannot invest directly in an index.

4 Wells Fargo Alternative Strategies Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadvisers

The Rock Creek Group, LP

Chilton Investment Company, LLC

Ellington Global Asset Management Corporation

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

George Jikovski

Robert Kinderman

Sudhir Krisnamurthi

Kenneth LaPlace

Soon Pho

Kent M. Stahl, CFA^®

James Stavena

Gregg R. Thomas, CFA^®

Ronald van der Wouden

Torrey Zaches

Aaron Zimmerman

Average annual total returns (%) as of December 31, 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		(8.29	)		(1.14	)		(2.73	)		1.08		3.46		3.05
Class C (WACTX)	4-30-2014		(4.46	)		0.32			(3.46	)		0.32		4.21		3.80
Administrator Class (WADTX)	4-30-2014		–			–			(1.95	)		1.45		3.38		2.90
Institutional Class (WAITX)	4-30-2014		–			–			(2.43	)		1.34		3.13		2.80
Bloomberg Barclays U.S. Aggregate Bond Index3	–		–			–			2.65			2.38		–		–
HFRI Fund of Funds Composite Index4	–		–			–			0.48			1.36		–		–

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 6.

Performance highlights (unaudited) Wells Fargo Alternative Strategies Fund 5

Top ten long positions (%) as of December 31, 20165
AQR Managed Futures Strategy Fund Class I	5.10
The Sherwin-Williams Company	1.81
Halliburton Company	1.36
The Home Depot Incorporated	1.25
Microsoft Corporation	1.20
Yahoo! Incorporated	1.13
Credit-Based Asset Servicing and Securitization LLC Series 07-CB4 Class A1B, 0.71%, 4-25-2037	1.08
Carrington Mortgage Loan Trust Series 06-NC4 Class A3, 0.75%, 10-25-2036	1.07
HSBC Bank plc (Alinma AB)	0.94
Western Digital Corporation	0.94

Top ten short positions (%) as of December 31, 20165
SPDR S&P 500 ETF	(4.46)
Consumer Staples Select Sector SPDR Fund ETF	(1.21)
Schlumberger Limited	(0.91)
National Oilwell Varco Incorporated	(0.73)
iShares MSCI Emerging Markets ETF	(0.71)
Corning Incorporated	(0.67)
Infosys Limited ADR	(0.65)
Occidental Petroleum Corporation	(0.64)
Electronic Arts Incorporated	(0.62)
Toyota Motor Corporation ADR	(0.61)

Sector allocation as of December 31, 20166
	Gross exposure(%)		Net exposure(%)
Consumer Discretionary		13		16
Consumer Staples		8		10
Energy		8		5
Financials		11		15
Health Care		8		11
Industrials		10		9
Information Technology		15		13
Materials		7		10
Real Estate		1		1
Telecommunication Services		2		3
Utilities		1		1
Other		16		6
		100		100

Strategy allocation as of December 31, 2016⁷

Please see footnotes on page 6.

6 Wells Fargo Alternative Strategies Fund Performance highlights (unaudited)

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 0.81% in dividend expense on securities sold short and prime broker fees. 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, 2017, 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 Bloomberg Barclays U.S. Aggregate Bond Index (formerly known as 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  The Hedge Fund Research Incorporated (HFRI) Fund of Funds Composite Index is a global, equally-weighted index of hedge funds that invest with multiple managers in a broad range of strategies. You cannot invest directly in an index.

⁵  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  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.

⁷  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.

Fund expenses (unaudited) Wells Fargo Alternative Strategies Fund 7

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,025.00	$	14.56		2.86	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,010.76	$	14.46		2.86	%
Class C
Actual	$	1,000.00	$	1,026.70	$	18.34		3.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,007.40	$	18.16		3.60	%
Administrator Class
Actual	$	1,000.00	$	1,021.40	$	13.36		2.63	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,011.91	$	13.30		2.63	%
Institutional Class
Actual	$	1,000.00	$	1,020.40	$	13.36		2.63	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,011.91	$	13.30		2.63	%

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

8 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares			Value
Common Stocks: 57.10%
Consumer Discretionary: 9.12%
Auto Components: 0.12%
Bridgestone Corporation		1,030		$	37,137
Delphi Automotive plc		345			23,236
Nifco Incorporated		282			14,887
Stanley Electric Company Limited		739			20,202
Tokai Rika Company Limited		1,190			23,876
Toyo Tire & Rubber Company Limited		4,768			59,358
Toyota Boshoku Corporation		433			9,955
Toyota Industries Corporation		870			41,462
TS Tech Company Limited		910			23,436
					253,549
Automobiles: 0.11%
Chongqing Changchun Automobile Class B		34,665			49,576
Fuji Heavy Industries Limited		1,815			74,106
Isuzu Motors Limited		2,535			32,123
Mazda Motor Corporation		1,105			18,077
Renault SA		365			32,470
Suzuki Motor Corporation		700			24,640
					230,992
Distributors: 0.01%
Paltac Corporation		800			18,906
Diversified Consumer Services: 0.13%
Kroton Educacional SA		15,148			62,040
New Oriental Education & Technology Group Incorporated †		1,482			62,392
Service Corporation International		5,452			154,837
					279,269
Hotels, Restaurants & Leisure: 1.72%
Caesars Acquisition Company Class A †		2,045	��		27,608
Caesars Entertainment Corporation †		2,571			21,854
Chipotle Mexican Grill Incorporated †		185			69,804
ClubCorp Holdings Incorporated		5,171			74,204
Compass Group plc		3,780			69,924
Domino’s Pizza Group plc		7,758			34,496
Domino’s Pizza Incorporated		2,914			464,025
Dunkin Brands Group Incorporated (b)		9,074			475,841
Genting Singapore plc		44,270			27,666
H.I.S. Company Limited		1,816			47,779
Hilton Worldwide Holdings Incorporated		2,687			73,086
Hyatt Hotels Corporation Class A †		1,225			67,694
Ladbrokes Coral Group plc		14,410			20,600
Las Vegas Sands Corporation		2,006			107,140
Mandarin Oriental International Limited		20,185			25,736
McDonald’s Corporation (b)		5,790			704,759

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 9

Security name	Shares		Value
Hotels, Restaurants & Leisure (continued)
MGM Resorts International †(b)		27,619	$	796,256
OPAP SA		6,698		59,225
Panera Bread Company Class A †		336		68,910
Sands China Limited		5,870		25,510
Tosho Company Limited		227		10,449
TUI AG		4,085		57,256
Yum! Brands Incorporated		6,790		430,011
				3,759,833
Household Durables: 0.38%
Alpine Electronics Incorporated		1,370		17,852
Cairn Homes plc †		120,679		171,494
Casio Computer Company Limited		1,280		18,103
Panahome Corporation		2,625		21,247
Sekisui Chemical Company Limited		2,187		34,880
Whirlpool Corporation		3,063		556,762
				820,338
Internet & Direct Marketing Retail: 0.45%
Amazon.com Incorporated †		62		46,492
Netflix Incorporated †		1,086		134,447
Qliro Group AB †		11,366		10,791
Start Today Company Limited		1,604		27,709
The Priceline Group Incorporated †		49		71,837
Wayfair Incorporated Class A †		19,457		681,968
				973,244
Leisure Products: 0.04%
Bandai Namco Holdings Incorporated		700		19,316
Sankyo Company Limited		627		20,252
Sega Sammy Holdings Incorporated		2,635		39,207
Yamaha Corporation		629		19,213
				97,988
Media: 2.83%
Clear Channel Outdoor Holdings Incorporated Class A		3,388		17,109
Comcast Corporation Class A (b)		20,877		1,441,557
Discovery Communications Incorporated Class A †(b)		14,318		392,456
DISH Network Corporation Class A †(b)		15,428		893,744
Grupo Televisa SA		6,950		28,987
M6 Metropole Television SA		1,535		28,552
Nippon Television Network Corporation (b)		4,395		79,796
Septeni Holdings Company Limited		6,005		20,552
SES SA		8,393		184,870
Societe Television Francaise 1 SA		5,387		53,593
The Walt Disney Company		10,664		1,111,402
Time Warner Incorporated (b)		18,953		1,829,533
TV Asahi Corporation		1,375		27,165
Wolters Kluwer NV		1,580		57,247
				6,166,563

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

10 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Multiline Retail: 0.02%
Marks & Spencer Group plc		9,356	$	40,356
Seria Company Limited		235		15,985
				56,341
Specialty Retail: 3.07%
Advance Auto Parts Incorporated		639		108,068
Aoyama Trading Company Limited		1,025		35,694
AutoNation Incorporated †		28,343		1,378,887
AutoZone Incorporated †		1,555		1,228,123
CarMax Incorporated †(b)		6,043		389,109
Halfords Group plc		2,081		9,374
Hikari Tsushin Incorporated		292		27,208
Joyful Honda Company Limited		798		21,454
Lowe’s Companies Incorporated		9,348		664,830
Shimamura Company Limited		266		33,206
The Home Depot Incorporated (b)		20,388		2,733,624
The TJX Companies Incorporated		1,015		76,257
				6,705,834
Textiles, Apparel & Luxury Goods: 0.24%
Brunello Cucinelli SpA		1,122		24,023
Crocs Incorporated †		6,021		41,304
Deckers Outdoor Corporation †		3,366		186,443
Geox SpA		12,157		28,282
Global Brands Group Holding Limited †		202,335		26,875
Nike Incorporated Class B		3,234		164,384
Ralph Lauren Corporation		280		25,290
VF Corporation		685		36,545
				533,146
Consumer Staples: 5.63%
Beverages: 2.43%
Asahi Breweries Limited		720		22,732
Brown-Forman Corporation Class B		15,190		682,335
C&C Group plc		11,345		45,978
Coca-Cola HBC AG		1,453		31,695
Constellation Brands Incorporated Class A		11,648		1,785,755
Davide Campari-Milano SpA		59,951		586,268
Diageo plc		3,780		98,294
Heineken NV		5,187		389,087
Molson Coors Brewing Company Class B		14,027		1,364,967
Monster Beverage Corporation †		1,817		80,566
PepsiCo Incorporated		671		70,207
The Coca-Cola Company		2,243		92,995
Vina Concha y Toro SA		10,435		16,748
Yantai Changyu Pioneer Wine Company Limited Class B		12,800		34,251
				5,301,878

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 11

Security name	Shares		Value
Food & Staples Retailing: 1.52%
Casey’s General Stores Incorporated		9,792	$	1,164,073
Costco Wholesale Corporation		8,795		1,408,167
J Sainsbury plc		25,442		78,167
Metro AG		1,766		58,716
The Kroger Company (b)		14,505		500,568
Walgreens Boots Alliance Incorporated		880		72,829
Welcia Holdings Company		393		24,009
				3,306,529
Food Products: 1.25%
Chocoladefabriken Lindt & Sprungli AG		20		1,215,752
CJ Cheiljedang Corporation		117		34,631
Mondelez International Incorporated Class A		848		37,592
Morinaga & Company Limited		725		30,241
Nestle SA		12,395		889,183
The Hershey Company		5,066		523,976
				2,731,375
Household Products: 0.12%
Colgate-Palmolive Company		1,893		123,878
Lion Corporation		1,909		31,361
Reckitt Benckiser Group plc		849		72,049
The Procter & Gamble Company		503		42,292
				269,580
Personal Products: 0.08%
Coty Incorporated Class A		3,717		68,058
Unilever NV ADR		2,338		95,998
				164,056
Tobacco: 0.23%
Altria Group Incorporated		272		18,393
British American Tobacco plc		1,079		61,455
Japan Tobacco Incorporated		775		25,490
Reynolds American Incorporated (b)		6,924		388,021
				493,359
Energy: 5.87%
Energy Equipment & Services: 1.47%
Baker Hughes Incorporated		2,056		133,578
Ensco plc Class A		2,631		25,573
Halliburton Company (b)		54,746		2,961,212
Helmerich & Payne Incorporated		348		26,935
Hilong Holding Limited		93,995		27,273
Saipem SpA †		38,534		21,701
Trican Well Service Limited †		3,690		12,642
				3,208,914

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

12 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Oil, Gas & Consumable Fuels: 4.40%
Anadarko Petroleum Corporation		19,826	$	1,382,467
BP plc		25,879		162,528
Cabot Oil & Gas Corporation		976		22,799
Canadian Natural Resources Limited		8,891		283,445
Cobalt International Energy Incorporated †		2,942		3,589
Concho Resources Incorporated †(b)		8,483		1,124,845
Continental Resources Incorporated †		11,645		600,183
Devon Energy Corporation (b)		12,523		571,925
Diamondback Energy Incorporated †		323		32,642
Eni SpA		8,200		133,533
EOG Resources Incorporated		858		86,744
Exxon Mobil Corporation		6,520		588,495
Hess Corporation		338		21,054
Imperial Oil Limited		1,995		69,405
Japan Petroleum Exploration Company		1,140		25,351
Kinder Morgan Incorporated		78,138		1,618,238
Marathon Oil Corporation		1,081		18,712
Newfield Exploration Company †		364		14,742
Nippon Gas Company Limited		580		16,674
Parsley Energy Incorporated Class A †(b)		23,543		829,655
Petroleo Brasileiro SA ADR †		3,200		32,352
Pioneer Natural Resources Company (b)		7,585		1,365,831
Plains All American Pipeline LP		8,143		262,937
Royal Dutch Shell plc Class B		3,957		114,795
Southwestern Energy Company †		1,547		16,739
Statoil ASA		1,748		32,064
Total SA		2,934		150,471
TransCanada Corporation		185		8,342
				9,590,557
Financials: 6.26%
Banks: 3.44%
Banca Popolare dell’Emilia Romagna Scarl		10,071		53,642
Banco Popular Espanol SA		39,508		38,178
Bank of America Corporation		71,544		1,581,122
Bank of Ireland †		164,800		40,594
Bank of Nova Scotia		779		43,375
Bank of the Ozarks Incorporated (b)		10,475		550,880
BNP Paribas SA		3,658		233,154
CaixaBank SA		30,420		100,548
Citigroup Incorporated		4,015		238,611
Citizens Financial Group Incorporated		1,272		45,321
DBS Group Holdings Limited		1,235		14,788
Eurobank Ergasias SA †		16,233		11,022
FinecoBank SpA		10,494		58,878
HDFC Bank Limited ADR		1,061		64,381
HSBC Holdings plc		20,046		162,285
ICICI Bank Limited ADR		8,448		63,276
ING Group NV		5,612		78,983
JPMorgan Chase & Company (b)		13,207		1,139,632

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 13

Security name	Shares		Value
Banks (continued)
Mitsubishi UFJ Financial Group Incorporated (b)		20,258	$	124,833
PNC Financial Services Group Incorporated		1,678		196,259
Regions Financial Corporation (b)		57,239		821,952
Sberbank of Russia (a)		18,058		50,827
Sberbank ADR		5,100		59,058
Signature Bank †(b)		4,753		713,901
Societe Generale SA		2,092		102,939
Standard Chartered plc †		8,499		69,507
SunTrust Banks Incorporated		9,622		527,767
The San-in Godo Bank Limited		2,580		21,523
Tokyo TY Financial Group Incorporated		449		15,655
UniCredit SpA		13,523		38,918
Western Alliance Bancorp †		5,099		248,372
				7,510,181
Capital Markets: 1.45%
Affiliated Managers Group Incorporated †		7,130		1,035,989
ANIMA Holding SpA 144A		9,935		53,964
GAM Holding AG		2,235		25,899
Hellenic Exchanges SA Holding		6,177		31,796
Ichiyoshi Securities Company Limited		4,100		31,467
Intercontinental Exchange Incorporated		5,281		297,954
Japan Exchange Group Incorporated		2,044		29,206
Julius Baer Group Limited		2,039		90,567
Moody’s Corporation		8,759		825,711
Nomura Holdings Incorporated		3,645		21,491
OM Asset Management plc		15,728		228,056
Raymond James Financial Incorporated		397		27,500
SEI Investments Company		4,982		245,912
UBS Group AG		13,442		210,547
				3,156,059
Consumer Finance: 0.18%
Ally Financial Incorporated		12,337		234,650
Capital One Financial Corporation		919		80,174
Santander Consumer USA Holdings Incorporated †		5,460		73,710
				388,534
Diversified Financial Services: 0.07%
Amundi SA		1,603		83,906
Berkshire Hathaway Incorporated Class B †		469		76,438
				160,344
Insurance: 1.11%
Ageas NV		2,022		80,051
Ambac Financial Group Incorporated †		295		6,638
American International Group Incorporated		9,030		589,750
Assicurazioni Generali SpA		8,825		131,170
Chubb Limited		703		92,880

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

14 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Insurance (continued)
Coface SA		5,448	$	35,556
Dai Ichi Mutual Life Insurance		1,780		29,637
Delta Lloyd NV		4,567		25,561
Japan Post Insurance Company Limited		1,476		31,610
MetLife Incorporated		1,539		82,937
MS&AD Insurance Group Holdings Incorporated		1,720		53,333
Principal Financial Group Incorporated		567		32,807
Prudential Financial Incorporated		3,819		397,405
Saga plc		19,508		46,905
Sony Financial Holdings Incorporated		1,650		25,751
Storebrand ASA †		9,779		52,002
T&D Holdings Incorporated		3,059		40,451
Tokio Marine Holdings Incorporated		1,691		69,391
Unum Group		680		29,872
W.R. Berkley Corporation		6,506		432,714
Willis Towers Watson plc		613		74,958
Zurich Insurance Group AG		218		60,029
				2,421,408
Thrifts & Mortgage Finance: 0.01%
Genworth Mortgage Insurance		8,070		19,044
Health Care: 5.19%
Biotechnology: 0.21%
Alder Biopharmaceuticals Incorporated †		795		16,536
Biogen Incorporated †		528		149,731
Incyte Corporation †		1,480		148,400
Regeneron Pharmaceuticals Incorporated †		143		52,494
Tesaro Incorporated †		126		16,944
Vertex Pharmaceuticals Incorporated †		800		58,936
				443,041
Health Care Equipment & Supplies: 2.02%
Align Technology Incorporated †		720		69,214
Becton Dickinson & Company		11,333		1,876,178
Dentsply Sirona Incorporated		7,200		415,656
IDEXX Laboratories Incorporated †		4,245		497,811
Medtronic plc		1,287		91,673
Shandong Weigao Group Medical Polymer Company Limited H Shares		45,490		30,387
St. Jude Medical Incorporated		17,812		1,428,344
				4,409,263
Health Care Providers & Services: 1.57%
Acadia Healthcare Company Incorporated †		764		25,288
Aetna Incorporated		4,936		612,113
Cardinal Health Incorporated		1,299		93,489
Envision Healthcare Corporation †		581		36,771
McKesson Corporation		361		50,702
Medipal Holdings Corporation		1,955		30,828

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 15

Security name	Shares		Value
Health Care Providers & Services (continued)
UnitedHealth Group Incorporated		11,935	$	1,910,078
Universal Health Services Incorporated Class B (b)		6,279		667,960
				3,427,229
Health Care Technology: 0.01%
Agfa-Gevaert NV †		6,396		24,729
Life Sciences Tools & Services: 0.52%
Mettler-Toledo International Incorporated †		539		225,604
Thermo Fisher Scientific Incorporated		6,430		907,273
				1,132,877
Pharmaceuticals: 0.86%
Allergan plc †		3,463		727,265
Almirall SA		2,385		37,056
Astellas Pharma Incorporated		2,839		39,436
AstraZeneca plc		4,191		229,196
AstraZeneca plc ADR		3,523		96,248
Bristol-Myers Squibb Company		3,205		187,300
H. Lundbeck AS †		813		33,073
Johnson & Johnson		807		92,974
Kaken Pharmaceutical Company Limited		496		26,312
Merck & Company Incorporated		1,476		86,892
Mylan NV †		1,635		62,375
Novartis AG		1,587		115,483
Ono Pharmaceutical Company Limited		2,521		55,122
Roche Holding AG		210		47,968
Teva Pharmaceutical Industries Limited ADR		503		18,234
UCB SA		423		27,121
				1,882,055
Industrials: 6.72%
Aerospace & Defense: 0.92%
Airbus Group NV		7,453		493,005
Cobham plc		52,904		106,731
Leonardo-Finmeccanica SpA †		6,886		96,696
Lockheed Martin Corporation (b)		2,521		630,099
Qinetiq Group plc		21,893		70,906
Raytheon Company		3,356		476,552
Thales SA		173		16,778
Ultra Electronics Holdings plc		2,367		56,621
United Technologies Corporation		512		56,125
				2,003,513
Air Freight & Logistics: 0.75%
FedEx Corporation		7,938		1,478,056
PostNL †		17,383		74,876
United Parcel Service Incorporated Class B		805		92,285
				1,645,217

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

16 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Airlines: 0.09%
Air France-KLM †		9,989	$	54,404
Air New Zealand Limited		18,110		27,615
Deutsche Lufthansa AG		5,773		74,564
Japan Airlines Company Limited		1,080		31,557
				188,140
Building Products: 0.94%
Compagnie de Saint-Gobain SA		5,302		246,994
Fortune Brands Home & Security Incorporated		4,491		240,089
Johnson Controls International plc (b)		35,120		1,446,593
Owens Corning Incorporated		402		20,727
Sanwa Holdings Corporation		8,020		76,512
TOTO Limited		252		9,972
				2,040,887
Commercial Services & Supplies: 0.06%
Aeon Delight Company Limited		963		26,902
Atento SA †		2,705		20,558
Nippon Kanzai Company Limited		1,960		30,404
Spotless Group Holdings Limited		57,566		41,127
				118,991
Construction & Engineering: 0.11%
Balfour Beatty plc		10,182		33,742
Hazama Ando Corporation		6,845		45,155
JGC Corporation		1,206		21,917
Kandenko Company Limited		1,393		12,574
Kinden Corporation		2,385		29,753
Nippo Corporation		1,281		23,905
Taisei Corporation		3,090		21,627
Vinci SA		841		57,278
				245,951
Electrical Equipment: 0.81%
Denyo Company Limited		2,255		30,562
Eaton Corporation plc		270		18,114
Legrand SA		1,569		89,104
Mabuchi Motor Company Limited		275		14,353
Mitsubishi Electric Corporation		2,250		31,370
Rockwell Automation Incorporated		10,930		1,468,992
Schneider Electric SE		749		52,123
Ushio Incorporated		1,340		17,095
Zumtobel Group AG		2,471		44,193
				1,765,906
Industrial Conglomerates: 0.13%
Beijing Enterprises Holdings Limited		6,110		28,878
Honeywell International Incorporated		377		43,675

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 17

Security name	Shares		Value
Industrial Conglomerates (continued)
Koninklijke Philips NV		1,476	$	45,058
Rheinmetall AG		2,317		155,852
				273,463
Machinery: 0.28%
Alstom SA †		5,899		162,536
Atlas Copco AB Class A		1,281		39,018
Daifuku Company Limited		1,500		31,996
Hino Motors Limited		3,425		34,873
IHI Corporation †		9,575		24,905
Kawasaki Heavy Industries Limited		9,913		31,128
Makita Corporation		486		32,559
Mitsubishi Heavy Industries Limited		8,945		40,762
NGK Insulators Limited		1,875		36,369
Shinmaywa Industries Limited		1,131		10,171
SMC Corporation		116		27,696
Takuma Company Limited		3,195		27,310
The Middleby Corporation †		737		94,933
Toshiba Machine Company Limited		4,015		16,112
				610,368
Marine: 0.03%
DS Norden AS †		2,247		35,157
Kuehne & Nagel International AG		268		35,425
				70,582
Professional Services: 0.77%
Adecco SA		765		50,071
Experian Group Limited		4,089		79,318
Hays plc		28,740		52,845
IHS Markit Limited †		1,193		42,244
Nielsen Holdings plc		24,656		1,034,319
Recruit Holdings Company Limited		663		26,605
Robert Half International Incorporated		7,593		370,387
SThree plc		2,626		10,037
TechnoPro Holdings Incorporated		606		19,444
				1,685,270
Road & Rail: 1.70%
Avis Budget Group Incorporated †(b)		2,361		86,601
Canadian National Railway Company		1,305		87,826
CSX Corporation (b)		40,749		1,464,112
DSV AS		1,494		66,466
Genesee & Wyoming Incorporated Class A †		722		50,114
Hitachi Transport System Limited		1,110		22,537
J.B. Hunt Transport Services Incorporated		982		95,323
Kansas City Southern		400		33,940
Knight Transportation Incorporated		1,606		53,078

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

18 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Road & Rail (continued)
Old Dominion Freight Line Incorporated †		4,813	$	412,907
Union Pacific Corporation (b)		12,846		1,331,873
				3,704,777
Trading Companies & Distributors: 0.12%
Fastenal Company		1,449		68,074
Itochu Corporation		3,618		48,044
Rexel SA		6,810		112,080
SIG plc		30,932		39,340
				267,538
Transportation Infrastructure: 0.01%
Hamburger Hafen Und Logistik AG		1,227		22,861
Information Technology: 11.04%
Communications Equipment: 0.40%
ARRIS International plc †		907		27,328
Cisco Systems Incorporated		956		28,890
Juniper Networks Incorporated (b)		17,399		491,696
Motorola Solutions Incorporated		404		33,488
Nokia Oyj		22,566		108,984
Radware Limited †		7,277		106,099
Telefonaktiebolaget LM Ericsson Class B		12,287		72,153
				868,638
Electronic Equipment, Instruments & Components: 0.34%
Alps Electric Company Limited		1,442		34,867
Amano Corporation		1,529		26,858
Flextronics International Limited †(b)		38,616		554,912
Hosiden Corporation		2,305		18,657
Largan Precision Company Limited		380		44,686
Siix Corporation		652		22,008
Spectris plc		700		19,954
WPG Holdings Company Limited		22,130		26,093
				748,035
Internet Software & Services: 3.43%
Alibaba Group Holding Limited ADR †		1,500		131,715
Alphabet Incorporated Class A †		1,515		1,200,562
Alphabet Incorporated Class C †(b)		2,105		1,624,681
Baidu Incorporated ADR †		687		112,950
Dena Company Limited		1,831		40,012
Envestnet Incorporated †		812		28,623
Facebook Incorporated Class A †(b)		13,948		1,604,718
GMO Internet Incorporated		749		9,574
Just Eat plc †		8,319		59,822
Mimecast Limited †		1,670		29,893
SMS Company Limited		698		15,474
Tencent Holdings Limited		2,123		51,935

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 19

Security name	Shares		Value
Internet Software & Services (continued)
Yahoo! Incorporated †		63,560	$	2,457,865
Yandex NV Class A †		5,902		118,807
				7,486,631
IT Services: 1.00%
Accenture plc Class A		747		87,496
Alliance Data Systems Corporation		316		72,206
Automatic Data Processing Incorporated		741		76,160
Cerved Information Solutions SpA		11,369		94,424
Cognizant Technology Solutions Corporation Class A †(b)		11,600		649,948
CSRA Incorporated (b)		10,005		318,559
MasterCard Incorporated Class A		7,451		769,316
Sopra Steria Group		394		44,730
Visa Incorporated Class A		861		67,175
				2,180,014
Semiconductors & Semiconductor Equipment: 0.73%
Intel Corporation		5,114		185,485
Kontron AG †		5,039		15,117
Marvell Technology Group Limited (b)		76,185		1,056,686
Micron Technology Incorporated †		3,139		68,807
Silicon Motion Technology Corporation		440		18,691
Skyworks Solutions Incorporated		725		54,129
STMicroelectronics NV		6,734		76,556
Taiwan Semiconductor Manufacturing Company Limited		6,400		36,042
Tokyo Electron Limited		420		39,691
Tokyo Seimitsu Company Limited		1,265		37,504
				1,588,708
Software: 2.92%
Dell Technologies Incorporated Class V †		879		48,319
Microsoft Corporation (b)		42,168		2,620,320
Nintendo Company Limited		479		100,575
Nuance Communications Incorporated †		12,382		184,492
Oracle Corporation (b)		17,930		689,409
PTC Incorporated †(b)		18,221		843,086
ServiceNow Incorporated †		540		40,144
SS&C Technologies Holdings Incorporated		742		21,221
Symantec Corporation (b)		15,250		364,323
The Descartes Systems Group Incorporated †		1,755		37,423
Verint Systems Incorporated †(b)		19,623		691,711
VMware Incorporated Class A †(b)		8,186		644,484
Workday Incorporated Class A †		1,307		86,380
				6,371,887
Technology Hardware, Storage & Peripherals: 2.22%
Apple Incorporated		382		44,243
Catcher Technology Company Limited		5,535		38,470

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

20 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Technology Hardware, Storage & Peripherals (continued)
Hewlett Packard Enterprise Company		10,461	$	242,068
HP Incorporated (b)		87,849		1,303,679
NetApp Incorporated		29,605		1,044,168
Samsung Electronics Company Limited		68		101,454
Western Digital Corporation (b)		30,216		2,053,177
				4,827,259
Materials: 4.86%
Chemicals: 2.56%
Akzo Nobel NV		1,215		75,958
Albemarle Corporation		3,259		280,535
Celanese Corporation Series A		661		52,047
CF Industries Holdings Incorporated		1,087		34,219
Ingevity Corporation †		10,375		569,173
JSR Corporation		1,832		28,889
LG Chem Limited		104		22,474
Mitsui Chemicals Incorporated		3,128		14,051
Nissan Chemical Industries Limited		737		24,624
Platform Specialty Products Corporation †		7,058		69,239
Praxair Incorporated		601		70,431
The Sherwin-Williams Company		14,721		3,956,122
The Valspar Corporation		1,857		192,404
Valvoline Incorporated		9,037		194,296
				5,584,462
Construction Materials: 1.25%
Boral Limited		6,555		25,592
BRAAS Monier Building Group SA		3,267		86,577
Buzzi Unicem SpA		4,567		108,216
CRH plc		2,412		83,673
CRH plc - London Exchange		3,120		108,816
Ibstock plc 144A		23,082		52,995
LafargeHolcim Limited - BATS Exchange		4,976		262,165
Martin Marietta Materials Incorporated		1,866		413,375
Sumitomo Osaka Cement Company		8,910		33,620
Taiheiyo Cement Corporation		9,085		28,761
Vicat SA		607		36,842
Vulcan Materials Company (b)		11,366		1,422,455
Wienerberger AG		3,830		66,502
				2,729,589
Containers & Packaging: 0.56%
Ball Corporation		8,929		670,300
Berry Plastics Group Incorporated †(b)		6,709		326,930
International Paper Company		1,380		73,223
Smurfit Kappa Group plc		4,130		94,753
WestRock Company		919		46,658
				1,211,864

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 21

Security name	Shares		Value
Metals & Mining: 0.49%
Anglo American plc †		4,167	$	59,571
BHP Billiton Limited ADR		638		22,828
Centerra Gold Incorporated		700		3,279
Constellium NV Class A †		1,751		10,331
Franco-Nevada Corporation		197		11,773
Freeport-McMoRan Incorporated †		18,047		238,040
Glencore International plc †		25,469		87,055
Klondex Mines Limited †		2,000		9,310
Lonmin plc †		3,474		6,058
Randgold Resources Limited ADR		315		24,047
Reliance Steel & Aluminum Company		555		44,145
Rio Tinto plc ADR		575		22,115
Salzgitter AG		1,326		46,830
Sanyo Special Steel Company Limited		3,410		16,164
Steel Dynamics Incorporated		11,364		404,331
Vale SA ADR		6,028		45,933
Yamato Kogyo Company Limited		960		26,901
				1,078,711
Real Estate: 0.72%
Equity REITs: 0.28%
Columbia Property Trust Incorporated		1,083		23,393
National Storage REIT NPV		33,666		36,321
Hibernia REIT plc		72,021		93,326
Irish Residential Properties REIT plc		55,688		68,585
Public Storage Incorporated		342		76,437
Equinix Incorporated		176		62,904
LaSalle Logiport REIT		38		35,992
American Tower Corporation		917		96,909
Grivalia Properties Real Estate Investment Company		8,660		69,828
Host Hotels & Resorts Incorporated		2,018		38,019
				601,714
Real Estate Management & Development: 0.44%
CBRE Group Incorporated Class A †		15,844		498,928
Daito Trust Construction Company Limited		226		33,994
LEG Immobilien AG		781		60,672
Corporacion Inmobiliaria Vesta SAB de CV		25,510		30,642
BR Malls Participacoes SA †		11,700		42,958
Grand City Properties SA		10,162		184,952
Daiwa House Industry Company Limited		1,705		46,624
Sumitomo Real Estate Sales Company Limited		2,564		59,781
				958,551
Telecommunication Services: 1.39%
Diversified Telecommunication Services: 1.23%
Cellnex Telecom SA		26,348		379,002
Hellenic Telecommunications Organization SA		8,222		77,288

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

22 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Diversified Telecommunication Services (continued)
Nippon Telegraph & Telephone Corporation		3,254	$	136,758
Sunrise Communications Group AG 144A		4,988		328,190
Telecom Italia SpA †		31,802		28,020
Telecom Italia RSP		38,978		28,188
Telefonica SA		4,642		43,098
Verizon Communications Incorporated (b)		31,282		1,669,833
				2,690,377
Wireless Telecommunication Services: 0.16%
KDDI Corporation		3,095		78,371
Orange Belgium SA †		1,691		35,343
VimpelCom Limited ADR		58,300		224,455
				338,169
Utilities: 0.30%
Electric Utilities: 0.05%
Iberdrola SA		9,395		61,652
Power Assets Holdings Limited		5,625		49,580
				111,232
Gas Utilities: 0.04%
ENN Energy Holdings Limited		11,250		46,280
Infraestructura Energetica Nova SAB de CV		5,025		21,889
UGI Corporation		320		14,746
				82,915
Independent Power & Renewable Electricity Producers: 0.03%
China Longyuan Power Group Corporation H Shares		47,000		36,730
Huadian Fuxin Energy Corporation Limited H Shares		28,261		6,268
Huaneng Renewables Corporation Limited H Shares		63,845		20,748
				63,746
Multi-Utilities: 0.17%
E.ON SE		25,285		178,329
Engie SA		4,405		56,200
National Grid plc		6,366		74,657
RWE AG †		2,307		28,692
Veolia Environnement SA		2,488		42,362
				380,240
Water Utilities: 0.01%
Guangdong Investment Limited		16,380		21,630
Total Common Stocks (Cost $112,672,800)				124,504,851

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 1.39%
Consumer Discretionary: 0.53%
Hotels, Restaurants & Leisure: 0.07%
Caesars Entertainment Operating Company Incorporated (s)		9.00	%		2-15-2020	$	83,602	$	86,737
Caesars Entertainment Operating Company Incorporated (s)		10.00			12-15-2018		35,000		25,113
Caesars Entertainment Operating Company Incorporated (s)		11.25			6-1-2017		49,197		50,058
									161,908
Multiline Retail: 0.04%
Neiman Marcus Group Limited 144A		8.00			10-15-2021		90,000		66,825
Neiman Marcus Group Limited (PIK at 9.50%) 144A¥		8.75			10-15-2021		15,000		10,613
									77,438
Specialty Retail: 0.42%
Guitar Center Incorporated 144A		6.50			4-15-2019		195,000		176,963
New Albertsons Incorporated (i)		6.52			4-10-2028		100,000		78,875
New Albertsons Incorporated (i)		6.57			2-23-2028		545,000		478,919
New Albertsons Incorporated		6.63			6-1-2028		20,000		17,900
New Albertsons Incorporated (i)		7.15			7-23-2027		15,000		12,450
New Albertsons Incorporated		7.75			6-15-2026		25,000		24,750
New Albertsons Incorporated		8.00			5-1-2031		100,000		95,750
New Albertsons Incorporated		8.70			5-1-2030		25,000		25,125
									910,732
Financials: 0.46%
Insurance: 0.46%
Ambac Assurance Corporation 144A		5.10			6-7-2020		839,654		1,015,981
Health Care: 0.25%
Health Care Equipment & Supplies: 0.25%
Community Health Systems Incorporated		5.13			8-1-2021		585,000		542,588
Industrials: 0.15%
Aerospace & Defense: 0.15%
DynCorp International Incorporated		11.88			11-30-2020		352,769		328,075
Total Corporate Bonds and Notes (Cost $2,922,762)									3,036,722
						Shares
Exchange-Traded Funds: 0.01%
TOPIX ETF							1,470		19,571
Total Exchange-Traded Funds (Cost $19,626)									19,571

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

24 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Foreign Corporate Bonds and Notes @: 0.08%
Consumer Discretionary: 0.08%
Textiles, Apparel & Luxury Goods: 0.08%
Boardriders SA (EUR)		9.50	%		12-15-2020		193,000	$	170,656
Total Foreign Corporate Bonds and Notes (Cost $190,055)									170,656
						Shares
Investment Companies: 5.10%
Alternative Investment Funds: 5.10%
AQR Managed Futures Strategy Fund Class I							1,192,899		11,117,816
Total Investment Companies (Cost $12,153,102)									11,117,816
						Principal
Municipal Obligations: 0.35%
Puerto Rico: 0.35%
Puerto Rico Commonwealth Public Improvement Series A (GO Revenue) (i)(s)		5.75			7-1-2041	$	5,000		3,075
Puerto Rico Commonwealth Refunding Bond Public Improvement Series A (GO Revenue) (i)(s)		5.00			7-1-2041		10,000		6,050
Puerto Rico Commonwealth Refunding Bond Public Improvement Series A (GO Revenue) (i)(s)		5.13			7-1-2037		95,000		58,781
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series A (GO Revenue) (i)(s)		5.00			7-1-2033		80,000		49,800
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series A (GO Revenue) (i)(s)		5.00			7-1-2034		10,000		6,238
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series A (Tax Revenue) (i)(s)		5.13			7-1-2031		10,000		6,288
Puerto Rico Commonwealth Unrefunded Balance Bond Public Improvement Series B (GO Revenue) (i)(s)		5.25			7-1-2032		5,000		3,088
Puerto Rico Public Buildings Authority Government Facilities Series T (Miscellaneous Revenue) (i)(s)		5.60			7-1-2030		646,000		423,130
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2036		110,000		77,296
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2037		90,000		63,231
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2038		65,000		45,678
Puerto Rico Sales Tax Financing Corporation Series B (Tax Revenue) (i)		6.05			8-1-2039		15,000		10,538
Puerto Rico Sales Tax Financing Corporation Series C (Tax Revenue) (i)		6.00			8-1-2038		10,000		7,027
Total Municipal Obligations (Cost $810,324)									760,220
Non-Agency Mortgage-Backed Securities: 5.75%
American Home Mortgage Investment Corporation Series 2006-1 Class A2 ±		0.91			3-25-2046		2,656,916		1,087,638
Bear Stearns Alternative A-paper Trust Series 2006-3 Class 34A1 ±		3.10			5-25-2036		1,889,172		1,144,883
BNC Mortgage Loan Trust Series 2007-4 Class A2 ±		2.09			11-25-2037		2,500,000		1,090,781
Carrington Mortgage Loan Trust Series 06-NC4 Class A3 ±		0.75			10-25-2036		3,250,000		2,335,585
Citi Held for Asset Issuance Series 16-MP1 Class A 144A		4.65			4-15-2025		764,031		777,005
Citi Held for Asset Issuance Series 16-MP1 Class B 144A		7.67			4-15-2025		915,000		964,627
Credit-Based Asset Servicing and Securitization LLC Series 07-CB4 Class A1B ±		0.71			4-25-2037		8,000,000		2,357,228
JPMorgan Chase Real Estate Mortgage Investment Conduit Series 2015-4 Class 1A7 144A±		0.72			6-26-2047		3,285,191		996,305

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Lehman Mortgage Trust Series 2008-4 Class A1 ±		1.14	%		1-25-2037	$	929,120	$	445,995
Merrill Lynch Alternative Note Series 2007-OAR2 Class A2 ±		0.80			4-25-2037		2,382,377		1,329,865
Total Non-Agency Mortgage-Backed Securities (Cost $12,526,228)									12,529,912
				Expiration date		Shares
Participation Notes: 1.50%
Financials: 0.94%
Banks: 0.94%
HSBC Bank plc (Alinma AB) †					1-22-2018		511,465		2,054,476
Materials: 0.56%
Chemicals: 0.56%
Merrill Lynch International & Company CV (Saudi Basic Industries Corporation) †					3-2-2017		50,295		1,226,508
Total Participation Notes (Cost $2,910,731)									3,280,984
	Dividend yield
Preferred Stocks: 0.28%
Financials: 0.01%
Thrifts & Mortgage Finance: 0.01%
FHLMC †		0.00					450		3,420
FHLMC †		0.00					219		1,303
FHLMC †		0.00					443		2,798
FNMA †		0.00					400		3,200
FNMA †		0.00					484		3,340
									14,061
Health Care: 0.22%
Pharmaceuticals: 0.22%
Allergan plc ±		7.21					621		473,488
Industrials: 0.03%
Transportation Infrastructure: 0.03%
Uber Technologies Incorporated †(a)(i)		0.00					1,216		59,307
Utilities: 0.02%
Water Utilities: 0.02%
Companhia de Saneamento do Parana ±		3.09					16,800		55,489
Total Preferred Stocks (Cost $700,057)									602,345
	Strike price					Contracts
Purchased Put Options: 0.26%
Corning Incorporated	$	24			2-17-2017		30,300		23,331
Electronic Arts Incorporated		78			1-20-2017		9,600		14,112
iShares MSCI Emerging Markets ETF		35			2-17-2017		180,300		149,649

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

26 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Strike price			Expiration date		Contracts			Value
Purchased Put Options (continued)
S&P 500 Index	$	1,875			3-17-2017		2,100		$	11,760
S&P 500 Index		1,875			6-16-2017		2,100			44,940
S&P 500 Index		1,975			12-15-2017		1,700			116,450
S&P 500 Index		2,025			9-15-2017		1,700			101,150
SPDR S&P 500 ETF		223			2-17-2017		27,700			105,260
Total Purchased Put Options (Cost $894,663)										566,652
						Shares
Warrants: 0.00%
Industrials: 0.00%
Trading Companies & Distributors: 0.00%
Nexeo Solutions Incorporated †					6-9-2021		14,855			10,399
Total Warrants (Cost $11,201)										10,399
	Interest rate			Maturity date		Principal
Yankee Corporate Bonds and Notes: 0.51%
Energy: 0.26%
Oil, Gas & Consumable Fuels: 0.26%
Weatherford International Limited		7.00	%		3-15-2038	$	675,000			561,938
Health Care: 0.25%
Pharmaceuticals: 0.25%
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		360,000			270,450
Valeant Pharmaceuticals International Incorporated 144A		6.38			10-15-2020		315,000			270,604
										541,054
Total Yankee Corporate Bonds and Notes (Cost $1,085,415)										1,102,992
	Yield					Shares
Short-Term Investments: 19.99%
Investment Companies: 18.52%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.43					40,395,204			40,395,204
						Principal
U.S. Treasury Securities: 1.47%
U.S. Treasury Bill #(z)		0.51			3-16-2017	$	3,210,000			3,206,790
Total Short-Term Investments (Cost $43,601,801)										43,601,994
						Shares
Securities Sold Short: (22.68%)
Common Stocks: (13.95%)
Consumer Discretionary: (1.73%)
Auto Components: (0.11%)
Delphi Automotive plc							(3,687	)		(248,319	)

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 27

Security name	Shares			Value
Automobiles: (0.93%)
Ford Motor Company		(15,694	)	$	(190,368	)
General Motors Company		(7,847	)		(273,389	)
Tesla Motors Incorporated †		(1,108	)		(236,769	)
Toyota Motor Corporation ADR		(11,274	)		(1,321,313	)
					(2,021,839	)
Hotels, Restaurants & Leisure: (0.18%)
Darden Restaurants Incorporated		(5,287	)		(384,471	)
Domino’s Pizza Incorporated		(74	)		(11,784	)
					(396,255	)
Household Durables: (0.15%)
Electrolux AB Series B		(12,881	)		(319,954	)
Internet & Direct Marketing Retail: (0.15%)
The Priceline Group Incorporated †		(222	)		(325,465	)
Multiline Retail: (0.01%)
Dollar Tree Incorporated †		(149	)		(11,500	)
Specialty Retail: (0.01%)
Burlington Stores Incorporated †		(151	)		(12,797	)
Ross Stores Incorporated		(263	)		(17,253	)
					(30,050	)
Textiles, Apparel & Luxury Goods: (0.19%)
Compagnie Financière Richemont SA		(3,058	)		(202,555	)
The Swatch Group AG		(670	)		(208,376	)
					(410,931	)
Consumer Staples: (0.72%)
Food & Staples Retailing: (0.34%)
Costco Wholesale Corporation		(4,012	)		(642,361	)
Wal-Mart Stores Incorporated		(1,262	)		(87,229	)
					(729,590	)
Household Products: (0.28%)
The Procter & Gamble Company		(7,324	)		(615,802	)
Tobacco: (0.10%)
British American Tobacco plc		(1,907	)		(214,862	)
Energy: (3.47%)
Energy Equipment & Services: (1.64%)
National Oilwell Varco Incorporated		(42,470	)		(1,590,077	)
Schlumberger Limited		(23,711	)		(1,990,538	)
					(3,580,615	)

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

28 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares			Value
Oil, Gas & Consumable Fuels: (1.83%)
Apache Corporation		(17,417	)	$	(1,105,457	)
Chevron Corporation		(10,107	)		(1,189,594	)
EOG Resources Incorporated		(1,188	)		(120,107	)
Marathon Oil Corporation		(10,525	)		(182,188	)
Occidental Petroleum Corporation		(19,465	)		(1,386,492	)
					(3,983,838	)
Financials: (0.09%)
Banks: (0.09%)
DBS Group Holdings Limited		(16,662	)		(199,509	)
Health Care: (0.50%)
Health Care Equipment & Supplies: (0.39%)
Abbott Laboratories		(15,513	)		(595,854	)
Intuitive Surgical Incorporated †		(402	)		(254,936	)
					(850,790	)
Health Care Technology: (0.11%)
Cerner Corporation †		(5,160	)		(244,429	)
Industrials: (2.34%)
Aerospace & Defense: (0.68%)
The Boeing Company		(1,027	)		(159,883	)
United Technologies Corporation		(11,974	)		(1,312,590	)
					(1,472,473	)
Industrial Conglomerates: (0.70%)
3M Company		(1,557	)		(278,033	)
General Electric Company		(39,621	)		(1,252,023	)
					(1,530,056	)
Machinery: (0.15%)
Caterpillar Incorporated		(3,609	)		(334,699	)
Road & Rail: (0.68%)
Kansas City Southern		(2,952	)		(250,477	)
Union Pacific Corporation		(11,771	)		(1,220,417	)
					(1,470,894	)
Trading Companies & Distributors: (0.13%)
W.W. Grainger Incorporated		(1,237	)		(287,293	)
Information Technology: (4.48%)
Electronic Equipment, Instruments & Components: (0.88%)
Amphenol Corporation Class A		(6,801	)		(457,027	)
Corning Incorporated		(60,284	)		(1,463,093	)
					(1,920,120	)

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 29

Security name	Shares			Value
Internet Software & Services: (0.50%)
Alibaba Group Holding Limited ADR †		(9,254	)	$	(812,594	)
MercadoLibre Incorporated		(1,637	)		(255,601	)
Yahoo! Incorporated		(8,200	)		(31,502	)
					(1,099,697	)
IT Services: (1.40%)
Accenture plc Class A		(4,313	)		(505,182	)
Infosys Limited ADR		(95,739	)		(1,419,810	)
International Business Machines Corporation		(6,781	)		(1,125,578	)
					(3,050,570	)
Software: (1.51%)
Activision Blizzard Incorporated		(26,404	)		(953,448	)
Electronic Arts Incorporated †		(17,103	)		(1,347,032	)
Oracle Corporation		(12,785	)		(491,583	)
Workday Incorporated Class A †		(7,729	)		(510,810	)
					(3,302,873	)
Technology Hardware, Storage & Peripherals: (0.19%)
Apple Incorporated		(3,506	)		(406,065	)
Materials: (0.13%)
Metals & Mining: (0.13%)
Barrick Gold Corporation		(17,600	)		(281,248	)
Real Estate: (0.35%)
Equity REITs: (0.35%)
AvalonBay Communities Incorporated		(1,504	)		(266,434	)
Equinix Incorporated		(1,368	)		(488,937	)
					(755,371	)
Telecommunication Services: (0.03%)
Diversified Telecommunication Services: (0.03%)
AT&T Incorporated		(1,741	)		(74,045	)
Utilities: (0.11%)
Multi-Utilities: (0.11%)
Consolidated Edison Incorporated		(3,310	)		(243,882	)
Total Common Stocks - Securities Sold Short (Proceeds $(30,270,219))					(30,413,034	)
Exchange-Traded Funds: (8.73%)
Consumer Discretionary Select Sector SPDR Fund ETF		(6,660	)		(542,124	)
Consumer Staples Select Sector SPDR Fund ETF		(51,231	)		(2,649,157	)
Health Care Select Sector SPDR Fund ETF		(3,345	)		(230,604	)
Industrial Select Sector SPDR Fund ETF		(10,563	)		(657,230	)
iShares iBoxx $ High Yield Corporate Bond ETF		(9,017	)		(780,421	)
iShares MSCI Brazil Capped ETF		(23,142	)		(771,554	)

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

30 Wells Fargo Alternative Strategies Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares			Value
Exchange-Traded Funds (continued)
iShares MSCI China ETF		(22,166	)	$	(969,319	)
iShares MSCI Emerging Markets ETF		(43,945	)		(1,538,514	)
SPDR S&P 500 ETF		(43,516	)		(9,727,131	)
SPDR S&P Regional Banking ETF		(11,267	)		(626,107	)
Technology Select Sector SPDR Fund ETF		(11,238	)		(543,470	)
Total Exchange-Traded Funds - Securities Sold Short (Proceeds $(18,883,968))					(19,035,631	)
Total Securities Sold Short (Proceeds $(49,154,187))					(49,448,665	)

Total investments in securities (excluding securities sold short) (Cost $190,498,765) *	92.32	%		201,305,114
Total securities sold short (Proceeds $(49,154,187))	(22.68	)		(49,448,665	)
Other assets and liabilities, net	30.36			66,200,616
Total net assets	100.00	%	$	218,057,065

† 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.

¥ 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

@ 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 $192,585,907 and unrealized gains (losses) consists of:

Gross unrealized gains	$	14,759,963
Gross unrealized losses		(6,040,756	)
Net unrealized gains	$	8,719,207

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo Alternative Strategies Fund 31

Assets
Investments
In unaffiliated securities, at value (cost $150,103,561)	$	160,909,910
In affiliated securities, at value (cost $40,395,204)		40,395,204
Total investments, at value (cost $190,498,765)		201,305,114
Cash at prime broker for securities sold short		47,514,845
Cash at prime broker for derivatives		1,544,643
Foreign currency, at value (cost $14,745,976)		14,478,734
Receivable for investments sold		4,143,452
Principal paydown receivable		11,386
Receivable for Fund shares sold		734,296
Receivable for dividends and interest		254,621
Receivable for daily variation margin on open futures contracts		164,335
Unrealized gains on forward foreign currency contracts		131,896
Unrealized gains on total return swap transactions		151,829
Prepaid expenses and other assets		46,347
Total assets		270,481,498
Liabilities
Dividends payable on securities sold short		99,625
Payable for investments purchased		291,386
Payable for Fund shares redeemed		1,518,183
Due to custodian bank		40,490
Unrealized losses on total return swap transactions		615
Unrealized losses on forward foreign currency contracts		14,264
Payable for daily variation margin on open futures contracts		186,982
Written options, at value (premiums received $339,311)		149,639
Payable for securities sold short, at value (proceeds $49,154,187)		49,448,665
Management fee payable		279,609
Distribution fee payable		5,563
Administration fees payable		28,453
Accrued expenses and other liabilities		360,959
Total liabilities		52,424,433
Total net assets	$	218,057,065
NET ASSETS CONSIST OF
Paid-in capital	$	222,185,125
Accumulated net investment loss		(2,461,900	)
Accumulated net realized losses on investments		(12,115,869	)
Net unrealized gains on investments		10,449,709
Total net assets	$	218,057,065
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	14,558,036
Shares outstanding – Class A1		1,460,984
Net asset value per share – Class A		$9.96
Maximum offering price per share – Class A2		$10.57
Net assets – Class C	$	7,343,373
Shares outstanding – Class C1		752,066
Net asset value per share – Class C		$9.76
Net assets – Administrator Class	$	2,642,157
Shares outstanding – Administrator Class1		262,739
Net asset value per share – Administrator Class		$10.06
Net assets – Institutional Class	$	193,513,499
Shares outstanding – Institutional Class1		19,288,884
Net asset value per share – Institutional Class		$10.03

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/94.25 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.

32 Wells Fargo Alternative Strategies Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Interest	$	1,041,130
Dividends (net of foreign withholding taxes of $14,919)		994,109
Income from affiliated securities		88,266
Total investment income		2,123,505
Expenses
Management fee		2,151,272
Administration fees
Class A		17,903
Class C		11,092
Administrator Class		18,116
Institutional Class		123,744
Shareholder servicing fees
Class A		21,314
Class C		13,204
Administrator Class		34,838
Distribution fee
Class C		39,613
Custody and accounting fees		276,631
Professional fees		33,225
Registration fees		45,987
Shareholder report expenses		45,287
Trustees’ fees and expenses		15,285
Dividend expense on securities sold short		627,924
Prime broker fees		282,324
Other fees and expenses		55,193
Total expenses		3,812,952
Less: Fee waivers and/or expense reimbursements		(506,250	)
Net expenses		3,306,702
Net investment loss		(1,183,197	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		890,553
Securities sold short		(4,319,247	)
Futures transactions		594,812
Forward foreign currency contract transactions		701,698
Foreign currency and foreign currency translations		87,919
Written options		187,878
Credit default swap transactions		998
Total return swap transactions		(149,227	)
Net realized losses on investments		(2,004,616	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		3,479,042
Securities sold short		239,794
Futures transactions		(1,045,464	)
Forward foreign currency contract transactions		10,865
Foreign currency and foreign currency translations		(594,301	)
Written options		85,100
Credit default swap transactions		(385	)
Total return swap transactions		277,470
Net change in unrealized gains (losses) on investments		2,452,121
Net realized and unrealized gains (losses) on investments		447,505
Net decrease in net assets resulting from operations	$	(735,692	)

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

Statement of changes in net assets Wells Fargo Alternative Strategies Fund 33

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment loss				$	(1,183,197	)				$	(1,733,443	)
Net realized losses on investments					(2,004,616	)					(7,419,092	)
Net change in unrealized gains (losses) on investments					2,452,121						2,956,492
Net decrease in net assets resulting from operations					(735,692	)					(6,196,043	)
Distributions to shareholders from
Net realized gains
Class A					0						(223,836	)
Class C					0						(188,485	)
Administrator Class					0						(361,883	)
Institutional Class					0						(3,490,785	)
Total distributions to shareholders					0						(4,264,989	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		232,940			2,350,193			1,817,481			18,623,286
Class C		57,703			568,200			1,350,979			13,802,561
Administrator Class		907,306			9,143,597			6,586,679			67,641,035
Institutional Class		4,898,676			49,241,343			16,461,170			170,134,081
					61,303,333						270,200,963
Reinvestment of distributions
Class A		0			0			22,001			223,789
Class C		0			0			18,330			184,236
Administrator Class		0			0			35,306			360,174
Institutional Class		0			0			238,285			2,433,253
					0						3,201,452
Payment for shares redeemed
Class A		(532,004	)		(5,337,000	)		(470,113	)		(4,738,024	)
Class C		(592,697	)		(5,829,471	)		(310,737	)		(3,077,186	)
Administrator Class		(4,148,165	)		(41,525,785	)		(3,715,198	)		(38,113,736	)
Institutional Class		(4,044,849	)		(40,827,922	)		(10,183,562	)		(105,316,859	)
					(93,520,178	)					(151,245,805	)
Net increase (decrease) in net assets resulting from capital share transactions					(32,216,845	)					122,156,610
Total increase (decrease) in net assets					(32,952,537	)					111,695,578
Net assets
Beginning of period					251,009,602						139,314,024
End of period				$	218,057,065					$	251,009,602
Accumulated net investment loss				$	(2,461,900	)				$	(1,278,703	)

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

34 Wells Fargo Alternative Strategies Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30						Year ended July 31, 20142
CLASS A				2016			20151
Net asset value, beginning of period		$10.01			$10.58			$10.08			$10.00
Net investment loss		(0.06	)3		(0.10	)3		(0.06	)3		(0.04	)
Net realized and unrealized gains (losses) on investments		0.01			(0.28	)		0.71			0.12
Total from investment operations		(0.05	)		(0.38	)		0.65			0.08
Distributions to shareholders from
Net realized gains		0.00			(0.19	)		(0.15	)		0.00
Net asset value, end of period		$9.96			$10.01			$10.58			$10.08
Total return4		(0.50	)%		(3.65	)%		6.49	%		0.80	%
Ratios to average net assets (annualized)
Gross expenses5		3.33	%		3.36	%		3.40	%		3.77	%
Net expenses5		2.86	%		2.95	%		2.93	%		3.00	%
Net investment loss5		(1.14	)%		(0.96	)%		(0.64	)%		(1.70	)%
Supplemental data
Portfolio turnover rate		122	%		284	%		237	%		92	%
Net assets, end of period (000s omitted)		$14,558			$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 expense on securities sold short as follows:

Six months ended December 31, 2016 (unaudited)	0.74	%
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 35

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30						Year ended July 31, 20142
CLASS C				2016			20151
Net asset value, beginning of period		$9.84			$10.49			$10.06			$10.00
Net investment loss		(0.10	)3		(0.17	)3		(0.13	)3		(0.06	)
Net realized and unrealized gains (losses) on investments		0.02			(0.29	)		0.71			0.12
Total from investment operations		(0.08	)		(0.46	)		0.58			0.06
Distributions to shareholders from
Net realized gains		0.00			(0.19	)		(0.15	)		0.00
Net asset value, end of period		$9.76			$9.84			$10.49			$10.06
Total return4		(0.81	)%		(4.46	)%		5.80	%		0.60	%
Ratios to average net assets (annualized)
Gross expenses5		4.06	%		4.10	%		4.14	%		4.49	%
Net expenses5		3.60	%		3.70	%		3.70	%		3.75	%
Net investment loss5		(1.89	)%		(1.73	)%		(1.35	)%		(2.45	)%
Supplemental data
Portfolio turnover rate		122	%		284	%		237	%		92	%
Net assets, end of period (000s omitted)		$7,343			$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 expense on securities sold short as follows:

Six months ended December 31, 2016 (unaudited)	0.72	%
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.

36 Wells Fargo Alternative Strategies Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30						Year ended July 31, 20142
ADMINISTRATOR CLASS				2016			20151
Net asset value, beginning of period		$10.04			$10.60			$10.08			$10.00
Net investment loss		(0.05	)3		(0.09	)3		(0.05	)3		(0.04	)
Net realized and unrealized gains (losses) on investments		0.07			(0.28	)		0.72			0.12
Total from investment operations		0.02			(0.37	)		0.67			0.08
Distributions to shareholders from
Net realized gains		0.00			(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.06			$10.04			$10.60			$10.08
Total return4		0.20	%		(3.55	)%		6.58	%		0.90	%
Ratios to average net assets (annualized)
Gross expenses5		3.17	%		3.28	%		3.25	%		3.57	%
Net expenses5		2.63	%		2.79	%		2.78	%		2.84	%
Net investment loss5		(0.93	)%		(0.85	)%		(0.51	)%		(1.54	)%
Supplemental data
Portfolio turnover rate		122	%		284	%		237	%		92	%
Net assets, end of period (000s omitted)		$2,642			$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 expense on securities sold short as follows:

Six months ended December 31, 2016 (unaudited)	0.66	%
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 37

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30						Year ended July 31, 20142
INSTITUTIONAL CLASS				2016			20151
Net asset value, beginning of period		$10.06			$10.61			$10.09			$10.00
Net investment loss		(0.04	)		(0.06	)		(0.03	)		(0.04	)
Net realized and unrealized gains (losses) on investments		0.01			(0.30	)		0.70			0.13
Total from investment operations		(0.03	)		(0.36	)		0.67			0.09
Distributions to shareholders from
Net realized gains		0.00			(0.19	)		(0.15	)		0.00
Net asset value, end of period		$10.03			$10.06			$10.61			$10.09
Total return3		(0.40	)%		(3.45	)%		6.68	%		0.90	%
Ratios to average net assets (annualized)
Gross expenses4		3.02	%		3.00	%		2.95	%		3.29	%
Net expenses4		2.63	%		2.69	%		2.69	%		2.74	%
Net investment loss4		(0.90	)%		(0.72	)%		(0.36	)%		(1.44	)%
Supplemental data
Portfolio turnover rate		122	%		284	%		237	%		92	%
Net assets, end of period (000s omitted)		$193,513			$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 expense on securities sold short as follows:

Six months ended December 31, 2016 (unaudited)	0.75	%
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.

38 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo 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 and swaps 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 December 31, 2016, such fair value pricing was not used in pricing foreign securities.

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

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

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

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 39

or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the manager and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Participation notes

The Fund may invest in participation notes to gain exposure to securities in certain foreign markets. Participation notes are issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying foreign security. Participation notes involve transaction costs, which may be higher than those applicable to the underlying foreign security. The holder of the participation note is entitled to receive from the bank or broker-dealer, an amount equal to the dividend paid by the issuer of the underlying foreign security; however, the holder is not entitled to the same rights (i.e. dividends, voting rights) as an owner of the underlying foreign security. Investments in participation notes involve risks beyond those normally associated with a direct investment in an underlying security. The Fund has no rights against the issuer of the underlying foreign security and participation notes expose the Fund to counterparty risk in the event the counterparty does not perform. There is also no assurance there will be a secondary trading market for the participation note or that the trading price of the participation note will equal the underlying value of the foreign security that it seeks to replicate.

Forward foreign currency contracts

The Fund is subject to foreign currency 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 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.

40 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

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

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. Premiums paid are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. 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

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 41

be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates. The maximum potential amount of future payments (undiscounted) that the Fund as the seller of protection could be required to make under the credit default swap contract would be an amount equal to the notional amount of the swap contract. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

If the Fund is the seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the buyer of protection the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index. If the Fund is the buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will receive from the seller of protection the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index.

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.

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.

42 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

Distributions to shareholders

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

Federal and other taxes

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

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

As of June 30, 2016, the Fund had current year deferred post-October capital losses and a qualified late-year ordinary loss which were recognized on the first day of the current 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:

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

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

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

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

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 43

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	19,896,003	$	0	$	0	$	19,896,003
Consumer staples		12,266,777		0		0		12,266,777
Energy		12,799,471		0		0		12,799,471
Financials		13,604,743		50,827		0		13,655,570
Health care		11,319,194		0		0		11,319,194
Industrials		14,643,464		0		0		14,643,464
Information technology		24,071,172		0		0		24,071,172
Materials		10,604,626		0		0		10,604,626
Real estate		1,560,265		0		0		1,560,265
Telecommunication services		3,028,546		0		0		3,028,546
Utilities		659,763		0		0		659,763
Corporate bonds and notes		0		3,036,722		0		3,036,722
Exchange-traded funds		19,571		0		0		19,571
Foreign corporate bonds and notes		0		170,656		0		170,656
Investment companies		11,117,816		0		0		11,117,816
Municipal obligations		0		760,220		0		760,220
Non-agency mortgage-backed securities		0		12,529,912		0		12,529,912
Participation notes
Financials		0		2,054,476		0		2,054,476
Materials		0		1,226,508		0		1,226,508
Preferred stocks
Financials		0		14,061		0		14,061
Health care		473,488		0		0		473,488
Industrials		0		0		59,307		59,307
Utilities		55,489		0		0		55,489
Purchased put options		0		566,652		0		566,652
Warrants
Industrials		0		10,399		0		10,399
Yankee corporate bonds and notes		0		1,102,992		0		1,102,992
Short-term investments
Investment companies		40,395,204		0		0		40,395,204
U.S. Treasury securities		3,206,790		0		0		3,206,790
		179,722,382		21,523,425		59,307		201,305,114
Forward foreign currency contracts		0		131,896		0		131,896
Futures contracts		164,335		0		0		164,335
Total return swap contracts		0		151,829		0		151,829
Total assets	$	179,886,717	$	21,807,150	$	59,307	$	201,753,174

44 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Liabilities
Securities sold short
Common stocks
Consumer discretionary	$	3,764,313	$	0	$	0	$	3,764,313
Consumer staples		1,560,254		0		0		1,560,254
Energy		7,564,453		0		0		7,564,453
Financials		199,509		0		0		199,509
Health care		1,095,219		0		0		1,095,219
Industrials		5,095,415		0		0		5,095,415
Information technology		9,779,325		0		0		9,779,325
Materials		281,248		0		0		281,248
Real estate		755,371		0		0		755,371
Telecommunication services		74,045		0		0		74,045
Utilities		243,882		0		0		243,882
Exchange-traded funds		19,035,631		0		0		19,035,631
Forward foreign currency contracts		0		14,264		0		14,264
Futures contracts		186,982		0		0		186,982
Total return swap contracts		0		615		0		615
Written options		0		149,639		0		149,639
Total liabilities	$	49,635,647	$	164,518	$	0	$	49,800,165

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. Fair value pricing was used in pricing certain foreign securities at the previous period end but was not used at December 31, 2016. As a result, long positions valued at $14,671,913 and securities in short positions valued at $610,440 were transferred from Level 2 to Level 1. 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 six months ended December 31, 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 Corporation, Mellon Capital Management Corporation, Passport Capital, LLC, Pine River Capital Management L.P., River Canyon Fund Management LLC, Sirios Capital Management, L.P., and Wellington Management Company, LLP to serve as sub-advisers to the Fund. The fee for subadvisory services is borne by Funds Management. The subadvisers are each entitled to receive from Funds Management an annual subadvisory fee.

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 45

The Rock Creek Group, LP, an indirect majority owned subsidiary of Wells Fargo and an affiliate of Funds Management, is entitled to receive a fee at an annual rate starting at 0.60% and declining to 0.55% as the average daily net assets of the Fund increase. For the six months ended December 31, 2016, the subadvisory fees paid to the remaining unaffiliated subadvisors was equivalent to an annual rate of 0.97% 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 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, 2017 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $82.73 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $33,311 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $1,473 from the sale of Class A shares and $1,000 and $205 in contingent deferred sales charges from redemptions of Class A and Class C shares, respectively.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $262,762,022 and $265,715,906, 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 Alternative Strategies Fund Notes to financial statements (unaudited)

6. DERIVATIVE TRANSACTIONS

During the six months ended December 31, 2016, the Fund entered into futures contracts for speculative purposes.

At December 31, 2016, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Contracts	Counterparty	Type	Contract value at December 31, 2016		Unrealized gains (losses)
1-20-2017	1 Long	Morgan Stanley	Amsterdam Index	$	101,707	$	2,124
1-20-2017	4 Long	Morgan Stanley	CAC 40 Index		204,762		3,556
1-20-2017	3 Long	Morgan Stanley	IBEX 35 Index		294,113		3,044
1-26-2017	4 Short	Morgan Stanley	Hang Seng Index		566,432		(11,765	)
3-8-2017	66 Short	Morgan Stanley	Euro-Bund Futures		11,404,309		(161,905	)
3-9-2017	17 Long	Morgan Stanley	TOPIX Index		2,208,000		58,514
3-9-2017	10 Short	Morgan Stanley	TOPIX Index		1,298,824		(23,608	)
3-13-2017	129 Short	Morgan Stanley	British Pound Futures		9,963,638		58,037
3-13-2017	91 Short	Morgan Stanley	Euro FX Futures		12,027,925		(139,622	)
3-13-2017	20 Short	Morgan Stanley	Japanese Yen Futures		2,149,250		(28,311	)
3-14-2017	40 Short	Morgan Stanley	Canadian Dollar Futures		2,976,600		(2,878	)
3-15-2017	128 Long	Morgan Stanley	10-Year Australian Treasury Bonds		11,799,734		57,646
3-16-2017	3 Short	Morgan Stanley	S&P/TSX 60 Index		400,804		1,785
3-16-2017	26 Long	Morgan Stanley	SPI 200 Index		2,641,348		49,934
3-17-2017	7 Long	Morgan Stanley	DAX Index		2,112,011		39,454
3-17-2017	105 Short	Morgan Stanley	Euro STOXX 50 Index		3,622,012		(75,353	)
3-17-2017	38 Long	Morgan Stanley	FTSE 100 Index		3,301,599		106,777
3-17-2017	13 Short	Morgan Stanley	FTSE 100 Index		1,129,494		(28,858	)
3-17-2017	21 Short	Morgan Stanley	MSCI EAFE Index		1,759,380		2,721
3-17-2017	27 Short	Morgan Stanley	MSCI Emerging Markets Index		1,159,515		19,122
3-17-2017	21 Short	Morgan Stanley	Russell 2000 Index		1,424,745		17,285
3-17-2017	63 Short	Morgan Stanley	S&P 500 E-Mini Index		7,044,030		59,750
3-17-2017	12 Short	Morgan Stanley	S&P 500 E-Mini Index		1,341,720		9,346
3-22-2017	21 Long	Morgan Stanley	10-Year Canadian Treasury Bonds		2,151,067		(3,037	)
3-22-2017	145 Long	Morgan Stanley	10-Year U.S. Treasury Notes		18,020,781		(81,056	)
3-29-2017	62 Short	Morgan Stanley	Long Gilt Bonds		9,614,518		(185,893	)

The Fund had an average notional amount of $46,546,290 in long and $81,454,689 in short futures contracts during the six months ended December 31, 2016. As of December 31, 2016, the Fund had segregated $683,359 as cash collateral for open futures contracts.

During the six months ended December 31, 2016, the Fund entered into forward foreign currency contracts for speculative purposes.

At December 31, 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 December 31, 2016		In exchange for U.S. $		Unrealized gains (losses)
3-15-2017	Morgan Stanley		37,000	EUR	$	39,084	$	39,822	$	(738	)
3-15-2017	Morgan Stanley		49,000	EUR		51,760		53,112		(1,352	)
3-15-2017	Morgan Stanley		75,000	EUR		79,224		80,381		(1,157	)
3-15-2017	Morgan Stanley		96,000	EUR		101,406		102,670		(1,264	)
3-15-2017	Morgan Stanley		1,261,000	SEK		138,980		139,303		(323	)
3-15-2017	Morgan Stanley		1,475,000	SEK		162,566		161,874		692

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 47

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver			U.S. value at December 31, 2016		In exchange for U.S. $		Unrealized gains (losses)
1-17-2017	Morgan Stanley		175,000	EUR	$	184,358	$	186,811	$	2,453
3-15-2017	Citibank		211,305,000	JPY		1,814,172		1,847,387		33,215
3-15-2017	Citibank		3,017,000	EUR		3,186,908		3,225,342		38,434
3-15-2017	HSBC Bank		756,000	GBP		933,306		962,670		29,364
3-15-2017	Morgan Stanley		13,000	CHF		12,822		13,001		179
3-15-2017	Morgan Stanley		22,000	CHF		21,699		21,677		(22	)
3-15-2017	Morgan Stanley		252,000	CHF		248,557		254,503		5,946
3-15-2017	Morgan Stanley		829,000	CHF		817,676		808,930		(8,746	)
3-15-2017	Morgan Stanley		31,000	CHF		30,576		30,696		120
3-15-2017	Morgan Stanley		64,000	EUR		67,604		66,942		(662	)
3-15-2017	Morgan Stanley		123,000	EUR		129,927		130,522		595
3-15-2017	Morgan Stanley		898,000	EUR		948,574		969,472		20,898

The Fund had average contract amounts of $1,914,297 and $11,914,325 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended December 31, 2016.

During the six months ended December 31, 2016, the Fund entered into written options for speculative purposes.

During the six months ended December 31, 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, 2016		22		$	3,826			68		$	354,074
Options written		8			7,175			1,259			189,493
Options expired		(12	)		(1,380	)		(1,225	)		(56,657	)
Options closed		0			0			(26	)		(157,220	)
Options exercised		0			0			0			0
Options outstanding at December 31, 2016		18		$	9,621			76		$	329,690

Open put/call options written at December 31, 2016 were as follows:

Expiration date	Counterparty	Description	Number of contracts		Call/Put		Strike price		Value
1-20-2017	Morgan Stanley	Avis Budget Group Incorporated		5		Call	$	38	$	(485	)
1-20-2017	Morgan Stanley	Avis Budget Group Incorporated		5		Call		40		(237	)
3-17-2017	Morgan Stanley	S&P 500 Index		21		Put		1,725		(4,830	)
4-21-2017	Morgan Stanley	Vertex Pharmaceuticals Incorporated		8		Call		80		(4,487	)
6-16-2017	Morgan Stanley	S&P 500 Index		21		Put		1,725		(23,443	)
9-15-2017	Morgan Stanley	S&P 500 Index		17		Put		1,800		(51,391	)
12-15-2017	Morgan Stanley	S&P 500 Index		17		Put		1,750		(64,766	)

The Fund had an average of 19 written call options and 219 written put options during the six months ended December 31, 2016. As of December 31, 2016, the Fund had $445,740 on deposit at the prime broker for written options.

During the six months ended December 31, 2016, the Fund entered into purchased option contracts for speculative purposes and had an average of 943 purchased put options.

48 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

During the six months ended December 31, 2016, the Fund entered into total return swap contracts for speculative purposes. At December 31, 2016, the Fund had the following total return swap contracts outstanding:

Expiration	Notional amount	Counterparty	Swap description	Unrealized gains (losses)
2-10-2017	$141,689	Morgan Stanley	In an agreement dated 5-16-2016, the Fund makes monthly payments of 1 Month EUR LIBOR +60. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Ryanair Holdings plc.	$	(18	)
9-3-2018	266,029	Morgan Stanley	In an agreement dated 9-1-2016, the Fund makes monthly payments of 1 Day JPY MUTSCALM -40. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Taisei Corporation.		17,543
9-3-2018	241,714	Morgan Stanley	In an agreement dated 9-1-2016, the Fund makes monthly payments of 1 Day JPY MUTSCALM -40. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Komatsu Limited.		27,053
9-3-2018	231,429	Morgan Stanley	In an agreement dated 9-1-2016, the Fund makes monthly payments of 1 Day JPY MUTSCALM -40. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Hitachi Limited.		40,931
9-3-2018	248,675	Morgan Stanley	In an agreement dated 9-1-2016, the Fund makes monthly payments of 1 Day JPY MUTSCALM -40. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Mitsubishi Heavy Industries Limited.		33,079
9-3-2018	248,956	Morgan Stanley	In an agreement dated 11-15-2016, the Fund makes monthly payments of 1 Day JPY MUTSCALM -40. At expiration, the Fund will receive the positive return or pay the negative return of the referenced entity Mitsubishi Heavy Industries Limited.		23,744
10-22-2018	152,927	Morgan Stanley	In an agreement dated 10-17-2016, 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.		9,479
10-22-2018	37,056	Morgan Stanley	In an agreement dated 10-17-2016, 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.		(597	)

The Fund had an average notional balance on total return swaps of $586,921, during the six months ended December 31, 2016. As of December 31, 2016, the Fund had $415,544 on deposit at the prime broker for total return swaps.

As of December 31, 2016, the Fund did not have any open credit default swaps. The Fund had an average notional balance of $42,967 during the six months ended December 31, 2016.

Notes to financial statements (unaudited) Wells Fargo Alternative Strategies Fund 49

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

The fair value of derivative instruments as of December 31, 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	$	566,652	*	Payable for written options	$	149,639
	Receivable for daily variation margin on open futures contracts		61,609	**	Payable for daily variation margin on open futures contracts		49,369	**
Foreign currency risk	Unrealized gains on forward foreign currency		131,896		Unrealized losses on forward foreign currency contracts		14,264
	Receivable for daily variation margin on open futures contracts		875	**	Payable for daily variation margin on open futures contracts		137,613	**
Interest rate risk	Receivable for daily variation margin on open futures contracts		101,851	**	Payable for daily variation margin on open futures contracts		0	**
	Unrealized gains on total return swap transactions		151,829		Unrealized losses on total return swap transactions		615
		$	1,014,712			$	351,500

* Amount relates to purchased options

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

The effect of derivative instruments on the Statement of Operations for the six months ended December 31, 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		$	(1,049,122	)	$	0	$	0	$	0		$	(149,227	)	$	(1,198,349	)
Equity risk		(808,239	)		(1,016,435	)		0		187,878		0			0			(1,636,796	)
Foreign currency risk		0			2,660,369			701,698		0		0			0			3,362,067
Credit risk		0			0			0		0		998			0			998
	$	(808,239	)	$	594,812		$	701,698	$	187,878	$	998		$	(149,227	)	$	527,920
	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		$	(734,721	)	$	0	$	0	$	0		$	277,470		$	(457,251	)
Equity risk		(41,067	)		707,157			0		85,100		0			0			751,190
Foreign currency risk		0			(1,017,900	)		10,865		0		0			0			(1,007,035	)
Credit risk		0			0			0		0		(385	)		0			(385	)
	$	(41,067	)	$	(1,045,464	)	$	10,865	$	85,100	$	(385	)	$	277,470		$	(713,481	)

*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

50 Wells Fargo Alternative Strategies Fund Notes to financial statements (unaudited)

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	$164,335	$	(164,335	)	$	0	$	0
Forward foreign currency contracts	Citibank	71,649*		0			0		71,649
Forward foreign currency contracts	HSBC Bank	29,364*		0			0		29,364
Forward foreign currency contracts	Morgan Stanley	30,883*		(14,264	)		0		16,619
Total return swaps	Morgan Stanley	151,829*		(615	)		0		151,214

* Amount represents net unrealized gains.

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Futures - variation margin	Morgan Stanley	$186,982	$	(164,335	)	$	(22,647	)	$	0
Forward foreign currency contracts	Morgan Stanley	14,264*		(14,264	)		0			0
Written options	Morgan Stanley	149,639		0			(149,639	)		0
Total return swaps	Morgan Stanley	615*		(615	)		0			0

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

* Amount represents net unrealized losses.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

Other information (unaudited) Wells Fargo Alternative Strategies Fund 51

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.

52 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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 53

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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 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.

³  Andrew Owen became President on January 1, 2017.

54 Wells Fargo Alternative Strategies 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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300474 02-17 SA267/SAR267 12-16

Semi-Annual Report

December 31, 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	7
Portfolio of investments	8
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	19
Other information	26
List of abbreviations	29

The views expressed and any forward-looking statements are as of December 31, 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)

Andrew Owen

President

Wells Fargo Funds

Stocks drifted somewhat lower in the fall as the U.S. presidential campaign wore on toward the election.

Throughout the period, economic and business data, while sometimes uneven, appeared to be strengthening overall.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Global Long/Short Fund for the six-month period that ended December 31, 2016. During much of the period, positive economic data influenced global stock, bond, and commodity markets. Late in the period, stocks in the U.S. moved higher while they drifted lower in most international markets in reaction to the U.S. presidential election, production-cut agreements among Organization of the Petroleum Exporting Countries (OPEC) members intended to support higher oil prices, and an interest-rate increase in December announced by the U.S. Federal Reserve (the Fed). As interest rates increased and sentiment for stock investments—particularly in the U.S.—improved, bond values globally fell.

The surprise Brexit vote rattled markets briefly before stocks rebounded.

A round of investment market volatility and losses followed the U.K. Brexit vote to leave the European Union (E.U.) at the end of June 2016. The equity sell-off proved temporary. During July 2016, better-than-expected corporate earnings, economic data, consumer confidence, and industrial output sent stocks higher.

Stocks drifted somewhat lower in the fall as the U.S. presidential campaign wore on toward the election. At the same time, political circumstances in countries outside of the U.S. challenged investor sentiment. In the U.K., a new prime minister took office following the Brexit vote and began setting the ground rules for the country’s exit from the E.U. In Brazil, the Senate removed the president from office, and the possibility of presidential impeachment emerged in South Korea due to a corruption scandal. The French president lost a primary election and endorsed his rival. An attempted coup in Turkey, continued escalation of conflicts in Syria and Iraq, and North Korea’s testing of nuclear weapons capabilities also caused uncertainty.

Investors sensed improving economic and business data as the period advanced.

Throughout the period, economic and business data, while sometimes uneven, appeared to be strengthening overall. After generating concern early in 2016, China’s economic growth demonstrated strength. The prime minister’s reelection in Japan offered the potential for new economic stimulus. India appointed a new central-bank governor who many expected would continue the outgoing governor’s policies, which were considered effective. OPEC members agreed to production cuts intended to support increased prices for oil, which could benefit commodities markets that are economically important to many international developed and emerging markets. In the U.S., the S&P 500 Index¹ recorded a 7.8% return for the six-month period that ended December 31, 2016. Developed international markets, as measured by the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net),² ended the period 5.6% higher. Stocks in emerging markets delivered a 4.5% gain for the period, as measured by the MSCI Emerging Markets Index (Net).³

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 Morgan Stanley Capital International (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

Fixed-income markets were volatile before the U.S. election and declined postelection.

Global fixed-income markets were volatile during the period, particularly following the U.S. election. Investors appeared to be anticipating U.S. interest-rate increases and waiting for clarity from central-bank policymakers outside of the U.S. When the Fed increased interest rates in December 2016, investors tended to favor equities and high-yield bonds, over investment-grade bonds.

Currency values in several European and Asian countries fell relative to the U.S. dollar during the period, restraining investor interest in foreign bond markets. While the Bloomberg Barclays U.S. Aggregate Bond Index⁴ lost 2.5% during the period, a 9.3% loss for the Bloomberg Barclays Global Aggregate ex U.S. Dollar Bond Index⁵ reflected relatively more difficult conditions for bonds outside of the U.S.

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,

Andrew Owen

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 Bloomberg Barclays U.S. Aggregate Bond Index (formerly known as Barclays U.S. Aggregate Bond Index) is a broad-based benchmark that measures the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index.

⁵  The Bloomberg Barclays Global Aggregate ex U.S. Dollar Bond Index (formerly known as Barclays Global Aggregate ex U.S. Dollar Bond Index) tracks an international basket of government, corporate, agency, and mortgage-related bonds. You cannot invest directly in an index.

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

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Dale A. Winner, CFA^®

Average annual total returns (%) as of December 31, 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		(3.43	)		(2.94	)		2.50		(0.15	)		4.80		2.51
Class C (WGLCX)	11-28-2014		0.68			(0.94	)		1.68		(0.94	)		5.55		3.26
Administrator Class (WGLDX)	11-28-2014		–			–			2.60		(0.03	)		4.72		2.41
Institutional Class (WGLSX)	11-28-2014		–			–			2.80		0.14			4.47		2.21
Global Long/Short Composite Index3	–		–			–			4.15		1.02			–		–
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index4	–		–			–			0.26		0.14			–		–
MSCI ACWI Index (Net)5	–		–			–			7.86		1.56			–		–

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

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

For Class A shares, the maximum front-end sales charge is 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 6.

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

Top ten long positions (%) as of December 31, 20166
Compagnie de Saint-Gobain SA	2.80
Metro AG	2.76
Lundin Mining Corporation	2.60
Novartis AG	2.49
Coach Incorporated	2.31
Koninklijke Philips NV	2.23
Mitsubishi UFJ Financial Group Incorporated	2.17
Hitachi Limited	2.14
SAP SE	2.12
American International Group Incorporated	2.07

Top ten short positions (%) as of December 31, 20166
iShares MSCI EAFE ETF	(1.83)
Nestle SA	(1.38)
Wisdomtree Japan Hedged Equity ETF	(1.32)
iShares MSCI Switzerland Capped ETF	(1.04)
iShares MSCI Thailand Capped ETF	(0.99)
Unilever NV	(0.98)
Schindler Holding AG	(0.94)
Peugeot SA	(0.87)
iShares MSCI Philippines ETF	(0.56)
iShares Europe ETF	(0.55)

Sector allocation as of December 31, 20167
	Gross exposure(%)		Net exposure(%)
Consumer Discretionary		8		7
Consumer Staples		9		6
Energy		3		4
Financials		24		30
Health Care		9		11
Industrials		20		24
Information Technology		11		14
Materials		5		6
Real Estate		2		2
Telecommunication Services		9		11
Other		0		(15)
		100		100

Country allocation as of December 31, 20167
	Gross exposure(%)		Net exposure(%)
Canada		4		6
China		8		10
France		5		4
Germany		16		21
Hong Kong		1		2
Italy		4		5
Japan		18		20
Netherlands		7		6
Russia		3		4
South Korea		1		2
Switzerland		6		3
Thailand		0		(1)
United Kingdom		13		16
United States		14		2
		100		100

Please see footnotes on page 6.

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

¹  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.05% in acquired fund fees and expenses and 0.71% in dividend expense on securities sold short and prime broker fees. 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, 2017, 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) and 50% in the Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index. You cannot invest directly in an index.

⁴  The Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index (formerly known as 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 and emerging markets. The MSCI ACWI Index (Net) consists of 46 country indexes comprising 23 developed and 23 emerging markets country indexes. The developed markets country indexes included are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The emerging markets country indexes included are Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

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

⁷  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.

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

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,075.33	$	11.16		2.14	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.38	$	10.84		2.14	%
Class C
Actual	$	1,000.00	$	1,070.64	$	15.04		2.89	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,010.61	$	14.61		2.89	%
Administrator Class
Actual	$	1,000.00	$	1,076.25	$	10.65		2.04	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.88	$	10.33		2.04	%
Institutional Class
Actual	$	1,000.00	$	1,076.09	$	9.60		1.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.89	$	9.32		1.84	%

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

8 Wells Fargo Global Long/Short Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Common Stocks: 59.99%
Brazil: 0.10%
Cosan Limited Class A (Energy, Oil, Gas & Consumable Fuels) (b)		1,386	$	10,409
Canada: 2.60%
Lundin Mining Corporation (Materials, Metals & Mining) †		56,477		269,209
China: 4.70%
China Everbright Limited (Financials, Capital Markets)		40,000		76,136
China Mobile Limited (Telecommunication Services, Wireless Telecommunication Services)		18,500		196,105
Industrial & Commercial Bank of China Limited H Shares (Financials, Banks)		163,000		97,743
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health Care, Health Care Providers & Services)		26,700		61,219
YY Incorporated (Information Technology, Internet Software & Services) †(b)		1,377		54,281
				485,484
France: 2.80%
Compagnie de Saint-Gobain SA (Industrials, Building Products)		6,224		289,945
Germany: 10.05%
Metro AG (Consumer Staples, Food & Staples Retailing)		8,575		285,101
Muenchener Rueckversicherungs Gesellschaft AG (Financials, Insurance)		830		156,960
Rheinmetall AG (Industrials, Industrial Conglomerates)		3,163		212,757
SAP SE (Information Technology, Software)		2,512		218,971
Siemens AG (Industrials, Industrial Conglomerates)		1,343		165,121
				1,038,910
Hong Kong: 0.83%
Xinyi Automobile Glass Hong Kong Enterprises Limited (Consumer Discretionary, Auto Components) †		12,750		2,466
Xinyi Glass Holdings Limited (Consumer Discretionary, Auto Components)		102,000		83,394
				85,860
Italy: 2.38%
Eni SpA (Energy, Oil, Gas & Consumable Fuels)		10,356		168,642
Prysmian SpA (Industrials, Electrical Equipment)		3,004		77,157
				245,799
Japan: 10.90%
Coca-Cola East Japan Company Limited (Consumer Staples, Beverages)		9,000		198,366
Daiwa Securities Group Incorporated (Financials, Capital Markets) (b)		33,000		203,379
Hitachi Limited (Information Technology, Electronic Equipment, Instruments & Components) (b)		41,000		221,707
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks) (b)		36,400		224,302
Mitsui Fudosan Company Limited (Real Estate, Real Estate Management & Development) (b)		5,000		115,722
Nomura Holdings Incorporated (Financials, Capital Markets) (b)		27,700		163,320
				1,126,796
Netherlands: 4.00%
Koninklijke Philips NV (Industrials, Industrial Conglomerates)		7,550		230,478
NN Group NV (Financials, Insurance)		5,401		183,040
				413,518

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Global Long/Short Fund 9

Security name						Shares		Value
Russia: 1.69%
Mobile Telesystems ADR (Telecommunication Services, Wireless Telecommunication Services)							19,200	$	174,912
South Korea: 0.91%
Hana Financial Group Incorporated (Financials, Banks)							3,620		93,662
Switzerland: 3.50%
Novartis AG (Health Care, Pharmaceuticals)							3,533		257,091
Zurich Insurance Group AG (Financials, Insurance)							382		105,188
									362,279
United Kingdom: 6.69%
Capita plc (Industrials, Professional Services)							5,471		35,802
Smiths Group plc (Industrials, Industrial Conglomerates)							12,262		213,981
United Business Media plc (Consumer Discretionary, Media)							17,914		161,495
Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services)							84,290		207,602
Wolseley plc (Industrials, Trading Companies & Distributors) (b)							1,197		73,199
									692,079
United States: 8.84%
Agilent Technologies Incorporated (Health Care, Life Sciences Tools & Services) (b)							1,574		71,711
American International Group Incorporated (Financials, Insurance) (b)							3,278		214,086
Apple Incorporated (Information Technology, Technology Hardware, Storage & Peripherals) (b)							1,793		207,665
Coach Incorporated (Consumer Discretionary, Textiles, Apparel & Luxury Goods) (b)							6,808		238,416
Mead Johnson Nutrition Company (Consumer Staples, Food Products) (b)							314		22,219
Merck & Company Incorporated (Health Care, Pharmaceuticals) (b)							1,087		63,992
Pfizer Incorporated (Health Care, Pharmaceuticals) (b)							2,951		95,852
									913,941
Total Common Stocks (Cost $6,151,523)									6,202,803
				Expiration date
Participation Notes: 0.97%
China: 0.97%
HSBC Bank plc (Kweichow Moutai Company Limited Class A) (Consumer Staples, Beverages) †					12/4/2024		2,090		100,572
Total Participation Notes (Cost $53,236)									100,572
	Strike price					Contracts
Purchased Put Options: 0.05%
iShares MSCI EMU ETF	$	35			1-20-2017		80		5,200
Total Purchased Put Options (Cost $5,520)									5,200
	Yield					Shares
Short-Term Investments: 37.49%
Investment Companies: 37.49%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.43	%				3,875,744		3,875,744
Total Short-Term Investments (Cost $3,875,744)									3,875,744

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

10 Wells Fargo Global Long/Short Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares			Value
Securities Sold Short: (13.93%)
Common Stocks: (6.73%)
France: (0.87%)
Peugeot SA (Consumer Discretionary, Automobiles) ��		(5,489	)	$	(89,530	)
Japan: (1.62%)
Isetan Mitsukoshi Holdings Limited (Consumer Discretionary, Multiline Retail)		(1,200	)		(12,937	)
Lawson Incorporated (Consumer Staples, Food & Staples Retailing)		(750	)		(52,684	)
Marubeni Corporation (Industrials, Trading Companies & Distributors)		(5,500	)		(31,191	)
McDonalds Holdings Company (Consumer Discretionary, Hotels, Restaurants & Leisure)		(1,000	)		(26,182	)
Odakyu Electric Railway Company (Industrials, Road & Rail)		(1,000	)		(19,790	)
Takashimaya Company Limited (Consumer Discretionary, Multiline Retail)		(3,000	)		(24,744	)
					(167,528	)
Netherlands: (0.98%)
Unilever NV (Consumer Staples, Personal Products)		(2,453	)		(101,001	)
Philippines: (0.15%)
PLDT Incorporated (Telecommunication Services, Wireless Telecommunication Services)		(580	)		(15,979	)
Switzerland: (2.32%)
Nestle SA (Consumer Staples, Food Products)		(1,986	)		(142,470	)
Schindler Holding AG (Industrials, Machinery)		(553	)		(97,534	)
					(240,004	)
Thailand: (0.30%)
Charoen Pokphand Foods PCL (Consumer Staples, Food Products)		(37,300	)		(30,727	)
United States: (0.49%)
Eaton Vance Corporation (Financials, Capital Markets)		(1,018	)		(42,634	)
Franklin Resources Incorporated (Financials, Capital Markets)		(208	)		(8,234	)
					(50,868	)
Exchange-Traded Funds: (7.20%)
United States: (7.20%)
iShares Europe ETF		(1,470	)		(57,051	)
iShares MSCI EAFE ETF		(3,282	)		(189,470	)
iShares MSCI EMU ETF		(1,426	)		(49,340	)
iShares MSCI Philippines ETF		(1,782	)		(57,772	)
iShares MSCI Singapore Capped ETF		(2,251	)		(44,862	)
iShares MSCI Switzerland Capped ETF		(3,633	)		(107,028	)
iShares MSCI Thailand Capped ETF		(1,414	)		(101,935	)
WisdomTree Japan Hedged Equity ETF		(2,762	)		(136,829	)
					(744,287	)
Total Securities Sold Short (Proceeds $(1,540,134))					(1,439,924	)

Total investments in securities (excluding securities sold short) (Cost $10,086,023) *	98.50	%		10,184,319
Total securities sold short (Proceeds ($1,540,134))	(13.93	)		(1,439,924	)
Other assets and liabilities, net	15.43			1,595,038
Total net assets	100.00	%	$	10,339,433

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Global Long/Short Fund 11

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

† 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 $10,086,566 and unrealized gains (losses) consists of:

Gross unrealized gains	$	512,687
Gross unrealized losses		(414,934	)
Net unrealized gains	$	97,753

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

12 Wells Fargo Global Long/Short Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $6,210,279)	$	6,308,575
In affiliated securities, at value (cost $3,875,744)		3,875,744
Total investments, at value (cost $10,086,023)		10,184,319
Cash		9,808
Segregated cash for securities sold short		1,536,294
Receivable for dividends		14,028
Unrealized gains on forward foreign currency contracts		13,321
Receivable from manager		7,118
Prepaid expenses and other assets		51,692
Total assets		11,816,580
Liabilities
Dividends payable on securities sold short		297
Payable for securities sold short, at value (proceeds $1,540,134)		1,439,924
Distribution fee payable		98
Administration fees payable		1,251
Accrued expenses and other liabilities		35,577
Total liabilities		1,477,147
Total net assets	$	10,339,433
NET ASSETS CONSIST OF
Paid-in capital	$	10,449,106
Accumulated net investment loss		(65,958	)
Accumulated net realized losses on investments		(255,035	)
Net unrealized gains on investments		211,320
Total net assets	$	10,339,433
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	357,302
Shares outstanding – Class A1		36,269
Net asset value per share – Class A		$9.85
Maximum offering price per share – Class A2		$10.45
Net assets – Class C	$	144,605
Shares outstanding – Class C1		14,905
Net asset value per share – Class C		$9.70
Net assets – Administrator Class	$	104,918
Shares outstanding – Administrator Class1		10,621
Net asset value per share – Administrator Class		$9.88
Net assets – Institutional Class	$	9,732,608
Shares outstanding – Institutional Class1		982,683
Net asset value per share – Institutional Class		$9.90

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.

Statement of operations—six months ended December 31, 2016 (unaudited) Wells Fargo Global Long/Short Fund 13

Investment income
Dividends (net of foreign withholding taxes of $3,109)	$	56,647
Income from affiliated securities		6,339
Total investment income		62,986
Expenses
Management fee		66,836
Administration fees
Class A		390
Class C		151
Administrator Class		65
Institutional Class		6,284
Shareholder servicing fees
Class A		464
Class C		180
Administrator Class		124
Distribution fee
Class C		540
Custody and accounting fees		9,547
Professional fees		28,996
Registration fees		30,227
Shareholder report expenses		20,082
Trustees’ fees and expenses		12,884
Dividends on securities sold short		12,578
Prime broker fees		7,477
Other fees and expenses		7,803
Total expenses		204,628
Less: Fee waivers and/or expense reimbursements		(108,613	)
Net expenses		96,015
Net investment loss		(33,029	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(25,846	)
Securities sold short		(2,199	)
Forward foreign currency contract transactions		106,207
Net realized gains on investments		78,162
Net change in unrealized gains (losses) on:
Unaffiliated securities		736,151
Securities sold short		(24,592	)
Forward foreign currency contract transactions		(19,269	)
Net change in unrealized gains (losses) on investments		692,290
Net realized and unrealized gains (losses) on investments		770,452
Net increase in net assets resulting from operations	$	737,423

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

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

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment loss				$	(33,029	)				$	(28,128	)
Net realized gains (losses) on investments					78,162						(363,926	)
Net change in unrealized gains (losses) on investments					692,290						(694,344	)
Net increase (decrease) in net assets resulting from operations					737,423						(1,086,398	)
Distributions to shareholders from
Net investment income
Class A					0						(499	)
Administrator Class					0						(76	)
Institutional Class					0						(23,095	)
Net realized gains
Class A					0						(3,385	)
Class C					0						(1,461	)
Administrator Class					0						(1,017	)
Institutional Class					0						(98,879	)
Total distributions to shareholders					0						(128,412	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		352			3,420			14,706			143,822
Class C		0			0			3,035			28,407
Administrator Class		507			5,000			0			0
					8,420						172,229
Reinvestment of distributions
Class A		0			0			406			3,884
Class C		0			0			154			1,461
Administrator Class		0			0			114			1,093
Institutional Class		0			0			12,710			121,974
					0						128,412
Payment for shares redeemed
Class A		(2,824	)		(27,345	)		(4,908	)		(46,365	)
Class C		0			0			(2,874	)		(26,632	)
Institutional Class		(498	)		(4,856	)		(1,596	)		(14,698	)
					(32,201	)					(87,695	)
Net increase (decrease) in net assets resulting from capital share transactions					(23,781	)					212,946
Total increase (decrease) in net assets					713,642						(1,001,864	)
Net assets
Beginning of period					9,625,791						10,627,655
End of period				$	10,339,433					$	9,625,791
Accumulated net investment loss				$	(65,958	)				$	(32,929	)

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

Financial highlights Wells Fargo Global Long/Short Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			20151
Net asset value, beginning of period		$9.16			$10.35			$10.00
Net investment loss		(0.05	)		(0.04	)		(0.04	)2
Net realized and unrealized gains (losses) on investments		0.74			(1.04	)		0.39
Total from investment operations		0.69			(1.08	)		0.35
Distributions to shareholders from
Net investment income		0.00			(0.01	)		0.00
Net realized gains		0.00			(0.10	)		0.00
Total distributions to shareholders		0.00			(0.11	)		0.00
Net asset value, end of period		$9.85			$9.16			$10.35
Total return3		7.53	%		(10.43	)%		3.50	%
Ratios to average net assets (annualized)
Gross expenses		4.28	%4		4.77	%4		5.40	%4
Net expenses		2.14	%4		2.47	%4		2.96	%4
Net investment loss		(0.90	)%4		(0.41	)%4		(0.59	)%4
Supplemental data
Portfolio turnover rate		31	%		37	%		62	%
Net assets, end of period (000s omitted)		$357			$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:

Six months ended December 31, 2016 (unaudited)	0.39	%
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.

16 Wells Fargo Global Long/Short Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			20151
Net asset value, beginning of period		$9.06			$10.31			$10.00
Net investment loss		(0.08	)		(0.12	)		(0.07	)
Net realized and unrealized gains (losses) on investments		0.72			(1.03	)		0.38
Total from investment operations		0.64			(1.15	)		0.31
Distributions to shareholders from
Net realized gains		0.00			(0.10	)		0.00
Net asset value, end of period		$9.70			$9.06			$10.31
Total return2		7.06	%		(11.18	)%		3.10	%
Ratios to average net assets (annualized)
Gross expenses		5.03	%3		5.50	%3		6.12	%3
Net expenses		2.89	%3		3.20	%3		3.54	%3
Net investment loss		(1.66	)%3		(1.24	)%3		(1.64	)%3
Supplemental data
Portfolio turnover rate		31	%		37	%		62	%
Net assets, end of period (000s omitted)		$145			$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:

Six months ended December 31, 2016 (unaudited)	0.39	%
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.

Financial highlights Wells Fargo Global Long/Short Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			20151
Net asset value, beginning of period		$9.18			$10.36			$10.00
Net investment loss		(0.04	)		(0.04	)		(0.05	)
Net realized and unrealized gains (losses) on investments		0.74			(1.03	)		0.41
Total from investment operations		0.70			(1.07	)		0.36
Distributions to shareholders from
Net investment income		0.00			(0.01	)		0.00
Net realized gains		0.00			(0.10	)		0.00
Total distributions to shareholders		0.00			(0.11	)		0.00
Net asset value, end of period		$9.88			$9.18			$10.36
Total return2		7.63	%		(10.38	)%		3.60	%
Ratios to average net assets (annualized)
Gross expenses		4.21	%3		4.68	%3		5.22	%3
Net expenses		2.04	%3		2.35	%3		2.70	%3
Net investment loss		(0.81	)%3		(0.40	)%3		(0.83	)%3
Supplemental data
Portfolio turnover rate		31	%		37	%		62	%
Net assets, end of period (000s omitted)		$105			$93			$104

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

²  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:

Six months ended December 31, 2016 (unaudited)	0.39	%
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.

18 Wells Fargo Global Long/Short Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			20151
Net asset value, beginning of period		$9.20			$10.37			$10.00
Net investment loss		(0.03	)		(0.02	)		(0.04	)
Net realized and unrealized gains (losses) on investments		0.73			(1.03	)		0.41
Total from investment operations		0.70			(1.05	)		0.37
Distributions to shareholders from
Net investment income		0.00			(0.02	)		0.00
Net realized gains		0.00			(0.10	)		0.00
Total distributions to shareholders		0.00			(0.12	)		0.00
Net asset value, end of period		$9.90			$9.20			$10.37
Total return2		7.61	%		(10.12	)%		3.70	%
Ratios to average net assets (annualized)
Gross expenses		3.95	%3		4.42	%3		4.95	%3
Net expenses		1.84	%3		2.15	%3		2.49	%3
Net investment loss		(0.61	)%3		(0.20	)%3		(0.63	)%3
Supplemental data
Portfolio turnover rate		31	%		37	%		62	%
Net assets, end of period (000s omitted)		$9,733			$9,043			$10,078

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

²  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:

Six months ended December 31, 2016 (unaudited)	0.39	%
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.

Notes to financial statements (unaudited) Wells Fargo Global Long/Short Fund 19

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the 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 December 31, 2016 such fair value pricing was not used in pricing foreign securities.

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

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

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

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

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. Premiums paid are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. 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.

Participation notes

The Fund may invest in participation notes to gain exposure to securities in certain foreign markets. Participation notes are issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying foreign security. Participation notes involve transaction costs, which may be higher than those applicable to the underlying foreign security. The holder of the participation note is entitled to receive from the bank or broker-dealer, an amount equal to the dividend paid by the issuer of the underlying foreign security; however, the holder is not entitled to the same rights (i.e. dividends, voting rights) as an owner of the underlying foreign security. Investments in participation notes involve risks

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

beyond those normally associated with a direct investment in an underlying security. The Fund has no rights against the issuer of the underlying foreign security and participation notes expose the Fund to counterparty risk in the event the counterparty does not perform. There is also no assurance there will be a secondary trading market for the participation note or that the trading price of the participation note will equal the underlying value of the foreign security that it seeks to replicate.

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

As of June 30, 2016, the Fund had capital loss carryforwards which consisted 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 was recognized on the first day of the current fiscal year.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Brazil	$	10,409	$	0	$	0	$	10,409
Canada		269,209		0		0		269,209
China		485,484		0		0		485,484
France		289,945		0		0		289,945
Germany		1,038,910		0		0		1,038,910
Hong Kong		85,860		0		0		85,860
Italy		245,799		0		0		245,799
Japan		1,126,796		0		0		1,126,796
Netherlands		413,518		0		0		413,518
Russia		174,912		0		0		174,912
South Korea		93,662		0		0		93,662
Switzerland		362,279		0		0		362,279
United Kingdom		692,079		0		0		692,079
United States		913,941		0		0		913,941
Participation notes
China		0		100,572		0		100,572
Purchased put options		0		5,200		0		5,200
Short-term investments
Investment companies		3,875,744		0		0		3,875,744
		10,078,547		105,772		0		10,184,319
Forward foreign currency contracts		0		13,321		0		13,321
Total assets	$	10,078,547	$	119,093	$	0	$	10,197,640
Liabilities
Securities sold short
Common stocks
France	$	89,530	$	0	$	0	$	89,530
Japan		167,528		0		0		167,528
Netherlands		101,001		0		0		101,001
Philippines		15,979		0		0		15,979
Switzerland		240,004		0		0		240,004
Thailand		30,727		0		0		30,727
United States		50,868		0		0		50,868
Exchange-traded funds
United States		744,287		0		0		744,287
Total liabilities	$	1,439,924	$	0	$	0	$	1,439,924

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

Forward foreign currency contracts are reported at their unrealized gains 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. Fair value pricing was used in pricing certain foreign securities at the previous period end but was not used at December 31, 2016. As a result, long positions valued at $4,363,534 and securities in short positions valued at $497,062 were transferred from Level 2 to Level 1. 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 subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 1.30% and declining to 1.13% as the average daily net assets of the Fund increase. For the six months ended December 31, 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, 2017 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $3 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $1,034 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

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.

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

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $1,503,220 and $1,446,045, 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 six months ended December 31, 2016, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At December 31, 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 December 31, 2016		In exchange for U.S. $		Unrealized gains
2-28-2017	Morgan Stanley		269,000	EUR	$	283,916	$	286,314	$	2,398
2-28-2017	Morgan Stanley		305,000	EUR		321,913		324,441		2,528
3-15-2017	Morgan Stanley		618,800	EUR		653,649		661,346		7,698
3-22-2017	Morgan Stanley		184,400	GBP		227,694		228,391		697

The Fund had average contract amounts of $25,271 and $1,112,796 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended December 31, 2016.

During the six months ended December 31, 2016, the Fund entered into purchased options contracts for hedging purposes and had an average of 28 purchased options.

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

The fair value of derivative instruments as of December 31, 2016 was as follows for the Fund:

	Asset derivatives
	Statement of Assets and Liabilities location	Fair value
Equity risk	Investments in unaffiliated securities, at value	$	5,200	*
Foreign currency risk	Unrealized gains on forward foreign currency contracts		13,321
		$	18,521

* Amount relates to purchased options.

The effect of derivative instruments on the Statement of Operations for the six months ended December 31, 2016 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives					Change in unrealized gains (losses) on derivatives
	Unaffiliated securities*			Forward currency contracts		Unaffiliated securities*			Forward currency contracts
Equity risk	$	(16,753	)	$	0	$	(320	)	$	0
Foreign currency risk		0			106,207		0			(19,269	)
	$	(16,753	)	$	106,207	$	(320	)	$	(19,269	)

* Amount relates to purchased options

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

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	$13,321*	$	0	$	0	$	13,321

* Amount represents net unrealized gains.

7. BANK BORROWINGS

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

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

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

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available at each fiscal quarter end on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. As of each month end other than a month end that coincides with a fiscal quarter end, the Fund makes publicly available on the Fund’s website, on a one-month delayed basis (i) all portfolio holdings held long other than any put options on equity securities; (ii) portfolio holdings held short other than short positions in equity securities of single issuers; and (iii) the aggregate dollar value of equity securities of single issuers held short, and any put options on equity securities held long. In addition, top ten holdings information (excluding derivative positions and short positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Global Long/Short Fund 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo Global Long/Short Fund 29

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300475 02-17 SA268/SAR268 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo

California Limited-Term Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	22
Statement of operations	23
Statement of changes in net assets	24
Financial highlights	25
Notes to financial statements	29
Other information	33
List of abbreviations	36

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo California Limited-Term Tax-Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(2.43	)		1.44		2.50		(0.46	)		1.86		2.70		0.83		0.80
Class C (SFCCX)	8-30-2002		(2.29	)		1.08		1.93		(1.29	)		1.08		1.93		1.58		1.55
Administrator Class (SCTIX)	9-6-1996		–			–		–		(0.29	)		2.05		2.92		0.77		0.60
Institutional Class (SFCNX)	10-31-2014		–			–		–		(0.19	)		2.09		2.94		0.50		0.50
Bloomberg Barclays Municipal Bond 1-5 Year Blend Index4	–		–			–		–		0.00			1.25		2.86		–		–
Bloomberg Barclays California Municipal Bond 1-5 Year Blend Index5	–		–			–		–		(0.17	)		1.32		2.90		–		–

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

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

For Class A shares, the maximum front-end sales charge is 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

Effective maturity distribution as of December 31, 2016⁶

Credit quality as of December 31, 2016⁷

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, 2017, 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 Bloomberg Barclays Municipal Bond 1–5 Year Blend Index (formerly known as Barclays Municipal Bond 1–5 Year Blend Index) is the 1–5 Year Blend component of the Bloomberg Barclays Municipal Bond Index (formerly known as Barclays Municipal Bond Index). The Bloomberg 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 Bloomberg Barclays California Municipal Bond 1-5 Year Blend Index (formerly known as Barclays California Municipal Bond 1-5 Year Blend Index) is the 1-5 Year Blend Component of the Bloomberg Barclays California Municipal Bond Index (formerly known as Barclays California Municipal Bond Index). You cannot invest directly in an index.

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 California Limited-Term Tax-Free Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	975.23	$	3.97		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.11	$	4.06		0.80	%
Class C
Actual	$	1,000.00	$	970.63	$	7.68		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.86		1.55	%
Administrator Class
Actual	$	1,000.00	$	975.70	$	2.98		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	977.10	$	2.48		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.62	$	2.54		0.50	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 97.23%
California: 94.22%
Adelanto CA School District CAB Series B (GO Revenue, National Insured) ¤		0.00	%		9-1-2018	$	1,225,000	$	1,150,863
Alameda County CA Corridor Transportation Authority CAB Subordinate Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		3,000,000		2,858,487
Alameda County CA Corridor Transportation Authority Refunding Subordinate Lien Series A (Airport Revenue)		5.00			10-1-2025		750,000		869,378
Alameda County CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		4.00			12-1-2019		1,000,000		1,068,170
Alameda County CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		5.00			12-1-2021		1,000,000		1,142,050
Albany CA Limited Obligation Improvement Bond Act of 1915 (Miscellaneous Revenue, Ambac Insured)		4.75			9-2-2019		1,305,000		1,312,882
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured)		6.50			8-1-2017		155,000		159,833
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured)		6.50			8-1-2018		475,000		512,644
Alvord CA Unified School District Election of 2007 Series B (GO Revenue, AGM Insured)		6.50			8-1-2020		1,605,000		1,860,933
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2018		3,245,000		3,150,019
Anaheim CA PFA Refunding Bond Series A (Miscellaneous Revenue)		5.00			5-1-2017		1,250,000		1,266,563
Anaheim CA Redevelopment Agency Merged Project Area Series A (Tax Revenue, AGM Insured)		4.50			2-1-2018		875,000		905,056
Association of Bay Area Governments Finance Authority For Nonprofit Corporations Jackson Laboratory (Miscellaneous Revenue)		5.00			7-1-2019		730,000		789,159
Association of Bay Area Governments Finance Authority For Nonprofit Corporations O’Connor Woods (Health Revenue)		4.00			1-1-2019		955,000		1,003,867
Association of Bay Area Governments Finance Authority For Nonprofit Corporations Sharp Healthcare Series A (Health Revenue)		5.00			8-1-2019		500,000		543,440
Banning CA Unified School District Refunding (GO Revenue, AGM Insured)		5.00			8-1-2027		510,000		602,376
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2019		420,000		456,023
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2021		550,000		621,858
Bassett CA Unified School District Refunding Bond Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2023		725,000		843,994
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series B (Transportation Revenue) ±		1.50			4-1-2047		14,000,000		14,005,040
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.37			4-1-2045		5,000,000		5,000,800
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.88			4-1-2047		10,500,000		10,555,125
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series E (Transportation Revenue) ±		2.00			4-1-2034		5,000,000		5,005,400
Brentwood CA Infrastructure Financing Authority Sub Series A (Miscellaneous Revenue, AGM Insured)		4.00			9-2-2017		1,950,000		1,986,407
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		3.00			9-2-2017		995,000		1,004,552
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		3.00			9-2-2018		1,030,000		1,049,529
Brentwood CA Infrastructure Financing Authority Sub Series B (Miscellaneous Revenue)		4.00			9-2-2021		1,135,000		1,206,471

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

8 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California (GO Revenue) ±		4.00	%		12-1-2027	$	9,015,000	$	9,129,491
California (GO Revenue)		5.00			10-1-2021		6,795,000		7,767,636
California (GO Revenue)		5.00			9-1-2022		2,240,000		2,599,274
California (GO Revenue)		5.00			11-1-2022		2,500,000		2,909,350
California (GO Revenue)		5.00			9-1-2023		10,730,000		12,620,304
California (GO Revenue)		5.00			10-1-2023		8,400,000		9,892,680
California (GO Revenue)		5.25			10-1-2022		2,750,000		3,232,900
California Communities Transportation Total Road Improvement Certificate of Participation Series B (Tax Revenue)		3.00			6-1-2017		380,000		382,945
California Communities Transportation Total Road Improvement Certificate of Participation Series B (Tax Revenue)		4.00			6-1-2018		390,000		404,216
California Community College Financing Authority Shasta-Tehama-Trinity Joint District Series A (Miscellaneous Revenue)		2.25			5-1-2017		435,000		436,640
California Department of Veterans Affairs Home Purchase Series A (Housing Revenue)		3.50			12-1-2021		855,000		909,840
California Department of Water Resources Central Valley Project Water System Series AM (Water & Sewer Revenue)		5.00			12-1-2017		6,595,000		6,838,751
California Economic Recovery Refunding Series A (Tax Revenue)		5.00			7-1-2018		2,950,000		3,118,740
California Economic Recovery Refunding Series A (Tax Revenue)		5.00			7-1-2018		850,000		898,620
California Health Facilities Financing Refunding Lucile Packard Stanford Hospital Series A (Health Revenue)		5.00			8-15-2027		450,000		536,054
California HFA AMT Home Mortgage Series G (Housing Revenue)		5.50			8-1-2042		60,000		60,220
California HFA Home Mortgage Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		3.75			8-1-2020		630,000		664,707
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.00			3-1-2019		700,000		752,724
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.25			3-1-2023		4,000,000		4,465,400
California HFFA Chinese Hospital Associates (Health Revenue)		5.00			6-1-2019		200,000		215,230
California HFFA Fellowship Homes Incorporated (Health Revenue)		5.00			9-1-2019		1,135,000		1,196,540
California HFFA Memorial Health Services Series A (Health Revenue)		5.00			10-1-2023		2,475,000		2,841,696
California HFFA St. Joseph Health System Series B (Health Revenue) ±		5.00			7-1-2043		2,000,000		2,059,780
California Infrastructure & Economic Development Bank Goodwill Industries of Sacramento Valley & Northern Nevada Project Series A (Industrial Development Revenue) 144A		4.13			1-1-2027		1,380,000		1,339,442
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		6.00			8-1-2023		805,000		852,439
California Municipal Finance Authority Community Medical Centers Series A (Health Revenue)		5.00			2-1-2023		735,000		832,829
California Municipal Finance Authority Community Medical Centers Series A (Health Revenue)		5.00			2-1-2024		500,000		572,370
California Municipal Finance Authority Mobile Senior Caritas Affordable Housing Incorporated Projects Series A (Housing Revenue)		5.00			8-15-2019		515,000		555,819
California Municipal Finance Authority Palmdale Aerospace Academy Project (Education Revenue) 144A		4.00			7-1-2026		2,000,000		1,938,420
California Municipal Finance Authority Peppertree Senior Apartments Series A (Housing Revenue, FHLMC Insured, FHLMC LIQ)		2.80			6-1-2023		2,500,000		2,587,825
California Municipal Finance Authority Village Grove Apartments Series A (Housing Revenue, FHLMC Insured, FHLMC LIQ)		3.10			12-1-2021		1,000,000		1,039,040
California Municipal Financing Authority BAN Open Door Community Health Centers (Health Revenue)		2.80			9-15-2018		3,000,000		3,025,410
California PCFA Republic Services Incorporated Project Series C (Resource Recovery Revenue) ±		5.25			6-1-2023		3,245,000		3,339,202

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California PFOTER Series DCL-010 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.90	%		8-1-2027	$	6,000,000	$	6,000,000
California Public Works Board Capital Project Series G (Miscellaneous Revenue)		5.00			11-1-2020		3,000,000		3,356,940
California Public Works Board Department of Corrections & Rehabilitation Series A (Miscellaneous Revenue)		6.50			9-1-2017		430,000		445,850
California Public Works Board Department of Corrections & Rehabilitation Series C (Miscellaneous Revenue)		4.00			6-1-2018		1,625,000		1,687,433
California Public Works Board Department of Corrections & Rehabilitation Series C (Miscellaneous Revenue)		5.00			10-1-2022		1,500,000		1,736,055
California Public Works Board Judicial Council Projects Series B (Miscellaneous Revenue)		5.00			10-1-2022		500,000		578,685
California Public Works Board Judicial Council Projects Series D (Miscellaneous Revenue)		5.00			12-1-2019		1,000,000		1,095,880
California Public Works Board Various Capital Projects Series I (Miscellaneous Revenue)		5.00			11-1-2020		1,250,000		1,398,725
California Refunding Various Purpose Bidding Group C (GO Revenue)		5.00			9-1-2027		8,500,000		10,233,915
California School Finance Authority Coastal Academy Project Series A (Education Revenue)		5.00			10-1-2022		350,000		370,944
California School Finance Authority Refunding Aspire Public School (Education Revenue) 144A		5.00			8-1-2022		1,545,000		1,693,629
California School Finance Authority Refunding Aspire Public School (Education Revenue) 144A		5.00			8-1-2023		800,000		880,392
California School Finance Authority Refunding Aspire Public School (Education Revenue) 144A		5.00			8-1-2024		350,000		386,421
California School Finance Authority Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2021		400,000		418,352
California School Finance Authority Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2026		500,000		515,925
California School Infrastructure Financing Agency Refunding (Tax Revenue, AGM Insured)		5.00			9-1-2021		1,300,000		1,464,528
California State Index Floating Rate Series E (GO Revenue) ±		1.27			12-1-2029		5,000,000		5,004,500
California Statewide CDA Adventist Health Systems West Series A (Health Revenue)		5.00			3-1-2024		800,000		930,704
California Statewide CDA American Baptist Homes West Series B-3 (Health Revenue)		2.10			10-1-2019		2,930,000		2,930,176
California Statewide CDA California Baptist University Series A (Education Revenue)		5.13			11-1-2023		715,000		751,522
California Statewide CDA California Baptist University Series B (Education Revenue)		3.50			11-1-2018		520,000		523,297
California Statewide CDA Episcopal Communities and Services (Health Revenue)		4.00			5-15-2017		450,000		454,721
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.99			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		558,995
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2022		395,000		447,535
California Statewide CDA Henry Mayo Newhall Memorial Hospital Series A (Health Revenue, AGM Insured)		5.00			10-1-2023		500,000		570,785
California Statewide CDA Kaiser Permanente Series E (Health Revenue) ±		5.00			4-1-2044		4,000,000		4,052,480
California Statewide CDA Redwoods Project (Health Revenue)		3.00			11-15-2018		400,000		412,760
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2019		250,000		273,050
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2020		210,000		234,394
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2021		200,000		227,136
California Statewide CDA Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			11-15-2022		200,000		230,538
California Statewide CDA School Facilities (Education Revenue)		5.88			7-1-2022		1,735,000		1,884,210

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

10 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

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	$	5,204,628
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		2,000,660
California Statewide CDA St. Joseph Hospital (Health Revenue, AGM Insured)		4.50			7-1-2018		400,000		411,968
California Statewide CDA University of California Irvine East Campus Apartments Phase I (Housing Revenue)		5.00			5-15-2017		1,000,000		1,012,150
California Statewide Community Refunding Lancer Educational Student Housing (Housing Revenue) 144A		4.00			6-1-2017		500,000		501,990
California Statewide HFFA Casa Colina Obligated Group (Health Revenue)		4.00			4-1-2017		400,000		401,984
California Statewide HFFA Casa Colina Obligated Group (Health Revenue)		5.00			4-1-2018		400,000		413,376
California Statewide Index Floating Rate Series B (GO Revenue) ±		1.19			12-1-2031		2,500,000		2,466,250
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2024		350,000		357,627
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2025		350,000		357,606
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2026		375,000		383,149
Campbell CA Union High School Capital Projects and Refinancing (Miscellaneous Revenue)		5.00			8-1-2027		300,000		306,429
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2017		415,000		418,872
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2018		300,000		305,538
Carlsbad CA Improvement Bond Act of 1915 (Miscellaneous Revenue)		3.00			9-2-2019		540,000		551,524
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2020		775,000		859,072
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2021		855,000		964,500
Carson CA RDA Project Area #1 Series A (Tax Revenue, AGM Insured)		5.00			10-1-2022		600,000		687,414
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2020		2,295,000		2,527,461
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2021		2,425,000		2,713,599
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2022		2,550,000		2,894,633
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2023		1,735,000		1,993,463
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series A (Tax Revenue, AGM Insured)		5.00			8-1-2024		1,770,000		2,081,467
Cathedral City CA Redevelopment Agency Refunding Merged Redevelopment Project Series B (Tax Revenue)		4.00			8-1-2017		435,000		442,047
Central California Unified School District Refunding (GO Revenue, AGM Insured)		4.00			7-1-2020		500,000		537,355
Central California Unified School District Refunding (GO Revenue, AGM Insured)		5.00			7-1-2021		400,000		451,612
Central California Unified School District Refunding (GO Revenue, AGM Insured)		5.00			7-1-2022		750,000		860,385
Centralia CA School District (GO Revenue, AGM Insured)		4.00			8-1-2018		375,000		390,788
Chino CA PFA Local Agency Series A (Tax Revenue, AGM Insured)		5.00			9-1-2022		1,830,000		2,093,959
Chino CA PFA Local Agency Series A (Tax Revenue, AGM Insured)		5.00			9-1-2024		660,000		770,293
Chula Vista CA Certificate of Participation Refunding Bond Police Facility Project (Miscellaneous Revenue)		5.00			10-1-2021		720,000		810,130
Chula Vista CA Elementary School District (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2024		1,370,000		1,612,504
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2020		2,455,000		2,639,493
Coachella Valley CA Unified School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2021		2,230,000		2,423,096

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 11

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	%		8-1-2022	$	1,000,000	$	1,095,450
Colton CA PFA Series A (Utilities Revenue)		4.00			4-1-2019		415,000		436,709
Commerce CA Community Development Commission Refunding Series A (Tax Revenue, AGM Insured)		5.00			8-1-2026		1,710,000		2,042,988
Commerce CA Community Development Commission Refunding Series A (Tax Revenue, AGM Insured)		5.00			8-1-2027		1,760,000		2,078,789
Commerce CA RDA CAB Project #1 (Tax Revenue) ¤		0.00			8-1-2021		1,690,000		1,354,062
Compton CA Community College District (GO Revenue)		5.00			7-1-2017		1,225,000		1,248,508
Compton CA PFA Refunding Bond (Miscellaneous Revenue) 144A		4.00			9-1-2027		2,000,000		1,921,640
Compton CA Public Finance Authority Lease (Miscellaneous Revenue) 144A		4.00			9-1-2022		2,000,000		1,990,980
Compton CA Unified School District CAB Election of 2002 Series D (GO Revenue, Ambac Insured) ¤		0.00			6-1-2017		3,075,000		3,056,858
Corcoran CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured) ±		2.70			12-1-2039		4,500,000		4,515,885
Cotati Rohnert Park CA Unified School District Series B (GO Revenue, AGM Insured)		5.00			8-1-2020		2,275,000		2,524,568
Culver City CA Redevelopment Agency CAB Tax Allocation Series A (Tax Revenue) ¤		0.00			11-1-2019		2,575,000		2,367,532
Cypress CA Elementary School District (Miscellaneous Revenue)		2.00			5-1-2017		335,000		335,985
Cypress CA Elementary School District (Miscellaneous Revenue)		2.25			5-1-2018		455,000		460,264
Delano CA Certificate of Participation Delano Regional Medical Center (Health Revenue)		4.00			1-1-2017		1,305,000		1,305,091
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		1,758,870
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			9-1-2019		210,000		222,375
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2021		250,000		282,948
Dinuba CA RDA Successor Agency Merged City Project #2 (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2022		250,000		287,303
Dixon CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2021		1,210,000		1,367,530
Dixon CA Unified School District (GO Revenue, AGM Insured)		5.00			8-1-2022		1,285,000		1,474,897
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2017		475,000		479,878
El Centro CA Financing Authority Series A (Water & Sewer Revenue, AGM Insured)		2.50			10-1-2018		485,000		494,157
El Dorado CA Community Facilities District #19-1 (Tax Revenue)		4.00			9-1-2018		1,000,000		1,041,830
El Dorado CA Community Facilities District #92-1 (Tax Revenue)		4.00			9-1-2017		1,135,000		1,156,111
El Monte CA Union High School Refunding (GO Revenue)		5.00			6-1-2021		1,315,000		1,481,242
Encinitas CA Community Facilities District Ranch Public Improvements Project (Tax Revenue)		4.00			9-1-2017		1,180,000		1,200,025
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2020		1,000,000		1,110,440
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2021		3,170,000		3,584,161
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2022		2,395,000		2,751,089
Fairfield CA RDA Successor Agency Refunding (Tax Revenue)		5.00			8-1-2023		1,025,000		1,193,233
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2019		1,000,000		1,084,900
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2020		1,000,000		1,106,710
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2021		1,250,000		1,408,200
Florin CA Resource Conservation District Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2022		1,250,000		1,430,300
Folsom CA Redevelopment Agency Successor Tax Allocation Refinancing Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2027		765,000		830,354

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

12 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Foothill-Eastern CA Transportation Corridor Agency Series B1 (Transportation Revenue) ±		5.00	%		1-15-2053	$	8,750,000	$	8,903,825
Fowler CA Unified School District School Facilities Improvement District #1 (GO Revenue, National Insured)		5.20			7-1-2020		1,195,000		1,253,077
Fremont CA Community Facilities District (Tax Revenue)		5.00			9-1-2024		1,000,000		1,123,180
Fresno County CA Financing Authority Lease Series A (Miscellaneous Revenue, AGM Insured)		3.00			8-1-2019		970,000		1,004,251
Fullerton CA Community Facilities District (Tax Revenue)		3.50			9-1-2017		565,000		572,311
Fullerton CA Community Facilities District (Tax Revenue)		4.00			9-1-2018		610,000		632,125
Fullerton CA Community Facilities District (Tax Revenue)		4.00			9-1-2019		665,000		698,669
Fullerton CA School District Financing Authority Series A (Tax Revenue, AGM Insured)		4.00			9-1-2018		400,000		416,732
Fullerton CA School District Financing Authority Series A (Tax Revenue, AGM Insured)		3.00			9-1-2017		450,000		455,378
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		838,006
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		3,469,180
Goleta CA Water District Certificate of Participation Series A (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2019		125,000		136,773
Goleta CA Water District Certificate of Participation Series A (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2020		140,000		156,512
Hawthorne CA School District CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2017		165,000		163,629
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2017		705,000		710,464
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2018		725,000		741,276
Hayward CA Unified School District Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2019		750,000		773,670
Hayward CA Unified School District Certificate of Participation (GO Revenue, AGM Insured)		5.00			8-1-2022		500,000		573,890
Hayward CA Unified School District Certificate of Participation (GO Revenue, AGM Insured)		5.00			8-1-2023		805,000		936,585
Huntington Beach CA City School District Election of 2002 (GO Revenue)		4.00			8-1-2019		2,875,000		3,063,399
Huntington Beach CA City School District Election of 2002 (GO Revenue)		4.00			8-1-2021		505,000		552,672
Huntington Beach CA City School District Election of 2002 (GO Revenue)		5.00			8-1-2020		3,150,000		3,514,928
Imperial Beach CA RDA Palm Avenue Commercial Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2020		775,000		827,956
Irvine CA Limited Obligation Improvement Bonds Reassessment District #12-1 (Miscellaneous Revenue)		4.00			9-2-2018		1,325,000		1,377,881
Irvine CA Limited Obligation Improvement Bonds Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2023		800,000		898,952
Irvine CA Limited Obligation Improvement Bonds Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2024		850,000		956,344
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2020		320,000		356,531
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2021		340,000		386,825
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2022		365,000		422,604
Irwindale CA CDA City Industrial Development Project (Tax Revenue, AGM Insured)		5.00			7-15-2023		375,000		441,788
Jurupa CA PFA Series A (Tax Revenue)		5.00			9-1-2020		550,000		607,184
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2019		950,000		1,035,785
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2020		1,045,000		1,164,903
La Habra CA School District Refunding Bond (GO Revenue)		5.00			8-1-2021		805,000		915,100

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00	%		9-1-2019	$	1,150,000	$	1,247,635
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2020		1,045,000		1,156,512
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2021		565,000		638,467
La Quinta CA Redevelopment Agency Project Areas #1 & 2 Series A (Tax Revenue)		5.00			9-1-2022		615,000		703,708
Lee Lake CA Public Financing Authority Senior Lien Series A (Tax Revenue)		4.00			9-1-2017		1,620,000		1,645,855
Los Angeles CA Convention & Exhibit Center Authority Series A (Miscellaneous Revenue)		5.00			8-15-2020		2,000,000		2,122,680
Los Angeles CA Public Works Series D (Miscellaneous Revenue)		5.00			12-1-2027		1,605,000		1,940,268
Los Angeles CA Unified School District Certificate of Participation Headquarters Building Projects Series B (Miscellaneous Revenue)		5.00			10-1-2025		1,875,000		2,128,950
Los Angeles CA Unified School District Refunding Bond Series D (GO Revenue)		5.00			7-1-2023		6,180,000		7,286,838
Los Angeles County CA Certificate of Participation CAB Disney Package Project (Miscellaneous Revenue) ¤		0.00			3-1-2017		675,000		673,873
Los Angeles County CA Community Facilities District #5 Rowland Heights Area (Tax Revenue, AGM Insured)		5.00			9-1-2019		475,000		478,069
Los Angeles County CA Public Works Multiple Capital Projects II (Miscellaneous Revenue)		5.00			8-1-2020		500,000		555,955
Los Angeles County CA Redevelopment Refunding Authority Hollywood Redevelopment Project (Tax Revenue)		5.00			7-1-2019		1,780,000		1,927,437
Los Angeles County CA Redevelopment Refunding Authority Series D (Tax Revenue)		5.00			9-1-2018		2,570,000		2,716,798
Los Angeles County CA Redevelopment Refunding Authority Series D (Tax Revenue)		5.00			9-1-2019		2,545,000		2,752,061
Los Angeles County CA Regional MonteCedro Incorporated Project Series B1 (Health Revenue)		3.00			11-15-2021		1,045,000		1,046,306
Los Angeles County CA Schools Regionalized Business Services Corporation Series A (Miscellaneous Revenue, AGM Insured)		3.00			9-1-2017		595,000		602,110
Los Angeles County CA Schools Regionalized Business Services Corporation Series B (Miscellaneous Revenue, National Insured)		5.00			6-1-2017		1,010,000		1,025,928
Lynwood CA Unified School District BAN Series A (GO Revenue)		5.00			8-1-2017		3,000,000		3,068,790
Mendocino County CA Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		3.25			6-1-2018		1,115,000		1,143,934
Mendocino County CA Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		3.00			6-1-2017		1,085,000		1,093,409
Menifee CA Union School District Public Series A (Tax Revenue)		4.00			9-1-2022		540,000		574,609
Merced CA Union High School CAB Series A (GO Revenue, National Insured) ¤		0.00			8-1-2019		2,190,000		2,087,158
Modesto CA Community Facilities District #2004-1 Village One #2 (Tax Revenue)		4.00			9-1-2018		595,000		616,182
Modesto CA Community Facilities District #2004-1 Village One #2 (Tax Revenue)		4.50			9-1-2019		605,000		642,800
Modesto CA Irrigation District Electric Refunding Bond Series A (Utilities Revenue)		5.00			7-1-2020		500,000		554,440
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2017		755,000		768,213
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2018		785,000		817,421
Monrovia CA RDA Subordinated Central Project #1 (Tax Revenue)		4.00			8-1-2019		815,000		864,169
Montclair CA PFA Public Facilities Projects (Miscellaneous Revenue, AGM Insured)		4.00			10-1-2017		500,000		510,375
Murrieta CA PFA (Tax Revenue)		5.00			9-1-2017		870,000		889,653
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2017		955,000		967,291
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2018		1,025,000		1,052,521
Natomas CA Unified School District (GO Revenue, AGM Insured)		3.00			9-1-2019		1,000,000		1,035,880
Newhall CA School District BAN School Facilities Improvement (GO Revenue) ¤		0.00			8-1-2017		9,000,000		8,946,900
Newhall CA School District CAB BAN (Miscellaneous Revenue) ¤		0.00			8-1-2018		14,680,000		14,383,170
North City CA West School Facilities Financing Authority Series C (Tax Revenue, Ambac Insured)		5.00			9-1-2018		1,125,000		1,190,543
Norwalk CA Community Facilities Financing Series A (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2019		280,000		295,448

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

14 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Norwalk CA Community Facilities Financing Series A (Miscellaneous Revenue, AGM Insured)		4.00	%		6-1-2020	$	350,000	$	373,916
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2018		610,000		632,235
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2019		625,000		659,481
Norwalk CA Community Facilities Financing Series B (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2020		650,000		694,415
Oak Valley CA Hospital District Refunding (GO Revenue)		4.00			7-1-2020		500,000		534,540
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2021		950,000		1,066,470
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2022		750,000		855,158
Oak Valley CA Hospital District Refunding (GO Revenue)		5.00			7-1-2023		755,000		872,554
Oakland CA Joint Powers Financing Authority Series A1 (Miscellaneous Revenue, AGC Insured)		5.25			1-1-2017		1,885,000		1,885,226
Oakland CA Successor Agency Refunding Sub Lien Central District Redevelopment Project (Tax Revenue)		4.00			9-1-2018		3,215,000		3,345,851
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2017		2,250,000		2,302,605
Oakland CA Unified School District Alameda County Election of 2012 Series A (GO Revenue)		5.00			8-1-2022		750,000		861,578
Oakland CA Unified School District Alameda County Election of 2012 Series A (GO Revenue)		5.00			8-1-2024		600,000		707,670
Orange County CA Community Facilities #2015-1 Esencia Village Series A (Tax Revenue)		5.00			8-15-2023		375,000		423,424
Orange County CA Community Facilities #2015-1 Esencia Village Series A (Tax Revenue)		5.00			8-15-2025		335,000		377,347
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2018		200,000		211,766
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2019		1,085,000		1,178,115
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			3-1-2020		1,110,000		1,213,785
Orange County CA Development Agency Santa Ana Heights Project (Tax Revenue)		5.00			9-1-2020		1,140,000		1,258,526
Orange Cove CA Irrigation District (Water & Sewer Revenue)		3.15			2-1-2019		660,000		661,102
Oxnard CA Financing Authority Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			6-1-2021		735,000		828,308
Oxnard CA Harbor District Series A (Airport Revenue)		5.00			8-1-2018		2,275,000		2,387,249
Palm Springs CA Financing Authority Convention Center Project Series A (Miscellaneous Revenue)		3.00			11-1-2017		1,280,000		1,298,662
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		3.00			9-2-2018		415,000		422,462
Palo Alto CA Improvement Bond Act of 1915 University Area Off-Street Parking Assessment District (Miscellaneous Revenue)		4.00			9-2-2021		450,000		476,771
Palo Verde CA Unified School District FlexFund Program (Education Revenue)		4.80			9-1-2027		712,031		739,857
Palomar CA Community College District Election of 2006 Series B (GO Revenue) ¤		0.00			8-1-2017		880,000		874,298
Palomar Health Refunding Bond (Health Revenue)		5.00			11-1-2027		2,005,000		2,212,076
Palomar Pomerado Health California Health System CAB (GO Revenue, National Insured) ¤		0.00			8-1-2017		2,000,000		1,985,200
Palos Verdes Peninsula CA Refunding Series B (GO Revenue)		5.00			11-1-2023		740,000		881,421
Perris CA Community Facilities District Refunding #01-2 Series A (Tax Revenue)		2.00			9-1-2017		670,000		671,059
Pioneers Memorial Healthcare District California Refunding (GO Revenue)		4.00			10-1-2017		810,000		824,653
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2021		1,885,000		2,130,408
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			9-1-2021		2,000,000		2,253,120
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			8-1-2022		1,305,000		1,497,853

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00	%		8-1-2023	$	780,000	$	907,499
Pittsburg CA Successor Agency Los Medanos Community Development (Tax Revenue, AGM Insured)		5.00			9-1-2025		3,500,000		4,116,385
Placentia CA Redevelopment Agency Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2019		580,000		613,524
Placentia CA Redevelopment Agency Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		600,000		662,964
Placentia Yorba Linda CA Refunding Project Series A (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2026		400,000		464,672
Pomona CA Public Financing Authority Unrefunded Balance Merfed Redevelopment - Series AH (Tax Revenue, Ambac Insured)		5.25			2-1-2018		725,000		727,407
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		1,661,830
Poway CA Unified School District PFA (Tax Revenue)		3.00			9-15-2017		625,000		631,119
Poway CA Unified School District PFA (Tax Revenue)		3.00			9-15-2018		755,000		769,730
Poway CA Unified School District PFA (Tax Revenue)		4.00			9-15-2020		335,000		354,494
Poway CA Unified School District PFA (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2020		300,000		321,747
Poway CA Unified School District PFA (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		185,000		200,377
Poway CA Unified School District PFA Series B (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2024		1,115,000		1,301,328
Poway CA Unified School District PFA Series B (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2025		775,000		911,485
Poway CA Unified School District Special Community Facilities District #6-4S Ranch (Tax Revenue)		4.00			9-1-2017		495,000		502,900
Poway CA Unified School District Special Community Facilities District #6-4S Ranch (Tax Revenue)		4.00			9-1-2018		445,000		460,842
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2018		345,000		336,606
Redondo Beach CA Unified School District CAB Election of 2008 Series E (GO Revenue) ¤		0.00			8-1-2020		460,000		426,264
Riverside CA Community College District Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2020		535,000		497,176
Riverside CA PFA Local Measure Certificate of Participation Riverside Pavement Rehabilitation Project (Tax Revenue, AGM Insured)		5.00			6-1-2023		845,000		974,124
Riverside CA Unified School District Financing Authority Superior Lien Series A (Miscellaneous Revenue)		4.00			9-1-2018		1,735,000		1,797,928
Riverside County CA Asset Leasing Corporation County Administrative Center Refunding Project (Miscellaneous Revenue)		4.00			11-1-2017		490,000		501,206
Riverside County CA Asset Leasing Corporation Riverside Hospital Project (Miscellaneous Revenue, National Insured) ¤		0.00			6-1-2019		1,000,000		951,960
Riverside County CA PFA Indian Wells Project Series A (Tax Revenue, AGM Insured)		5.00			9-1-2020		1,610,000		1,789,660
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		4.00			5-1-2018		810,000		836,244
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		4.00			5-1-2020		795,000		842,088
Riverside County CA Public Financing County Facilities Projects (Miscellaneous Revenue)		5.00			5-1-2019		840,000		901,673
Robla CA School District Series B (GO Revenue, National Insured) ¤		0.00			8-1-2018		320,000		300,918
Romoland CA School District Community Facilities District #2004-1 (Tax Revenue)		4.00			9-1-2019		850,000		892,662
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		4.00			9-1-2019		875,000		916,353

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

16 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		5.00	%		9-1-2020	$	1,050,000	$	1,144,647
Roseville CA Special Tax Refunding Community Facilities District (Tax Revenue)		5.00			9-1-2021		500,000		552,110
Sacramento CA City Financing Refunding Master Lease Program Facilities (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2022		800,000		922,752
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		1,125,506
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		1,298,227
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		925,018
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		877,440
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		936,427
Sacramento CA Regional Transportation District Farebox (Transportation Revenue)		5.00			3-1-2019		500,000		534,000
Salinas CA Union High School District CAB (GO Revenue) ¤		0.00			8-1-2020		5,000,000		4,655,150
San Bernardino County CA Certificate of Participation Arrowhead Project Series A (Miscellaneous Revenue)		5.50			8-1-2020		1,000,000		1,093,110
San Bernardino County CA Certificate of Participation Medical Centre Financing Project (Miscellaneous Revenue, National Insured)		5.50			8-1-2017		300,000		307,692
San Buenaventura CA Community Mental Health System (Health Revenue)		6.00			12-1-2019		2,000,000		2,179,900
San Buenaventura CA Community Mental Health System (Health Revenue)		6.50			12-1-2021		2,585,000		2,973,293
San Diego CA Public Facilities Financing Authority Refunding Ballpark (Miscellaneous Revenue)		5.00			10-15-2026		500,000		588,120
San Diego CA RDA CAB Tax Allocation Center Series A (Tax Revenue, AGM Insured) ¤		0.00			9-1-2018		635,000		616,109
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		4.50			9-1-2017		345,000		351,883
San Francisco City & County CA RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		3.00			8-1-2017		205,000		206,702
San Francisco City & County CA RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		4.00			8-1-2017		885,000		898,001
San Francisco City & County CA RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		5.00			8-1-2018		500,000		525,215
San Francisco City & County CA RDA Successor Agency Community Facilities District #6 Series A (Tax Revenue)		5.00			8-1-2019		555,000		596,264
San Francisco City & County CA RDFA Mission Bay South Redevelopment Project-Sub Series D (Tax Revenue) 144A		3.00			8-1-2021		4,000,000		3,982,640
San Francisco City & County CA RDFA Mission Bay South Redevelopment Series A (Tax Revenue)		5.00			8-1-2020		500,000		553,320
San Francisco City & County CA RDFA Mission Bay South Redevelopment Series A (Tax Revenue)		5.00			8-1-2022		375,000		428,723
San Francisco City & County CA RDFA San Francisco Redevelopment Project Series B (Tax Revenue, National Insured)		5.25			8-1-2018		1,155,000		1,160,925
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2021		275,000		308,492
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2022		500,000		569,420
San Gorgonio CA Memorial Healthcare Refunding (GO Revenue)		5.00			8-1-2023		1,000,000		1,149,620
San Joaquin Hills County CA Transportation Corridor Agency Series A (Transportation Revenue)		5.00			1-15-2017		1,500,000		1,501,830
San Jose CA Airport Series A (Airport Revenue, Ambac Insured)		5.50			3-1-2018		4,350,000		4,545,924
San Jose CA Airport Series A (Airport Revenue, AGM/Ambac Insured)		5.50			3-1-2019		5,220,000		5,258,471
San Jose CA Convention Center Expansion & Renovation Project (Tax Revenue)		5.25			5-1-2023		1,465,000		1,635,511
San Jose CA Libraries & Parks Project (GO Revenue)		5.00			9-1-2017		715,000		717,402

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 17

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A (Tax Revenue, National Insured)		4.54	%		8-1-2018	$	1,035,000	$	1,037,712
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		2,006,400
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		1,128,735
San Jose CA Redevelopment Agency Tax Refunding Merged Area Redevelopment Project Series A-1 (Tax Revenue)		5.00			8-1-2022		800,000		879,240
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		2,693,023
San Jose CA Union Elementary School District Series B (GO Revenue)		3.00			9-1-2017		1,000,000		1,013,860
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		107,191
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		109,555
San Marcos CA PFA Series B (Tax Revenue)		3.00			9-1-2017		455,000		459,245
San Marcos CA PFA Series B (Tax Revenue)		4.00			9-1-2018		1,000,000		1,036,270
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		244,550
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		305,583
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		287,303
San Mateo County CA Transportation Authority Series A (Tax Revenue, National Insured) ¤		0.00			12-1-2018		270,000		260,234
San Mateo Foster City CA School District (GO Revenue)		5.00			8-15-2020		2,000,000		2,235,740
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2021		1,775,000		2,001,685
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2022		1,865,000		2,136,432
San Pablo CA Redevelopment Agency Series B (Tax Revenue, AGM Insured)		5.00			6-15-2023		1,945,000		2,259,195
Santa Ana CA Community Redevelopment Agency Merged Project Area Series A (Tax Revenue)		5.25			9-1-2019		1,000,000		1,091,390
Santa Ana CA Unified School District CAB Election of 2008 Series A (GO Revenue) ¤		0.00			8-1-2020		1,815,000		1,684,883
Santa Clara County CA Financing Authority Capital Projects Series A (Miscellaneous Revenue)		4.00			2-1-2024		6,000,000		6,511,320
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		4.00			8-1-2020		150,000		161,273
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2021		125,000		141,274
Santa Cruz County CA Capital Financing Public Facilities Project (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2022		165,000		189,384
Santa Cruz County CA Redevelopment Agency Live Oak Soquel Community Series A (Tax Revenue, National Insured)		5.25			9-1-2017		495,000		507,791
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		679,775
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		1,112,340
Santa Fe Springs CA Community Development Commission Consolidated Redevelopment Project Series A (Tax Revenue, National Insured)		5.00			9-1-2017		750,000		768,930
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2017		220,000		223,368
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2018		230,000		238,344

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

18 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00	%		8-1-2019	$	225,000	$	236,408
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2021		345,000		368,312
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2022		425,000		456,335
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2023		405,000		435,051
Sierra Kings CA Health Care Refunding (GO Revenue)		4.00			8-1-2024		420,000		451,891
Simi Valley CA Unified School District Refunding and Capital Improvement Project (Miscellaneous Revenue, Ambac Insured)		5.25			8-1-2017		200,000		204,162
Solana Beach CA School District Special Tax PFA (Tax Revenue)		4.00			9-1-2018		330,000		341,969
Solana Beach CA School District Special Tax PFA (Tax Revenue)		4.00			9-1-2019		735,000		772,213
South Monterey County CA Joint Union High School District (GO Revenue)		3.00			8-1-2017		1,485,000		1,499,197
South San Francisco CA Unified School District BAN Series D (GO Revenue) ¤		0.00			5-15-2017		3,000,000		2,988,900
South Western CA Community College District Refunding (GO Revenue)		5.00			8-1-2020		1,250,000		1,394,813
South Western CA Community College District Refunding (GO Revenue)		5.00			8-1-2021		2,710,000		3,083,194
Southern CA Mono Healthcare District (GO Revenue)		3.00			8-1-2017		300,000		302,091
Southern CA Mono Healthcare District (GO Revenue)		4.00			8-1-2019		845,000		881,969
Southern CA Public Power Authority Refunding Bond Canyon Power Project Series A (Utilities Revenue)		5.00			7-1-2026		1,000,000		1,126,740
Southern CA Public Power Authority Refunding Bond Canyon Power Project Series A (Utilities Revenue)		5.00			7-1-2027		1,000,000		1,123,530
Stanton CA Redevelopment Agency Consolidated Project Series A (Tax Revenue, AGM Insured)		4.00			12-1-2017		400,000		409,984
Stanton CA Redevelopment Agency Consolidated Project Series A (Tax Revenue, AGM Insured)		4.00			12-1-2018		410,000		429,291
Successor Agency to the Morgan Hill CA Redevelopment Agency Series A (Tax Revenue)		5.00			9-1-2021		1,055,000		1,197,562
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		463,349
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		418,068
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		623,053
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		774,600
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		574,844
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2019		850,000		913,096
Successor Agency to the Rancho Mirage CA Redevelopment Agency Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			4-1-2019		600,000		644,538
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		179,746
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		349,234
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		343,272
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		306,454
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		173,787
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2020		405,000		449,554

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 19

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00	%		10-1-2022	$	445,000	$	509,187
Successor Agency to the Riverside County CA Redevelopment Agency Desert Communities Project Area Series D (Tax Revenue)		5.00			10-1-2023		470,000		544,157
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2020		365,000		405,154
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2022		240,000		274,618
Successor Agency to the Riverside County CA Redevelopment Agency Project Area #1 Series A (Tax Revenue)		5.00			10-1-2023		460,000		532,579
Sulphur Springs CA Union School CAB Anticipation Notes Series A (Miscellaneous Revenue) ¤		0.00			1-1-2018		2,750,000		2,716,945
Sulphur Springs CA Union School District Prerefunded Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2017		150,000		152,087
Sulphur Springs CA Union School District Prerefunded Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2018		275,000		283,231
Sulphur Springs CA Union School District Prerefunded Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2019		295,000		307,030
Sulphur Springs CA Union School District Unrefunded Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2017		150,000		151,400
Sulphur Springs CA Union School District Unrefunded Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2018		280,000		285,384
Sulphur Springs CA Union School District Unrefunded Community Facilities District #2002-1 Series A (Tax Revenue)		3.00			9-1-2019		300,000		307,119
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2023		1,280,000		1,492,352
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2024		715,000		842,306
Sutter Butte CA Flood Agency Assessment (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2025		1,575,000		1,870,171
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		2,645,650
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		1,084,900
Sweetwater CA Union High School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2021		620,000		701,003
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2017		395,000		398,950
Temecula CA PFA Crown Hill Community Facilities District #3-1 (Tax Revenue)		3.00			9-1-2018		405,000		413,598
Temecula CA PFA Wolf Creek Community Facilities District #3-3 (Tax Revenue)		3.00			9-1-2018		870,000		886,043
Temecula Valley CA Unified School District Community Facilities District #89-1 (Tax Revenue)		3.00			9-1-2017		1,250,000		1,262,025
Torrance CA RDA Referendum Senior Lien Series C (Tax Revenue, National Insured)		5.45			9-1-2018		575,000		576,794
Tracy CA Community Development Agency Refunding (Tax Revenue, AGM Insured)		5.00			8-1-2024		400,000		469,484
Tracy CA Community Development Agency Refunding (Tax Revenue, AGM Insured)		5.00			8-1-2026		750,000		880,613
Tracy CA Community Development Agency Refunding (Tax Revenue, AGM Insured)		5.00			8-1-2027		1,000,000		1,164,430
Tustin CA Community Facilities District #6-1 Legacy Columbus Villages Series A (Tax Revenue)		5.00			9-1-2025		1,000,000		1,146,970
Twin Rivers CA Unified School District Series A (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			8-1-2019		385,000		408,108
Twin Rivers CA Unified School District Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		510,000		565,947
University of California Series AK (Education Revenue) ±		5.00			5-15-2048		10,000,000		11,741,000

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

20 Wells Fargo California Limited-Term Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Upland CA Successor Agency Merged Project Tax Allocation (Tax Revenue, AGM Insured)		5.00	%		9-1-2023	$	1,000,000	$	1,156,430
Vacaville CA Redevelopment Agency Tax Allocation Refunding Sub Redevelopment Projects (Tax Revenue)		5.00			9-1-2020		600,000		664,026
Vacaville CA Redevelopment Agency Tax Allocation Refunding Sub Redevelopment Projects (Tax Revenue)		5.00			9-1-2021		600,000		675,936
Vacaville CA Redevelopment Agency Tax Allocation Refunding Sub Redevelopment Projects (Tax Revenue)		5.00			9-1-2022		1,050,000		1,201,452
Vacaville CA Unified School District Series C (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2022		675,000		781,198
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2020		350,000		375,372
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		375,000		406,170
Val Verde CA Unified School District (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2022		665,000		761,884
Vallejo CA Refunding Bond (Water & Sewer Revenue, National Insured)		5.00			5-1-2019		790,000		792,054
Vallejo CA Refunding Bond (Water & Sewer Revenue, National Insured)		5.00			5-1-2021		1,500,000		1,502,940
Vallejo CA Unified School District Series A (GO Revenue, National Insured)		5.90			2-1-2018		2,065,000		2,162,964
Ventura County CA Public Financing Authority Series B (Miscellaneous Revenue)		5.00			11-1-2019		375,000		410,089
Ventura County CA Public Financing Authority Series B (Miscellaneous Revenue)		5.00			11-1-2020		250,000		279,548
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		4.00			12-1-2020		250,000		269,883
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		4.00			12-1-2021		250,000		272,493
Visalia CA Certificate of Participation (Miscellaneous Revenue, AGM Insured)		5.00			12-1-2022		335,000		386,402
Walnut CA Energy Center Authority Refunding Series A (Utilities Revenue)		5.00			1-1-2021		500,000		561,525
Walnut CA Improvement Agency Refunding Walnut Improvement Project (Tax Revenue, Build America Mutual Assurance Company Insured)		4.00			3-1-2017		850,000		854,182
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2017		1,125,000		1,145,509
Washington Township CA Health Refunding Series A (Health Revenue)		5.00			7-1-2023		600,000		672,684
West Covina CA Unified School District (GO Revenue, AGM Insured)		4.00			8-1-2017		325,000		330,590
West Covina CA Unified School District (GO Revenue, AGM Insured)		4.00			8-1-2018		575,000		598,840
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.25			9-1-2017		270,000		271,882
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.50			9-1-2018		275,000		279,725
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		2.75			9-1-2019		285,000		292,541
West Sacramento CA Flood Control Agency (Miscellaneous Revenue)		5.00			9-1-2020		290,000		320,946
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2017		570,000		579,097
Western Riverside County CA Regional Wastewater Authority Series A-1 (Tax Revenue)		4.00			9-1-2019		1,830,000		1,920,713
Windsor CA Redevelopment Successor Agency Windsor Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		3.00			9-1-2017		615,000		622,239
Yuba City CA Redevelopment Agency Refunding (Tax Revenue, AGM Insured)		5.00			9-1-2025		750,000		889,943
									636,441,449
Guam: 0.67%
Guam Government Limited Refinancing Section 30 Series A (Tax Revenue)		5.00			12-1-2027		2,000,000		2,298,960
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			7-1-2022		400,000		441,484
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2019		1,640,000		1,766,034
									4,506,478
New York: 0.37%
New York NY HFA 605 West 42nd Street Series A (Housing Revenue, Bank of China LOC) ø		0.90			5-1-2048		2,500,000		2,500,000

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico: 0.66%
Puerto Rico HFA Subordinated Capital Fund Modernization Program Refunding Bond (Housing Revenue, HUD Insured)		5.50	%		12-1-2017	$	2,045,000	$	2,114,326
Puerto Rico HFA Subordinated Capital Fund Modernization Program Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2018		1,250,000		1,336,363
Puerto Rico HFA Unrefunded Balance Capital Funding Program (Housing Revenue)		5.00			12-1-2019		1,000,000		1,041,340
									4,492,029
Texas: 1.18%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.85			12-1-2039		8,000,000		8,000,000
Virgin Islands: 0.13%
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series A (Tobacco Revenue)		5.00			10-1-2025		1,000,000		849,560
Total Municipal Obligations (Cost $648,696,243)									656,789,516
	Yield					Shares
Short-Term Investments: 0.67%
Investment Companies: 0.67%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.67					4,493,875		4,496,572
Total Short-Term Investments (Cost $4,495,998)									4,496,572

Total investments in securities (Cost $653,192,241) *	97.90	%		661,286,088
Other assets and liabilities, net	2.10			14,195,848
Total net assets	100.00	%	$	675,481,936

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

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

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

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

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

(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 $653,191,938 and unrealized gains (losses) consists of:

Gross unrealized gains	$	10,706,107
Gross unrealized losses		(2,611,957	)
Net unrealized gains	$	8,094,150

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

22 Wells Fargo California Limited-Term Tax-Free Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $648,696,243)	$	656,789,516
In affiliated securities, at value (cost $4,495,998)		4,496,572
Total investments, at value (cost $653,192,241)		661,286,088
Receivable for investments sold		10,966,747
Receivable for Fund shares sold		3,115,338
Receivable for interest		7,515,323
Prepaid expenses and other assets		58,426
Total assets		682,941,922
Liabilities
Dividends payable		539,539
Payable for Fund shares redeemed		6,477,872
Management fee payable		223,633
Distribution fee payable		26,398
Administration fees payable		68,159
Accrued expenses and other liabilities		124,385
Total liabilities		7,459,986
Total net assets	$	675,481,936
NET ASSETS CONSIST OF
Paid-in capital	$	670,327,111
Undistributed net investment income		414,304
Accumulated net realized losses on investments		(3,353,326	)
Net unrealized gains on investments		8,093,847
Total net assets	$	675,481,936
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	157,598,651
Shares outstanding – Class A1		14,761,638
Net asset value per share – Class A		$10.68
Maximum offering price per share – Class A2		$10.90
Net assets – Class C	$	38,560,085
Shares outstanding – Class C1		3,612,342
Net asset value per share – Class C		$10.67
Net assets – Administrator Class	$	123,538,440
Shares outstanding – Administrator Class1		11,749,045
Net asset value per share – Administrator Class		$10.51
Net assets – Institutional Class	$	355,784,760
Shares outstanding – Institutional Class1		33,858,297
Net asset value per share – Institutional Class		$10.51

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2016 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 23

Investment income
Interest	$	9,522,868
Income from affiliated securities		14,712
Total investment income		9,537,580
Expenses
Management fee		1,557,390
Administration fees
Class A		154,402
Class C		33,225
Administrator Class		100,420
Institutional Class		144,505
Shareholder servicing fees
Class A		241,253
Class C		51,914
Administrator Class		250,269
Distribution fee
Class C		155,742
Custody and accounting fees		23,487
Professional fees		20,756
Registration fees		28,711
Shareholder report expenses		15,060
Trustees’ fees and expenses		11,884
Other fees and expenses		8,606
Total expenses		2,797,624
Less: Fee waivers and/or expense reimbursements		(201,978	)
Net expenses		2,595,646
Net investment income		6,941,934
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(2,512,437	)
Affiliated securities		4,879
Net realized losses on investments		(2,507,558	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(23,534,006	)
Affiiliated securities		574
Net change in unrealized gains (losses) on investments		(23,533,432	)
Net realized and unrealized gains (losses) on investments		(26,040,990	)
Net decrease in net assets resulting from operations	$	(19,099,056	)

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

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

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	6,941,934					$	13,668,017
Net realized gains (losses) on investments					(2,507,558	)					307,165
Net change in unrealized gains (losses) on investments					(23,533,432	)					15,198,116
Net increase (decrease) in net assets resulting from operations					(19,099,056	)					29,173,298
Distributions to shareholders from
Net investment income
Class A					(1,540,821	)					(3,106,736	)
Class C					(175,941	)					(293,867	)
Administrator Class					(1,794,531	)					(4,753,577	)
Institutional Class					(3,430,641	)					(5,513,837	)
Total distributions to shareholders					(6,941,934	)					(13,668,017	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,568,550			28,037,975			3,717,168			40,622,538
Class C		542,614			5,944,775			1,111,875			12,161,519
Administrator Class		1,723,866			18,584,481			7,716,091			82,975,726
Institutional Class		15,405,363			164,296,461			18,822,453			202,617,124
					216,863,692						338,376,907
Reinvestment of distributions
Class A		124,248			1,352,233			255,259			2,791,230
Class C		14,672			159,443			24,387			266,691
Administrator Class		163,975			1,760,246			392,993			4,230,319
Institutional Class		55,248			588,621			36,473			393,272
					3,860,543						7,681,512
Payment for shares redeemed
Class A		(5,743,735	)		(62,106,108	)		(4,482,841	)		(49,048,097	)
Class C		(578,062	)		(6,271,762	)		(643,275	)		(7,027,894	)
Administrator Class		(10,983,194	)		(116,852,938	)		(16,255,503	)		(174,866,159	)
Institutional Class		(13,918,274	)		(148,358,836	)		(12,821,779	)		(137,811,298	)
					(333,589,644	)					(368,753,448	)
Net decrease in net assets resulting from capital share transactions					(112,865,409	)					(22,695,029	)
Total decrease in net assets					(138,906,399	)					(7,189,748	)
Net assets
Beginning of period					814,388,335						821,578,083
End of period				$	675,481,936					$	814,388,335
Undistributed net investment income				$	414,304					$	414,304

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

Financial highlights Wells Fargo California Limited-Term Tax-Free Fund 25

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.04			$10.83			$10.86			$10.66			$10.70			$10.51
Net investment income		0.09			0.17			0.16			0.18			0.21			0.27
Net realized and unrealized gains (losses) on investments		(0.36	)		0.21			(0.03	)		0.20			(0.04	)		0.19
Total from investment operations		(0.27	)		0.38			0.13			0.38			0.17			0.46
Distributions to shareholders from
Net investment income		(0.09	)		(0.17	)		(0.16	)		(0.18	)		(0.21	)		(0.27	)
Net asset value, end of period		$10.68			$11.04			$10.83			$10.86			$10.66			$10.70
Total return1		(2.48	)%		3.54	%		1.22	%		3.61	%		1.59	%		4.41	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.83	%		0.82	%		0.83	%		0.83	%		0.84	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		1.60	%		1.56	%		1.49	%		1.70	%		1.95	%		2.51	%
Supplemental data
Portfolio turnover rate		7	%		21	%		31	%		31	%		32	%		56	%
Net assets, end of period (000s omitted)		$157,599			$196,629			$198,402			$203,306			$156,366			$162,381

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

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

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

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.04			$10.83			$10.86			$10.65			$10.70			$10.51
Net investment income		0.05			0.09			0.08			0.10			0.13			0.19
Net realized and unrealized gains (losses) on investments		(0.37	)		0.21			(0.03	)		0.21			(0.05	)		0.19
Total from investment operations		(0.32	)		0.30			0.05			0.31			0.08			0.38
Distributions to shareholders from
Net investment income		(0.05	)		(0.09	)		(0.08	)		(0.10	)		(0.13	)		(0.19	)
Net asset value, end of period		$10.67			$11.04			$10.83			$10.86			$10.65			$10.70
Total return1		(2.94	)%		2.76	%		0.47	%		2.94	%		0.73	%		3.63	%
Ratios to average net assets (annualized)
Gross expenses		1.58	%		1.58	%		1.57	%		1.58	%		1.58	%		1.59	%
Net expenses		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%
Net investment income		0.85	%		0.81	%		0.74	%		0.95	%		1.19	%		1.77	%
Supplemental data
Portfolio turnover rate		7	%		21	%		31	%		31	%		32	%		56	%
Net assets, end of period (000s omitted)		$38,560			$40,098			$33,996			$34,920			$35,309			$33,414

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

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

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

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.87			$10.66			$10.70			$10.49			$10.53			$10.34
Net investment income		0.10	1		0.19			0.18			0.20			0.23			0.29
Net realized and unrealized gains (losses) on investments		(0.36	)		0.21			(0.04	)		0.21			(0.04	)		0.19
Total from investment operations		(0.26	)		0.40			0.14			0.41			0.19			0.48
Distributions to shareholders from
Net investment income		(0.10	)		(0.19	)		(0.18	)		(0.20	)		(0.23	)		(0.29	)
Net asset value, end of period		$10.51			$10.87			$10.66			$10.70			$10.49			$10.53
Total return2		(2.43	)%		3.78	%		1.33	%		3.95	%		1.79	%		4.65	%
Ratios to average net assets (annualized)
Gross expenses		0.77	%		0.77	%		0.76	%		0.77	%		0.77	%		0.77	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.79	%		1.75	%		1.69	%		1.90	%		2.14	%		2.72	%
Supplemental data
Portfolio turnover rate		7	%		21	%		31	%		31	%		32	%		56	%
Net assets, end of period (000s omitted)		$123,538			$226,581			$309,120			$550,156			$388,872			$269,980

¹  Calculated based upon average shares outstanding

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 Limited-Term Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			20151
Net asset value, beginning of period		$10.86			$10.66			$10.75
Net investment income		0.10			0.20			0.13
Net realized and unrealized gains (losses) on investments		(0.35	)		0.20			(0.09	)
Total from investment operations		(0.25	)		0.40			0.04
Distributions to shareholders from
Net investment income		(0.10	)		(0.20	)		(0.13	)
Net asset value, end of period		$10.51			$10.86			$10.66
Total return2		(2.29	)%		3.79	%		0.35	%
Ratios to average net assets (annualized)
Gross expenses		0.50	%		0.50	%		0.50	%
Net expenses		0.50	%		0.50	%		0.50	%
Net investment income		1.90	%		1.86	%		1.82	%
Supplemental data
Portfolio turnover rate		7	%		21	%		31	%
Net assets, end of period (000s omitted)		$355,785			$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 (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 29

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 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.

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

Distributions to shareholders

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

Federal and other taxes

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

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

As of June 30, 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:

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	656,789,516	$	0	$	656,789,516
Short-term investments
Investment companies		4,496,572		0		0		4,496,572
Total assets	$	4,496,572	$	656,789,516	$	0	$	661,286,088

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

Notes to financial statements (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 31

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 subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 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, 2017 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $7 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,059 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $1,062 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.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $48,469,899 and $152,610,492, 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 $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six month ended December 31, 2016, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

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

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

Other information (unaudited) Wells Fargo California Limited-Term Tax-Free Fund 33

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.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

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

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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

36 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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300476 02-17 SA248/SAR248 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo California Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	25
Other information	30
List of abbreviations	33

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo California Tax-Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and

new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(4.73	)		3.58		3.88		(0.21	)		4.54		4.36		0.82		0.75
Class C (SCTCX)	7-1-1993		(1.98	)		3.76		3.58		(0.98	)		3.76		3.58		1.57		1.50
Administrator Class (SGCAX)	12-15-1997		–			–		–		(0.09	)		4.75		4.58		0.76		0.55
Institutional Class (SGTIX)	10-31-2014		–			–		–		(0.02	)		4.78		4.60		0.49		0.48
Bloomberg Barclays Municipal Bond Index4	–		–			–		–		0.25			3.28		4.25		–		–
Bloomberg Barclays California Municipal Bond Index5	–		–			–		–		(0.14	)		3.85		4.44		–		–

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

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

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

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

Effective maturity distribution as of December 31, 2016⁶

Credit quality as of December 31, 2016⁷

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, 2017, 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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 Bloomberg Barclays California Municipal Bond Index (formerly known as Barclays California Municipal Bond Index) is the California component of the Bloomberg Barclays Municipal Bond Index. You cannot invest directly in an index.

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 California Tax-Free Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	949.53	$	3.68		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.37	$	3.81		0.75	%
Class C
Actual	$	1,000.00	$	945.62	$	7.34		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.61		1.50	%
Administrator Class
Actual	$	1,000.00	$	949.84	$	2.70		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.37	$	2.80		0.55	%
Institutional Class
Actual	$	1,000.00	$	950.18	$	2.35		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.72	$	2.44		0.48	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 97.87%
California: 95.95%
ABC Unified School District CAB Election of 1997 Series B (GO Revenue, National Insured) ¤		0.00	%		8-1-2018	$	1,500,000	$	1,465,275
Alameda County CA Corridor Transportation Authority CAB Subordinated Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		2,955,000		2,881,095
Alameda County CA Corridor Transportation Authority CAB Subordinated Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		940,000		910,296
Alameda County CA Corridor Transportation Authority CAB Subordinated Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		2,780,000		2,650,869
Alameda County CA Corridor Transportation Authority CAB Subordinated Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2019		220,000		207,618
Alameda County CA Corridor Transportation Authority CAB Subordinated Lien Series A (Transportation Revenue, Ambac Insured)		5.25			10-1-2021		3,000,000		3,095,220
Alameda County CA Corridor Transportation Authority CAB Subordinated Lien Series B (Transportation Revenue, AGM Insured)		4.00			10-1-2037		2,215,000		2,229,132
Alameda County CA Corridor Transportation Authority CAB Subordinated Lien Series B (Transportation Revenue)		5.00			10-1-2037		1,500,000		1,631,430
Alameda CA Joint Powers Authority Multiple Capital Projects Series A (Miscellaneous Revenue)		5.00			12-1-2034		1,005,000		1,138,454
Alhambra CA Unified School District Election of 2008 Series B (GO Revenue, AGM Insured)		6.00			8-1-2029		4,100,000		4,856,614
Alisal CA Unified School District CAB Election of 2006 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2017		1,105,000		1,097,320
Alvord CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.25			8-1-2037		1,620,000		1,841,503
Anaheim CA Housing & Public Improvements Authority Series A (Water & Sewer Revenue)		5.00			10-1-2046		2,250,000		2,476,598
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2018		4,455,000		4,324,602
Anaheim CA PFA CAB Sub Lien Public Improvements Project Series C (Miscellaneous Revenue, AGM Insured) ¤		0.00			9-1-2025		10,000,000		7,559,500
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2039		3,000,000		3,315,360
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		3,000,000		3,282,690
Antelope Valley CA Healthcare District Refunding Bond Series A (Health Revenue)		5.25			3-1-2036		3,000,000		3,011,910
Banning CA Financing Authority Refunding Bond Electric System Project (Utilities Revenue, AGM Insured)		5.00			6-1-2037		5,000,000		5,558,100
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		1,228,395
Bay Area CA Toll Authority Toll Bridge Series S-4 (Transportation Revenue)		5.00			4-1-2030		2,000,000		2,276,520
Bay Area CA Water Supply & Conservation Agency Series A (Water & Sewer Revenue)		5.00			10-1-2034		6,000,000		6,774,120
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		4,004,088
Cabrillo CA Unified School District CAB Series A (GO Revenue, Ambac Insured) ¤		0.00			8-1-2021		1,500,000		1,336,380
California (GO Revenue)		5.00			8-1-2025		30,000		30,108
California (GO Revenue)		5.00			8-1-2025		4,970,000		4,987,147
California (GO Revenue)		5.25			8-1-2038		1,925,000		2,031,183
California (GO Revenue)		5.25			11-1-2040		3,000,000		3,334,530
California AMT Department of Veterans Affairs Series BZ (GO Revenue, National Insured)		5.35			12-1-2021		5,000		5,012

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

8 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
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	$	5,605,000
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		1,229,184
California Educational Facilities Authority Pepperdine University Refunding Bond (Education Revenue)		5.00			10-1-2046		8,000,000		9,090,080
California Financial Authority Charter School Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2036		945,000		916,404
California Financial Authority Charter School Rocketship Education Series A (Education Revenue) 144A		5.00			6-1-2046		2,100,000		1,973,853
California Health Facilities Financing Authority Refunding Bond Cedars Sinai Medical Center Series B (Health Revenue)		4.00			8-15-2039		10,500,000		10,574,865
California Health Facilities Financing Authority Refunding Bond Sutter Health Project Series B (Health Revenue)		5.00			11-15-2035		1,000,000		1,135,920
California HFA AMT Home Mortgage Series G (Housing Revenue)		5.50			8-1-2042		165,000		165,606
California HFA AMT Home Mortgage Series K (Housing Revenue)		5.30			8-1-2023		2,520,000		2,541,319
California HFFA Catholic Healthcare West Series A (Health Revenue)		5.25			3-1-2023		3,000,000		3,349,050
California HFFA Catholic Healthcare West Series A (Health Revenue)		6.00			7-1-2029		4,000,000		4,446,800
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2030		1,830,000		2,085,212
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2035		1,000,000		1,111,050
California HFFA Nevada Methodist Homes (Health Revenue, California Mortgage Insured)		5.00			7-1-2045		4,500,000		4,923,450
California HFFA Prerefunded Bond Providence Health Services Series C (Health Revenue)		6.50			10-1-2038		100,000		109,080
California HFFA Sutter Health Series A (Health Revenue)		5.00			8-15-2043		1,250,000		1,375,800
California HFFA Sutter Health Series D (Health Revenue)		5.25			8-15-2031		3,100,000		3,556,165
California Infrastructure & Economic Development King City Joint Union High School (Miscellaneous Revenue)		5.75			8-15-2029		2,150,000		2,399,938
California Municipal Finance Authority California Baptist University Series A (Education Revenue) 144A		5.00			11-1-2025		1,025,000		1,064,996
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		6.75			8-1-2033		1,525,000		1,649,135
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		1,000,000		1,096,800
California Municipal Finance Authority NorthBay Healthcare Group Series A (Health Revenue)		5.00			11-1-2027		1,000,000		1,093,470
California Municipal Finance Authority NorthBay Healthcare Group Series A (Health Revenue)		5.00			11-1-2028		500,000		547,240
California Municipal Financing Authority BAN Open Door Community Health Centers (Health Revenue)		2.80			9-15-2018		3,000,000		3,025,410
California Municipal Financing Authority California Baptist University Series A (Education Revenue) 144A		4.00			11-1-2021		850,000		853,307
California Municipal Financing Authority Certificate of Participation Community Hospitals of Central California (Health Revenue)		5.00			2-1-2020		415,000		416,461
California Municipal Financing Authority Certificate of Participation Community Hospitals of Central California (Health Revenue)		5.00			2-1-2020		585,000		586,591
California Municipal Financing Authority Charter School Palmdale Aerospace Academy Project (Education Revenue) 144A		5.00			7-1-2041		1,250,000		1,225,775
California Municipal Financing Authority University of the Pacific Program (Education Revenue)		5.00			11-1-2048		1,750,000		1,886,395

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.90	%		8-1-2027	$	15,335,000	$	15,335,000
California PFOTER Series DCL-010 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.90			8-1-2027		21,220,000		21,220,000
California PFOTER Series DCL-011 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.90			8-1-2027		14,525,000		14,525,000
California Public Works Board California State University Projects Series B-1 (Miscellaneous Revenue)		5.70			3-1-2035		2,210,000		2,469,388
California Public Works Board Judicial Council Projects Series A (Miscellaneous Revenue)		5.00			3-1-2038		7,000,000		7,712,390
California Public Works Board Judicial Council Projects Series D (Miscellaneous Revenue)		5.25			12-1-2025		4,000,000		4,573,480
California Public Works Board Various Capital Projects Series A (Miscellaneous Revenue)		5.00			4-1-2037		4,925,000		5,455,718
California Public Works Board Various Capital Projects Series G (Miscellaneous Revenue)		5.00			11-1-2037		23,000,000		25,732,400
California Public Works Board Various Capital Projects Series I (Miscellaneous Revenue)		5.50			11-1-2033		2,000,000		2,366,680
California Public Works University of California Board of Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		9,850,000		11,282,387
California Refunding Bond (GO Revenue)		5.00			9-1-2034		1,975,000		2,288,156
California Refunding Bond Bid Group C (GO Revenue)		5.00			8-1-2033		2,000,000		2,327,420
California School Finance Authority Green Dot Public Schools Projects (Education Revenue) 144A		4.00			8-1-2025		475,000		491,402
California School Finance Authority Green Dot Public Schools Projects (Education Revenue) 144A		5.00			8-1-2035		2,525,000		2,686,120
California School Finance Authority KIPP Louisiana School Projects Series A (Education Revenue) 144A		5.00			7-1-2035		1,000,000		1,039,300
California Special District Association Finance Corporation Program Series MM (Miscellaneous Revenue)		5.50			6-1-2021		615,000		616,722
California Statewide CDA Adventist Health System Series A (Health Revenue)		5.00			3-1-2045		2,500,000		2,724,250
California Statewide CDA Catholic Healthcare West Series A (Health Revenue)		5.50			7-1-2030		2,940,000		3,007,385
California Statewide CDA Certificate of Participation Internext Group (Health Revenue)		5.38			4-1-2017		100,000		100,387
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2033		1,650,000		1,863,857
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2035		1,000,000		1,117,930
California Statewide CDA Enloe Medical Center (Health Revenue, Ambac Insured)		5.00			8-15-2038		3,000,000		3,321,630
California Statewide CDA Loma Linda University Medical Center Refunding Bond Series A (Health Revenue)		5.25			12-1-2044		5,150,000		5,283,900
California Statewide CDA Poway Retirement Housing Foundation Housing Incorporated Series A (Housing Revenue)		5.25			11-15-2035		1,500,000		1,732,380
California Statewide CDA Redwoods Projects (Health Revenue)		5.13			11-15-2035		1,500,000		1,713,660
California Statewide CDA School Facility Alliance for College-Ready Public Schools (Education Revenue)		6.75			7-1-2031		1,625,000		1,825,980
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.00			7-1-2020		1,275,000		1,330,016
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.20			7-1-2020		270,000		282,442
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		1,000,330
California Statewide CDA St. Joseph Health System (Health Revenue, AGM Insured)		5.25			7-1-2021		1,775,000		1,883,115

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

10 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Statewide CDA Student Housing CHF-Irvine LLC Refunding Bond (Housing Revenue)		5.00	%		5-15-2032	$	1,250,000	$	1,362,175
California Statewide CDA Water & Wastewater Pooled Financing Program Series B (Water & Sewer Revenue, AGM Insured)		5.25			10-1-2027		1,040,000		1,043,526
California Statewide Index Floating Rate Bonds Series B (GO Revenue) ±		1.19			12-1-2031		2,500,000		2,466,250
California University Systemwide Refunding Bond Series A (Education Revenue)		4.00			11-1-2038		8,000,000		8,194,080
California University Systemwide Refunding Bond Series A (Education Revenue)		5.00			11-1-2045		6,400,000		7,256,832
California Various Purpose Refunding Bond (GO Revenue)		4.00			9-1-2035		10,000,000		10,381,800
California Various Purpose Refunding Bond (GO Revenue)		5.00			9-1-2035		35,000,000		40,391,400
California Various Purposes (GO Revenue)		4.00			9-1-2045		1,500,000		1,533,780
California Various Purposes (GO Revenue)		5.00			9-1-2029		1,475,000		1,665,806
California Various Purposes (GO Revenue)		5.00			10-1-2029		7,000,000		7,593,880
California Various Purposes (GO Revenue)		5.00			9-1-2032		5,100,000		5,808,033
California Various Purposes (GO Revenue)		5.00			6-1-2037		4,215,000		4,288,130
California Various Purposes (GO Revenue)		5.00			2-1-2038		5,000,000		5,573,000
California Various Purposes (GO Revenue)		5.13			4-1-2033		6,735,000		7,021,978
California Various Purposes (GO Revenue)		5.25			9-1-2028		5,000,000		5,706,950
California Various Purposes (GO Revenue)		5.25			10-1-2029		800,000		873,664
California Various Purposes (GO Revenue)		5.25			4-1-2035		12,640,000		14,255,013
California Various Purposes (GO Revenue)		5.25			3-1-2038		2,300,000		2,395,795
California Various Purposes (GO Revenue)		5.60			3-1-2036		8,715,000		9,708,249
California Various Purposes (GO Revenue)		5.75			4-1-2029		1,600,000		1,742,032
California Various Purposes (GO Revenue)		5.75			4-1-2031		3,380,000		3,689,473
California Various Purposes (GO Revenue)		6.00			4-1-2035		2,140,000		2,338,250
California Various Purposes (GO Revenue)		6.00			4-1-2038		23,465,000		25,611,578
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		1,607,006
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		970,957
Center California Unified School District CAB Series C (GO Revenue, National Insured) ¤		0.00			9-1-2021		5,000,000		4,479,000
Centinela Valley CA Union High School District Election of 2008 Series B (GO Revenue)		6.00			8-1-2036		2,500,000		3,103,275
Centinela Valley CA Union High School District Election of 2008 Series C (GO Revenue)		5.00			8-1-2035		2,000,000		2,259,400
Central Valley CA School District Financing Authority Series A (Miscellaneous Revenue, National Insured)		6.45			2-1-2018		660,000		675,649
Cerritos CA Community College CAB Election of 2004 (GO Revenue) ¤		0.00			8-1-2029		1,750,000		1,102,710
Cerritos CA Community College CAB Election of 2004 (GO Revenue) ¤		0.00			8-1-2033		1,500,000		785,310
Chico CA PFA Redevelopment Project Area (Tax Revenue, National Insured)		5.13			4-1-2021		3,000,000		3,029,880
Chula Vista CA Redevelopment Agency (Tax Revenue, AGM Insured)		5.00			10-1-2027		1,480,000		1,750,944
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		802,090
Compton CA Community College CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2035		3,445,000		1,514,801
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		5.00			8-1-2020		1,140,000		1,208,822
Compton CA PFA Refunding Bond (Miscellaneous Revenue) 144A		4.00			9-1-2027		3,800,000		3,651,116
Compton CA PFA Refunding Bond (Miscellaneous Revenue) 144A		4.50			9-1-2032		2,000,000		1,941,400
Contra Costa County CA Community College District Election of 2006 (GO Revenue)		5.00			8-1-2038		3,250,000		3,681,405

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Contra Costa County CA Home GNMA Mortgage-Backed Securities Program (Housing Revenue, GNMA Insured)		7.75	%		5-1-2022	$	150,000	$	173,115
Delano CA Union High School Election of 2010 Series B (GO Revenue, AGM Insured)		5.75			8-1-2035		4,510,000		5,084,033
Dinuba CA Redevelopment Agency Merged City Redevelopment Project (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2033		1,500,000		1,692,060
East Bay CA Municipal Utility District Water System Series B (Water & Sewer Revenue)		4.00			6-1-2045		2,160,000		2,231,755
El Dorado CA Irrigation District Refunding Bond Series A (Water & Sewer Revenue, AGM Insured)		5.25			3-1-2039		2,000,000		2,270,320
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		1,670,490
Elsinore Valley CA Municipal Water District Financing Authority Refunding Bond Series A (Water & Sewer Revenue)		5.00			7-1-2027		2,500,000		3,008,900
Emeryville CA PFA Assessment Distribution Refinancing (Miscellaneous Revenue)		5.90			9-2-2021		1,440,000		1,443,672
Escondido CA Union High School CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2027		8,385,000		5,834,702
Florin CA Resource Conservation Refunding Bond Second Senior Lien Series A (Water & Sewer Revenue, National Insured)		5.00			9-1-2032		2,000,000		2,245,920
Fontana CA RDA Jurupa Hills Redevelopment Project Series A (Tax Revenue)		5.50			10-1-2017		665,000		671,963
Fontana CA RDA Jurupa Hills Redevelopment Project Series A (Tax Revenue)		5.60			10-1-2027		4,785,000		4,833,998
Foothill-Eastern Corridor CA Transportation Agency Sub Series B-3 (Transportation Revenue) ±		5.50			1-15-2053		8,000,000		9,091,520
Fremont CA Community Facilities District #1 Refunding Bond (Tax Revenue)		5.00			9-1-2040		2,700,000		2,853,441
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		1,546,810
Garden Grove CA Unified School District Election of 2010 Series C (GO Revenue)		5.25			8-1-2037		2,000,000		2,292,800
Gilroy CA Unified School District Election of 2008 Series A (GO Revenue, AGC Insured)		6.00			8-1-2027		1,000,000		1,115,920
Golden Empire Schools California Financing Authority Kern High School District Projects (Miscellaneous Revenue) ±		1.22			5-1-2017		5,000,000		4,999,450
Hayward CA Unified School District Refunding Bond (GO Revenue)		5.00			8-1-2038		6,000,000		6,637,020
Hollister CA Joint Powers Financing Authority Wastewater Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			6-1-2036		1,270,000		1,442,441
Hollister CA Joint Powers Financing Authority Wastewater Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			6-1-2037		5,000,000		5,576,750
Imperial CA Irrigation District Electric System Refunding Bond Series A (Utilities Revenue)		5.00			11-1-2040		3,715,000		4,195,461
Imperial CA Irrigation District Electric System Refunding Bond Series A (Utilities Revenue)		5.00			11-1-2045		1,060,000		1,191,906
Imperial CA Irrigation District Electric System Refunding Bond Series C (Utilities Revenue)		5.00			11-1-2038		4,300,000		4,864,590
Independent Cities California Finance Refunding Bond Sanitary Juan Mobile Estates (Housing Revenue)		5.00			8-15-2030		1,000,000		1,105,310
Inland Valley CA Development Agency Series A (Tax Revenue)		5.25			9-1-2037		4,000,000		4,467,120
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2025		725,000		812,580
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2026		400,000		445,152
Irvine CA Improvement Bond Act 1915 Limited Obligation Reassessment District #15-2 (Miscellaneous Revenue)		5.00			9-2-2042		1,500,000		1,583,040
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2033		7,000,000		2,383,080
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2034		6,915,000		2,164,879

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

12 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00	%		8-1-2034	$	2,990,000	$	936,079
Jefferson CA Union High School CAB Election of 2006 Series D (GO Revenue) ¤		0.00			8-1-2036		11,130,000		2,956,017
Lafayette CA Redevelopment Agency Refunding Bond Lafayette Redevelopment Project (Tax Revenue, AGM Insured)		5.00			8-1-2033		1,500,000		1,677,330
Lafayette CA Redevelopment Agency Refunding Bond Lafayette Redevelopment Project (Tax Revenue, AGM Insured)		5.00			8-1-2038		1,635,000		1,806,283
Lancaster CA RDA Tax Allocation Combined Redevelopment Project Areas (Tax Revenue)		6.50			8-1-2029		2,000,000		2,224,720
Lodi CA Unified School District School Facility Election of 2006 (GO Revenue, AGM Insured)		5.00			8-1-2030		2,000,000		2,047,920
Long Beach CA Financing Authority Refunding Bond (Miscellaneous Revenue, Ambac Insured)		6.00			11-1-2017		250,000		257,628
Long Beach CA Unified School District CAB Election of 2008 Series B (GO Revenue) ¤		0.00			8-1-2035		2,000,000		948,680
Long Beach CA Unified School District Election of 2008 Series A (GO Revenue)		5.50			8-1-2026		1,435,000		1,583,192
Long Beach CA Unified School District Election of 2008 Series A (GO Revenue)		5.50			8-1-2026		95,000		104,658
Los Angeles CA Certificate of Participation Sonneblick del Rio Project (Miscellaneous Revenue, Ambac Insured)		6.00			11-1-2019		1,540,000		1,546,376
Los Angeles CA Community College District Refunding Bond (GO Revenue)		4.00			8-1-2038		10,000,000		10,346,200
Los Angeles CA Community Redevelopment Vermont Manchester Social Services Project (Miscellaneous Revenue, Ambac Insured)		5.00			9-1-2025		2,310,000		2,330,074
Los Angeles CA Department of Water and Power Series E (Utilities Revenue)		5.00			7-1-2044		12,475,000		13,997,574
Los Angeles CA Harbor Department (Airport Revenue)		7.60			10-1-2018		30,000		32,188
Los Angeles CA Public Works Financing Authority Series A (Miscellaneous Revenue)		5.00			12-1-2039		2,860,000		3,215,412
Los Angeles County CA Public Works Financial Authority Series D (Miscellaneous Revenue)		4.00			12-1-2040		2,000,000		2,028,460
Los Angeles County CA Public Works Financial Authority Series D (Miscellaneous Revenue)		5.00			12-1-2045		7,400,000		8,334,546
Lynwood CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2033		5,000		5,559
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		7.00			11-1-2034		4,000,000		5,475,720
M-S-R California Energy Authority Gas Series C (Utilities Revenue)		6.13			11-1-2029		1,060,000		1,308,453
Merced CA City School District Election of 2014 (GO Revenue)		5.00			8-1-2045		1,000,000		1,121,410
Merced CA Irrigation District Water & Hydroelectric System Series A (Water & Sewer Revenue, AGM Insured)		5.00			10-1-2038		4,000,000		4,490,680
Merced CA Union High School District CAB Series A (GO Revenue, National Insured) ¤		0.00			8-1-2018		2,135,000		2,083,055
Merced CA Union High School District CAB Series C (GO Revenue) ¤		0.00			8-1-2032		3,380,000		1,837,165
Modesto CA Irrigation District Financing Authority Series A (Utilities Revenue)		5.00			10-1-2040		3,500,000		3,901,065
Montclair CA PFA Lease Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2035		2,400,000		2,670,024
Morongo Band of Mission Indians California Enterprise Casino Series B (Miscellaneous Revenue) 144A		6.50			3-1-2028		2,100,000		2,198,469
Mount San Antonio CA Community College District CAB Election of 2008 Series A (GO Revenue) ¤		0.00			8-1-2024		1,610,000		1,291,365
Natomas CA Unified School District Series 1999 (GO Revenue, National Insured)		5.95			9-1-2021		740,000		792,614
Northern California Power Agency Public Power Prerefunded Bond (Utilities Revenue, Ambac Insured)		7.50			7-1-2023		50,000		58,622
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		1,244,400
Oakland CA Redevelopment Successor Agency Refunding Bond Subordinated Series TE (Tax Revenue, AGM Insured)		5.00			9-1-2035		2,545,000		2,838,286
Oakland CA Redevelopment Successor Agency Refunding Bond Subordinated Series TE (Tax Revenue, AGM Insured)		5.00			9-1-2036		4,000,000		4,448,320

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Tax-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Oakland CA Unified School District Election of 2012 (GO Revenue)		5.50	%		8-1-2023	$	500,000	$	580,550
Oakland CA Unified School District Election of 2012 (GO Revenue)		6.63			8-1-2038		7,750,000		9,225,988
Oakland CA Unified School District Election of 2012 Series A (GO Revenue)		5.00			8-1-2040		3,500,000		3,900,085
Orange County CA Community Facilities District #2015-1 Esencia Village Series A (Tax Revenue)		5.25			8-15-2045		2,000,000		2,147,540
Oxnard CA School District Election of 2012 Series D (GO Revenue, AGM Insured)		5.00			8-1-2034		1,695,000		1,912,926
Pajaro Valley CA Unified School District Election of 2012 Series A (GO Revenue)		5.00			8-1-2038		1,700,000		1,895,330
Palm Springs CA Palm Springs International Airport (Airport Revenue)		6.00			7-1-2018		125,000		125,148
Palm Springs CA Palm Springs International Airport (Airport Revenue)		6.40			7-1-2023		500,000		500,655
Palo Verde CA Unified School District FlexFund Program (Education Revenue)		4.80			9-1-2027		1,352,340		1,405,189
Palomar Health Refunding Bond (Health Revenue)		5.00			11-1-2027		2,000,000		2,206,560
Palomar Health Refunding Bond (Health Revenue)		5.00			11-1-2039		2,000,000		2,091,120
Paramount CA Unified School District CAB Election of 2006 (GO Revenue) ¤		0.00			8-1-2033		2,500,000		1,269,050
Pasadena CA Old Pasadena Parking Facilities Project (Miscellaneous Revenue)		6.25			1-1-2018		195,000		199,419
Pico Rivera CA Water Authority Series A (Water & Sewer Revenue, National Insured)		5.50			5-1-2019		1,265,000		1,318,661
Pico Rivera CA Water Authority Series A (Water & Sewer Revenue)		6.25			12-1-2032		4,575,000		4,629,946
Pomona CA Unified School District Series A (GO Revenue, National Insured)		6.55			8-1-2029		1,480,000		1,894,592
Poway CA Unified School District CAB Election of 2008 Improvement District 07-1-A (GO Revenue) ¤		0.00			8-1-2024		1,800,000		1,456,776
Rancho Cucamonga CA Redevelopment Agency Rancho Redevelopment Project Area (Tax Revenue, AGM Insured)		5.00			9-1-2032		1,870,000		2,103,993
Redding CA Joint Powers Financing Authority Election System Series A (Utilities Revenue)		5.00			6-1-2032		440,000		495,202
Redwood City CA RDA CAB Redevelopment Project Area Series 2-A (Tax Revenue, Ambac Insured) ¤		0.00			7-15-2030		3,505,000		2,002,897
Rialto CA Unified School District CAB Election of 2010 Series A (GO Revenue, AGM Insured) ¤		0.00			8-1-2026		3,320,000		2,388,109
Richmond CA Joint Powers Financing Authority Civic Center Project Series A (Miscellaneous Revenue, AGC Insured)		5.88			8-1-2037		5,000,000		5,419,750
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		7,500,000		8,282,175
Riverside County CA Asset Leasing Corporation Riverside County Hospital Project (Miscellaneous Revenue, National Insured) ¤		0.00			6-1-2026		10,000,000		7,477,000
Riverside County CA Palm Desert Financing Authority Series A (Miscellaneous Revenue)		6.00			5-1-2022		4,105,000		4,368,377
Riverside County CA Southwest California Community Finance Authority (Miscellaneous Revenue)		6.38			5-1-2033		3,065,000		3,251,475
Roseville CA Natural Gas Financing Authority (Utilities Revenue)		5.00			2-15-2025		1,930,000		2,124,525
Sacramento CA Airport System AMT Senior Series B (Airport Revenue, AGM Insured)		5.75			7-1-2024		2,000,000		2,126,920
Sacramento CA Certificate of Participation Animal Care & Youth Detention Facilities (Miscellaneous Revenue, Ambac Insured)		5.00			10-1-2025		1,085,000		1,112,982
Sacramento CA City Financing Authority Series A (Miscellaneous Revenue, Ambac Insured)		5.40			11-1-2020		1,750,000		1,894,218
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		1,465,243
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		2,377,884
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		1,145,100
Sacramento CA Unified School District Election of 2012 Series C (GO Revenue, AGM Insured)		5.00			8-1-2033		2,735,000		3,115,192

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

14 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Salinas CA Economic Development Monterey County Public Building Project Series A (Industrial Development Revenue)		5.00	%		7-1-2027	$	1,750,000	$	2,017,995
San Bernardino County CA Certificate of Participation Arrowhead Project Series A (Miscellaneous Revenue)		5.50			8-1-2020		6,000,000		6,558,660
San Bernardino County CA Certificate of Participation Medical Center Financing Project (Miscellaneous Revenue, National Insured)		5.00			8-1-2028		5,815,000		5,830,642
San Bernardino County CA Community Election of 2008 Series D (GO Revenue)		5.00			8-1-2045		2,000,000		2,242,820
San Bernardino County CA Unified School District Election of 2012 Series C (GO Revenue, AGM Insured)		5.00			8-1-2040		8,000,000		8,908,160
San Buenaventura CA Public Facilities Financing Authority Series B (Water & Sewer Revenue)		5.00			7-1-2042		4,000,000		4,439,440
San Clemente CA Special Tax Community Facilities District #2006-1 (Tax Revenue)		5.00			9-1-2040		1,000,000		1,051,140
San Clemente CA Special Tax Community Facilities District #2006-1 (Tax Revenue)		5.00			9-1-2046		1,200,000		1,257,528
San Diego CA Community College Election of 2002 (GO Revenue)		5.00			8-1-2031		4,000,000		4,653,800
San Diego CA PFFA Ballpark Project Series A (Miscellaneous Revenue, Ambac Insured)		5.25			2-15-2026		4,950,000		4,977,473
San Diego CA PFFA Ballpark Project Series A (Miscellaneous Revenue, Ambac Insured)		5.25			2-15-2032		3,825,000		3,846,229
San Diego CA RDA CAB Tax Allocation Centre (Tax Revenue, AGM Insured) ¤		0.00			9-1-2023		885,000		727,337
San Diego CA RDA Centre City Sub Parking Series B (Transportation Revenue)		5.30			9-1-2020		1,060,000		1,063,477
San Diego CA RDA Naval Training Center Series A (Tax Revenue)		5.00			9-1-2025		575,000		621,023
San Diego California Community College Refunding Bond (GO Revenue)		5.00			8-1-2041		15,000,000		17,334,000
San Diego California Public Facilities Financing Refunding Bond Subordinated Series B (Water & Sewer Revenue)		5.00			8-1-2038		12,555,000		14,363,046
San Diego County CA Water Authority Refunding Bond Series B (Water & Sewer Revenue)		5.00			5-1-2037		3,750,000		4,340,063
San Francisco CA Municipal Transportation (Transportation Revenue)		5.00			3-1-2039		3,000,000		3,361,740
San Francisco City & County CA CAB Redevelopment Agency Successor Agency Mission Bay South Redevelopment Project Sub-Series D (Tax Revenue) 144A¤(i)		0.00			8-1-2023		2,000,000		1,389,100
San Francisco City & County CA CAB Redevelopment Agency Successor Agency Mission Bay South Redevelopment Project Sub-Series D (Tax Revenue) 144A¤(i)		0.00			8-1-2026		2,000,000		1,141,680
San Francisco City & County CA Certificate of Participation Multiple Capital Improvement Projects Series A (Miscellaneous Revenue)		5.20			4-1-2026		3,000,000		3,229,740
San Francisco City & County CA International Airport Second Series C (Airport Revenue)		5.00			5-1-2046		6,000,000		6,741,720
San Francisco City & County CA Redevelopment Agency Mission Bay South Redevelopment Project Series A (Tax Revenue)		5.00			8-1-2043		2,500,000		2,737,425
San Gorgonio CA Memorial Healthcare Election of 2006 Series C (GO Revenue)		7.10			8-1-2033		3,000,000		3,108,630
San Gorgonio CA Memorial Healthcare Refunding Bond (GO Revenue)		5.00			8-1-2032		1,750,000		1,937,023
San Gorgonio CA Memorial Healthcare Refunding Bond (GO Revenue)		5.50			8-1-2028		2,525,000		2,958,795
San Joaquin Delta CA Community College District Election of 2004 Series C (GO Revenue)		5.00			8-1-2033		3,195,000		3,637,220
San Joaquin Delta CA Community College District Election of 2004 Series C (GO Revenue)		5.00			8-1-2034		3,315,000		3,756,956
San Jose CA Libraries & Parks Project (GO Revenue)		5.13			9-1-2031		2,040,000		2,046,528
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		1,885,406
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		970,701
San Jose CA Unified School District CAB (Miscellaneous Revenue, AGM Insured) ¤		0.00			1-1-2021		1,205,000		1,109,215
San Jose CA Unified School District CAB (Miscellaneous Revenue, AGM Insured) ¤		0.00			1-1-2026		3,175,000		2,493,931
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		1,710,000		1,920,262

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Tax-Free Fund 15

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	$	1,473,116
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		1,529,655
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		1,049,845
Sanger CA Unified School District Refunding Bond (GO Revenue, National Insured)		5.60			8-1-2023		1,640,000		1,764,279
Santa Ana CA Community Redevelopment Merged Project Area Series A (Tax Revenue)		6.00			9-1-2022		2,000,000		2,289,960
Santa Ana CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGC Insured) ¤		0.00			8-1-2038		15,000,000		5,877,300
Santa Cruz County CA RDA Live Oak Soquel Community Improvement Project (Tax Revenue)		6.63			9-1-2029		2,100,000		2,383,668
Santa Rosa CA High School District (GO Revenue)		5.00			8-1-2024		1,005,000		1,155,087
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2028		1,000,000		1,134,580
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2032		1,500,000		1,667,925
Sierra Kings CA Health Care District (GO Revenue)		5.00			8-1-2037		1,750,000		1,903,895
Simi Valley CA Unified School District Capital Improvement Projects (Miscellaneous Revenue, Ambac Insured)		5.25			8-1-2022		1,970,000		2,139,696
Sonoma CA CDA Successor Agency Tax Allocation Sonoma Redevelopment Project (Tax Revenue, National Insured)		5.00			6-1-2033		1,325,000		1,522,253
Sonoma Valley CA Unified School District CAB Election of 2010 Series A (GO Revenue) ¤		0.00			8-1-2027		1,020,000		723,313
South Pasadena CA Unified School District Series A (GO Revenue, FGIC Insured)		5.55			11-1-2020		410,000		450,967
Southern California Public Power Authority Natural Gas Project #1 Series A (Utilities Revenue)		5.25			11-1-2025		1,000,000		1,156,660
Stockton CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2038		1,025,000		1,138,160
Sutter Butte CA Flood Control Agency (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2040		3,545,000		3,937,077
Sweetwater CA Union High School District Refunding Bond (GO Revenue)		4.00			8-1-2042		10,000,000		10,121,500
Torrance CA Certificate of Participation (Miscellaneous Revenue)		5.25			6-1-2039		5,385,000		6,124,037
Tracy CA Operating Partnership Joint Powers Authority Capital Improvement Projects (Miscellaneous Revenue, AGC Insured)		6.25			10-1-2033		1,000,000		1,075,730
Tulare CA PFFA Capital Facilities Project (Miscellaneous Revenue, AGC Insured)		5.25			4-1-2027		3,000,000		3,140,850
Tulare CA Sewer Refunding Bond (Water & Sewer Revenue, AGM Insured)		5.00			11-15-2041		1,500,000		1,678,815
Turlock CA Irrigation District Refunding Bond Subordinated First Priority (Utilities Revenue)		5.50			1-1-2041		2,000,000		2,219,940
Tustin CA Community Facilities District Special Tax #2014-1 Legacy/Standard Pacific Series A (Tax Revenue)		5.00			9-1-2040		750,000		792,623
Tustin CA Community Facilities District Special Tax #2014-1 Legacy/Standard Pacific Series A (Tax Revenue)		5.00			9-1-2045		1,000,000		1,053,110
Union City CA Community RDA (Tax Revenue, AGC Insured)		5.25			10-1-2033		8,000,000		9,018,640
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		1,399,250
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		1,119,400
University of California Regents Medical Center Series J (Health Revenue)		5.00			5-15-2033		2,265,000		2,578,114
University of California Regents Medical Center Series J (Health Revenue)		5.25			5-15-2038		10,000,000		11,458,700
University of California Series AI (Education Revenue)		5.00			5-15-2038		2,000,000		2,251,460
Vacaville CA Unified School District (Miscellaneous Revenue, AGC Insured)		6.50			12-1-2034		1,260,000		1,386,113
Vallejo CA Refunding Bond (Water & Sewer Revenue)		5.25			5-1-2031		1,000,000		1,130,150

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

16 Wells Fargo California Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Vallejo CA Unified School District Refunding Bond Series A (GO Revenue, National Insured)		5.90	%		2-1-2017	$	1,000,000	$	1,004,090
Ventura County CA PFA Series A (Miscellaneous Revenue)		5.00			11-1-2038		4,250,000		4,697,015
Walnut CA Energy Center Authority Series A (Utilities Revenue)		5.00			1-1-2034		3,115,000		3,548,733
Washington Township CA Health Care District Election of 2004 Series B (GO Revenue)		5.50			8-1-2038		1,500,000		1,718,745
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2026		1,190,000		1,337,072
West Contra Costa CA Unified School District (GO Revenue, AGM Insured)		5.25			8-1-2024		1,350,000		1,535,085
West Contra Costa CA Unified School District CAB Election of 2005 Series B (GO Revenue)		6.00			8-1-2027		1,080,000		1,414,476
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		5,357,207
Wiseburn CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2027		1,525,000		1,061,171
Yorba Linda CA RDA CAB Series A (Tax Revenue, National Insured) ¤		0.00			9-1-2019		2,010,000		1,826,507
									1,012,333,882
Colorado: 0.22%
Tender Option Bond Trust Receipts/Certificates HCFR Series 2015-XF1001 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.81			1-1-2045		2,360,000		2,360,000
Guam: 0.71%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,062,630
Guam Government Limited Section 30 Series A (Tax Revenue)		5.00			12-1-2046		1,250,000		1,367,563
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2033		1,500,000		1,640,535
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.50			7-1-2043		3,125,000		3,419,125
									7,489,853
Illinois: 0.50%
Illinois (GO Revenue, AGM Insured)		5.00			2-1-2027		5,000,000		5,294,600
Virgin Islands: 0.49%
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series A (Tobacco Revenue)		5.00			10-1-2025		1,000,000		849,560
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series A (Tobacco Revenue, AGM Insured)		5.00			10-1-2029		4,000,000		4,302,360
									5,151,920
Total Municipal Obligations (Cost $974,773,705)									1,032,630,255
	Yield					Shares
Short-Term Investments: 1.21%
Investment Companies: 1.21%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.67					12,792,756		12,800,432
Total Short-Term Investments (Cost $12,798,145)									12,800,432

Total investments in securities (Cost $987,571,850) *	99.08	%		1,045,430,687
Other assets and liabilities, net	0.92			9,682,983
Total net assets	100.00	%	$	1,055,113,670

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo California Tax-Free Fund 17

¤ 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.

(i) Illiquid 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 $987,494,495 and unrealized gains (losses) consists of:

Gross unrealized gains	$	61,473,800
Gross unrealized losses		(3,537,608	)
Net unrealized gains	$	57,936,192

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

18 Wells Fargo California Tax-Free Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $974,773,705)	$	1,032,630,255
In affiliated securities, at value (cost $12,798,145)		12,800,432
Total investments, at value (cost $987,571,850)		1,045,430,687
Receivable for investments sold		1,331,756
Receivable for Fund shares sold		3,829,207
Receivable for interest		12,897,201
Prepaid expenses and other assets		75,998
Total assets		1,063,564,849
Liabilities
Dividends payable		864,988
Payable for investments purchased		1,128,743
Payable for Fund shares redeemed		5,782,541
Management fee payable		295,104
Distribution fees payable		42,615
Administration fees payable		120,481
Accrued expenses and other liabilities		216,707
Total liabilities		8,451,179
Total net assets	$	1,055,113,670
NET ASSETS CONSIST OF
Paid-in capital	$	1,020,993,945
Undistributed net investment income		61,800
Accumulated net realized losses on investments		(23,800,912	)
Net unrealized gains on investments		57,858,837
Total net assets	$	1,055,113,670
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	469,143,721
Shares outstanding – Class A1		40,273,112
Net asset value per share – Class A		$11.65
Maximum offering price per share – Class A2		$12.20
Net assets – Class C	$	62,069,932
Shares outstanding – Class C1		5,224,797
Net asset value per share – Class C		$11.88
Net assets – Administrator Class	$	218,077,723
Shares outstanding – Administrator Class1		18,682,893
Net asset value per share – Administrator Class		$11.67
Net assets – Institutional Class	$	305,822,294
Shares outstanding – Institutional Class1		26,200,545
Net asset value per share – Institutional Class		$11.67

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2016 (unaudited) Wells Fargo California Tax-Free Fund 19

Investment income
Interest	$	21,196,348
Income from affiliated securities		26,131
Total investment income		21,222,479
Expenses
Management fee		2,231,810
Administration fees
Class A		418,834
Class B		81	1
Class C		54,829
Administrator Class		160,378
Institutional Class		101,274
Shareholder servicing fees
Class A		654,428
Class B		127	1
Class C		85,671
Administrator Class		400,455
Distribution fees
Class B		381	1
Class C		257,013
Custody and accounting fees		31,849
Professional fees		27,344
Registration fees		45,951
Shareholder report expenses		7,615
Trustees’ fees and expenses		11,686
Other fees and expenses		8,404
Total expenses		4,498,130
Less: Fee waivers and/or expense reimbursements		(530,502	)
Net expenses		3,967,628
Net investment income		17,254,851
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(15,185,774	)
Affiiliated securities		(1,486	)
Futures transactions		524,200
Net realized losses on investments		(14,663,060	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(63,194,080	)
Affiiliated securities		2,287
Net change in unrealized gains (losses) on investments		(63,191,793	)
Net realized and unrealized gains (losses) on investments		(77,854,853	)
Net decrease in net assets resulting from operations	$	(60,600,002	)

¹  For the period from July 1, 2016 to December 5, 2016. At the close of business on December 5, 2016, existing Class B shareholders were converted to Class A shareholders. Effective December 6, 2016, Class B shares are no longer offered by the Fund.

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

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

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	17,254,851					$	29,991,986
Net realized gains (losses) on investments					(14,663,060	)					1,334,393
Net change in unrealized gains (losses) on investments					(63,191,793	)					55,001,083
Net increase (decrease) in net assets resulting from operations					(60,600,002	)					86,327,462
Distributions to shareholders from
Net investment income
Class A					(7,554,291	)					(14,775,252	)
Class B					(1,071	)1					(3,113	)
Class C					(732,495	)					(1,242,347	)
Administrator Class					(4,932,316	)					(8,542,089	)
Institutional Class					(4,034,649	)					(5,429,185	)
Total distributions to shareholders					(17,254,822	)					(29,991,986	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,413,568			29,429,666			7,403,254			89,174,570
Class C		786,527			9,822,182			1,564,126			19,286,269
Administrator Class		3,169,912			38,399,026			15,429,582			186,582,017
Institutional Class		19,595,584			233,032,337			6,601,583			79,772,864
					310,683,211						374,815,720
Reinvestment of distributions
Class A		576,089			6,940,427			1,127,394			13,600,711
Class B		84	1		1,036	1		231			2,839
Class C		53,540			657,294			90,135			1,109,354
Administrator Class		393,453			4,762,125			634,427			7,682,854
Institutional Class		63,369			752,391			40,832			495,242
					13,113,273						22,891,000
Payment for shares redeemed
Class A		(5,129,090	)		(61,020,261	)		(6,028,808	)		(72,871,296	)
Class B		(9,509	)1		(111,781	)1		(4,785	)		(58,475	)
Class C		(845,099	)		(10,271,738	)		(650,067	)		(7,959,797	)
Administrator Class		(12,450,327	)		(146,787,249	)		(6,300,064	)		(76,074,940	)
Institutional Class		(8,936,067	)		(104,666,575	)		(3,813,661	)		(46,003,940	)
					(322,857,604	)					(202,968,448	)
Net increase in net assets resulting from capital share transactions					938,880						194,738,272
Total increase (decrease) in net assets					(76,915,944	)					251,073,748
Net assets
Beginning of period					1,132,029,614						880,955,866
End of period				$	1,055,113,670					$	1,132,029,614
Undistributed net investment income				$	61,800					$	61,771

¹  For the period from July 1, 2016 to December 5, 2016. At the close of business on December 5, 2016, existing Class B shareholders were converted to Class A shareholders. Effective December 6, 2016, Class B shares are no longer offered by the Fund.

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

Financial highlights Wells Fargo California Tax-Free Fund 21

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.45			$11.79			$11.73			$11.21			$11.37			$10.53
Net investment income		0.18			0.36			0.38			0.42			0.40			0.45
Net realized and unrealized gains (losses) on investments		(0.80	)		0.66			0.06			0.52			(0.16	)		0.84
Total from investment operations		(0.62	)		1.02			0.44			0.94			0.24			1.29
Distributions to shareholders from
Net investment income		(0.18	)		(0.36	)		(0.38	)		(0.42	)		(0.40	)		(0.45	)
Net asset value, end of period		$11.65			$12.45			$11.79			$11.73			$11.21			$11.37
Total return1		(5.05	)%		8.77	%		3.74	%		8.58	%		2.06	%		12.46	%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.82	%		0.83	%		0.83	%		0.83	%		0.83	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		2.89	%		2.96	%		3.17	%		3.71	%		3.46	%		4.08	%
Supplemental data
Portfolio turnover rate		33	%		17	%		30	%		41	%		23	%		41	%
Net assets, end of period (000s omitted)		$469,144			$528,238			$470,368			$466,411			$506,770			$512,957

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

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

22 Wells Fargo California Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.70			$12.02			$11.96			$11.43			$11.59			$10.74
Net investment income		0.13			0.27			0.29			0.34			0.32			0.38
Net realized and unrealized gains (losses) on investments		(0.82	)		0.68			0.06			0.53			(0.16	)		0.85
Total from investment operations		(0.69	)		0.95			0.35			0.87			0.16			1.23
Distributions to shareholders from
Net investment income		(0.13	)		(0.27	)		(0.29	)		(0.34	)		(0.32	)		(0.38	)
Net asset value, end of period		$11.88			$12.70			$12.02			$11.96			$11.43			$11.59
Total return1		(5.44	)%		8.02	%		2.96	%		7.77	%		1.33	%		11.56	%
Ratios to average net assets (annualized)
Gross expenses		1.57	%		1.57	%		1.58	%		1.58	%		1.58	%		1.58	%
Net expenses		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Net investment income		2.14	%		2.21	%		2.42	%		2.96	%		2.70	%		3.31	%
Supplemental data
Portfolio turnover rate		33	%		17	%		30	%		41	%		23	%		41	%
Net assets, end of period (000s omitted)		$62,070			$66,427			$50,787			$45,934			$46,050			$44,920

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

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

Financial highlights Wells Fargo California Tax-Free Fund 23

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.48			$11.81			$11.75			$11.23			$11.39			$10.55
Net investment income		0.19			0.38			0.40			0.44			0.43			0.48
Net realized and unrealized gains (losses) on investments		(0.81	)		0.67			0.06			0.52			(0.16	)		0.84
Total from investment operations		(0.62	)		1.05			0.46			0.96			0.27			1.32
Distributions to shareholders from
Net investment income		(0.19	)		(0.38	)		(0.40	)		(0.44	)		(0.43	)		(0.48	)
Net asset value, end of period		$11.67			$12.48			$11.81			$11.75			$11.23			$11.39
Total return1		(5.02	)%		9.06	%		3.95	%		8.79	%		2.27	%		12.67	%
Ratios to average net assets (annualized)
Gross expenses		0.76	%		0.76	%		0.77	%		0.77	%		0.77	%		0.76	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		3.08	%		3.16	%		3.39	%		3.91	%		3.65	%		4.26	%
Supplemental data
Portfolio turnover rate		33	%		17	%		30	%		41	%		23	%		41	%
Net assets, end of period (000s omitted)		$218,078			$344,090			$210,265			$273,026			$231,383			$179,670

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

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

24 Wells Fargo California Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			20151
Net asset value, beginning of period		$12.48			$11.81			$11.99
Net investment income		0.20			0.39			0.27
Net realized and unrealized gains (losses) on investments		(0.81	)		0.67			(0.18	)
Total from investment operations		(0.61	)		1.06			0.09
Distributions to shareholders from
Net investment income		(0.20	)		(0.39	)		(0.27	)
Net asset value, end of period		$11.67			$12.48			$11.81
Total return2		(4.98	)%		9.14	%		0.72	%
Ratios to average net assets (annualized)
Gross expenses		0.49	%		0.49	%		0.50	%
Net expenses		0.48	%		0.48	%		0.48	%
Net investment income		3.19	%		3.24	%		3.35	%
Supplemental data
Portfolio turnover rate		33	%		17	%		30	%
Net assets, end of period (000s omitted)		$305,822			$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.

Notes to financial statements (unaudited) Wells Fargo California Tax-Free Fund 25

1. ORGANIZATION

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

Effective December 6, 2016, Class B shares of the Fund are no longer offered. Information for Class B shares reflected in the financial statements represents activity through December 5, 2016.

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.

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.

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

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

Security transactions and income recognition

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

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
$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:

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

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

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

Notes to financial statements (unaudited) Wells Fargo California Tax-Free Fund 27

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	1,032,630,255	$	0	$	1,032,630,255
Short-term investments
Investment companies		12,800,432		0		0		12,800,432
Total assets	$	12,800,432	$	1,032,630,255	$	0	$	1,045,430,687

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 2016, the management fee was equivalent to an annual rate of 0.38% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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, 2017 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 C shares, 0.55% for Administrator Class shares, and 0.48% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $6,340 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,153 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fees

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the six months ended December 31, 2016, Funds Distributor received $12,109 from the sale of Class A shares and $10,000 in contingent deferred sales charges from redemptions of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $367,581,894 and $342,129,439, 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 six months ended December 31, 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 December 31, 2016, the Fund did not have any open futures contracts. The Fund had an average notional amount of $5,230,694 in short futures contracts during the six months ended December 31, 2016.

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

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.

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

9. INDEMNIFICATION

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

10. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

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

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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

32 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo California Tax-Free Fund 33

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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300477 02-17 SA249/SAR249 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo Colorado Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	18
Other information	22
List of abbreviations	25

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Colorado Tax-Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 J. Goode

Adrian Van Poppel

Average annual total returns (%) as of December 31, 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		(4.44	)		2.90		3.32		0.07			3.86		3.79		0.93		0.85
Class C (WCOTX)	3-31-2008		(1.68	)		3.08		3.01		(0.68	)		3.08		3.01		1.68		1.60
Administrator Class (NCOTX)	8-23-1993		–			–		–		0.32			4.12		4.05		0.87		0.60
Institutional Class (WCITX)	10-31-2016		–			–		–		0.33			4.12		4.05		0.60		0.52
Bloomberg Barclays Municipal Bond Index4	–		–			–		–		0.25			3.28		4.25		–		–
Bloomberg Barclays Colorado Municipal Bond Index5	–		–			–		–		0.87			4.16		4.72		–		–

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

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

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

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

Effective maturity distribution as of December 31, 2016⁶

Credit quality as of December 31, 2016⁷

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 the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and is not adjusted to reflect Institutional Class expenses. If these expenses had been included, returns for 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, 2017, 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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 Bloomberg Barclays Colorado Municipal Bond Index (formerly known as Barclays Colorado Municipal Bond Index) is the Colorado component of the Bloomberg Barclays Municipal Bond Index. You cannot invest directly in an index.

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 Colorado Tax-Free Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	952.39	$	4.17		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	948.83	$	7.84		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Administrator Class
Actual	$	1,000.00	$	953.59	$	2.95		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	953.72	$	2.55		0.52	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.52	$	2.64		0.52	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Colorado Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 96.21%
Arizona: 1.01%
Phoenix AZ IDA Rowan University Project (Education Revenue)		5.25	%		6-1-2034	$	1,000,000	$	1,102,280
California: 2.19%
Inglewood CA Unified School District (Tax Revenue, AGM Insured)		5.25			10-15-2021		1,000,000		1,137,160
Norco CA Redevelopment Agency Project Area No. 1 (Tax Revenue)		6.00			3-1-2036		1,120,000		1,251,096
									2,388,256
Colorado: 88.64%
Adams County CO 12 Five Star Schools Certificate of Participation Refunding Bonds (Miscellaneous Revenue)		5.00			12-15-2027		1,200,000		1,441,692
Adams County CO Certificate of Participation Refunding Bonds (Miscellaneous Revenue)		5.00			12-1-2034		500,000		562,730
Adams County CO North Range Metropolitan District No. 1 (GO Revenue)		5.00			12-1-2038		1,000,000		1,091,610
Adams County CO Rangeview Library District Certificate of Participation Series 2015 (Miscellaneous Revenue, AGM Insured)		5.00			12-15-2029		1,000,000		1,153,720
Arapahoe County CO Copperleaf Metropolitan District (GO Revenue)		5.75			12-1-2045		500,000		508,930
Arapahoe County CO Water & Wastewater Authority (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2033		500,000		514,380
Arvada CO Jefferson Center Metropolitan District No. 1 (Tax Revenue)		4.75			12-1-2026		1,000,000		982,440
Arvada CO Leyden Rock Metropolitan District No. 10 (GO Revenue)		5.00			12-1-2045		650,000		600,626
Aspen Valley Hospital District Refunding Bonds Series 2012 (Health Revenue)		5.00			10-15-2033		600,000		644,826
Aurora CO Certificate of Participation Refunding Bonds Series 2009A (Miscellaneous Revenue)		5.00			12-1-2027		2,000,000		2,181,100
Aurora CO E-470 Public Highway Authority Colorado CAB Series A (Miscellaneous Revenue, National Insured) ¤		0.00			9-1-2034		4,000,000		1,932,440
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		1,124,770
Aurora CO First Lien Water Improvement Bonds Series 2007A (Water & Sewer Revenue, Ambac Insured)		5.00			8-1-2039		1,000,000		1,023,830
Broomfield CO Great Western Park Metropolitan District No. 2 (GO Revenue)		5.00			12-1-2046		825,000		766,351
Canon City CO Finance Authority Certificate of Participation Series 2008 (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2032		150,000		157,803
Centennial CO Southglenn Metropolitan District (GO Revenue)		5.00			12-1-2030		750,000		760,598
Colorado Board of Governors State University System Enterprise Bonds Series 2013C (Education Revenue)		5.25			3-1-2033		725,000		827,617
Colorado Board of Governors State University System Enterprise Bonds Series E1 (Education Revenue)		5.00			3-1-2040		2,000,000		2,243,160
Colorado ECFA Alexander Dawson School LLC Project (Education Revenue)		5.00			2-15-2040		1,000,000		1,059,200
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.25			12-1-2028		1,000,000		1,130,100
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.38			12-1-2028		1,000,000		1,132,460
Colorado ECFA Charter School Aspen Ridge School Project Series 2015A (Education Revenue) 144A		4.13			7-1-2026		625,000		611,294
Colorado ECFA Charter School Banning Lewis Ranch Academy Project Series A (Education Revenue)		6.00			12-15-2037		500,000		455,640
Colorado ECFA Charter School Ben Franklin Academy Project (Education Revenue)		5.00			7-1-2036		750,000		804,728
Colorado ECFA Charter School Collegiate Project (Education Revenue, Syncora Guarantee Incorporated Insured)		5.00			6-15-2019		660,000		662,013
Colorado ECFA Charter School Collegiate Project (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25			6-15-2024		1,140,000		1,143,545

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

8 Wells Fargo Colorado Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Colorado ECFA Charter School District Montessori Charter School Project (Education Revenue)		5.00	%		7-15-2037	$	1,150,000	$	1,204,890
Colorado ECFA Charter School Pinnacle High School Project (Education Revenue)		5.13			12-1-2039		500,000		511,185
Colorado ECFA Charter School Refunding and Improvement Bonds Flagstaff Academy Project 2015 (Education Revenue)		5.00			8-1-2036		335,000		362,001
Colorado ECFA Charter School Refunding and Improvement Bonds Frontier Academy Project 2015 (Education Revenue)		5.00			6-1-2036		540,000		582,898
Colorado ECFA Charter School Refunding and Improvement Bonds Skyview Academy Project 2014 (Education Revenue) 144A		4.13			7-1-2024		500,000		499,040
Colorado ECFA Charter School Refunding and Improvement Bonds University Laboratory School Project 2015 (Education Revenue) 144A		5.00			12-15-2028		600,000		610,392
Colorado ECFA Charter School Refunding and Improvement Bonds University Laboratory School Project 2015 (Education Revenue) 144A		4.00			12-15-2025		535,000		518,517
Colorado ECFA Cheyenne Mountain Charter School Project Series A (Education Revenue)		5.25			6-15-2029		590,000		601,405
Colorado ECFA Refunding Bonds Regis University Project (Education Revenue)		5.00			10-1-2034		2,000,000		2,149,420
Colorado ECFA Refunding Bonds The University Corporation for Atmosphere Research Project Series 2010 (Education Revenue)		5.00			9-1-2032		1,265,000		1,366,251
Colorado ECFA Refunding Bonds The University Corporation for Atmosphere Research Project Series B (Education Revenue)		5.00			9-1-2030		1,770,000		1,969,815
Colorado ECFA Student Housing Campus Village Apartment Project (Miscellaneous Revenue)		5.50			6-1-2033		1,735,000		1,814,047
Colorado ECFA Twin Peaks Charter Academy (Education Revenue)		6.75			11-15-2028		750,000		825,713
Colorado EDFA Charter School Refunding and Improvement Bonds Eagle Ridge Academy Project (Education Revenue) 144A		5.00			11-1-2036		1,000,000		968,150
Colorado Fort Lewis College Board of Trustees Series B (Education Revenue)		5.00			10-1-2036		1,735,000		1,972,955
Colorado Health Facilities Authority Adventist Health Sunbelt Series A (Health Revenue)		4.00			11-15-2046		1,000,000		1,006,190
Colorado Health Facilities Authority Adventist Health Sunbelt Series C (Health Revenue) ±		5.00			11-15-2036		500,000		591,475
Colorado Health Facilities Authority Catholic Health Initiatives Series D-1 (Health Revenue)		6.25			10-1-2033		1,000,000		1,071,910
Colorado Health Facilities Authority Children’s Hospital Project Series A (Health Revenue)		5.00			12-1-2044		2,000,000		2,188,480
Colorado Health Facilities Authority Covenant Retirement Communities Series 2012C (Health Revenue)		5.00			12-1-2022		1,000,000		1,113,390
Colorado Health Facilities Authority Evangelical Lutheran Good Samaritan Society Series 2015A (Health Revenue)		5.00			6-1-2040		1,000,000		1,018,240
Colorado Health Facilities Authority Sisters of Charity Leavenworth Health System Series 2013A (Health Revenue)		5.50			1-1-2035		1,000,000		1,143,270
Colorado Health Facilities Authority Sunny Vista Living Center Series A (Health Revenue) 144A		5.00			12-1-2025		670,000		656,995
Colorado HFA Waste Management Incorporated Project (Miscellaneous Revenue)		5.70			7-1-2018		500,000		530,860
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		1,200,000		1,266,012
Colorado International Center Metropolitan District No. 3 Refunding Bonds (GO Revenue)		4.63			12-1-2031		635,000		590,848
Colorado Park 70 Metropolitan District Refunding and Improvement Bonds (GO Revenue)		5.00			12-1-2036		1,000,000		1,054,490
Colorado Park Creek Metropolitan District Refunding Bonds Series A (Tax Revenue)		5.00			12-1-2045		500,000		531,015
Colorado Parker Homestead Metropolitan District Refunding and Improvement Bonds (GO Revenue)		5.63			12-1-2044		1,000,000		1,030,530

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Colorado Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal			Value
Colorado (continued)
Colorado Regional Transportation District Certificate of Participation Series 2014A (Miscellaneous Revenue)		5.00	%		6-1-2044	$	2,000,000	��	$	2,181,900
Colorado Regional Transportation District Certificate of Participation Series 2010A (Miscellaneous Revenue)		5.38			6-1-2031		2,500,000			2,737,975
Colorado Regional Transportation District Certificate of Participation Transit Vehicles Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2022		1,000,000			1,036,520
Colorado Regional Transportation District Fastracks Project Revenue Bonds Series 2013A (Tax Revenue)		5.00			11-1-2031		1,000,000			1,139,020
Colorado Solaris Metropolitan District No. 3 Refunding Bonds (GO Revenue)		5.00			12-1-2046		500,000			486,810
Colorado Springs CO Utilities System Improvement Bonds Series 2013 B-2 (Utilities Revenue)		5.00			11-15-2038		3,000,000			3,390,030
Colorado Thompson Crossing Metropolitan District No. 2 Series B (GO Revenue, AGM Insured)		5.00			12-1-2046		820,000			894,292
Colorado Western State University Auxiliary Facilities (Education Revenue)		5.00			5-15-2027		1,100,000			1,298,451
Commerce City CO Sales & Use Tax Bonds Series 2014 (Tax Revenue, AGM Insured)		5.00			8-1-2044		1,250,000			1,378,313
Denver CO City & County Department of Aviation Airport System Bonds Series 2012B (Airport Revenue)		5.00			11-15-2030		2,000,000			2,244,840
Denver CO City & County Excise Tax Series A (Tax Revenue, AGC Insured)		6.00			9-1-2021		2,000,000			2,236,800
Denver CO School District No. 1 Certificate of Participation Series B (Miscellaneous Revenue)		5.00			12-15-2035		1,000,000			1,125,950
Denver CO School District No. 1 Certificate of Participation Series B (Miscellaneous Revenue)		5.00			12-15-2045		1,200,000			1,332,504
Douglas County CO Stonegate Village Metropolitan District (Water & Sewer Revenue, AGM Insured)		5.00			12-1-2045		525,000			576,471
East Cherry Creek Valley CO Water and Sanitation District (Water & Sewer Revenue)		5.00			11-15-2032		750,000			860,423
El Paso County CO Lorson Ranch Metropolitan District No. 2 (GO Revenue)		5.00			12-1-2041		855,000			920,057
El Paso County CO School District No. 49 (Miscellaneous Revenue, National Insured)		5.00			12-15-2027		1,430,000			1,484,569
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		1,330,000			1,357,451
Fremont County CO Finance Corporation Certificate of Participation Series 2013 (Miscellaneous Revenue)		5.25			12-15-2038		1,265,000			1,398,888
Garfield County CO Public Library District Lease Purchase Financing Program (Miscellaneous Revenue)		5.00			12-1-2026		715,000			773,966
Longmont CO Certificate of Participation Series 2014 (Miscellaneous Revenue)		5.00			12-1-2034		1,000,000			1,110,250
Park Meadows CO Business Improvement District (Tax Revenue)		5.00			12-1-2017		50,000			50,921
Platte Valley CO Fire Protection District (Miscellaneous Revenue)		5.00			12-1-2036		325,000			348,212
Regents of the University of Colorado Certificate of Participation Series 2013A (Education Revenue)		5.00			11-1-2028		2,000,000			2,278,820
Thornton CO Development Authority East 144th Avenue and I-25 Project Series B (Tax Revenue)		5.00			12-1-2034		1,375,000			1,527,592
University of Colorado Enterprise System Series A (Education Revenue)		5.00			6-1-2026		1,000,000			1,136,940
University of Colorado Hospital Authority Series A (Health Revenue)		6.00			11-15-2029		2,000,000			2,208,420
Weld County CO Eaton Area Park and Recreation District Series 2015 (GO Revenue)		5.50			12-1-2038		1,075,000			1,104,530
Westminster CO Certificate of Participation Series 2015A (Miscellaneous Revenue)		5.00			12-1-2035		2,000,000			2,246,020
Wheatlands CO (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2030		500,000			565,200
										96,700,122
Guam: 1.48%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000			1,062,630
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.75			12-1-2034		500,000			558,035
										1,620,665

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

10 Wells Fargo Colorado Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

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	$	250,228
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00			6-1-2030		200,000		210,248
									460,476
Pennsylvania: 1.48%
East Hempfield Township PA IDA Student Services Incorporated Student Housing Project of Millersville University (Education Revenue)		5.00			7-1-2029		500,000		529,805
Pennsylvania Higher Education Facilities Authority Indiana University Student Housing Project Series A (Education Revenue)		5.00			7-1-2032		1,000,000		1,087,530
									1,617,335
Virgin Islands: 0.99%
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series A (Tobacco Revenue, AGM Insured)		5.00			10-1-2029		1,000,000		1,075,590
Total Municipal Obligations (Cost $102,116,020)									104,964,724
	Yield					Shares
Short-Term Investments: 0.26%
Investment Companies: 0.26%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.67					284,383		284,553
Total Short-Term Investments (Cost $284,490)									284,553

Total investments in securities (Cost $102,400,510) *	96.47	%		105,249,277
Other assets and liabilities, net	3.53			3,848,418
Total net assets	100.00	%	$	109,097,695

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

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

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

(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 $102,400,308 and unrealized gains (losses) consists of:

Gross unrealized gains	$	4,318,093
Gross unrealized losses		(1,469,124	)
Net unrealized gains	$	2,848,969

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo Colorado Tax-Free Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $102,116,020)	$	104,964,724
In affiliated securities, at value (cost $284,490)		284,553
Total investments, at value (cost $102,400,510)		105,249,277
Receivable for investments sold		3,029,438
Receivable for Fund shares sold		291,151
Receivable for interest		875,982
Prepaid expenses and other assets		31,596
Total assets		109,477,444
Liabilities
Dividends payable		136,141
Payable for Fund shares redeemed		98,530
Management fee payable		13,023
Distribution fee payable		6,057
Administration fees payable		12,664
Shareholder report expenses payable		46,912
Shareholder servicing fees payable		23,613
Professional fees payable		35,610
Accrued expenses and other liabilities		7,199
Total liabilities		379,749
Total net assets	$	109,097,695
NET ASSETS CONSIST OF
Paid-in capital	$	107,573,957
Undistributed net investment income		298,074
Accumulated net realized losses on investments		(1,623,103	)
Net unrealized gains on investments		2,848,767
Total net assets	$	109,097,695
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	39,382,085
Shares outstanding – Class A1		3,649,818
Net asset value per share – Class A		$10.79
Maximum offering price per share – Class A2		$11.30
Net assets – Class C	$	8,940,179
Shares outstanding – Class C1		827,768
Net asset value per share – Class C		$10.80
Net assets – Administrator Class	$	52,139,622
Shares outstanding – Administrator Class1		4,832,205
Net asset value per share – Administrator Class		$10.79
Net assets – Institutional Class	$	8,635,809
Shares outstanding – Institutional Class1		800,247
Net asset value per share – Institutional Class		$10.79

¹  The Fund has an unlimited number of authorized shares.

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

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

12 Wells Fargo Colorado Tax-Free Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Interest	$	2,275,401
Income from affiliated securities		2,742
Total investment income		2,278,143
Expenses
Management fee		239,725
Administration fees
Class A		34,241
Class C		7,452
Administrator Class		32,913
Institutional Class		768	1
Shareholder servicing fees
Class A		53,502
Class C		11,644
Administrator Class		82,061
Distribution fee
Class C		34,932
Custody and accounting fees		5,856
Professional fees		40,669
Registration fees		10,980
Shareholder report expenses		51,505
Trustees’ fees and expenses		12,730
Other fees and expenses		3,380
Total expenses		622,358
Less: Fee waivers and/or expense reimbursements		(163,461	)
Net expenses		458,897
Net investment income		1,819,246
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(150,046	)
Affiliated securities		30
Net realized gains (losses) on investments		(150,016	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(7,401,128	)
Affiliated securities		63
Net change in unrealized gains (losses) on investments		(7,401,065	)
Net realized and unrealized gains (losses) on investments		(7,551,081	)
Net decrease in net assets resulting from operations	$	(5,731,835	)

¹  For the period from October 31, 2016 (commencement of class operations) to December 31, 2016

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

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

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	1,819,246					$	3,085,095
Net realized losses on investments					(150,016	)					(27,079	)
Net change in unrealized gains (losses) on investments					(7,401,065	)					5,358,174
Net increase (decrease) in net assets resulting from operations					(5,731,835	)					8,416,190
Distributions to shareholders from
Net investment income
Class A					(631,673	)					(1,095,590	)
Class C					(102,449	)					(124,324	)
Administrator Class					(1,051,844	)					(1,865,181	)
Institutional Class					(33,278	)1					N/A
Total distributions to shareholders					(1,819,244	)					(3,085,095	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		470,516			5,315,535			696,674			7,784,831
Class C		174,810			1,975,652			422,886			4,750,010
Administrator Class		815,456			9,155,252			1,447,561			16,128,508
Institutional Class		853,214	1		9,226,997	1		N/A			N/A
					25,673,436						28,663,349
Reinvestment of distributions
Class A		54,553			607,486			95,642			1,066,603
Class C		8,642			96,225			10,332			115,562
Administrator Class		33,777			377,111			58,589			653,646
Institutional Class		2,939	1		31,651	1		N/A			N/A
					1,112,473						1,835,811
Payment for shares redeemed
Class A		(470,921	)		(5,197,001	)		(285,488	)		(3,174,098	)
Class C		(94,537	)		(1,049,336	)		(76,234	)		(855,123	)
Administrator Class		(1,695,037	)		(18,420,994	)		(618,076	)		(6,860,160	)
Institutional Class		(55,906	)1		(598,919	)1		N/A			N/A
					(25,266,250	)					(10,889,381	)
Net increase in net assets resulting from capital share transactions					1,519,659						19,609,779
Total increase (decrease) in net assets					(6,031,420	)					24,940,874
Net assets
Beginning of period					115,129,115						90,188,241
End of period				$	109,097,695					$	115,129,115
Undistributed net investment income				$	298,074					$	298,072

¹  For the period from October 31, 2016 (commencement of class operations) to December 31, 2016

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

14 Wells Fargo Colorado Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.50			$10.92			$10.85			$10.46			$10.72			$10.15
Net investment income		0.17			0.34	1		0.34	1		0.35	1		0.34			0.38
Net realized and unrealized gains (losses) on investments		(0.71	)		0.58			0.07			0.39			(0.26	)		0.57
Total from investment operations		(0.54	)		0.92			0.41			0.74			0.08			0.95
Distributions to shareholders from
Net investment income		(0.17	)		(0.34	)		(0.34	)		(0.35	)		(0.34	)		(0.38	)
Net asset value, end of period		$10.79			$11.50			$10.92			$10.85			$10.46			$10.72
Total return2		(4.76	)%		8.53	%		3.82	%		7.26	%		0.65	%		9.51	%
Ratios to average net assets (annualized)
Gross expenses		1.02	%		0.93	%		0.93	%		0.94	%		0.91	%		0.91	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		2.95	%		3.02	%		3.12	%		3.35	%		3.10	%		3.64	%
Supplemental data
Portfolio turnover rate		13	%		13	%		23	%		33	%		36	%		41	%
Net assets, end of period (000s omitted)		$39,382			$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. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo Colorado Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.51			$10.93			$10.86			$10.47			$10.73			$10.16
Net investment income		0.13			0.25			0.26			0.28			0.26			0.30
Net realized and unrealized gains (losses) on investments		(0.71	)		0.58			0.07			0.38			(0.26	)		0.57
Total from investment operations		(0.58	)		0.83			0.33			0.66			0.00			0.87
Distributions to shareholders from
Net investment income		(0.13	)		(0.25	)		(0.26	)		(0.27	)		(0.26	)		(0.30	)
Net asset value, end of period		$10.80			$11.51			$10.93			$10.86			$10.47			$10.73
Total return1		(5.12	)%		7.71	%		3.05	%		6.46	%		(0.10	)%		8.69	%
Ratios to average net assets (annualized)
Gross expenses		1.77	%		1.68	%		1.68	%		1.69	%		1.67	%		1.66	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.20	%		2.26	%		2.35	%		2.60	%		2.34	%		2.89	%
Supplemental data
Portfolio turnover rate		13	%		13	%		23	%		33	%		36	%		41	%
Net assets, end of period (000s omitted)		$8,940			$8,503			$4,173			$3,689			$4,460			$4,012

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

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

16 Wells Fargo Colorado Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.50			$10.92			$10.85			$10.46			$10.72			$10.15
Net investment income		0.18	1		0.36			0.37			0.38			0.36			0.41
Net realized and unrealized gains (losses) on investments		(0.71	)		0.58			0.07			0.39			(0.26	)		0.57
Total from investment operations		(0.53	)		0.94			0.44			0.77			0.10			0.98
Distributions to shareholders from
Net investment income		(0.18	)		(0.36	)		(0.37	)		(0.38	)		(0.36	)		(0.41	)
Net asset value, end of period		$10.79			$11.50			$10.92			$10.85			$10.46			$10.72
Total return2		(4.64	)%		8.80	%		4.08	%		7.53	%		0.90	%		9.78	%
Ratios to average net assets (annualized)
Gross expenses		0.96	%		0.87	%		0.87	%		0.88	%		0.86	%		0.84	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.20	%		3.27	%		3.36	%		3.60	%		3.34	%		3.89	%
Supplemental data
Portfolio turnover rate		13	%		13	%		23	%		33	%		36	%		41	%
Net assets, end of period (000s omitted)		$52,140			$65,285			$52,294			$44,272			$49,549			$43,876

¹  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Colorado Tax-Free Fund 17

(For a share outstanding throughout the period)

	Period ended December 31, 20161 (unaudited)
INSTITUTIONAL CLASS
Net asset value, beginning of period		$11.19
Net investment income		0.06
Net realized and unrealized gains (losses) on investments		(0.40	)
Total from investment operations		(0.34	)
Distributions to shareholders from
Net investment income		(0.06	)
Net asset value, end of period		$10.79
Total return2		(3.01	)%
Ratios to average net assets (annualized)
Gross expenses		0.70	%
Net expenses		0.52	%
Net investment income		3.47	%
Supplemental data
Portfolio turnover rate		13	%
Net assets, end of period (000s omitted)		$8,636

¹  For the period from October 31, 2016 (commencement of class operations) to December 31, 2016

²  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 Colorado Tax-Free Fund Notes to financial statements (unaudited)

1. ORGANIZATION

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

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 $37,825 in long-term losses which were recognized on the first day of the current fiscal year.

Class allocations

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

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

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

∎ 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 Colorado Tax-Free Fund Notes to financial statements (unaudited)

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	104,964,724	$	0	$	104,964,724
Short-term investments
Investment companies		284,553		0		0		284,553
Total assets	$	284,553	$	104,964,724	$	0	$	105,249,277

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 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
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, 2017 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, 0.60% for Administrator Class shares, and 0.52% 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $7 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,035 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

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

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $6,653 from the sale of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $16,072,628 and $14,405,041, 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 $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

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

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

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

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

24 Wells Fargo 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo Colorado Tax-Free Fund 25

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300478 02-17 SA250/SAR250 12-16

Semi-Annual Report

December 31, 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	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	22
Other information	27
List of abbreviations	30

The views expressed and any forward-looking statements are as of December 31, 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)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo High Yield Municipal Bond Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(4.89	)		3.17		(0.39	)		4.38		1.08		0.86
Class C (WHYCX)	1-31-2013		(2.09	)		3.61		(1.13	)		3.61		1.83		1.61
Administrator Class (WHYDX)	1-31-2013		–			–		(0.29	)		4.49		1.02		0.76
Institutional Class (WHYIX)	1-31-2013		–			–		(0.14	)		4.64		0.75		0.61
Bloomberg Barclays Municipal Bond Index3	–		–			–		0.25			2.37		–		–
Bloomberg Barclays High Yield Municipal Bond Index4	–		–			–		2.99			2.83		–		–

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

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

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

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

Please see footnotes on page 5.

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

Effective maturity distribution as of December 31, 2016⁵

Credit quality as of December 31, 2016⁶

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, 2017, 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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 Bloomberg Barclays High Yield Municipal Bond Index (formerly known as 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 prefunded bonds; however, historically the index has been composed of mostly revenue bonds. You cannot invest directly in an index.

⁵  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  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 Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical

examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	949.44	$	4.17		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	945.83	$	7.83		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Administrator Class
Actual	$	1,000.00	$	949.04	$	3.67		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.37	$	3.81		0.75	%
Institutional Class
Actual	$	1,000.00	$	950.63	$	2.94		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo High Yield Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.53%
Alabama: 1.21%
Alabama State University General Tuition and Fee (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25	%		8-1-2032	$	1,000,000	$	952,890
Jefferson County AL Warrants CAB Senior Lien Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2027		920,000		584,191
									1,537,081
Arizona: 2.37%
Florence AZ IDA Legacy Traditional School Project Queen Creek & Casa Grande Campuses (Education Revenue)		5.00			7-1-2023		250,000		259,405
Maricopa County AZ IDA Senior Living Facility Series 2016 (Health Revenue) 144A		6.00			1-1-2048		1,000,000		914,750
Phoenix AZ IDA Great Hearts Academies Project (Education Revenue)		5.20			7-1-2022		160,000		166,688
Phoenix AZ IDA Legacy Traditional Schools Project Series A (Education Revenue) 144A		6.50			7-1-2034		500,000		556,685
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		500,000		505,505
Pima County AZ IDA Refunding Bond Desert Heights Charter School Facility (Education Revenue)		6.00			5-1-2024		580,000		613,385
									3,016,418
California: 6.22%
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		500,000		547,115
California CDA Baptist University Series B (Education Revenue) 144A		5.75			11-1-2017		100,000		101,427
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		250,000		274,200
California School Finance Authority View Park Elementary & Middle Schools Series A (Education Revenue)		5.88			10-1-2044		1,000,000		1,042,850
California Statewide CDA Loma Linda University Medical Center Refunding Bond Series A (Health Revenue)		5.25			12-1-2044		1,000,000		1,026,000
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		1,000,330
California Student Education Loan Marketing Corporation Series IV-D1 (Education Revenue)		5.88			1-1-2018		500,000		498,010
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		4.75			8-1-2019		225,000		234,959
Compton CA Community College RDA Project 2nd Lien Series A (Tax Revenue)		5.00			8-1-2020		100,000		106,037
Compton CA PFA Refunding Bond (Miscellaneous Revenue) 144A		4.50			9-1-2032		2,585,000		2,509,260
San Francisco City & County CA CAB Redevelopment Agency Successor Agency Mission Bay South Redevelopment Project Sub-Series D (Tax Revenue) 144A¤(i)		0.00			8-1-2026		1,000,000		570,840
									7,911,028
Colorado: 6.75%
Arapahoe County CO Copperleaf Metropolitan District #2 (GO Revenue)		5.75			12-1-2045		500,000		508,930
Arvada CO Jefferson Center Metropolitan District #10 (Tax Revenue)		4.75			12-1-2026		1,280,000		1,257,523
Arvada CO Leyden Rock Metropolitan District #10 (GO Revenue)		5.00			12-1-2045		600,000		554,424
Broomfield CO Great Western Park Metropolitan District #2 (GO Revenue)		5.00			12-1-2046		1,000,000		928,910
Centennial CO Southglenn Metropolitan District (GO Revenue)		3.00			12-1-2021		960,000		918,816
Centennial CO Southglenn Metropolitan District (GO Revenue)		5.00			12-1-2030		785,000		796,092
Colorado High Performance Transportation Enterprise U.S. 36 and I-25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		500,000		527,505
Eaton CO Area Park & Recreation District (GO Revenue)		5.00			12-1-2023		810,000		836,933
Eaton CO Area Park & Recreation District (GO Revenue)		5.50			12-1-2030		475,000		495,515

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

8 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50	%		11-1-2029	$	1,725,000	$	1,760,604
									8,585,252
Delaware: 0.78%
Delaware EDA Odyssey Charter School Incorporated Project Series A (Education Revenue) 144A		7.00			9-1-2045		1,000,000		997,410
District of Columbia: 0.35%
District of Columbia Tobacco Settlement Financing Corporation (Tobacco Revenue)		6.75			5-15-2040		435,000		449,472
Florida: 1.90%
Florida Development Finance Corporation Educational Facilities Renaissance Charter School Project Series A (Education Revenue)		8.50			6-15-2044		250,000		286,210
Holmes County FL Hospital Corporation Doctors Memorial Hospital Project (Health Revenue)		6.00			11-1-2038		250,000		247,575
Miami-Dade County FL IDA Youth Co-Op Charter Schools Project Series A (Education Revenue) 144A		6.00			9-15-2045		1,000,000		991,770
Trout Creek Florida Community Development District (Miscellaneous Revenue)		4.88			5-1-2025		920,000		892,961
									2,418,516
Georgia: 1.15%
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		863,896
Georgia Road & Tollway Authority CCAB I-75 South Expressway Lanes Project Series B (Transportation Revenue) 144A±		0.00			6-1-2049		1,000,000		605,680
									1,469,576
Guam: 0.23%
Guam International Airport Authority Series C (Airport Revenue)		6.38			10-1-2043		260,000		297,861
Idaho: 0.49%
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		6.50			12-1-2038		335,000		367,405
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		6.25			5-1-2043		250,000		260,165
									627,570
Illinois: 16.92%
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		500,000		368,730
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2024		1,000,000		699,080
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2025		500,000		330,330
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2028		1,000,000		552,500
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2021		250,000		253,123
Chicago IL Midway Airport Refunding Bond Second Lien Series A (Airport Revenue)		5.00			1-1-2031		1,000,000		1,073,810
Chicago IL O’Hare International Airport Revenue Bond Series B (Airport Revenue)		6.00			1-1-2041		150,000		170,676

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo High Yield Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Sales Tax (Tax Revenue)		5.00	%		1-1-2032	$	1,500,000	$	1,567,365
Chicago IL Sales Tax Series A (Tax Revenue)		5.00			1-1-2041		1,000,000		1,015,020
Chicago IL Series A (GO Revenue)		5.00			1-1-2033		310,000		287,723
Chicago IL Series A (GO Revenue)		5.25			1-1-2023		500,000		496,475
Chicago IL Series B (GO Revenue)		5.50			1-1-2032		700,000		671,503
Chicago IL Transit Authority Sales Tax Receipts Bonds (Tax Revenue, AGM Insured)		5.00			12-1-2044		1,000,000		1,065,880
Cook County IL School District #144 Prairie Hills CAB Refunding Bond Series C (GO Revenue, AGM Insured) ¤		0.00			12-1-2025		730,000		492,772
Cook County IL School District #148 Dolton Series E (GO Revenue, AGM Insured)		4.75			12-1-2025		450,000		467,978
Illinois (GO Revenue)		5.00			3-1-2033		2,000,000		1,980,180
Illinois (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.50			7-1-2025		525,000		573,479
Illinois (Miscellaneous Revenue)		5.50			7-1-2025		250,000		262,383
Illinois Finance Authority Charter School Aid Intrinsic Schools Belmont School Project Series A (Education Revenue) 144A		5.25			12-1-2025		800,000		783,256
Illinois Finance Authority Charter School Refunding Bond Series A (Education Revenue)		6.88			10-1-2031		700,000		761,313
Illinois Finance Authority Educational Facility Senior Rogers Park Montessori School (Miscellaneous Revenue)		6.00			2-1-2034		680,000		702,508
Illinois Finance Authority Presence Health Network Series C (Health Revenue)		5.00			2-15-2028		1,150,000		1,228,499
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		500,000		534,380
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2025		1,000,000		700,520
Lake County IL Community Unit School District #187 North Chicago Series A (GO Revenue, AGM Insured) ¤		0.00			1-1-2023		590,000		443,031
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2034		2,200,000		935,308
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			6-15-2033		2,000,000		923,600
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		84,147
Will County IL Lincoln-Way Community High School District #210 CAB Series B (GO Revenue) ¤		0.00			1-1-2033		1,000,000		391,910
Will County IL Lincoln-Way Community High School District #210 Series A (GO Revenue)		5.00			1-1-2030		1,000,000		959,370
Will County IL Lincoln-Way Communty High School District #210 (GO Revenue)		4.00			1-1-2022		525,000		497,138
Will County IL Lincoln-Way Communty High School District #210 CAB Series B (GO Revenue) ¤		0.00			1-1-2027		445,000		257,112
									21,531,099
Indiana: 3.85%
Brookhaven County IN EDA Line Senior Apartments Project Series A (Housing Revenue)		6.25			7-1-2043		1,585,000		1,651,887
Indiana Business Finance Authority Refunding Bond Marquette Project Series A (Health Revenue)		5.00			3-1-2030		1,100,000		1,176,747
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2034		250,000		249,440
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2040		1,000,000		1,024,965
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		4.00			3-1-2017		800,000		800,760
									4,903,799
Iowa: 1.40%
Xenia Dallas County IA Rural Water District Capital Loan Notes (Water & Sewer Revenue)		5.00			12-1-2031		1,600,000		1,782,592

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

10 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Kansas: 1.83%
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	$	1,387,364
Wyandotte County & Kansas City KS Special Obligation Refunding and Improvement Bonds Plaza Redevelopment Project (Tax Revenue)		4.00			12-1-2028		1,000,000		942,230
									2,329,594
Kentucky: 2.17%
Kentucky EDFA Refunding Bond Rosedale Green Project (Health Revenue)		5.50			11-15-2035		1,000,000		1,000,630
Kentucky EDFA Senior Revenue Bonds Next Generation Kentucky Information Highway Project Series A (Miscellaneous Revenue)		5.00			7-1-2037		700,000		730,163
Kentucky EDFA Senior Revenue Bonds Next Generation Kentucky Information Highway Project Series A (Miscellaneous Revenue)		5.00			1-1-2045		1,000,000		1,036,600
									2,767,393
Maryland: 0.79%
Prince George’s County MD Chesapeake Lighthouse Charter School Project Series 2016-A (Education Revenue) 144A		6.90			8-1-2041		1,000,000		1,007,750
Michigan: 7.76%
Charyl Stockwell Academy Michigan Public School Refunding Bond (Miscellaneous Revenue)		4.88			10-1-2023		445,000		441,938
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2020		285,000		237,294
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2021		170,000		135,354
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2024		20,000		13,331
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2025		580,000		347,942
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2018		1,000,000		985,780
Michigan Finance Authority Limited Obligation Public School Academy Cesar Chavez Academy Project (Education Revenue)		5.00			2-1-2022		250,000		253,398
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		1,021,740
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Series D-4 (Water & Sewer Revenue)		5.00			7-1-2031		1,015,000		1,122,458
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Series D-6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2036		1,000,000		1,092,020
Michigan Finance Authority Refunding Bond Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		1,000,000		1,062,930
Michigan Municipal Bond Authority Local Government Loan Program CAB Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2017		300,000		297,435
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.75			5-1-2027		950,000		952,005
Michigan Public Educational Facilities Authority Chandler Park Academy (Miscellaneous Revenue)		6.35			11-1-2028		225,000		225,322
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue) 144A		6.50			9-1-2037		200,000		159,972
Michigan Public Educational Facilities Authority Limited Obligation Crescent Academy (Education Revenue)		7.00			10-1-2036		312,500		322,619
Oakland County MI Economic Development Corporation The Academy of The Sacred Heart Project Series A (Education Revenue)		6.50			12-15-2036		250,000		235,125
Wayne County MI Building Improvement Series A (GO Revenue)		6.75			11-1-2039		940,000		971,518
									9,878,181

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo High Yield Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Minnesota: 1.01%
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		4.40	%		7-1-2025	$	160,000	$	161,606
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		5.00			7-1-2030		195,000		199,335
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		5.25			7-1-2037		190,000		193,521
Minneapolis MN Student Housing Refunding Bond Riverton Community Housing Project (Housing Revenue)		4.70			8-1-2026		335,000		333,147
Minneapolis MN Student Housing Refunding Bond Riverton Community Housing Project (Housing Revenue)		4.80			8-1-2027		400,000		396,320
									1,283,929
Missouri: 0.68%
Blue Springs MO Special Obligation Tax Refunding & Improvement Bonds Adams Farm Project Series A (Tax Revenue)		4.00			6-1-2026		870,000		859,151
New Jersey: 3.99%
Essex County NJ Improvement Authority Lease Newark Project Series A (Miscellaneous Revenue)		6.25			11-1-2030		200,000		207,926
New Jersey EDA Continental Airlines Incorporated Project (Industrial Development Revenue)		5.25			9-15-2029		250,000		263,220
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue, National Insured)		5.00			3-1-2030		1,000,000		1,012,020
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		1,000,000		477,030
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		2,000,000		2,057,580
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2027		1,000,000		1,058,220
									5,075,996
New York: 5.17%
Glen Cove NY Local Economic Assistance Corporation CAB Series 2016-B (Industrial Development Revenue) ¤		0.00			1-1-2045		5,500,000		992,255
Green Island NY Power Authority Power System (Utilities Revenue)		6.00			12-15-2020		730,000		741,899
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		1,000,000		1,096,510
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		1,000,000		999,600
Oyster Bay NY BAN Series C (GO Revenue)		4.00			6-1-2018		2,000,000		2,006,740
Oyster Bay NY Public Improvement Bonds (GO Revenue)		3.00			8-15-2020		500,000		480,950
Westchester County NY Local Development Pace University Series A (Education Revenue)		5.00			5-1-2034		250,000		254,283
									6,572,237
North Dakota: 1.49%
Burleigh County ND Educational Facilities Authority University of Mary Project (Education Revenue)		4.38			4-15-2026		2,000,000		1,899,300
Ohio: 1.92%
Maple Heights OH City School District Certificate of Participation (Miscellaneous Revenue)		6.00			11-1-2028		500,000		524,075
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		418,030

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

12 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Ohio (continued)
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75	%		12-1-2023	$	1,000,000	$	418,470
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Miscellaneous Revenue, AGM Insured)		5.00			12-31-2039		1,000,000		1,077,430
									2,438,005
Oregon: 0.73%
Multnomah County OR Hospital Facilities Authority Refunding Bond Mirabella South Waterfront Project Series A (Health Revenue)		5.00			10-1-2019		350,000		366,569
Polk County OR Hospital Facility Authority Revenue Bond Dallas Retirement Village Project Series 2015-A (Health Revenue)		5.00			7-1-2025		550,000		558,756
									925,325
Pennsylvania: 7.10%
Allegheny County PA IDA Propel Charter School Sunrise Project (Education Revenue)		5.25			7-15-2023		155,000		159,399
Chester County PA HEFA Immaculata University Project (Education Revenue)		5.50			10-15-2025		915,000		922,896
Chester PA Upland School District (GO Revenue)		4.75			9-15-2027		1,725,000		1,574,528
East Hempfield Township PA IDA Student Services Incorporated Student Housing Project of Millersville University (Education Revenue)		5.00			7-1-2029		500,000		529,805
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue)		5.00			4-1-2026		1,655,000		1,830,397
Philadelphia PA IDA Tacony Academy Charter School Project (Education Revenue)		6.88			6-15-2033		375,000		409,879
Philadelphia PA State Public School Building Authority School District Project (Miscellaneous Revenue)		5.00			4-1-2031		1,000,000		1,056,110
Scranton PA Notes (GO Revenue)		5.00			11-15-2032		1,500,000		1,523,955
Scranton PA RDA Series A (Miscellaneous Revenue, Municipal Government Guaranty Insured)		5.00			11-15-2021		1,000,000		1,025,220
									9,032,189
Puerto Rico: 1.10%
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		1,309,540
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		94,000
									1,403,540
South Carolina: 0.70%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		152,230		149,143
Jasper County SC School Project (Miscellaneous Revenue)		4.00			4-1-2020		30,000		30,693
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		5.75			11-1-2023		170,000		174,522
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.25			11-1-2045		500,000		536,305
									890,663
Tennessee: 2.15%
Bristol TN Industrial Development Board Sales Tax CAB Series B (Tax Revenue) 144A¤		0.00			12-1-2031		3,500,000		1,395,310
Bristol TN Industrial Development Board Sales Tax Series A (Tax Revenue) 144A		5.13			12-1-2042		1,500,000		1,338,705
									2,734,015

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo High Yield Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Texas: 6.47%
Arlington TX Higher Education Finance Corporation Universal Academy Series A (Education Revenue)		7.00	%		3-1-2034	$	320,000	$	324,573
Hackberry TX Special Assessment Revenue Public Improvement District #3 Phase #13 (Miscellaneous Revenue)		6.00			9-1-2026		210,000		209,309
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		970,000		992,329
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		2,611,525
New Hope TX Cultural Education Facilities Finance Corporation Collegiate Housing San Antonio I LLC A&M University Series A (Housing Revenue)		5.00			4-1-2036		1,000,000		1,037,430
Pottsboro TX Higher Education Finance Corporation Imagine International Academy of North Texas Series A (Education Revenue)		3.88			8-15-2026		1,015,000		937,342
Pottsboro TX Higher Education Finance Corporation Imagine International Academy of North Texas Series A (Education Revenue)		5.00			8-15-2036		655,000		615,196
Tarrant County TX Cultural Education Facilities Finance Corporation Series B (Health Revenue)		5.00			11-15-2030		1,000,000		1,051,900
Texas Gas Supply SA Energy Acquisition Public Facilities Corporation (Utilities Revenue)		5.50			8-1-2027		190,000		226,338
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		200,000		227,332
									8,233,274
Utah: 0.79%
Utah Finance Authority Charter School Revenue Spectrum Academy Project (Education Revenue) 144A		5.00			4-15-2030		1,000,000		1,002,030
Virgin Islands: 2.51%
Virgin Islands PFA Matching Funding Loan Series A (Miscellaneous Revenue)		6.75			10-1-2019		1,545,000		1,529,195
Virgin Islands PFA Series A (Tax Revenue) 144A		5.00			10-1-2032		2,000,000		1,660,100
									3,189,295
Virginia: 1.25%
Stafford County & Staunton VA IDA Community Services Boards League/Central Series B (Miscellaneous Revenue)		6.50			8-1-2028		1,555,000		1,586,551
Washington: 1.75%
Skagit County WA Public Hospital District #1 Skagit Valley Hospital Project (Health Revenue)		5.25			12-1-2025		250,000		267,858
Washington Housing Finance Commission Bayview Manor Homes Series A (Health Revenue) 144A		4.00			7-1-2026		1,000,000		961,310
Washington Housing Finance Commission Nonprofit Housing Bonds Heron’s Key Senior Living Series B-3 (Health Revenue) 144A		4.38			1-1-2021		1,000,000		996,120
									2,225,288
West Virginia: 1.27%
West Virginia EDA Morgantown Energy Associates Project (Industrial Development Revenue)		2.88			12-15-2026		1,435,000		1,337,463
West Virginia Hospital Finance Authority (Health Revenue)		6.25			10-1-2023		270,000		279,609
									1,617,072

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

14 Wells Fargo High Yield Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin: 2.28%
Wisconsin PFA Bancroft Neurohealth Project Series A (Health Revenue) 144A		5.13	%		6-1-2048	$	1,250,000	$	1,147,163
Wisconsin PFA Charter School Voyager Funding Incorporated Project Series A (Education Revenue)		4.13			10-1-2024		270,000		270,948
Wisconsin PFA Coral Academy Science Las Vegas Series A (Education Revenue)		5.00			7-1-2024		500,000		526,500
Wisconsin PFA Research Triangle High School Project Series 2015-A (Education Revenue) 144A		5.63			7-1-2045		1,000,000		959,610
									2,904,221
Total Municipal Obligations (Cost $128,295,407)									125,382,673
	Yield					Shares
Short-Term Investments: 0.95%
Investment Companies: 0.95%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.67					1,205,308		1,206,032
Total Short-Term Investments (Cost $1,205,790)									1,206,032

Total investments in securities (Cost $129,501,197) *	99.48	%		126,588,705
Other assets and liabilities, net	0.52			656,513
Total net assets	100.00	%	$	127,245,218

¤ 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.

(i) Illiquid security

± 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.

(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 $129,501,197 and unrealized gains (losses) consists of:

Gross unrealized gains	$	1,569,073
Gross unrealized losses		(4,481,565	)
Net unrealized losses	$	(2,912,492	)

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo High Yield Municipal Bond Fund 15

Assets
Investments
In unaffiliated securities, at value (cost $128,295,407)	$	125,382,673
In affiliated securities, at value (cost $1,205,790)		1,206,032
Total investments, at value (cost $129,501,197)		126,588,705
Receivable for investments sold		984,980
Receivable for Fund shares sold		1,168,339
Receivable for interest		1,750,372
Prepaid expenses and other assets		16,208
Total assets		130,508,604
Liabilities
Distributions payable		74,360
Payable for investments purchased		966,490
Payable for Fund shares redeemed		2,133,317
Management fee payable		37,612
Distribution fee payable		6,653
Administration fees payable		12,966
Accrued expenses and other liabilities		31,988
Total liabilities		3,263,386
Total net assets	$	127,245,218
NET ASSETS CONSIST OF
Paid-in capital	$	130,589,123
Overdistributed net investment income		(5,210	)
Accumulated net realized losses on investments		(426,203	)
Net unrealized losses on investments		(2,912,492	)
Total net assets	$	127,245,218
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	32,930,677
Shares outstanding – Class A1		3,258,246
Net asset value per share – Class A		$10.11
Maximum offering price per share – Class A2		$10.59
Net assets – Class C	$	9,364,759
Shares outstanding – Class C1		926,494
Net asset value per share – Class C		$10.11
Net assets – Administrator Class	$	18,096,300
Shares outstanding – Administrator Class1		1,789,997
Net asset value per share – Administrator Class		$10.11
Net assets – Institutional Class	$	66,853,482
Shares outstanding – Institutional Class1		6,615,766
Net asset value per share – Institutional Class		$10.11

¹ The Fund has an unlimited number of authorized shares.

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

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

16 Wells Fargo High Yield Municipal Bond Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Interest	$	3,032,693
Income from affiliated securities		5,133
Securities lending income, net		2,714
Total investment income		3,040,540
Expenses
Management fee		365,662
Administration fees
Class A		31,941
Class C		8,890
Administrator Class		14,390
Institutional Class		26,578
Shareholder servicing fees
Class A		49,909
Class C		13,890
Administrator Class		35,362
Distribution fee
Class C		41,670
Custody and accounting fees		6,901
Professional fees		22,439
Registration fees		53,293
Shareholder report expenses		8,184
Trustees’ fees and expenses		12,081
Other fees and expenses		4,060
Total expenses		695,250
Less: Fee waivers and/or expense reimbursements		(129,402	)
Net expenses		565,848
Net investment income		2,474,692
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(361,871	)
Affiliated securities		1,292
Futures transactions		(29,630	)
Net realized losses on investments		(390,209	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(9,717,870	)
Affiliated securities		242
Futures transactions		101,349
Net change in unrealized gains (losses) on investments		(9,616,279	)
Net realized and unrealized gains (losses) on investments		(10,006,488	)
Net decrease in net assets resulting from operations	$	(7,531,796	)

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

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

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	2,474,692					$	4,089,406
Net realized gains (losses) on investments					(390,209	)					962,509
Net change in unrealized gains (losses) on investments					(9,616,279	)					6,104,160
Net increase (decrease) in net assets resulting from operations					(7,531,796	)					11,156,075
Distributions to shareholders from
Net investment income
Class A					(660,932	)					(894,513	)
Class C					(141,964	)					(154,285	)
Administrator Class					(487,450	)					(659,408	)
Institutional Class					(1,184,167	)					(2,387,200	)
Net realized gains
Class A					(272,085	)					(78,573	)
Class C					(74,086	)					(16,949	)
Administrator Class					(130,075	)					(60,643	)
Institutional Class					(522,236	)					(205,261	)
Total distributions to shareholders					(3,472,995	)					(4,456,832	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		987,077			10,564,573			2,125,225			22,523,949
Class C		174,368			1,867,098			634,079			6,747,929
Administrator Class		1,305,908			14,111,206			1,668,935			17,660,288
Institutional Class		3,238,452			34,069,310			1,691,722			17,947,276
					60,612,187						64,879,442
Reinvestment of distributions
Class A		85,744			894,539			88,701			939,044
Class C		18,172			189,120			14,306			151,701
Administrator Class		50,575			531,748			56,332			597,072
Institutional Class		138,035			1,436,207			166,900			1,762,332
					3,051,614						3,450,149
Payment for shares redeemed
Class A		(1,297,961	)		(13,521,062	)		(771,697	)		(8,162,455	)
Class C		(234,678	)		(2,440,435	)		(117,144	)		(1,224,951	)
Administrator Class		(1,872,927	)		(19,482,417	)		(750,383	)		(7,978,247	)
Institutional Class		(2,980,088	)		(31,606,353	)		(3,003,097	)		(31,534,674	)
					(67,050,267	)					(48,900,327	)
Net increase (decrease) in net assets resulting from capital share transactions					(3,386,466	)					19,429,264
Total increase (decrease) in net assets					(14,391,257	)					26,128,507
Net assets
Beginning of period					141,636,475						115,507,968
End of period				$	127,245,218					$	141,636,475
Overdistributed net investment income				$	(5,210	)				$	(5,389	)

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

18 Wells Fargo High Yield Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			20131
Net asset value, beginning of period		$10.91			$10.34			$10.25			$9.52			$10.00
Net investment income		0.18			0.35			0.34			0.40			0.13
Net realized and unrealized gains (losses) on investments		(0.72	)		0.60			0.18			0.75			(0.49	)
Total from investment operations		(0.54	)		0.95			0.52			1.15			(0.36	)
Distributions to shareholders from
Net investment income		(0.18	)		(0.35	)		(0.34	)		(0.40	)		(0.12	)
Net realized gains		(0.08	)		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.26	)		(0.38	)		(0.43	)		(0.42	)		(0.12	)
Net asset value, end of period		$10.11			$10.91			$10.34			$10.25			$9.52
Total return2		(5.06	)%		9.44	%		5.06	%		12.41	%		(3.61	)%
Ratios to average net assets (annualized)
Gross expenses		1.06	%		1.07	%		1.07	%		1.90	%		3.45	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		3.31	%		3.28	%		3.26	%		3.98	%		3.21	%
Supplemental data
Portfolio turnover rate		49	%		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$32,931			$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.

Financial Highlights Wells Fargo High Yield Municipal Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			20131
Net asset value, beginning of period		$10.91			$10.34			$10.25			$9.52			$10.00
Net investment income		0.14			0.27			0.26			0.33			0.09
Net realized and unrealized gains (losses) on investments		(0.72	)		0.60			0.18			0.75			(0.48	)
Total from investment operations		(0.58	)		0.87			0.44			1.08			(0.39	)
Distributions to shareholders from
Net investment income		(0.14	)		(0.27	)		(0.26	)		(0.33	)		(0.09	)
Net realized gains		(0.08	)		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.22	)		(0.30	)		(0.35	)		(0.35	)		(0.09	)
Net asset value, end of period		$10.11			$10.91			$10.34			$10.25			$9.52
Total return2		(5.42	)%		8.62	%		4.28	%		11.58	%		(3.89	)%
Ratios to average net assets (annualized)
Gross expenses		1.81	%		1.82	%		1.82	%		2.58	%		4.05	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.56	%		2.49	%		2.50	%		3.15	%		2.25	%
Supplemental data
Portfolio turnover rate		49	%		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$9,365			$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.

20 Wells Fargo High Yield Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			20131
Net asset value, beginning of period		$10.92			$10.34			$10.26			$9.52			$10.00
Net investment income		0.19			0.36			0.35			0.41			0.13
Net realized and unrealized gains (losses) on investments		(0.73	)		0.61			0.17			0.76			(0.48	)
Total from investment operations		(0.54	)		0.97			0.52			1.17			(0.35	)
Distributions to shareholders from
Net investment income		(0.19	)		(0.36	)		(0.35	)		(0.41	)		(0.13	)
Net realized gains		(0.08	)		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.27	)		(0.39	)		(0.44	)		(0.43	)		(0.13	)
Net asset value, end of period		$10.11			$10.92			$10.34			$10.26			$9.52
Total return2		(5.10	)%		9.65	%		5.07	%		12.63	%		(3.57	)%
Ratios to average net assets (annualized)
Gross expenses		0.99	%		1.00	%		1.00	%		1.80	%		3.24	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		3.39	%		3.39	%		3.35	%		4.14	%		3.10	%
Supplemental data
Portfolio turnover rate		49	%		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$18,096			$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.

Financial Highlights Wells Fargo High Yield Municipal Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			2015			2014			20131
Net asset value, beginning of period		$10.91			$10.34			$10.25			$9.52			$10.00
Net investment income		0.19			0.38			0.37			0.42			0.13
Net realized and unrealized gains (losses) on investments		(0.72	)		0.60			0.18			0.75			(0.48	)
Total from investment operations		(0.53	)		0.98			0.55			1.17			(0.35	)
Distributions to shareholders from
Net investment income		(0.19	)		(0.38	)		(0.37	)		(0.42	)		(0.13	)
Net realized gains		(0.08	)		(0.03	)		(0.09	)		(0.02	)		0.00
Total distributions to shareholders		(0.27	)		(0.41	)		(0.46	)		(0.44	)		(0.13	)
Net asset value, end of period		$10.11			$10.91			$10.34			$10.25			$9.52
Total return2		(4.94	)%		9.71	%		5.33	%		12.70	%		(3.52	)%
Ratios to average net assets (annualized)
Gross expenses		0.73	%		0.74	%		0.74	%		1.53	%		2.97	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.56	%		3.58	%		3.51	%		4.26	%		3.25	%
Supplemental data
Portfolio turnover rate		49	%		61	%		62	%		65	%		69	%
Net assets, end of period (000s omitted)		$66,853			$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.

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

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees 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 (unaudited) Wells Fargo High Yield Municipal Bond Fund 23

Security loans

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), 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 valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

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.

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

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

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:

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	125,382,673	$	0	$	125,382,673
Short-term investments
Investment companies		1,206,032		0		0		1,206,032
Total assets	$	1,206,032	$	125,382,673	$	0	$	126,588,705

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, 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 0.50% and declining to 0.38% as the average daily net assets of the Fund increase. For the six months ended December 31, 2016, the management fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.

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

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. 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, 2017 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.

During the six months ended December 31, 2016, Funds Management received $1,311 from State Street Bank and Trust Company, the Fund’s custodian, for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015 that increased waivers/reimbursements made by Funds Management for the Fund during the period.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $1,978 from the sale of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $66,883,390 and $63,546,661, 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 six months ended December 31, 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.

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

As of December 31, 2016, the Fund did not have any open futures contracts. The Fund had an average notional amount of $688,937 in short futures contracts during the six months ended December 31, 2016.

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

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

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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 High Yield Municipal Bond Fund 29

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

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

30 Wells Fargo High Yield Municipal Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300479 02-17 SA264/SAR264 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo Intermediate Tax/AMT-Free Fund

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Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Summary portfolio of investments*	7
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	20
Other information	25
List of abbreviations	28

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

The views expressed and any forward-looking statements are as of December 31, 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)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Intermediate Tax/AMT-Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(3.90	)		1.95		3.43		(0.93	)		2.58		3.74		0.80		0.70
Class C (WFTFX)	7-31-2007		(2.67	)		1.81		2.97		(1.67	)		1.81		2.97		1.55		1.45
Administrator Class (WFITX)	3-31-2008		–			–		–		(0.83	)		2.70		3.84		0.74		0.60
Institutional Class (WITIX)	3-31-2008		–			–		–		(0.76	)		2.86		4.00		0.47		0.45
Bloomberg Barclays Municipal Bond 1-15 Year Blend Index4	–		–			–		–		0.01			2.54		4.00		–		–

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

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

For Class A shares, the maximum front-end sales charge is 3.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

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

Please see footnotes on page 5.

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

Effective maturity distribution as of December 31, 2016⁵

Credit quality as of December 31, 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). 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 the Administrator Class shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the Investor Class shares. Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the 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, 2017, 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 Bloomberg Barclays Municipal Bond 1–15 Year Blend Index (formerly known as Barclays Municipal Bond 1–15 Year Blend Index) is the 1–15 Year Blend component of the Bloomberg Barclays Municipal Bond Index (formerly known as Barclays Municipal Bond Index). The Bloomberg 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  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  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 Intermediate Tax/AMT-Free Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	960.09	$	3.45		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62	$	3.56		0.70	%
Class��C
Actual	$	1,000.00	$	956.47	$	7.13		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.85	$	7.35		1.45	%
Administrator Class
Actual	$	1,000.00	$	960.61	$	2.96		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	960.55	$	2.22		0.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.87	$	2.29		0.45	%

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 7

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

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Municipal Obligations: 98.80%
Alabama: 0.26%
Other securities								$	6,199,552		0.26	%
Alaska: 0.18%
Other securities									4,421,604		0.18
Arizona: 1.68%
Other securities									40,107,763		1.68
California: 9.19%
Bay Area CA Toll Authority Toll Bridge Series A (Transportation Revenue) ±		1.97	%		4-1-2036	$	9,810,000		9,847,474		0.41
California Public Works University of California Board of Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		12,110,000		13,871,036		0.58
California Various Purposes (GO Revenue)		6.00			4-1-2038		8,055,000		8,791,871		0.37
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.29			7-1-2027		10,000,000		8,901,900		0.37
San Jose CA MFHR Casa Del Pueblo Apartments Project Series D (Housing Revenue) ±##		0.95			12-1-2017		10,000,000		9,987,900		0.42
University of California Limited Project Series G (Education Revenue)		5.00			5-15-2037		10,390,000		11,694,465		0.49
University of California Medical Center Series J (Health Revenue)		5.25			5-15-2030		15,000,000		17,397,300		0.73
Other securities									139,504,042		5.82
									219,995,988		9.19
Colorado: 0.69%
Other securities									16,581,640		0.69
Connecticut: 3.02%
Connecticut HEFAR Yale University Issue Series A (Education Revenue) ±		1.00			7-1-2042		25,000,000		24,530,750		1.02
Connecticut HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		10,000,000		9,975,600		0.42
Other securities									37,811,669		1.58
									72,318,019		3.02
Delaware: 0.08%
Other securities									1,985,080		0.08
District of Columbia: 0.59%
Other securities									14,086,161		0.59
Florida: 5.24%
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		1.27			9-25-2024		11,960,000		11,960,000		0.50

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

8 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Florida (continued)
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		1.11	%		5-1-2037	$	18,235,000	$	18,235,000		0.76	%
Other securities									95,145,374		3.98
									125,340,374		5.24
Georgia: 1.48%
Georgia Series F (Miscellaneous Revenue)		5.00			7-1-2026		10,000,000		12,317,100		0.51
Other securities									23,095,848		0.97
									35,412,948		1.48
Guam: 0.35%
Other securities									8,473,194		0.35
Illinois: 15.88%
Chicago IL Board of Education (GO Revenue) µ		0.00-5.25			12-1-2020 to 12-1-2029		34,170,000		29,662,636		1.23
Chicago IL Board of Education Series A3 (GO Revenue) ±		1.55			3-1-2036		10,000,000		9,437,700		0.39
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue)		5.25			1-1-2032		8,755,000		9,697,914		0.41
Chicago IL O’Hare International Airport Senior Lien Series B (Airport Revenue)		5.00			1-1-2030		8,000,000		8,931,840		0.37
Chicago IL Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		10,000,000		10,025,400		0.42
Chicago IL (GO Revenue) µ		0.00-5.25			1-1-2019 to 1-1-2037		32,310,000		31,404,514		1.30
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		16,865,000		16,913,374		0.71
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		7,240,000		7,915,058		0.33
Cook County IL Series A (GO Revenue)		5.25			11-15-2023		7,680,000		8,361,062		0.35
Illinois (Various Revenue) µ		4.75-5.50			4-1-2020 to 7-1-2026		18,400,000		19,151,509		0.80
Illinois (Tax Revenue)		5.00			6-15-2023		16,050,000		18,240,023		0.76
Illinois Regional Transportation Authority (Tax Revenue, National Insured)		6.50			7-1-2026		7,815,000		9,996,088		0.42
Illinois Series A (Tax Revenue)		5.00			1-1-2027		10,625,000		10,676,319		0.45
Will County IL Community Unified School District CAB (GO Revenue, National Insured) ¤		0.00			11-1-2018		9,730,000		9,363,179		0.39
Other securities									180,240,460		7.55
									380,017,076		15.88
Indiana: 1.63%
Other securities									38,886,132		1.63
Iowa: 0.89%
Other securities									21,281,509		0.89
Kansas: 0.24%
Other securities									5,753,967		0.24
Kentucky: 0.50%
Other securities									11,951,210		0.50

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Louisiana: 0.92%
Other securities								$	21,911,600		0.92	%
Maryland: 1.80%
Maryland Series B (GO Revenue)		4.00	%		8-1-2024	$	15,000,000		16,929,900		0.71
Other securities									26,168,497		1.09
									43,098,397		1.80
Massachusetts: 3.05%
Massachusetts Consolidate Loan Series D (GO Revenue)		5.00			9-1-2028		10,000,000		11,880,100		0.50
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ±		1.05			8-1-2043		10,000,000		9,678,500		0.40
Massachusetts HEFA Various Partners Healthcare Series G-6 (Health Revenue) ±		1.60			7-1-2038		14,000,000		13,999,860		0.58
Massachusetts Housing Finance Agency Multifamily Conduit Wood Ridge Homes Project Series A (Housing Revenue) ±		1.05			12-1-2017		9,000,000		8,992,980		0.37
Other securities									28,491,441		1.20
									73,042,881		3.05
Michigan: 4.05%
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue)		5.00			7-1-2030		12,000,000		13,312,320		0.56
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		11,500,000		11,643,750		0.49
Other securities									72,059,415		3.00
									97,015,485		4.05
Minnesota: 0.31%
Other securities									7,415,458		0.31
Mississippi: 0.82%
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		11,190,000		0.47
Other securities									8,329,146		0.35
									19,519,146		0.82
Missouri: 0.30%
Other securities									7,069,140		0.30
Nebraska: 0.13%
Other securities									3,050,730		0.13
Nevada: 1.43%
Other securities									34,258,910		1.43
New Hampshire: 0.07%
Other securities									1,661,633		0.07

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

10 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date			Principal		Value		Percent of net assets
New Jersey: 4.70%
New Jersey EDA School Facilities Construction Refunding Bond Series NN (Miscellaneous Revenue)		5.00	%		3-1-2021		$	15,035,000	$	15,924,771		0.67	%
New Jersey EDA School Facilities Construction Refunding Bond Series PP (Miscellaneous Revenue)		5.00			6-15-2026			8,380,000		8,664,333		0.36
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2019			9,860,000		10,503,168		0.44
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144Aø		0.84			12-15-2022			19,775,000		19,775,000		0.83
Other securities										57,515,096		2.40
										112,382,368		4.70
New Mexico: 0.76%
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2028			9,265,000		10,364,014		0.43
Other securities										7,770,820		0.33
										18,134,834		0.76
New York: 8.37%
Metropolitan Transportation Authority New York (Transportation Revenue) µ		5.00-5.25			11-15-2025 to 11-15-2031			20,450,000		23,656,551		0.99
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2029			11,100,000		13,047,162		0.55
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2030			8,350,000		9,789,874		0.41
New York Convention Center Development Corporation (Tax Revenue)		5.00			11-15-2028			8,000,000		9,312,000		0.39
New York NY Series J-4 (GO Revenue) ±		1.27			8-1-2025			10,000,000		10,003,600		0.42
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A##		4.20			2-1-2017			14,910,000		14,904,036		0.62
Other securities										119,501,409		4.99
										200,214,632		8.37
North Carolina: 0.64%
Other securities						��				15,389,538		0.64
North Dakota: 0.23%
Other securities										5,614,352		0.23
Ohio: 1.54%
Other securities										36,969,878		1.54
Oklahoma: 2.01%
Other securities										48,150,564		2.01

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Oregon: 0.38%
Other securities								$	9,120,446		0.38	%
Pennsylvania: 8.77%
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		2.22	%		11-1-2039	$	10,000,000		10,077,500		0.42
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		8,065,000		8,426,554		0.35
Philadelphia PA School District Refunding Bond (GO Revenue) µ		5.00-5.25			9-1-2021 to 9-1-2032		19,680,000		21,509,484		0.91
Philadelphia PA Series A (GO Revenue)		5.00			9-15-2021		7,000,000		7,874,160		0.33
Other securities									161,843,530		6.76
									209,731,228		8.77
Rhode Island: 0.19%
Other securities									4,626,925		0.19
South Carolina: 1.43%
South Carolina Public Service Authority Series A (Utilities Revenue)		5.00			12-1-2037		12,215,000		13,611,907		0.57
Other securities									20,538,252		0.86
									34,150,159		1.43
South Dakota: 0.04%
Other securities									993,674		0.04
Tennessee: 0.29%
Other securities									6,828,729		0.29
Texas: 8.92%
Central Texas Regional Mobility Authority Series B (Transportation Revenue) ±		5.00			1-1-2045		8,000,000		8,627,760		0.36
Cypress-Fairbanks TX Independent School District Series B-2 (GO Revenue) ±		3.00			2-15-2040		11,010,000		11,289,764		0.47
Harris County TX Tax Road Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		8,445,000		9,989,591		0.42
Other securities									183,580,727		7.67
									213,487,842		8.92
Utah: 0.17%
Other securities									4,180,515		0.17
Virgin Islands: 0.29%
Other securities									6,892,308		0.29
Virginia: 1.06%
Virginia College Building Authority Educational Facilities Series A (Education Revenue)		3.00			9-1-2025		13,630,000		14,143,442		0.59
Other securities									11,110,287		0.47
									25,253,729		1.06

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

12 Wells Fargo Intermediate Tax/AMT-Free Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Washington: 3.23%
Washington Various Purposes Refunding Bond Series B (GO Revenue)		5.00	%		7-1-2028	$	7,130,000	$	8,454,825		0.35	%
Other securities									68,770,768		2.88
									77,225,593		3.23
West Virginia: 0.29%
Other securities									6,873,619		0.29
Wisconsin: 0.71%
Other securities									16,928,892		0.71
Total Municipal Obligations (Cost $2,342,745,800)									2,364,005,422		98.80
Total investments in securities (Cost $2,342,745,800) *									2,364,005,422		98.80	%
Other assets and liabilities, net									28,748,493		1.20
Total net assets								$	2,392,753,915		100.00	%

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

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

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.

* Cost for federal income tax purposes is $2,342,808,131 and unrealized gains (losses) consists of:

Gross unrealized gains	$	62,212,521
Gross unrealized losses		(41,015,230	)
Net unrealized gains	$	21,197,291

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 13

Assets
Investment in unaffiliated securities, at value (cost $2,342,745,800)	$	2,364,005,422
Cash		2,141,412
Receivable for investments sold		8,966,151
Receivable for Fund shares sold		41,383,860
Receivable for interest		26,924,839
Prepaid expenses and other assets		101,028
Total assets		2,443,522,712
Liabilities
Distributions payable		1,711,492
Payable for investments purchased		25,696,661
Payable for Fund shares redeemed		22,069,106
Management fee payable		708,109
Distribution fee payable		34,409
Administration fees payable		224,796
Accrued expenses and other liabilities		324,224
Total liabilities		50,768,797
Total net assets	$	2,392,753,915
NET ASSETS CONSIST OF
Paid-in capital	$	2,378,214,676
Overdistributed net investment income		(53,945	)
Accumulated net realized losses on investments		(6,666,438	)
Net unrealized gains on investments		21,259,622
Total net assets	$	2,392,753,915
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	446,088,837
Shares outstanding – Class A1		39,555,500
Net asset value per share – Class A		$11.28
Maximum offering price per share – Class A2		$11.63
Net assets – Class C	$	50,165,934
Shares outstanding – Class C1		4,448,328
Net asset value per share – Class C		$11.28
Net assets – Administrator Class	$	378,293,250
Shares outstanding – Administrator Class1		33,516,141
Net asset value per share – Administrator Class		$11.29
Net assets – Institutional Class	$	1,518,205,894
Shares outstanding – Institutional Class1		134,447,306
Net asset value per share – Institutional Class		$11.29

¹  The Fund has an unlimited number of authorized shares.

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

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

14 Wells Fargo Intermediate Tax/AMT-Free Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Interest	$	38,851,860
Income from affiliated securities		4,275
Total investment income		38,856,135
Expenses
Management fee		4,873,536
Administration fees
Class A		424,130
Class C		44,469
Administrator Class		257,400
Institutional Class		630,053
Shareholder servicing fees
Class A		662,703
Class C		69,482
Administrator Class		640,039
Distribution fee
Class C		208,446
Custody and accounting fees		72,467
Professional fees		27,303
Registration fees		82,807
Shareholder report expenses		60,952
Trustees’ fees and expenses		12,079
Other fees and expenses		12,351
Total expenses		8,078,217
Less: Fee waivers and/or expense reimbursements		(731,205	)
Net expenses		7,347,012
Net investment income		31,509,123
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(6,543,751	)
Futures transactions		(83,310	)
Net realized losses on investments		(6,627,061	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(130,718,285	)
Futures transactions		(39,009	)
Net change in unrealized gains (losses) on investments		(130,757,294	)
Net realized and unrealized gains (losses) on investments		(137,384,355	)
Net decrease in net assets resulting from operations	$	(105,875,232	)

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

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

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	31,509,123					$	57,940,980
Net realized gains (losses) on investments					(6,627,061	)					2,232,112
Net change in unrealized gains (losses) on investments					(130,757,294	)					86,262,670
Net increase (decrease) in net assets resulting from operations					(105,875,232	)					146,435,762
Distributions to shareholders from
Net investment income
Class A					(5,837,040	)					(10,348,026	)
Class C					(404,386	)					(835,135	)
Administrator Class					(5,875,849	)					(17,804,373	)
Institutional Class					(19,393,462	)					(26,049,426	)
Investor Class					N/A						(2,904,150	)1
Net realized gains
Class A					(379,176	)					0
Class C					(40,611	)					0
Administrator Class					(307,288	)					0
Institutional Class					(1,290,263	)					0
Total distributions to shareholders					(33,528,075	)					(57,941,110	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,261,688			26,417,602			39,565,308			458,186,456
Class C		225,549			2,630,251			603,319			7,044,101
Administrator Class		5,113,998			59,566,276			20,607,008			240,192,483
Institutional Class		67,410,986			785,861,415			52,291,609			610,662,188
Investor Class		N/A			N/A			1,416,573	1		16,288,070	1
					874,475,544						1,332,373,298
Reinvestment of distributions
Class A		510,301			5,917,263			848,840			9,927,258
Class C		34,006			393,676			63,902			745,237
Administrator Class		505,238			5,879,173			1,448,279			16,905,947
Institutional Class		1,100,640			12,746,240			1,258,565			14,714,093
Investor Class		N/A			N/A			195,909	1		2,256,316	1
					24,936,352						44,548,851
Payment for shares redeemed
Class A		(10,033,165	)		(115,602,480	)		(12,323,773	)		(144,035,345	)
Class C		(571,432	)		(6,599,159	)		(848,510	)		(9,891,073	)
Administrator Class		(39,554,170	)		(465,034,483	)		(21,996,551	)		(255,465,209	)
Institutional Class		(39,946,190	)		(456,455,381	)		(24,133,951	)		(281,891,835	)
Investor Class		N/A			N/A			(39,753,597	)1		(459,096,510	)1
					(1,043,691,503	)					(1,150,379,972	)
Net increase (decrease) in net assets resulting from capital share transactions					(144,279,607	)					226,542,177
Total increase (decrease) in net assets					(283,682,914	)					315,036,829
Net assets
Beginning of period					2,676,436,829						2,361,400,000
End of period				$	2,392,753,915					$	2,676,436,829
Overdistributed net investment income				$	(53,945	)				$	(52,331	)

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

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

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

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.89			$11.47			$11.53			$11.31			$11.53			$10.94
Net investment income		0.13			0.26			0.25			0.30			0.28			0.35
Net realized and unrealized gains (losses) on investments		(0.60	)		0.42			(0.06	)		0.29			(0.18	)		0.59
Total from investment operations		(0.47	)		0.68			0.19			0.59			0.10			0.94
Distributions to shareholders from
Net investment income		(0.13	)		(0.26	)		(0.25	)		(0.30	)		(0.28	)		(0.35	)
Net realized gains		(0.01	)		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.14	)		(0.26	)		(0.25	)		(0.37	)		(0.32	)		(0.35	)
Net asset value, end of period		$11.28			$11.89			$11.47			$11.53			$11.31			$11.53
Total return2		(3.99	)%		5.99	%		1.68	%		5.37	%		0.82	%		8.71	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.80	%		0.80	%		0.81	%		0.80	%		0.81	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		2.20	%		2.23	%		2.19	%		2.66	%		2.36	%		3.07	%
Supplemental data
Portfolio turnover rate		11	%		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$446,089			$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. Returns for periods of less than one year are not annualized.

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

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

(For a share outstanding throughout each period)

	Six months ended  December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.89			$11.47			$11.53			$11.31			$11.53			$10.94
Net investment income		0.09			0.17			0.17			0.22			0.19			0.27
Net realized and unrealized gains (losses) on investments		(0.60	)		0.42			(0.06	)		0.29			(0.18	)		0.59
Total from investment operations		(0.51	)		0.59			0.11			0.51			0.01			0.86
Distributions to shareholders from
Net investment income		(0.09	)		(0.17	)		(0.17	)		(0.22	)		(0.19	)		(0.27	)
Net realized gains		(0.01	)		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.10	)		(0.17	)		(0.17	)		(0.29	)		(0.23	)		(0.27	)
Net asset value, end of period		$11.28			$11.89			$11.47			$11.53			$11.31			$11.53
Total return2		(4.35	)%		5.20	%		0.92	%		4.59	%		0.07	%		7.90	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%		1.55	%		1.55	%		1.56	%		1.55	%		1.56	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		1.45	%		1.48	%		1.44	%		1.92	%		1.61	%		2.32	%
Supplemental data
Portfolio turnover rate		11	%		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$50,166			$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. Returns for periods of less than one year are not annualized.

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

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

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.90			$11.48			$11.54			$11.32			$11.54			$10.95
Net investment income		0.14			0.27			0.27			0.31			0.29			0.36
Net realized and unrealized gains (losses) on investments		(0.60	)		0.42			(0.06	)		0.29			(0.18	)		0.59
Total from investment operations		(0.46	)		0.69			0.21			0.60			0.11			0.95
Distributions to shareholders from
Net investment income		(0.14	)		(0.27	)		(0.27	)		(0.31	)		(0.29	)		(0.36	)
Net realized gains		(0.01	)		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.15	)		(0.27	)		(0.27	)		(0.38	)		(0.33	)		(0.36	)
Net asset value, end of period		$11.29			$11.90			$11.48			$11.54			$11.32			$11.54
Total return2		(3.94	)%		6.09	%		1.78	%		5.47	%		0.92	%		8.81	%
Ratios to average net assets (annualized)
Gross expenses		0.73	%		0.74	%		0.74	%		0.75	%		0.74	%		0.75	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		2.28	%		2.33	%		2.29	%		2.76	%		2.46	%		3.18	%
Supplemental data
Portfolio turnover rate		11	%		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$378,293			$802,527			$773,770			$668,517			$621,627			$494,528

¹  Amount is less than $0.005.

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

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

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

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.91			$11.49			$11.55			$11.32			$11.54			$10.96
Net investment income		0.15			0.29			0.29			0.33			0.31			0.38
Net realized and unrealized gains (losses) on investments		(0.61	)		0.42			(0.06	)		0.30			(0.18	)		0.58
Total from investment operations		(0.46	)		0.71			0.23			0.63			0.13			0.96
Distributions to shareholders from
Net investment income		(0.15	)		(0.29	)		(0.29	)		(0.33	)		(0.31	)		(0.38	)
Net realized gains		(0.01	)		0.00			0.00			(0.07	)		(0.04	)		(0.00	)1
Total distributions to shareholders		(0.16	)		(0.29	)		(0.29	)		(0.40	)		(0.35	)		(0.38	)
Net asset value, end of period		$11.29			$11.91			$11.49			$11.55			$11.32			$11.54
Total return2		(3.95	)%		6.26	%		1.97	%		5.75	%		1.10	%		8.91	%
Ratios to average net assets (annualized)
Gross expenses		0.46	%		0.47	%		0.47	%		0.48	%		0.48	%		0.49	%
Net expenses		0.45	%		0.44	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		2.46	%		2.49	%		2.47	%		2.94	%		2.65	%		3.32	%
Supplemental data
Portfolio turnover rate		11	%		14	%		38	%		29	%		24	%		38	%
Net assets, end of period (000s omitted)		$1,518,206			$1,260,636			$878,585			$599,686			$461,403			$326,772

¹  Amount is less than $0.005.

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

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

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

1. ORGANIZATION

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

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

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

Notes to financial statements (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 21

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:

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

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	2,364,005,422	$	0	$	2,364,005,422

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 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 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, 2017 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $6,430 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,233 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

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

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $4,253 from the sale of Class A shares and $449 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 six months ended December 31, 2016 were $269,317,620 and $251,787,885, 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 six months ended December 31, 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.

As of December 31, 2016, the Fund did not have any open futures contracts. The Fund had an average notional amount of $3,071,999 in short futures contracts during the six months ended December 31, 2016.

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

8. INDEMNIFICATION

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

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

Other information (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 25

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

26 Wells Fargo Intermediate Tax/AMT-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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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 Intermediate Tax/AMT-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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

28 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

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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300480 02-17 SA251/SAR251 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo
Minnesota Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

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

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Minnesota Tax -Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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 (NMTFX)	1-2-1988		(4.11	)		1.88		3.19		0.41			2.83		3.66		0.89		0.85
Class C (WMTCX)	4-8-2005		(1.34	)		2.06		2.90		(0.34	)		2.06		2.90		1.64		1.60
Administrator Class (NWMIX)	8-2-1993		–			–		–		0.56			3.08		3.92		0.83		0.60
Institutional Class (WMTIX)	10-31-2016		–			–		–		0.66			3.10		3.93		0.56		0.52
Bloomberg Barclays Municipal Bond Index4	–		–			–		–		0.25			3.28		4.25		–		–
Bloomberg Barclays Minnesota Municipal Bond Index5	–		–			–		–		(0.30	)		2.68		4.08		–		–

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

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

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

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

Effective maturity distribution as of December 31, 2016⁶

Credit quality as of December 31, 2016⁷

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 Institutional Class expenses. If these expenses had been included, returns for 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, 2017, 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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 Bloomberg Barclays Minnesota Municipal Bond Index (formerly known as Barclays Minnesota Municipal Bond Index) is the Minnesota component of the Bloomberg Barclays Municipal Bond Index. You cannot invest directly in an index.

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 Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	971.86	$	4.21		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	968.19	$	7.92		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Administrator Class
Actual	$	1,000.00	$	972.17	$	2.97		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	973.13	$	2.58		0.52	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.52	$	2.64		0.52	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Minnesota Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.48%
Guam: 2.11%
Guam Government Business Privilege Tax Series D (Tax Revenue)		5.00	%		11-15-2022	$	500,000	$	559,160
Guam Government Limited Obligation Series A (Tax Revenue)		5.00			12-1-2028		1,000,000		1,143,160
Guam Government Waterworks Authority Water & Wastewater System Project Series 2013 (Water & Sewer Revenue)		5.25			7-1-2022		865,000		965,617
Guam International Airport Authority Series 2013A (Airport Revenue)		5.00			10-1-2017		200,000		204,804
Guam International Airport Authority Series 2013A (Airport Revenue)		5.00			10-1-2018		100,000		105,236
Guam International Airport Authority Series 2013B (Airport Revenue)		5.00			10-1-2017		300,000		307,743
									3,285,720
Minnesota: 96.02%
Anoka County MN Capital Improvement Series A (GO Revenue)		5.00			2-1-2024		500,000		518,850
Anoka County MN Charter School Series A (Education Revenue)		3.40			6-1-2019		225,000		226,611
Anoka County MN Charter School Series A (Education Revenue)		3.65			6-1-2020		185,000		186,894
Anoka County MN Charter School Series A (Education Revenue)		3.75			6-1-2021		245,000		246,982
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2027		510,000		540,263
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2032		300,000		315,519
Anoka County MN Charter School Series A (Education Revenue)		5.00			6-1-2043		1,100,000		1,142,603
Anoka Hennepin MN Independent School District #11 Certificate of Participation Series 2014A (Miscellaneous Revenue)		5.00			2-1-2034		1,000,000		1,109,270
Austin MN Housing & RDA Courtyard Residence Project Series A (Housing Revenue)		5.00			1-1-2031		1,500,000		1,553,445
Brooklyn Park MN Charter School Athlos Leadership Academy Project Series 2015A (Education Revenue)		4.00			7-1-2020		245,000		243,341
Brooklyn Park MN Charter School Athlos Leadership Academy Project Series 2015A (Education Revenue)		5.50			7-1-2040		750,000		720,398
Brooklyn Park MN Charter School Prairie Seeds Academy Project Series 2015A (Miscellaneous Revenue)		5.00			3-1-2034		1,500,000		1,494,765
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2011 (Miscellaneous Revenue)		5.00			11-1-2041		1,400,000		1,453,858
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2026		750,000		858,150
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2027		500,000		568,970
Center City MN Health Care Facilities Hazelden Betty Ford Foundation Project Series 2014 (Health Revenue)		5.00			11-1-2029		300,000		338,667
Central Minnesota Municipal Power Agency Brookings Southeast Twin Cities Transmission Project Series 2012 (Utilities Revenue)		5.00			1-1-2042		1,500,000		1,628,955
Cologne MN Charter School Cologne Academy Project Series 2014A (Education Revenue)		5.00			7-1-2029		590,000		625,170
Cologne MN Charter School Cologne Academy Project Series 2014A (Education Revenue)		5.00			7-1-2034		500,000		519,640
Columbus MN Charter School New Millennium Academy Project Series 2015A (Education Revenue)		5.50			7-1-2030		1,000,000		973,090
Dakota County MN Community Development Agency SFMR (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.30			12-1-2039		41,154		41,740
Deephaven MN Charter School Eagle Ridge Academy Project Series 2015A (Education Revenue)		5.25			7-1-2040		500,000		506,500
Deephaven MN Charter School Eagle Ridge Academy Project Series 2016A (Education Revenue)		4.00			7-1-2027		100,000		94,249
Deephaven MN Charter School Eagle Ridge Academy Project Series A (Education Revenue)		5.25			7-1-2037		400,000		407,412

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

8 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Deephaven MN Charter School Eagle Ridge Academy Project Series 2016A (Education Revenue)		4.00	%		7-1-2025	$	125,000	$	120,625
Deephaven MN Charter School Eagle Ridge Academy Project Series 2016A (Education Revenue)		4.00			7-1-2026		100,000		95,497
Duluth MN Housing & RDA Public School Academy Series 2010A (Education Revenue)		5.60			11-1-2030		2,000,000		2,044,060
Duluth MN Independent School District No. 709 St. Louis County Certificate of Participation Series 2016A (Miscellaneous Revenue, South Dakota Credit Program Insured)		5.00			2-1-2026		1,000,000		1,179,110
Forest Lakes MN Charter School Lakes International Language Academy Project Series 2014A (Education Revenue)		5.50			8-1-2036		500,000		527,540
Glencoe MN HCFR Glencoe Regional Health Services Project Series 2013 (Health Revenue)		4.00			4-1-2022		735,000		776,777
Goodhue County MN Education District #6051 Red Wing Certificate of Participation Series 2014A (Miscellaneous Revenue)		5.00			2-1-2029		750,000		838,785
Ham Lake MN Charter School Parnassus Preparatory School Project Series A (Education Revenue)		4.00			11-1-2026		1,000,000		949,860
Ham Lake MN Charter School Da Vinci Academy Project Series 2012A (Education Revenue)		4.00			7-1-2028		370,000		348,444
Ham Lake MN Charter School Da Vinci Academy Project Series 2016A (Education Revenue)		5.00			7-1-2031		625,000		616,131
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		500,000		503,115
Hugo MN Charter School Lease Revenue Bonds Noble Academy Project Series 2014A (Education Revenue)		5.00			7-1-2029		600,000		605,226
Hutchinson MN Public Utility Revenue Refunding Bonds Series 2012A (Utilities Revenue)		5.00			12-1-2026		700,000		795,165
Maple Grove MN HCFR North Memorial Health Care Series 2015 (Health Revenue)		5.00			9-1-2023		655,000		754,992
Maple Grove MN Maple Grove Hospital Corporation (Health Revenue)		5.25			5-1-2024		1,735,000		1,754,571
Meeker County MN Memorial Hospital Project Series 2007 (Health Revenue)		5.63			11-1-2022		800,000		815,264
Minneapolis & St. Paul MN Housing & RDA Children’s Health Care Facilities Series A (Health Revenue)		5.25			8-15-2025		1,000,000		1,102,670
Minneapolis & St. Paul MN Housing & RDA Children’s Health Care Facilities Series A (Health Revenue)		5.25			8-15-2035		1,000,000		1,097,620
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.95			11-15-2017		820,000		815,900
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series 2014A (Airport Revenue)		5.00			1-1-2029		500,000		564,420
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series 2014B (Airport Revenue)		5.00			1-1-2026		500,000		558,055
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series B (Airport Revenue, National Insured)		5.00			1-1-2018		1,000,000		1,000,110
Minneapolis MN Charter School Yinghua Academy Project Series 2013A (Education Revenue)		5.00			7-1-2023		300,000		312,840
Minneapolis MN Development Limited Tax Supported Common Bond Series 2A (Miscellaneous Revenue)		5.00			6-1-2028		1,115,000		1,122,560
Minneapolis MN Development Limited Tax Supported Common Bond Series 2A (Miscellaneous Revenue)		6.00			12-1-2040		1,000,000		1,131,040
Minneapolis MN Fairview Health Services Series A (Health Revenue, AGM Insured)		6.63			11-15-2028		1,000,000		1,098,650
Minneapolis MN Health Care System Fairview Health Services Series 2015A (Health Revenue)		5.00			11-15-2033		2,000,000		2,253,100
Minneapolis MN Health Care System Revenue Prerefunded Bond (Health Revenue, AGC Insured)		6.50			11-15-2038		345,000		378,237

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Minnesota Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Minneapolis MN Health Care System Revenue Unrefunded Bond (Health Revenue, AGC Insured)		6.50	%		11-15-2038	$	1,890,000	$	2,039,197
Minneapolis MN Plymouth Stevens House Project Series A (Housing Revenue)		1.00			12-1-2017		1,000,000		996,870
Minneapolis MN Seward Towers Apartments Project Series A (Housing Revenue)		1.10			1-1-2018		2,000,000		1,995,240
Minneapolis MN Student Housing Riverton Community Housing Project Series 2014 (Housing Revenue)		5.00			8-1-2032		860,000		839,953
Minneapolis St Paul MN Metropolitan Airport Commission Series 2016D (Airport Revenue)		5.00			1-1-2041		250,000		273,465
Minneapolis St. Paul MN Metropolitan Airport Commission Series 2016C (Airport Revenue)		5.00			1-1-2046		1,000,000		1,134,710
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series C1 (Health Revenue, AGC Insured)		4.00			2-15-2020		50,000		53,206
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series C1 (Health Revenue, AGC Insured)		5.00			2-15-2030		2,000,000		2,144,360
Minnesota Agricultural & Economic Development Board Health Care Essentia Health Series E (Health Revenue, AGC Insured)		5.00			2-15-2037		4,030,000		4,128,292
Minnesota Certificate of Participation Legislative Office Facility Project Series 2014 (Miscellaneous Revenue)		5.00			6-1-2023		435,000		505,070
Minnesota General Fund Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2027		2,000,000		2,248,580
Minnesota General Fund Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2028		2,000,000		2,269,920
Minnesota General Fund Appropriation Bonds Series 2012B (Miscellaneous Revenue)		5.00			3-1-2029		2,000,000		2,264,000
Minnesota General Fund Appropriation Bonds Series 2014A (Miscellaneous Revenue)		5.00			6-1-2033		1,000,000		1,126,540
Minnesota HEFAR Bethel University Series 6R (Education Revenue)		5.50			5-1-2025		1,535,000		1,543,489
Minnesota HEFAR Carleton College Series 7D (Education Revenue)		5.00			3-1-2030		2,000,000		2,123,880
Minnesota HEFAR College of St. Scholastica Series 7R (Education Revenue)		4.25			12-1-2027		400,000		412,984
Minnesota HEFAR Hamline University Series 7E (Education Revenue)		4.50			10-1-2021		300,000		312,969
Minnesota HEFAR Hamline University Series 7E (Education Revenue)		5.00			10-1-2029		500,000		518,645
Minnesota HEFAR St. Benedict College Series 7M (Education Revenue)		5.13			3-1-2036		275,000		290,397
Minnesota HEFAR St. Benedict College Series 7V (Education Revenue)		5.00			3-1-2018		635,000		659,028
Minnesota HEFAR St. Olaf College Series Eight-N (Education Revenue)		4.00			10-1-2025		220,000		241,571
Minnesota HEFAR St. Olaf College Series Eight-N (Education Revenue)		4.00			10-1-2026		100,000		109,572
Minnesota HEFAR St. Olaf College Series Eight-N (Education Revenue)		4.00			10-1-2027		110,000		119,359
Minnesota HEFAR St. Olaf College Series Eight-N (Education Revenue)		4.50			10-1-2030		500,000		540,290
Minnesota HEFAR St. Thomas University Series 7U (Education Revenue)		5.00			4-1-2023		750,000		863,528
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2024		750,000		870,000
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2028		920,000		1,069,077
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2029		750,000		865,635
Minnesota HEFAR St. Thomas University Series 8-L (Education Revenue)		5.00			4-1-2035		750,000		839,483
Minnesota Housing Finance Agency MFHR Series 2016 (Housing Revenue) ±		0.70			2-1-2019		2,000,000		1,999,220
Minnesota Housing Finance Agency Residential Housing Series 2007Q (Housing Revenue)		5.25			7-1-2033		625,000		628,850
Minnesota Housing Finance Agency Residential Housing Series 2009E (Housing Revenue)		4.20			7-1-2021		955,000		974,329
Minnesota Housing Finance Agency Residential Housing Series 2012D (Housing Revenue, GNMA/FNMA/FHLMC Insured)		4.00			7-1-2040		635,000		655,580
Minnesota Housing Finance Agency Series 2009B (Housing Revenue)		5.90			7-1-2028		25,000		25,761
Minnesota Housing Finance Agency Series 2015A (Housing Revenue)		5.00			8-1-2027		1,665,000		1,933,614
Minnesota Housing Finance Agency State Appropriation Bonds Series 2015A (Housing Revenue)		5.00			8-1-2032		500,000		568,475
Minnesota Municipal Power Agency Series 2007 (Utilities Revenue)		5.00			10-1-2037		1,200,000		1,227,180

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

10 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Minnesota Municipal Power Agency Series 2010A & Series 2010B (Utilities Revenue)		5.00	%		10-1-2025	$	2,335,000	$	2,545,407
Minnesota Prerefunded Bond (GO Revenue)		5.00			8-1-2022		100,000		102,395
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00			2-1-2022		175,000		198,475
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00			2-1-2023		185,000		212,787
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00			2-1-2024		195,000		223,178
Minnetonka MN Independent School District #276 Series F (Miscellaneous Revenue)		5.00			2-1-2025		205,000		236,818
Mounds View MN Independent School District #621 Series A (GO Revenue, South Dakota Credit Program Insured)		4.00			2-1-2022		530,000		558,827
Northeastern Minnesota Metropolitan Intermediate School District #916 Certificate of Participation Series 2013A (Miscellaneous Revenue)		4.00			2-1-2024		1,100,000		1,180,476
Northeastern Minnesota Metropolitan Intermediate School District #916 Certificate of Participation Series 2015B (Miscellaneous Revenue)		5.00			2-1-2034		1,000,000		1,113,760
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2018		820,000		850,881
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2021		50,000		51,705
Northern Minnesota Municipal Power Agency Series 2013A (Utilities Revenue)		4.00			1-1-2028		450,000		473,792
Northern Minnesota Municipal Power Agency Series 2016 (Utilities Revenue)		5.00			1-1-2030		520,000		597,537
Northern Minnesota Municipal Power Agency Series 2016 (Utilities Revenue)		5.00			1-1-2031		350,000		400,708
Otsego MN Charter School Kaleidoscope Charter School Project Series 2014A (Education Revenue)		4.15			9-1-2024		600,000		601,536
Otsego MN Charter School Kaleidoscope Charter School Project Series 2014A (Education Revenue)		5.00			9-1-2034		1,100,000		1,122,396
Plymouth MN Certificate of Participation Intermediate School District #287 Series A (Miscellaneous Revenue)		5.00			2-1-2024		250,000		268,250
Plymouth MN Intermediate School District #287 Certificate of Participation Series 2016A (Miscellaneous Revenue)		4.00			5-1-2027		500,000		532,825
Plymouth MN Intermediate School District #287 Certificate of Participation Series 2016A (Miscellaneous Revenue)		4.00			5-1-2026		500,000		536,755
Red Wing MN Senior Housing Deer Crest Project Series A (Health Revenue)		5.00			11-1-2032		660,000		676,394
Red Wing MN Senior Housing Deer Crest Project Series A (Health Revenue)		5.00			11-1-2042		560,000		561,086
Rice County MN Educational Facilities Shattuck-St. Mary’s School Project (Education Revenue) 144A		5.00			8-1-2022		990,000		1,032,540
Rochester MN Electric Utility Revenue Series 2007C (Utilities Revenue)		5.00			12-1-2030		355,000		355,937
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2023		815,000		959,997
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2025		315,000		368,802
Rochester MN Electric Utility Revenue Series 2013B (Utilities Revenue)		5.00			12-1-2026		250,000		291,323
Rochester MN HCFR Mayo Clinic Series 2011 (Health Revenue) ±		4.50			11-15-2038		200,000		221,834
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		1,473,050
Shakopee MN St. Francis Regional Medical Center Series 2014 (Health Revenue)		5.00			9-1-2027		700,000		792,687
Shakopee MN St. Francis Regional Medical Center Series 2014 (Health Revenue)		5.00			9-1-2029		725,000		809,267
South St. Paul MN Housing & RDA Airport Project Series 2007 (Industrial Development Revenue, AGC Insured)		4.70			9-1-2019		230,000		230,610
South St. Paul MN Housing & RDA Airport Project Series 2007 (Industrial Development Revenue, AGC Insured)		5.13			9-1-2029		500,000		501,615
Southern Minnesota Municipal Power Agency Series 1994A (Utilities Revenue, National Insured) ¤		0.00			1-1-2020		5,100,000		4,778,547
Southern Minnesota Municipal Power Agency Series 2009A (Utilities Revenue)		5.25			1-1-2030		2,000,000		2,154,860
St. Cloud MN Charter School Lease Revenue Bonds Stride Academy Project Series 2016A (Miscellaneous Revenue)		5.00			4-1-2036		750,000		654,143

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Minnesota Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
St. Cloud MN Health Care Revenue Bonds Series 2016A (Health Revenue)		5.00	%		5-1-2030	$	2,000,000	$	2,302,420
St. Cloud MN Health Care Revenue Bonds Series 2016A (Health Revenue)		5.00			5-1-2031		2,000,000		2,293,700
St. Cloud MN Health Care Unrefunded Revenue Bonds CentraCare Health (Health Revenue)		5.13			5-1-2030		125,000		135,980
St. Louis Park MN Nicollett Health Services Series 2009 (Health Revenue)		5.50			7-1-2029		1,000,000		1,098,930
St. Paul MN Housing & RDA Allina Health Systems Series A1 (Health Revenue)		5.00			11-15-2024		2,350,000		2,561,289
St. Paul MN Housing & RDA Charter School Hmog College Preparatory Academy Project Series 2016A (Education Revenue)		5.25			9-1-2031		1,000,000		988,850
St. Paul MN Housing & RDA Charter School Lease Revenue German Immersion School Project Series 2013A (Education Revenue)		4.00			7-1-2023		250,000		249,150
St. Paul MN Housing & RDA Charter School Lease Revenue Twin Cities Academy Project Series 2015A (Education Revenue)		5.00			7-1-2035		925,000		910,737
St. Paul MN Housing & RDA Charter School Nova Classical Academy Project Series 2011A (Miscellaneous Revenue)		6.63			9-1-2042		865,000		1,040,742
St. Paul MN Housing & RDA Health Care Facilities Refunding Bonds Series 2015A (Health Revenue)		5.00			7-1-2025		250,000		292,395
St. Paul MN Housing & RDA HealthEast Care Systems Project Series 2015A (Health Revenue)		4.00			11-15-2017		550,000		562,557
St. Paul MN Housing & RDA HealthEast Care Systems Project Series 2015A (Health Revenue)		5.00			11-15-2027		1,000,000		1,108,520
St. Paul MN Housing & RDA HealthPartners Obligated Group Series 2015A (Health Revenue)		5.00			7-1-2031		2,010,000		2,266,315
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		5.75			9-1-2026		650,000		651,138
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		6.00			9-1-2036		500,000		500,920
St. Paul MN Housing & RDA Hope Community Academy Project Series 2015A (Education Revenue)		5.00			12-1-2034		1,645,000		1,710,333
St. Paul MN Housing & RDA Parking Facilities Project Series A (Transportation Revenue)		5.00			8-1-2035		875,000		931,595
St. Paul MN Housing & RDA St. Paul Academy & Summit School Project (Education Revenue)		5.00			10-1-2024		2,000,000		2,051,780
St. Paul MN Housing & RDA St. Paul Conservatory for Performing Artists Series A (Education Revenue)		4.00			3-1-2028		150,000		146,555
St. Paul MN Housing RDA Healtheast Care System Project Series 2015A (Health Revenue)		5.00			11-15-2025		1,000,000		1,080,710
St. Paul MN Port Authority Lease Revenue Freeman Office Building Series 2 (Miscellaneous Revenue)		5.00			12-1-2024		2,000,000		2,318,700
Todd County MN United Hospital District BAN Lakewood Health System Series A (Health Revenue)		1.30			12-1-2018		1,000,000		993,810
University of Minnesota Series 2009A (Education Revenue)		5.00			4-1-2021		1,180,000		1,267,993
University of Minnesota Series 2009A (Education Revenue)		5.13			4-1-2034		1,000,000		1,071,570
University of Minnesota State Supported Biomedical Science Series 2011B (Education Revenue)		5.00			8-1-2036		1,000,000		1,108,470
Virginia MN Housing & RDA HCFR Series 2005 (Miscellaneous Revenue)		5.25			10-1-2025		2,085,000		2,088,878
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2027		1,565,000		1,788,388
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2030		1,000,000		1,128,440
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2031		1,000,000		1,161,910
Western Minnesota Municipal Power Agency Series A (Utilities Revenue)		5.00			1-1-2032		1,250,000		1,413,588
Willmar MN Rice Memorial Hospital Project Series 2012A (GO Revenue)		5.00			2-1-2026		1,000,000		1,109,300
Winona MN Health Care Facilities Refunding Bond Series 2012 (Health Revenue)		3.00			7-1-2018		295,000		299,257
Winona MN Health Care Facilities Refunding Bond Series 2012 (Health Revenue)		5.00			7-1-2034		500,000		525,040
Woodbury MN Charter School Series A (Education Revenue)		3.15			12-1-2018		190,000		192,405

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

12 Wells Fargo Minnesota Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Minnesota (continued)
Woodbury MN Charter School Series A (Education Revenue)		3.90	%		12-1-2022	$	220,000	$	226,444
Woodbury MN Charter School Series A (Education Revenue)		5.00			12-1-2027		215,000		225,533
Woodbury MN Charter School Series A (Education Revenue)		5.00			12-1-2032		220,000		228,664
									149,592,231
Puerto Rico: 0.01%
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		20,000
Virgin Islands: 0.34%
Virgin Islands PFA Matching Fund Loan Notes Senior Lien Series B (Tobacco Revenue, AGM Insured)		5.00			10-1-2025		500,000		535,545
Total Municipal Obligations (Cost $150,468,113)									153,433,496

Total investments in securities (Cost $150,468,113) *	98.48	%		153,433,496
Other assets and liabilities, net	1.52			2,362,813
Total net assets	100.00	%	$	155,796,309

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

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

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

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

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

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

* Cost for federal income tax purposes is $150,466,295 and unrealized gains (losses) consists of:

Gross unrealized gains	$	4,272,479
Gross unrealized losses		(1,305,278	)
Net unrealized gains	$	2,967,201

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo Minnesota Tax-Free Fund 13

Assets
Investment in unaffiliated securities, at value (cost $150,468,113)	$	153,433,496
Cash		2,726,816
Receivable for investments sold		90,124
Receivable for Fund shares sold		203,346
Receivable for interest		2,038,668
Prepaid expenses and other assets		27,861
Total assets		158,520,311
Liabilities
Distributions payable		107,125
Payable for Fund shares redeemed		2,457,831
Management fee payable		23,858
Distribution fee payable		6,614
Administration fees payable		17,453
Accrued expenses and other liabilities		111,121
Total liabilities		2,724,002
Total net assets	$	155,796,309
NET ASSETS CONSIST OF
Paid-in capital	$	152,258,062
Undistributed net investment income		625,178
Accumulated net realized losses on investments		(52,314	)
Net unrealized gains on investments		2,965,383
Total net assets	$	155,796,309
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	42,207,547
Shares outstanding – Class A1		3,994,788
Net asset value per share – Class A		$10.57
Maximum offering price per share – Class A2		$11.07
Net assets – Class C	$	9,661,703
Shares outstanding – Class C1		914,473
Net asset value per share – Class C		$10.57
Net assets – Administrator Class	$	99,382,458
Shares outstanding – Administrator Class1		9,409,116
Net asset value per share – Administrator Class		$10.56
Net assets – Institutional Class	$	4,544,601
Shares outstanding – Institutional Class1		429,941
Net asset value per share – Institutional Class		$10.57

¹  The Fund has an unlimited number of authorized shares.

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

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

14 Wells Fargo Minnesota Tax-Free Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Interest	$	3,199,879
Expenses
Management fee		365,518
Administration fees
Class A		36,362
Class C		8,467
Administrator Class		62,801
Institutional Class		448	1
Shareholder servicing fees
Class A		56,816
Class C		13,229
Administrator Class		157,002
Distribution fee
Class C		39,687
Custody and accounting fees		4,481
Professional fees		41,350
Registration fees		30,080
Shareholder report expenses		15,114
Trustees’ fees and expenses		34,233
Other fees and expenses		3,004
Total expenses		868,592
Less: Fee waivers and/or expense reimbursements		(211,032	)
Net expenses		657,560
Net investment income		2,542,319
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		419,629
Net change in unrealized gains (losses) on investments		(8,301,377	)
Net realized and unrealized gains (losses) on investments		(7,881,748	)
Net decrease in net assets resulting from operations	$	(5,339,429	)

¹  For the period from October 31, 2016 (commencement of operations) to December 31, 2016

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

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

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	2,542,319					$	5,318,450
Net realized gains on investments					419,629						288,003
Net change in unrealized gains (losses) on investments					(8,301,377	)					4,267,904
Net increase (decrease) in net assets resulting from operations					(5,339,429	)					9,874,357
Distributions to shareholders from
Net investment income
Class A					(602,764	)					(1,342,912	)
Class C					(100,721	)					(223,290	)
Administrator Class					(1,821,780	)					(3,752,248	)
Institutional Class					(17,054	)1					N/A
Net realized gains
Class A					(181,495	)					(15,554	)
Class C					(42,362	)					(3,355	)
Administrator Class					(459,088	)					(39,659	)
Institutional Class					(21,534	)1					N/A
Total distributions to shareholders					(3,246,798	)					(5,377,018	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		302,273			3,311,895			361,762			3,948,616
Class C		68,974			757,314			96,385			1,052,616
Administrator Class		2,167,944			23,486,229			2,631,468			28,640,215
Institutional Class		491,069	1		5,229,201	1		N/A			N/A
					32,784,639						33,641,447
Reinvestment of distributions
Class A		70,828			763,301			123,205			1,342,193
Class C		13,205			142,031			20,786			226,424
Administrator Class		152,650			1,646,440			241,208			2,627,645
Institutional Class		3,580	1		37,834	1		N/A			N/A
					2,589,606						4,196,262
Payment for shares redeemed
Class A		(482,551	)		(5,232,039	)		(592,484	)		(6,450,893	)
Class C		(103,383	)		(1,104,001	)		(114,142	)		(1,239,380	)
Administrator Class		(4,159,508	)		(44,253,735	)		(1,961,032	)		(21,337,031	)
Institutional Class		(64,708	)1		(682,064	)1		N/A			N/A
					(51,271,839	)					(29,027,304	)
Net increase (decrease) in net assets resulting from capital share transactions					(15,897,594	)					8,810,405
Total increase (decrease) in net assets					(24,483,821	)					13,307,744
Net assets
Beginning of period					180,280,130						166,972,386
End of period				$	155,796,309					$	180,280,130
Undistributed net investment income				$	625,178					$	625,178

¹  For the period from October 31, 2016 (commencement of operations) to December 31, 2016

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

16 Wells Fargo Minnesota Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.07			$10.79			$10.86			$10.74			$11.08			$10.68
Net investment income		0.15			0.33			0.33			0.35			0.32			0.37
Net realized and unrealized gains (losses) on investments		(0.45	)		0.28			(0.04	)		0.20			(0.31	)		0.55
Total from investment operations		(0.30	)		0.61			0.29			0.55			0.01			0.92
Distributions to shareholders from
Net investment income		(0.15	)		(0.33	)		(0.33	)		(0.35	)		(0.32	)		(0.37	)
Net realized gains		(0.05	)		(0.00	)1		(0.03	)		(0.08	)		(0.03	)		(0.15	)
Total distributions to shareholders		(0.20	)		(0.33	)		(0.36	)		(0.43	)		(0.35	)		(0.52	)
Net asset value, end of period		$10.57			$11.07			$10.79			$10.86			$10.74			$11.08
Total return2		(2.81	)%		5.74	%		2.72	%		5.29	%		(0.01	)%		8.80	%
Ratios to average net assets (annualized)
Gross expenses		0.95	%		0.89	%		0.89	%		0.89	%		0.88	%		0.89	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		2.65	%		2.99	%		3.03	%		3.28	%		2.87	%		3.35	%
Supplemental data
Portfolio turnover rate		9	%3		16	%3		20	%3		15	%3		14	%3		36	%
Net assets, end of period (000s omitted)		$42,208			$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. Returns for periods of less than one year are not annualized.

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

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

Financial highlights Wells Fargo Minnesota Tax-Free Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.07			$10.79			$10.86			$10.74			$11.08			$10.68
Net investment income		0.11			0.24			0.25			0.27			0.24			0.28
Net realized and unrealized gains (losses) on investments		(0.45	)		0.28			(0.04	)		0.20			(0.31	)		0.55
Total from investment operations		(0.34	)		0.52			0.21			0.47			(0.07	)		0.83
Distributions to shareholders from
Net investment income		(0.11	)		(0.24	)		(0.25	)		(0.27	)		(0.24	)		(0.28	)
Net realized gains		(0.05	)		(0.00	)1		(0.03	)		(0.08	)		(0.03	)		(0.15	)
Total distributions to shareholders		(0.16	)		(0.24	)		(0.28	)		(0.35	)		(0.27	)		(0.43	)
Net asset value, end of period		$10.57			$11.07			$10.79			$10.86			$10.74			$11.08
Total return2		(3.18	)%		4.95	%		1.96	%		4.50	%		(0.76	)%		7.99	%
Ratios to average net assets (annualized)
Gross expenses		1.70	%		1.64	%		1.64	%		1.64	%		1.63	%		1.64	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		1.90	%		2.24	%		2.28	%		2.53	%		2.12	%		2.58	%
Supplemental data
Portfolio turnover rate		9	%3		16	%3		20	%3		15	%3		14	%3		36	%
Net assets, end of period (000s omitted)		$9,662			$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. Returns for periods of less than one year are not annualized.

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

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

18 Wells Fargo Minnesota Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.07			$10.78			$10.86			$10.74			$11.07			$10.68
Net investment income		0.16			0.35			0.36			0.38			0.35			0.39
Net realized and unrealized gains (losses) on investments		(0.46	)		0.29			(0.05	)		0.20			(0.30	)		0.54
Total from investment operations		(0.30	)		0.64			0.31			0.58			0.05			0.93
Distributions to shareholders from
Net investment income		(0.16	)		(0.35	)		(0.36	)		(0.38	)		(0.35	)		(0.39	)
Net realized gains		(0.05	)		(0.00	)1		(0.03	)		(0.08	)		(0.03	)		(0.15	)
Total distributions to shareholders		(0.21	)		(0.35	)		(0.39	)		(0.46	)		(0.38	)		(0.54	)
Net asset value, end of period		$10.56			$11.07			$10.78			$10.86			$10.74			$11.07
Total return2		(2.78	)%		6.10	%		2.88	%		5.55	%		0.32	%		8.97	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.83	%		0.83	%		0.83	%		0.82	%		0.83	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		2.90	%		3.24	%		3.28	%		3.53	%		3.11	%		3.59	%
Supplemental data
Portfolio turnover rate		9	%3		16	%3		20	%3		15	%3		14	%3		36	%
Net assets, end of period (000s omitted)		$99,382			$124,485			$111,475			$98,483			$98,992			$109,637

¹  Amount is less than $0.005.

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

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

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

Financial highlights Wells Fargo Minnesota Tax-Free Fund 19

(For a share outstanding throughout the period)

	Period ended December 31, 20161 (unaudited)
INSTITUTIONAL CLASS
Net asset value, beginning of period		$10.88
Net investment income		0.05
Net realized and unrealized gains (losses) on investments		(0.26	)
Total from investment operations		(0.21	)
Distributions to shareholders from
Net investment income		(0.05	)
Net realized gains		(0.05	)
Total distributions to shareholders		(0.10	)
Net asset value, end of period		$10.57
Total return2		(1.95	)%
Ratios to average net assets (annualized)
Gross expenses		0.63	%
Net expenses		0.52	%
Net investment income		3.04	%
Supplemental data
Portfolio turnover rate		9	%
Net assets, end of period (000s omitted)		$4,545

¹  For the period from October 31, 2016 (commencement of operations) to December 31, 2016

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

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

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo 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 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 which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

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

When-issued transactions

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

Security transactions and income recognition

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

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

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

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:

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	153,433,496	$	0	$	153,433,496

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment

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

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 six months ended December 31, 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
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, 2017 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, 0.60% for Administrator Class shares, and 0.52% 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $7 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,049 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $2,050 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 $14,871,288 and $31,676,311, respectively.

Notes to financial statements (unaudited) Wells Fargo Minnesota 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 $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

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

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

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

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Minnesota 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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo Minnesota Tax-Free Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300481 02-17 SA252/SAR252 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo Municipal Bond Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Summary portfolio of investments*	7
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	21
Other information	26
List of abbreviations	29

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

The views expressed and any forward-looking statements are as of December 31, 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)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Municipal Bond Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(4.32	)		3.48		4.28		0.17			4.44		4.76		0.79		0.75
Class C (WMFCX)	4-8-2005		(1.57	)		3.66		3.98		(0.57	)		3.66		3.98		1.54		1.50
Administrator Class (WMFDX)	4-8-2005		–			–		–		0.42			4.59		4.95		0.73		0.60
Institutional Class (WMBIX)	3-31-2008		–			–		–		0.46			4.74		5.03		0.46		0.46
Bloomberg Barclays Municipal Bond Index4	–		–			–		–		0.25			3.28		4.25		–		–

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

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

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

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

Effective maturity distribution as of December 31, 2016⁵

Credit quality as of December 31, 2016⁶

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, 2017, 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 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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  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  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 Municipal Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	962.43	$	3.70		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.37	$	3.81		0.75	%
Class C
Actual	$	1,000.00	$	959.68	$	7.39		1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.61		1.50	%
Administrator Class
Actual	$	1,000.00	$	964.10	$	2.96		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	963.83	$	2.27		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.82	$	2.34		0.46	%

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 7

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

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Corporate Bonds and Notes: 0.61%
Consumer Discretionary: 0.61%
Diversified Consumer Services: 0.61%
Toll Road Investors Partnership II 144A¤		0.00	%		2-15-2028	$	30,780,000	$	15,545,778		0.61	%
Total Corporate Bonds and Notes (Cost $15,840,313)									15,545,778		0.61
Municipal Obligations: 99.25%
Alabama: 2.05%
Alabama Federal Aid Highway Finance Authority Series A (Tax Revenue)		5.00			9-1-2035		19,000,000		22,029,740		0.86
Other securities									30,616,452		1.19
									52,646,192		2.05
Alaska: 0.27%
Other securities									7,012,074		0.27
Arizona: 1.09%
Other securities									28,055,139		1.09
California: 7.52%
Bay Area CA Toll Authority Toll Bridge Series A (Transportation Revenue) ±		1.97			4-1-2036		28,000,000		28,106,960		1.09
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		6.13			11-1-2029		15,925,000		19,657,661		0.76
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.29			7-1-2027		27,660,000		24,622,655		0.96
Other securities									121,218,661		4.71
									193,605,937		7.52
Colorado: 2.89%
Colorado ECFA (Various Revenue)		5.50-8.13			10-1-2017 to 9-1-2048		27,515,000		29,024,282		1.13
Colorado Health Facilities Authority Catholic Health Initiative Series 2009A (Health Revenue)		5.00			7-1-2039		14,100,000		14,452,923		0.56
Other securities									30,864,136		1.20
									74,341,341		2.89
Connecticut: 0.64%
Other securities									16,477,162		0.64
Delaware: 0.38%
Other securities									9,840,167		0.38
District of Columbia: 0.23%
Other securities									5,960,100		0.23

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

8 Wells Fargo Municipal Bond Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Florida: 3.90%
Florida Development Finance Corporation Educational Facilities Renaissance Charter School Project Series A (Education Revenue)		8.50	%		6-15-2044	$	13,290,000	$	15,214,924		0.59	%
Miami-Dade County FL School District (GO Revenue)		5.00			3-15-2046		25,000,000		27,392,750		1.07
Other securities									57,784,916		2.24
									100,392,590		3.90
Georgia: 0.38%
Other securities									9,777,258		0.38
Guam: 0.16%
Other securities									4,075,969		0.16
Hawaii: 0.12%
Other securities									3,067,284		0.12
Idaho: 0.69%
Other securities									17,841,643		0.69
Illinois: 19.70%
Chicago IL (Various Revenue)		0.00-5.56			1-1-2021 to 1-1-2038		74,125,000		67,728,063		2.64
Chicago IL Board of Education (GO Revenue, AGM Insured)		0.00-5.25			12-1-2020 to 12-1-2031		57,930,000		35,947,957		1.40
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2028		24,270,000		13,409,175		0.52
Chicago IL O’Hare International Airport (Airport Revenue) µ		5.00-5.75			1-1-2025 to 1-1-2044		30,290,000		33,748,429		1.32
Chicago IL Series A (GO Revenue)		5.50			1-1-2033		12,730,000		12,245,496		0.48
Cook County IL (GO Revenue) µ		5.00-5.25			11-15-2022 to 11-15-2027		9,705,000		10,707,128		0.41
Cook County IL Series G (GO Revenue)		5.00			11-15-2028		27,000,000		28,663,470		1.11
Illinois (Various Revenue) µ		5.00-6.00			4-1-2021 to 7-1-2038		50,770,000		53,119,177		2.04
Illinois Finance Authority (Various Revenue) µ		4.13-7.13			9-1-2018 to 10-1-2041		38,225,000		41,798,572		1.62
Illinois Sports Facilities Authority (Tax Revenue) µ		0.00-5.25			6-15-2021 to 6-15-2032		37,945,000		37,720,758		1.46
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		17,510,000		12,883,508		0.50
Kane-Cook-DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		15,025,000		12,447,311		0.48
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2026 to 12-15-2035		44,200,000		21,885,544		0.85
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2029		33,800,000		18,706,610		0.73
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue)		5.75			4-1-2038		14,000,000		15,334,200		0.60
Other securities									90,720,169		3.54
									507,065,567		19.70

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Indiana: 1.96%
Indiana Finance Authority (Various Revenue)		3.13-5.25	%		12-1-2024 to 7-1-2040	$	30,790,000	$	30,928,834		1.21	%
Other securities									19,382,445		0.75
									50,311,279		1.96
Iowa: 0.08%
Other securities									2,052,556		0.08
Kansas: 1.19%
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		30,585,070		1.19
Other securities									40,302		0.00
									30,625,372		1.19
Kentucky: 1.62%
Kentucky EDFA (Various Revenue) µ		0.00-5.00			10-1-2024 to 7-1-2040		17,505,000		13,791,005		0.54
Kentucky EDFA Catholic Health Initiatives Series B (Health Revenue) ±		2.12			2-1-2046		22,715,000		22,371,322		0.87
Other securities									5,630,065		0.21
									41,792,392		1.62
Louisiana: 0.95%
Other securities									24,486,066		0.95
Maine: 0.08%
Other securities									2,058,036		0.08
Maryland: 0.65%
Other securities									16,656,602		0.65
Massachusetts: 0.79%
Other securities									20,362,362		0.79
Michigan: 7.51%
Detroit MI Water Supply System Second Lien Series B (Water & Sewer Revenue, AGM Insured)		7.00			7-1-2036		9,675,000		10,941,554		0.42
Great Lakes Michigan Water Authority Sewage Disposal System Series 2016C		5.00			7-2-2036		8,500,000		9,250,635		0.36
Great Lakes Michigan Water Authority Water Supply System Series 2016D (Water & Sewer Revenue)		4.00			7-1-2032		11,000,000		11,069,300		0.43
Great Lakes Michigan Water Authority Water Supply System Series 2016D (Water & Sewer Revenue, AGM Insured)		4.00			7-1-2033		11,000,000		11,086,680		0.43
Michigan Finance Authority (Various Revenue) µ		4.50-8.25			10-1-2020 to 10-1-2040		58,580,000		64,121,380		2.50
Michigan Finance Authority Refunding Bond Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		12,625,000		13,419,491		0.52

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

10 Wells Fargo Municipal Bond Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Michigan (continued)
Michigan Strategic Fund Limited Obligation Events Bonds Center Project Series A (Tax Revenue) ±		4.13	%		7-1-2045	$	15,500,000	$	15,693,750		0.61	%
Other securities									57,719,045		2.24
									193,301,835		7.51
Mississippi: 0.36%
Other securities									9,125,445		0.36
Missouri: 0.62%
Other securities									16,039,862		0.62
Nebraska: 0.04%
Other securities									1,109,495		0.04
Nevada: 0.05%
Other securities									1,180,766		0.05
New Jersey: 5.99%
New Jersey EDA (Various Revenue)		1.97-5.00			9-1-2025 to 10-1-2040		14,695,000		14,465,931		0.56
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		2.27			9-1-2027		22,245,000		20,704,756		0.80
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue)		5.00			3-1-2026		15,000,000		15,457,950		0.60
New Jersey TTFA (Transportation Revenue)		6.00			12-15-2038		10,425,000		11,062,385		0.43
New Jersey TTFA (Transportation Revenue) 144A		0.00-5.75			6-15-2023 to 6-15-2044		49,640,000		42,210,216		1.64
New Jersey TTFA Series A (Various Revenue) µ		5.75			6-15-2025		10,000,000		11,551,400		0.45
Other securities									38,778,305		1.51
									154,230,943		5.99
New Mexico: 0.41%
Other securities									10,594,771		0.41
New York: 10.49%
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		8.25			2-1-2041		9,790,000		10,971,261		0.43
Metropolitan Transportation Authority New York Series A (Transportation Revenue)		5.00			11-15-2030		16,000,000		18,092,000		0.70
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		6.50			11-15-2028		8,000,000		8,777,132		0.34
New York Dormitory Authority Series B (Tax Revenue)		5.75			3-15-2036		10,000,000		10,861,100		0.42
New York NY Municipal Water Finance Authority 2nd General Resolution Series AA (Water & Sewer Revenue)		5.00			6-15-2044		17,400,000		19,169,580		0.74
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.00			6-15-2044		30,265,000		33,599,295		1.31
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.25			6-15-2044		9,800,000		11,026,862		0.43

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New York (continued)
New York NY Municipal Water Finance Authority 2nd General Resolution Series DD (Water & Sewer Revenue)		6.00	%		6-15-2040	$	11,625,000	$	12,332,033		0.48	%
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.00			6-15-2038		36,650,000		37,210,745		1.45
New York NY Municipal Water Finance Authority (Water & Sewer Revenue)		5.00-5.75			6-15-2026 to 6-15-2040		8,255,000		8,971,548		0.35
New York NY Transitional Finance Authority (Various Revenue)		5.00-5.75			5-1-2033 to 1-15-2039		7,895,000		8,852,808		0.34
New York NY Transitional Finance Authority Future Tax Secured Subordinate Bonds Series A (Tax Revenue)		5.00			8-1-2031		17,075,000		19,803,073		0.77
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project Series 2016 (Airport Revenue)		5.00			8-1-2026		11,500,000		11,859,950		0.46
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A	��	4.20			2-1-2017		20,880,000		20,871,648		0.81
Other securities									37,445,385		1.46
									269,844,420		10.49
North Carolina: 0.71%
Other securities									18,287,340		0.71
Ohio: 2.53%
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Miscellaneous Revenue, AGM Insured)		5.00			12-31-2035		12,000,000		13,055,880		0.51
Other securities									52,026,584		2.02
									65,082,464		2.53
Oklahoma: 0.41%
Other securities									10,499,007		0.41
Oregon: 0.20%
Other securities									5,090,400		0.20
Pennsylvania: 8.67%
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		2.23			11-1-2039		20,000,000		20,155,000		0.78
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue) µ		5.75-7.75			7-1-2027 to 7-1-2032		8,925,000		11,511,167		0.45
Delaware Valley PA Regional Finance Authority Local Government Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		16,420,000		19,482,330		0.76
Montgomery County PA IDA Exelon Generation Company LLC Project Series A (Industrial Development Revenue) ±		2.55			12-1-2029		15,530,000		15,369,109		0.60

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

12 Wells Fargo Municipal Bond Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Pennsylvania (continued)
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50	%		10-1-2030	$	10,625,000	$	10,501,856		0.41	%
Pennsylvania EDFA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2034		14,275,000		15,104,663		0.59
State Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2022 to 6-1-2034		10,760,000		11,607,307		0.44
Pennsylvania Public School Building Authority Series DCL-016 (Miscellaneous Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		1.19			6-1-2023		15,685,000		15,685,000		0.61
Pennsylvania Turnpike Commission Motor License Series B-1 (Transportation Revenue)		5.00			12-1-2040		12,410,000		13,353,905		0.52
State Public School Building Authority Pennsylvania Philadelphia School District Project Series A (Miscellaneous Revenue)		5.00			6-1-2035		16,715,000		17,776,235		0.69
Other securities									72,620,256		2.82
									223,166,828		8.67
Puerto Rico: 0.16%
Other securities									4,176,219		0.16
Rhode Island: 0.21%
Other securities									5,463,070		0.21
South Carolina: 0.64%
Other securities									16,540,466		0.64
South Dakota: 0.29%
Other securities									7,329,964		0.29
Tennessee: 0.43%
Other securities									11,121,469		0.43
Texas: 6.39%
Houston Port Authority TX Series D-1 (GO Revenue)		5.00			10-1-2035		10,000,000		11,021,000		0.43
Texas Municipal Gas Acquisition & Supply Corporation (Utilities Revenue) µ		1.19-5.00			9-15-2017 to 12-15-2031		14,355,000		14,911,475		0.58
Texas Municipal Gas Acquisition & Supply Corporation Subordinated Lien Series C (Utilities Revenue) ±		2.02			12-15-2026		24,780,000		22,373,366		0.87
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		12,500,000		14,208,250		0.55
Other securities									101,838,617		3.96
									164,352,708		6.39
Utah: 0.54%
Other securities									13,843,623		0.54

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value			Percent of net assets
Vermont: 1.53%
Vermont Student Assistance Corporation Series B Class A-2 (Education Revenue) ±		3.94	%		12-3-2035	$	16,800,000	$	17,704,848			0.69	%
Vermont Student Assistance Corporation Series B Class B (Education Revenue) ±		1.62			6-2-2042		21,883,566		21,782,901			0.84
									39,487,749			1.53
Virgin Islands: 1.10%
Virgin Islands PFA (Various Revenue) µ		5.00			10-1-2018 to 10-1-2032		32,155,000		28,366,329			1.10
Virginia: 0.49%
Other securities									12,475,591			0.49
Washington: 1.33%
Other securities									34,236,745			1.33
West Virginia: 0.10%
Other securities									2,489,815			0.10
Wisconsin: 0.62%
Other securities									15,833,276			0.62
Wyoming: 0.09%
Other securities									2,309,470			0.09
Total Municipal Obligations (Cost $2,491,776,445)									2,554,083,158			99.25
	Yield					Shares
Short-Term Investments: 0.17%
Investment Companies: 0.17%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.67					4,425,767		4,428,423			0.17
Total Short-Term Investments (Cost $4,427,956)									4,428,423			0.17
Total investments in securities (Cost $2,512,044,714) *									2,574,057,359			100.03
Other assets and liabilities, net									(704,445	)		(0.03	)
Total net assets								$	2,573,352,914			100.00	%

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.

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.

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.

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

* Cost for federal income tax purposes is $2,512,483,411 and unrealized gains (losses) consists of:

Gross unrealized gains	$	109,113,140
Gross unrealized losses		(47,539,192	)
Net unrealized gains	$	61,573,948

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

14 Wells Fargo Municipal Bond Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $2,507,616,758)	$	2,569,628,936
In affiliated securities, at value (cost $4,427,956)		4,428,423
Total investments, at value (cost $2,512,044,714)		2,574,057,359
Receivable for investments sold		4,065,832
Receivable for Fund shares sold		10,975,962
Receivable for interest		29,066,221
Prepaid expenses and other assets		275,449
Total assets		2,618,440,823
Liabilities
Distributions payable		1,661,986
Payable for investments purchased		23,210,645
Payable for Fund shares redeemed		18,477,526
Management fee payable		786,385
Distribution fees payable		111,653
Administration fees payable		302,821
Accrued expenses and other liabilities		536,893
Total liabilities		45,087,909
Total net assets	$	2,573,352,914
NET ASSETS CONSIST OF
Paid-in capital	$	2,523,679,156
Overdistributed net investment income		(275,161	)
Accumulated net realized losses on investments		(12,063,726	)
Net unrealized gains on investments		62,012,645
Total net assets	$	2,573,352,914
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,358,700,565
Shares outstanding – Class A1		134,758,474
Net asset value per share – Class A		$10.08
Maximum offering price per share – Class A2		$10.55
Net assets – Class C	$	161,277,293
Shares outstanding – Class C1		15,999,528
Net asset value per share – Class C		$10.08
Net assets – Administrator Class	$	134,999,856
Shares outstanding – Administrator Class1		13,386,145
Net asset value per share – Administrator Class		$10.09
Net assets – Institutional Class	$	918,375,200
Shares outstanding – Institutional Class1		91,094,084
Net asset value per share – Institutional Class		$10.08

¹ The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 15

Investment income
Interest	$	53,080,625
Income from affiliated securities		21,633
Total investment income		53,102,258
Expenses
Management fee		5,308,329
Administration fees
Class A		1,195,557
Class B		271	1
Class C		146,733
Administrator Class		119,204
Institutional Class		403,010
Shareholder servicing fees
Class A		1,868,057
Class B		423	1
Class C		229,270
Administrator Class		298,011
Distribution fees
Class B		1,270	1
Class C		687,810
Custody and accounting fees		79,166
Professional fees		36,690
Registration fees		75,901
Shareholder report expenses		50,811
Trustees’ fees and expenses		186
Interest and fee expense		3,227
Other fees and expenses		18,194
Total expenses		10,522,120
Less: Fee waivers and/or expense reimbursements		(498,922	)
Net expenses		10,023,198
Net investment income		43,079,060
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(969,142	)
Affiliated securities		(2,960	)
Futures transactions		166,249
Net realized losses on investments		(805,853	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(151,216,905	)
Affiiliated securities		467
Futures transactions		1,814,832
Net change in unrealized gains (losses) on investments		(149,401,606	)
Net realized and unrealized gains (losses) on investments		(150,207,459	)
Net decrease in net assets resulting from operations	$	(107,128,399	)

¹  For the period from July 1, 2016 to December 5, 2016. At the close of business on December 5, 2016, existing Class B shareholders were converted to Class A shareholders. Effective December 6, 2016, Class B shares are no longer offered by the Fund.

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

16 Wells Fargo Municipal Bond Fund Statement of changes in net assets

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	43,079,060					$	91,385,117
Net realized gains (losses) on investments					(805,853	)					25,786,034
Net change in unrealized gains (losses) on investments					(149,401,606	)					117,272,072
Net increase (decrease) in net assets resulting from operations					(107,128,399	)					234,443,223
Distributions to shareholders from
Net investment income
Class A					(21,548,560	)					(49,506,305	)
Class B					(3,436	)1					(24,157	)
Class C					(1,955,544	)					(3,837,158	)
Administrator Class					(3,547,970	)					(8,790,709	)
Institutional Class					(16,027,772	)					(24,426,383	)
Investor Class					N/A						(4,799,469	)2
Net realized gains
Class A					(9,299,842	)					(9,166,267	)
Class B					0	1					(5,119	)
Class C					(1,129,371	)					(776,529	)
Administrator Class					(962,759	)					(1,141,943	)
Institutional Class					(6,674,052	)					(3,376,986	)
Total distributions to shareholders					(61,149,306	)					(105,851,025	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		6,625,362			68,735,910			64,653,820			669,764,488
Class B		0	1		0	1		27			279
Class C		956,414			10,041,825			3,347,238			35,008,106
Administrator Class		2,252,413			23,804,388			10,079,801			104,821,922
Institutional Class		29,388,063			304,837,158			55,658,632			579,421,682
Investor Class		N/A			N/A			1,789,189	2		18,389,280	2
					407,419,281						1,407,405,757
Reinvestment of distributions
Class A		2,648,445			27,332,446			5,096,119			53,145,243
Class B		313	1		3,298	1		2,442			25,421
Class C		251,624			2,589,886			375,341			3,915,284
Administrator Class		417,353			4,337,889			922,285			9,615,221
Institutional Class		1,712,227			17,665,532			1,934,077			20,220,148
Investor Class		N/A			N/A			339,015	2		3,486,525	2
					51,929,051						90,407,842
Payment for shares redeemed
Class A		(17,535,874	)		(182,027,110	)		(83,965,428	)		(877,180,351	)
Class B		(43,090	)1		(440,256	)1		(122,606	)		(1,277,115	)
Class C		(2,604,072	)		(26,881,014	)		(2,393,610	)		(24,976,011	)
Administrator Class		(14,541,883	)		(150,037,279	)		(23,257,159	)		(239,883,451	)
Institutional Class		(29,878,691	)		(306,302,875	)		(18,804,492	)		(196,444,238	)
Investor Class		N/A			N/A			(50,409,942	)2		(520,861,783	)2
					(665,688,534	)					(1,860,622,949	)
Net decrease in net assets resulting from capital share transactions					(206,340,202	)					(362,809,350	)
Total decrease in net assets					(374,617,907	)					(234,217,152	)
Net assets
Beginning of period					2,947,970,821						3,182,187,973
End of period				$	2,573,352,914					$	2,947,970,821
Overdistributed net investment income				$	(275,161	)				$	(270,939	)

¹  For the period from July 1, 2016 to December 5, 2016. At the close of business on December 5, 2016, existing Class B shareholders were converted to Class A shareholders. Effective December 6, 2016, Class B shares are no longer offered by the Fund.

²  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

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

Financial highlights Wells Fargo Municipal Bond Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.70			$10.25			$10.33			$10.00			$10.24			$9.54
Net investment income		0.15			0.31			0.28			0.33			0.27			0.37
Net realized and unrealized gains (losses) on investments		(0.55	)		0.50			0.01			0.40			(0.08	)		0.70
Total from investment operations		(0.40	)		0.81			0.29			0.73			0.19			1.07
Distributions to shareholders from
Net investment income		(0.15	)		(0.31	)		(0.28	)		(0.33	)		(0.27	)		(0.37	)
Net realized gains		(0.07	)		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.22	)		(0.36	)		(0.37	)		(0.40	)		(0.43	)		(0.37	)
Net asset value, end of period		$10.08			$10.70			$10.25			$10.33			$10.00			$10.24
Total return2		(3.76	)%		8.04	%		2.81	%		7.60	%		1.70	%		11.45	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%3		0.79	%3		0.80	%3		0.80	%3		0.80	%3		0.81	%3
Net expenses		0.75	%3		0.75	%3		0.75	%3		0.76	%3		0.75	%3		0.75	%3
Net investment income		2.88	%3		2.99	%3		2.71	%3		3.36	%3		2.56	%3		3.72	%3
Supplemental data
Portfolio turnover rate		6	%		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$1,358,701			$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. Returns for periods of less than one year are not annualized.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2016 (unaudited)	0.00	%
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.

18 Wells Fargo Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.69			$10.25			$10.33			$10.00			$10.23			$9.53
Net investment income		0.11			0.23			0.20			0.26			0.19			0.30
Net realized and unrealized gains (losses) on investments		(0.54	)		0.49			0.01			0.40			(0.07	)		0.70
Total from investment operations		(0.43	)		0.72			0.21			0.66			0.12			1.00
Distributions to shareholders from
Net investment income		(0.11	)		(0.23	)		(0.20	)		(0.26	)		(0.19	)		(0.30	)
Net realized gains		(0.07	)		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.18	)		(0.28	)		(0.29	)		(0.33	)		(0.35	)		(0.30	)
Net asset value, end of period		$10.08			$10.69			$10.25			$10.33			$10.00			$10.23
Total return2		(4.03	)%		7.14	%		2.05	%		6.80	%		1.04	%		10.63	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%3		1.54	%3		1.55	%3		1.55	%3		1.55	%3		1.56	%3
Net expenses		1.50	%3		1.50	%3		1.50	%3		1.51	%3		1.50	%3		1.50	%3
Net investment income		2.13	%3		2.24	%3		1.97	%3		2.60	%3		1.82	%3		2.95	%3
Supplemental data
Portfolio turnover rate		6	%		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$161,277			$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. Returns for periods of less than one year are not annualized.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2016 (unaudited)	0.00	%
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 19

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.70			$10.26			$10.34			$10.01			$10.24			$9.54
Net investment income		0.16			0.33			0.30			0.35			0.28			0.39
Net realized and unrealized gains (losses) on investments		(0.54	)		0.49			0.01			0.40			(0.07	)		0.69
Total from investment operations		(0.38	)		0.82			0.31			0.75			0.21			1.08
Distributions to shareholders from
Net investment income		(0.16	)		(0.33	)		(0.30	)		(0.35	)		(0.28	)		(0.38	)
Net realized gains		(0.07	)		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.23	)		(0.38	)		(0.39	)		(0.42	)		(0.44	)		(0.38	)
Net asset value, end of period		$10.09			$10.70			$10.26			$10.34			$10.01			$10.24
Total return2		(3.59	)%		8.10	%		2.97	%		7.75	%		1.96	%		11.62	%
Ratios to average net assets (annualized)
Gross expenses		0.73	%3		0.73	%3		0.73	%3		0.74	%3		0.74	%3		0.74	%3
Net expenses		0.60	%3		0.60	%3		0.60	%3		0.61	%3		0.60	%3		0.60	%3
Net investment income		2.98	%3		3.15	%3		2.86	%3		3.49	%3		2.72	%3		3.74	%3
Supplemental data
Portfolio turnover rate		6	%		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$135,000			$270,304			$384,884			$362,896			$451,005			$227,942

¹  Amount is less than $0.005.

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

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2016 (unaudited)	0.00	%
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.

20 Wells Fargo Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.70			$10.25			$10.33			$10.00			$10.24			$9.54
Net investment income		0.17			0.34			0.31			0.36			0.30			0.40
Net realized and unrealized gains (losses) on investments		(0.55	)		0.50			0.01			0.40			(0.08	)		0.70
Total from investment operations		(0.38	)		0.84			0.32			0.76			0.22			1.10
Distributions to shareholders from
Net investment income		(0.17	)		(0.34	)		(0.31	)		(0.36	)		(0.30	)		(0.40	)
Net realized gains		(0.07	)		(0.05	)		(0.09	)		(0.07	)		(0.16	)		(0.00	)1
Total distributions to shareholders		(0.24	)		(0.39	)		(0.40	)		(0.43	)		(0.46	)		(0.40	)
Net asset value, end of period		$10.08			$10.70			$10.25			$10.33			$10.00			$10.24
Total return2		(3.62	)%		8.35	%		3.11	%		7.90	%		2.00	%		11.76	%
Ratios to average net assets (annualized)
Gross expenses		0.46	%3		0.46	%3		0.47	%3		0.47	%3		0.47	%3		0.47	%3
Net expenses		0.46	%3		0.46	%3		0.47	%3		0.47	%3		0.47	%3		0.47	%3
Net investment income		3.18	%3		3.27	%3		3.02	%3		3.58	%3		2.85	%3		4.15	%3
Supplemental data
Portfolio turnover rate		6	%		16	%		27	%		37	%		54	%		63	%
Net assets, end of period (000s omitted)		$918,375			$961,289			$523,736			$255,112			$143,062			$151,285

¹  Amount is less than $0.005.

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

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

Six months ended December 31, 2016 (unaudited)	0.00	%
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 (unaudited) Wells Fargo Municipal Bond 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 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.

Effective December 6, 2016, Class B shares of the Fund are no longer offered. Information for Class B shares reflected in the financial statements represents activity through December 5, 2016.

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.

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.

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

Futures contracts

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

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

Inverse floating-rate obligations

The Fund may participate in inverse floating-rate obligation (“Inverse Floater”) structures whereby a fixed-rate bond (“Fixed-Rate Bond”) purchased by the Fund is transferred to a tender option bond trust (“TOB Trust”). The TOB Trust issues floating-rate notes (“Floating-Rate Notes”) to third-parties, which are collateralized by the Fixed-Rate Bond, and the Fund buys a residual interest in the TOB Trust’s assets and cash flows. The Inverse Floater held by the Fund gives the Fund the right (1) to cause the holders of the Floating-Rate Notes to tender their notes at par, and (2) to have the Fixed-Rate Bond held by the TOB Trust transferred back to the Fund, thereby collapsing the TOB Trust. The Fund accounts for the transaction described above as a secured borrowing by including the Fixed-Rate Bond in its 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.

Distributions to shareholders

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

Federal and other taxes

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

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

As of June 30, 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

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

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:

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

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

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 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	$	15,545,778	$	0	$	15,545,778
Municipal obligations		0		2,554,083,158		0		2,554,083,158
Short-term investments
Investment companies		4,428,423		0		0		4,428,423
Total assets	$	4,428,423	$	2,569,628,936	$	0	$	2,574,057,359

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 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.

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

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, 2017 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 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $45,290 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $8,295 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fees

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the six months ended December 31, 2016, Funds Distributor received $20,194 from the sale of Class A shares and $99 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $485,129,814 and $149,473,534, 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 six months ended December 31, 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 (unaudited) Wells Fargo Municipal Bond Fund 25

As of December 31, 2016, the Fund did not have any open futures contracts. The Fund had an average notional amount of $35,053,429 in short futures contracts during the six months ended December 31, 2016.

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

7. BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

During the six months ended December 31, 2016, the Fund participated in Inverse Floaters which are accounted for as a secured borrowing. During the six months ended December 31, 2016, the Fund held Floating-Rate Notes that had an average daily balance outstanding of $2,215,323 (on an annualized basis) and incurred interest and fee expense in the amount of $3,227.

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

26 Wells Fargo Municipal Bond Fund Other information (unaudited)

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Municipal Bond Fund 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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo Municipal Bond 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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300482 02-17 SA253/SAR253 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo
North Carolina Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	10
Statement of operations	11
Statement of changes in net assets	12
Financial highlights	13
Notes to financial statements	16
Other information	20
List of abbreviations	23

The views expressed and any forward-looking statements are as of December 31, 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)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo North Carolina Tax-Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(5.05	)		2.15		2.84		(0.59	)		3.10		3.32		0.96		0.85
Class C (ENCCX)	3-27-2002		(2.34	)		2.34		2.55		(1.34	)		2.34		2.55		1.71		1.60
Institutional Class (ENCYX)	2-28-1994		–			–		–		(0.29	)		3.42		3.62		0.63		0.54
Bloomberg Barclays Municipal Bond Index4	–		–			–		–		0.25			3.28		4.25		–		–
Bloomberg Barclays North Carolina Municipal Bond Index5	–		–			–		–		0.33			2.70		4.13		–		–

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

Effective maturity distribution as of December 31, 2016⁶

Credit quality as of December 31, 2016⁷

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, 2017, 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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 Bloomberg Barclays North Carolina Municipal Bond Index (formerly known as Barclays North Carolina Municipal Bond Index) is the North Carolina component of the Bloomberg Barclays Municipal Bond Index. You cannot invest directly in an index.

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 North Carolina Tax-Free Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	965.64	$	4.20		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
Class C
Actual	$	1,000.00	$	961.99	$	7.89		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Institutional Class
Actual	$	1,000.00	$	967.15	$	2.67		0.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.42	$	2.75		0.54	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo North Carolina Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.26%
California: 1.39%
University of California Limited Project Series G (Education Revenue)		5.00	%		5-15-2037	$	1,000,000	$	1,125,550
Guam: 6.24%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.00			1-1-2031		1,000,000		1,062,630
Guam Government Hotel Occupancy Series A (Tax Revenue)		6.00			11-1-2026		2,000,000		2,291,820
Guam Government Limited Obligation Series A (Tax Revenue)		5.00			12-1-2028		500,000		571,580
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2023		1,000,000		1,124,820
									5,050,850
Indiana: 1.41%
Indiana Finance Authority Clean Water Act Project Series A (Water & Sewer Revenue)		5.00			10-1-2031		1,000,000		1,141,840
New York: 2.06%
New York Dormitory Authority Personal Income Tax Series B (Tax Revenue)		5.00			3-15-2042		1,500,000		1,672,230
North Carolina: 77.50%
Cape Fear NC Public Utility Authority (Water & Sewer Revenue)		5.00			8-1-2035		3,000,000		3,179,910
Carolina Beach NC Enterprise System (Water & Sewer Revenue)		5.00			6-1-2029		250,000		294,108
Carolina Beach NC Enterprise System (Water & Sewer Revenue)		5.00			6-1-2031		245,000		285,160
Charlotte NC Airport Series A (Airport Revenue)		5.50			7-1-2034		2,500,000		2,748,725
Charlotte NC AMT Series B (Airport Revenue)		5.00			7-1-2020		1,480,000		1,627,896
Charlotte NC AMT Series B (Airport Revenue)		5.50			7-1-2024		810,000		893,884
Charlotte NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			12-1-2026		1,160,000		1,306,496
Charlotte NC Certificate of Participation Series A (Miscellaneous Revenue)		5.00			6-1-2030		1,000,000		1,144,850
Charlotte NC Certificate of Participation Series E (Miscellaneous Revenue)		5.00			6-1-2023		3,650,000		3,945,906
Charlotte NC Douglas Airport Series A (Airport Revenue)		5.00			7-1-2025		1,645,000		1,808,085
Charlotte-Mecklenburg NC Hospital Authority (Health Revenue)		5.00			1-15-2027		1,885,000		2,002,492
Cumberland County NC Limited Obligation Series B (Miscellaneous Revenue)		5.00			11-1-2025		1,000,000		1,138,130
Cumberland County NC Limited Obligation Series B (Miscellaneous Revenue)		5.00			11-1-2026		1,000,000		1,136,160
Henderson County NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			10-1-2030		500,000		585,835
Jacksonville NC Enterprise System (Water & Sewer Revenue)		5.25			5-1-2028		500,000		610,650
Johnston County NC Memorial Hospital Authority (Health Revenue, AGM/FHA Insured)		5.25			10-1-2036		1,960,000		2,059,882
Mecklenburg County NC Public Facilities Corporation (Miscellaneous Revenue)		5.00			3-1-2022		1,035,000		1,115,740
New Hanover County NC New Hanover Regional Medical Center (Health Revenue)		5.00			10-1-2026		1,000,000		1,120,090
New Hanover County NC New Hanover Regional Medical Center (Health Revenue)		5.00			10-1-2028		3,000,000		3,318,060
New Hanover County NC New Hanover Regional Medical Center (Health Revenue, AGM Insured)		5.13			10-1-2031		1,800,000		1,945,854
North Carolina Department of Transportation (Transportation Revenue)		5.00			6-30-2028		1,275,000		1,380,443
North Carolina Facilities Finance Agency (Housing Revenue, AGC Insured)		5.00			6-1-2027		1,000,000		1,120,550
North Carolina HFA Series B (Housing Revenue)		4.25			1-1-2028		2,065,000		2,117,926
North Carolina Medical Care Commission Baptist Hospital Project (Health Revenue)		5.25			6-1-2029		2,000,000		2,192,740
North Carolina Medical Care Commission Deerfield Episcopal Retirement Community Project (Health Revenue)		5.00			11-1-2031		1,500,000		1,668,645
North Carolina Medical Care Commission Presbyterian Homes Project Series C (Health Revenue)		4.00			10-1-2031		1,500,000		1,580,490
North Carolina Medical Care Commission Southeastern Regional Medical Center Project (Health Revenue)		5.00			6-1-2026		385,000		422,368
North Carolina Medical Care Commission Southeastern Regional Medical Center Project (Health Revenue)		5.00			6-1-2032		500,000		534,935

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

8 Wells Fargo North Carolina Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
North Carolina (continued)
North Carolina Medical Care Commission Southminster Incorporated (Health Revenue)		5.00	%		10-1-2037	$	500,000	$	505,930
North Carolina Medical Care Commission Stanley Memorial Hospital Project (Health Revenue)		5.00			7-1-2033		1,000,000		1,024,940
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Prerefunded Bond Series A (Utilities Revenue)		5.00			1-1-2030		1,105,000		1,183,753
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Series A (Utilities Revenue)		5.00			1-1-2021		2,720,000		2,974,157
North Carolina Municipal Power Agency #1 Catawba Nuclear Power Project Unrefunded Bond Series A (Utilities Revenue)		5.00			1-1-2030		445,000		470,810
North Carolina Port Authority Series B (Airport Revenue)		5.00			2-1-2025		3,540,000		3,790,667
Onslow County NC Water and Sewer Authority (Water & Sewer Revenue)		5.00			12-1-2028		505,000		602,319
Orange County NC Public Facilities Company Limited Obligation (Miscellaneous Revenue)		5.00			10-1-2026		1,000,000		1,131,700
Pitt County NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			4-1-2027		875,000		1,030,409
Raleigh NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			2-1-2029		900,000		1,065,438
Raleigh NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			10-1-2033		1,000,000		1,144,820
University of North Carolina at Greensboro (Education Revenue)		5.00			4-1-2033		2,000,000		2,257,500
University of North Carolina at Greensboro (Education Revenue)		5.00			4-1-2039		1,620,000		1,800,679
Wilmington NC Limited Obligation Series A (Miscellaneous Revenue)		5.00			6-1-2030		400,000		470,236
									62,739,368
Tennessee: 4.15%
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2026		1,020,000		1,187,137
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2021		2,000,000		2,173,560
									3,360,697
Virgin Islands: 2.74%
Virgin Islands PFA (Miscellaneous Revenue)		6.75			10-1-2019		2,240,000		2,217,085
Washington: 1.43%
Washington Office Building Refunding Bond (Miscellaneous Revenue)		5.00			7-1-2026		1,000,000		1,154,909
Wisconsin: 1.34%
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.75			8-1-2033		1,000,000		1,081,690
Total Municipal Obligations (Cost $76,257,833)									79,544,219
	Yield					Shares
Short-Term Investments: 0.44%
Investment Companies: 0.44%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.67					352,182		352,393
Total Short-Term Investments (Cost $352,288)									352,393

Total investments in securities (Cost $76,610,121)*	98.70	%		79,896,612
Other assets and liabilities, net	1.30			1,054,570
Total net assets	100.00	%	$	80,951,182

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo North Carolina Tax-Free Fund 9

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

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

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

* Cost for federal income tax purposes is $76,610,119 and unrealized gains (losses) consists of:

Gross unrealized gains	$	3,954,298
Gross unrealized losses		(667,805	)
Net unrealized gains	$	3,286,493

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

10 Wells Fargo North Carolina Tax-Free Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $76,257,833)	$	79,544,219
In affiliated securities, at value (cost $352,288)		352,393
Total investments, at value (cost $76,610,121)		79,896,612
Receivable for investments sold		105,000
Receivable for Fund shares sold		68,703
Receivable for interest		1,159,329
Prepaid expenses and other assets		26,281
Total assets		81,255,925
Liabilities
Dividends payable		121,073
Payable for Fund shares redeemed		102,607
Management fee payable		22,950
Distribution fee payable		3,865
Administration fees payable		9,179
Professional fees payable		18,232
Accrued expenses and other liabilities		26,837
Total liabilities		304,743
Total net assets	$	80,951,182
NET ASSETS CONSIST OF
Paid-in capital	$	86,730,216
Overdistributed net investment income		(59,560	)
Accumulated net realized losses on investments		(9,005,965	)
Net unrealized gains on investments		3,286,491
Total net assets	$	80,951,182
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A		$32,148,160
Shares outstanding – Class A1		3,184,828
Net asset value per share – Class A		$10.09
Maximum offering price per share – Class A2		$10.57
Net assets – Class C		$5,571,637
Shares outstanding – Class C1		551,986
Net asset value per share – Class C		$10.09
Net assets – Institutional Class		$43,231,385
Shares outstanding – Institutional Class1		4,282,990
Net asset value per share – Institutional Class		$10.09

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2016 (unaudited) Wells Fargo North Carolina Tax-Free Fund 11

Investment income
Interest	$	1,865,501
Income from affiliated securities		3,367
Total investment income		1,868,868
Expenses
Management fee		202,867
Administration fees
Class A		28,366
Class C		5,029
Institutional Class		23,876
Shareholder servicing fees
Class A		44,322
Class C		7,858
Distribution fee
Class C		23,573
Custody and accounting fees		5,263
Professional fees		24,035
Registration fees		25,822
Shareholder report expenses		4,522
Trustees’ fees and expenses		11,486
Other fees and expenses		4,510
Total expenses		411,529
Less: Fee waivers and/or expense reimbursements		(49,382	)
Net expenses		362,147
Net investment income		1,506,721
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		1,180,199
Affiliated securities		103,300
Net realized gains on investments		1,283,499
Net change in unrealized gains (losses) on:
Unaffiliated securities		(6,210,194	)
Affiiliated securities		105
Net change in unrealized gains (losses) on investments		(6,210,089	)
Net realized and unrealized gains (losses) on investments		(4,926,590	)
Net decrease in net assets resulting from operations	$	(3,419,869	)

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

12 Wells Fargo North Carolina Tax-Free Fund Statement of changes in net assets

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	1,506,721					$	3,164,807
Net realized gains (losses) on investments					1,283,499						(55,699	)
Net change in unrealized gains (losses) on investments					(6,210,089	)					2,346,419
Net increase (decrease) in net assets resulting from operations					(3,419,869	)					5,455,527
Distributions to shareholders from
Net investment income
Class A					(503,202	)					(1,060,689	)
Class C					(65,548	)					(109,808	)
Institutional Class					(937,957	)					(1,994,310	)
Total distributions to shareholders					(1,506,707	)					(3,164,807	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		39,881			412,496			424,558			4,432,275
Class C		39,510			416,579			186,322			1,956,171
Institutional Class		766,974			7,916,114			1,135,937			11,925,410
					8,745,189						18,313,856
Reinvestment of distributions
Class A		45,279			468,624			94,806			992,485
Class C		5,919			61,240			9,754			102,165
Institutional Class		22,283			230,576			39,018			408,587
					760,440						1,503,237
Payment for shares redeemed
Class A		(381,333	)		(3,932,184	)		(317,128	)		(3,313,134	)
Class C		(70,969	)		(725,286	)		(46,145	)		(483,983	)
Institutional Class		(2,431,495	)		(24,773,614	)		(1,122,422	)		(11,750,628	)
					(29,431,084	)					(15,547,745	)
Net increase (decrease) in net assets resulting from capital share transactions					(19,925,455	)					4,269,348
Total increase (decrease) in net assets					(24,852,031	)					6,560,068
Net assets
Beginning of period					105,803,213						99,243,145
End of period				$	80,951,182					$	105,803,213
Overdistributed net investment income				$	(59,560	)				$	(59,574	)

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

Financial highlights Wells Fargo North Carolina Tax-Free Fund 13

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.60			$10.36			$10.33			$10.08			$10.34			$9.71
Net investment income		0.15			0.31			0.32			0.33			0.32			0.34
Net realized and unrealized gains (losses) on investments		(0.51	)		0.24			0.03			0.25			(0.26	)		0.63
Total from investment operations		(0.36	)		0.55			0.35			0.58			0.06			0.97
Distributions to shareholders from
Net investment income		(0.15	)		(0.31	)		(0.32	)		(0.33	)		(0.32	)		(0.34	)
Net asset value, end of period		$10.09			$10.60			$10.36			$10.33			$10.08			$10.34
Total return1		(3.44	)%		5.43	%		3.35	%		5.92	%		0.51	%		10.09	%
Ratios to average net assets (annualized)
Gross expenses		0.96	%		0.96	%		0.94	%		0.94	%		0.91	%		0.90	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		2.84	%		3.00	%		3.01	%		3.32	%		3.06	%		3.34	%
Supplemental data
Portfolio turnover rate		7	%		7	%		12	%		15	%		15	%		48	%
Net assets, end of period (000s omitted)		$32,148			$36,890			$33,969			$37,067			$41,879			$44,082

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

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

14 Wells Fargo North Carolina Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.60			$10.36			$10.33			$10.08			$10.34			$9.71
Net investment income		0.11			0.24			0.24			0.26			0.24			0.26
Net realized and unrealized gains (losses) on investments		(0.51	)		0.24			0.03			0.25			(0.26	)		0.63
Total from investment operations		(0.40	)		0.48			0.27			0.51			(0.02	)		0.89
Distributions to shareholders from
Net investment income		(0.11	)		(0.24	)		(0.24	)		(0.26	)		(0.24	)		(0.26	)
Net asset value, end of period		$10.09			$10.60			$10.36			$10.33			$10.08			$10.34
Total return1		(3.80	)%		4.65	%		2.58	%		5.13	%		(0.24	)%		9.27	%
Ratios to average net assets (annualized)
Gross expenses		1.71	%		1.71	%		1.69	%		1.69	%		1.66	%		1.65	%
Net expenses		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		2.08	%		2.25	%		2.26	%		2.56	%		2.31	%		2.59	%
Supplemental data
Portfolio turnover rate		7	%		7	%		12	%		15	%		15	%		48	%
Net assets, end of period (000s omitted)		$5,572			$6,121			$4,431			$4,566			$5,164			$5,523

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

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

Financial highlights Wells Fargo North Carolina Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.60			$10.36			$10.33			$10.08			$10.34			$9.71
Net investment income		0.17	1		0.35			0.35			0.36			0.35			0.37
Net realized and unrealized gains (losses) on investments		(0.51	)		0.24			0.03			0.26			(0.26	)		0.63
Total from investment operations		(0.34	)		0.59			0.38			0.62			0.09			1.00
Distributions to shareholders from
Net investment income		(0.17	)		(0.35	)		(0.35	)		(0.37	)		(0.35	)		(0.37	)
Net asset value, end of period		$10.09			$10.60			$10.36			$10.33			$10.08			$10.34
Total return2		(3.28	)%		5.76	%		3.67	%		6.25	%		0.82	%		10.43	%
Ratios to average net assets (annualized)
Gross expenses		0.63	%		0.63	%		0.61	%		0.61	%		0.58	%		0.57	%
Net expenses		0.54	%		0.54	%		0.54	%		0.54	%		0.54	%		0.54	%
Net investment income		3.14	%		3.32	%		3.32	%		3.61	%		3.37	%		3.65	%
Supplemental data
Portfolio turnover rate		7	%		7	%		12	%		15	%		15	%		48	%
Net assets, end of period (000s omitted)		$43,231			$62,793			$60,844			$72,479			$77,926			$90,439

¹  Calculated based upon average shares outstanding

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

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

16 Wells Fargo North Carolina Tax-Free Fund Notes to financial statements (unaudited)

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

Security transactions and income recognition

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

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

Distributions to shareholders

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

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

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable 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	Short-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 short-term losses which were be recognized on the first day of the current fiscal year.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	79,544,219	$	0	$	79,544,219
Short-term investments
Investment companies		352,393		0		0		352,393
Total assets	$	352,393	$	79,544,219	$	0	$	79,896,612

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

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 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, 2017 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $5,341 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $4,307 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $212 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.

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $7,041,420 and $21,186,781, 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 $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

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

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

20 Wells Fargo North Carolina Tax-Free Fund Other information (unaudited)

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

22 Wells Fargo North Carolina Tax-Free Fund Other information (unaudited)

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

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

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo North Carolina Tax-Free Fund 23

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300483 02-17 SA254/SAR254 12-16

Semi-Annual Report

December 31, 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	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	17
Other information	21
List of abbreviations	24

The views expressed and any forward-looking statements are as of December 31, 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)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Pennsylvania Tax-Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(4.98	)		2.85		3.59		(0.51	)		3.79		4.06		0.90		0.74
Class C (EKVCX)	2-1-1993		(2.26	)		3.03		3.29		(1.26	)		3.03		3.29		1.65		1.49
Institutional Class (EKVYX)	11-24-1997		–			–		–		(0.26	)		4.05		4.32		0.57		0.49
Bloomberg Barclays Municipal Bond Index4	–		–			–		–		0.25			3.28		4.25		–		–
Bloomberg Barclays Pennsylvania Municipal Bond Index5	–		–			–		–		0.24			3.49		4.46		–		–

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 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

Effective maturity distribution as of December 31, 2016⁶

Credit quality as of December 31, 2016⁷

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, 2017, 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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 Bloomberg Barclays Pennsylvania Municipal Bond Index (formerly known as Barclays Pennsylvania Municipal Bond Index) is the Pennsylvania component of the Bloomberg Barclays Municipal Bond Index. You cannot invest directly in an index.

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 Pennsylvania Tax-Free Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	960.47	$	3.65		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42	$	3.76		0.74	%
Class C
Actual	$	1,000.00	$	956.74	$	7.33		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.65	$	7.56		1.49	%
Institutional Class
Actual	$	1,000.00	$	961.68	$	2.42		0.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.67	$	2.49		0.49	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.94%
Florida: 0.56%
Jacksonville FL Economic Development AMT Metropolitan Parking Solutions Project (Industrial Development Revenue, ACA Insured)		5.50	%		10-1-2030	$	1,000,000	$	1,001,690
Guam: 1.89%
Guam Government Business Privilege Tax Series D (Tax Revenue)		5.00			11-15-2022		1,000,000		1,118,320
Guam Government Limited Obligation Series A (Tax Revenue)		5.00			12-1-2028		1,000,000		1,143,160
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.25			7-1-2025		1,000,000		1,120,440
									3,381,920
Pennsylvania: 93.74%
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		1,293,219
Allegheny County PA Hospital Development Authority Health Center Series B (Health Revenue, National Insured)		6.00			7-1-2027		1,800,000		2,304,954
Allegheny County PA Port Authority Refunding Bond (Tax Revenue)		5.75			3-1-2029		3,000,000		3,416,040
Allegheny County PA Series C-65 (GO Revenue)		5.50			5-1-2024		4,675,000		5,395,418
Blair County PA (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			10-1-2026		955,000		1,107,141
Capital Region Water Pennsylvania Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			7-15-2024		750,000		866,228
Capital Region Water Pennsylvania Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			7-15-2029		525,000		602,317
Centre County PA Hospital Authority Mount Nittany Medical Center Series A (Health Revenue)		5.00			11-15-2029		800,000		917,544
Centre County PA Hospital Authority Mount Nittany Medical Center Series A (Health Revenue)		5.00			11-15-2030		675,000		771,005
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		5.65			12-15-2017		100,000		101,715
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		6.25			12-15-2027		2,370,000		2,434,014
Chester County PA IDA Collegium Charter School Project Series A (Education Revenue)		5.00			10-15-2022		1,695,000		1,742,901
Chester County PA IDA Renaissance Academy Charter School Project (Education Revenue)		3.75			10-1-2024		905,000		892,375
Chester County PA IDA University Student Housing LLC Project Series A (Housing Revenue)		5.00			8-1-2030		555,000		582,251
Commonwealth Financing Authority Pennsylvania Series B (Water & Sewer Revenue)		5.00			6-1-2026		1,000,000		1,125,780
Commonwealth Financing Authority Pennsylvania Series B-1 (Miscellaneous Revenue, AGM Insured)		5.00			6-1-2025		1,500,000		1,734,825
Cumberland County PA Municipal Authority Diakon Lutheran Ministries Project (Health Revenue)		5.00			1-1-2028		2,090,000		2,324,122
Cumberland County PA Municipal Authority Dickinson College Project Series HH-1 (Education Revenue)		5.00			11-1-2039		1,200,000		1,276,512
Cumberland County PA Municipal Authority Refunding Bond Dickson College Project (Education Revenue)		5.00			5-1-2028		1,170,000		1,362,383
Dauphin County PA Authority Pinnacle Health System Project Series A (Health Revenue)		5.00			6-1-2035		1,000,000		1,106,760
Delaware County PA Authority Neumann University Refunding Bond (Miscellaneous Revenue)		5.00			10-1-2031		1,500,000		1,625,895
Delaware County PA IDA Chester Community Charter School Series A (Education Revenue)		5.00			8-15-2020		1,795,000		1,794,892
Delaware County PA Vocational & Technical School Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.25			11-1-2033		1,000,000		1,122,980
Delaware Valley PA Regional Finance Authority Local Government Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		4,390,000		5,208,735

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

8 Wells Fargo Pennsylvania Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
East Hempfield Township PA IDA Refunding Bond Willow Valley Communities Project (Health Revenue)		5.00	%		12-1-2028	$	450,000	$	508,122
East Hempfield Township PA IDA Refunding Bond Willow Valley Communities Project (Health Revenue)		5.00			12-1-2029		375,000		421,560
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		180,000		205,447
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		200,000		227,286
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2028		150,000		169,775
Easton PA Area Joint Sewer Authority (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2029		200,000		225,542
General Authority of South Central Pennsylvania Association of Independent Colleges & Universities (Education Revenue)		6.00			11-1-2031		2,500,000		2,827,725
Lehigh County PA General Purpose Authority Water & Sewer CAB Allentown Project (Water & Sewer Revenue) ¤		0.00			12-1-2030		2,000,000		1,190,940
Lycoming County PA Authority Pennsylvania College of Technology (Education Revenue)		5.50			7-1-2026		3,000,000		3,391,980
McKeesport PA Municipal Authority (Water & Sewer Revenue, AGM Insured)		5.50			12-15-2027		2,405,000		2,731,383
Monroe County PA Hospital Authority Pocono Medical Center Series A (Health Revenue)		5.00			1-1-2027		840,000		906,965
Monroe County PA Hospital Authority Pocono Medical Center Series A (Health Revenue)		5.00			1-1-2032		880,000		935,942
Montgomery County PA Higher Education & Health Authority Abington Memorial Hospital Project (Health Revenue)		5.00			6-1-2031		2,000,000		2,188,180
Montgomery County PA Higher Education & Health Authority Refunding Bond Arcadia University (Education Revenue)		5.00			4-1-2030		1,500,000		1,618,410
Montgomery County PA IDA ACTS Retirement-Life Communities Obligated Group (Health Revenue)		5.00			11-15-2036		4,200,000		4,497,192
Montgomery County PA IDA Jefferson Health System Series A (Health Revenue)		5.00			10-1-2027		1,000,000		1,104,290
Montgomery County PA IDA New Regional Medical Center Project (Health Revenue, FHA Insured)		5.00			8-1-2020		980,000		1,092,024
Montgomery County PA Norristown Area School District (GO Revenue)		5.00			9-1-2029		1,250,000		1,439,913
North Eastern PA Hospital and Education Authority Refunding Bond Wilkes University Project Series B (Education Revenue)		5.25			3-1-2037		1,000,000		1,072,000
Northampton County PA St. Luke’s Hospital of Bethlehem Series A (Health Revenue)		5.00			8-15-2033		1,500,000		1,619,985
Palmer Township PA Refunding Bond (GO Revenue)		4.00			5-15-2021		250,000		270,955
Palmer Township PA Refunding Bond (GO Revenue)		4.00			5-15-2025		225,000		246,177
Pennsylvania EDFA UPMC Obligated Group (Health Revenue)		5.00			3-15-2031		2,270,000		2,606,528
Pennsylvania Financing Authority Pennsylvania Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2022		1,200,000		999,444
Pennsylvania Financing Authority Pennsylvania Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2023		3,790,000		3,035,638
Pennsylvania HEFAR La Salle University Series A (Education Revenue)		5.25			5-1-2027		5,250,000		5,345,130
Pennsylvania HEFAR Shippensburg University Project (Education Revenue)		5.00			10-1-2020		1,460,000		1,535,263
Pennsylvania HEFAR Shippensburg University Project (Education Revenue)		6.00			10-1-2031		3,000,000		3,272,070
Pennsylvania HEFAR Temple University First Series (Education Revenue)		5.00			4-1-2032		1,000,000		1,108,790
Pennsylvania Housing Finance Agency SFMR Series 112 (Housing Revenue)		5.00			4-1-2028		1,475,000		1,543,838
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		1,010,000		1,165,591
Pennsylvania Turnpike Commission Motor License Series B-1 (Transportation Revenue)		5.00			12-1-2040		1,500,000		1,614,090
Pennsylvania Turnpike Commission Oil Franchise Series A (Tax Revenue)		5.00			12-1-2032		1,500,000		1,734,795
Pennsylvania Turnpike Commission Series A (Miscellaneous Revenue, AGM Insured)		5.25			7-15-2021		2,000,000		2,269,100

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Philadelphia PA Airport Refunding Bond AMT Series A (Airport Revenue)		5.00	%		6-15-2030	$	1,500,000	$	1,663,470
Philadelphia PA Hospital & HEFAR Refunding Bond Temple University Health System Series B (Health Revenue)		6.25			7-1-2023		1,000,000		1,016,150
Philadelphia PA IDA 1st Philadelphia Preparatory Charter School Project Series A (Education Revenue)		7.00			6-15-2033		1,000,000		1,129,180
Philadelphia PA IDA Architecture & Design Charter School Project (Education Revenue)		5.25			3-15-2023		750,000		771,120
Philadelphia PA IDA Charter School Project Series A (Education Revenue)		5.30			9-15-2027		5,150,000		5,198,925
Philadelphia PA IDA Global Leadership Academy Project (Education Revenue)		5.13			11-15-2020		1,000,000		1,035,060
Philadelphia PA IDA Global Leadership Academy Project (Education Revenue)		5.75			11-15-2030		1,000,000		1,045,380
Philadelphia PA IDA Master Charter School AID (Education Revenue)		5.00			8-1-2020		580,000		616,453
Philadelphia PA IDA National Board of Medical Examiners Project (Health Revenue)		5.00			5-1-2030		1,705,000		1,973,282
Philadelphia PA IDA National Board of Medical Examiners Project (Health Revenue)		5.00			5-1-2031		1,610,000		1,857,682
Philadelphia PA IDA Refunding Bond Cultural & Commercial Corridors Program Series A (Miscellaneous Revenue)		5.00			12-1-2028		2,500,000		2,826,850
Philadelphia PA IDA Tacony Academy Charter School Project (Education Revenue)		6.88			6-15-2033		1,000,000		1,093,010
Philadelphia PA IDA Temple University 1st Series 2015 (Education Revenue)		5.00			4-1-2033		2,500,000		2,808,575
Philadelphia PA IDA Temple University 1st Series 2016 (Education Revenue)		5.00			4-1-2029		1,000,000		1,141,880
Philadelphia PA IDA West Philadelphia Achievement Charter Elementary School Project (Education Revenue)		7.50			5-1-2031		1,285,000		1,355,983
Philadelphia PA Refunding Bond Series A (GO Revenue)		5.25			7-15-2033		1,500,000		1,696,515
Philadelphia PA School District Refunding Bond Series A (GO Revenue, AGM/FGIC Insured)		5.00			6-1-2024		1,425,000		1,589,659
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		3,000,000		3,134,490
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2021		1,395,000		1,526,032
Philadelphia PA Water & Wastewater Refunding Bond (Water & Sewer Revenue)		5.00			10-1-2030		3,000,000		3,446,490
Pittsburgh & Allegheny Counties PA Sports & Exhibition Authority (Tax Revenue, AGM Insured)		5.00			2-1-2031		3,000,000		3,257,280
Pittsburgh PA (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			9-1-2030		500,000		574,315
Pittsburgh PA Moon Area School District Series A (GO Revenue)		5.00			11-15-2029		1,445,000		1,632,937
Reading PA School District Notes Series A (GO Revenue, AGM Insured)		5.00			2-1-2033		1,500,000		1,641,735
Reading PA School District Refunding Bond (GO Revenue)		3.13			4-1-2024		1,000,000		982,900
Southeastern Pennsylvania Transportation Authority (Miscellaneous Revenue)		5.00			6-1-2028		4,000,000		4,396,240
State Public School Building Authority Pennsylvania Chester Upland School District Project Series B (Miscellaneous Revenue)		5.25			9-15-2030		540,000		590,409
State Public School Building Authority Pennsylvania Chester Upland School Project Series C (Miscellaneous Revenue, AGM Insured)		5.00			9-15-2026		875,000		971,294
State Public School Building Authority Pennsylvania Northampton County Area Community College Project (Education Revenue)		5.50			3-1-2031		5,000,000		5,574,600
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		1,766,428
State Public School Building Authority Pennsylvania Philadelphia Community College Project Series A (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			6-15-2027		1,500,000		1,703,775
University Area Joint Authority Pennsylvania Refunding Bond (Water & Sewer Revenue) ±		1.12			11-1-2028		1,500,000		1,497,435
West Mifflin PA Area School District (GO Revenue, AGM Insured)		5.00			4-1-2028		1,000,000		1,120,790
Wilkes-Barre PA Finance Authority University of Scranton (Education Revenue)		5.00			11-1-2020		1,005,000		1,108,706
York County PA Series B (GO Revenue)		5.00			6-1-2033		4,000,000		4,581,320
York PA City School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2019		895,000		941,003

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

10 Wells Fargo Pennsylvania Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
York PA City School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00	%		6-1-2020	$	970,000	$	1,034,015
York PA City School District Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2021		1,000,000		1,077,800
									167,611,244
Virgin Islands: 2.75%
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		4.00			9-1-2017		600,000		607,254
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		5.00			9-1-2018		750,000		781,275
Virgin Islands PFA Grant Anticipation Federal Highway Grant (Miscellaneous Revenue) 144A		5.00			9-1-2019		500,000		529,755
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series A (Tobacco Revenue, AGM Insured)		5.00			10-1-2029		2,000,000		2,151,180
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series B (Tobacco Revenue)		5.00			10-1-2025		1,000,000		849,560
									4,919,024
Total Municipal Obligations (Cost $172,741,834)									176,913,878
	Yield					Shares
Short-Term Investments: 0.47%
Investment Companies: 0.47%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.67					839,425		839,929
Total Short-Term Investments (Cost $839,856)									839,929

Total investments in securities (Cost $173,581,690)*	99.41	%		177,753,807
Other assets and liabilities, net	0.59			1,053,246
Total net assets	100.00	%	$	178,807,053

¤ 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.

(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 $173,581,690 and unrealized gains (losses) consists of:

Gross unrealized gains	$	6,797,445
Gross unrealized losses		(2,625,328	)
Net unrealized gains	$	4,172,117

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $172,741,834)	$	176,913,878
In affiliated securities, at value (cost $839,856)		839,929
Total investments, at value (cost $173,581,690)		177,753,807
Receivable for Fund shares sold		46,688
Receivable for interest		1,906,928
Prepaid expenses and other assets		44,361
Total assets		179,751,784
Liabilities
Dividends payable		288,199
Payable for Fund shares redeemed		511,879
Management fee payable		50,349
Distribution fees payable		12,519
Administration fees payable		18,779
Accrued expenses and other liabilities		63,006
Total liabilities		944,731
Total net assets	$	178,807,053
NET ASSETS CONSIST OF
Paid-in capital	$	180,901,141
Overdistributed net investment income		(245,938	)
Accumulated net realized losses on investments		(6,020,267	)
Net unrealized gains on investments		4,172,117
Total net assets	$	178,807,053
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	50,521,850
Shares outstanding – Class A1		4,400,329
Net asset value per share – Class A		$11.48
Maximum offering price per share – Class A2		$12.02
Net assets – Class C	$	18,334,943
Shares outstanding – Class C1		1,599,866
Net asset value per share – Class C		$11.46
Net assets – Institutional Class	$	109,950,260
Shares outstanding – Institutional Class1		9,576,466
Net asset value per share – Institutional Class		$11.48

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.

12 Wells Fargo Pennsylvania Tax-Free Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Interest	$	3,813,490
Income from affiliated securities		3,559
Total investment income		3,817,049
Expenses
Management fee		418,147
Administration fees
Class A		44,778
Class B		263	1
Class C		15,788
Institutional Class		53,215
Shareholder servicing fees
Class A		69,966
Class B		410	1
Class C		24,668
Distribution fees
Class B		1,232	1
Class C		74,005
Custody and accounting fees		7,296
Professional fees		23,512
Registration fees		35,210
Shareholder report expenses		6,296
Trustees’ fees and expenses		12,189
Other fees and expenses		1,767
Total expenses		788,742
Less: Fee waivers and/or expense reimbursements		(106,230	)
Net expenses		682,512
Net investment income		3,134,537
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(91,040	)
Affiliated securities		967
Net realized losses on investments		(90,073	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(11,394,726	)
Affiiliated securities		73
Net change in unrealized gains (losses) on investments		(11,394,653	)
Net realized and unrealized gains (losses) on investments		(11,484,726	)
Net decrease in net assets resulting from operations	$	(8,350,189	)

¹  For the period from July 1, 2016 to December 5, 2016. At the close of business on December 5, 2016, existing Class B shareholders were converted to Class A shareholders. Effective December 6, 2016, Class B shares are no longer offered by the Fund.

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

Statements of changes in net assets Wells Fargo Pennsylvania Tax-Free Fund 13

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	3,134,537					$	6,202,910
Net realized gains (losses) on investments					(90,073	)					317,819
Net change in unrealized gains (losses) on investments					(11,394,653	)					5,818,175
Net increase (decrease) in net assets resulting from operations					(8,350,189	)					12,338,904
Distributions to shareholders from
Net investment income
Class A					(814,981	)					(1,633,459	)
Class B					(3,509	)1					(14,671	)
Class C					(213,405	)					(370,055	)
Institutional Class					(2,102,642	)					(4,184,725	)
Total distributions to shareholders					(3,134,537	)					(6,202,910	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		311,489			3,724,900			907,836			10,807,655
Class B		0	1		0	1		504			5,931
Class C		132,158			1,579,715			578,544			6,894,873
Institutional Class		1,010,170			12,009,915			3,425,123			40,716,691
					17,314,530						58,425,150
Reinvestment of distributions
Class A		63,930			755,484			126,426			1,505,841
Class B		289	1		3,452	1		1,211			14,352
Class C		16,534			194,984			28,590			340,015
Institutional Class		41,274			487,144			79,004			940,589
					1,441,064						2,800,797
Payment for shares redeemed
Class A		(537,544	)		(6,264,735	)		(499,387	)		(5,949,813	)
Class B		(44,832	)1		(531,995	)1		(11,946	)		(141,573	)
Class C		(158,488	)		(1,859,594	)		(111,231	)		(1,317,623	)
Institutional Class		(2,424,731	)		(28,034,876	)		(1,641,421	)		(19,520,308	)
					(36,691,200	)					(26,929,317	)
Net increase (decrease) in net assets resulting from capital share transactions					(17,935,606	)					34,296,630
Total increase (decrease) in net assets					(29,420,332	)					40,432,624
Net assets
Beginning of period					208,227,385						167,794,761
End of period				$	178,807,053					$	208,227,385
Overdistributed net investment income				$	(245,938	)				$	(245,938	)

¹  For the period from July 1, 2016 to December 5, 2016. At the close of business on December 5, 2016, existing Class B shareholders were converted to Class A shareholders. Effective December 6, 2016, Class B shares are no longer offered by the Fund.

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

14 Wells Fargo Pennsylvania Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.13			$11.75			$11.65			$11.36			$11.65			$10.93
Net investment income		0.18			0.38			0.42			0.43			0.42			0.44
Net realized and unrealized gains (losses) on investments		(0.65	)		0.38			0.09			0.29			(0.29	)		0.72
Total from investment operations		(0.47	)		0.76			0.51			0.72			0.13			1.16
Distributions to shareholders from
Net investment income		(0.18	)		(0.38	)		(0.41	)		(0.43	)		(0.42	)		(0.44	)
Net asset value, end of period		$11.48			$12.13			$11.75			$11.65			$11.36			$11.65
Total return1		(3.95	)%		6.62	%		4.44	%		6.45	%		1.02	%		10.81	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.90	%		0.90	%		0.91	%2		0.88	%2		0.88	%2
Net expenses		0.74	%		0.74	%		0.74	%		0.74	%2		0.75	%2		0.74	%2
Net investment income		2.91	%		3.23	%		3.54	%		3.75	%2		3.55	%2		3.90	%2
Supplemental data
Portfolio turnover rate		10	%		13	%		15	%		15	%		14	%		21	%
Net assets, end of period (000s omitted)		$50,522			$55,352			$47,323			$44,500			$43,167			$45,178

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

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.

Financial highlights Wells Fargo Pennsylvania Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.11			$11.73			$11.63			$11.34			$11.63			$10.91
Net investment income		0.13			0.29	1		0.33			0.34			0.33			0.36
Net realized and unrealized gains (losses) on investments		(0.65	)		0.38			0.09			0.29			(0.29	)		0.72
Total from investment operations		(0.52	)		0.67			0.42			0.63			0.04			1.08
Distributions to shareholders from
Net investment income		(0.13	)		(0.29	)		(0.32	)		(0.34	)		(0.33	)		(0.36	)
Net asset value, end of period		$11.46			$12.11			$11.73			$11.63			$11.34			$11.63
Total return2		(4.33	)%		5.83	%		3.66	%		5.67	%		0.27	%		9.99	%
Ratios to average net assets (annualized)
Gross expenses		1.64	%		1.65	%		1.65	%		1.66	%3		1.63	%3		1.63	%3
Net expenses		1.49	%		1.49	%		1.49	%		1.49	%3		1.50	%3		1.49	%3
Net investment income		2.16	%		2.46	%		2.78	%		3.00	%3		2.79	%3		3.15	%3
Supplemental data
Portfolio turnover rate		10	%		13	%		15	%		15	%		14	%		21	%
Net assets, end of period (000s omitted)		$18,335			$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. Returns for periods of less than one year are not annualized.

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

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.

16 Wells Fargo Pennsylvania Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.13			$11.75			$11.65			$11.36			$11.65			$10.93
Net investment income		0.19			0.41	1		0.44			0.45			0.45	1		0.47
Net realized and unrealized gains (losses) on investments		(0.65	)		0.38			0.10			0.29			(0.29	)		0.72
Total from investment operations		(0.46	)		0.79			0.54			0.74			0.16			1.19
Distributions to shareholders from
Net investment income		(0.19	)		(0.41	)		(0.44	)		(0.45	)		(0.45	)		(0.47	)
Net asset value, end of period		$11.48			$12.13			$11.75			$11.65			$11.36			$11.65
Total return2		(3.83	)%		6.88	%		4.70	%		6.72	%		1.28	%		11.08	%
Ratios to average net assets (annualized)
Gross expenses		0.56	%		0.57	%		0.57	%		0.58	%3		0.55	%3		0.55	%3
Net expenses		0.49	%		0.49	%		0.49	%		0.49	%3		0.50	%3		0.49	%3
Net investment income		3.16	%		3.47	%		3.78	%		4.00	%3		3.79	%3		4.15	%3
Supplemental data
Portfolio turnover rate		10	%		13	%		15	%		15	%		14	%		21	%
Net assets, end of period (000s omitted)		$109,950			$132,844			$106,769			$119,276			$148,684			$171,861

¹  Calculated based upon average shares outstanding

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

³  Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:

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 (unaudited) Wells Fargo Pennsylvania Tax-Free Fund 17

1. ORGANIZATION

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

Effective December 6, 2016, Class B shares of the Fund are no longer offered. Information for Class B shares reflected in the financial statements represents activity through December 5, 2016.

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

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

may be reduced by writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

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

Federal and other taxes

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

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

As of June 30, 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:

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

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

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

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	176,913,878	$	0	$	176,913,878
Short-term investments
Investment companies		839,929		0		0		839,929
Total assets	$	839,929	$	176,913,878	$	0	$	177,753,807

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

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 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, 2017 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 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $5,249 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $4,188 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fees

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the six months ended December 31, 2016, Funds Distributor received $3,187 from the sale of Class A shares.

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

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $19,751,119 and $38,774,741, 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 $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

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

8. INDEMNIFICATION

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

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

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

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

22 Wells Fargo Pennsylvania 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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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 Pennsylvania Tax-Free Fund 23

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

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

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

24 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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300484 02-17 SA255/SAR255 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo Short-Term Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	32
Statement of operations	33
Statement of changes in net assets	34
Financial highlights	35
Notes to financial statements	39
Other information	44
List of abbreviations	47

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Short-Term Municipal Bond Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a noteworthy 54 consecutive weeks of inflows. On the supply side, August through

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

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

October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(2.25	)		0.56		2.13		(0.26	)		0.97		2.34		0.75		0.63
Class C (WSSCX)	1-31-2003		(2.00	)		0.22		1.55		(1.00	)		0.22		1.55		1.50		1.38
Administrator Class (WSTMX)	7-30-2010		–			–		–		(0.23	)		0.96		2.31		0.69		0.60
Institutional Class (WSBIX)	3-31-2008		–			–		–		(0.02	)		1.20		2.53		0.42		0.40
Bloomberg Barclays 1-3 Year Composite Municipal Bond Index4	–		–			–		–		0.19			0.88		2.26		–		–

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. 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 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

Effective maturity distribution as of December 31, 2016⁵

Credit quality as of December 31, 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). 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, 2017, 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 Bloomberg Barclays 1-3 Year Composite Municipal Bond Index (formerly known as Barclays 1-3 Year Composite Municipal Bond Index) is a blended index weighted 50% in the Bloomberg Barclays 1-Year Municipal Bond Index (fomerly known as Barclays 1-Year Municipal Bond Index) and 50% in the Bloomberg Barclays 3-Year Municipal Bond Index (fomerly known as Barclays 3-Year Municipal Bond Index). You cannot invest directly in an index.

⁵  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  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 Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		��	Annualized net expense ratio
Class A
Actual	$	1,000.00	$	989.65	$	3.15			0.63	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.97	$	3.20			0.63	%
Class C
Actual	$	1,000.00	$	985.92	$	6.89			1.38	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.20	$	7.00			1.38	%
Administrator Class
Actual	$	1,000.00	$	989.82	$	3.00			0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05			0.60	%
Institutional Class
Actual	$	1,000.00	$	990.83	$	2.00			0.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.13	$	2.03			0.40	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 97.76%
Alabama: 1.50%
Alabama 21st Century Authority Series A (Tobacco Revenue)		5.00	%		6-1-2017	$	3,000,000	$	3,047,610
Alabama Black Belt Energy Gas District Series A (Utilities Revenue, Royal Bank of Canada LIQ) ±		4.00			7-1-2046		10,000,000		10,658,300
Board of Education of Shelby County Alabama Public School Warrants Series 2016 (Tax Revenue)		4.00			2-1-2020		410,000		435,301
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.95			11-15-2038		22,765,000		22,742,918
Jefferson County AL Warrants Series C (GO Revenue)		4.90			4-1-2021		26,520,000		27,607,055
Jefferson County AL Warrants Series D (Water & Sewer Revenue)		5.00			10-1-2018		1,890,000		1,963,351
Mobile County AL Industrial Development Board PCR Alabama Power Company Barry Plant (Industrial Development Revenue) ±		1.63			7-15-2034		12,500,000		12,504,000
									78,958,535
Alaska: 0.03%
Alaska IDA Snettisham Hydroelectric Project (Utilities Revenue)		5.00			1-1-2021		1,400,000		1,521,394
Arizona: 1.76%
Arizona Board of Regents Certificate of Participation Series A (Education Revenue)		5.00			6-1-2021		3,000,000		3,370,020
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		445,184
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		474,011
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		3.00			7-1-2017		3,500,000		3,534,475
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2017		32,500,000		33,145,450
Maricopa County AZ Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2018		6,100,000		6,431,047
Maricopa County AZ PCR Series A (Utilities Revenue) ±		2.40			6-1-2043		9,800,000		9,588,614
Maricopa County AZ PCR Series B (Utilities Revenue) ±		5.20			6-1-2043		2,500,000		2,670,700
Maricopa County AZ Unified School District #89 Refunding Bond Series 2016 (GO Revenue, Build America Mutual Assurance Company Insured)		2.00			7-1-2019		2,265,000		2,282,146
Navajo Nation AZ Refunding Bond Series A (Miscellaneous Revenue) 144A		2.90			12-1-2020		11,595,000		11,396,262
Navajo Nation AZ Tribal Utility Authority (Miscellaneous Revenue, Municipal Government Guaranty Insured)		4.00			1-1-2021		12,108,000		12,252,327
Scottsdale AZ IDA Scottsdale Healthcare Series D (Health Revenue)		5.00			9-1-2017		2,000,000		2,044,460
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2017		1,365,000		1,368,235
Verrado AZ Community Facilities District #1 Refunding Bond Series A (GO Revenue) 144A		4.00			7-15-2018		1,245,000		1,249,034
Yavapai County AZ IDA Waste Management Incorporated Project Series A2 (Resource Recovery Revenue) ±		1.60			3-1-2028		2,500,000		2,502,425
									92,754,390
California: 6.14%
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series B (Transportation Revenue) ±		1.50			4-1-2047		13,660,000		13,664,918
California (GO Revenue) ±		4.00			12-1-2027		55,200,000		55,901,040
California Golden State Tobacco Securitization Series 2954 (Tobacco Revenue, Morgan Stanley Bank LIQ) 144Aø		1.27			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		9,023,670

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

8 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Infrastructure & Economic Development Bank Museum Art Project Series A (Miscellaneous Revenue) ±		2.28	%		12-1-2037	$	12,000,000	$	12,089,160
California Infrastructure & Economic Development Bank Series A (Education Revenue) ±		1.72			8-1-2037		25,460,000		25,623,453
California PCFA Solid Waste Disposal Waste Management Project Series A (Resource Recovery Revenue) ±		1.65		��	7-1-2031		6,000,000		6,002,700
California PFA Village E Apartments Project Series A (Housing Revenue) ±		1.15			10-1-2019		7,400,000		7,385,348
California Refunding Bond Series B (GO Revenue) ±		1.47			5-1-2017		7,000,000		7,000,070
California Refunding Bond Series B (GO Revenue) ±		1.62			5-1-2018		6,000,000		6,038,640
California Series D (GO Revenue) ±		1.14			12-1-2028		27,000,000		27,008,640
California Series E (GO Revenue) ±		1.27			12-1-2029		18,000,000		18,016,200
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.99			7-1-2041		14,850,000		14,850,000
California Statewide CDA Health Facilities Catholic Series E (Health Revenue, AGM Insured) ±(m)		0.84			7-1-2040		5,425,000		5,425,000
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.99			7-1-2040		4,100,000		4,100,000
Chula Vista CA Elementary School Building Projects Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2017		1,765,000		1,810,625
Chula Vista CA Elementary School Building Projects Certificate of Participation Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2018		1,985,000		2,102,909
Chula Vista CA Industrial Development Revenue San Diego Gas & Electric Company Series A (Utilities Revenue)		1.65			7-1-2018		5,570,000		5,572,284
Commerce CA RDA CAB Project #1 (Tax Revenue) ¤		0.00			8-1-2021		4,045,000		3,240,935
Compton CA Unified School District CAB Election of 2002 Series D (GO Revenue, Ambac Insured) ¤		0.00			6-1-2017		3,070,000		3,051,887
El Monte CA Union High School District (GO Revenue)		5.00			6-1-2018		5,840,000		6,140,877
Foothill-Eastern CA Transportation Corridor Agency Series B1 (Transportation Revenue) ±		5.00			1-15-2053		24,435,000		24,864,567
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2018		1,000,000		1,059,020
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		5.00			8-1-2019		1,000,000		1,088,970
Palomar CA Pomerado Health CAB Election of 2004 Series A (GO Revenue, National Insured) ¤		0.00			8-1-2019		2,215,000		2,099,665
Palomar CA Pomerado Health Care District Certificate of Participation Series C (Health Revenue, AGM Insured) ±(m)		1.90			11-1-2036		9,225,000		9,225,000
San Ysidro CA School District (GO Revenue, AGM Insured) ¤		0.00			8-1-2047		3,610,000		467,856
South San Francisco CA Unified School District BAN Series D (GO Revenue) ¤		0.00			5-15-2017		20,000,000		19,926,000
									323,939,434
Colorado: 0.68%
Aurora CO E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00			9-1-2018		2,000,000		1,927,300
Aurora CO E-470 Public Highway Authority Senior Series CD-2 (Transportation Revenue, National Insured) ±		2.48			9-1-2039		15,325,000		15,319,943
Colorado HCFR Catholic Health Initiatives Series C2 (Health Revenue) ±		1.67			10-1-2039		8,500,000		8,419,590
Colorado HCFR Catholic Health Initiatives Series C4 (Health Revenue) ±		1.67			10-1-2039		3,495,000		3,461,238
Colorado Housing & Finance Authority Traditions Englewood Project (Housing Revenue)		0.90			12-1-2017		7,000,000		6,990,200
									36,118,271

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Connecticut: 3.71%
Connecticut Economic Recovery Notes Series A (Miscellaneous Revenue) ±		1.08	%		1-1-2018	$	9,810,000	$	9,794,010
Connecticut HEFA Series 2010A-4 (Education Revenue) ±		1.20			7-1-2049		33,190,000		32,916,514
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		34,000,000		33,868,080
Connecticut HEFAR Hartford Healthcare Series G (Health Revenue) ±		1.37			7-1-2049		10,000,000		9,945,500
Connecticut HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		12,790,000		12,758,792
Connecticut HEFAR Yale University Issue Series A-1 (Education Revenue) ±		1.00			7-1-2042		600,000		589,608
Connecticut Securities Industry and Financial Market Association Index Refunding Bond (Miscellaneous Revenue) ±		1.83			5-15-2019		3,500,000		3,518,060
Connecticut Series A (Miscellaneous Revenue) ±		1.27			3-1-2019		3,200,000		3,188,960
Connecticut Series A (Miscellaneous Revenue) ±		1.38			3-1-2020		8,285,000		8,253,931
Connecticut Series A (Miscellaneous Revenue) ±		1.40			4-15-2017		4,700,000		4,700,423
Connecticut Series A (Miscellaneous Revenue) ±		1.48			5-15-2018		17,740,000		17,774,416
Connecticut Series A (Miscellaneous Revenue) ±		1.50			5-15-2017		17,000,000		17,018,190
Connecticut Series A (Miscellaneous Revenue) ±		1.82			4-15-2019		5,600,000		5,627,216
Connecticut Series A (Miscellaneous Revenue) ±		2.07			3-1-2019		21,500,000		21,514,620
Connecticut Series D (GO Revenue) ±		1.24			9-15-2017		2,100,000		2,100,147
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2017		1,500,000		1,533,495
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2018		1,000,000		1,051,300
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2018		650,000		681,597
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2019		700,000		749,420
Hartford CT Series B (GO Revenue, AGM Insured)		5.00			10-1-2018		1,000,000		1,065,420
Mohegan Tribe of Indians of Connecticut (Miscellaneous Revenue)		2.65			12-15-2017		3,856,000		3,890,203
New Haven CT Series A (GO Revenue, AGM Insured)		3.00			11-1-2019		3,405,000		3,477,492
									196,017,394
Delaware: 0.02%
Delaware HCFR Nanticoke Memorial Hospital Project (Health Revenue)		5.00			7-1-2017		1,225,000		1,241,807
District of Columbia: 0.25%
District of Columbia Income Tax Secured Refunding Bond Series E (Tax Revenue) ±		1.31			12-1-2017		13,000,000		12,957,490
Florida: 2.34%
Brevard County FL HCFR Refunding Bond Health First Incorporated Series A (Health Revenue)		5.00			4-1-2018		1,140,000		1,189,020
Brevard County FL Space Coast Infrastructure Agency I-95 Project (Industrial Development Revenue)		4.00			6-15-2018		5,695,000		5,889,541
Escambia County FL Gulf Power Company Project (Resource Recovery Revenue) ±		1.40			4-1-2039		9,500,000		9,506,555
Florida Mid-Bay Bridge Authority Series C (Transportation Revenue)		5.00			10-1-2019		675,000		722,756
Florida Mid-Bay Bridge Authority Series C (Transportation Revenue)		5.00			10-1-2020		785,000		852,793
Jacksonville FL Sales Tax Refunding Bond Better Jacksonville Plan (Tax Revenue)		5.00			10-1-2017		2,000,000		2,057,660
Manatee County FL School Board Certificate Participation Series A (Miscellaneous Revenue)		5.00			7-1-2020		1,225,000		1,309,256
Miami Beach FL Health Facilities Refunding Bond Mount Sinai Medical Center (Health Revenue)		4.00			11-15-2017		1,750,000		1,785,018
Miami FL Refunding Bond Homeland Defense (GO Revenue, National Insured)		5.00			1-1-2017		5,000,000		5,000,500
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144A±		1.19			10-13-2023		6,325,000		6,325,000
Miami-Dade County FL Miami International Airport Series C (Airport Revenue, AGM Insured)		5.25			10-1-2021		16,000,000		16,495,520
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		1.27			9-25-2024		23,520,000		23,520,000

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

10 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		0.95	%		5-1-2037	$	10,000,000	$	10,000,000
Miami-Dade County FL School Board Foundation Incorporated (Miscellaneous Revenue, Dexia Credit Local LOC, National Insured, Dexia Credit Local LIQ) 144Aø		1.27			5-1-2031		15,875,000		15,875,000
Palm Beach County FL HCFR ACTS Retirement Life Series 2016 (Health Revenue)		5.00			11-15-2021		3,515,000		3,868,363
Palm Beach County FL HCFR Jupiter Medical Center Project Series A (Health Revenue)		4.00			11-1-2018		1,235,000		1,275,804
Sarasota County FL Educational Facilities School Arts & Sciences Project (Education Revenue)		5.20			7-1-2017		170,000		171,173
Space Coast Infrastructure Agency I-95 Brevard County FL Project (Industrial Development Revenue)		4.00			6-15-2017		6,335,000		6,414,568
St. Johns County FL School Board Refunding Bond Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2020		2,010,000		2,218,035
St. Johns County FL School Board Refunding Bond Certificate of Participation (Miscellaneous Revenue)		5.00			7-1-2021		1,670,000		1,875,510
University of North Florida Financing Corporation Capital Housing Project (Education Revenue, AGM Insured)		5.00			11-1-2020		3,125,000		3,415,313
University of North Florida Financing Corporation Capital Housing Project (Education Revenue, AGM Insured)		5.00			11-1-2021		3,440,000		3,808,871
									123,576,256
Georgia: 2.61%
Atlanta GA Water & Wastewater Project Series A-1 (Water & Sewer Revenue) ±		2.01			11-1-2038		21,500,000		21,695,220
Bartow County GA Development Authority Georgia Power Company Bowen Project (Utilities Revenue) ±		2.70			8-1-2043		20,000,000		20,386,400
Burke County GA Development Authority Oglethorpe Power Corporation Vogtle Project Series A (Utilities Revenue) ±		2.40			1-1-2040		17,825,000		17,970,630
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		11,000,000		10,938,180
Gainesville & Hall County GA Hospital Authority Health System Project Series B (Health Revenue) ±		1.51			8-15-2035		23,000,000		22,911,450
Georgia Private Colleges & Universities Authority Mercer University Series B (Education Revenue)		4.00			10-1-2017		3,285,000		3,336,837
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2017		8,015,000		8,062,689
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2018		4,815,000		4,973,799
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2021		2,600,000		2,835,196
Monroe County GA PCR Georgia Power Company Plant Scherer Project (Industrial Development Revenue) ±		2.35			10-1-2048		16,000,000		15,850,720
Peach County GA Development Authority USG Real Estate Foundation LLC Project (Housing Revenue)		1.20			10-1-2018		3,250,000		3,224,520
Savannah GA MFHR Wessels Blackshear Home Project (Housing Revenue) ±		1.15			7-1-2019		5,550,000		5,511,428
									137,697,069

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Guam: 0.09%
Guam International Airport Authority Series A (Airport Revenue)		5.00	%		10-1-2019	$	450,000	$	485,780
Guam International Airport Authority Series B (Airport Revenue)		5.00			10-1-2018		675,000		713,111
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2018		3,560,000		3,715,928
									4,914,819
Illinois: 9.11%
Chicago IL Board of Education Dedicated Series D (Miscellaneous Revenue, AGC Insured)		5.00			12-1-2018		1,400,000		1,443,344
Chicago IL Board of Education Lease Certificates Refunding Bond Series A (Miscellaneous Revenue, National Insured)		6.00			1-1-2020		9,245,000		9,758,282
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2019		895,000		932,939
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.00			12-1-2020		765,000		774,555
Chicago IL Board of Education Series A2 (GO Revenue) ±		1.48			3-1-2035		24,000,000		23,596,320
Chicago IL Board of Education Series A3 (GO Revenue) ±		1.56			3-1-2036		48,000,000		45,300,960
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2019		5,335,000		4,911,028
Chicago IL Board of Education Series D (GO Revenue, AGM Insured)		5.00			12-1-2019		1,105,000		1,128,304
Chicago IL City Colleges of Chicago Capital Improvement Project CAB (GO Revenue, National Insured) ¤		0.00			1-1-2019		8,555,000		7,971,292
Chicago IL Modern Schools Across Chicago Program Series A-K (GO Revenue, Ambac Insured)		5.00			12-1-2019		1,000,000		1,002,810
Chicago IL Motor Fuel Refunding Bond (Tax Revenue)		5.00			1-1-2017		1,820,000		1,820,127
Chicago IL Motor Fuel Refunding Bond (Tax Revenue)		5.00			1-1-2018		330,000		337,062
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.00			1-1-2019		1,000,000		1,060,430
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.00			1-1-2020		890,000		963,648
Chicago IL O’Hare International Airport Senior Lien Series A (Airport Revenue)		5.00			1-1-2017		2,630,000		2,630,289
Chicago IL Park District Harbor Facility Series C (GO Revenue)		5.00			1-1-2022		3,155,000		3,424,816
Chicago IL Park District Personal Property Replacement Tax (GO Revenue)		5.00			1-1-2019		500,000		529,100
Chicago IL Park District Refunding Bonds Series B (GO Revenue)		5.00			1-1-2019		3,555,000		3,761,901
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		4.00			1-1-2019		1,890,000		1,963,086
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		5.00			1-1-2019		1,060,000		1,121,692
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		5.00			1-1-2020		1,000,000		1,076,700
Chicago IL Park District Refunding Bonds Series D (GO Revenue)		5.00			1-1-2021		1,000,000		1,093,860
Chicago IL Park District Series A (GO Revenue)		4.50			1-1-2023		250,000		263,488
Chicago IL Prerefunded Balance Project Series A (GO Revenue, Ambac Insured)		4.00			1-1-2017		720,000		720,065
Chicago IL Project & Refunding Bond Series A (GO Revenue, National Insured)		5.00			1-1-2019		4,465,000		4,586,091
Chicago IL Project & Refunding Bond Series A (GO Revenue, Ambac Insured)		5.00			1-1-2020		1,985,000		1,988,930
Chicago IL Project & Refunding Bond Series C (GO Revenue, National Insured)		4.00			1-1-2017		345,000		345,014
Chicago IL Project & Refunding Bond Series C (GO Revenue, Ambac Insured)		5.00			1-1-2021		10,280,000		10,300,252
Chicago IL Recovery Zone Facility (Industrial Development Revenue)		6.13			12-1-2018		3,710,000		3,796,146
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.25			1-1-2018		1,770,000		1,818,445
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.25			1-1-2020		3,765,000		4,027,759
Chicago IL Refunding Bond Emergency Telephone System (GO Revenue, National Insured)		5.50			1-1-2019		2,600,000		2,741,518
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2019		1,335,000		1,337,577
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2020		10,200,000		10,231,110
Chicago IL Refunding Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2021		1,100,000		1,108,448
Chicago IL Refunding Bond Series B (GO Revenue, Ambac Insured)		5.13			1-1-2022		4,495,000		4,558,065
Chicago IL Second Lien (Water & Sewer Revenue, AGM Insured)		4.25			11-1-2018		1,925,000		2,009,142

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

12 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Second Lien (Water & Sewer Revenue)		5.00	%		1-1-2017	$	1,200,000	$	1,200,108
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2020		730,000		795,021
Chicago IL Second Lien (Water & Sewer Revenue, National Insured)		5.50			1-1-2019		1,460,000		1,559,528
Chicago IL Series A (GO Revenue)		5.00			1-1-2018		550,000		549,335
Chicago IL Series A (GO Revenue)		5.00			1-1-2019		5,850,000		5,842,629
Chicago IL Series A (GO Revenue, National Insured)		5.53			1-1-2020		1,290,000		1,294,064
Chicago IL Series A (GO Revenue)		5.25			1-1-2021		640,000		638,451
Chicago IL Series A2 (GO Revenue, Ambac Insured)		5.50			1-1-2018		4,805,000		4,856,414
Chicago IL Series B (GO Revenue, AGM Insured)		5.00			1-1-2019		8,090,000		8,152,131
Chicago IL Series B (GO Revenue, AGM Insured)		5.00			1-1-2020		2,860,000		2,881,965
Chicago IL Series C (GO Revenue)		5.00			1-1-2021		3,000,000		2,992,680
Chicago IL Series C (GO Revenue)		5.00			1-1-2022		12,780,000		12,691,435
Chicago IL Series C (GO Revenue)		5.00			1-1-2023		4,750,000		4,716,275
Chicago IL Transit Authority Federal Transit Administration Section 5309 (Transportation Revenue, AGC Insured)		5.25			6-1-2019		1,680,000		1,754,794
Chicago IL Unrefunded Balance Project Series A (GO Revenue, Ambac Insured)		4.00			1-1-2017		455,000		455,005
Cook County IL Forest Preserve District Series A (GO Revenue)		5.00			11-15-2018		1,005,000		1,062,727
Cook County IL Refunding Bond Series 2016 A (GO Revenue)		5.00			11-15-2020		5,430,000		5,923,044
Cook County IL Series 2009D (GO Revenue)		5.00			11-15-2020		2,220,000		2,375,866
Cook County IL Series A (GO Revenue)		5.00			11-15-2019		2,275,000		2,446,694
Cook County IL Series B (GO Revenue, National Insured)		5.00			11-15-2019		6,020,000		6,172,667
Cook County IL Series C (GO Revenue)		5.00			11-15-2020		21,535,000		23,046,972
Illinois (Miscellaneous Revenue)		3.00			7-1-2018		2,000,000		2,007,320
Illinois (GO Revenue)		4.00			2-1-2019		6,300,000		6,393,429
Illinois (GO Revenue)		4.00			2-1-2020		1,750,000		1,766,048
Illinois (GO Revenue)		5.00			1-1-2017		3,200,000		3,200,352
Illinois (GO Revenue)		5.00			3-1-2018		1,795,000		1,844,919
Illinois (GO Revenue)		5.00			2-1-2019		1,500,000		1,552,260
Illinois (GO Revenue)		5.00			2-1-2020		2,520,000		2,615,987
Illinois (Miscellaneous Revenue)		5.00			5-1-2021		2,000,000		2,084,500
Illinois Development Finance Authority St. Vincent De Paul Center Project Series A (Health Revenue) ±		1.88			11-15-2039		5,730,000		5,740,772
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2019		2,265,000		2,421,330
Illinois Finance Authority Prerefunded Bond OSF Healthcare System Series A (Health Revenue)		6.00			5-15-2039		10,915,000		12,440,371
Illinois Finance Authority Provena Health Series A (Health Revenue)		5.75			5-1-2019		3,000,000		3,294,510
Illinois Finance Authority Refunding Bond Lifespace Communities (Health Revenue)		4.00			5-15-2018		700,000		721,455
Illinois Finance Authority Refunding Bond Lifespace Communities (Health Revenue)		4.00			5-15-2019		1,000,000		1,037,200
Illinois Housing Development Authority (Housing Revenue, GNMA Insured)		5.00			8-1-2028		1,105,000		1,133,111
Illinois Municipal Electric Agency Power Supply Series A (Utilities Revenue, National Insured)		5.25			2-1-2020		2,705,000		2,715,360
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2018		1,905,000		1,952,263
Illinois Refunding Bond (GO Revenue, AGM Insured)		5.00			1-1-2017		1,725,000		1,725,190
Illinois Refunding Bond (GO Revenue, AGM Insured)		5.00			1-1-2018		7,740,000		7,970,962
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2018		1,525,000		1,576,804
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2019		12,570,000		13,000,648
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2020		13,515,000		14,021,677
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2020		5,000,000		5,206,850

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00	%		8-1-2020	$	5,000,000	$	5,338,300
Illinois Refunding Bond (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			8-1-2020		9,175,000		9,795,781
Illinois Refunding Bond (Tax Revenue)		5.00			1-1-2021		1,510,000		1,574,990
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			2-1-2022		4,375,000		4,551,531
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			2-1-2023		6,040,000		6,258,286
Illinois Refunding Bond Series B (Miscellaneous Revenue)		5.25			1-1-2018		1,430,000		1,468,996
Illinois Series A (Tax Revenue)		4.00			1-1-2020		12,265,000		12,379,065
Illinois Series A (Tax Revenue)		4.00			1-1-2021		2,715,000		2,731,969
Illinois Series A (GO Revenue)		5.00			4-1-2019		5,000,000		5,179,600
Illinois Series A (GO Revenue)		5.00			4-1-2020		2,500,000		2,598,200
Illinois Series A (GO Revenue)		5.00			4-1-2022		3,575,000		3,719,502
Illinois Unemployment Insurance Series B (Tax Revenue)		5.00			12-15-2017		2,225,000		2,232,320
Kane County IL School District #131 Aurora E Side Series C (GO Revenue, AGC Insured)		5.00			6-1-2019		2,110,000		2,245,821
Kane County IL School District Series B (GO Revenue)		2.00			2-1-2021		880,000		869,176
Kendall Kane & Will County IL Community Unit School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2020		1,000,000		926,700
Lake County IL Community Unit School District #60 Waukegan CAB Series A (GO Revenue, AGM Insured) ¤		0.00			12-1-2018		1,715,000		1,645,800
McHenry-Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2021		2,000,000		1,803,520
Metropolitan Pier & Exposition Authority CAB McCormick Place Project Series A (Tax Revenue, National Insured) ¤		0.00			6-15-2017		11,210,000		11,108,325
Metropolitan Pier & Exposition Authority CAB McCormick Place Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2017		6,245,000		6,122,223
Metropolitan Pier & Exposition Authority CAB McCormick Place Project Series B (Tax Revenue)		5.00			12-15-2020		1,475,000		1,572,321
Metropolitan Pier & Exposition Authority CAB McCormick Place Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2021		920,000		764,732
Regional Transportation Authority Refunding Bond Series B (Tax Revenue) ±		0.85			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		12,084,360
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2019		5,900,000		5,941,477
University of Illinois IL Auxilary Facilities CAB (Education Revenue) ¤		0.00			4-1-2019		7,110,000		6,730,539
Western Illinois University Auxiliary Facilities System (Education Revenue)		4.00			4-1-2017		1,135,000		1,138,314
Western Illinois University Auxiliary Facilities System (Education Revenue)		4.00			4-1-2018		800,000		808,848
Western Illinois University Auxiliary Facilities System (Education Revenue)		4.00			4-1-2020		1,480,000		1,496,635
									480,748,049
Indiana: 3.35%
Evansville City IN MFHR Consolidated RAD Project Series A (Housing Revenue) ±		0.90			6-1-2018		4,600,000		4,586,292
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		79,215,000		79,314,811
Indiana Finance Authority Refunding Bond Southern Indiana Gas & Electric Company Series E (Utilities Revenue) ±		1.95			5-1-2037		3,200,000		3,218,080
Indiana Health & Educational Facility Financing Authority Series 2006B (Health Revenue) ±		1.75			11-15-2031		11,385,000		11,046,524
Indiana HFFA Ascension Health Series A1 (Health Revenue) ±		2.80			11-1-2027		10,355,000		10,592,233
Indiana HFFA Ascension Health Series A7 (Health Revenue) ±		2.00			10-1-2026		9,080,000		9,086,356
Indiana HFFA Ascension Health Subordinated Credit Group Series 2015 A4 (Health Revenue) ±		1.50			10-1-2027		2,495,000		2,448,443

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

14 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Indiana (continued)
Petersburg IN PCR Refunding Bond Industry Power & Light (Industrial Development Revenue, National Insured)		5.40	%		8-1-2017	$	1,000,000	$	1,024,760
Rockport IN PCR Indiana-Michigan Power Company Series B (Utilities Revenue) ±		1.75			6-1-2025		4,285,000		4,270,260
Warrick County IN Environment Import Revenue Vectren Energy Delivery of Indiana Incorporated (Utilities Revenue) ±		2.38			9-1-2055		6,550,000		6,541,747
Whiting IN BP Products North America Incorporated Project (Resource Recovery Revenue)		1.48			12-1-2044		45,000,000		44,536,950
									176,666,456
Iowa: 0.34%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.95			4-1-2022		12,800,000		12,800,000
Iowa Student Loan Liquidity Corporation Senior Series A1 (Education Revenue)		4.40			12-1-2018		4,800,000		4,967,184
									17,767,184
Kansas: 0.21%
Kansas Development Finance Authority Series A (Miscellaneous Revenue)		5.00			5-1-2019		10,305,000		11,121,568
Kentucky: 1.78%
Ashland KY Ashland Hospital Corporation Medical Center Project Series B (Health Revenue)		5.00			2-1-2019		1,500,000		1,571,340
Kentucky EDA Next Generation Kentucky Information Highway Project Series 2015 A (Miscellaneous Revenue)		5.00			7-1-2020		1,000,000		1,079,750
Kentucky EDFA Baptist Healthcare System Series A (Health Revenue)		5.38			8-15-2024		1,500,000		1,582,005
Kentucky EDFA King’s Daughters Medical Center (Health Revenue)		5.00			2-1-2017		1,000,000		1,003,250
Kentucky EDFA Series B1 (Health Revenue) ±		1.32			2-1-2046		10,720,000		10,585,035
Kentucky EDFA Series B2 (Health Revenue) ±		1.32			2-1-2046		11,220,000		11,078,740
Kentucky Higher Education Student Loan Corporation Series A (Education Revenue)		3.75			6-1-2026		1,065,000		1,098,590
Kentucky Higher Education Student Loan Corporation Series A (Education Revenue)		5.00			6-1-2018		1,200,000		1,249,080
Kentucky Municipal Power Agency Prairie State Project Series B (Utilities Revenue) ±		1.96			9-1-2042		25,000,000		25,002,250
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		29,000,000		29,465,450
Louisville & Jefferson County KY Catholic Health Initiatives Series A (Health Revenue)		5.00			12-1-2021		8,060,000		8,964,654
Pendleton County KY Scholl District Finance Corporation (Miscellaneous Revenue)		2.00			2-1-2021		1,200,000		1,179,324
									93,859,468
Louisiana: 2.35%
Desoto Parish LA PCR (Utilities Revenue)		1.60			1-1-2019		15,000,000		14,907,900
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.93			2-1-2046		37,585,000		37,406,847
Louisiana Housing Corporation Versailes Project (Housing Revenue) ±		0.90			3-1-2019		20,610,000		20,516,431
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Sewer Commission Series B (Tax Revenue) ±		1.14			2-1-2049		35,500,000		35,374,330
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		1,260,758

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Louisiana (continued)
Louisiana Regional Transit Authority CAB (Tax Revenue, National Insured) ¤		0.00	%		12-1-2021	$	4,015,000	$	3,158,319
New Orleans LA Master Lease Agreement (GO Revenue) (i)		5.25			1-1-2018		4,650,078		4,694,300
St. Bernard Parish LA Sales & Uses Tax (Tax Revenue)		4.00			3-1-2017		3,135,000		3,149,954
St. Bernard Parish LA Sales & Uses Tax (Tax Revenue)		4.00			3-1-2018		3,245,000		3,335,990
									123,804,829
Maryland: 2.65%
Howard County MD Housing Commission Series A (Housing Revenue) ±		1.97			7-1-2034		16,050,000		16,036,037
Maryland CDA Multifamily Govans Manor Series M (Housing Revenue)		1.80			12-1-2018		19,500,000		19,466,265
Maryland CDA The Brentwood Series O (Housing Revenue)		1.40			12-1-2017		7,735,000		7,720,690
Maryland Community Development Administration Department Housing & Community Multifamily Bernard E Mason Apartments Series F (Housing Revenue)		1.17			11-1-2017		18,020,000		17,981,617
Maryland Community Development Administration Department Housing & Community Multifamily Development Pleasant View Gardens Senior Apartments Series H (Housing Revenue)		1.35			9-1-2018		8,200,000		8,146,618
Maryland Community Development Administration Department Housing & Community Multifamily Riverwatch Apartments Series J (Housing Revenue)		1.00			4-1-2017		11,750,000		11,740,130
Maryland Health & HEFAR John Hopkins Health System Series A (Health Revenue) ±		1.01			5-15-2046		8,000,000		7,966,320
Maryland Health & HEFAR John Hopkins Health System Series B (Health Revenue) ±		0.99			5-15-2029		9,815,000		9,770,931
Maryland Health & HEFAR John Hopkins Health System Series C (Health Revenue) ±		1.24			5-15-2038		22,100,000		22,155,471
Maryland Health & HEFAR John Hopkins Health System Series D (Health Revenue) ±		1.24			5-15-2038		18,890,000		18,937,414
									139,921,493
Massachusetts: 1.98%
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ±		1.05			8-1-2043		11,500,000		11,130,275
Massachusetts Development Finance Agency Southcoast Health System Obligation Series F (Health Revenue)		3.00			7-1-2017		500,000		504,550
Massachusetts Development Finance Agency Waste Management Incorporated (Resource Recovery Revenue) ±		1.60			5-1-2027		7,000,000		7,009,310
Massachusetts Educational Financing Authority Education Loan Series I (Education Revenue)		4.00			1-1-2018		1,750,000		1,787,030
Massachusetts Educational Financing Authority Series A (Education Revenue)		3.50			1-1-2019		2,500,000		2,559,375
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2018		1,500,000		1,546,575
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2019		3,000,000		3,158,880
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2020		3,000,000		3,210,270
Massachusetts Educational Financing Authority Series A (Education Revenue)		5.00			1-1-2022		2,955,000		3,233,391
Massachusetts Educational Financing Authority Series K (Education Revenue)		5.00			7-1-2019		2,000,000		2,127,080
Massachusetts HEFA Partners Healthcare Series G6 (Health Revenue) ±		1.60			7-1-2038		40,000,000		39,999,600
Massachusetts HFA Construction Loan Notes Series B (Housing Revenue)		2.00			6-1-2019		9,000,000		9,001,170
Massachusetts Various Consolidated Loans Series D (Tax Revenue) ±		1.15			1-1-2018		9,500,000		9,506,650
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XF2306 (Education Revenue, Morgan Stanley Bank LIQ) 144Aø		0.97			7-1-2033		10,000,000		10,000,000
									104,774,156
Michigan: 4.28%
Allendale MI Public School District Series A (GO Revenue, Qualified School Board Loan Fund Insured)		3.00			11-1-2021		895,000		916,328
Birmingham MI City School District (GO Revenue)		5.00			11-1-2018		905,000		966,784

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

16 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Birmingham MI City School District (GO Revenue)		5.00	%		11-1-2019	$	5,970,000	$	6,545,508
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		250,000		253,220
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		1,315,000		1,377,791
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		500,000		550,490
Caledonia MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,140,000		1,279,673
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		740,000		747,060
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2018		1,535,000		1,588,050
Chippewa Hills MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2019		1,595,000		1,681,290
Detroit MI Sewage Disposal System Series A (Water & Sewer Revenue, AGM Insured)		5.25			7-1-2019		980,000		1,061,124
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2017		3,000,000		2,982,300
Flint MI International Academy Public School Project (Education Revenue)		5.00			10-1-2017		260,000		261,433
Flushing MI Community Schools School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		975,000		984,302
Flushing MI Community Schools School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2021		1,135,000		1,227,185
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2018		2,000,000		2,095,500
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2019		1,375,000		1,480,779
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,000,000		1,012,880
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,050,000		1,130,777
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,085,000		1,167,775
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,100,000		1,209,450
Gibraltar MI School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,185,000		1,327,567
Grand Ledge MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		2,680,000		2,950,626
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2019		515,000		542,862
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2020		370,000		395,452
Haslett MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		500,000		561,260
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		750,000		785,813
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,605,000		1,728,473
Lake Orion MI Community School District 2015 Refunding Bond (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		2,325,000		2,503,862
Lake Orion MI Community School District 2016 Refunding Bond (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		915,000		985,391
Lake Orion MI Community School District 2016 Refunding Bond (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,385,000		1,554,690
Lake Orion MI Community School District Advance Refunding Bond (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,390,000		1,530,362

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Lake Orion MI Community School District Refunding Bond (GO Revenue, Qualified School Board Loan Fund Insured)		5.00	%		5-1-2020	$	1,550,000	$	1,706,519
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		2,684,100
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		4,203,237
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		3,446,313
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2017		2,500,000		2,543,525
Michigan Finance Authority Refunding Bond 2nd Lien Detroit Water & Sewer Series C-8 (Water & Sewer Revenue)		5.00			7-1-2018		2,000,000		2,092,940
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		10,988,600
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		7,515,480
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		1,610,460
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Water & Sewer Series D-6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2020		1,800,000		1,972,836
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		8,354,700
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		7,515,480
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		9,557,294
Michigan Finance Authority School District (Miscellaneous Revenue)		4.00			6-1-2017		800,000		810,104
Michigan Finance Authority School District (Miscellaneous Revenue)		5.00			6-1-2017		750,000		762,510
Michigan Finance Authority School District (Miscellaneous Revenue)		5.00			7-1-2021		2,060,000		2,176,102
Michigan Finance Authority Unemployment Obligation Assessment Series B (Miscellaneous Revenue)		5.00			1-1-2020		15,000,000		16,269,450
Michigan Hospital Finance Authority Ascension Health Series A-3 (Health Revenue) ±		1.87			11-1-2027		22,070,000		22,180,571
Michigan Hospital Finance Authority Ascension Health Subordinated Credit Group Series 2005 A-4 (Health Revenue) ±		1.63			11-1-2027		3,260,000		3,230,204
Michigan Housing Development Authority Series A (Housing Revenue)		1.80			4-1-2019		7,000,000		7,005,110
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		29,250,000		29,615,625
Rochester MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		900,000		911,691
Rochester MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		900,000		969,813
South Lyon MI Community School District (GO Revenue)		4.00			5-1-2018		2,060,000		2,131,194
South Lyon MI Community School District (GO Revenue)		4.00			5-1-2019		1,860,000		1,960,626
South Lyon MI Community School District (GO Revenue)		4.00			5-1-2020		1,425,000		1,523,026
Southgate MI Community School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			5-1-2019		1,000,000		1,077,570
Southgate MI Community School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			5-1-2020		500,000		550,830
Warren Woods MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,445,000		1,463,612

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

18 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Warren Woods MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00	%		5-1-2020	$	1,445,000	$	1,590,916
Wayne County MI Airport Authority Refunding Bond Series A (Airport Revenue)		5.00			12-1-2019		19,405,000		20,886,960
Western Michigan University Refunding Bond (Education Revenue)		5.00			11-15-2020		1,000,000		1,112,990
									225,806,445
Minnesota: 0.29%
Central Minnesota Municipal Power Agency Brookings Southeast Twin Cities Transmission Project (Utilities Revenue)		5.00			1-1-2017		1,215,000		1,215,134
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		10,410,000		10,474,854
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.95			11-15-2017		3,000,000		2,985,000
Northern Minnesota Municipal Power Agency Series 2008A (Utilities Revenue, AGC Insured)		5.00			1-1-2018		670,000		695,232
									15,370,220
Mississippi: 0.42%
Mississippi Business Finance Corporation Coast Electric Power Association (Utilities Revenue) ±		0.95			5-1-2037		5,000,000		4,997,200
Mississippi Business Finance Corporation Power Company Project 1st Series (Utilities Revenue) ±		1.63			12-1-2040		10,075,000		10,090,012
Mississippi Refunding Bond Capital Improvements Projects Series D (Miscellaneous Revenue) ±		1.10			9-1-2017		7,050,000		7,056,063
									22,143,275
Missouri: 0.55%
Arnold MO Real Property Arnold Triangle Redevelopment Project Series A (Tax Revenue)		3.75			5-1-2023		3,000,000		2,999,280
Kansas City MO Series A (GO Revenue)		5.00			2-1-2018		1,150,000		1,198,530
Kansas City MO Series A (GO Revenue)		5.00			2-1-2019		1,000,000		1,074,100
Kansas City MO Series A (GO Revenue)		5.00			2-1-2020		1,495,000		1,646,952
Sikeston MO Electric System Refunding Bond (Utilities Revenue)		5.00			6-1-2019		11,625,000		12,360,746
Tender Option Bond Trust Receipts/Certificates Floaters Series 2015-XF1015 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.90			11-15-2048		10,000,000		10,000,000
									29,279,608
Nebraska: 0.02%
Public Power Generation Agency Whelan Energy Center Unit (Utilities Revenue)		5.00			1-1-2020		1,000,000		1,085,180
Nevada: 0.67%
Clark County NV Airport Jet Aviation Fuel Tax Series A (Airport Revenue)		5.00			7-1-2019		1,000,000		1,074,910
Clark County NV Airport Jet Aviation Fuel Tax Series A (Airport Revenue)		5.00			7-1-2020		1,000,000		1,095,670
Clark County NV PCR (Industrial Development Revenue) ±		1.88			6-1-2031		880,000		876,128
Clark County NV School District Series A (GO Revenue, National Insured)		5.00			6-15-2021		2,000,000		2,094,220
Clark County NV School District Series B (GO Revenue)		5.00			6-15-2019		18,800,000		20,339,720
Clark County NV School District Series B (GO Revenue)		5.00			6-15-2021		1,400,000		1,453,424
Washoe County NV Sierra Pacific Power Series B (Utilities Revenue) ±		3.00			3-1-2036		500,000		513,215
Washoe County NV Water Facilities Refunding Bond AMT Sierra Pacific Power Company Project Series 2016E (Water & Sewer Revenue) ±		0.79			3-1-2036		8,000,000		8,000,000
									35,447,287

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
New Hampshire: 0.12%
New Hampshire HEFA Catholic Medical Center (Health Revenue)		4.00	%		7-1-2018	$	2,405,000	$	2,476,573
New Hampshire HEFA Catholic Medical Center (Health Revenue)		4.00			7-1-2019		2,635,000		2,747,251
New Hampshire HFA SFMR Series B (Housing Revenue)		5.00			7-1-2027		1,170,000		1,208,879
									6,432,703
New Jersey: 5.19%
Andover NJ Regional School District Refunding School Bond Series 2014 (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2020		515,000		531,351
Casino Reinvestment Development Authority New Jersey (Tax Revenue)		4.00			11-1-2017		1,000,000		1,005,380
Casino Reinvestment Development Authority New Jersey (Tax Revenue)		4.00			11-1-2019		1,425,000		1,431,256
Hudson County NJ Refunding Bond County College (GO Revenue)		4.00			7-15-2017		1,000,000		1,016,280
Hudson County NJ Refunding Bond County College (GO Revenue)		4.00			7-15-2018		1,135,000		1,183,714
Jersey City NJ Refunding Bond (GO Revenue, AGM Insured)		4.00			9-1-2017		1,620,000		1,648,998
New Jersey Certificate of Participation Equipment Lease Purchase Agreement Series A (Miscellaneous Revenue)		5.00			6-15-2018		11,160,000		11,555,845
New Jersey EDA (Tobacco Revenue)		4.00			6-15-2019		2,500,000		2,584,600
New Jersey EDA CAB Saint Barnabas Hospital Series A (Health Revenue, National Insured) ¤		0.00			7-1-2017		2,740,000		2,721,532
New Jersey EDA Cigarette Tax (Tobacco Revenue)		5.00			6-15-2017		18,630,000		18,882,995
New Jersey EDA School Facilities Construction Bonds Series DD-1 (Miscellaneous Revenue)		5.00			12-15-2019		1,000,000		1,051,050
New Jersey EDA School Facilities Construction Bonds Series K (Miscellaneous Revenue, National Insured)		5.25			12-15-2021		1,040,000		1,142,378
New Jersey EDA School Facilities Construction Notes (Miscellaneous Revenue) ±		1.62			2-1-2017		20,725,000		20,725,000
New Jersey EDA School Facilities Construction Notes Series C (Miscellaneous Revenue) ±		2.52			2-1-2018		28,000,000		28,178,920
New Jersey EDA School Facilities Construction Notes Series DD1 (Miscellaneous Revenue)		5.00			12-15-2018		4,690,000		4,895,188
New Jersey EDA School Facilities Construction Notes Series K (Miscellaneous Revenue) ±		1.46			2-1-2017		10,000,000		10,000,000
New Jersey EDA School Facilities Construction Notes Series NN (Miscellaneous Revenue)		5.00			3-1-2022		330,000		347,470
New Jersey EDA Series BBB (Miscellaneous Revenue)		5.00			6-15-2022		6,000,000		6,323,280
New Jersey EDA Series BBB (Miscellaneous Revenue)		5.00			6-15-2023		4,000,000		4,226,920
New Jersey EDA Series UU (Miscellaneous Revenue)		5.00			6-15-2017		3,000,000		3,055,950
New Jersey EDA Series UU (Miscellaneous Revenue)		5.00			6-15-2018		7,355,000		7,756,583
New Jersey EDA Series XX (Miscellaneous Revenue)		5.00			6-15-2022		7,500,000		7,904,100
New Jersey EDA Unrefunded Bond School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2020		610,000		645,020
New Jersey EDA Unrefunded Bond School Facilities School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2018		865,000		899,185
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series A (Education Revenue)		4.00			9-1-2017		2,675,000		2,708,946
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series B (Education Revenue)		4.00			9-1-2017		525,000		531,662
New Jersey Educational Facilities Authority Higher Education Capital Improvement Project Series D (Education Revenue)		4.00			9-1-2017		565,000		572,170
New Jersey HCFA Trinitas Hospital Obligation Bonds Series B (Health Revenue)		5.25			7-1-2023		4,475,000		4,560,786
New Jersey HFFA Greystone Park Psychiatric Hospital Project Series B (Miscellaneous Revenue)		5.00			9-15-2019		2,135,000		2,239,039

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

20 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey Higher Education Assistance Authority Series A1 (Education Revenue)		3.63	%		12-1-2030	$	880,000	$	890,657
New Jersey Higher Education Assistance Authority Series A1 (Education Revenue)		5.00			12-1-2020		9,775,000		10,510,569
New Jersey Housing and Mortgage Finance Agency Series B (Housing Revenue)		1.15			11-1-2018		11,095,000		11,012,120
New Jersey Housing and Mortgage Finance Agency Series B (Housing Revenue)		1.25			5-1-2019		6,000,000		5,937,060
New Jersey Prerefunded Bond School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2018		2,375,000		2,521,894
New Jersey Prerefunded Bond School Facilities Construction Series EE (Miscellaneous Revenue)		5.00			9-1-2020		1,650,000		1,837,853
New Jersey Sports & Exposition Authority Series B (Miscellaneous Revenue)		5.00			9-1-2018		1,605,000		1,668,430
New Jersey Transit Corporation Federal Transit Administration Grants Series A (Miscellaneous Revenue, National Insured)		5.00			9-15-2017		7,265,000		7,471,907
New Jersey Transportation Trust Fund Authority Series A (Miscellaneous Revenue)		5.00			12-15-2019		3,000,000		3,154,650
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			12-15-2018		1,000,000		1,043,170
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		33,465,000		35,714,517
New Jersey TTFA Series A1 (Transportation Revenue)		5.00			6-15-2020		7,000,000		7,481,180
New Jersey TTFA Series A1 (Transportation Revenue)		5.00			6-15-2021		5,000,000		5,352,750
New Jersey TTFA Series AA (Transportation Revenue)		5.00			6-15-2019		2,070,000		2,165,696
New Jersey TTFA Transit System Series A (GO Revenue)		5.75			6-15-2020		4,150,000		4,441,289
New Jersey Turnpike Authority Series B-3 (Transportation Revenue) ±		0.98			1-1-2024		4,700,000		4,689,754
Newark NJ Housing Authority Refunding Bond Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.25			1-1-2020		2,170,000		2,364,606
Newark NJ Housing Authority Refunding Bond Newark Redevelopment Project (Miscellaneous Revenue, National Insured)		5.25			1-1-2021		4,570,000		5,053,232
Rutgers University Series J (Education Revenue)		4.00			5-1-2018		700,000		725,928
Rutgers University Series L (Education Revenue)		5.00			5-1-2017		600,000		608,220
Rutgers University Series L (Education Revenue)		5.00			5-1-2018		300,000		315,075
Trenton City NJ Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			12-1-2017		1,710,000		1,744,696
Trenton City NJ Refunding Bond (GO Revenue)		4.00			7-15-2019		1,815,000		1,876,184
Trenton City NJ Refunding Bond (GO Revenue)		4.00			7-15-2020		1,685,000		1,748,188
Trenton City NJ Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2020		1,675,000		1,832,115
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		3.00			8-1-2017		600,000		605,910
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		4.00			8-1-2018		425,000		441,129
Winslow Township NJ Board of Education Refunding Bond (GO Revenue)		4.00			8-1-2019		525,000		553,681
									274,088,058
New Mexico: 0.81%
Farmington NM PCR Series B (Utilities Revenue) ±		4.75			6-1-2040		5,080,000		5,129,378
Farmington NM PCR Southern California Edison Company Four Corners Project Series B (Utilities Revenue) ±		1.88			4-1-2029		4,750,000		4,690,673
New Mexico Educational Assistance Foundation Series A2 (Education Revenue) ±		1.32			12-1-2028		230,000		229,294
New Mexico Mortgage Finance Authority SFMR Class I-A-2 (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.60			1-1-2039		225,000		235,989
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.16			11-1-2039		32,500,000		32,301,100
									42,586,434

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
New York: 12.10%
Broome County NY BAN (GO Revenue)		2.00	%		5-5-2017	$	20,000,000	$	20,060,600
Candor Central School District Tioga and Tompkins Counties NY BAN (GO Revenue)		2.00			6-29-2017		12,000,000		12,047,400
Corning NY City School District BAN (GO Revenue)		2.00			6-22-2017		11,875,000		11,911,456
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		1.08			5-1-2033		12,000,000		11,997,000
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		1.31			5-1-2033		33,750,000		33,881,963
Metropolitan Transportation Authority New York Sub Series D2 (Transportation Revenue) ±		4.00			11-15-2034		14,665,000		15,481,694
Metropolitan Transportation Authority New York Sub Series A2 (Transportation Revenue) ±		1.31			11-15-2039		2,000,000		1,998,260
Metropolitan Transportation Authority New York Sub Series A3 (Transportation Revenue) ±		1.22			11-15-2042		39,500,000		39,344,370
Metropolitan Transportation Authority New York Sub Series B3 (Tax Revenue) ±		1.62			11-1-2018		32,600,000		32,730,400
Metropolitan Transportation Authority New York Sub Series B4 (Transportation Revenue) ±		5.00			11-15-2030		13,620,000		14,776,747
Metropolitan Transportation Authority New York Sub Series C2 (Transportation Revenue) ±		4.00			11-15-2033		8,000,000		8,603,200
Metropolitan Transportation Authority New York Sub Series D2 (Transportation Revenue, AGM Insured) ±		1.03			11-1-2032		15,750,000		15,753,308
Metropolitan Transportation Authority New York Sub Series G1 (Transportation Revenue) ±		0.89			11-1-2026		31,950,000		31,718,043
Metropolitan Transportation Authority New York Sub Series G4 (Transportation Revenue) ±		1.25			11-1-2030		11,600,000		11,631,668
Middletown NY City School District BAN (GO Revenue)		2.00			6-22-2017		14,000,000		14,054,880
Monroe County NY IDAG Continuing Development Services Project (Industrial Development Revenue, Citizens Bank LOC) ø		0.89			7-1-2027		2,775,000		2,775,000
Nassau County NY Prerefunded Bond Series C (GO Revenue)		5.00			10-1-2020		3,020,000		3,308,199
Nassau County NY Series A (GO Revenue)		5.00			1-1-2020		4,000,000		4,372,520
Nassau County NY Series F (GO Revenue)		5.00			10-1-2020		1,780,000		1,928,256
Nassau County NY Unrefunded Bond Series C (GO Revenue)		5.00			10-1-2020		45,000		49,008
New York City NY Housing Development Corporation Sustainable Neighborhood Bonds Series I2B (Housing Revenue) ±		2.00			5-1-2021		12,000,000		11,983,800
New York City NY Transitional Future Tax Series A-3B (Tax Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.75			11-1-2029		8,700,000		8,700,000
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		1.32			5-1-2018		6,655,000		6,658,660
New York Dormitory Authority St. John University Series B-1 (Education Revenue, Bank of America NA LOC) ø		0.68			7-1-2034		4,385,000		4,385,000
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2017		2,250,000		2,293,043
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2018		750,000		792,878
New York Environmental Facilities Corporation Municipal Water Series A (Water & Sewer Revenue)		5.00			6-15-2019		1,000,000		1,088,740
New York Local Government Assistance Corporation Series A9V (Tax Revenue, AGM Insured) ±(m)(n)		0.99			4-1-2017		4,225,000		4,225,000
New York NY Adjusted Fiscal 2008 Sub Series A4 (GO Revenue, AGM Insured) ±(m)		0.84			8-1-2026		4,000,000		4,000,000
New York NY Adjusted Fiscal 2008 Sub Series C4 (GO Revenue, AGC Insured) ±(m)		0.84			10-1-2027		14,075,000		14,075,000
New York NY Energy Research & Development Authority Gas Facilities Brooklyn Union Gas Project Series A1 (Utilities Revenue, National Insured) ±(m)(n)		1.28			12-1-2020		15,000,000		14,400,000
New York NY Health & Hospital Corporation Health System Series A (Health Revenue)		5.50			2-15-2020		5,755,000		6,020,018

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

22 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York NY IDA 123 Washington LLC Project (Industrial Development Revenue, Bank of China LOC) ø		0.90	%		10-1-2042	$	5,700,000	$	5,700,000
New York NY IDAG Refunding Bond Senior Trips Series A (Airport Revenue)		5.00			7-1-2017		2,000,000		2,030,120
New York NY Refunding Bond Fiscal 2015 Series A (GO Revenue)		5.00			8-1-2021		7,515,000		8,514,495
New York NY Series J-4 (GO Revenue) ±		1.27			8-1-2025		2,000,000		2,000,720
New York NY Sub Series J-11 (GO Revenue) ±		1.30			8-1-2027		40,960,000		40,944,026
New York NY Transitional Finance Authority Sub Series 2A (Tax Revenue, Dexia Credit Local LIQ) ø		0.93			11-1-2022		8,780,000		8,780,000
New York NY Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2019		1,855,000		2,001,860
New York Tender Option Bond Trust Receipts/Certificates Series 2016 (Health Revenue, Barclays Bank plc LIQ) 144Aø		0.82			7-1-2024		9,940,000		9,940,000
New York Tobacco Settlement Financing Corporation Series B (Tobacco Revenue)		5.00			6-1-2017		6,500,000		6,608,355
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2020		11,000,000		11,441,980
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		15,587,400
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		42,760,000		42,742,896
New York Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2020		25,175,000		27,842,291
Oyster Bay NY BAN Series A (GO Revenue)		2.75			2-3-2017		15,000,000		15,008,250
Oyster Bay NY BAN Series D (GO Revenue)		3.88			6-28-2017		3,485,000		3,496,291
Oyster Bay NY Public Improvement Series B (GO Revenue, AGM Insured)		3.00			11-1-2018		1,140,000		1,167,691
Oyster Bay NY TAN Series B (GO Revenue)		5.25			4-7-2017		3,500,000		3,522,435
Rockland County NY Public Improvement Series C (GO Revenue, AGM Insured)		3.00			5-1-2020		1,390,000		1,424,208
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2018		2,475,000		2,515,417
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2019		1,830,000		1,871,321
Rockland County NY Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		3.00			2-15-2020		630,000		645,523
Sachem NY Center School District Suffolk County TAN 2016-2017 (GO Revenue)		1.50			6-29-2017		16,000,000		16,011,360
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2017		2,365,000		2,426,443
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2018		2,640,000		2,777,095
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2019		2,775,000		2,970,998
Suffolk County NY Judicial Facilities Agency Leases H. Lee Dennison Building (Miscellaneous Revenue)		5.00			11-1-2020		2,915,000		3,163,504
Suffolk County NY Public Improvement Series A (GO Revenue)		4.00			5-15-2018		1,615,000		1,671,557
Suffolk County NY Refunding Bond (GO Revenue, AGM Insured)		5.00			2-1-2017		1,500,000		1,505,160
Suffolk County NY Refunding Bond Series A (GO Revenue)		5.00			4-1-2018		2,700,000		2,820,933
Suffolk County NY Refunding Bond Series A (GO Revenue)		5.00			4-1-2019		1,385,000		1,487,490
Suffolk County NY TAN (GO Revenue)		2.00			7-26-2017		19,000,000		19,071,820
Triborough Bridge & Tunnel Authority New York Refunding Bond Sub Series ABCD-3 (Transportation Revenue, AGM Insured) ±		0.97			1-1-2017		4,100,000		4,100,000
									638,837,750

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
North Carolina: 0.48%
North Carolina Eastern Municipal Power Agency Series C (Utilities Revenue, AGC Insured)		6.00	%		1-1-2019	$	490,000	$	513,236
North Carolina Eastern Municipal Power Agency Series D (Utilities Revenue)		5.00			1-1-2017		10,000,000		10,001,200
North Carolina Grant Anticipation Capital Improvement (Miscellaneous Revenue) ±		4.00			3-1-2023		13,145,000		13,395,544
North Carolina Medical Care Commission Novant Health Obligated Group Series A (Health Revenue)		4.00			11-1-2017		1,330,000		1,360,790
									25,270,770
North Dakota: 0.11%
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		5,000,000		5,005,100
Ward County ND HCFR Trinity Obligated Group (Health Revenue)		5.13			7-1-2018		1,000,000		1,003,020
									6,008,120
Ohio: 3.06%
Crawford County OH Avita Health System Obligated Group Project (Health Revenue)		1.43			11-1-2017		10,000,000		10,000,300
Cuyahoga OH Metropolitan Housing Authority Carver Park Phase I Project (Housing Revenue) ±		1.00			9-1-2019		7,000,000		6,928,950
Cuyahoga OH Metropolitan Housing Authority Headquarters Project (Housing Revenue)		1.75			3-1-2020		5,835,000		5,728,511
Cuyahoga OH Metropolitan Housing Authority Heritage View Homes Project (Housing Revenue)		1.00			6-1-2017		5,550,000		5,545,394
Franklin County OH Hospital Facilities Refunding Bond Ohio Health Corporation Series B (Health Revenue) ±		5.00			11-15-2033		16,705,000		17,044,112
Lake County OH Lake Hospital System Incorporated (Health Revenue)		5.00			8-15-2020		905,000		995,391
Lancaster OH Port Authority (Utilities Revenue, Royal Bank of Canada SPA) ±		1.13			5-1-2038		73,500,000		72,856,140
Lorain County OH Port Authority EDA Series A (Health Revenue)		4.00			11-15-2018		670,000		696,700
Lucas Metropolitan Housing Authority OH Certificate of Participation (Housing Revenue)		2.25			11-1-2020		1,015,000		1,012,696
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2017		1,575,000		1,580,276
Muskingum County OH Hospital Facilities Genesis Healthcare System Project (Health Revenue)		5.00			2-15-2018		1,000,000		1,027,980
Ohio Air Quality Development Authority PCR Facilities Refunding Bond FirstEnergy Generation Project (Resource Recovery Revenue) ±		3.10			3-1-2023		10,000,000		4,183,900
Ohio Air Quality Development Authority Series A (Miscellaneous Revenue) ±		3.13			7-1-2033		1,500,000		628,245
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75			12-1-2023		9,000,000		3,766,230
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			12-1-2033		2,000,000		836,040
Ohio Portsmouth Bypass Project (Miscellaneous Revenue)		5.00			12-31-2020		1,000,000		1,096,200
Ohio Portsmouth Bypass Project (Miscellaneous Revenue)		5.00			12-31-2021		1,205,000		1,336,200
Ohio Water Development Authority First Energy Nuclear Generation Project Series A (Water & Sewer Revenue)		3.00			5-15-2019		31,000,000		12,966,990
Ohio Water Development Authority Pollution Control Series A (Industrial Development Revenue) ±		3.75			7-1-2033		17,950,000		7,503,639
Springfield OH (GO Revenue, AGC Insured)		4.00			12-1-2020		1,005,000		1,052,346
Warren County OH HCFR Otterbein Homes Series A (Health Revenue)		5.00			7-1-2018		2,000,000		2,103,320
Warren County OH HCFR Otterbein Homes Series A (Health Revenue)		5.00			7-1-2019		2,215,000		2,386,574
									161,276,134

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

24 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma: 0.61%
Blaine County OK Educational Facilities Authority Watonga Public Schools Project (Miscellaneous Revenue)		5.00	%		12-1-2021	$	945,000	$	1,053,921
Cleveland County OK Educational Facilities Authority Norman Public Schools Project (Miscellaneous Revenue)		5.00			7-1-2018		2,680,000		2,820,914
Cleveland County OK Educational Facilities Authority Norman Public Schools Project (Miscellaneous Revenue)		5.00			7-1-2019		2,000,000		2,159,520
Cleveland County OK Justice Authority Detention Facility Project (Tax Revenue)		4.00			3-1-2020		500,000		521,660
Creek County OK Educational Facilities Authority Sapulpa Public School Project (Miscellaneous Revenue)		5.00			9-1-2020		2,550,000		2,810,687
Grady County OK School Finance Authority Tuttle Public School Project (Miscellaneous Revenue)		5.00			9-1-2019		1,000,000		1,082,180
Grady County OK School Finance Authority Tuttle Public School Project (Miscellaneous Revenue)		5.00			9-1-2021		1,065,000		1,191,234
Oklahoma City OK Industrial & Cultural Facilities Series B (Health Revenue, National Insured) ±(m)(n)		1.10			6-1-2019		10,300,000		9,926,625
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2018		1,240,000		1,277,746
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2019		3,025,000		3,235,026
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2020		1,000,000		1,089,420
Tulsa OK Airports Improvement Trust Series A (Airport Revenue)		4.00			6-1-2017		1,250,000		1,260,588
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2018		530,000		553,527
Tulsa OK Airports Improvement Trust Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2020		695,000		757,147
Tulsa OK Airports Improvement Trust Series B (Airport Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2018		860,000		886,178
Woodward County OK PFFA Series B (Tax Revenue)		3.25			9-1-2026		1,380,000		1,384,223
									32,010,596
Other: 1.14%
Branch Banking & Trust Municipal Investment Trust Various States Class C (Miscellaneous Revenue, Rabobank LOC) 144A±		1.43			11-15-2017		7,058,799		7,050,540
Branch Banking & Trust Municipal Investment Trust Various States Class C (Miscellaneous Revenue, Rabobank LOC) 144A±		1.78			12-31-2019		20,000,000		19,997,200
Branch Banking & Trust Municipal Investment Trust Various States Class D (Miscellaneous Revenue, Rabobank LOC) ±		1.47			12-1-2017		1,995,000		1,995,000
Branch Banking & Trust Municipal Investment Trust Various States Class D (Miscellaneous Revenue, Rabobank LOC) 144A±		1.53			11-15-2019		6,000,000		5,959,440
FHLMC Multifamily Certificates Series M012 Class A1B (Miscellaneous Revenue)		2.70			8-15-2051		15,000,000		15,137,700
Public Housing Capital Fund Trust I (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		7,429,667		7,626,776
Public Housing Capital Fund Trust II (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		2,417,348		2,468,693
									60,235,349
Pennsylvania: 7.77%
Allegheny County PA Airport Authority Pittsburgh International Airport (Airport Revenue, FGIC Insured)		5.00			1-1-2017		2,500,000		2,500,275
Allegheny County PA Hospital Development Authority University of Pittsburgh Medical Center Series A-1 (Health Revenue) ±		1.31			2-1-2021		3,190,000		3,188,692
Allegheny County PA Series C-68 (GO Revenue)		5.00			11-1-2017		1,340,000		1,384,877

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50	%		12-1-2035	$	4,300,000	$	1,797,486
Beaver County PA IDA Pollution Control First Nuclear General Project Series A (Utilities Revenue) ±		2.70			4-1-2035		1,400,000		586,684
Delaware County PA Authority Neumann University (Miscellaneous Revenue)		4.00			10-1-2021		3,215,000		3,349,033
Delaware County PA IDA Resource Recovery Facility Series A (Resource Recovery Revenue)		6.20			7-1-2019		1,425,000		1,429,617
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2018		2,020,000		2,134,292
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue)		5.75			7-1-2017		8,900,000		9,101,051
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Ambac Insured)		5.60			7-1-2017		5,015,000		5,124,528
Erie PA Higher Education Building Authority Mercyhurst College Project (Education Revenue)		5.00			3-15-2018		735,000		767,752
Hempfield PA School District (GO Revenue) ±		0.77			8-1-2017		3,770,000		3,759,595
Lackawanna County PA Riverside School District Project (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-15-2019		1,400,000		1,479,562
Lackawanna County PA Riverside School District Project (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-15-2020		1,455,000		1,551,263
Manheim Township PA School District Series A (GO Revenue) ±		0.76			5-1-2025		4,700,000		4,653,752
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2017		1,400,000		1,402,170
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2018		1,000,000		1,033,910
Montgomery County PA IDA Albert Einstein Healthcare Network Issue Series A (Health Revenue)		5.00			1-15-2020		1,315,000		1,411,284
Montgomery County PA IDA Exelon Generation Company LLC (Industrial Development Revenue) ±		2.50			10-1-2030		40,795,000		40,322,186
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50			10-1-2030		30,000,000		29,652,300
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.60			3-1-2034		2,125,000		2,108,319
Nazareth PA Area School District (GO Revenue) ±		0.88			2-1-2031		15,040,000		14,968,410
Penn Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2020		825,000		896,726
Penn Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2021		1,275,000		1,401,353
Pennsylvania Certificate of Participation (Miscellaneous Revenue, AGM Insured)		2.00			11-1-2019		1,100,000		1,093,653
Pennsylvania Certificate of Participation (Miscellaneous Revenue, AGM Insured)		4.00			11-1-2019		1,005,000		1,054,145
Pennsylvania EDFA PA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2020		1,850,000		1,997,908
Pennsylvania EDFA PA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2021		1,095,000		1,188,568
Pennsylvania EDFA Pennsylvania Rapid Bridge Replacement Project (Industrial Development Revenue)		4.00			6-30-2018		6,675,000		6,879,389
Pennsylvania EDFA Solid Waste Disposal Republic Services Incorporated Project (Resource Recovery Revenue) ±		1.15			6-1-2044		21,300,000		21,300,000
Pennsylvania HEFAR Foundation Indiana University PA Series A (Education Revenue, Syncora Guarantee Incorporated Insured) ±		1.02			7-1-2017		860,000		858,074
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2018		2,200,000		2,279,112
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2019		1,220,000		1,290,772
Pennsylvania Public School Building Authority Series 11396 (Miscellaneous Revenue, AGM Insured, Citibank NA LIQ) 144Aø		0.92			12-1-2023		5,000,000		5,000,000

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

26 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania Public School Building Authority The School District of Pennsylvania Project (Miscellaneous Revenue)		5.00	%		4-1-2017	$	2,685,000	$	2,708,521
Pennsylvania Refunding Bond (GO Revenue)		5.00			1-15-2021		38,295,000		42,602,805
Pennsylvania Refunding Bond (GO Revenue)		5.00			1-15-2022		52,845,000		59,644,566
Pennsylvania Turnpike Commission Series A (Transportation Revenue) ±		1.32			12-1-2017		14,765,000		14,760,866
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		1.87			12-1-2019		18,150,000		18,271,605
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		2.00			12-1-2020		11,300,000		11,409,836
Philadelphia PA Gas Works 10th Series 1998 General Ordinance (Utilities Revenue, AGM Insured)		5.00			7-1-2019		2,500,000		2,700,025
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2018		8,385,000		8,678,475
Philadelphia PA Housing Authority Series A (Housing Revenue, AGM Insured)		5.25			12-1-2017		2,335,000		2,342,822
Philadelphia PA RDA Transformation Initiative (Miscellaneous Revenue)		5.00			4-15-2017		1,500,000		1,515,990
Philadelphia PA RDA Transformation Initiative Series B (Miscellaneous Revenue)		5.00			4-15-2019		2,000,000		2,137,780
Philadelphia PA RDA Transformation Initiative Series B (Miscellaneous Revenue)		5.00			4-15-2020		1,870,000		2,030,409
Philadelphia PA School District Series A (GO Revenue)		4.00			9-1-2017		500,000		507,095
Philadelphia PA School District Series C (GO Revenue)		5.00			9-1-2017		2,150,000		2,194,742
Philadelphia PA School District Series C (GO Revenue)		5.00			9-1-2020		1,125,000		1,217,340
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2018		5,300,000		5,555,407
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2020		1,500,000		1,614,945
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2021		1,750,000		1,902,390
Philadelphia PA School District Series E (GO Revenue, State Aid Withholding Insured)		5.00			9-1-2020		2,075,000		2,226,517
Philadelphia PA School District Series E (GO Revenue)		5.25			9-1-2023		7,000,000		7,466,130
Philadelphia PA School District Series F (GO Revenue)		5.00			9-1-2020		2,750,000		2,960,733
Philadelphia PA School District Series F (GO Revenue)		5.00			9-1-2021		3,500,000		3,804,780
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2017		1,000,000		1,020,400
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2018		1,000,000		1,053,330
Philadelphia PA Series A (GO Revenue, AGM Insured)		5.00			8-1-2019		4,550,000		4,647,507
Reading PA Parking Authority CAB (Transportation Revenue, National Insured) ¤		0.00			11-15-2019		1,000,000		924,160
Scranton PA RAN (Tax Revenue) %%		2.50			12-15-2017		3,250,000		3,248,798
Scranton PA RDA Guaranteed Series A (Miscellaneous Revenue, Municipal Government Guaranty Insured)		5.00			11-15-2021		2,925,000		2,998,769
Susquehanna PA Regional Airport Authority Sub Series C (Airport Revenue)		3.00			1-1-2017		1,140,000		1,140,023
Warwick PA School District (GO Revenue)		4.00			2-15-2020		1,000,000		1,066,550
West Mifflin PA School District (GO Revenue, AGM Insured)		3.00			10-1-2017		400,000		404,136
West Mifflin PA School District (GO Revenue, AGM Insured)		4.00			10-1-2017		410,000		417,294
West Mifflin PA School District (GO Revenue, AGM Insured)		5.00			10-1-2018		605,000		636,841
West Mifflin PA School District (GO Revenue, AGM Insured)		5.00			10-1-2019		750,000		803,265
York County PA Refunding Bond (GO Revenue) ±		0.72			6-1-2033		14,690,000		14,681,480
									410,243,070
Puerto Rico: 0.59%
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		11,825,000		12,036,431
Puerto Rico Electric Power Authority Refunding Bond Series SS (Utilities Revenue, National Insured)		4.25			7-1-2017		550,000		550,908
Puerto Rico Highway & Transportation Authority Refunding Bond Series AA (Transportation Revenue, National Insured)		5.50			7-1-2017		7,500,000		7,634,475

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 27

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico (continued)
Puerto Rico Public Buildings Authority Government Facilities Refunding Bond Series F (Miscellaneous Revenue, AGC Insured)		5.25	%		7-1-2017	$	10,200,000	$	10,361,874
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		432,400
									31,016,088
Rhode Island: 0.30%
Rhode Island Health & Educational Building Corporation Providence College (Education Revenue)		5.00			11-1-2018		265,000		281,213
Rhode Island Health & Educational Building Corporation Providence Public Schools Program Series A (Miscellaneous Revenue)		4.00			5-15-2017		1,500,000		1,515,225
Rhode Island Health & Educational Building Corporation Providence Public Schools Program Series A (Miscellaneous Revenue)		5.00			5-15-2019		1,000,000		1,069,250
Rhode Island Student Loan Authority AMT Series A (Education Revenue)		5.00			12-1-2019		450,000		481,887
Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		2.25			6-1-2041		12,525,000		12,511,724
									15,859,299
South Carolina: 0.16%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		179,606		175,964
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		198,490		178,585
Lee County SC School Facilities Incorporated Lee County School District Project (Miscellaneous Revenue, AGM Insured)		2.00			6-1-2018		325,000		326,199
Lee County SC School Facilities Incorporated Lee County School District Project (Miscellaneous Revenue, AGM Insured)		3.00			12-1-2017		275,000		278,768
Lee County SC School Facilities Incorporated Lee County School District Project (Miscellaneous Revenue, AGM Insured)		3.00			12-1-2018		390,000		398,401
South Carolina Housing Finance & Development Authority Housing Waters Berryhill (Housing Revenue) ±		1.60			12-1-2019		7,250,000		7,254,930
									8,612,847
Tennessee: 0.92%
Clarksville TN Natural Gas Acquisition Corporation (Utilities Revenue)		5.00			12-15-2017		1,330,000		1,370,246
Clarksville TN Water Sewer & Gas Refunding Bond (Water & Sewer Revenue)		4.00			2-1-2017		835,000		837,121
Knox County TN HEFA Prerefunded Bond University Health System Incorporated (Health Revenue)		5.00			4-1-2019		525,000		530,455
Knox County TN HEFA Unrefunded Bond University Health System Incorporated (Health Revenue)		5.00			4-1-2019		1,185,000		1,194,207
Memphis-Shelby County TN Airport Authority Series A1 (Airport Revenue)		5.75			7-1-2019		1,500,000		1,638,570
Memphis-Shelby County TN Airport Authority Series B (Airport Revenue)		5.38			7-1-2018		1,000,000		1,054,150
Memphis-Shelby County TN Airport Authority Series B (Airport Revenue)		5.50			7-1-2019		1,505,000		1,634,882
Metropolitan Government Nashville & Davidson County TN Prerefunded Bond (Education Revenue) ±		1.33			10-1-2038		4,875,000		4,875,585
Metropolitan Government Nashville & Davidson County TN Unrefunded Bond (Education Revenue) ±		1.33			10-1-2038		5,125,000		5,125,871
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		5,440,000		5,566,752
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		3,300,000		3,484,074
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2019		6,225,000		6,727,918
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2018		8,895,000		9,209,438
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2019		5,110,000		5,409,753
									48,659,022

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

28 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas: 13.80%
Austin TX Affordable Housing Public Facility Corporation Pathways at Georgian Manor (Housing Revenue) ±		1.15	%		11-1-2019	$	14,040,000	$	13,981,594
Central Texas Regional Mobility Authority Senior Lien (Transportation Revenue)		5.75			1-1-2017		500,000		500,070
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2017		1,500,000		1,500,165
Central Texas Regional Mobility Authority Subordinated Lien (Transportation Revenue)		5.00			1-1-2018		250,000		258,778
Central Texas Regional Mobility Authority Subordinated Lien (Transportation Revenue)		5.00			1-1-2019		750,000		795,938
Clear Creek TX Independent School District Series B (GO Revenue) ±		1.35			2-15-2038		12,000,000		11,991,480
Clear Creek TX Independent School District Series B (GO Revenue) ±		3.00			2-15-2032		4,270,000		4,396,050
Coastal Bend TX Health Facilities Development Corporation (Health Revenue, AGM Insured) ±(m)		0.84			7-1-2031		2,800,000		2,800,000
Corpus Christi TX Utility System Junior Lien Series B (Water & Sewer Revenue) ±		2.00			7-15-2045		12,585,000		12,591,670
Cypress Fairbanks TX School District (GO Revenue)		4.25			2-15-2021		2,775,000		2,786,905
Cypress Fairbanks TX School District Series B-1 (GO Revenue) ±		3.00			2-15-2036		10,130,000		10,474,015
Dallas TX Series A (GO Revenue)		5.00			2-15-2019		5,000,000		5,336,350
Denton TX Independent School District (GO Revenue) ±		2.00			8-1-2043		7,000,000		7,022,820
Denton TX Independent School District (GO Revenue) ±		2.13			8-1-2042		10,895,000		10,993,382
Denton TX Independent School District Series B (GO Revenue) ±		2.00			8-1-2044		39,075,000		39,407,528
Eagle Mountain & Saginaw TX Independent School District (GO Revenue) ±		2.00			8-1-2050		12,150,000		12,259,593
Fort Bend Independent School District School Building Series B (GO Revenue) ±		2.00			8-1-2040		11,770,000		11,830,498
Georgetown TX Independent School District (GO Revenue) ±		2.00			8-1-2034		4,620,000		4,645,040
Goose Creek TX Consolidated Independent School District (GO Revenue) ±		1.35			2-15-2040		15,160,000		15,144,385
Harlandale TX Independent School District (GO Revenue) ±		2.00			8-15-2045		22,165,000		22,359,165
Harris County TX Health Facilities Development Corporation Series A3 (Health Revenue, AGM Insured) ±(m)		0.84			7-1-2031		13,950,000		13,950,000
Harris County TX Health Facilities Development Corporation Series A4 (Health Revenue, AGM Insured) ±(m)		0.84			7-1-2031		12,000,000		12,000,000
Houston TX (GO Revenue)		5.00			3-1-2019		7,000,000		7,530,880
Houston TX Independent School District Limited Tax (GO Revenue)		4.25			2-15-2021		5,075,000		5,093,727
Houston TX Independent School District School House Series A2R (GO Revenue) ±		4.00			6-1-2039		43,100,000		43,616,769
Hutto TX Independent School District Series 2015 (GO Revenue) ±		3.00			2-1-2055		23,425,000		24,284,932
Laredo TX Public Property Finance Contractual Obligation Bond (GO Revenue)		3.88			2-15-2018		1,420,000		1,453,966
Mansfield TX Independent School District (GO Revenue) ±		1.75			8-1-2042		8,455,000		8,485,692
North East TX Independent School District (GO Revenue) ±		2.00			8-1-2044		8,855,000		8,930,356
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		28,915,000		29,185,066
North Texas Health Facilities Development Corporation United Regional Health Care System (Health Revenue, AGM Insured)		5.00			9-1-2017		850,000		871,148
North Texas Higher Education Authority Incorporated Student Loan Series 2 Class A (Education Revenue) ±		1.85			4-1-2037		7,000,000		6,813,100
North Texas Tollway Authority Refunding Bond Series A (Transportation Revenue) ±		1.53			1-1-2050		17,250,000		17,270,010
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2020		1,050,000		1,144,248
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2021		1,860,000		2,060,768
Northside TX Independent School District Building Project (GO Revenue) ±		1.65			8-1-2045		6,250,000		6,273,250
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			8-1-2044		21,195,000		21,375,369
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			6-1-2046		5,200,000		5,194,124
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		2,870,000		2,895,629
Odessa TX Housing Finance Corporation 87th Street Apartments Project (Housing Revenue) ±		1.43			12-1-2020		7,500,000		7,495,425
Pasadena TX Independent School District Building Project Series B (GO Revenue) ±		3.00			2-15-2044		45,060,000		46,238,770
Pflugerville TX Independent School District Prerefunded Bond School Building Series A (GO Revenue) ±		2.00			8-15-2039		4,830,000		4,896,316

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 29

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Pflugerville TX Independent School District Unrefunded Balance Bond School (GO Revenue) ±		2.00	%		8-15-2039	$	22,870,000	$	23,061,651
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.85			4-1-2040		9,775,000		9,775,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.85			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) ø		0.85			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		537,137
San Antonio TX Junior Lien Series A (Utilities Revenue) ±		2.00			12-1-2027		20,320,000		20,492,110
San Antonio TX Junior Lien Series B (Utilities Revenue) ±		1.10			2-1-2033		26,700,000		26,643,663
San Antonio TX Junior Lien Series B (Utilities Revenue) ±		1.75			12-1-2027		11,000,000		11,020,900
San Antonio TX Junior Lien Series C (Utilities Revenue) ±		3.00			12-1-2045		12,000,000		12,373,560
San Antonio TX Junior Lien Series D (Utilities Revenue) ±		3.00			12-1-2045		12,000,000		12,456,840
San Antonio TX Series A (Utilities Revenue) ±		2.25			2-1-2033		24,350,000		24,529,460
Tarrant County TX ECFA Hendrick Medical Center Group (Health Revenue)		5.00			9-1-2019		655,000		706,928
Tarrant County TX ECFA Hendrick Medical Center Group (Health Revenue)		5.00			9-1-2020		920,000		1,012,681
Tarrant County TX ECFA Hendrick Medical Center Group (Health Revenue)		5.00			11-15-2020		1,045,000		1,128,245
Tennessee Energy Acquisition Corporation Series C (Utilities Revenue)		5.00			2-1-2017		14,000,000		14,040,880
Texas Municipal Gas Acquisition & Supply Corporation II Series A (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.27			9-15-2017		1,415,000		1,416,854
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.19			9-15-2017		13,785,000		13,737,442
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2017		6,450,000		6,644,274
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2018		4,500,000		4,769,550
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2019		7,000,000		7,556,220
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series A (Utilities Revenue)		5.25			12-15-2017		1,745,000		1,801,922
Texas PFA Assessment Unemployment Compensation Series B (Miscellaneous Revenue)		4.00			1-1-2018		3,245,000		3,253,372
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2017		4,000,000		4,117,160
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2018		3,395,000		3,595,305
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2019		2,375,000		2,569,014
Tomball TX Independent School District Series B2 (GO Revenue) ±		3.00			2-15-2039		10,000,000		10,254,100
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		3.00			1-10-2017		405,000		405,207
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2018		640,000		656,275
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2019		1,010,000		1,055,157
Walnut Creek TX Special Utility District (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			1-10-2020		500,000		528,595
									728,274,473
Utah: 0.01%
Utah Charter School Finance Authority Summit Academy Series A (Education Revenue)		5.13			6-15-2017		325,000		327,142
Vermont: 0.26%
Vermont Student Assistance Corporation Series BCL-A1 (Education Revenue) ±		2.44			6-1-2022		13,707,621		13,861,283

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

30 Wells Fargo Short-Term Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Virgin Islands: 0.09%
Virgin Islands PFA Matching Funding Loan Series A (Miscellaneous Revenue)		6.75	%		10-1-2019	$	1,210,000	$	1,197,622
Virgin Islands PFA Series A (Tobacco Revenue)		5.00			10-1-2018		800,000		787,976
Virgin Islands PFA Senior Lien Matching Fund Loan Note Series B (Tobacco Revenue)		5.00			10-1-2018		2,985,000		2,940,135
									4,925,733
Virginia: 1.69%
Charles City VA EDA Solid Waste Disposal Waste Management Incorporated (Resource Recovery Revenue) ±		1.60			8-1-2027		3,150,000		3,154,253
Fairfax County VA Redevelopment & Housing Authority Residences At Government Center II Project (Housing Revenue, FHA Insured) ±		1.00			4-1-2018		13,000,000		13,000,000
Gloucester County VA EDA Solid Waste Disposal Waste Management Services Series A (Resource Recovery Revenue) ±		1.60			9-1-2038		1,500,000		1,500,465
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2019		1,250,000		1,350,800
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2020		1,000,000		1,103,820
Halifax County VA IDA (Utilities Revenue) ±		2.15			12-1-2041		57,500,000		57,478,150
Lexington VA IDA Kendal at Lexington (Health Revenue)		3.00			1-1-2019		320,000		326,253
Lexington VA IDA Kendal at Lexington (Health Revenue)		3.00			1-1-2020		450,000		458,564
Lexington VA IDA Kendal at Lexington (Health Revenue)		4.00			1-1-2021		440,000		463,786
Lexington VA IDA Kendal at Lexington (Health Revenue)		4.00			1-1-2022		525,000		554,720
Marquis VA CDA CAB Series A (Tax Revenue) (i)		5.10			9-1-2036		2,169,000		1,676,529
Marquis VA CDA CAB Series C (Tax Revenue) ¤(i)		0.00			9-1-2041		3,493,000		441,760
Marquis VA CDA CCAB (Tax Revenue) 144A±		0.00			9-1-2045		680,000		437,335
Petersburg VA RAN (GO Revenue) 144A		4.00			10-1-2017		5,000,000		4,999,800
Washington VA County IDA Series C (Health Revenue)		7.25			7-1-2019		1,995,000		2,140,356
									89,086,591
Washington: 0.20%
Washington HCFR Catholic Health Initiatives Series B (Health Revenue) ±		1.73			1-1-2035		8,550,000		8,514,347
Washington Health Care Facilities Authority Series 2015 (Health Revenue)		5.00			7-1-2020		850,000		925,319
Washington Housing Financing Commission Nonprofit Wesley Homes Series A (Health Revenue, AGC Insured)		5.38			1-1-2017		1,110,000		1,110,144
									10,549,810
West Virginia: 0.05%
West Virginia EDA PCR Appalachian Power Company Series D (Resource Recovery Revenue)		3.25			5-1-2019		2,745,000		2,805,527
Wisconsin: 1.17%
Johnson Creek WI School District BAN (Miscellaneous Revenue) ##		3.00			3-1-2020		2,550,000		2,557,140
Milwaukee WI RDA Public Schools Refunding Bond Series A (Miscellaneous Revenue)		5.00			8-1-2018		4,320,000		4,550,558
Milwaukee WI RDA Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.80			12-1-2038		1,510,000		1,510,000
PFA WI Guilford College (Education Revenue)		5.00			1-1-2021		650,000		700,473
PFA WI Guilford College (Education Revenue)		5.00			1-1-2022		625,000		678,431
Racine WI Elderly Housing Authority Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.80			10-1-2042		3,555,000		3,555,000
Waukesha County WI Series B (Miscellaneous Revenue)		3.00			5-1-2021		17,400,000		17,685,012
Wisconsin Airport Facilities PFA Senior Obligation Group Series B (Airport Revenue)		5.00			7-1-2022		12,620,000		13,472,102
Wisconsin HEFA Ascension Health Alliance Series B (Health Revenue) ±		4.00			11-15-2043		13,000,000		13,743,340
Wisconsin HEFA Mercy Alliance Incorporated Project Series A (Health Revenue)		5.00			6-1-2019		2,100,000		2,160,802
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2017		200,000		200,908

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 31

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00	%		3-1-2018	$	300,000	$	308,001
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		4.00			3-1-2019		445,000		463,899
Wisconsin HEFA Vernon Memorial Healthcare Incorporated (Health Revenue)		5.00			3-1-2020		375,000		406,328
									61,991,994
Total Municipal Obligations (Cost $5,217,838,780)									5,160,450,870
Other: 1.89%
Eaton Vance Municipal Income Trust ±144A§		2.22			9-1-2019		23,000,000		22,984,360
Nuveen California AMT-Free Municipal Income Fund Institutional MuniFund Term Preferred Shares ±144A§		1.02			7-1-2018		3,000,000		2,990,730
Nuveen Enhanced Municipal Credit Opportunities Fund Institutional MuniFund Term Preferred Shares ±144A		1.47			10-1-2017		62,000,000		61,775,560
Nuveen Texas Quality Income Municipal Fund Institutional MuniFund Term Preferred Shares ±144A		1.56			11-1-2018		12,000,000		11,999,040
Total Other (Cost $100,000,000)									99,749,690
	Yield					Shares
Short-Term Investments: 0.04%
Investment Companies: 0.04%
Wells Fargo Municipal Cash Management Fund Institutional Class ##(l)(u)		0.67					2,406,597		2,408,040
Total Short-Term Investments (Cost $2,407,449)									2,408,040

Total investments in securities (Cost $5,320,246,229) *	99.69	%		5,262,608,600
Other assets and liabilities, net	0.31			16,193,185
Total net assets	100.00	%	$	5,278,801,785

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

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

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

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

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

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

(i) Illiquid security

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

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

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

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

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

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

* Cost for federal income tax purposes is $5,320,283,357 and unrealized gains (losses) consists of:

Gross unrealized gains	$	15,057,079
Gross unrealized losses		(72,731,836	)
Net unrealized losses	$	(57,674,757	)

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

32 Wells Fargo Short-Term Municipal Bond Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $5,317,838,780)	$	5,260,200,560
In affiliated securities, at value (cost $2,407,449)		2,408,040
Total investments, at value (cost $5,320,246,229)		5,262,608,600
Cash		755
Receivable for investments sold		13,720,996
Receivable for Fund shares sold		23,447,025
Receivable for interest		40,094,177
Prepaid expenses and other assets		486,638
Total assets		5,340,358,191
Liabilities
Dividends payable		1,664,166
Payable for investments purchased		3,274,894
Payable for Fund shares redeemed		53,915,691
Management fee payable		1,284,615
Distribution fee payable		49,191
Administration fees payable		557,113
Accrued expenses and other liabilities		810,736
Total liabilities		61,556,406
Total net assets	$	5,278,801,785
NET ASSETS CONSIST OF
Paid-in capital	$	5,338,578,557
Undistributed net investment income		155,722
Accumulated net realized losses on investments		(2,294,865	)
Net unrealized losses on investments		(57,637,629	)
Total net assets	$	5,278,801,785
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	2,046,828,582
Shares outstanding – Class A1		208,852,264
Net asset value per share – Class A		$9.80
Maximum offering price per share – Class A2		$10.00
Net assets – Class C	$	71,465,333
Shares outstanding – Class C1		7,291,618
Net asset value per share – Class C		$9.80
Net assets – Administrator Class	$	80,687,242
Shares outstanding – Administrator Class1		8,227,710
Net asset value per share – Administrator Class		$9.81
Net assets – Institutional Class	$	3,079,820,628
Shares outstanding – Institutional Class1		313,663,598
Net asset value per share – Institutional Class		$9.82

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended December 31, 2016 (unaudited) Wells Fargo Short-Term Municipal Bond Fund 33

Investment income
Interest	$	51,862,437
Income from affiliated securities		75,126
Total investment income		51,937,563
Expenses
Management fee		9,485,847
Administration fees
Class A		2,080,772
Class C		63,619
Administrator Class		45,950
Institutional Class		1,226,677
Shareholder servicing fees
Class A		3,251,206
Class C		99,405
Administrator Class		114,610
Distribution fee
Class C		298,214
Custody and accounting fees		146,595
Professional fees		32,009
Registration fees		94,756
Shareholder report expenses		140,690
Trustees’ fees and expenses		12,207
Other fees and expenses		34,570
Total expenses		17,127,127
Less: Fee waivers and/or expense reimbursements		(1,976,287	)
Net expenses		15,150,840
Net investment income		36,786,723
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(1,426,271	)
Affiliated securities		20,036
Futures transactions		(1,003,673	)
Net realized losses on investments		(2,409,908	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(94,332,925	)
Affiiliated securities		591
Futures transactions		2,244,088
Net change in unrealized gains (losses) on investments		(92,088,246	)
Net realized and unrealized gains (losses) on investments		(94,498,154	)
Net decrease in net assets resulting from operations	$	(57,711,431	)

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

34 Wells Fargo Short-Term Municipal Bond Fund Statement of changes in net assets

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	36,786,723					$	69,753,998
Net realized gains (losses) on investments					(2,409,908	)					313,342
Net change in unrealized gains (losses) on investments					(92,088,246	)					25,680,125
Net increase (decrease) in net assets resulting from operations					(57,711,431	)					95,747,465
Distributions to shareholders from
Net investment income
Class A					(14,884,828	)					(34,052,798	)
Class C					(159,240	)					(323,418	)
Administrator Class					(541,141	)					(1,830,622	)
Institutional Class					(21,209,742	)					(28,544,540	)
Investor Class					N/A						(4,994,406	)1
Net realized gains
Class A					0						(2,591,530	)
Class C					0						(67,566	)
Administrator Class					0						(68,933	)
Institutional Class					0						(1,635,693	)
Total distributions to shareholders					(36,794,951	)					(74,109,506	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		33,209,134			329,969,662			222,039,298			2,209,060,220
Class C		275,669			2,726,934			619,066			6,157,726
Administrator Class		1,929,857			19,138,128			6,630,944			66,017,256
Institutional Class		153,580,580			1,529,735,676			144,491,550			1,439,440,660
Investor Class		N/A			N/A			7,146,734	1		71,071,037	1
					1,881,570,400						3,791,746,899
Reinvestment of distributions
Class A		1,443,396			14,301,919			3,592,827			35,741,018
Class C		13,991			138,543			34,436			342,547
Administrator Class		53,518			530,496			189,138			1,882,997
Institutional Class		1,430,872			14,190,944			1,702,491			16,967,909
Investor Class		N/A			N/A			384,006	1		3,819,645	1
					29,161,902						58,754,116
Payment for shares redeemed
Class A		(163,248,064	)		(1,620,956,428	)		(112,700,409	)		(1,121,238,204	)
Class C		(1,238,638	)		(12,253,294	)		(2,801,679	)		(27,864,138	)
Administrator Class		(3,296,100	)		(32,669,225	)		(48,717,360	)		(485,134,480	)
Institutional Class		(67,869,896	)		(672,016,297	)		(110,273,026	)		(1,098,863,134	)
Investor Class		N/A			N/A			(169,667,638	)1		(1,689,668,427	)1
					(2,337,895,244	)					(4,422,768,383	)
Net decrease in net assets resulting from capital share transactions					(427,162,942	)					(572,267,368	)
Total decrease in net assets					(521,669,324	)					(550,629,409	)
Net assets
Beginning of period					5,800,471,109						6,351,100,518
End of period				$	5,278,801,785					$	5,800,471,109
Undistributed net investment income				$	155,722					$	163,950

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

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

Financial highlights Wells Fargo Short-Term Municipal Bond Fund 35

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.96			$9.93			$10.00			$9.97			$10.01			$9.94
Net investment income		0.06			0.11			0.09			0.11			0.11			0.19
Net realized and unrealized gains (losses) on investments		(0.16	)		0.04			(0.06	)		0.05			0.00	1		0.08
Total from investment operations		(0.10	)		0.15			0.03			0.16			0.11			0.27
Distributions to shareholders from
Net investment income		(0.06	)		(0.11	)		(0.09	)		(0.11	)		(0.11	)		(0.19	)
Net realized gains		0.00			(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.06	)		(0.12	)		(0.10	)		(0.13	)		(0.15	)		(0.20	)
Net asset value, end of period		$9.80			$9.96			$9.93			$10.00			$9.97			$10.01
Total return2		(1.03	)%		1.49	%		0.27	%		1.55	%		1.07	%		2.77	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.75	%		0.75	%		0.76	%		0.77	%		0.78	%
Net expenses		0.63	%		0.62	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.14	%		1.11	%		0.89	%		1.08	%		1.10	%		1.91	%
Supplemental data
Portfolio turnover rate		11	%3		16	%3		24	%3		28	%3		39	%3		72	%
Net assets, end of period (000s omitted)		$2,046,829			$3,362,147			$2,228,977			$2,031,798			$1,620,994			$1,467,816

¹  Amount is less than $0.005 per share.

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

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

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

36 Wells Fargo Short-Term Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.96			$9.93			$10.00			$9.97			$10.01			$9.94
Net investment income		0.02			0.04			0.01			0.03			0.04			0.12
Net realized and unrealized gains (losses) on investments		(0.16	)		0.04			(0.06	)		0.05			0.00	1		0.08
Total from investment operations		(0.14	)		0.08			(0.05	)		0.08			0.04			0.20
Distributions to shareholders from
Net investment income		(0.02	)		(0.04	)		(0.01	)		(0.03	)		(0.04	)		(0.12	)
Net realized gains		0.00			(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.02	)		(0.05	)		(0.02	)		(0.05	)		(0.08	)		(0.13	)
Net asset value, end of period		$9.80			$9.96			$9.93			$10.00			$9.97			$10.01
Total return2		(1.41	)%		0.73	%		(0.48	)%		0.79	%		0.32	%		2.01	%
Ratios to average net assets (annualized)
Gross expenses		1.50	%		1.50	%		1.50	%		1.51	%		1.52	%		1.53	%
Net expenses		1.38	%		1.37	%		1.35	%		1.35	%		1.35	%		1.35	%
Net investment income		0.40	%		0.35	%		0.14	%		0.34	%		0.37	%		1.18	%
Supplemental data
Portfolio turnover rate		11	%3		16	%3		24	%3		28	%3		39	%3		72	%
Net assets, end of period (000s omitted)		$71,465			$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. Returns for periods of less than one year are not annualized.

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

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

Financial highlights Wells Fargo Short-Term Municipal Bond Fund 37

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.97			$9.95			$10.03			$9.99			$10.03			$9.96
Net investment income		0.06			0.11	1		0.09			0.11			0.11			0.19
Net realized and unrealized gains (losses) on investments		(0.16	)		0.03			(0.07	)		0.06			0.00	2		0.08
Total from investment operations		(0.10	)		0.14			0.02			0.17			0.11			0.27
Distributions to shareholders from
Net investment income		(0.06	)		(0.11	)		(0.09	)		(0.11	)		(0.11	)		(0.19	)
Net realized gains		0.00			(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.06	)		(0.12	)		(0.10	)		(0.13	)		(0.15	)		(0.20	)
Net asset value, end of period		$9.81			$9.97			$9.95			$10.03			$9.99			$10.03
Total return3		(1.02	)%		1.42	%		0.17	%		1.65	%		1.07	%		2.77	%
Ratios to average net assets (annualized)
Gross expenses		0.69	%		0.66	%		0.68	%		0.70	%		0.71	%		0.72	%
Net expenses		0.60	%		0.59	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.18	%		1.08	%		0.89	%		1.08	%		1.07	%		1.82	%
Supplemental data
Portfolio turnover rate		11	%4		16	%4		24	%4		28	%4		39	%4		72	%
Net assets, end of period (000s omitted)		$80,687			$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  Returns for periods of less than one year are not annualized.

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

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

38 Wells Fargo Short-Term Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.98			$9.95			$10.02			$9.99			$10.02			$9.96
Net investment income		0.07			0.13			0.11			0.13			0.13			0.21
Net realized and unrealized gains (losses) on investments		(0.16	)		0.04			(0.06	)		0.05			0.01			0.07
Total from investment operations		(0.09	)		0.17			0.05			0.18			0.14			0.28
Distributions to shareholders from
Net investment income		(0.07	)		(0.13	)		(0.11	)		(0.13	)		(0.13	)		(0.21	)
Net realized gains		0.00			(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.01	)
Total distributions to shareholders		(0.07	)		(0.14	)		(0.12	)		(0.15	)		(0.17	)		(0.22	)
Net asset value, end of period		$9.82			$9.98			$9.95			$10.02			$9.99			$10.02
Total return1		(0.92	)%		1.71	%		0.47	%		1.75	%		1.37	%		2.88	%
Ratios to average net assets (annualized)
Gross expenses		0.42	%		0.42	%		0.42	%		0.43	%		0.45	%		0.45	%
Net expenses		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Net investment income		1.38	%		1.33	%		1.09	%		1.29	%		1.30	%		2.10	%
Supplemental data
Portfolio turnover rate		11	%2		16	%2		24	%2		28	%2		39	%2		72	%
Net assets, end of period (000s omitted)		$3,079,821			$2,261,092			$1,895,713			$1,382,576			$1,185,687			$935,583

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

²  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Notes to financial statements (unaudited) Wells Fargo Short-Term Municipal Bond Fund 39

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 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.

40 Wells Fargo Short-Term Municipal Bond Fund Notes to financial statements (unaudited)

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.

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 was recognized on the first day of the current fiscal year.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

Notes to financial statements (unaudited) Wells Fargo Short-Term Municipal Bond Fund 41

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	5,160,450,870	$	0	$	5,160,450,870
Other		0		99,749,690		0		99,749,690
Short-term investments
Investment companies		2,408,040		0		0		2,408,040
Total assets	$	2,408,040	$	5,260,200,560	$	0	$	5,262,608,600

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 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 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 subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the six months ended December 31, 2016, the management fee was equivalent to an annual rate of 0.32% of the Fund’s average daily net assets.

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

Administration fees

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

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

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, 2017 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%

42 Wells Fargo Short-Term Municipal Bond Fund Notes to financial statements (unaudited)

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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $6,280 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,206 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $3,521 from the sale of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $637,875,326 and $585,699,260, 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.

6. DERIVATIVE TRANSACTIONS

During the six months ended December 31, 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 December 31, 2016, the Fund did not have any open futures contracts. The Fund had an average notional amount of $58,820,022 in short futures contracts during the six months ended December 31, 2016.

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

8. INDEMNIFICATION

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

Notes to financial statements (unaudited) Wells Fargo Short-Term Municipal Bond Fund 43

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

44 Wells Fargo Short-Term Municipal Bond Fund Other information (unaudited)

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Short-Term Municipal Bond Fund 45

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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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

46 Wells Fargo Short-Term 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo Short-Term Municipal Bond Fund 47

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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300485 02-17 SA256/SAR256 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo Small Cap Core Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	19
Other information	23
List of abbreviations	26

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE ��◾   MAY LOSE VALUE

2 Wells Fargo Small Cap Core Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. small-cap stocks returned 18.68% for the six-month period.

In December, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Small Cap Core Fund for the six-month period that ended December 31, 2016. The U.S. economy ticked up as the period progressed. As expected, the Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. U.S. small-cap stocks returned 18.68% for the six-month period, as measured by the Russell 2000^® Index.¹

U.S. stocks rose sharply after the U.S. presidential election.

In July, the stock market rallied from a low following the Brexit vote in June; a mostly steady trajectory continued in the U.S. stock market after that inflection point. However, stocks rose significantly immediately after the U.S. presidential election. The promise of pro-growth policies by the incoming administration—lower tax rates, less regulation, investments in infrastructure, better trade deals—set the momentum for this surge.

The types of companies leading the rally leaned toward ones that typically do well in a rising-rate environment, such as banks, and businesses likely to benefit from infrastructure spending and reduced regulations. Sectors that could be negatively affected by rising interest rates, such as utilities, delivered weaker results. Consumer confidence hit pre-recession levels for the first time in November and increased again in December. The dollar appreciated throughout the period; its strongest performance occurred in the post-election period.

Stronger economic indicators drove U.S. monetary policy.

In December, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%, down 0.3% from October. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress during the quarter and expects this positive trajectory to continue. Both of these sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual rate of 3.5% in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer spending slowed somewhat from the prior quarter, but late-December estimates from retail-research firms suggest that sales growth during the 2016 holiday season may outpace that of recent years.

Central banks continued with stimulus programs during 2016.

After voters in the U.K. approved a referendum in June to leave the European Union, the Bank of England lowered its interest rate in August to 0.25% and continued its quantitative easing program. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggled to accelerate economic growth. In December, the European Central

¹  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.

Letter to shareholders (unaudited) Wells Fargo Small Cap Core Fund 3

Bank stated that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

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,

Andrew Owen

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 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 December 31, 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		8.59		13.61		4.97		15.21		14.97		5.59		1.33		1.33
Class C (WCSCX)	5-20-2016		13.35		14.11		4.80		14.35		14.11		4.80		2.08		2.08
Class R6 (WRSCX)	5-20-2016		15.67		15.38		5.97		15.67		15.38		5.97		0.90		0.90
Administrator Class (WNSCX)	5-20-2016		–		–		–		15.31		15.08		5.70		1.25		1.25
Institutional Class (WYSCX)	9-13-2005		–		–		–		15.62		15.37		5.96		1.00		1.00
Russell 2000® Index4	–		–		–		–		21.31		14.46		7.07		–		–

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. 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

Ten largest holdings (%) as of December 31, 20165
Sanmina Corporation	2.30
Geo Group Incorporated	2.24
Biotelemetry Incorporated	2.21
Argan Incorporated	2.15
FCB Financial Holdings Class A	2.15
SkyWest Incorporated	2.14
Nutri System Incorporated	2.08
Employers Holdings Incorporated	2.04
Trinseo SA	2.00
Supernus Pharmaceuticals Incorporated	1.99

Portfolio allocation as of December 31, 2016⁶

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 1.35% for Class A, 2.10% for Class C, 0.90% for Class R6, 1.25% for Administrator Class, and 1.00% 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 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 ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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

6 Wells Fargo 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 July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,114.79	$	7.18		1.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.35	$	6.85		1.35	%
Class C
Actual	$	1,000.00	$	1,112.60	$	11.15		2.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.58	$	10.63		2.10	%
Class R6
Actual	$	1,000.00	$	1,115.94	$	4.79		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.61	$	4.57		0.90	%
Administrator Class
Actual	$	1,000.00	$	1,115.29	$	6.65		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.85	$	6.34		1.25	%
Institutional Class
Actual	$	1,000.00	$	1,116.01	$	5.32		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.11	$	5.08		1.00	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Small Cap Core Fund 7

Security name	Shares		Value
Common Stocks: 99.45%
Consumer Discretionary: 10.13%
Auto Components: 2.88%
LCI Industries		13,640	$	1,469,710
Tower International Incorporated		41,628		1,180,154
				2,649,864
Hotels, Restaurants & Leisure: 3.26%
Denny’s Corporation †		111,505		1,430,609
Ruth’s Chris Steak House Incorporated		85,937		1,572,647
				3,003,256
Internet & Direct Marketing Retail: 2.08%
Nutri System Incorporated		55,405		1,919,783
Leisure Products: 1.03%
American Outdoor Brands Corporation †		45,147		951,699
Textiles, Apparel & Luxury Goods: 0.88%
Skechers U.S.A. Incorporated Class A †		32,879		808,166
Consumer Staples: 3.62%
Food Products: 3.62%
Dean Foods Company		76,103		1,657,523
Sanderson Farms Incorporated		17,817		1,679,074
				3,336,597
Energy: 1.56%
Energy Equipment & Services: 1.56%
Matrix Service Company †		63,204		1,434,731
Financials: 16.86%
Banks: 2.15%
FCB Financial Holdings Class A †		41,526		1,980,790
Capital Markets: 1.87%
Evercore Partners Incorporated Class A		25,047		1,720,729
Insurance: 12.84%
AmTrust Financial Services Incorporated		47,486		1,300,167
Employers Holdings Incorporated		47,545		1,882,782
Federated National Holding Company		63,343		1,183,881
Heritage Insurance Holdings		92,364		1,447,344
Maiden Holdings Limited		84,608		1,476,410
National General Holdings Corporation		69,072		1,726,109
United Insurance Holdings Company		72,477		1,097,302
Universal Insurance Holdings Company		60,459		1,717,036
				11,831,031

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

8 Wells Fargo Small Cap Core Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Shares		Value
Health Care: 16.75%
Biotechnology: 1.59%
Xencor Incorporated †		55,744	$	1,467,182
Health Care Equipment & Supplies: 3.77%
ICU Medical Incorporated †		12,106		1,783,819
NuVasive Incorporated †		25,089		1,689,995
				3,473,814
Health Care Providers & Services: 7.43%
Biotelemetry Incorporated †		91,034		2,034,610
Envision Healthcare Corporation †		20,506		1,297,825
HealthSouth Corporation		31,685		1,306,689
PharMerica Corporation †		44,815		1,127,097
Select Medical Holdings Corporation †		81,502		1,079,902
				6,846,123
Life Sciences Tools & Services: 1.97%
INC Research Holdings Incorporated Class A †		34,381		1,808,441
Pharmaceuticals: 1.99%
Supernus Pharmaceuticals Incorporated †		72,572		1,832,443
Industrials: 18.62%
Airlines: 2.14%
SkyWest Incorporated		54,031		1,969,430
Commercial Services & Supplies: 5.24%
ACCO Brands Corporation †		115,421		1,506,244
Deluxe Corporation		23,845		1,707,540
UniFirst Corporation		11,215		1,611,035
				4,824,819
Construction & Engineering: 5.53%
Argan Incorporated		28,129		1,984,501
Comfort Systems USA Incorporated		41,658		1,387,211
EMCOR Group Incorporated		24,419		1,727,888
				5,099,600
Machinery: 3.55%
The Greenbrier Companies Incorporated		39,200		1,628,760
Wabash National Corporation		103,701		1,640,550
				3,269,310
Professional Services: 2.16%
Insperity Incorporated		17,136		1,215,799
RPX Corporation †		71,407		771,196
				1,986,995

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Small Cap Core Fund 9

Security name	Shares		Value
Information Technology: 19.32%
Electronic Equipment, Instruments & Components: 3.76%
Methode Electronics Incorporated		32,407	$	1,340,029
Sanmina Corporation †		57,856		2,120,422
				3,460,451
Internet Software & Services: 3.24%
J2 Global Incorporated		20,014		1,637,145
Web.com Group Incorporated †		63,746		1,348,228
				2,985,373
IT Services: 1.84%
Hackett Group Incorporated		95,967		1,694,777
Semiconductors & Semiconductor Equipment: 8.71%
Advanced Energy Industries Incorporated †		28,851		1,579,592
Cirrus Logic Incorporated †		31,205		1,764,331
Inphi Corporation †		38,797		1,731,122
MaxLinear Incorporated Class A †		62,645		1,365,661
Tessera Holding Corporation		35,933		1,588,239
				8,028,945
Software: 1.77%
Gigamon Incorporated †		35,761		1,628,914
Materials: 4.88%
Chemicals: 2.00%
Trinseo SA		31,037		1,840,494
Containers & Packaging: 1.33%
Graphic Packaging Holding Company		98,338		1,227,258
Metals & Mining: 1.55%
Suncoke Energy Incorporated †		125,833		1,426,946
Real Estate: 6.48%
Equity REITs: 6.48%
Ashford Hospitality Trust Incorporated		185,631		1,440,497
Geo Group Incorporated		57,409		2,062,705
InfraReit Incorporated		61,011		1,092,707
QTS Realty Trust Incorporated Class A		27,659		1,373,269
				5,969,178
Utilities: 1.23%
Electric Utilities: 1.23%
Spark Energy Incorporated Class A		37,593		1,139,068
Total Common Stocks (Cost $69,699,834)				91,616,207

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

10 Wells Fargo Small Cap Core Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Yield			Shares		Value
Short-Term Investments: 0.59%
Investment Companies: 0.59%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.43	%		541,406	$	541,406
Total Short-Term Investments (Cost $541,406)							541,406

Total investments in securities (Cost $70,241,240) *	100.04	%		92,157,613
Other assets and liabilities, net	(0.04	)		(39,200	)
Total net assets	100.00	%	$	92,118,413

† 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 $70,155,831 and unrealized gains (losses) consists of:

Gross unrealized gains	$	23,480,452
Gross unrealized losses		(1,478,670	)
Net unrealized gains	$	22,001,782

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo Small Cap Core Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $69,699,834)	$	91,616,207
In affiliated securities, at value (cost $541,406)		541,406
Total investments, at value (cost $70,241,240)		92,157,613
Receivable for Fund shares sold		55,389
Receivable for dividends		108,089
Prepaid expenses and other assets		8,764
Total assets		92,329,855
Liabilities
Payable for Fund shares redeemed		135,925
Management fee payable		57,867
Distribution fee payable		89
Administration fees payable		10,927
Accrued expenses and other liabilities		6,634
Total liabilities		211,442
Total net assets	$	92,118,413
NET ASSETS CONSIST OF
Paid-in capital	$	128,150,402
Undistributed net investment income		108,605
Accumulated net realized losses on investments		(58,056,967	)
Net unrealized gains on investments		21,916,373
Total net assets	$	92,118,413
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	331,937
Shares outstanding – Class A1		16,211
Net asset value per share – Class A		$20.48
Maximum offering price per share – Class A2		$21.73
Net assets – Class C	$	132,710
Shares outstanding – Class C1		6,505
Net asset value per share – Class C		$20.40
Net assets – Class R6	$	123,820
Shares outstanding – Class R61		6,031
Net asset value per share – Class R6		$20.53
Net assets – Administrator Class	$	125,860
Shares outstanding – Administrator Class1		6,142
Net asset value per share – Administrator Class		$20.49
Net assets – Institutional Class	$	91,404,086
Shares outstanding – Institutional Class1		4,454,214
Net asset value per share – Institutional Class		$20.52

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.

12 Wells Fargo Small Cap Core Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Dividends	$	611,521
Income from affiliated securities		1,234
Total investment income		612,755
Expenses
Management fee		427,624
Administration fees
Class A		180
Class C		120
Class R6		17
Administrator Class		74
Institutional Class		65,068
Shareholder servicing fees
Class A		214
Class C		143
Administrator Class		142
Distribution fee
Class C		428
Custody and accounting fees		9,040
Professional fees		21,902
Registration fees		25,476
Shareholder report expenses		17,326
Trustees’ fees and expenses		7,154
Other fees and expenses		4,583
Total expenses		579,491
Less: Fee waivers and/or expense reimbursements		(75,391	)
Net expenses		504,100
Net investment income		108,655
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		2,077,713
Net change in unrealized gains (losses) on investments		16,750,435
Net realized and unrealized gains (losses) on investments		18,828,148
Net increase in net assets resulting from operations	$	18,936,803

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

Statement of changes in net assets Wells Fargo Small Cap Core Fund 13

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 20161
Operations
Net investment income				$	108,655					$	285,872
Net realized gains (losses) on investments					2,077,713						(10,551,715	)
Net change in unrealized gains (losses) on investments					16,750,435						(2,795,570	)
Net increase (decrease) in net assets resulting from operations					18,936,803						(13,061,413	)
Distributions to shareholders from
Net investment income
Class A					(604	)					0	2
Class C					(175	)					0	2
Class R6					(284	)					0	2
Administrator Class					(256	)					0	2
Institutional Class					(215,546	)					(153,914	)
Total distributions to shareholders					(216,865	)					(153,914	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		9,198			181,658			7,790	2		130,000	2
Class C		479			9,440			6,017	2		100,000	2
Class R6		0			0			6,017	2		100,000	2
Administrator Class		112			2,000			6,017	2		100,000	2
Institutional Class		177,642			3,340,423			5,103,153			91,283,720
					3,533,521						91,713,720
Reinvestment of distributions
Class A		30			604			0	2		0	2
Class C		9			175			0	2		0	2
Class R6		14			284			0	2		0	2
Administrator Class		13			256			0	2		0	2
Institutional Class		2,392			48,291			1,813			32,246
					49,610						32,246
Payment for shares redeemed
Class A		(807	)		(14,987	)		0	2		0	2
Institutional Class		(2,348,767	)		(42,507,632	)		(2,992,788	)		(50,609,931	)
					(42,522,619	)					(50,609,931	)
Net increase (decrease) in net assets resulting from capital share transactions					(38,939,488	)					41,136,035
Total Increase (decrease) in net assets					(20,219,550	)					27,920,708
Net assets
Beginning of period					112,337,963						84,417,255
End of period				$	92,118,413					$	112,337,963
Undistributed net investment income				$	108,605					$	216,815

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 21, 2016 is that of Golden Small Cap Core Fund.

²  For the period from May 20, 2016 (commencement of class operations) to June 30, 2016

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

14 Wells Fargo Small Cap Core Fund Financial highlights

(For a share outstanding throughout each period)

CLASS A	Six months ended December 31, 2016 (unaudited)			Year ended June 30, 20161
Net asset value, beginning of period		$16.89			$16.62
Net investment income (loss)		(0.00	)2,3		0.01	2
Net realized and unrealized gains (losses) on investments		3.63			0.26
Total from investment operations		3.63			0.27
Distributions to shareholders from
Net investment income		(0.04	)		0.00
Net asset value, end of period		$20.48			$16.89
Total return4		21.51	%		1.62	%
Ratios to average net assets (annualized)
Gross expenses		1.49	%		1.46	%
Net expenses		1.35	%		1.35	%
Net investment income (loss)		(0.02	)%		0.65	%
Supplemental data
Portfolio turnover rate		14	%		61	%
Net assets, end of period (000s omitted)		$332			$132

¹  For the period from 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.

Financial highlights Wells Fargo Small Cap Core Fund 15

(For a share outstanding throughout each period)

CLASS C	Six months ended December 31, 2016 (unaudited)			Year ended June 30, 20161
Net asset value, beginning of period		$16.87			$16.62
Net investment loss		(0.07	)		(0.00	)2,3
Net realized and unrealized gains (losses) on investments		3.63			0.25
Total from investment operations		3.56			0.25
Distributions to shareholders from
Net investment income		(0.03	)		0.00
Net asset value, end of period		$20.40			$16.87
Total return4		21.09	%		1.50	%
Ratios to average net assets (annualized)
Gross expenses		2.24	%		2.21	%
Net expenses		2.10	%		2.10	%
Net investment loss		(0.83	)%		(0.27	)%
Supplemental data
Portfolio turnover rate		14	%		61	%
Net assets, end of period (000s omitted)		$133			$102

¹  For the period from 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.

16 Wells Fargo Small Cap Core Fund Financial highlights

(For a share outstanding throughout each period)

CLASS R6	Six months ended December 31, 2016 (unaudited)			Year ended June 30, 20161
Net asset value, beginning of period		$16.90			$16.62
Net investment income		0.04			0.02	2
Net realized and unrealized gains (losses) on investments		3.64			0.26
Total from investment operations		3.68			0.28
Distributions to shareholders from
Net investment income		(0.05	)		0.00
Net asset value, end of period		$20.53			$16.90
Total return3		21.76	%		1.68	%
Ratios to average net assets (annualized)
Gross expenses		1.05	%		1.03	%
Net expenses		0.90	%		0.90	%
Net investment income		0.37	%		0.93	%
Supplemental data
Portfolio turnover rate		14	%		61	%
Net assets, end of period (000s omitted)		$124			$102

¹  For the period from 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 17

(For a share outstanding throughout each period)

ADMINISTRATOR CLASS	Six months ended December 31, 2016 (unaudited)			Year ended June 30, 20161
Net asset value, beginning of period		$16.89			$16.62
Net investment income		0.00	2		0.01	3
Net realized and unrealized gains (losses) on investments		3.64			0.26
Total from investment operations		3.64			0.27
Distributions to shareholders from
Net investment income		(0.04	)		0.00
Net asset value, end of period		$20.49			$16.89
Total return4		21.57	%		1.62	%
Ratios to average net assets (annualized)
Gross expenses		1.41	%		1.37	%
Net expenses		1.25	%		1.25	%
Net investment income		0.02	%		0.58	%
Supplemental data
Portfolio turnover rate		14	%		61	%
Net assets, end of period (000s omitted)		$126			$102

¹  For the period from May 20, 2016 (commencement of class operations) to June 30, 2016

²  Amount is less than $0.005.

³  Calculated based upon average shares outstanding

⁴  Returns for periods of less than one year are not annualized.

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

18 Wells Fargo Small Cap Core Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				20161			20151			20141			20131			20121
Net asset value, beginning of period		$16.90			$18.71			$16.76			$13.57			$10.64			$11.10
Net investment income (loss)		0.04			0.04	2		0.06	2		0.05	2		0.16	2		(0.01	)2
Net realized and unrealized gains (losses) on investments		3.63			(1.83	)		1.92			3.36			2.77			(0.45	)
Total from investment operations		3.67			(1.79	)		1.98			3.41			2.93			(0.46	)
Distributions to shareholders from
Net investment income		(0.05	)		(0.02	)		(0.03	)		(0.22	)		0.00			0.00
Net asset value, end of period		$20.52			$16.90			$18.71			$16.76			$13.57			$10.64
Total return3		21.70	%		(9.57	)%		11.80	%		25.21	%		27.54	%		(4.14	)%
Ratios to average net assets (annualized)
Gross expenses		1.15	%		1.11	%		1.10	%		1.10	%		1.10	%		1.11	%
Net expenses		1.00	%		1.09	%		1.10	%		1.10	%		1.10	%		1.10	%
Net investment income (loss)		0.22	%		0.25	%		0.37	%		0.30	%		1.32	%		(0.12	)%
Supplemental data
Portfolio turnover rate		14	%		61	%		57	%		68	%		52	%		56	%
Net assets, end of period (000s omitted)		$91,404			$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 periods prior to May 21, 2016 is that of Golden Small Cap Core Fund.

²  Calculated based upon average shares outstanding

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

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

Notes to financial statements (unaudited) Wells Fargo Small Cap Core 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 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 shares 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.

20 Wells Fargo Small Cap Core Fund Notes to financial statements (unaudited)

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable 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	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:

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

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

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

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

Notes to financial statements (unaudited) Wells Fargo Small Cap Core Fund 21

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	9,332,768	$	0	$	0	$	9,332,768
Consumer staples		3,336,597		0		0		3,336,597
Energy		1,434,731		0		0		1,434,731
Financials		15,532,550		0		0		15,532,550
Health care		15,428,003		0		0		15,428,003
Industrials		17,150,154		0		0		17,150,154
Information technology		17,798,460		0		0		17,798,460
Materials		4,494,698		0		0		4,494,698
Real estate		5,969,178		0		0		5,969,178
Utilities		1,139,068		0		0		1,139,068
Short-term investments						0
Investment companies		541,406		0		0		541,406
Total assets	$	92,157,613	$	0	$	0	$	92,157,613

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 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. For the six months ended December 31, 2016, the management fee was equivalent to an annual rate of 0.85% 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, an affiliate of Funds Management, 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.

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

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

22 Wells Fargo Small Cap Core Fund Notes to financial statements (unaudited)

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.

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 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 six months ended December 31, 2016 were $13,841,773 and $52,209,503, 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 $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

7. INDEMNIFICATION

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

8. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

Other information (unaudited) Wells Fargo Small Cap Core Fund 23

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

24 Wells Fargo 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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

26 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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300486 02-17 SA269/SAR269 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo Strategic Municipal Bond Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	27
Statement of operations	28
Statement of changes in net assets	29
Financial highlights	30
Notes to financial statements	35
Other information	40
List of abbreviations	43

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

2 Wells Fargo Strategic Municipal Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Strategic Municipal Bond Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 J. Miller

Average annual total returns (%) as of December 31, 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		(3.61	)		1.42		2.42		0.36			2.26		2.84		0.82		0.82
Class B (VMPIX)*	3-21-1985		(5.32	)		1.09		2.31		(0.40	)		1.47		2.31		1.57		1.57
Class C (DHICX)	8-18-1997		(1.39	)		1.49		2.07		(0.39	)		1.49		2.07		1.57		1.57
Administrator Class (VMPYX)	10-6-1997		–			–		–		0.48			2.37		3.02		0.76		0.69
Institutional Class (STRIX)	11-30-2012		–			–		–		0.69			2.56		3.11		0.49		0.49
Bloomberg Barclays Short-Intermediate Municipal Bond Index4	–		–			–		–		(0.15	)		1.79		3.48		–		–

* 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

Effective maturity distribution as of December 31, 2016⁵

Credit quality as of December 31, 2016⁶

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, 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.

³  The manager has contractually committed through October 31, 2017, 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 Bloomberg Barclays Short-Intermediate Municipal Bond Index (formerly known as 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  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  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 Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	986.85	$	4.00		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.11	$	4.06		0.80	%
Class B
Actual	$	1,000.00	$	981.95	$	7.72		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.86		1.55	%
Class C
Actual	$	1,000.00	$	983.18	$	7.73		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.86		1.55	%
Administrator Class
Actual	$	1,000.00	$	986.32	$	3.40		0.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.72	$	3.46		0.68	%
Institutional Class
Actual	$	1,000.00	$	988.49	$	2.35		0.47	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.77	$	2.39		0.47	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.71%
Alabama: 1.62%
Alabama Black Belt Energy Gas District Series A (Utilities Revenue, Royal Bank of Canada LIQ) ±		4.00	%		7-1-2046	$	18,825,000	$	20,064,250
Birmingham AL Special Care Facilities Ascension Senior Credit Group Series C-1 (Health Revenue) ±		1.85			11-15-2046		4,725,000		4,530,424
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		5,325,000		5,545,934
									30,140,608
Alaska: 0.42%
Alaska Housing Finance Corporation Home Mortgage Series A MFHR (Housing Revenue, Bank of Tokyo-Mitsubishi SPA) ø		0.69			12-1-2040		500,000		500,000
Alaska Industrial Development & Export Authority Power Refunding Bonds Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2022		1,200,000		1,313,640
Alaska Industrial Development & Export Authority Power Refunding Bonds Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2023		1,545,000		1,702,884
Valdez AK Marine Terminal BP Pipelines Project Series B (Industrial Development Revenue)		5.00			1-1-2021		4,000,000		4,397,880
									7,914,404
Arizona: 2.06%
Arizona Sports & Tourism Authority Multipurpose Stadium Facility Project Series A (Tax Revenue)		4.00			7-1-2017		900,000		911,457
Florence AZ IDA Legacy Traditional School Project (Education Revenue)		4.00			7-1-2018		515,000		519,264
Maricopa County AZ IDA Educational Horizon Community Learning Center Project (Education Revenue)		2.63			7-1-2021		2,500,000		2,423,600
Maricopa County AZ IDA Senior Living Facilities Christian Care Retirement Apartments Incorporated Project (Health Revenue)		5.00			1-1-2022		1,065,000		1,150,413
Maricopa County AZ IDA Senior Living Facilities Christian Care Retirement Apartments Incorporated Project (Health Revenue)		5.00			1-1-2023		1,120,000		1,215,928
Maricopa County AZ IDA Senior Living Facilities Christian Care Surprise Incorporated Project (Health Revenue) 144A		5.00			1-1-2026		3,205,000		3,023,917
Navajo Nation AZ Series A (Miscellaneous Revenue) 144A		4.00			12-1-2022		6,345,000		6,433,069
Navajo Nation AZ Tribal Utility Authority (Miscellaneous Revenue, Municipal Government Guaranty Insured)		4.00			1-1-2021		3,026,000		3,062,070
Phoenix AZ IDA BASIS Schools Projects Series A (Education Revenue) 144A		3.00			7-1-2020		2,300,000		2,275,091
Phoenix AZ IDA Education Facility BASIS Schools Project (Education Revenue) 144A		3.00			7-1-2020		475,000		469,856
Phoenix AZ IDA Great Hearts Academies Project (Education Revenue)		5.20			7-1-2022		645,000		671,961
Phoenix AZ IDA Guam Facilities Foundation Incorporated Project Series 2014 (Miscellaneous Revenue)		5.00			2-1-2017		2,845,000		2,848,727
Phoenix AZ IDA Legacy Traditional School Project Series 2015 (Education Revenue) 144A		3.00			7-1-2020		515,000		501,770
Pima County AZ IDA American Leadership Academy Project Series 2015 (Education Revenue) 144A		4.60			6-15-2025		1,530,000		1,502,016
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		1,000,000		1,004,870
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		3,000,000		3,033,030
Pima County AZ IDA Noah Webster Schools Project Series A (Education Revenue)		5.50			12-15-2023		1,070,000		1,133,291
Pima County AZ Industrial Development Charter School (Education Revenue)		4.00			7-1-2017		1,125,000		1,133,775
Salt River AZ Pima Maricopa Indian Community Series 2005 (Miscellaneous Revenue, Bank of America NA LOC) ø		0.73			10-1-2025		1,500,000		1,500,000

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

8 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Arizona (continued)
Tempe AZ IDA Friendship Village Series A (Health Revenue)		4.00	%		12-1-2017	$	220,000	$	222,878
Tempe AZ IDA Friendship Village Series A (Health Revenue)		5.00			12-1-2018		800,000		835,096
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		4.25			7-15-2019		1,320,000		1,332,580
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		5.00			7-15-2020		700,000		724,927
Verrado AZ Community Facilities District #1 Series A (GO Revenue) 144A		5.00			7-15-2021		500,000		520,735
									38,450,321
Arkansas: 0.25%
Boone County AR Hospital Construction Series 2006 (Health Revenue, BOKF NA LOC) ø		1.20			5-1-2037		4,700,000		4,700,000
California: 6.56%
Alameda CA Corridor Transportation Authority Prerefunded CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2017		1,660,000		1,646,471
Alameda CA Corridor Transportation Authority Unrefunded CAB Sub Lien Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2017		425,000		420,763
California Bay Area Toll Authority Toll Bridge Series E-3 (Transportation Revenue) ±		1.42			4-1-2047		11,600,000		11,599,420
California CDA Tender Option Bond Trust Receipts/Certificates Series ZF0199 (Health Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.92			10-1-2020		4,805,000		4,805,000
California Golden State Tobacco Securitization Series 2954 (Tobacco Revenue, Morgan Stanley Bank LIQ) 144Aø		1.27			6-1-2047		25,000,000		25,000,000
California Infrastructure & Economic Development Bank Colburn School Series B (Education Revenue) ±		1.92			8-1-2037		6,325,000		6,362,570
California Infrastructure & Economic Development Bank Museum Art Project Series A (Miscellaneous Revenue) ±		2.29			12-1-2037		3,000,000		3,022,290
California Municipal Finance Authority Charter School Nova Academy Project Series 2016A (Education Revenue) 144A		4.00			6-15-2026		890,000		859,339
California PCFA Refunding Bond Pacific Gas & Electric Company Series D (Industrial Development Revenue, FGIC Insured)		4.75			12-1-2023		1,515,000		1,535,983
California Refunding Bond Series B (GO Revenue) ±		1.62			5-1-2018		3,000,000		3,019,320
California Statewide CDA Eskaton Properties Incorporated (Health Revenue)		5.00			11-15-2017		1,130,000		1,162,680
California Statewide CDA Eskaton Properties Incorporated (Health Revenue)		5.00			11-15-2018		1,060,000		1,119,116
California Student Education Loan Marketing Corporation Series IV-D1 (Education Revenue)		5.88			1-1-2018		2,370,000		2,360,567
California Various Purpose Bonds (Miscellaneous Revenue)		6.25			10-1-2019		10,000		10,134
Chemehuevi Indian Tribe California (Miscellaneous Revenue)		2.00			7-15-2017		5,935,440		5,926,299
Compton CA Public Finance Authority Lease (Miscellaneous Revenue) 144A		4.00			9-1-2022		4,440,000		4,419,976
Delhi CA Unified School District CAB (GO Revenue, Ambac Insured) ¤		0.00			8-1-2019		1,460,000		1,329,228
Golden State Tobacco Securitization Corporation California Tobacco Settlement Revenue Series A (Tobacco Revenue, AGM Insured) ¤		0.00			6-1-2026		8,550,000		6,183,018
Grossmont CA Union High School District Series 2015 (GO Revenue, Citibank NA LIQ) 144Aø		0.87			2-1-2017		7,525,000		7,525,000
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.29			7-1-2027		18,805,000		16,740,023
Palomar Health Refunding Bond Series 2016 (Health Revenue)		3.00			11-1-2017		500,000		501,820
Palomar Health Refunding Bond Series 2016 (Health Revenue)		4.00			11-1-2018		750,000		768,075
Palomar Health Refunding Bond Series 2016 (Health Revenue)		4.00			11-1-2019		1,250,000		1,292,488
Riverside CA Tender Option Bond Trust Receipts/Certificates Series 2016 (GO Revenue, AGM/National Insured, Bank of America NA LIQ) 144Aø		0.68			8-1-2032		7,625,000		7,625,000
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.25			12-1-2017		1,455,000		1,494,692
San Buenaventura CA Community Memorial Health System (Health Revenue)		5.75			12-1-2018		2,110,000		2,237,613

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
San Francisco City & County CA Public Utilities Commission Series 3153X (Water & Sewer Revenue, Morgan Stanley Bank LIQ) 144Aø		0.78	%		11-1-2039	$	2,190,000	$	2,190,000
Santa Clara Valley Transportation Authority Sales Tax Revenue Bonds Series 2008-B (Tax Revenue, Sumitomo Mitsui Banking SPA) ø		0.70			4-1-2036		1,000,000		1,000,000
									122,156,885
Colorado: 1.80%
Aurora CO E-470 Public Highway Authority Senior Series CD-2 (Transportation Revenue, National Insured) ±		2.48			9-1-2039		3,000,000		2,999,010
Centennial CO Southglenn Metropolitan District (GO Revenue)		3.00			12-1-2021		1,100,000		1,052,810
Colorado ECFA Eagle Ridge Academy Project (Education Revenue) 144A		3.63			11-1-2026		2,560,000		2,356,531
Colorado ECFA Rocky Mountain Classical Academy Project (Education Revenue)		6.38			9-1-2023		1,905,000		1,973,199
Colorado ECFA Vanguard School Project (Education Revenue)		4.00			6-15-2021		250,000		262,245
Colorado ECFA Vanguard School Project (Education Revenue)		4.00			6-15-2022		515,000		542,316
Colorado ECFA Windsor Charter Academy (Education Revenue) 144A		3.88			9-1-2026		570,000		527,894
Colorado Health Facilities Authority Catholic Health Initiatives Series 2009A (Health Revenue)		5.50			7-1-2034		10,000,000		10,472,800
Colorado Health Facilities Authority Catholic Health Initiatives Series 2011A (Health Revenue)		5.00			2-1-2022		3,415,000		3,744,684
Colorado Health Facilities Authority Christian Living Neighborhoods Project (Health Revenue)		1.25			1-1-2017		170,000		169,991
Colorado Health Facilities Authority Christian Living Neighborhoods Project (Health Revenue)		4.00			1-1-2018		250,000		252,242
Colorado Health Facilities Authority Christian Living Neighborhoods Project (Health Revenue)		4.00			1-1-2019		385,000		389,920
Colorado Health Facilities Authority Series 2016C (Health Revenue) ø		0.58			12-1-2045		5,000,000		5,000,000
Colorado Health Facilities Authority Unrefunded Balance (Health Revenue)		5.25			6-1-2024		980,000		982,597
Fountain CO Urban Renewal Authority South Academy Highlands Project Series 2015-A (Tax Revenue)		4.50			11-1-2029		2,855,000		2,913,927
									33,640,166
Connecticut: 2.02%
Connecticut HEFA Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2017		1,070,000		1,089,774
Connecticut HEFA Bridgeport Hospital Series D (Health Revenue)		5.00			7-1-2020		500,000		551,930
Connecticut HEFA Yale New Haven Health Series D (Health Revenue, Bank of America NA LOC) ø		0.72			7-1-2048		5,000,000		5,000,000
Connecticut Series A (Miscellaneous Revenue) ±		1.31			3-1-2021		2,700,000		2,695,140
Connecticut Series A (Miscellaneous Revenue) ±		1.48			5-15-2018		2,000,000		2,003,880
Connecticut Series A (Miscellaneous Revenue) ±		1.60			4-15-2018		5,000,000		5,007,300
Connecticut Series A (Miscellaneous Revenue) ±		1.97			4-15-2020		7,000,000		7,063,490
Connecticut Series A (Miscellaneous Revenue) ±		2.07			3-1-2019		4,050,000		4,052,754
Connecticut Series D (GO Revenue) ±		1.49			9-15-2018		1,000,000		1,001,450
Connecticut Series D (GO Revenue) ±		1.64			9-15-2019		3,345,000		3,345,368
Hamden CT Refunding Bond (GO Revenue)		5.00			8-15-2019		1,835,000		1,969,230
Hartford CT Series A (GO Revenue)		5.00			4-1-2025		2,500,000		2,566,975
Hartford CT Series B (GO Revenue)		5.00			4-1-2024		1,300,000		1,345,019
									37,692,310

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

10 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Delaware: 0.11%
Delaware EDA Odyssey Charter School Project Series A (Education Revenue) 144A		6.25	%		9-1-2025	$	2,035,000	$	2,034,776
District of Columbia: 0.07%
District of Columbia Georgetown University Series B-1 (Education Revenue, Bank of America NA LOC) ø		0.72			4-1-2041		1,225,000		1,225,000
Florida: 2.52%
Brevard County FL Space Coast Infrastructure Agency I-95 Project (Industrial Development Revenue)		4.00			6-15-2018		5,000,000		5,170,800
Eustis FL Multi-Purpose Series A (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.82			12-1-2027		260,000		260,000
Florida Cityplace Community Development District Special Assessment (Miscellaneous Revenue)		5.00			5-1-2017		500,000		505,215
Florida Cityplace Community Development District Special Assessment (Miscellaneous Revenue)		5.00			5-1-2018		1,375,000		1,425,132
Florida Development Finance Corporate Educational Facilities Charter Foundation Projects Series A (Education Revenue) 144A		4.00			7-15-2026		3,920,000		3,742,855
Florida Village Community Development District #10 Special Assignment (Miscellaneous Revenue)		5.13			5-1-2024		3,705,000		4,043,637
Lakeland FL Hospital System Lakeland Regional Health System (Health Revenue)		5.00			11-15-2022		4,495,000		4,997,541
Miami FL HFA Jewish Home & Hospital Project (Health Revenue, SunTrust Bank LOC) ø		0.80			8-1-2026		5,340,000		5,340,000
Miami FL Special Obligation (Miscellaneous Revenue, AGM Insured)		5.00			2-1-2017		1,000,000		1,003,330
Miami-Dade County FL IDA Youth Charter Schools Project Series 2015A (Education Revenue) 144A		5.00			9-15-2025		1,000,000		992,960
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		1.27			9-25-2024		6,460,000		6,460,000
North Brevard County FL Parrish Medical Center Project (Health Revenue)		5.50			10-1-2018		500,000		529,305
Orange County FL IDA Central Florida Kidney Center Project (Industrial Development Revenue, SunTrust Bank LOC) ø		0.80			12-1-2020		2,750,000		2,750,000
Sarasota County FL Health Facilities Authority Village on the Isle Project (Health Revenue)		4.00			1-1-2020		1,485,000		1,558,730
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase I (Miscellaneous Revenue)		3.00			5-1-2017		545,000		543,872
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase I (Miscellaneous Revenue)		3.00			5-1-2018		560,000		557,105
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase II (Miscellaneous Revenue)		3.00			5-1-2017		780,000		778,385
Sumter County FL Village Community Development District #5 Special Assessment Bond Phase II (Miscellaneous Revenue)		3.00			5-1-2018		795,000		790,890
University of West Florida Foundation Incorporated Dormitory Series A (Housing Revenue)		5.00			6-1-2020		1,210,000		1,306,800
University of West Florida Foundation Incorporated Dormitory Series A (Housing Revenue)		5.00			6-1-2021		1,265,000		1,382,835
University of West Florida Foundation Incorporated Dormitory Series A (Housing Revenue)		5.00			6-1-2022		1,325,000		1,465,755
University of West Florida Foundation Incorporated Dormitory Series A (Housing Revenue)		5.00			6-1-2023		1,190,000		1,329,801
									46,934,948

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Georgia: 3.10%
Atlanta GA Water & Wastewater Project Series A-1 (Water & Sewer Revenue) ±		2.01	%		11-1-2038	$	5,000,000	$	5,045,400
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project Second Series 2012 (Utilities Revenue) ±		1.75			12-1-2049		2,000,000		2,003,440
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project Series 2009 (Utilities Revenue) ø		0.82			7-1-2049		16,340,000		16,340,000
Burke County GA Development Authority Oglethorpe Power Corporation Vogtle Plant Project Series A (Utilities Revenue) ±		2.40			1-1-2040		5,720,000		5,766,732
Cherokee County GA Water & Sewage Authority (Water & Sewer Revenue, National Insured)		6.90			8-1-2018		5,000		5,023
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		8,875,000		8,825,122
Gainesville & Hall Counties GA Hospital Authority Health System Project Series B (Health Revenue) ±		1.51			8-15-2035		6,000,000		5,976,900
Georgia General Obligation Refunding Bond Series F (Miscellaneous Revenue)		5.00			1-1-2025		4,220,000		5,110,251
Georgia Private Colleges & Universities Authority (Education Revenue)		5.00			10-1-2019		1,325,000		1,414,901
Georgia Road & Tollway Authority I-75 S Express Lanes Project Series A (Transportation Revenue) 144A¤		0.00			6-1-2024		2,500,000		1,580,700
Main Street Natural Gas Incorporated Georgia Gas Project Series B (Utilities Revenue)		5.00			3-15-2018		5,485,000		5,665,895
									57,734,364
Guam: 0.14%
Guam Government Business Privilege Tax Series D (Tax Revenue)		5.00			11-15-2020		1,350,000		1,472,580
Guam Government Waterworks Authority Water & Wastewater System Series 2014A (Water & Sewer Revenue)		5.00			7-1-2020		1,000,000		1,084,050
									2,556,630
Hawaii: 0.58%
Hawaii Department of Budget and Finance Queens Health System Series B (Health Revenue) ø		1.18			7-1-2039		10,765,000		10,765,000
Illinois: 15.49%
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2021		10,255,000		8,379,976
Chicago IL Board of Education Series A3 (GO Revenue) ±		1.56			3-1-2036		17,200,000		16,232,844
Chicago IL CAB City Colleges Series 1999 (GO Revenue, National Insured) ¤		0.00			1-1-2024		9,975,000		7,309,181
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2021		1,450,000		1,521,731
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2023		2,400,000		2,533,512
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2022		1,810,000		1,907,269
Chicago IL Motor Fuel Tax Refunding Bonds Series 2013 (Tax Revenue)		5.00			1-1-2024		2,475,000		2,614,021
Chicago IL Neighborhoods Alive 21 Series B (GO Revenue)		5.00			1-1-2026		5,835,000		5,702,779
Chicago IL O’Hare International Airport Senior Lien Bonds Series 2015 C (Airport Revenue)		5.00			1-1-2022		695,000		770,706
Chicago IL O’Hare International Airport Senior Lien Bonds Series 2015 D (Airport Revenue)		5.00			1-1-2021		500,000		553,360
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.25			1-1-2023		1,350,000		1,540,390
Chicago IL O’Hare International Airport Customer Facility Charge (Airport Revenue)		5.25			1-1-2024		1,415,000		1,603,662
Chicago IL Park District General Obligation Limited Series A (GO Revenue)		5.00			1-1-2022		400,000		442,192
Chicago IL Park District General Obligation Limited Series A (GO Revenue)		5.00			1-1-2023		400,000		446,676

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

12 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Park District General Obligation Limited Series A (GO Revenue)		5.00	%		1-1-2024	$	550,000	$	617,166
Chicago IL Park District General Obligation Limited Series A (GO Revenue)		5.00			1-1-2025		625,000		703,406
Chicago IL Park District General Obligation Limited Series C (GO Revenue)		5.00			1-1-2022		1,000,000		1,105,480
Chicago IL Park District General Obligation Limited Series C (GO Revenue)		5.00			1-1-2024		410,000		460,069
Chicago IL Park District General Obligation Series C (GO Revenue)		5.00			1-1-2023		1,000,000		1,116,690
Chicago IL Park District Harbor Facilities Series D (GO Revenue)		5.00			1-1-2022		1,520,000		1,680,330
Chicago IL Park District Harbor Facilities Series D (GO Revenue)		5.00			1-1-2023		1,175,000		1,312,111
Chicago IL Park District Limited Tax Series B (GO Revenue)		5.00			1-1-2022		4,495,000		4,969,133
Chicago IL Park District Unlimited Tax Series E (GO Revenue)		5.00			11-15-2022		1,235,000		1,379,977
Chicago IL Park District Unlimited Tax Series E (GO Revenue)		5.00			11-15-2023		1,295,000		1,456,927
Chicago IL Series A (Tax Revenue)		5.00			1-1-2029		5,000,000		5,069,500
Chicago IL Series A (GO Revenue)		5.25			1-1-2022		2,395,000		2,388,869
Chicago IL Series C (GO Revenue)		5.00			1-1-2021		1,000,000		997,560
Chicago IL Series C (GO Revenue)		5.00			1-1-2022		2,250,000		2,234,407
Chicago IL Series C (GO Revenue)		5.00			1-1-2023		2,500,000		2,482,250
Chicago IL Series C (GO Revenue)		5.00			1-1-2025		4,865,000		4,780,106
Chicago IL Series D (GO Revenue, Ambac Insured)		5.00			12-1-2022		3,915,000		3,926,353
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		1,140,000		1,143,272
Chicago IL Tax Increment Bond Pilson Redevelopment Project Series A (Tax Revenue)		5.00			6-1-2022		1,635,000		1,791,126
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5307-A (Transportation Revenue, AGC Insured)		5.25			6-1-2022		2,100,000		2,173,164
Chicago IL Transit Authority Capital Grant Receipts Refunding Bond Series 2011 (Miscellaneous Revenue, AGM Insured)		5.25			6-1-2024		4,450,000		4,839,953
Chicago IL Unrefunded Balance Bond Series A (GO Revenue, AGM Insured)		5.00			1-1-2024		305,000		307,342
Chicago IL Wastewater Transmission Second Lien Series A (Water & Sewer Revenue)		4.00			1-1-2018		1,175,000		1,199,628
Chicago IL Waterworks Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2021		1,000,000		1,002,990
Chicago lL Series A (Tax Revenue)		5.00			1-1-2022		3,000,000		3,114,210
Cook County IL Refunding Bonds Series 2010 G (GO Revenue)		5.00			11-15-2026		1,000,000		1,069,080
Cook County IL School District #123 Oak Lawn CAB (GO Revenue, National Insured) ¤		0.00			12-1-2021		1,090,000		921,551
Cook County IL Series A (GO Revenue)		5.00			11-15-2021		2,250,000		2,483,752
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		10,040,000		10,976,130
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		1,000,000		1,114,270
Cook County IL Series C (GO Revenue, National Insured)		5.00			11-15-2020		1,150,000		1,179,164
Cook County IL Series C (GO Revenue, National Insured)		5.00			11-15-2021		5,000,000		5,126,800
DeWitt & Ford Counties IL Community College District #540 (GO Revenue, AGM Insured)		5.00			12-1-2021		5,920,000		6,109,262
DuPage County IL Forest Preservation District Series 2015 (GO Revenue)		5.00			1-1-2023		2,455,000		2,838,078
Huntley IL Special Service Area #6 (Tax Revenue, AGC Insured)		4.60			3-1-2017		251,000		251,703
Illinois Finance Authority OSF Healthcare Series F (Health Revenue, Barclays Bank plc LOC) ø		0.75			11-15-2037		4,800,000		4,800,000
Illinois Municipal Electric Agency Power Series A (Utilities Revenue, National Insured)		5.25			2-1-2021		3,840,000		3,854,707
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2020		5,000,000		5,206,850
Illinois Refunding Bond (Miscellaneous Revenue, AGM Insured)		5.00			8-1-2020		5,050,000		5,391,683
Illinois Refunding Bonds Series 2016 (Miscellaneous Revenue)		5.00			2-1-2026		7,000,000		7,136,640
Illinois Sales Tax Series 2016 (Tax Revenue, Bank of America NA LIQ) 144Aø		1.08			6-15-2034		8,310,000		8,310,000
Illinois Series 2012 (Miscellaneous Revenue)		5.00			8-1-2021		5,620,000		5,854,691
Illinois Series 2013 (Miscellaneous Revenue)		5.00			7-1-2022		1,900,000		1,976,874
Illinois Series 2013 (Miscellaneous Revenue, AGM Insured)		5.00			7-1-2023		4,875,000		5,250,082
Illinois Series A (GO Revenue)		5.00			4-1-2020		2,000,000		2,078,560

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Series A (GO Revenue)		5.00	%		4-1-2023	$	3,500,000	$	3,626,595
Illinois Sports Facilities Authority Series 2014 (Tax Revenue)		5.00			6-15-2022		3,380,000		3,589,729
Illinois Sports Facilities Authority Series 2014 (Tax Revenue)		5.00			6-15-2023		3,200,000		3,414,976
Illinois Sports Facilities Authority series 2014 (Tax Revenue)		5.00			6-15-2024		4,005,000		4,292,038
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2018		4,105,000		3,946,013
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2022		3,795,000		3,094,063
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2023		7,870,000		6,124,119
Illinois State Toll Highway Authority Series A1 (Transportation Revenue, AGM Insured, JPMorgan Chase & Company SPA) ø		0.73			1-1-2031		3,000,000		3,000,000
Kane County IL Aurora West School District #129 (GO Revenue, AGM Insured)		5.00			2-1-2022		6,290,000		7,014,734
Kane, Cook & DuPage Counties IL School District #46 Prerefunded CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2021		510,000		470,577
Kane, Cook & DuPage Counties IL School District #46 Unrefunded CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2021		595,000		535,494
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		1,313,406
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		24,721
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2017		1,610,000		1,605,911
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2018		1,000,000		961,430
Lake County IL Community Consolidated School District #3 Beach Park CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		1,100,000		1,010,856
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		1,175,000		1,105,358
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2018		4,000,000		3,946,800
McHenry & Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, AGM/FGIC Insured) ¤		0.00			1-1-2019		1,185,000		1,146,867
Metropolitan Pier & Exposition Authority McCormick Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2022		1,390,000		1,101,950
Metropolitan Pier & Exposition Authority McCormick Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2023		865,000		652,859
Metropolitan Pier & Exposition Authority McCormick Series A (Tax Revenue, National Insured) ¤		0.00			6-15-2025		1,000,000		1,092,590
Metropolitan Pier & Exposition Authority McCormick Series B (Tax Revenue)		5.00			12-15-2022		11,520,000		11,682,547
Metropolitan Pier & Exposition Authority McCormiick Series B (Tax Revenue)		5.00			12-15-2026		1,675,000		1,773,322
Rockford IL Warerworks System Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-15-2022		1,065,000		1,203,024
Rockford IL Waterworks System Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-15-2020		1,000,000		1,100,670
Rockford IL Waterworks System Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-15-2021		1,015,000		1,130,517
Romeoville IL Series B (GO Revenue, AGC Insured) ¤		0.00			12-30-2023		3,410,000		2,468,329
Romeoville IL Series B (GO Revenue, AGC Insured) ¤		0.00			12-30-2024		2,840,000		1,938,073
St. Charles, Kane and Dupage Counties IL Series 2016 (Tax Revenue)		4.00			1-1-2020		760,000		767,281
St. Charles, Kane and Dupage Counties IL Series 2016 (Tax Revenue)		3.00			1-1-2018		200,000		199,394
St. Charles, Kane and Dupage Counties IL Series 2016 (Tax Revenue)		3.00			1-1-2019		300,000		297,066

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

14 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
St. Charles, Kane and Dupage Counties IL Series 2016 (Tax Revenue)		4.00	%		1-1-2021	$	790,000	$	796,984
St. Charles, Kane and Dupage Counties IL Series 2016 (Tax Revenue)		4.00			1-1-2022		820,000		817,794
St. Charles, Kane and Dupage Counties IL Series 2016 (Tax Revenue)		4.00			1-1-2024		885,000		865,946
St. Charles, Kane and Dupage Counties IL Series 2016 (Tax Revenue)		4.00			1-1-2025		925,000		890,590
St. Charles, Kane and Dupage Counties Series 2016 (Tax Revenue)		4.00			1-1-2023		855,000		845,561
Springfield IL Electric Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2021		7,410,000		7,462,092
St. Clair County IL School District Series B (GO Revenue, National Insured)		4.75			1-1-2018		655,000		670,294
University of Illinois Auxiliary Facilities (Education Revenue, JPMorgan Chase & Company SPA) ø		0.95			4-1-2038		7,580,000		7,580,000
Will County IL Community High School District #210 Lincoln Way (GO Revenue, AGM Insured) ¤		0.00			1-1-2021		1,535,000		1,299,731
Will County IL Community High School District #210 Lincoln Way (GO Revenue)		4.00			1-1-2022		1,100,000		1,041,623
Will County IL School District #114 CAB Series C (GO Revenue, National Insured) ¤		0.00			12-1-2021		855,000		743,183
Winnebago & Boone Counties IL School District #205 Series A (GO Revenue) ¤		0.00			2-1-2021		1,305,000		1,171,381
Winnebago & Boone Counties IL School District #205 Series B (GO Revenue) ¤		0.00			2-1-2021		3,400,000		3,051,874
									288,608,557
Indiana: 2.74%
Gary IN Sanitary District Series A (Water & Sewer Revenue)		5.05			1-15-2029		4,940,000		5,155,236
Indiana Finance Authority Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2025		1,660,000		1,779,371
Indiana Finance Authority Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2027		700,000		740,901
Indiana Finance Authority Environmental Facilities Series 2016A (Industrial Development Revenue)		3.13			12-1-2024		6,000,000		5,917,920
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		16,205,000		16,225,418
Indiana Finance Authority Parkview Health System Series A (Health Revenue)		5.50			5-1-2024		5,255,000		5,689,326
Indiana HFFA Ancilla System Incorporated (Health Revenue, National Insured)		5.25			7-1-2022		325,000		326,150
Knox County IN EDA Good Samaritan Hospital Series A (Health Revenue)		4.00			4-1-2017		625,000		628,162
Knox County IN EDA Good Samaritan Hospital Series A (Health Revenue)		4.00			4-1-2018		400,000		408,064
Whiting IN BP Products North America Incorporated Project (Resource Recovery Revenue)		1.48			12-1-2044		11,400,000		11,282,694
Whiting IN BP Products North America Incorporated Project (Industrial Development Revenue) ±		1.85			6-1-2044		2,950,000		2,927,905
									51,081,147
Iowa: 0.16%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.95			4-1-2022		2,500,000		2,500,000
Iowa Student Loan Liquidity Corporation Series A1 (Education Revenue)		4.13			12-1-2017		570,000		581,292
									3,081,292
Kansas: 0.88%
Wyandotte County & Kansas City KS Special Obligation Refunding and Improvement Bonds Plaza Redevelopment Project (Tax Revenue)		4.00			12-1-2028		1,000,000		942,230
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		49,000,000		15,450,190
									16,392,420

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Kentucky: 1.39%
Christian County KY Jennie Stuart Medical Center (Health Revenue, AGC Insured)		5.25	%		2-1-2018	$	535,000	$	546,588
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		2.75			11-15-2018		300,000		299,817
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		3.00			11-15-2019		350,000		349,993
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		3.35			11-15-2020		335,000		335,402
Kentucky EDFA Healthcare Facilities Rosedale Green Project Series 2015 (Health Revenue)		5.00			11-15-2025		1,500,000		1,517,070
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, National Insured) ¤		0.00			10-1-2022		1,000,000		838,760
Kentucky EDFA Series 2980 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		1.04			8-15-2024		10,500,000		10,500,000
Kentucky Housing Corporate Watterson Lakeview Project (Housing Revenue)		0.95			7-1-2018		5,000,000		4,967,400
Kentucky Municipal Power Agency Prairie State Project Series B (Utilities Revenue) ±		1.96			9-1-2042		6,500,000		6,500,585
									25,855,615
Louisiana: 0.27%
Louisiana Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		5.00			5-15-2025		1,445,000		1,447,991
St. Bernard Parish LA Series 2012 (Tax Revenue)		4.00			3-1-2019		3,355,000		3,504,029
									4,952,020
Maryland: 1.87%
Baltimore MD Series A (Water & Sewer Revenue, National Insured)		5.65			7-1-2020		4,100,000		4,371,994
Howard County MD Housing Commission Series A (Housing Revenue) ±		1.97			7-1-2034		6,665,000		6,659,201
Maryland Community Development Administration Park Heights Apartments Series 2016 (Housing Revenue)		2.15			12-1-2018		8,500,000		8,500,595
Maryland Community Development Administration Pleasant View Gardens Townhouses Series F (Housing Revenue)		1.20			7-1-2018		12,300,000		12,214,515
Prince Georges County MD Chesapeake Lighthouse Charter School Project Series 2015 (Education Revenue) 144A		5.25			8-1-2022		1,790,000		1,837,793
Prince Georges County MD Chesapeake Lighthouse Charter School Project Series 2016 (Education Revenue)		5.00			8-1-2026		1,335,000		1,351,167
									34,935,265
Massachusetts: 0.73%
Massachusetts Development Finance Agency Sabis International Charter School Series 2015 (Education Revenue)		5.00			4-15-2025		1,000,000		1,069,920
Massachusetts Educational Financing Authority Series J (Education Revenue)		5.00			7-1-2018		750,000		783,487
Massachusetts Educational Financing Authority Series J (Education Revenue)		5.00			7-1-2019		6,000,000		6,381,240
Massachusetts HEFA Milford Regional Medical Center Series E (Health Revenue)		5.00			7-15-2022		2,250,000		2,285,932
Massachusetts Various Consolidated Loans Series D (Tax Revenue) ±		1.15			1-1-2018		3,000,000		3,002,100
									13,522,679
Michigan: 5.81%
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2021		1,405,000		1,605,493
Clarkston MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		5,000,000		5,694,000
Constantine MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2020		350,000		385,343

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

16 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Constantine MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00	%		5-1-2021	$	1,200,000	$	1,347,024
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2017		3,015,000		2,947,796
Detroit MI Water & Sewage Department Series A (Water & Sewer Revenue)		5.00			7-1-2022		1,000,000		1,120,430
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2017		1,245,000		1,237,654
Detroit MI Wayne County Stadium Authority (Miscellaneous Revenue)		5.00			10-1-2018		3,425,000		3,376,296
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2020		1,600,000		1,761,568
Forest Hills MI Public Schools (GO Revenue)		5.00			5-1-2021		1,600,000		1,796,032
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,000,000		1,122,520
Fraser MI Public Schools District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		610,000		694,668
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2021		1,465,000		1,644,492
Hudsonville MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		1,475,000		1,679,730
Ingham County MI Williamston Community Schools Series A (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2024		1,025,000		1,110,762
Ingham County MI Williamston Community Schools Series A (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2025		1,000,000		1,081,450
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.88			10-1-2023		2,500,000		2,577,875
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.40			10-1-2020		500,000		505,260
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.60			10-1-2021		500,000		510,265
Michigan Finance Authority Detroit Recovery Project Series 2014F (Tax Revenue)		3.80			10-1-2022		500,000		514,145
Michigan Finance Authority Detroit Regional Convention Facility Local Project Bonds Series H-1 (Tax Revenue)		5.00			10-1-2021		1,565,000		1,716,617
Michigan Finance Authority Limited Obligation Cesar Chavez Academy Project (Education Revenue)		4.25			2-1-2017		345,000		345,107
Michigan Financial Authority Local Government Loan Program Series C7 (Water & Sewer Revenue, National Insured)		5.00			7-1-2022		2,000,000		2,252,860
Michigan Financial Authority Local Government Loan Program Series D1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2022		2,700,000		3,045,060
Michigan Financial Authority Local Government Loan Program Series D1 (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2023		2,000,000		2,283,580
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2021		6,355,000		7,076,356
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2022		2,080,000		2,342,974
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2023		3,670,000		4,179,800
Michigan Financial Authority Local Government Loan Program Series D6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2024		2,130,000		2,449,820
Michigan Finance Authority Student Loan Refunding Bonds Series 25-A (Education Revenue)		5.00			11-1-2018		3,100,000		3,250,288
Michigan Finance Authority Student Loan Refunding Bonds Series 25-A (Education Revenue)		5.00			11-1-2019		1,500,000		1,600,140
Michigan Finance Authority St. John Health System Series A (Health Revenue, Ambac Insured)		5.00			5-15-2018		300,000		300,993
Michigan Hospital Finance Authority Unrefunded Balance Bond Trinity Health Corporation (Health Revenue)		5.00			12-1-2031		4,500,000		4,513,275
Michigan Housing Development Authority Series E (Housing Revenue) ±		1.59			4-1-2042		9,835,000		9,865,390
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2019		500,000		501,155

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		5.00	%		5-1-2018	$	595,000	$	596,041
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.13			5-1-2020		500,000		501,150
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2023		1,900,000		1,907,543
Michigan Public Educational Facilities Authority Chandler Park Academy (Miscellaneous Revenue)		6.35			11-1-2028		1,500,000		1,502,145
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		7,500,000		7,593,750
Michigan Trunkline Fund Bonds (Tax Revenue, AGM Insured)		5.50			11-1-2021		8,275,000		9,581,209
Southfield MI Public Schools (GO Revenue, National/Qualified School Board Loan Fund Insured)		4.38			5-1-2025		1,950,000		1,969,091
Tender Option Bond Trust Receipts/Certificates Portage Public School (GO Revenue, AGM Insured, Bank of America NA LIQ) 144Aø		0.88			5-1-2031		5,000,000		5,000,000
Wayne County MI Airport Authority AMT Detroit Metropolitan Airport Series C (Airport Revenue)		5.00			12-1-2022		1,000,000		1,089,380
									108,176,527
Minnesota: 0.67%
Hayward MN HCFR St. John’s Lutheran Home of Albert Lea Project Series 2015 (Health Revenue)		2.75			11-1-2017		5,000,000		5,031,150
Minneapolis & St. Paul MN Metropolitan Airports Commission Morgan Stanley Series 3200 (Airport Revenue, Morgan Stanley Bank LIQ) 144Aø		0.75			1-1-2035		6,000,000		6,000,000
St. Paul MN Housing & RDA Charter School Hmong College Preparatory Academy Project Series A (Miscellaneous Revenue)		4.75			9-1-2022		500,000		508,165
St. Paul MN Housing & RDA Charter School Hmong College Preparatory Academy Project Series A (Education Revenue)		5.00			9-1-2026		1,000,000		1,000,690
									12,540,005
Mississippi: 0.27%
Mississippi HFFA Baptist Health System Series A (Health Revenue) ±		1.86			8-15-2036		5,000,000		4,963,200
Missouri: 0.11%
Arnold MO Real Property Arnold Triangle Redevelopment Project Series A (Tax Revenue)		3.75			5-1-2023		2,000,000		1,999,520
Nevada: 0.38%
Carson City NV Carson Tahoe Regional Medical Center (Health Revenue)		5.00			9-1-2018		700,000		734,559
Las Vegas NV Special Improvement District #60 (Miscellaneous Revenue)		3.00			6-1-2017		660,000		659,762
Las Vegas NV Special Improvement District #60 (Miscellaneous Revenue)		4.00			6-1-2018		655,000		661,249
Tender Option Bond Trust Receipts/Certificates Nevada Water District (GO Revenue, JPMorgan Chase & Company LIQ) 144Aø		0.90			6-1-2020		5,000,000		5,000,000
									7,055,570
New Jersey: 4.56%
Delaware River NJ Port Authority Pennsylvania & New Jersey Port District Project (Airport Revenue)		5.00			1-1-2017		2,100,000		2,100,231
Delaware River NJ Port Authority Pennsylvania & New Jersey Port District Project (Airport Revenue)		5.00			1-1-2018		1,230,000		1,267,872
Garden State NJ Preservation Open Space and Farmland Series B (Miscellaneous Revenue, AGM Insured) ¤		0.00			11-1-2021		8,310,000		7,242,414

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

18 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
Hudson County NJ Qualified General and Water Improvements Series 2012A and 2012B (GO Revenue, AGM Insured)		4.00	%		9-1-2018	$	1,140,000	$	1,184,540
New Jersey EDA Elite Pharmaceuticals Project Series A (Industrial Development Revenue)		6.50			9-1-2030		415,000		355,701
New Jersey EDA School Facilities Construction Project Series C (Miscellaneous Revenue) ±		2.52			2-1-2018		6,500,000		6,541,535
New Jersey EDA School Facilities Construction Project Prerefunded Bond Series EE (Miscellaneous Revenue)		5.50			9-1-2021		2,025,000		2,319,354
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		2.27			9-1-2027		12,500,000		11,634,500
New Jersey EDA School Facilities Construction Project Series K (Miscellaneous Revenue, Ambac Insured)		5.25			12-15-2020		3,000,000		3,206,040
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2024		1,645,000		1,788,576
New Jersey EDA School Facilities Construction Project Unrefunded Bond Series EE (Miscellaneous Revenue)		5.50			9-1-2021		750,000		803,948
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			7-1-2020		500,000		544,480
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			1-1-2021		585,000		638,048
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			7-1-2021		900,000		990,819
New Jersey EDA The Goethals Bridge Replacement Project (Industrial Development Revenue)		5.00			1-1-2023		400,000		440,072
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2026		12,000,000		7,676,760
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			6-15-2022		4,510,000		4,721,609
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		1,900,000		2,027,718
New Jersey TTFA Series A (Transportation Revenue)		5.25			6-15-2022		2,785,000		2,943,940
New Jersey TTFA Series AA (Transportation Revenue)		2.50			6-15-2018		2,150,000		2,149,785
New Jersey TTFA Series AA (Transportation Revenue)		4.00			6-15-2018		2,900,000		2,961,596
New Jersey TTFA Series AA (Transportation Revenue)		5.00			6-15-2023		4,665,000		4,924,234
New Jersey TTFA Series B (Transportation Revenue)		5.00			6-15-2020		2,000,000		2,109,980
New Jersey TTFA Series D (Transportation Revenue)		5.00			12-15-2023		6,960,000		7,346,628
Newark NJ Housing Authority (Miscellaneous Revenue, National Insured)		5.25			1-1-2019		2,995,000		3,191,861
Paterson NJ General Improvement (GO Revenue, AGM Insured)		5.00			6-15-2020		400,000		424,840
South Jersey NJ Port Corporate Marine Terminal Series S-2 (Airport Revenue)		5.00			1-1-2023		1,665,000		1,713,668
South Jersey NJ Port Corporate Marine Terminal Series S-2 (Airport Revenue)		5.00			1-1-2024		1,750,000		1,789,393
									85,040,142
New Mexico: 0.92%
New Mexico Educational Assistance Foundation Series A2 (Education Revenue) ±		1.32			12-1-2028		155,000		154,524
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.16			11-1-2039		17,100,000		16,995,348
									17,149,872
New York: 11.85%
Albany NY IDA Foundation State University Project Series A (Education Revenue) ø		1.02			7-1-2032		3,030,000		3,030,000
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		970,810

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
East Rochester NY Housing Authority Home Good Sheperd Project Series A (Housing Revenue, Royal Bank of Scotland LOC) ø		0.89	%		12-1-2036	$	2,625,000	$	2,625,000
Glen Cove NY Local Economic Assistance Corporation CAB Series B (Industrial Development Revenue) ¤		0.00			1-1-2045		6,000,000		1,082,460
Monroe County NY Greece NewYork Central School (GO Revenue)		2.00			6-30-2017		7,900,000		7,930,178
Monroe County NY Industrial Development Corporation Unity Hospital Rochester Project (Health Revenue, FHA Insured)		4.20			8-15-2025		7,195,000		7,203,706
Nassau NY Health Care Corporation Series D-1 (Health Revenue, JPMorgan Chase & Company LOC) ø		0.77			8-1-2029		3,000,000		3,000,000
New York City NY Municipal Water Finance Authority Water and Sewer System Series CC (Water & Sewer Revenue, Barclays Bank plc SPA) ø		0.75			6-15-2041		13,000,000		13,000,000
New York City NY Transitional Finance Authority Sub Series 2B (Tax Revenue, Dexia Credit Local SPA) ø		0.96			11-1-2022		7,585,000		7,585,000
New York Housing Finance Agency Manhattan Residential Market Series A (Housing Revenue, Bank of China LOC) ø		0.70			11-1-2049		3,000,000		3,000,000
New York Local Government Assistance Corporation Series A9V (Tax Revenue, AGM Insured) ±(m)(n)		0.99			4-1-2017		625,000		625,000
New York Metropolitan Transportation Authority Dedicated Tax Fund (Tax Revenue) ±		1.67			11-1-2019		7,500,000		7,567,125
New York NY Adjusted Fiscal 2015 Sub Series F-5 (GO Revenue, Barclays Bank plc LIQ) ø		0.75			6-1-2044		15,000,000		15,000,000
New York NY Energy Research & Development Authority Gas Facilities Brooklyn Union Gas Project Series A1 (Utilities Revenue, National Insured) ±(m)(n)		1.28			12-1-2020		8,250,000		7,920,000
New York NY Industrial Development Agency Congregation Machine Chaim Incorporated (Miscellaneous Revenue, Santander Bank NA LOC) ø		0.97			5-1-2036		7,050,000		7,050,000
New York NY Municipal Water Finance Authority Series AA3 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.93			6-15-2032		10,035,000		10,035,000
New York NY Series A Sub Series A-3, A-4, A-5 (GO Revenue, Landesbank Hessen-Thüringen LIQ) ø		0.75			8-1-2035		7,000,000		7,000,000
New York NY Series J-4 (GO Revenue) ±		1.27			8-1-2025		6,700,000		6,702,412
New York NY Transitional Finance Authority NYC Recovery Series 3 Sub Series 3C (Tax Revenue, Dexia Credit Local SPA) ø		0.96			8-1-2031		10,000,000		10,000,000
New York NY Transitional Finance Authority Sub Series 2E (Tax Revenue, Dexia Credit Local SPA) ø		1.20			11-1-2022		5,305,000		5,305,000
New York NY Transitional Finance Authority Sub Series A3 (Tax Revenue, Dexia Credit Local SPA) ø		0.93			8-1-2023		18,650,000		18,650,000
New York Tender Option Bond Trust Receipts/Certificates Series 2016 (Health Revenue, Barclays Bank plc LIQ) 144Aø		0.82			7-1-2024		5,370,000		5,370,000
New York Thruway Authority Series II (Transportation Revenue, National Insured)		5.00			1-1-2021		5,900,000		6,116,766
New York Tobacco Settelement Asset Securitization Corporation Incorporated Series 1 (Tobacco Revenue)		5.00			6-1-2026		6,280,000		6,240,624
New York Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		5.00			6-1-2022		3,000,000		3,049,170
New York Tobacco Settlement Financing Corporation Series B (Tobacco Revenue)		5.00			6-1-2021		9,500,000		9,656,180
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2020		3,000,000		3,120,540
New York Transportation Development Corporation American Airlines Incorporated John F. Kennedy International Airport Project Series 2016 (Airport Revenue)		5.00			8-1-2026		6,500,000		6,703,450
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		13,925,000		13,919,430
New York Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2020		10,000,000		11,059,500

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

20 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Niagara NY Area Development Corporation (Education Revenue)		5.00	%		5-1-2017	$	250,000	$	252,718
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2018		500,000		519,600
Oyster Bay NY (GO Revenue)		3.75			3-31-2017		2,350,000		2,353,337
Suffolk County NY Economic Development Corporation (Health Revenue)		5.00			7-1-2017		1,000,000		1,019,090
Suffolk County NY Tobacco Asset Securitization Corporation (Tobacco Revenue)		5.00			6-1-2019		575,000		616,734
Suffolk County NY Tobacco Asset Securitization Corporation (Tobacco Revenue)		5.00			6-1-2020		625,000		682,113
Suffolk County NY Village of Ocean Beach BAN (GO Revenue)		2.00			4-13-2017		4,000,000		4,009,000
Ulster County NY Resource Recovery Agency (Resource Recovery Revenue)		3.00			3-1-2017		900,000		902,511
									220,872,454
Ohio: 1.85%
Akron OH Bath and Copley Joint Township Hospital District (Health Revenue)		5.00			1-1-2031		2,000,000		2,280,200
Akron OH Sanitary Sewer System Improvement Project (Water & Sewer Revenue, Ambac Insured)		5.00			12-1-2017		750,000		773,520
Alliance OH Hospital Alliance Obligated Group (Health Revenue, JPMorgan Chase & Company LOC, AGC Insured) ±		0.72			12-1-2032		4,485,000		4,485,000
Cleveland OH Airport System Series C (Airport Revenue, AGM Insured)		5.00			1-1-2020		1,000,000		1,000,120
Cleveland OH Airport System Series C (Airport Revenue, AGM Insured)		5.00			1-1-2022		5,000,000		5,000,600
Ohio Air Quality Development Authority PCR Facilities Refunding Bond FirstEnergy Generation Project (Resource Recovery Revenue) ±		3.10			3-1-2023		5,315,000		2,223,743
Ohio University Hospital Health System Series B (Health Revenue) ø		1.00			1-15-2033		5,000,000		5,000,000
Ohio University Hospital Health System Series B (Health Revenue) ø		1.00			1-15-2045		10,000,000		10,000,000
Ohio Water Development Authority First Energy Nuclear Generation Project Series A (Water & Sewer Revenue)		3.00			5-15-2019		3,685,000		1,541,399
Ohio Water Development Authority Pollution Control Series A (Industrial Development Revenue) ±		3.75			7-1-2033		5,000,000		2,090,150
									34,394,732
Oklahoma: 0.11%
Comanche County OK Hospital Authority Series A (Health Revenue)		5.00			7-1-2018		795,000		815,479
Woodward County OK PFFA Series B (Tax Revenue)		3.25			9-1-2026		1,330,000		1,334,070
									2,149,549
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		2,968,920
Other: 0.10%
Public Housing Capital Fund Trust II (Miscellaneous Revenue, HUD Insured) 144A		4.50			7-1-2022		1,758,071		1,795,413
Pennsylvania: 8.57%
Allegheny County PA IDA Carnegie Museums of Pittsburgh (Miscellaneous Revenue, Citizens Bank LOC) ø		0.80			8-1-2032		4,500,000		4,500,000
Allegheny County PA Penn Hills Schools District Series 2015 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2022		340,000		378,281
Allegheny County PA Penn Hills Schools District Series 2015 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-15-2023		1,025,000		1,149,702
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		2,000,000		836,040

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Beaver County PA IDA Pollution Control First Nuclear General Project Series A (Utilities Revenue) ±		2.70	%		4-1-2035	$	2,500,000	$	1,047,650
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		2.23			11-1-2039		8,750,000		8,817,812
Delaware County PA IDA Chester Charter School Series A (Education Revenue) 144A		4.38			6-1-2026		1,785,000		1,687,807
Delaware County PA IDA Chester Community Charter School (Education Revenue)		4.50			8-15-2017		1,040,000		1,044,670
Delaware Valley PA Regional Finance Authority (Miscellaneous Revenue)		5.75			7-1-2017		1,191,000		1,217,905
Delaware Valley PA Regional Finance Authority Series B (Miscellaneous Revenue, Bayerische Landesbank LOC) ø		0.85			6-1-2042		2,400,000		2,400,000
Emmaus PA General Authority Series A Sub Series A-13 (Miscellaneous Revenue, U.S. Bank NA LOC) ø		0.72			3-1-2024		8,300,000		8,300,000
Fulton County PA IDA Medical Center Project (Health Revenue)		2.40			7-1-2020		3,125,000		3,053,312
Montgomery County PA HEFAR Arcadia University (Education Revenue)		5.00			4-1-2022		1,575,000		1,725,381
Montgomery County PA HEFAR Arcadia University (Education Revenue)		5.00			4-1-2023		1,655,000		1,826,756
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.60			3-1-2034		8,500,000		8,433,275
Montgomery County PA IDA Peco Energy Company Project Series B (Industrial Development Revenue) ±		2.55			6-1-2029		10,340,000		10,231,223
Pennsylvania EDFA Solid Waste Disposal Republic Services Incorporated Project (Resource Recovery Revenue) ±		1.15			6-1-2044		2,000,000		2,000,000
Pennsylvania HEFAR Shippensburg University Student Services (Education Revenue)		4.00			10-1-2017		550,000		556,716
Pennsylvania EDFA Rapid Bridge Replacement Project Series 2015 (Industrial Development Revenue)		5.00			12-31-2026		3,415,000		3,767,872
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2019		4,650,000		4,919,747
Pennsylvania Public School Building Authority Albert Gallatin Area School District Project (Miscellaneous Revenue) ±		1.21			9-1-2024		3,865,000		3,859,898
Pennsylvania Refunding Bond (GO Revenue)		5.00			1-15-2022		31,000,000		34,988,770
Pennsylvania Turnpike Commission Series A (Transportation Revenue) ±		1.40			12-1-2018		11,150,000		11,142,418
Pennsylvania Turnpike Commission Series B (Transportation Revenue) ±		2.00			12-1-2020		10,000,000		10,097,200
Philadelphia PA Hospital & HEFAR Temple University Health System Series B (Health Revenue)		5.00			7-1-2017		1,500,000		1,518,315
Philadelphia PA IDA Charter School Project A (Education Revenue)		4.50			8-1-2026		3,365,000		3,372,672
Philadelphia PA IDA Charter School Project Series 2016B (Education Revenue)		4.88			8-1-2026		2,190,000		2,193,241
Philadelphia PA IDA Tacony Academy Christian School Project Series A-1 (Education Revenue)		6.25			6-15-2023		730,000		791,539
Philadelphia PA School District Series B (GO Revenue)		3.13			9-1-2020		200,000		200,254
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2021		2,000,000		2,187,860
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2022		3,565,000		3,889,344
Philadelphia PA School District Series E (GO Revenue)		5.25			9-1-2022		1,040,000		1,112,093
Philadelphia PA School District Series E (GO Revenue)		5.25			9-1-2023		5,770,000		6,154,224
Philadelphia PA School District Series E (GO Revenue, BHAC Insured)		5.38			9-1-2028		2,425,000		2,587,887
Philadelphia PA School District Series F (GO Revenue)		5.00			9-1-2022		5,000,000		5,454,900
Scranton PA (GO Revenue)		5.00			11-15-2026		2,125,000		2,191,215
									159,635,979
Puerto Rico: 0.87%
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50			7-1-2017		1,000,000		1,017,880
Puerto Rico Highway & Transportation Authority Series A (Tax Revenue, Ambac Insured) ¤		0.00			7-1-2017		1,890,000		1,866,904

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

22 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate				Maturity date		Principal		Value
Puerto Rico (continued)
Puerto Rico Highway & Transportation Authority Series BB (Transportation Revenue, Ambac Insured)		5.25	%			7-1-2017	$	3,185,000	$	3,196,593
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		1,913,655
Puerto Rico Municipal Finance Authority Series C (Miscellaneous Revenue, AGM Insured)		5.25		��		8-1-2017		300,000		305,502
Puerto Rico Municipal Finance Authority Series C (Tobacco Revenue, BHAC/FGIC Insured)		5.50				7-1-2020		7,050,000		7,698,107
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		224,000
										16,222,641
Rhode Island: 0.43%
Providence RI RDA Series A (Miscellaneous Revenue)		5.00				4-1-2022		1,940,000		2,135,862
Providence RI RDA Series A (Miscellaneous Revenue)		5.00				4-1-2023		1,585,000		1,757,559
Rhode Island Clean Water Finance Agency Cranston Wastewater Treatment System (Miscellaneous Revenue, National Insured)		5.80				9-1-2022		975,000		976,414
Rhode Island Housing & Mortgage Finance (Housing Revenue)		6.50				4-1-2027		15,000		15,173
Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		2.25				6-1-2041		3,135,000		3,131,677
										8,016,685
South Carolina: 1.14%
Lee County SC School Facilities Incorporated (Miscellaneous Revenue, AGM Insured)		2.00				6-1-2020		185,000		183,133
Lee County SC School Facilities Incorporated (Miscellaneous Revenue, AGM Insured)		4.00				12-1-2019		560,000		588,986
Lee County SC School Facilities Incorporated (Miscellaneous Revenue, AGM Insured)		4.00				12-1-2020		375,000		397,380
South Carolina Jobs EDA Brashier Charter LLC Project (Education Revenue, SunTrust Bank LOC) ø		0.80				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		910,000		934,206
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XF2368 (Health Revenue, Barclays Bank plc LIQ) 144Aø		0.66				11-1-2046		2,995,000		2,995,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XM0291 (Utilities Revenue, Royal Bank of Canada LIQ) 144Aø		0.63				7-1-2018		9,300,000		9,300,000
										21,258,705
South Dakota: 0.06%
South Dakota HEFA (Health Revenue)		4.50				9-1-2019		990,000		1,059,142
Tennessee: 1.75%
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤		0.00				12-1-2018		500,000		453,515
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤		0.00				12-1-2019		1,205,000		1,032,468
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤		0.00				12-1-2020		1,180,000		955,706
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤	��	0.00				12-1-2021		775,000		591,759

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Tennessee (continued)
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤		0.00	%		12-1-2022	$	1,000,000	$	720,430
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤		0.00			12-1-2023		2,000,000		1,359,040
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤		0.00			12-1-2024		1,810,000		1,156,735
Bristol TN Industrial Development Board The Pinnacle Project Series B (Tax Revenue) 144A¤		0.00			12-1-2025		2,000,000		1,204,500
Shelby County TN Health Educational & Housing Facilities Board Methodist Le Bonheur Series B (Health Revenue, AGM Insured, U.S. Bank NA SPA) ø		0.72			6-1-2042		14,000,000		14,000,000
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		1,655,000		1,693,562
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		4,000,000		4,223,120
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2020		4,720,000		5,212,390
									32,603,225
Texas: 8.48%
Arlington TX Higher Education Finance Corporate Education Series A (Education Revenue)		4.00			6-15-2026		725,000		687,655
Austin TX Airport Systems Bond (Airport Revenue)		5.00			11-15-2026		1,655,000		1,872,103
Austin TX Community College District Series A (Education Revenue)		4.00			2-1-2023		320,000		349,392
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2021		1,000,000		1,096,660
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2023		500,000		558,635
Clifton TX Higher Education Finance Corporation International Leadership Series 2015A (Education Revenue)		4.63			8-15-2025		8,905,000		8,795,558
Clifton TX Higher Education Finance Corporation Uplift Education Series A (Education Revenue)		4.00			12-1-2025		3,740,000		3,847,749
Ector County TX Independent School District Unlimited Series 2016 (GO Revenue)		5.00			8-15-2027		1,500,000		1,786,275
Galveston TX Wharves & Terminal Revenue (Airport Revenue)		5.00			2-1-2017		1,100,000		1,103,179
Guadalupe County TX City of Seguin Board of Managers Hospital Mortgage Revenue Refunding and Improvement Bonds Series 2015 (Health Revenue)		5.00			12-1-2017		725,000		740,500
Gulf Coast TX IDA (Industrial Development Revenue, BNP Paribas LOC) ø		0.83			11-1-2019		2,850,000		2,850,000
Houston TX Airport System Subordinated Lien Series B (Airport Revenue, National Insured)		5.00			7-1-2026		3,530,000		3,597,847
Houston TX Independent School District Series B (GO Revenue) ±		1.70			6-1-2036		14,000,000		14,102,480
Houston TX Midtown RDA Series 2011 (Tax Revenue)		5.00			1-1-2017		2,270,000		2,270,227
Houston TX Public Improvement Refunding Bonds Series A (GO Revenue)		5.00			3-1-2020		11,000,000		12,144,000
Hunt TX Memorial Hospital Series 1998 (Health Revenue, AGM Insured, JPMorgan Chase & Company SPA) ø		0.85			8-15-2017		1,395,000		1,395,000
Lewisville TX Independent School District Series B (GO Revenue)		5.00			8-15-2024		5,290,000		6,227,494
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		1.75			2-15-2018		250,000		249,632
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		1.40			2-15-2017		225,000		224,977
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		1.95			2-15-2019		250,000		248,797
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		5.00			2-15-2020		810,000		865,768
Mesquite TX Health Facilities Development Corporation Christian Care Centers Incorporated Project Series 2016 (Health Revenue)		5.00			2-15-2021		560,000		605,623

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

24 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
New Hope TX Cultural Education Facilities Finance Corporation The Langford Project Series B-2 (Health Revenue)		3.00	%		11-15-2021	$	700,000	$	677,852
New Hope TX Cultural Education Facilities Finance Corporation Jubilee Academic Center (Education Revenue) 144A		3.38			8-15-2021		1,955,000		1,890,798
Newark TX Higher Educational Finance Corporation Charter Schools Incorporated Series 2015 A (Education Revenue) 144A		4.63			8-15-2025		1,485,000		1,488,594
North Texas Higher Education Authority Incorporated Student Loan Series 2 Class A (Education Revenue) ±		1.85			4-1-2037		2,035,000		1,980,666
North Texas Tollway Authority System Refunding Bonds Series C (Transportation Revenue) ±		1.23			1-1-2038		3,550,000		3,562,177
Pearland TX Permanent Improvement Series 2015 (GO Revenue)		5.00			3-1-2021		1,000,000		1,127,830
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series A (Resource Recovery Revenue) ø		0.85			4-1-2040		9,450,000		9,450,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series C (Resource Recovery Revenue) ø		0.85			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) ø		0.85			11-1-2040		18,000,000		18,000,000
Sam Rayburn TX Municipal Power Agency Bonds Series 2012 (Utilities Revenue)		5.00			10-1-2017		560,000		575,674
Tarrant County TX Cultural Education Facilities Buckingham Senior Living Community Incorporated (Health Revenue)		3.88			11-15-2020		2,500,000		2,506,350
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2974 (Health Revenue, Credit Suisse LIQ) 144Aø		0.92			11-15-2029		2,700,000		2,700,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2015 (Transportation Revenue, Barclays Bank plc LIQ) 144Aø		1.01			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		1,012,949
Texas Municipal Gas Acquisition & Supply Corporation I Gas Supply Revenue Series D (Utilities Revenue)		6.25			12-15-2026		10,000,000		11,744,100
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.19			9-15-2017		2,315,000		2,307,013
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2020		185,000		191,908
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2021		310,000		321,901
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		4.00			4-1-2022		430,000		446,706
Texas New Hope ECFA Collegiate Housing Tarleton State University Series A (Housing Revenue)		5.00			4-1-2025		480,000		524,002
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2020		1,715,000		1,884,888
Texas PFA Southern University Financing System (Education Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2021		1,275,000		1,421,536
Texas General Obligation Veterans Bonds (GO Revenue) ø		0.76			12-1-2046		5,000,000		5,000,000
Victoria TX Independent School District Unlimited Series 2016 (GO Revenue)		5.00			2-15-2026		6,225,000		7,422,690
Wood Glen TX Housing Finance Corporation Mortgage Copperwood Project Series A (Miscellaneous Revenue, National/FHA Insured)		7.65			7-1-2022		2,125,000		2,481,873
									157,939,058
Utah: 0.06%
Utah Charter School Finance Authority Ronald Wilson Reagan Academy Project Series A (Education Revenue) 144A		3.50			2-15-2026		1,195,000		1,111,422

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Vermont: 0.93%
Vermont Student Assistance Corporation Education Loan Series A (Education Revenue)		5.00	%		6-15-2021	$	1,800,000	$	1,955,196
Vermont Student Assistance Corporation Education Loan Series A (Education Revenue)		5.00			6-15-2022		550,000		600,182
Vermont Student Assistance Corporation Education Loan Series A (Education Revenue)		5.00			6-15-2023		1,200,000		1,320,636
Vermont Student Assistance Corporation Series B Class B (Education Revenue) ±		1.62			6-2-2042		10,778,472		10,728,891
Vermont Student Assistance Corporation Series B Class-A1 (Education Revenue) ±		2.44			6-1-2022		2,741,524		2,772,257
									17,377,162
Virgin Islands: 0.60%
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series A (Tobacco Revenue)		5.00			10-1-2025		5,000,000		4,247,800
Virgin Islands PFA Series C (Tax Revenue)		5.00			10-1-2020		2,500,000		2,299,525
Virgin Islands PFA Series C (Tax Revenue)		5.00			10-1-2024		3,600,000		3,114,000
Virgin Islands PFA Subordinated Lien Series C (Tobacco Revenue)		5.00			10-1-2017		1,600,000		1,597,424
									11,258,749
Virginia: 1.30%
Dulles VA Town Center CDA (Miscellaneous Revenue)		4.00			3-1-2017		1,910,000		1,910,783
Louisa VA Electric and Power IDA Series 2008B (Utilities Revenue) ±		2.15			11-1-2035		19,000,000		19,026,220
Petersburg VA Series 2016 (GO Revenue) 144A		4.00			10-1-2017		1,500,000		1,499,940
Prince William County VA IDA Westminster At Lake Ridge Series 2016 (Health Revenue)		1.75			1-1-2018		400,000		396,128
Prince William County VA IDA Westminster At Lake Ridge Series 2016 (Health Revenue)		2.00			1-1-2019		600,000		589,740
Prince William County VA IDA Westminster At Lake Ridge Series 2016 (Health Revenue)		2.25			1-1-2020		910,000		888,369
									24,311,180
Washington: 1.62%
King County WA Sewer Series B (Water & Sewer Revenue, Landesbank Hessen-Thüringen LOC) ø		0.75			1-1-2032		6,000,000		6,000,000
Redmond WA Library Capital Facilities Area (GO Revenue)		5.00			12-1-2017		200,000		200,668
Seattle WA Housing Authority Newholly Phase I Series B (Housing Revenue)		1.25			4-1-2019		4,505,000		4,461,347
Washington HCFR Catholic Health Initiatives Series B (Health Revenue) ±		2.12			1-1-2035		11,000,000		10,998,020
Washington Housing Finance Commission Nonprofit Housing Bonds Heron’s Key Senior Living Series B-3 (Health Revenue) 144A		4.38			1-1-2021		1,625,000		1,618,695
Washington Housing Finance Commission Wesley Homes (Health Revenue, AGC Insured)		5.63			1-1-2022		6,545,000		6,838,216
									30,116,946
West Virginia: 0.40%
West Virginia EDA Morgantown Energy Associates Project (Industrial Development Revenue)		2.88			12-15-2026		2,395,000		2,232,212
West Virginia EDA Solid Waste Disposal Appalachian Power Company (Utilities Revenue, Mizuho Corporate Bank LOC) ø		1.00			2-1-2036		5,275,000		5,275,000
									7,507,212

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

26 Wells Fargo Strategic Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin: 0.93%
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00	%		8-1-2019	$	3,710,000	$	4,006,615
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		4.75			8-1-2023		1,140,000		1,201,184
Pine Lake WI PFA Preparatory Series 2015 (Education Revenue) 144A		4.35			3-1-2025		2,710,000		2,715,041
Wisconsin HEFA Bellin Memorial Hospital Series 2015 (Health Revenue)		3.00			12-1-2020		720,000		744,379
Wisconsin HEFA Bellin Memorial Hospital Series 2015 (Health Revenue)		5.00			12-1-2022		755,000		865,804
Wisconsin PFA Airport Series C (Airport Revenue)		5.00			7-1-2022		2,700,000		2,820,123
Wisconsin PFA Bancroft Neurohealth Project Series A (Health Revenue) 144A		4.00			6-1-2019		1,270,000		1,281,938
Wisconsin PFA Bancroft Neurohealth Project Series A (Health Revenue) 144A		4.00			6-1-2020		635,000		637,807
Wisconsin PFA Bancroft Neurohealth Project Series A (Health Revenue) 144A		4.00			6-1-2021		1,370,000		1,368,863
Wisconsin PFA Roseman University of Health Sciences Project Series 2012 (Education Revenue)		5.00			4-1-2022		1,685,000		1,716,021
									17,357,775
Total Municipal Obligations (Cost $1,851,198,387)									1,839,256,192
Other: 0.96%
Eaton Vance New York Municipal Income Trust Preferred Shares ±		2.22			9-1-2019		10,600,000		10,592,792
Eaton Vance Ohio Municipal Bond Fund Institutional Preferred Shares 144A±		1.56			7-1-2019		7,350,000		7,332,507
Total Other (Cost $17,950,000)									17,925,299
	Yield					Shares
Short-Term Investments: 0.23%
Investment Companies: 0.14%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)		0.67					2,687,254		2,688,866
						Principal
U.S. Treasury Securities: 0.09%
U.S. Treasury Bill (z)		0.50			3-16-2017	$	1,650,000		1,648,350
Total Short-Term Investments (Cost $4,335,670)									4,337,216

Total investments in securities (Cost $1,873,484,057) *	99.90	%		1,861,518,707
Other assets and liabilities, net	0.10			1,833,879
Total net assets	100.00	%	$	1,863,352,586

± 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.

(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.

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

* Cost for federal income tax purposes is $1,873,485,098 and unrealized gains (losses) consists of:

Gross unrealized gains	$	10,222,662
Gross unrealized losses		(22,189,053	)
Net unrealized losses	$	(11,966,391	)

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

Statement of assets and liabilities—December 31, 2016 (unaudited) Wells Fargo Strategic Municipal Bond Fund 27

Assets
Investments
In unaffiliated securities, at value (cost $1,870,796,668)	$	1,858,829,841
In affiliated securities, at value (cost $2,687,389)		2,688,866
Total investments, at value (cost $1,873,484,057)		1,861,518,707
Receivable for investments sold		991,000
Receivable for Fund shares sold		13,232,567
Receivable for interest		14,015,342
Prepaid expenses and other assets		274,309
Total assets		1,890,031,925
Liabilities
Distributions payable		499,507
Payable for Fund shares redeemed		24,977,231
Management fee payable		617,944
Distribution fees payable		104,093
Administration fees payable		199,774
Accrued expenses and other liabilities		280,790
Total liabilities		26,679,339
Total net assets	$	1,863,352,586
NET ASSETS CONSIST OF
Paid-in capital	$	1,876,432,812
Overdistributed net investment income		(260,316	)
Accumulated net realized losses on investments		(854,560	)
Net unrealized losses on investments		(11,965,350	)
Total net assets	$	1,863,352,586
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	683,677,619
Shares outstanding – Class A1		77,354,528
Net asset value per share – Class A		$8.84
Maximum offering price per share – Class A2		$9.21
Net assets – Class B	$	311,347
Shares outstanding – Class B1		35,321
Net asset value per share – Class B		$8.81
Net assets – Class C	$	152,654,461
Shares outstanding – Class C1		17,211,652
Net asset value per share – Class C		$8.87
Net assets – Administrator Class	$	191,050,411
Shares outstanding – Administrator Class1		21,626,048
Net asset value per share – Administrator Class		$8.83
Net assets – Institutional Class	$	835,658,748
Shares outstanding – Institutional Class1		94,570,385
Net asset value per share – Institutional Class		$8.84

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.

28 Wells Fargo Strategic Municipal Bond Fund Statement of operations—six months ended December 31, 2016 (unaudited)

Investment income
Interest	$	20,165,784
Income from affiliated securities		39,486
Total investment income		20,205,270
Expenses
Management fee		3,654,321
Administration fees
Class A		594,943
Class B		388
Class C		128,255
Administrator Class		180,094
Institutional Class		285,726
Shareholder servicing fees
Class A		929,599
Class B		606
Class C		200,399
Administrator Class		448,968
Distribution fees
Class B		1,817
Class C		601,197
Custody and accounting fees		56,770
Professional fees		31,774
Registration fees		79,279
Shareholder report expenses		21,913
Trustees’ fees and expenses		4,051
Other fees and expenses		10,194
Total expenses		7,230,294
Less: Fee waivers and/or expense reimbursements		(105,728	)
Net expenses		7,124,566
Net investment income		13,080,704
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(845,237	)
Affiliated securities		4,070
Futures transactions		2,062
Net realized losses on investments		(839,105	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(41,238,266	)
Affiliated securities		1,477
Futures transactions		2,648,964
Net change in unrealized gains (losses) on investments		(38,587,825	)
Net realized and unrealized gains (losses) on investments		(39,426,930	)
Net decrease in net assets resulting from operations	$	(26,346,226	)

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

Statement of changes in net assets Wells Fargo Strategic Municipal Bond Fund 29

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	13,080,704					$	26,730,838
Net realized gains (losses) on investments					(839,105	)					11,562,440
Net change in unrealized gains (losses) on investments					(38,587,825	)					23,239,340
Net increase (decrease) in net assets resulting from operations					(26,346,226	)					61,532,618
Distributions to shareholders from
Net investment income
Class A					(4,614,753	)					(10,092,186	)
Class B					(1,128	)					(7,361	)
Class C					(394,000	)					(1,247,141	)
Administrator Class					(2,399,513	)					(7,962,494	)
Institutional Class					(5,671,304	)					(7,975,567	)
Net realized gains
Class A					(3,453,460	)					(1,603,578	)
Class B					(1,604	)					(2,508	)
Class C					(776,260	)					(403,600	)
Administrator Class					(1,027,684	)					(1,254,440	)
Institutional Class					(4,275,093	)					(1,022,196	)
Total distributions to shareholders					(22,614,799	)					(31,571,071	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		18,588,405			167,027,107			29,803,012			268,004,154
Class B		0			0			17			155
Class C		1,947,723			17,593,906			3,644,420			32,849,534
Administrator Class		8,992,798			80,978,226			24,016,958			215,580,158
Institutional Class		50,894,097			455,840,390			49,566,722			445,463,474
					721,439,629						961,897,475
Reinvestment of distributions
Class A		834,310			7,448,827			1,210,914			10,875,081
Class B		296			2,634			1,056			9,452
Class C		110,634			987,033			154,668			1,393,195
Administrator Class		369,967			3,313,515			1,002,592			8,998,639
Institutional Class		895,918			7,989,861			720,101			6,471,003
					19,741,870						27,747,370
Payment for shares redeemed
Class A		(22,197,408	)		(198,630,777	)		(22,262,767	)		(199,832,447	)
Class B		(34,570	)		(310,734	)		(42,405	)		(380,448	)
Class C		(2,062,626	)		(18,575,944	)		(3,692,094	)		(33,238,979	)
Administrator Class		(32,867,963	)		(294,196,247	)		(39,420,096	)		(353,739,011	)
Institutional Class		(24,434,160	)		(218,319,056	)		(18,937,647	)		(169,986,975	)
					(730,032,758	)					(757,177,860	)
Net increase in net assets resulting from capital share transactions					11,148,741						232,466,985
Total increase (decrease) in net assets					(37,812,284	)					262,428,532
Net assets
Beginning of period					1,901,164,870						1,638,736,338
End of period				$	1,863,352,586					$	1,901,164,870
Overdistributed net investment income				$	(260,316	)				$	(260,322	)

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

30 Wells Fargo Strategic Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.06			$8.90			$9.03			$8.87			$8.94			$8.77
Net investment income		0.06			0.14			0.10			0.17			0.13			0.21
Net realized and unrealized gains (losses) on investments		(0.17	)		0.18			(0.05	)		0.21			0.01			0.18
Total from investment operations		(0.11	)		0.32			0.05			0.38			0.14			0.39
Distributions to shareholders from
Net investment income		(0.06	)		(0.14	)		(0.10	)		(0.17	)		(0.13	)		(0.21	)
Net realized gains		(0.05	)		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.11	)		(0.16	)		(0.18	)		(0.22	)		(0.21	)		(0.22	)
Net asset value, end of period		$8.84			$9.06			$8.90			$9.03			$8.87			$8.94
Total return1		(1.32	)%		3.67	%		0.56	%		4.41	%		1.59	%		4.48	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.81	%		0.81	%		0.83	%		0.82	%		0.83	%
Net expenses		0.80	%		0.81	%		0.81	%		0.82	%		0.82	%		0.83	%
Net investment income		1.24	%		1.53	%		1.16	%		1.91	%		1.49	%		2.31	%
Supplemental data
Portfolio turnover rate		11	%		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$683,678			$726,135			$635,610			$656,256			$609,303			$549,357

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

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

Financial highlights Wells Fargo Strategic Municipal Bond Fund 31

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS B				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.04			$8.88			$9.00			$8.85			$8.92			$8.75
Net investment income		0.02	1		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	)		0.18			(0.04	)		0.20			0.01			0.17
Total from investment operations		(0.16	)		0.25			(0.00	)		0.30			0.08			0.32
Distributions to shareholders from
Net investment income		(0.02	)		(0.07	)		(0.04	)		(0.10	)		(0.07	)		(0.14	)
Net realized gains		(0.05	)		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.07	)		(0.09	)		(0.12	)		(0.15	)		(0.15	)		(0.15	)
Net asset value, end of period		$8.81			$9.04			$8.88			$9.00			$8.85			$8.92
Total return2		(1.80	)%		2.91	%		(0.08	)%		3.53	%		0.83	%		3.71	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.56	%		1.56	%		1.58	%		1.57	%		1.58	%
Net expenses		1.55	%		1.56	%		1.56	%		1.57	%		1.57	%		1.58	%
Net investment income		0.47	%		0.79	%		0.40	%		1.17	%		0.77	%		1.69	%
Supplemental data
Portfolio turnover rate		11	%		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$311			$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. Returns for periods of less than one year are not annualized.

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

32 Wells Fargo Strategic Municipal Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.09			$8.94			$9.06			$8.90			$8.97			$8.80
Net investment income		0.02			0.07			0.04			0.10			0.07			0.14
Net realized and unrealized gains (losses) on investments		(0.17	)		0.17			(0.04	)		0.21			0.01			0.18
Total from investment operations		(0.15	)		0.24			0.00			0.31			0.08			0.32
Distributions to shareholders from
Net investment income		(0.02	)		(0.07	)		(0.04	)		(0.10	)		(0.07	)		(0.14	)
Net realized gains		(0.05	)		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.07	)		(0.09	)		(0.12	)		(0.15	)		(0.15	)		(0.15	)
Net asset value, end of period		$8.87			$9.09			$8.94			$9.06			$8.90			$8.97
Total return1		(1.68	)%		2.78	%		(0.08	)%		3.63	%		0.83	%		3.69	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.56	%		1.56	%		1.58	%		1.57	%		1.58	%
Net expenses		1.55	%		1.56	%		1.56	%		1.57	%		1.57	%		1.58	%
Net investment income		0.49	%		0.78	%		0.40	%		1.16	%		0.74	%		1.59	%
Supplemental data
Portfolio turnover rate		11	%		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$152,654			$156,560			$152,882			$146,329			$152,155			$147,006

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

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

Financial highlights Wells Fargo Strategic Municipal Bond Fund 33

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.06			$8.90			$9.02			$8.87			$8.94			$8.76
Net investment income		0.06			0.15			0.12			0.18			0.15			0.22
Net realized and unrealized gains (losses) on investments		(0.18	)		0.18			(0.04	)		0.20			0.01			0.19
Total from investment operations		(0.12	)		0.33			0.08			0.38			0.16			0.41
Distributions to shareholders from
Net investment income		(0.06	)		(0.15	)		(0.12	)		(0.18	)		(0.15	)		(0.22	)
Net realized gains		(0.05	)		(0.02	)		(0.08	)		(0.05	)		(0.08	)		(0.01	)
Total distributions to shareholders		(0.11	)		(0.17	)		(0.20	)		(0.23	)		(0.23	)		(0.23	)
Net asset value, end of period		$8.83			$9.06			$8.90			$9.02			$8.87			$8.94
Total return1		(1.37	)%		3.80	%		0.80	%		4.44	%		1.73	%		4.76	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.74	%		0.75	%		0.77	%		0.76	%		0.75	%
Net expenses		0.68	%		0.68	%		0.68	%		0.68	%		0.68	%		0.68	%
Net investment income		1.33	%		1.66	%		1.28	%		2.05	%		1.62	%		2.42	%
Supplemental data
Portfolio turnover rate		11	%		53	%		39	%		51	%		49	%		74	%
Net assets, end of period (000s omitted)		$191,050			$408,846			$529,945			$516,069			$521,312			$435,170

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

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)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			2015			2014			20131
Net asset value, beginning of period		$9.06			$8.90			$9.03			$8.87			$9.06
Net investment income		0.07			0.17			0.13			0.20			0.08	2
Net realized and unrealized gains (losses) on investments		(0.17	)		0.18			(0.05	)		0.21			(0.10	)
Total from investment operations		(0.10	)		0.35			0.08			0.41			(0.02	)
Distributions to shareholders from
Net investment income		(0.07	)		(0.17	)		(0.13	)		(0.20	)		(0.09	)
Net realized gains		(0.05	)		(0.02	)		(0.08	)		(0.05	)		(0.08	)
Total distributions to shareholders		(0.12	)		(0.19	)		(0.21	)		(0.25	)		(0.17	)
Net asset value, end of period		$8.84			$9.06			$8.90			$9.03			$8.87
Total return3		(1.15	)%		4.02	%		0.89	%		4.77	%		(0.28	)%
Ratios to average net assets (annualized)
Gross expenses		0.47	%		0.48	%		0.48	%		0.50	%		0.50	%
Net expenses		0.47	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		1.59	%		1.85	%		1.49	%		2.27	%		1.65	%
Supplemental data
Portfolio turnover rate		11	%		53	%		39	%		51	%		49	%
Net assets, end of period (000s omitted)		$835,659			$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.

Notes to financial statements (unaudited) Wells Fargo Strategic Municipal Bond Fund 35

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 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.

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.

36 Wells Fargo Strategic Municipal Bond Fund Notes to financial statements (unaudited)

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

Security transactions and income recognition

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

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

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

Federal and other taxes

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

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

As of June 30, 2016, the Fund had current year deferred post-October capital losses consisting of $1,483,657 in long-term losses which were recognized on the first day of the current fiscal year.

Class allocations

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

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

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

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

Notes to financial statements (unaudited) Wells Fargo Strategic Municipal Bond Fund 37

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

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

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Municipal obligations	$	0	$	1,839,256,192	$	0	$	1,839,256,192
Other		0		17,925,299		0		17,925,299
Short-term investments
Investment companies		2,688,866		0		0		2,688,866
U.S. Treasury securities		1,648,350		0		0		1,648,350
Total assets	$	4,337,216	$	1,857,181,491	$	0	$	1,861,518,707

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 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, 2017 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,

38 Wells Fargo Strategic Municipal Bond Fund Notes to financial statements (unaudited)

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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $5,336 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $4,438 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fees

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the six months ended December 31, 2016, Funds Distributor received $10,606 from the sale of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $434,986,256 and $150,933,051, 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 six months ended December 31, 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 December 31, 2016, the Fund did not have any open futures contracts. The Fund had an average notional amount of $68,327,149 in short futures contracts during the six months ended December 31, 2016.

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

8. INDEMNIFICATION

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

Notes to financial statements (unaudited) Wells Fargo Strategic Municipal Bond Fund 39

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

40 Wells Fargo Strategic Municipal Bond Fund Other information (unaudited)

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Strategic Municipal Bond Fund 41

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 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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

42 Wells Fargo Strategic Municipal Bond Fund Other information (unaudited)

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

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

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo Strategic Municipal Bond Fund 43

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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300487 02-17 SA257/SAR257 12-16

Semi-Annual Report

December 31, 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	6
Summary portfolio of investments*	7
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	21
Other information	26
List of abbreviations	29

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

The views expressed and any forward-looking statements are as of December 31, 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)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Ultra Short-Term Municipal Income Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with

$26 billion of redemptions in the last two months of the year. This followed a

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

Letter to shareholders (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 3

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(2.26	)		(0.17	)		1.38		(0.26	)		0.23			1.58		0.75		0.67
Class C (WFUSX)	3-31-2008		(1.94	)		(0.51	)		0.84		(0.94	)		(0.51	)		0.84		1.50		1.42
Administrator Class (WUSMX)	7-30-2010		–			–			–		(0.19	)		0.30			1.67		0.69		0.60
Institutional Class (SMAIX)	7-31-2000		–			–			–		0.04			0.53			1.90		0.42		0.37
Bloomberg Barclays 1-Year Municipal Bond Index4	–		–			–			–		0.30			0.63			1.82		–		–

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

Effective maturity distribution as of December 31, 2016⁵

Credit quality as of December 31, 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. 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, 2017, 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 Bloomberg Barclays 1-Year Municipal Bond Index (formerly known as Barclays 1-Year Municipal Bond Index) is the one-year component of the Bloomberg Barclays Municipal Bond Index (fomerly known as 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  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  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 Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	994.26	$	3.36		0.67	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.77	$	3.40		0.67	%
Class C
Actual	$	1,000.00	$	991.64	$	7.11		1.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.00	$	7.20		1.42	%
Administrator Class
Actual	$	1,000.00	$	994.61	$	3.01		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	3.05		0.60	%
Institutional Class
Actual	$	1,000.00	$	995.76	$	1.86		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.28	$	1.88		0.37	%

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 7

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

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Corporate Bonds and Notes: 0.09%
Consumer Discretionary: 0.09%
Hotels, Restaurants & Leisure: 0.09%
Other securities								$	4,892,544		0.09	%
Total Corporate Bonds and Notes (Cost $4,933,225)									4,892,544		0.09
Municipal Obligations: 94.77%
Alabama: 2.91%
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.95	%		11-15-2038	$	35,000,000		34,966,050		0.65
Tender Option Bond Trust Receipts/Certificates Floaters Series XM0184 (Utilities Revenue, Morgan Stanley Bank LIQ) 144Aø		1.17			9-1-2046		31,400,000		31,400,000		0.58
Other securities									90,267,851		1.68
									156,633,901		2.91
Alaska: 0.04%
Other securities									1,936,607		0.04
Arizona: 1.52%
Phoenix AZ IDA Various Republic Services Incorporated Projects (Industrial Development Revenue) ±		0.90			12-1-2035		25,000,000		25,000,000		0.46
Scottsdale AZ IDA Healthcare Series F (Health Revenue, AGM Insured) ±(m)		0.90			9-1-2045		51,000,000		51,000,000		0.95
Other securities									6,103,375		0.11
									82,103,375		1.52
Arkansas: 0.03%
Other securities									1,377,354		0.03
California: 6.47%
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series A (Transportation Revenue) ±		1.00			4-1-2047		29,785,000		29,771,895		0.55
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-2 (Miscellaneous Revenue) ±		1.01			4-1-2038		22,920,000		22,916,333		0.43
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-3 (Miscellaneous Revenue) ±		1.01			4-1-2038		15,600,000		15,597,504		0.29
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-4 (Miscellaneous Revenue) ±		1.01			4-1-2038		32,000,000		31,994,880		0.59
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		0.90			8-1-2027		31,940,000		31,940,000		0.59
Santa Clara CA PFOTER Series 4713 (GO Revenue, Ambac Insured, Dexia Credit Local LIQ) 144Aø		1.03			12-15-2021		22,445,000		22,445,000		0.42
Other securities									193,621,529		3.60
									348,287,141		6.47

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

8 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Colorado: 0.87%
Other securities								$	46,796,387		0.87	%
Connecticut: 2.90%
Connecticut HEFA (Various Revenue)		0.80-4.00	%		7-1-2017 to 7-1-2048	$	23,005,000		22,729,068		0.43
Connecticut HEFA Yale University Series T-2 (Education Revenue) ±		0.60			7-1-2029		34,520,000		34,511,715		0.64
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		24,600,000		24,504,552		0.46
Other securities									74,378,510		1.37
									156,123,845		2.90
Delaware: 0.45%
Other securities									24,065,000		0.45
District of Columbia: 0.90%
District of Columbia DW&P Series B (Water & Sewer Revenue, TD Bank NA SPA) ø		0.72			10-1-2050		25,500,000		25,500,000		0.47
Other securities									22,846,665		0.43
									48,346,665		0.90
Florida: 3.37%
Other securities									181,369,948		3.37
Georgia: 1.17%
Other securities									63,155,711		1.17
Guam: 0.07%
Other securities									3,670,797		0.07
Hawaii: 0.08%
Other securities									4,524,652		0.08
Idaho: 0.42%
Other securities									22,821,650		0.42
Illinois: 8.85%
Chicago IL Board of Education (Various Revenue) µ		0.00-5.25			12-1-2017 to 12-1-2018		8,530,000		8,163,393		0.15
Chicago IL Board of Education Series A2 (GO Revenue) ±		1.48			3-1-2035		72,320,000		71,103,578		1.32
Illinois (Various Revenue)		2.50-5.00			2-1-2017 to 1-1-2021		111,455,634		113,617,455		2.11
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.85			6-1-2025		38,675,000		38,675,000		0.72
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XG0008 (Health Revenue, AGC Insured, Bank of America NA LIQ) 144Aø		1.01			8-15-2047		23,375,000		23,375,000		0.43
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XG0050 (Health Revenue, Deutsche Bank LIQ) 144Aø		0.92			11-1-2039		31,420,000		31,420,000		0.58
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XM0450 (Tax Revenue, Deutsche Bank LIQ) 144Aø		0.83			12-1-2036		31,235,000		31,235,000		0.58
Other securities									158,946,816		2.96
									476,536,242		8.85

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Indiana: 1.16%
Gary IN Woodlake-Concord Project (Housing Revenue, FHA Insured) ±		1.00	%		10-1-2017	$	22,715,000	$	22,701,598		0.42	%
Other securities									39,660,529		0.74
									62,362,127		1.16
Iowa: 1.21%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.95			4-1-2022		22,500,000		22,500,000		0.42
Other securities									42,826,275		0.79
									65,326,275		1.21
Kansas: 0.45%
Other securities									24,111,695		0.45
Kentucky: 2.22%
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		55,920,000		56,817,516		1.05
Other securities									62,931,228		1.17
									119,748,744		2.22
Louisiana: 1.50%
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.93			2-1-2046		24,000,000		23,886,240		0.44
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.95			11-1-2040		35,000,000		35,000,000		0.65
Other securities									22,120,265		0.41
									81,006,505		1.50
Maryland: 2.50%
Maryland CDA (Various Revenue)		0.80-2.15			1-1-2017 to 4-1-2019		126,450,000		126,007,794		2.33
Other securities									8,892,147		0.17
									134,899,941		2.50
Massachusetts: 1.13%
Other securities									60,764,954		1.13
Michigan: 3.33%
Michigan Finance Authority (Various Revenue) µ		5.00			7-1-2017 to 10-1-2024		78,265,000		81,100,867		1.51
Other securities									98,208,929		1.82
									179,309,796		3.33
Minnesota: 0.67%
Other securities									36,051,563		0.67
Mississippi: 1.06%
Perry County MS PCR Leaf River Forest Products Incorporated Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) 144Aø		0.90			2-1-2022		30,000,000		30,000,000		0.56

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

10 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Mississippi (continued)
Other securities								$	26,953,303		0.50	%
									56,953,303		1.06
Missouri: 0.92%
Other securities									49,711,116		0.92
Montana: 0.15%
Other securities									8,350,000		0.15
Nebraska: 0.14%
Other securities									7,500,000		0.14
Nevada: 0.28%
Other securities									14,995,512		0.28
New Jersey: 6.24%
New Jersey EDA (Various Revenue)		1.46-5.00	%		2-1-2017 to 6-15-2021	$	71,175,000		73,450,382		1.37
Tender Option Bond Trust Receipts Floaters/Certificates Series 2016-XG0047 (Health Revenue, AGC Insured, Deutsche Bank LIQ) 144Aø		1.12			7-1-2038		24,431,373		24,431,373		0.45
Other securities									238,535,194		4.42
									336,416,949		6.24
New Mexico: 0.75%
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.16			11-1-2039		40,685,000		40,436,008		0.75
New York: 16.35%
Metropolitan Transportation Authority New York (Various Revenue) µ		1.09-1.22			11-1-2026 to 11-15-2044		25,910,000		25,867,770		0.48
Metropolitan Transportation Authority New York Sub Series D-2A (Transportation Revenue, AGM Insured) ±		0.90			11-1-2032		36,650,000		36,639,372		0.68
New York NY (Various Revenue) µ		0.71-1.27			8-1-2025 to 6-1-2044		93,925,000		93,928,911		1.76
New York NY Adjusted Fiscal 2008 Sub Series C-4 (GO Revenue, AGC Insured) ±(m)		0.84			10-1-2027		52,225,000		52,225,000		0.97
New York NY Adjusted Fiscal 2015 Sub Series F-4 (GO Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.75			6-1-2044		32,600,000		32,600,000		0.60
New York NY Adjusted Fiscal 2017 Sub Series A-5 (GO Revenue, Landesbank Hessen-Thüringen SPA) ø		0.78			8-1-2044		36,000,000		36,000,000		0.67
New York NY HFA 605 West 42nd Street Series A (Housing Revenue, Bank of China LOC) ø		0.90			5-1-2048		25,000,000		25,000,000		0.46
New York NY Municipal Water Finance Authority Adjusted Fiscal 2013 Sub Series AA-2 (Water & Sewer Revenue, Bank of Tokyo-Mitsubishi SPA) ø		0.75			6-15-2046		27,215,000		27,215,000		0.50
New York NY Municipal Water Finance Authority (Various Revenue) øµ		0.74-1.06			6-15-2032 to 6-15-2050		58,300,000		58,300,000		1.08
New York NY Series A-6 (GO Revenue) ±		1.22			8-1-2031		39,950,000		39,912,447		0.74
New York NY Series J Sub Series J-3 (GO Revenue, AGM Insured) ±(m)		0.84			6-1-2036		28,000,000		28,000,000		0.52

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
New York (continued)
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20	%		2-1-2017	$	37,290,000	$	37,275,084		0.69	%
Suffolk County NY (GO Revenue) µ		1.50-2.00			6-22-2017 to 10-15-2019		39,380,000		39,459,674		0.73
Suffolk County NY TAN (GO Revenue)		2.00			7-26-2017		30,000,000		30,113,400		0.56
Other securities									318,237,318		5.91
									880,773,976		16.35
North Carolina: 1.37%
Other securities									73,589,754		1.37
North Dakota: 0.11%
Other securities									6,077,969		0.11
Ohio: 3.22%
Other securities									173,330,701		3.22
Oklahoma: 0.56%
Other securities									30,051,167		0.56
Oregon: 0.40%
Other securities									21,549,737		0.40
Pennsylvania: 3.82%
Other securities									205,990,703		3.82
Puerto Rico: 0.03%
Other securities									1,396,492		0.03
Rhode Island: 0.24%
Other securities									13,123,679		0.24
South Carolina: 0.74%
Other securities									39,848,176		0.74
Tennessee: 1.81%
Shelby County TN Health Educational & Housing Facilities Board Methodist Le Bonheur Series B (Health Revenue, AGM Insured, U.S. Bank NA SPA) ø		0.72			6-1-2042		48,000,000		48,000,000		0.89
Other securities									49,714,518		0.92
									97,714,518		1.81
Texas: 8.50%
Donna TX International Toll Bridge (Transportation Revenue)		6.25			2-15-2037		21,850,000		23,012,857		0.43
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		25,885,000		26,126,766		0.48
North TX Tollway Authority Series F (Transportation Revenue)		5.75			1-1-2038		32,000,000		33,473,280		0.62
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		27,715,000		27,962,495		0.52

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

12 Wells Fargo Ultra Short-Term Municipal Income Fund Summary portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Texas (continued)
Port Arthur TX Navigation District (Resource Recovery Revenue) ø		0.85	%		12-1-2039 to 11-1-2040	$	38,600,000	$	38,600,000		0.72	%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series B (Resource Recovery Revenue) ø		0.85			4-1-2040		26,530,000		26,530,000		0.49
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) 144Aø		0.95			11-15-2029		30,400,000		30,400,000		0.56
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Tax Revenue) ±		1.08			4-1-2032		24,000,000		23,999,040		0.44
Other securities									227,808,415		4.24
									457,912,853		8.50
Utah: 0.24%
Other securities									12,725,000		0.24
Vermont: 0.03%
Other securities									1,568,174		0.03
Virgin Islands: 0.17%
Other securities									9,434,786		0.17
Virginia: 0.78%
Chesapeake VA EDA Electric and Power Company Series 2008A (Utilities Revenue) ±		1.75			2-1-2032		30,000,000		30,033,300		0.56
Other securities									11,739,921		0.22
									41,773,221		0.78
Washington: 0.40%
Other securities									21,516,548		0.40
West Virginia: 0.90%
West Virginia EDA Appalachian Power Company Mountaineer Project Series A (Utilities Revenue) ø		1.00			2-1-2036		25,000,000		25,000,000		0.47
Other securities									23,268,164		0.43
									48,268,164		0.90
Wisconsin: 0.86%
Other securities									46,495,630		0.86
Wyoming: 0.48%
Sweetwater County WY PCR Refunding Bond PacifiCorp Project Series A (Industrial Development Revenue) ø		0.85			1-1-2017		26,000,000		26,000,000		0.48
Total Municipal Obligations (Cost $5,142,914,809)									5,104,835,011		94.77
Other: 4.25%
Branch Banking & Trust Municipal Investment Trust Various States		1.23-1.78			6-30-2017 to 12-31-2019		20,040,000		20,034,898		0.37
Branch Banking & Trust Municipal Investment Trust Various States Class B ±144A§		1.38			12-31-2017		33,725,000		33,725,337		0.63
Nuveen AMT-Free Quality Municipal Income Fund Preferred Share ±144A§		0.81			6-1-2040		35,000,000		35,000,000		0.65

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

Summary portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value			Percent of net assets
Other (continued)
Nuveen Enhanced Municipal Credit Opportunities Fund Institutional MuniFund Term Preferred Shares ±144A		1.47	%		10-1-2017	$	59,000,000	$	58,786,420			1.09	%
Nuveen Texas Quality Municipal Income Fund Institutional MuniFund Term Preferred Shares ±144A		1.56			11-1-2018		25,000,000		24,998,000			0.46
Other securities									56,288,136			1.05
Total Other (Cost $229,141,648)									228,832,791			4.25
	Yield					Shares
Short-Term Investments: 1.88%
Investment Companies: 1.87%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.67					100,839,385		100,899,889			1.87
						Principal
U.S. Treasury Securities: 0.01%
U.S. Treasury Bill (z)		0.50			3-16-2017	$	250,000		249,750			0.01
Total Short-Term Investments (Cost $101,131,856)									101,149,639			1.88
Total investments in securities (Cost $5,478,121,538) *									5,439,709,985			100.99	%
Other assets and liabilities, net									(53,119,183	)		(0.99	)
Total net assets								$	5,386,590,802			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.

(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.

§ 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.

* Cost for federal income tax purposes is $5,478,051,225 and unrealized gains (losses) consists of:

Gross unrealized gains	$	2,597,840
Gross unrealized losses		(40,939,080	)
Net unrealized losses	$	(38,341,240	)

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

14 Wells Fargo Ultra Short-Term Municipal Income Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $5,377,239,422)	$	5,338,810,096
In affiliated securities, at value (cost $100,882,116)		100,899,889
Total investments, at value (cost $5,478,121,538)		5,439,709,985
Cash		1,152
Receivable for investments sold		11,640,000
Receivable for Fund shares sold		36,320,259
Receivable for interest		27,747,268
Prepaid expenses and other assets		357,506
Total assets		5,515,776,170
Liabilities
Distributions payable		1,116,420
Payable for investments purchased		40,402,073
Payable for Fund shares redeemed		85,127,969
Management fee payable		1,290,092
Distribution fee payable		19,333
Administration fees payable		504,226
Accrued expenses and other liabilities		725,255
Total liabilities		129,185,368
Total net assets	$	5,386,590,802
NET ASSETS CONSIST OF
Paid-in capital	$	5,425,550,250
Overdistributed net investment income		(485,748	)
Accumulated net realized losses on investments		(62,147	)
Net unrealized losses on investments		(38,411,553	)
Total net assets	$	5,386,590,802
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,159,323,384
Shares outstanding – Class A1		121,372,669
Net asset value per share – Class A		$9.55
Maximum offering price per share – Class A2		$9.74
Net assets – Class C	$	28,278,296
Shares outstanding – Class C1		3,013,091
Net asset value per share – Class C		$9.39
Net assets – Administrator Class	$	1,414,519,027
Shares outstanding – Administrator Class1		148,123,740
Net asset value per share – Administrator Class		$9.55
Net assets – Institutional Class	$	2,784,470,095
Shares outstanding – Institutional Class1		291,472,939
Net asset value per share – Institutional Class		$9.55

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/98.00 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

Statement of operations—six months ended December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 15

Investment income
Interest	$	33,138,964
Income from affiliated securities		219,741
Total investment income		33,358,705
Expenses
Management fee		9,303,152
Administration fees
Class A		978,190
Class C		24,490
Administrator Class		300,897
Institutional Class		1,543,177
Shareholder servicing fees
Class A		1,528,421
Class C		38,265
Administrator Class		751,765
Distribution fee
Class C		114,796
Custody and accounting fees		148,223
Professional fees		23,460
Registration fees		113,945
Shareholder report expenses		6,445
Trustees’ fees and expenses		11,632
Other fees and expenses		19,899
Total expenses		14,906,757
Less: Fee waivers and/or expense reimbursements		(1,650,668	)
Net expenses		13,256,089
Net investment income		20,102,616
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(311,007	)
Affiliated securities		(33,233	)
Futures transactions		(285,494	)
Net realized losses on investments		(629,734	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(43,357,953	)
Affiliated securities		17,773
Futures transactions		561,022
Net change in unrealized gains (losses) on investments		(42,779,158	)
Net realized and unrealized gains (losses) on investments		(43,408,892	)
Net decrease in net assets resulting from operations	$	(23,306,276	)

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

16 Wells Fargo Ultra Short-Term Municipal Income Fund Statement of changes in net assets

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	20,102,616					$	32,781,749
Net realized gains (losses) on investments					(629,734	)					845,987
Net change in unrealized gains (losses) on investments					(42,779,158	)					9,622,472
Net increase (decrease) in net assets resulting from operations					(23,306,276	)					43,250,208
Distributions to shareholders from
Net investment income
Class A					(3,035,785	)					(4,371,917	)
Administrator Class					(1,725,720	)					(1,193,229	)
Institutional Class					(15,340,839	)					(26,850,434	)
Investor Class					N/A						(365,755	)1
Net realized gains
Class A					(99,614	)					(208,960	)
Class C					(2,471	)					(6,313	)
Administrator Class					(112,414	)					(41,422	)
Institutional Class					(253,274	)					(645,494	)
Total distributions to shareholders					(20,570,117	)					(33,683,524	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		24,207,463			232,321,372			76,129,489			732,473,920
Class C		171,744			1,615,873			206,402			1,957,767
Administrator Class		143,443,897			1,376,764,207			23,903,367			229,922,937
Institutional Class		206,701,863			1,985,451,047			381,558,709			3,670,300,026
Investor Class		N/A			N/A			1,404,939	1		13,526,753	1
					3,596,152,499						4,648,181,403
Reinvestment of distributions
Class A		312,588			2,999,696			459,511			4,421,270
Class C		222			2,082			554			5,255
Administrator Class		181,606			1,737,777			127,969			1,231,259
Institutional Class		990,858			9,515,403			1,790,146			17,224,273
Investor Class		N/A			N/A			28,543	1		274,869	1
					14,254,958						23,156,926
Payment for shares redeemed
Class A		(28,825,258	)		(276,459,261	)		(50,965,659	)		(490,321,000	)
Class C		(520,473	)		(4,909,860	)		(1,301,768	)		(12,342,895	)
Administrator Class		(18,992,299	)		(182,054,587	)		(34,686,573	)		(333,645,141	)
Institutional Class		(338,136,283	)		(3,245,942,869	)		(370,417,838	)		(3,562,999,025	)
Investor Class		N/A			N/A			(41,749,601	)1		(402,219,702	)1
					(3,709,366,577	)					(4,801,527,763	)
Net decrease in net assets resulting from capital share transactions					(98,959,120	)					(130,189,434	)
Total decrease in net assets					(142,835,513	)					(120,622,750	)
Net assets
Beginning of period					5,529,426,315						5,650,049,065
End of period				$	5,386,590,802					$	5,529,426,315
Overdistributed net investment income				$	(485,748	)				$	(486,020	)

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

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

Financial highlights Wells Fargo Ultra Short-Term Municipal Income Fund 17

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.63			$9.61			$9.64			$9.64			$9.64			$9.64
Net investment income		0.02			0.04			0.02			0.04			0.04			0.10
Net realized and unrealized gains (losses) on investments		(0.08	)		0.02			(0.03	)		0.00	2		(0.02	)		0.00	2
Total from investment operations		(0.06	)		0.06			(0.01	)		0.04			0.02			0.10
Distributions to shareholders from
Net investment income		(0.02	)		(0.04	)		(0.02	)		(0.04	)		(0.02	)		(0.10	)
Net realized gains		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.02	)		(0.04	)		(0.02	)		(0.04	)		(0.02	)		(0.10	)
Net asset value, end of period		$9.55			$9.63			$9.61			$9.64			$9.64			$9.64
Total return3		(0.57	)%		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	%		0.75	%		0.76	%
Net expenses		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%
Net investment income		0.50	%		0.38	%		0.23	%		0.34	%		0.32	%		0.95	%
Supplemental data
Portfolio turnover rate		28	%4		41	%4		44	%4		51	%4		65	%4		111	%
Net assets, end of period (000s omitted)		$1,159,323			$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. Returns for periods of less than one year are not annualized.

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

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

18 Wells Fargo Ultra Short-Term Municipal Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.47			$9.49			$9.58			$9.62			$9.64			$9.64
Net investment income (loss)		(0.01	)2		(0.04	)2		(0.11	)		(0.04	)2		(0.06	)		0.02
Net realized and unrealized gains (losses) on investments		(0.07	)		0.02			0.02			0.00	3		0.04			0.00	3
Total from investment operations		(0.08	)		(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			0.00			(0.02	)
Net realized gains		(0.00	)3		(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	)3		0.00			(0.02	)
Net asset value, end of period		$9.39			$9.47			$9.49			$9.58			$9.62			$9.64
Total return4		(0.84	)%		(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	%		1.50	%		1.51	%
Net expenses		1.42	%		1.42	%		1.42	%		1.42	%		1.42	%		1.42	%
Net investment income (loss)		(0.25	)%		(0.37	)%		(0.52	)%		(0.41	)%		(0.43	)%		0.23	%
Supplemental data
Portfolio turnover rate		28	%5		41	%5		44	%5		51	%5		65	%5		111	%
Net assets, end of period (000s omitted)		$28,278			$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. Returns for periods of less than one year are not annualized.

⁵  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

Financial highlights Wells Fargo Ultra Short-Term Municipal Income Fund 19

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
ADMINISTRATOR CLASS				2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.63			$9.61			$9.64			$9.64			$9.64			$9.64
Net investment income		0.03	2		0.04			0.03			0.04			0.04			0.10
Net realized and unrealized gains (losses) on investments		(0.08	)		0.02			(0.03	)		0.00	3		0.00	3		0.00	3
Total from investment operations		(0.05	)		0.06			0.00			0.04			0.04			0.10
Distributions to shareholders from
Net investment income		(0.03	)		(0.04	)		(0.03	)		(0.04	)		(0.04	)		(0.10	)
Net realized gains		(0.00	)3		(0.00	)3		(0.00	)3		(0.00	)3		0.00			0.00
Total distributions to shareholders		(0.03	)		(0.04	)		(0.03	)		(0.04	)		(0.04	)		(0.10	)
Net asset value, end of period		$9.55			$9.63			$9.61			$9.64			$9.64			$9.64
Total return4		(0.54	)%		0.68	%		0.00	%		0.42	%		0.38	%		1.03	%
Ratios to average net assets (annualized)
Gross expenses		0.69	%		0.68	%		0.69	%		0.69	%		0.69	%		0.68	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.57	%		0.45	%		0.30	%		0.41	%		0.39	%		0.95	%
Supplemental data
Portfolio turnover rate		28	%5		41	%5		44	%5		51	%5		65	%5		111	%
Net assets, end of period (000s omitted)		$1,414,519			$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  Calculated based upon average shares outstanding

³  Amount is less than $0.005.

⁴  Returns for periods of less than one year are not annualized.

⁵  Portfolio turnover rate excludes variable rate demand notes which may account for changes from rates reported in prior periods.

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

20 Wells Fargo Ultra Short-Term Municipal Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
INSTITUTIONAL CLASS				2016			20151			20141			20131			20121
Net asset value, beginning of period		$9.63			$9.61			$9.64			$9.64			$9.64			$9.64
Net investment income		0.04			0.07			0.05			0.06			0.06			0.12
Net realized and unrealized gains (losses) on investments		(0.08	)		0.02			(0.03	)		0.00	2		0.00	2		0.00	2
Total from investment operations		(0.04	)		0.09			0.02			0.06			0.06			0.12
Distributions to shareholders from
Net investment income		(0.04	)		(0.07	)		(0.05	)		(0.06	)		(0.06	)		(0.12	)
Net realized gains		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		0.00			0.00
Total distributions to shareholders		(0.04	)		(0.07	)		(0.05	)		(0.06	)		(0.06	)		(0.12	)
Net asset value, end of period		$9.55			$9.63			$9.61			$9.64			$9.64			$9.64
Total return3		(0.42	)%		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	%		0.42	%		0.43	%
Net expenses		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%
Net investment income		0.80	%		0.68	%		0.54	%		0.64	%		0.61	%		1.23	%
Supplemental data
Portfolio turnover rate		28	%4		41	%4		44	%4		51	%4		65	%4		111	%
Net assets, end of period (000s omitted)		$2,784,470			$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  Returns for periods of less than one year are not annualized.

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

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

Notes to financial statements (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 21

1. ORGANIZATION

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

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

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

22 Wells Fargo Ultra Short-Term Municipal Income Fund Notes to financial statements (unaudited)

primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

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

Security transactions and income recognition

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

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

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

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

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

Notes to financial statements (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 23

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 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	$	4,892,544	$	0	$	4,892,544
Municipal obligations		0		5,104,835,011		0		5,104,835,011
Other		0		228,832,791		0		228,832,791
Short-term investments
Investment companies		100,899,889		0		0		100,899,889
U.S. Treasury securities		249,750		0		0		249,750
Total assets	$	101,149,639	$	5,338,560,346	$	0	$	5,439,709,985

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. 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 six months ended December 31, 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

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, 2017 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.67% for Class A shares, 1.42% for Class C shares, 0.60% for Administrator Class shares, and 0.37% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

24 Wells Fargo Ultra Short-Term Municipal Income Fund Notes to financial statements (unaudited)

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $7 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,129 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $2,689 from the sale of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $1,304,477,195 and $1,136,931,501, 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 six months ended December 31, 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 December 31, 2016, the Fund did not have any open futures contracts. The Fund had an average notional amount of $13,384,958 in short futures contracts during the six months ended December 31, 2016.

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

8. INDEMNIFICATION

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

Notes to financial statements (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 25

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

26 Wells Fargo Ultra Short-Term Municipal Income Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, 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 Ultra Short-Term Municipal Income Fund 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 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 Ultra Short-Term Municipal Income 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbreviations Wells Fargo Ultra Short-Term Municipal Income 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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

300488 02-17 SA258/SAR258 12-16

Semi-Annual Report

December 31, 2016

Wells Fargo Wisconsin Tax-Free Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	18
Other information	22
List of abbreviations	25

The views expressed and any forward-looking statements are as of December 31, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

2 Wells Fargo Wisconsin Tax-Free Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Wisconsin Tax-Free Fund for the six-month period that ended December 31, 2016. The Federal Reserve (Fed) raised the federal funds rate in December by 0.25%. Municipal bond yields rose sharply in the fourth quarter. The Bloomberg Barclays Municipal Bond Index,¹ a broad measure tracking investment-grade municipal bonds, lost 3.91% during the six-month reporting period.

Municipal bond yields rose during the reporting period.

The municipal market reversed course in the second half of 2016, with yields increasing and prices declining. Initially the sell-off was driven by negative supply and demand trends, also known as technical factors. By the fourth quarter, fund flows turned negative (reversing a trend of 54 weeks of positive flows) and municipal bond supply increased. These deteriorating technical factors, along with the expectation of an expansionary fiscal policy and lower tax rates under the new administration, drove market volatility; credit spreads widened and the yield curve steepened as the market sold-off.

Stronger economic indicators drove monetary policy.

On December 14, the Fed hiked the short-term interest rate by 0.25% to reach a target range of 0.50% to 0.75%. This was the second rate increase in more than 10 years, with the Fed citing job gains and lower than expected unemployment of 4.6%. The Fed confirmed the continuation of an accommodative monetary policy to support a stronger labor market and reiterated its long-term objective of a 2% inflation rate, which increased slightly during the fourth quarter but fell short of the benchmark. The Fed expressed confidence in the economy’s progress and expects this positive trajectory to continue. Both sentiments helped to bolster the Fed’s expectation of three additional rate increases during 2017.

Meanwhile, the Bank of England continued its quantitative-easing program and lowered the official bank rate to 0.25% in August 2016. The Bank of Japan maintained its negative interest rate put in place earlier in the year, and in September announced an interest rate target for 10-year government bonds—keeping the yield at zero—as it struggles to accelerate economic growth. In December, the European Central Bank announced that it will extend its quantitative-easing program and continue purchasing large amounts of eurozone corporate and government debt each month through December 2017.

U.S. economic data released during the fourth quarter showed that U.S. real gross domestic product increased at an annual 3.5% rate in the third quarter, the largest increase since mid-2014. Business investment by U.S. companies was mixed, with a 12.0% increase in structures and 4.5% decrease in equipment over the prior quarter on an annualized basis. Consumer confidence hit pre-recession levels for the first time in November, and increased again in December. The dollar strengthened during the quarter’s post-election period.

Supply and demand trends reflected volatility of municipals.

Demand for municipal debt, as measured by cash flows to municipal bond mutual funds, was negative for the reporting period. There were $19 billion of inflows from July through October, but a sharp reversal occurred post-election, with $26 billion of redemptions in the last two months of the year. This followed a

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

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

noteworthy 54 consecutive weeks of inflows. On the supply side, August through October saw 30-year record-breaking volumes each month; both refundings and new issuance were up. These levels were attributed to deals pulled forward in anticipation of higher interest rates. Not surprisingly, December volume was down 25% year-over-year to $19 billion. Total municipal bond issuance for the period was $219 billion; new issuance outpaced refundings by $18 billion.

Municipal credit fundamentals were solid.

Overall, municipal credit was sound for the period. The most significant development was the election of Ricardo Rossello as governor of the Commonwealth of Puerto Rico. In the past, prices of Puerto Rico bonds reflected negative credit considerations, including defaults on its securities in 2015 and early 2016, but recent events point to a potentially more positive fiscal environment. Rossello campaigned, in part, on a platform that included promises to ultimately pay 100% of interest due on Puerto Rico’s outstanding municipal debt, negotiate with bondholders, and ration government expenditures. This stance is a major shift from his predecessor who focused on a bankruptcy mechanism.

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

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

Periods of uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

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 December 31, 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		(4.76	)		1.54		2.99		(0.25	)		2.49		3.47		0.93		0.70
Class C (WWTCX)	12-26-2002		(2.00	)		1.72		2.68		(1.00	)		1.72		2.68		1.68		1.45
Institutional Class (WWTIX)	10-31-2016		–			–		–		(0.22	)		2.49		3.47		0.60		0.52
Bloomberg Barclays Municipal Bond Index4	–		–			–		–		0.25			3.28		4.25		–		–
Bloomberg Barclays Wisconsin Municipal Bond Index5	–		–			–		–		0.04			2.96		4.31		–		–

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 Wisconsin and Puerto Rico 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 Wisconsin Tax-Free Fund 5

Effective maturity distribution as of December 31, 2016⁶

Credit quality as of December 31, 2016⁷

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares (except during those periods in which expenses of Class A shares would have been higher than those of the former Investor Class shares, no such adjustment is reflected). If these expenses had not been included, returns would be higher. Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Class A shares, and is not adjusted to reflect Institutional Class expenses. If these expenses had been included, returns for 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, 2017, 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 Bloomberg Barclays Municipal Bond Index (formerly known as 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 Bloomberg Barclays Wisconsin Municipal Bond Index (formerly known as Barclays Wisconsin Municipal Bond Index) is the Wisconsin component of the Bloomberg Barclays Municipal Bond Index. You cannot invest directly in an index.

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 Wisconsin Tax-Free Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from July 1, 2016 to December 31, 2016.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 7-1-2016		Ending account value 12-31-2016		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	970.63	$	3.47		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62	$	3.56		0.70	%
Class C
Actual	$	1,000.00	$	966.97	$	7.17		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.85	$	7.35		1.45	%
Institutional Class
Actual	$	1,000.00	$	970.92	$	2.58		0.52	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.52	$	2.64		0.52	%

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 99.26%
Guam: 15.15%
Guam Government Business Privilege Tax Series A (Tax Revenue)		5.25	%		1-1-2036	$	2,000,000	$	2,124,440
Guam Government Business Privilege Tax Series B1 (Tax Revenue)		5.00			1-1-2042		500,000		520,395
Guam Government Business Privilege Tax Series D (Tax Revenue)		5.00			11-15-2021		2,250,000		2,483,753
Guam Government Business Privilege Tax Series D (Tax Revenue)		5.00			11-15-2022		1,500,000		1,677,480
Guam Government Limited Obligation Bonds Section 30 Series A (Tax Revenue)		5.00			12-1-2019		1,500,000		1,617,210
Guam Government Limited Obligation Bonds Section 30 Series A (Tax Revenue)		5.00			12-1-2021		2,000,000		2,217,340
Guam Government Limited Obligation Bonds Section 30 Series A (Miscellaneous Revenue)		5.38			12-1-2024		1,000,000		1,105,420
Guam Government Limited Obligation Bonds Section 30 Series A (Miscellaneous Revenue)		5.50			12-1-2019		1,000,000		1,112,300
Guam Government Series A (GO Revenue)		7.00			11-15-2039		2,000,000		2,301,320
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.00			7-1-2021		300,000		328,272
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.25			7-1-2025		740,000		829,126
Guam Government Waterworks Authority Water & Wastewater System Project (Water & Sewer Revenue)		5.00			7-1-2019		650,000		696,222
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2019		100,000		107,951
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2020		100,000		109,557
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2021		2,500,000		2,725,625
Guam International Airport Authority Series C (Airport Revenue, AGM Insured)		6.13			10-1-2043		1,500,000		1,702,080
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2019		1,575,000		1,696,039
Guam Power Authority Series A (Utilities Revenue, AGM Insured)		5.00			10-1-2020		500,000		546,645
									23,901,175
Illinois: 5.67%
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		1,000,000		737,460
Chicago IL Park District Special Recreation Activity Series E (GO Revenue)		5.00			11-15-2027		1,000,000		1,127,640
Chicago IL Refunding Bond (Tax Revenue)		5.00			1-1-2034		2,000,000		2,073,380
Chicago IL Series A (GO Revenue)		5.00			1-1-2027		1,700,000		1,641,605
Chicago IL Waterworks Second Lien (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2020		500,000		525,750
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		250,000		260,455
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		3,500,000		2,575,230
									8,941,520
Michigan: 0.14%
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2021		215,000		215,181
New Jersey: 1.89%
New Jersey EDA Series EE (Miscellaneous Revenue)		5.00			9-1-2023		935,000		969,801
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		2,000,000		954,060
New Jersey TTFA Federal Highway Reimbursement Series A1 (Transportation Revenue)		5.00			6-15-2030		1,000,000		1,064,310
									2,988,171
Ohio: 1.29%
Akron OH Bath Copley Joint Township Hospital District Summa Health System Obligated Group (Health Revenue)		5.25			11-15-2041		1,500,000		1,616,100
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75			12-1-2023		1,000,000		418,470
									2,034,570

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

8 Wells Fargo Wisconsin Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Puerto Rico: 6.55%
Puerto Rico Electric Power Authority Refunding Bond Series LL (Utilities Revenue, National Insured)		5.50	%		7-1-2017	$	1,000,000	$	1,017,880
Puerto Rico HFA Subordinated Capital Fund Modernization Program Refunding Bond (Housing Revenue, HUD Insured)		5.50			12-1-2018		600,000		641,454
Puerto Rico Highway & Transportation Authority Refunding Bond Series L (Transportation Revenue, AGC Insured)		5.25			7-1-2019		1,000,000		1,048,930
Puerto Rico Highway & Transportation Authority Refunding Bond Series L (Transportation Revenue, BHAC/FGIC Insured)		5.25			7-1-2021		300,000		330,759
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital Auxilio Mutuo Obligated Group Series A (Health Revenue)		5.00			7-1-2017		1,000,000		1,013,070
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		1,412,249
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		1,560,045
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Authority Hospital De La Concepcion Series A (Health Revenue)		6.50			11-15-2020		20,000		20,350
Puerto Rico Municipal Finance Authority Series C (Tobacco Revenue, BHAC/FGIC Insured)		5.50			7-1-2020		3,000,000		3,275,790
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		20,000
									10,340,527
Virgin Islands: 8.37%
Virgin Islands PFA (Miscellaneous Revenue) 144A		5.00			9-1-2020		750,000		803,955
Virgin Islands PFA Gross Receipts Series C (Tax Revenue)		5.00			10-1-2017		2,240,000		2,236,394
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, National Insured)		4.00			10-1-2020		450,000		450,833
Virgin Islands PFA Gross Receipts Taxes Loan Notes (Tax Revenue, AGM Insured)		4.00			10-1-2022		3,000,000		3,127,560
Virgin Islands PFA Matching Fund Loan Notes Senior Lien Series B (Tobacco Revenue, AGM Insured)		5.00			10-1-2025		2,000,000		2,142,180
Virgin Islands PFA Series A (Tobacco Revenue)		5.00			10-1-2018		4,505,000		4,437,290
Virgin Islands PFA Unrefunded Balance Bonds Series A (Miscellaneous Revenue)		7.30			10-1-2018		10,000		10,700
									13,208,912
Wisconsin: 60.20%
Blue Mounds WI CDA Series A (Miscellaneous Revenue)		1.25			4-1-2017		50,000		50,016
Brookfield WI Community Development & Redevelopment Authority Series A (Miscellaneous Revenue)		1.15			6-1-2018		550,000		547,993
Brookfield WI Community Development & Redevelopment Authority Series A (Miscellaneous Revenue)		1.35			6-1-2019		750,000		743,640
Cudahy WI CDA Series A (Miscellaneous Revenue)		1.20			6-1-2017		170,000		170,070
Cudahy WI CDA Series A (Miscellaneous Revenue)		1.50			6-1-2018		200,000		200,106
Cudahy WI CDA Series C (Miscellaneous Revenue)		0.70			6-1-2017		250,000		249,790
Cudahy WI CDA Series C (Miscellaneous Revenue)		0.90			6-1-2018		200,000		198,940
Cudahy WI CDA Series C (Miscellaneous Revenue)		1.05			6-1-2019		125,000		123,510
Glendale WI CDA Bayshore Public Parking (Miscellaneous Revenue)		1.50			10-1-2019		300,000		297,987
Glendale WI CDA Series A (Miscellaneous Revenue)		3.50			10-1-2017		1,635,000		1,660,964
Glendale WI CDA Series A (Miscellaneous Revenue)		3.50			10-1-2018		1,700,000		1,753,329
Green Bay WI Housing Authority University Village Housing Incorporated (Education Revenue)		4.38			4-1-2022		200,000		208,472

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

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Green Bay WI Housing Authority University Village Housing Incorporated (Education Revenue)		5.00	%		4-1-2030	$	1,410,000	$	1,503,934
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		5.50			12-1-2023		250,000		270,198
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		5.65			12-1-2026		100,000		108,363
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		6.00			12-1-2029		260,000		283,470
Green Bay WI RDA Bellin Memorial Hospital Incorporated (Health Revenue)		6.15			12-1-2032		420,000		459,110
Kaukauna WI RDA (Miscellaneous Revenue)		3.75			6-1-2032		850,000		855,483
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2019		50,000		52,603
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2020		100,000		106,360
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2021		310,000		331,660
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2022		235,000		252,914
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2023		200,000		215,842
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2025		425,000		463,293
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2028		425,000		452,523
Kaukauna WI RDA (Miscellaneous Revenue)		4.00			6-1-2035		900,000		905,742
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2023		150,000		163,401
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2025		475,000		516,900
Madison WI CDA Wisconsin Alumni Research Foundation (Education Revenue)		5.00			10-1-2039		5,000,000		5,397,550
Milwaukee WI RDA Milwaukee Public Schools Series A (Miscellaneous Revenue)		5.00			11-15-2027		1,020,000		1,166,829
Milwaukee WI RDA Milwaukee Public Schools Series A (Miscellaneous Revenue)		5.00			11-15-2028		1,000,000		1,140,090
Milwaukee WI RDA Milwaukee Public Schools Series A (Miscellaneous Revenue)		5.00			11-15-2031		750,000		848,573
Milwaukee WI RDA Neighborhood Schools Series A (Miscellaneous Revenue, Ambac Insured)		3.85			8-1-2020		200,000		202,312
Milwaukee WI RDA Neighborhood Schools Series A (Miscellaneous Revenue, Ambac Insured)		3.90			8-1-2021		405,000		409,305
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue, Ambac Insured)		4.00			8-1-2023		300,000		302,754
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2019		915,000		988,154
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2020		3,100,000		3,412,666
Milwaukee WI RDA Public Schools Series A (Miscellaneous Revenue)		5.00			8-1-2021		3,330,000		3,721,408
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.25			8-1-2043		2,100,000		2,260,293
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		3.15			8-1-2017		50,000		50,557
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		4.60			8-1-2024		870,000		913,361
Milwaukee WI RDA Summer Festival Project (Miscellaneous Revenue)		5.00			8-1-2030		3,000,000		3,195,750
Milwaukee WI RDA Wisconsin Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.80			12-1-2038		2,105,000		2,105,000
Milwaukee WI Series B6 (GO Revenue)		2.00			4-1-2021		175,000		176,211
Milwaukee WI Series B6 (GO Revenue)		3.00			4-1-2024		570,000		595,245
Milwaukee WI Series B6 (GO Revenue)		5.00			4-1-2022		350,000		401,867
Milwaukee WI Series B6 (GO Revenue)		5.00			4-1-2023		580,000		676,129
Milwaukee WI Series B6 (GO Revenue)		5.00			4-1-2025		550,000		654,209
Monroe WI RDA Monroe Clinic Incorporated (Health Revenue)		5.50			2-15-2029		1,000,000		1,086,470
Monroe WI RDA Monroe Clinic Incorporated (Health Revenue)		5.88			2-15-2039		1,570,000		1,718,051
North Fond Du Lac WI CDA (Miscellaneous Revenue)		1.30			12-1-2017		50,000		49,883
North Fond Du Lac WI CDA (Miscellaneous Revenue)		1.70			12-1-2018		50,000		49,789
Oostburg WI CDA Series A (Miscellaneous Revenue)		1.75			5-1-2018		50,000		50,057
Pittsville WI CDA Series A (Miscellaneous Revenue)		1.65			6-1-2017		100,000		100,007
Platteville WI RDA University of Wisconsin Platteville Real Estate (Education Revenue)		5.00			7-1-2022		1,000,000		1,060,610
Prairie du Chien WI RDA Series B (Miscellaneous Revenue)		1.65			9-1-2020		200,000		199,392
Southeast Wisconsin Professional Baseball Park District (Miscellaneous Revenue, National Insured) ¤		0.00			12-15-2017		500,000		494,405

The accompanying notes are an integral part of these financial statements.

10 Wells Fargo Wisconsin Tax-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50	%		12-15-2017	$	1,765,000	$	1,835,847
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2018		380,000		410,807
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2019		100,000		111,240
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2021		2,000,000		2,333,500
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2023		1,600,000		1,899,776
Southeast Wisconsin Professional Baseball Park District Series A (Tax Revenue, National Insured)		5.50			12-15-2026		2,435,000		2,884,331
Sun Prairie WI CDA Tax Incremental #6 & 7 (Miscellaneous Revenue)		3.80			2-1-2018		300,000		300,765
Sun Prairie WI CDA Tax Incremental #6 & 7 (Miscellaneous Revenue)		4.00			2-1-2019		220,000		220,598
Sun Prairie WI CDA Tax Incremental #6 & 7 (Miscellaneous Revenue)		4.50			2-1-2022		250,000		250,790
Warrens WI CDA Economic Improvements (Miscellaneous Revenue)		5.10			11-1-2020		70,000		54,233
Warrens WI CDA Interim Workout Extension (Tax Revenue)		3.70			11-1-2029		181,751		94,456
Waukesha WI Housing Authority Preservation Corporation Project (Housing Revenue, Johnson Bank LOC) ø		1.80			12-1-2042		1,500,000		1,500,000
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		2.65			12-1-2017		335,000		339,355
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.00			12-1-2023		150,000		155,889
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.20			12-1-2024		150,000		156,617
Waukesha WI RDA Welldall Manufacturing Incorporated Project (Industrial Development Revenue, U.S. Bank NA LOC)		4.25			12-1-2025		250,000		260,983
Weston WI CDA Series A (Miscellaneous Revenue)		5.25			10-1-2020		720,000		721,692
Wisconsin Center District CAB (Tax Revenue, National Insured) ¤		0.00			12-15-2019		275,000		257,609
Wisconsin Center District CAB (Tax Revenue, AGM Insured) ¤		0.00			12-15-2030		295,000		189,918
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2018		65,000		69,647
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2019		2,000,000		2,198,540
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2023		2,150,000		2,472,457
Wisconsin Center District Junior Dedicated Bond (Tax Revenue, AGM Insured)		5.25			12-15-2027		1,005,000		1,157,690
Wisconsin Center District Junior Dedicated Bond Series A (Tax Revenue)		5.00			12-15-2022		730,000		813,030
Wisconsin Center District Junior Dedicated Bond Series A (Tax Revenue)		5.00			12-15-2030		2,100,000		2,288,097
Wisconsin Center District Milwaukee Arena Project (Tax Revenue)		4.00			12-15-2032		1,100,000		1,152,085
Wisconsin Center District Milwaukee Arena Project (Tax Revenue)		4.00			12-15-2033		920,000		958,263
Wisconsin Center District Milwaukee Arena Project (Tax Revenue)		4.00			12-15-2034		2,000,000		2,071,740
Wisconsin Dells CDA (Miscellaneous Revenue)		4.60			3-1-2025		175,000		175,250
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		3.00			12-1-2019		1,475,000		1,522,466
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		4.00			12-1-2035		1,000,000		1,021,890
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		5.00			12-1-2025		1,500,000		1,726,890
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue)		5.00			12-1-2026		1,740,000		1,991,882
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue, Ambac Insured)		5.50			2-15-2019		25,000		25,684
Wisconsin HEFA Monroe Clinic Incorporated (Health Revenue)		4.00			2-15-2031		900,000		933,903
Wisconsin HEFA Monroe Clinic Incorporated (Health Revenue)		4.00			2-15-2033		550,000		564,938
Wisconsin HEFA Rogers Memorial Hospital Incorporated Series B (Health Revenue)		5.00			7-1-2044		3,250,000		3,415,848
Wisconsin Housing & EDA (Housing Revenue, FHA Insured)		6.10			6-1-2021		60,000		62,777
Wisconsin Housing & EDA AMT Series A (Housing Revenue)		4.63			11-1-2037		25,000		25,007

The accompanying notes are an integral part of these financial statements.

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Wisconsin (continued)
Wisconsin Housing & EDA AMT Series A (Housing Revenue)		4.75	%		5-1-2037	$	260,000	$	260,101
Wisconsin Housing & EDA MFHR Series A (Industrial Development Revenue) ±		4.25			12-1-2035		1,960,000		1,962,979
Wisconsin Housing & EDA President House Project (Housing Revenue, Associated Trust Company NA LOC) ø		0.86			8-1-2046		1,680,000		1,680,000
Wisconsin Housing & EDA Series A (Housing Revenue)		0.80			6-1-2017		50,000		49,959
Wisconsin Housing & EDA Series A (Housing Revenue)		0.90			12-1-2017		50,000		49,907
Wisconsin Housing & EDA Series A (Housing Revenue)		1.15			6-1-2018		55,000		54,922
Wisconsin Housing & EDA Series A (Housing Revenue)		1.25			12-1-2018		55,000		54,883
Wisconsin Housing & EDA Series A (Housing Revenue)		1.55			12-1-2019		55,000		54,825
Wisconsin Housing & EDA Series A (Housing Revenue)		1.95			12-1-2020		55,000		54,886
Wisconsin Housing & EDA Series A (Housing Revenue)		3.00			5-1-2022		100,000		102,390
Wisconsin Housing & EDA Series A (Housing Revenue)		3.00			11-1-2022		125,000		128,154
Wisconsin Housing & EDA Series A (Housing Revenue)		4.05			12-1-2049		800,000		807,680
Wisconsin Housing & EDA Series A (Housing Revenue)		5.75			11-1-2043		2,835,000		2,957,727
Wisconsin Housing & EDA Series C (Housing Revenue)		3.88			11-1-2035		1,000,000		999,300
Wisconsin Oneida Tribe of Indians (Tax Revenue) 144A		5.50			2-1-2021		515,000		556,210
									94,973,953
Total Municipal Obligations (Cost $155,584,699)									156,604,009

Total investments in securities (Cost $155,584,699) *	99.26	%		156,604,009
Other assets and liabilities, net	0.74			1,175,290
Total net assets	100.00	%	$	157,779,299

¤ 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.

(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.

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 $155,582,235 and unrealized gains (losses) consists of:

Gross unrealized gains	$	3,164,633
Gross unrealized losses		(2,142,859	)
Net unrealized gains	$	1,021,774

The accompanying notes are an integral part of these financial statements.

12 Wells Fargo Wisconsin Tax-Free Fund Statement of assets and liabilities—December 31, 2016 (unaudited)

Assets
Investments in unaffiliated securities, at value (cost $155,584,699)	$	156,604,009
Cash		261,760
Receivable for investments sold		10,000
Receivable for Fund shares sold		251,442
Receivable for interest		1,654,229
Prepaid expenses and other assets		39,962
Total assets		158,821,402
Liabilities
Distributions payable		48,948
Payable for Fund shares redeemed		824,737
Management fee payable		17,019
Distribution fee payable		6,975
Administration fees payable		22,976
Accrued expenses and other liabilities		121,448
Total liabilities		1,042,103
Total net assets	$	157,779,299
NET ASSETS CONSIST OF
Paid-in capital	$	156,767,054
Overdistributed net investment income		(10,498	)
Accumulated net realized gains on investments		3,433
Net unrealized gains on investments		1,019,310
Total net assets	$	157,779,299
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	146,846,018
Shares outstanding – Class A1		13,725,699
Net asset value per share – Class A		$10.70
Maximum offering price per share – Class A2		$11.20
Net assets – Class C	$	10,223,134
Shares outstanding – Class C1		955,600
Net asset value per share – Class C		$10.70
Net assets – Institutional Class	$	710,147
Shares outstanding – Institutional Class1		66,386
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—six months ended December 31, 2016 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 13

Investment income
Interest	$	2,508,290
Expenses
Management fee		341,153
Administration fees
Class A		127,511
Class C		8,775
Institutional Class		88	1
Shareholder servicing fees
Class A		199,236
Class C		13,711
Distribution fee
Class C		41,132
Custody and accounting fees		4,865
Professional fees		28,313
Registration fees		33,746
Shareholder report expenses		52,504
Trustees’ fees and expenses		17,968
Other fees and expenses		2,932
Total expenses		871,934
Less: Fee waivers and/or expense reimbursements		(233,981	)
Net expenses		637,953
Net investment income		1,870,337
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		1,201
Net change in unrealized gains (losses) on investments		(6,908,551)
Net realized and unrealized gains (losses) on investments		(6,907,350	)
Net decrease in net assets resulting from operations	$	(5,037,013	)

¹  For the period from October 31, 2016 (commencement of class operations) to December 31, 2016

The accompanying notes are an integral part of these financial statements.

14 Wells Fargo Wisconsin Tax-Free Fund Statement of changes in net assets

	Six months ended December 31, 2016 (unaudited)						Year ended June 30, 2016
Operations
Net investment income				$	1,870,337					$	3,620,411
Net realized gains on investments					1,201						196,798
Net change in unrealized gains (losses) on investments					(6,908,551	)					4,774,120
Net increase (decrease) in net assets resulting from operations					(5,037,013	)					8,591,329
Distributions to shareholders from
Net investment income
Class A					(1,785,630	)					(2,546,869	)
Class C					(81,866	)					(164,380	)
Institutional Class					(2,840	)1					N/A
Investor Class					N/A						(909,162	)2
Net realized gains
Class A					(142,178	)					(46,148	)
Class C					(9,882	)					(3,206	)
Institutional Class					(994	)1					N/A
Total distributions to shareholders					(2,023,390	)					(3,669,765	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		989,960			10,818,118			14,703,085			160,926,790
Class C		61,258			674,845			130,742			1,437,094
Institutional Class		97,954	1		1,054,329	1		N/A			N/A
Investor Class		N/A			N/A			505,794	2		5,498,632	2
					12,547,292						167,862,516
Reinvestment of distributions
Class A		157,758			1,723,387			211,387			2,330,732
Class C		8,218			89,654			15,074			165,617
Institutional Class		349	1		3,730	1		N/A			N/A
Investor Class		N/A			N/A			59,864	2		650,999	2
					1,816,771						3,147,348
Payment for shares redeemed
Class A		(1,798,421	)		(19,576,496	)		(2,737,029	)		(30,185,352	)
Class C		(94,747	)		(1,036,085	)		(173,105	)		(1,899,783	)
Institutional Class		(31,917	)1		(340,403	)1		N/A			N/A
Investor Class		N/A			N/A			(12,142,203	)2		(132,592,719	)2
					(20,952,984	)					(164,677,854	)
Net increase (decrease) in net assets resulting from capital share transactions					(6,588,921	)					6,332,010
Total increase (decrease) in net assets					(13,649,324	)					11,253,574
Net assets
Beginning of period					171,428,623						160,175,049
End of period				$	157,779,299					$	171,428,623
Overdistributed net investment income				$	(10,498	)				$	(10,499	)

¹  For the period from October 31, 2016 (commencement of class operations) to December 31, 2016

²  For the period from July 1, 2015 to October 23, 2015. Effective at the close of business on October 23, 2015, Investor Class shares were converted to Class A shares and are no longer offered by the Fund.

The accompanying notes are an integral part of these financial statements.

Financial highlights Wells Fargo Wisconsin Tax-Free Fund 15

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.16			$10.83			$10.96			$10.86			$11.09			$10.68
Net investment income		0.13			0.25			0.24			0.33			0.27			0.34
Net realized and unrealized gains (losses) on investments		(0.45	)		0.33			(0.02	)		0.18			(0.22	)		0.42
Total from investment operations		(0.32	)		0.58			0.22			0.51			0.05			0.76
Distributions to shareholders from
Net investment income		(0.13	)		(0.25	)		(0.24	)		(0.33	)		(0.27	)		(0.34	)
Net realized gains		(0.01	)		(0.00	)1		(0.11	)		(0.08	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.14	)		(0.25	)		(0.35	)		(0.41	)		(0.28	)		(0.35	)
Net asset value, end of period		$10.70			$11.16			$10.83			$10.96			$10.86			$11.09
Total return2		(2.94	)%		5.44	%		2.07	%		4.80	%		0.46	%		7.19	%
Ratios to average net assets (annualized)
Gross expenses		0.97	%		0.94	%		0.90	%		0.92	%		0.90	%		0.92	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		2.24	%		2.26	%		2.22	%		3.02	%		2.44	%		3.06	%
Supplemental data
Portfolio turnover rate		10	%		16	%		28	%		25	%		31	%		14	%
Net assets, end of period (000s omitted)		$146,846			$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. Returns for periods of less than one year are not annualized.

The accompanying notes are an integral part of these financial statements.

16 Wells Fargo Wisconsin Tax-Free Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended December 31, 2016 (unaudited)			Year ended June 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.16			$10.83			$10.96			$10.86			$11.09			$10.68
Net investment income		0.08			0.17			0.16			0.25			0.19			0.26
Net realized and unrealized gains (losses) on investments		(0.45	)		0.33			(0.02	)		0.18			(0.22	)		0.42
Total from investment operations		(0.37	)		0.50			0.14			0.43			(0.03	)		0.68
Distributions to shareholders from
Net investment income		(0.08	)		(0.17	)		(0.16	)		(0.25	)		(0.19	)		(0.26	)
Net realized gains		(0.01	)		(0.00	)1		(0.11	)		(0.08	)		(0.01	)		(0.01	)
Total distributions to shareholders		(0.09	)		(0.17	)		(0.27	)		(0.33	)		(0.20	)		(0.27	)
Net asset value, end of period		$10.70			$11.16			$10.83			$10.96			$10.86			$11.09
Total return2		(3.30	)%		4.66	%		1.31	%		4.02	%		(0.29	)%		6.40	%
Ratios to average net assets (annualized)
Gross expenses		1.72	%		1.68	%		1.65	%		1.67	%		1.65	%		1.67	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		1.49	%		1.52	%		1.47	%		2.28	%		1.69	%		2.32	%
Supplemental data
Portfolio turnover rate		10	%		16	%		28	%		25	%		31	%		14	%
Net assets, end of period (000s omitted)		$10,223			$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. 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 Wisconsin Tax-Free Fund 17

(For a share outstanding throughout each period)

	Period ended December 31, 2016 (unaudited)1
INSTITUTIONAL CLASS
Net asset value, beginning of period		$10.99
Net investment income		0.05
Net realized and unrealized gains (losses) on investments		(0.28	)
Total from investment operations		(0.23	)
Distributions to shareholders from
Net investment income		(0.05	)
Net realized gains		(0.01	)
Total distributions to shareholders		(0.06	)
Net asset value, end of period		$10.70
Total return2		(2.12	)%
Ratios to average net assets (annualized)
Gross expenses		0.65	%
Net expenses		0.52	%
Net investment income		2.59	%
Supplemental data
Portfolio turnover rate		10	%
Net assets, end of period (000s omitted)		$710

¹  For the period from October 31, 2016 (commencement of class operations) to December 31, 2016

²  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 Wisconsin Tax-Free Fund Notes to financial statements (unaudited)

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo 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 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 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 (unaudited) Wells Fargo Wisconsin Tax-Free Fund 19

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:

∎ Level 1 – quoted prices in active markets for identical securities

∎ Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

∎ Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of December 31, 2016:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Municipal obligations	$	0	$	156,604,009	$	0	$	156,604,009

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At December 31, 2016, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

20 Wells Fargo Wisconsin Tax-Free Fund Notes to financial statements (unaudited)

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 subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.40% and declining to 0.28% as the average daily net assets of the Fund increase. For the six months ended December 31, 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, 2017 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, and 0.52% 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.

During the six months ended December 31, 2016, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $7 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in interest income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,045 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended December 31, 2016, Funds Distributor received $1,374 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.

Notes to financial statements (unaudited) Wells Fargo Wisconsin Tax-Free Fund 21

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended December 31, 2016 were $20,236,551 and $15,110,000, 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 $250,000,000 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 0.25% of the unused balance is allocated to each participating fund. Prior to August 30, 2016, the revolving credit agreement amount was $200,000,000 and the annual commitment fee was equal to 0.20% of the unused balance which was allocated to each participating fund.

For the six months ended December 31, 2016, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territories of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund.

8. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

9. REGULATORY CHANGES

In October 2016, the Securities and Exchange Commission (“SEC”) adopted new rules and forms and amended existing rules and forms (together, “final rules”) intended to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management by open-end mutual funds and exchange-traded funds. The final rules will enhance the quality of information available to investors and will allow the SEC to more effectively collect and use data reported by funds. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in the Fund’s financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017 while the compliance date for the new form types is June 1, 2018 and the compliance date for the liquidity risk management program requirements is December 1, 2018. Management is currently assessing the potential impact of these enhancements and their impact on the financial statement disclosures and reporting requirements.

22 Wells Fargo Wisconsin Tax-Free Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) for the Fund is publicly available on the Fund’s website on a monthly, seven-day or more delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Wisconsin Tax-Free Fund 23

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 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. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. 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 a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

24 Wells Fargo Wisconsin 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.

** Peter Gordon is expected to retire on December 31, 2017.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Andrew Owen3 (Born 1960)	President, since 2017	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo & Company and Head of Affiliated Managaers, Wells Fargo Asset Management, since 2014. Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
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 70 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 70 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.

³  Andrew Owen became President on January 1, 2017.

List of abbrevations Wells Fargo Wisconsin Tax-Free Fund 25

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

300489 02-17 SA259/SAR259 12-16

ITEM 2. CODE OF ETHICS

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

Wells Fargo Intermediate Tax-AMT-Free Fund, Wells Fargo Municipal Bond Fund, and Wells Fargo Ultra Short-Term Municipal Income Fund included a Summary Portfolio of Investments under Item 1. A Portfolio of Investments for each of Wells Fargo Intermediate Tax-AMT-Free Fund, Wells Fargo Municipal Bond Fund, and Wells Fargo Ultra Short-Term Municipal Income Fund are filed under this Item.

A Portfolio of Investments for each series of Wells Fargo Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 98.80%
Alabama: 0.26%
Alabama Public School & College Authority Capital Improvement (Tax Revenue)		5.00	%		12-1-2017	$	2,640,000	$	2,736,598
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		3,325,000		3,462,954
									6,199,552
Alaska: 0.18%
Alaska Railroad Corporation Series A (Miscellaneous Revenue, National Insured)		5.00			8-1-2020		3,245,000		3,322,134
Valdez AK Marine Terminal BP Pipelines Project Series B (Industrial Development Revenue)		5.00			1-1-2021		1,000,000		1,099,470
									4,421,604
Arizona: 1.68%
Arizona Refunding Certificate of Participation (Miscellaneous Revenue)		5.00			9-1-2027		3,040,000		3,553,213
Arizona Sports & Tourism Authority Series A (Tax Revenue)		4.00			7-1-2020		1,365,000		1,435,611
Arizona Sports & Tourism Authority Series A (Tax Revenue)		5.00			7-1-2021		795,000		873,808
Arizona Sports & Tourism Authority Series A (Tax Revenue)		5.00			7-1-2022		1,000,000		1,112,830
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		4.50			7-1-2024		1,575,000		1,781,672
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		4.50			7-1-2025		1,270,000		1,425,639
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		5.00			7-1-2027		420,000		487,855
Maricopa County AZ Elementary School District #28 Kyrene Elementary School Project 2010 Series B (GO Revenue)		5.50			7-1-2029		960,000		1,147,450
McAllister AZ Arizona State University Hassayampa Academic Village Project (Education Revenue)		5.00			7-1-2025		750,000		883,095
Mohave County AZ Kingman Unified School District #20 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2024		4,000,000		4,606,440
Mohave County AZ Kingman Unified School District #20 (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2026		1,175,000		1,369,651
Phoenix AZ (GO Revenue)		5.00			7-1-2026		3,810,000		4,663,669
Phoenix AZ Civic Improvement Corporation Series A (Airport Revenue)		5.00			7-1-2029		5,000,000		5,521,950
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.00			7-1-2021		775,000		786,904
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		5,000,000		5,024,350
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2027		450,000		516,744
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2028		700,000		800,765
San Luis AZ Pledged Excise Tax Series A (Tax Revenue, Build America Mutual Assurance Company Insured)		5.00			7-1-2034		3,680,000		4,116,117
									40,107,763
California: 9.19%
Acalanes CA Union High School District Refunding Bonds (GO Revenue)		5.00			8-1-2017		2,070,000		2,119,494
Alameda CA Corridor Transportation Authority CAB Subordinated Lien Prerefunded Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		4,220,000		4,114,458
Alameda CA Corridor Transportation Authority CAB Subordinated Lien Unrefunded Series A (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2018		1,350,000		1,307,340
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2039		2,500,000		2,762,800

2 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Bay Area CA Toll Authority Toll Bridge Series A (Transportation Revenue) ±		1.97	%		4-1-2036	$	9,810,000	$	9,847,474
California (GO Revenue)		5.25			3-1-2024		5,000,000		5,542,350
California (GO Revenue)		5.25			3-1-2030		1,440,000		1,586,578
California (GO Revenue)		6.00			3-1-2033		2,510,000		2,838,408
California Municipal Finance Authority (Utilities Revenue)		5.00			10-1-2025		1,500,000		1,809,465
California Public Works Board Department of Corrections Project Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2019		1,675,000		1,776,187
California Public Works Board Department of General Services Buildings 8 & 9A (Miscellaneous Revenue)		6.25			4-1-2034		2,750,000		3,047,633
California Public Works Board Various Judicial Council Project Series D (Miscellaneous Revenue)		5.25			12-1-2026		1,000,000		1,143,040
California Public Works University of California Board of Regents Series G (Miscellaneous Revenue)		5.00			12-1-2030		12,110,000		13,871,036
California Statewide CDA Series A (Education Revenue)		6.90			8-1-2031		1,915,000		2,156,616
California Statewide CDA Series C (Health Revenue)		5.25			8-15-2031		3,000,000		3,417,210
California Various Purposes (GO Revenue)		5.00			8-1-2030		1,500,000		1,772,955
California Various Purposes (GO Revenue)		6.00			4-1-2038		8,055,000		8,791,871
Cerritos CA Community College District Series D (GO Revenue) ¤		0.00			8-1-2025		1,800,000		1,375,380
Chino Basin CA Desalter Authority Series A (Water & Sewer Revenue)		4.00			6-1-2028		2,000,000		2,189,240
Compton CA Community College District Election of 2002 CAB Series C (GO Revenue) ¤		0.00			8-1-2029		1,565,000		933,538
Compton CA Community College District Election of 2002 CAB Series C (GO Revenue) ¤		0.00			8-1-2031		2,400,000		1,292,184
El Monte CA Union High School District (GO Revenue)		5.00			6-1-2019		1,490,000		1,610,407
El Monte CA Union High School District (GO Revenue)		5.00			6-1-2020		2,000,000		2,211,280
Emery CA Unified School District Election of 2010 Series A (GO Revenue, AGM Insured)		6.25			8-1-2031		4,500,000		5,273,100
Foothill De Anza CA Community College District Certificate of Participation (Miscellaneous Revenue)		5.00			4-1-2033		500,000		558,065
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		7.00			11-1-2034		2,000,000		2,737,860
M-S-R California Energy Authority Gas Series C (Utilities Revenue)		7.00			11-1-2034		3,000,000		4,106,790
New Haven CA Unified School District CAB Project (GO Revenue, AGC Insured) ¤		0.00			8-1-2033		5,590,000		2,928,042
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.29			7-1-2027		10,000,000		8,901,900
Northern California Power Agency Series A (Utilities Revenue)		5.25			8-1-2023		5,150,000		5,665,206
Northern Humboldt CA High School District Election of 2010 Series A (GO Revenue)		6.50			8-1-2034		1,145,000		1,383,080
Oakland CA Unified School District Alameda County Election of 2006 Series A (GO Revenue)		6.50			8-1-2020		1,730,000		1,952,426
Oakland CA Unified School District Alameda County Election of 2009 Series A (GO Revenue)		6.25			8-1-2019		1,285,000		1,438,532
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		6.25			8-1-2028		2,000,000		2,362,180
Oakland CA Unified School District Alameda County Election of 2012 (GO Revenue)		6.25			8-1-2030		2,000,000		2,348,380
Oxnard CA School District Series A (GO Revenue, National Insured)		5.75			8-1-2030		1,825,000		2,154,595
Pasadena CA PFA Rose Bowl Renovation Series A (Miscellaneous Revenue)		5.00			3-1-2021		1,655,000		1,862,785
Patterson CA Unified School District CAB Election of 2008 Project Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2033		3,000,000		1,604,190
Peralta CA Community College District Alameda County (GO Revenue)		5.00			8-1-2023		3,045,000		3,526,232
Peralta CA Community College District Alameda County (GO Revenue)		5.00			8-1-2024		3,000,000		3,452,130
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		2,700,000		2,981,583
Rio Hondo CA Community College District (GO Revenue) ¤		0.00			8-1-2030		2,315,000		1,367,957
Sacramento CA Airport Systems (Airport Revenue)		5.00			7-1-2025		2,000,000		2,182,160

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sacramento CA Municipal Utility District Series B (Utilities Revenue)		5.00	%		8-15-2030	$	1,075,000	$	1,235,992
San Diego CA Community College District Election of 2012 (GO Revenue)		5.00			8-1-2032		3,095,000		3,590,633
San Diego CA PFFA Capital Improvement Projects Series B (Miscellaneous Revenue)		5.00			10-15-2027		500,000		583,085
San Diego CA PFFA Capital Improvement Projects Series B (Miscellaneous Revenue)		5.00			10-15-2028		1,000,000		1,158,750
San Diego CA Unified School District Election of 1998 Series E-2 (GO Revenue, AGM Insured)		5.50			7-1-2027		5,000,000		6,283,400
San Gorgonio CA Memorial Healthcare District (GO Revenue)		7.00			8-1-2029		2,000,000		2,071,260
San Jose CA Libraries & Parks Project (GO Revenue)		5.13			9-1-2031		6,110,000		6,129,552
San Jose CA MFHR Casa Del Pueblo Apartments Project Series D (Housing Revenue) ±##		0.95			12-1-2017		10,000,000		9,987,900
San Jose CA Redevelopment Agency Series A-1 (Tax Revenue)		5.50			8-1-2030		1,355,000		1,483,088
Santa Ana CA Financing Authority Police Administration and Holding Facilities Prerefunded Balance (Miscellaneous Revenue, National Insured)		6.25			7-1-2019		500,000		558,520
Santa Ana CA Financing Authority Police Administration and Holding Facilities Unrefunded Balance (Miscellaneous Revenue, National Insured)		6.25			7-1-2019		500,000		553,435
Southern California Public Power Authority Milford Wind Corridor Project #1 (Utilities Revenue)		5.00			7-1-2024		5,000,000		5,438,100
Southern California Public Power Authority Southern Transmission Project Series S (Utilities Revenue)		5.75			7-1-2024		2,000,000		2,135,740
Sylvan CA Unified School District CAB Election of 2006 (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		2,590,000		1,519,424
Sylvan CA Unified School District CAB Election of 2006 (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		2,800,000		1,566,768
Tustin CA Unified School District #88-1 Election of 2008 Series B (GO Revenue)		6.00			8-1-2036		1,500,000		1,776,810
University of California Limited Project Series G (Education Revenue)		5.00			5-15-2037		10,390,000		11,694,465
University of California Medical Center Series J (Health Revenue)		5.25			5-15-2030		15,000,000		17,397,300
University of California Prerefunded Series Q (Education Revenue)		5.25			5-15-2024		2,090,000		2,145,113
University of California Unrefunded Series Q (Education Revenue)		5.25			5-15-2024		65,000		66,665
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2018		445,000		467,036
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2019		905,000		971,880
Washington Township CA Health Care District Series A (Health Revenue)		5.00			7-1-2020		1,300,000		1,320,007
Washington Township CA Health Care District Series A (Health Revenue)		5.13			7-1-2017		260,000		264,901
West Contra Costa CA Unified School District Election of 2005 Series C-1 (GO Revenue, AGC Insured) ¤		0.00			8-1-2026		4,620,000		3,292,027
									219,995,988
Colorado: 0.69%
Adams County CO 12 Five Star Schools Series B (GO Revenue)		5.00			12-15-2028		3,800,000		4,556,124
Adams County CO Refunding & Improvement Certificate of Participation (Miscellaneous Revenue)		4.00			12-1-2018		500,000		523,635
Adams County CO Refunding & Improvement Certificate of Participation (Miscellaneous Revenue)		5.00			12-1-2021		830,000		940,813
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		5.50			10-1-2017		205,000		210,787
Colorado ECFA University of Denver Project (Education Revenue, National Insured)		5.25			3-1-2025		1,110,000		1,298,811
Denver CO Convention Center Hotel Authority Refunding Bond (Industrial Development Revenue)		5.00			12-1-2023		3,000,000		3,354,420
Regents of the University of Colorado Certificate of Participation Series 2013A (Education Revenue)		5.00			11-1-2028		5,000,000		5,697,050
									16,581,640

4 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Connecticut: 3.02%
Connecticut HEFAR Yale University Issue Series A (Education Revenue) ±		1.00	%		7-1-2042	$	25,000,000	$	24,530,750
Connecticut HEFAR Yale University Issue Series A (Education Revenue) ±		1.38			7-1-2035		10,000,000		9,975,600
Connecticut HEFAR Yale University Issue Series A-2 (Education Revenue) ±		2.00			7-1-2042		3,295,000		3,048,962
Connecticut Series A (Miscellaneous Revenue) ±		1.57			3-1-2022		3,000,000		2,998,500
Connecticut Series A (Miscellaneous Revenue) ±		1.82			4-15-2019		2,300,000		2,311,178
Connecticut Series A (Miscellaneous Revenue) ±		1.97			4-15-2020		3,300,000		3,329,931
Connecticut Special Tax Obligation Bonds Transportation Infrastructure Purposes Series A (Tax Revenue)		5.00			8-1-2028		2,000,000		2,318,660
Connecticut Special Tax Obligation Bonds Transportation Infrastructure Purposes Series A (Tax Revenue)		5.00			8-1-2030		1,000,000		1,145,490
Hamden CT (GO Revenue)		4.00			8-15-2020		1,235,000		1,303,864
Hamden CT (GO Revenue)		4.00			8-15-2021		1,235,000		1,309,322
Hamden CT (GO Revenue, AGM Insured)		5.00			8-15-2021		1,000,000		1,120,030
Hamden CT (GO Revenue, AGM Insured)		5.00			8-15-2022		1,000,000		1,132,950
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			4-1-2022		3,010,000		3,325,478
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2026		1,000,000		1,117,300
Hartford CT Series A (GO Revenue, AGM Insured)		5.00			7-1-2028		1,265,000		1,401,557
Hartford CT Series C (GO Revenue, AGM Insured)		5.00			7-15-2022		2,320,000		2,573,066
University of Connecticut Series A (Education Revenue)		5.00			3-15-2027		1,000,000		1,180,110
University of Connecticut Series A (Education Revenue)		5.00			3-15-2028		2,000,000		2,348,820
University of Connecticut Series A (Education Revenue)		5.00			3-15-2031		5,075,000		5,846,451
									72,318,019
Delaware: 0.08%
Delaware EDA Odyssey Charter School Project Series B (Education Revenue) 144A		6.75			9-1-2035		2,000,000		1,985,080
District of Columbia: 0.59%
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.00			12-1-2023		1,000,000		1,140,730
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.00			12-1-2025		3,520,000		4,019,347
District of Columbia Federal Highway Grant Anticipation Bonds (Miscellaneous Revenue)		5.25			12-1-2025		2,630,000		2,944,995
District of Columbia Howard University Series A (Education Revenue)		5.75			10-1-2026		2,510,000		2,553,222
District of Columbia Medical Association of Colleges Series B (Miscellaneous Revenue)		5.00			10-1-2024		3,095,000		3,427,867
									14,086,161
Florida: 5.24%
Broward County FL School Board Certificate of Participation Series A (Miscellaneous Revenue)		5.00			7-1-2024		5,000,000		5,833,650
Cityplace Florida Community Development District Special Assessment (Miscellaneous Revenue)		5.00			5-1-2021		2,945,000		3,184,811
Daytona Beach FL Utility System (Water & Sewer Revenue, AGM Insured)		5.00			11-1-2022		2,205,000		2,535,904
Duval County FL School Board Certificate of Participation Series B (Miscellaneous Revenue)		5.00			7-1-2028		2,500,000		2,871,800
Duval County FL School Board Certificate of Participation Series B (Miscellaneous Revenue)		5.00			7-1-2029		5,000,000		5,715,400
Florida Department of Transportation Turnpike System Series A (Transportation Revenue)		5.00			7-1-2023		3,910,000		4,576,499

Portfolio of investments—December 31, 2016 (unaudited) 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	%		7-1-2025	$	4,950,000	$	5,896,886
Florida Development Finance Corporation Renaissance Charter School Series A (Education Revenue)		5.00			9-15-2020		1,670,000		1,710,147
Florida HEFAR (Education Revenue)		4.00			4-1-2021		1,000,000		1,055,590
Florida Mid-Bay Bridge Authority Series A (Transportation Revenue)		5.00			10-1-2025		1,250,000		1,437,500
Gulf Breeze FL Capital Funding Loan Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2017		1,665,000		1,710,954
Gulf Breeze FL Capital Funding Loan Program Series B (Miscellaneous Revenue, AGM Insured)		4.00			10-1-2017		1,000,000		1,020,140
Gulf Breeze FL Local Government Loan Series J (Water & Sewer Revenue) ±		4.20			12-1-2020		3,290,000		3,377,086
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		2,415,183
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			10-1-2019		3,440,000		3,645,609
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			10-1-2020		3,600,000		3,855,564
Miami-Dade County FL Public Services (Tax Revenue, AGM Insured)		4.00			4-1-2021		2,485,000		2,666,654
Miami-Dade County FL School Board Certificate of Participation Series 4 (Miscellaneous Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) 144Aø		1.27			9-25-2024		11,960,000		11,960,000
Miami-Dade County FL School Board Certificate of Participation Series 5 (Miscellaneous Revenue, Dexia Credit Local LOC, FGIC Insured, Dexia Credit Local LIQ) 144Aø		1.11			5-1-2037		18,235,000		18,235,000
Miami-Dade County FL School Board Certificate of Participation Series A (Miscellaneous Revenue) ±		5.00			5-1-2031		3,000,000		3,453,480
Miami-Dade County FL School Board Certificate of Participation Series D (Miscellaneous Revenue)		5.00			11-1-2027		6,600,000		7,555,020
Miami-Dade County FL Special Obligation Series A (Tax Revenue)		5.00			10-1-2023		700,000		799,246
Miami-Dade County FL Water & Sewer Refunding Bond Series C (Water & Sewer Revenue, BHAC Insured)		5.00			10-1-2024		2,950,000		3,140,865
Miami-Dade County FL Water & Sewer Refunding Bond Series C (Water & Sewer Revenue)		5.25			10-1-2022		3,000,000		3,207,060
Orange County FL School Board Certificate of Participation Series C (Miscellaneous Revenue)		5.00			8-1-2029		2,000,000		2,310,720
Putnam County FL Development Authority PCR Seminole Project Series A (Utilities Revenue, Ambac Insured) ±		5.35			3-15-2042		5,260,000		5,521,527
Seminole Tribe of Florida Special Obligation Series A (Miscellaneous Revenue) 144A		5.50			10-1-2024		2,500,000		2,555,850
South Lake County FL Hospital District South Lake Hospital Incorporated (Health Revenue)		5.00			10-1-2017		900,000		922,779
Tampa FL Sports Authority Stadium Project (Tax Revenue)		5.00			1-1-2025		3,395,000		4,039,677
Tender Option Bond Trust Receipt/Certificates for Seminole County FL Series ZF0444 (Tax Revenue, National Insured, JPMorgan Chase & Company LIQ) 144Aø		0.87			4-1-2027		5,250,000		5,250,000
University of South Florida Financing Corporation Certificate of Participation Master Lease Program Series A (Education Revenue)		5.00			7-1-2022		1,730,000		1,951,561
University of South Florida Financing Corporation Certificate of Participation Master Lease Program Series A (Education Revenue)		5.00			7-1-2023		815,000		928,212
									125,340,374
Georgia: 1.48%
Columbus GA Water & Sewerage Bond (Water & Sewer Revenue)		5.00			5-1-2035		1,200,000		1,387,764
Floyd County GA PCR Georgia Power Company Plant Hammond Project (Utilities Revenue) ±		2.35			7-1-2022		1,000,000		994,380
Georgia Public Gas Partners Incorporated Series A (Utilities Revenue)		5.00			10-1-2017		2,500,000		2,570,825

6 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Georgia (continued)
Georgia Public Gas Partners Incorporated Series A (Utilities Revenue)		5.00	%		10-1-2019	$	5,000,000	$	5,436,100
Georgia Series F (Miscellaneous Revenue)		5.00			7-1-2026		10,000,000		12,317,100
Main Street Natural Gas Incorporated Georgia Gas Project Series A (Utilities Revenue)		5.50			9-15-2022		1,000,000		1,123,520
Monroe County GA PCR Georgia Power Company Plant Scherer Project (Industrial Development Revenue) ±		2.35			10-1-2048		2,000,000		1,981,340
Private Colleges & Universities Authority of Georgia Series A (Education Revenue)		5.00			10-1-2021		3,330,000		3,643,619
Savannah GA MFHR Wessels Blackshear Home Project (Housing Revenue) ±		1.15			7-1-2019		6,000,000		5,958,300
									35,412,948
Guam: 0.35%
Guam Government Business Privilege Tax Bond Series A (Tax Revenue)		5.00			1-1-2020		1,345,000		1,448,565
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.00			7-1-2028		1,000,000		1,094,780
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2020		350,000		383,569
Guam Government Waterworks Authority (Water & Sewer Revenue)		5.25			7-1-2033		2,500,000		2,734,225
Guam International Airport Authority (Airport Revenue)		5.00			10-1-2022		1,000,000		1,121,180
Guam International Airport Authority (Airport Revenue)		5.00			10-1-2023		1,500,000		1,690,875
									8,473,194
Illinois: 15.88%
Bolingbrook, Will & DuPage Counties IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2023		650,000		732,719
Champaign & Coles Counties IL Community College District #505 Series A (GO Revenue)		4.00			12-1-2018		1,015,000		1,062,360
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2021		1,000,000		817,160
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2025		3,380,000		2,233,031
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2026		4,030,000		2,511,778
Chicago IL Board of Education School Reform Series A (GO Revenue, National/FGIC Insured)		5.25			12-1-2023		5,125,000		5,518,344
Chicago IL Board of Education Series A3 (GO Revenue) ±		1.55			3-1-2036		10,000,000		9,437,700
Chicago IL Board of Education Series B (GO Revenue, Ambac Insured)		5.00			12-1-2021		7,760,000		7,764,423
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2021		2,500,000		2,201,075
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2029		3,000,000		2,400,540
Chicago IL Board of Education Series C (GO Revenue)		5.25			12-1-2025		5,000,000		4,101,300
Chicago IL Board of Education Series F (GO Revenue)		5.00			12-1-2020		2,375,000		2,114,985
Chicago IL CAB Series A (GO Revenue, National Insured)		5.44			1-1-2018		1,725,000		1,730,330
Chicago IL Metropolitan Reclamation Series B (GO Revenue)		5.00			12-1-2025		2,500,000		2,781,225
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue, AGM Insured)		5.13			1-1-2030		2,610,000		2,935,493
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue, AGM Insured)		5.13			1-1-2031		3,335,000		3,746,973
Chicago IL O’Hare International Airport Senior Lien (Airport Revenue)		5.25			1-1-2032		8,755,000		9,697,914
Chicago IL O’Hare International Airport Senior Lien Series B (Airport Revenue)		5.00			1-1-2030		8,000,000		8,931,840
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue, AGM Insured)		5.00			1-1-2033		1,000,000		1,038,680
Chicago IL O’Hare International Airport Third Lien Series C (Airport Revenue, AGC Insured)		5.25			1-1-2025		4,075,000		4,439,183
Chicago IL O’Hare International Airport Third Lien Series F (Airport Revenue)		4.25			1-1-2021		735,000		782,518
Chicago IL Park District Series A (GO Revenue)		5.00			1-1-2036		2,150,000		2,249,588
Chicago IL Park District Series B (GO Revenue)		5.00			1-1-2021		3,765,000		4,118,383

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL Park District Series C (GO Revenue)		5.00	%		1-1-2022	$	1,515,000	$	1,674,802
Chicago IL Public Building Commission School Reform (Miscellaneous Revenue, National Insured)		5.25			12-1-2017		3,555,000		3,645,190
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2025		615,000		634,170
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2026		5,140,000		5,529,149
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2027		3,000,000		3,218,580
Chicago IL Sales Tax Refunding Bond (Tax Revenue)		5.00			1-1-2030		2,075,000		2,186,843
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2022		1,730,000		1,923,847
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2023		1,155,000		1,276,471
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2025		500,000		548,565
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2026		2,000,000		2,193,140
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2028		3,000,000		3,260,010
Chicago IL Second Lien (Water & Sewer Revenue)		5.00			11-1-2033		1,000,000		1,086,970
Chicago IL Second Lien Project (Water & Sewer Revenue)		5.00			11-1-2029		1,490,000		1,613,387
Chicago IL Second Lien Series A (Water & Sewer Revenue, Ambac Insured)		5.00			11-1-2032		10,000,000		10,025,400
Chicago IL Series A (GO Revenue)		5.00			1-1-2027		1,000,000		965,650
Chicago IL Series A (GO Revenue, Ambac Insured)		5.00			1-1-2019		2,500,000		2,505,125
Chicago IL Series A (GO Revenue)		5.00			1-1-2025		750,000		736,913
Chicago IL Series A (GO Revenue)		5.25			1-1-2022		4,020,000		4,009,709
Chicago IL Series A (GO Revenue)		5.25			1-1-2023		4,475,000		4,443,451
Chicago IL Series A (GO Revenue)		5.25			1-1-2028		1,750,000		1,707,195
Chicago IL Series A (GO Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2037		4,750,000		4,896,728
Chicago IL Series C (GO Revenue) ¤		0.00			1-1-2023		2,500,000		1,744,000
Chicago IL Series C (GO Revenue)		4.00			1-1-2020		1,505,000		1,484,502
Chicago IL Series C (GO Revenue)		5.00			1-1-2024		3,695,000		3,658,493
Chicago IL Series C (GO Revenue)		5.00			1-1-2026		5,000,000		4,886,700
Chicago IL Series G (GO Revenue, Ambac Insured)		5.00			12-1-2024		16,865,000		16,913,374
Chicago IL Series J (GO Revenue, Ambac Insured)		5.00			12-1-2023		365,000		366,048
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5307-A (Transportation Revenue, AGC Insured)		5.25			6-1-2022		500,000		517,420
Chicago IL Transit Authority Capital Grant Federal Transit Administration Section 5309-A (Transportation Revenue, AGC Insured)		6.00			6-1-2024		2,000,000		2,178,460
Chicago IL Transit Authority Sales Tax Receipts (Tax Revenue)		5.25			12-1-2027		2,600,000		2,843,958
Chicago IL Unrefunded Balance (GO Revenue, AGM Insured)		5.00			1-1-2024		35,000		35,282
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2022		1,340,000		1,471,481
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2023		1,935,000		2,119,193
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2024		2,000,000		2,177,740
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2032		1,000,000		1,075,720
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2033		1,000,000		1,071,270
Chicago IL Waste Water Transmission Second Lien (Water & Sewer Revenue)		5.00			1-1-2034		1,000,000		1,066,840
Chicago IL Waste Water Transmission Second Lien Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		2,000,000		2,003,360
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2025		1,250,000		1,384,838
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2027		1,295,000		1,425,225
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2028		1,250,000		1,368,475
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2030		3,000,000		3,272,100
Cook County IL Community College District #508 (GO Revenue)		5.25			12-1-2031		3,200,000		3,473,824
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		7,240,000		7,915,058
Cook County IL Series A (GO Revenue)		5.25			11-15-2023		7,680,000		8,361,062

8 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Cook County IL Series A (GO Revenue)		5.25	%		11-15-2024	$	2,200,000	$	2,422,882
Cook County IL Series B (GO Revenue)		5.00			11-15-2023		600,000		658,830
Cook County IL Series C (GO Revenue)		5.00			11-15-2021		1,340,000		1,479,213
Cook County IL Series C (GO Revenue)		5.00			11-15-2024		2,175,000		2,413,837
Cook County IL Series C (GO Revenue)		5.00			11-15-2025		2,450,000		2,695,784
DuPage County IL High School District (GO Revenue, AGM Insured)		5.00			1-1-2021		1,000,000		1,001,400
DuPage, Cook & Will Counties IL Community College District #502 Series A (GO Revenue)		5.00			6-1-2022		2,650,000		3,005,710
Homer, Glen, Will & Cook Village Counties IL Series A (GO Revenue)		4.00			12-1-2019		1,000,000		1,056,710
Homer, Glen, Will & Cook Village Counties IL Series A (GO Revenue)		5.00			12-1-2021		1,015,000		1,096,362
Huntley IL Special Service Area #9 (Tax Revenue, AGC Insured)		4.60			3-1-2017		325,000		325,910
Illinois (GO Revenue)		4.75			4-1-2020		2,650,000		2,683,443
Illinois (GO Revenue, AGM Insured)		5.00			1-1-2023		2,450,000		2,547,510
Illinois (Tax Revenue)		5.00			6-15-2023		16,050,000		18,240,023
Illinois (Miscellaneous Revenue)		5.00			7-1-2023		5,000,000		5,181,000
Illinois (Miscellaneous Revenue)		5.00			8-1-2025		1,000,000		1,018,570
Illinois (GO Revenue, AGM Insured)		5.00			4-1-2026		5,000,000		5,324,800
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		2,300,000		2,396,186
Illinois Education Facilities Authority (Miscellaneous Revenue) ±		3.40			11-1-2036		1,275,000		1,290,160
Illinois Education Facilities Authority Field Museum (Miscellaneous Revenue) ±		4.13			11-1-2036		4,560,000		4,641,487
Illinois Finance Authority Student Housing Illinois State University Project (Education Revenue)		5.50			4-1-2021		3,920,000		4,105,416
Illinois Finance Authority Wesleyan University (Education Revenue)		5.00			9-1-2026		680,000		770,590
Illinois Municipal Electric Agency Power Supply (Utilities Revenue, National Insured)		5.25			2-1-2024		2,500,000		2,509,575
Illinois Municipal Electric Agency Power Supply Series A (Utilities Revenue, National/FGIC Insured)		5.25			2-1-2023		1,100,000		1,104,213
Illinois Regional Transportation Authority (Tax Revenue, AGM Insured)		5.75			6-1-2018		6,790,000		7,210,165
Illinois Regional Transportation Authority (Tax Revenue, National Insured)		6.50			7-1-2026		7,815,000		9,996,088
Illinois Sales Tax Build Illinois Bond (Tax Revenue)		5.00			6-15-2029		1,000,000		1,083,940
Illinois Series A (GO Revenue)		5.00			4-1-2023		4,500,000		4,662,765
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		2,500,000		2,671,900
Illinois Series A (Tax Revenue)		5.00			1-1-2027		10,625,000		10,676,319
Illinois Series B (Tax Revenue)		5.00			6-15-2018		175,000		184,581
Illinois Sports Facilities Authority (Tax Revenue, AGM Insured)		5.25			6-15-2030		4,000,000		4,414,520
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2028		2,500,000		2,738,625
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.25			6-15-2032		3,000,000		3,284,250
Illinois Toll Highway Authority Series A-1 (Transportation Revenue)		5.25			1-1-2026		3,500,000		3,807,475
Illinois Unrefunded Balance Series B (Tax Revenue)		5.00			6-15-2018		825,000		864,815
Kane, Cook & DuPage Counties IL School District #46 Prerefunded Balance Series B (GO Revenue)		4.50			1-1-2024		1,170,000		1,315,712
Kane, Cook & DuPage Counties IL School District #46 Unrefunded Balance Series B (GO Revenue)		4.50			1-1-2024		3,100,000		3,399,026
Kane, McHenry, Cook & DeKalb Counties IL Unified School District (GO Revenue, Ambac Insured)		5.00			1-1-2024		2,000,000		2,000,240
Kendall, Kane & Will Counties IL Unified School District Series A (GO Revenue)		5.00			2-1-2023		1,000,000		1,105,180
McHenry & Kane Counties IL Community Consolidated School District #158 (GO Revenue)		5.63			1-15-2031		2,000,000		2,269,460
McHenry & Lake Counties IL Community Consolidated School District #26 (GO Revenue, AGM Insured)		5.00			2-1-2020		1,455,000		1,574,048

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Northern IIlinois Municipal Power Agency Prairie State Project Series A (Utilities Revenue, National Insured)		5.00	%		1-1-2021	$	2,740,000	$	2,846,559
Northern Illinois University Board of Trustees Auxiliary Facilities (Education Revenue, AGM Insured)		5.00			4-1-2019		1,000,000		1,063,010
Northern Illinois University Board of Trustees Certificate of Participation (Education Revenue, AGM Insured)		5.00			9-1-2022		1,325,000		1,466,523
Northern Illinois University Board of Trustees Certificate of Participation (Education Revenue, AGM Insured)		5.00			9-1-2024		1,000,000		1,122,950
Southwestern Illinois Development Authority Local Government Program Collinsville Limited (Tax Revenue)		5.00			3-1-2025		1,950,000		1,569,341
Springfield IL Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2022		3,600,000		3,625,308
Springfield IL Senior Lien (Utilities Revenue, National Insured)		5.00			3-1-2023		1,560,000		1,570,967
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2017		455,000		484,975
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2018		535,000		604,598
University of Illinois Auxiliary Facilities Systems (Education Revenue) ¤		0.00			4-1-2020		8,270,000		7,582,184
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, Ambac Insured)		5.50			4-1-2024		1,000,000		1,187,800
University of Illinois Board of Trustees Certificate of Participation Prerefunded Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2020		1,045,000		1,076,611
University of Illinois Board of Trustees Certificate of Participation Unrefunded Series B (Miscellaneous Revenue, AGM Insured)		5.00			10-1-2020		955,000		981,091
Will County IL Community Unified School District CAB (GO Revenue, National Insured) ¤		0.00			11-1-2018		9,730,000		9,363,179
									380,017,076
Indiana: 1.63%
Indiana Bond Bank Hendricks Regional Health Series A (Miscellaneous Revenue)		4.00			8-1-2017		1,000,000		1,016,080
Indiana Bond Bank Special Program Series A (Utilities Revenue)		5.00			10-15-2017		5,410,000		5,545,737
Indiana Bond Bank Special Program Series A (Miscellaneous Revenue, AGM Insured)		5.00			9-1-2022		1,545,000		1,741,802
Indiana Finance Authority Clean Water Act Project Series A (Water & Sewer Revenue)		5.00			10-1-2031		1,035,000		1,181,804
Indiana Finance Authority Parkview Health System Series A (Health Revenue)		5.50			5-1-2024		4,500,000		4,871,925
Indiana Finance Authority Southern Indiana Gas & Electric Company Project Series D (Utilities Revenue) ±		1.95			3-1-2024		4,000,000		4,022,600
Indiana Finance Authority Stadium Project Series A (Miscellaneous Revenue)		5.25			2-1-2028		2,000,000		2,365,740
Indiana Finance Authority Wastewater Utilities CWA Authority Project Series A (Water & Sewer Revenue)		5.00			10-1-2030		2,315,000		2,648,545
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2027		760,000		905,570
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2028		1,000,000		1,184,490
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2029		735,000		864,808
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2030		1,375,000		1,598,795
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2031		1,000,000		1,158,480
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2033		1,545,000		1,774,062
Indianapolis IN Local Public Improvement Bond Bank Series E (Miscellaneous Revenue)		5.00			1-1-2034		2,000,000		2,286,400
Jeffersonville IN Building Corporation First Mortgage Series C (Miscellaneous Revenue)		4.25			8-15-2017		210,000		210,901

10 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Indiana (continued)
Knox County IN EDA Series A (Health Revenue)		5.00	%		4-1-2022	$	925,000	$	999,888
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2023		665,000		714,443
Knox County IN EDA Series A (Health Revenue)		5.00			4-1-2026		750,000		794,835
Mount Vernon IN School Building Corporation Prerefunded Balance First Mortgage (Miscellaneous Revenue, AGM Insured)		5.00			7-15-2019		265,000		275,735
Mount Vernon IN School Building Corporation Unrefunded Balance First Mortgage (Miscellaneous Revenue, AGM Insured)		5.00			7-15-2019		735,000		764,547
University of Southern Indiana Student Fee Series J (Education Revenue, AGC Insured)		5.00			10-1-2019		1,000,000		1,083,560
Valparaiso IN Multi-Schools Building Corporation (Miscellaneous Revenue)		5.00			7-15-2024		750,000		875,385
									38,886,132
Iowa: 0.89%
Altoona IA Annual Appropriation Urban Renewal Refunding Bond (GO Revenue)		5.00			6-1-2027		2,310,000		2,675,327
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.95			4-1-2022		3,000,000		3,000,000
Iowa Higher Education Loan Authority Private College Facility RAN (Education Revenue)		1.00			9-1-2018		7,000,000		6,903,260
Iowa Student Loan Liquidity Corporation Series 1 (Education Revenue)		5.25			12-1-2017		3,000,000		3,096,330
Iowa Student Loan Liquidity Corporation Series 1 (Education Revenue)		5.25			12-1-2018		5,285,000		5,606,592
									21,281,509
Kansas: 0.24%
Kansas Development Finance Authority Agro-Defense Facility Series G (Miscellaneous Revenue)		5.00			4-1-2030		2,650,000		2,969,246
Kansas Development Finance Authority Health Facilities Series F (Health Revenue)		5.00			11-15-2021		1,300,000		1,466,725
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		1,317,996
									5,753,967
Kentucky: 0.50%
Kentucky EDFA Series B2 (Health Revenue) ±		1.32			2-1-2046		1,250,000		1,234,263
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2020		1,000,000		888,150
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2021		2,750,000		2,338,215
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2022		4,320,000		3,504,168
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2025		1,020,000		698,557
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2029		1,400,000		789,404
University of Kentucky Certificate of Participation Master Street Lease #4 (Miscellaneous Revenue)		4.45			6-18-2018		2,438,396		2,498,453
									11,951,210
Louisiana: 0.92%
Lafayette LA Communications System (Miscellaneous Revenue, AGM Insured)		5.00			11-1-2025		1,500,000		1,732,095
Louisiana Correctional Facilities Corporation (Miscellaneous Revenue, Ambac Insured)		5.00			9-1-2019		1,000,000		1,081,090

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Louisiana (continued)
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Series A (Water & Sewer Revenue)		5.00	%		2-1-2030	$	1,000,000	$	1,124,760
Louisiana Public Facilities Authority Black & Gold Facilities Project Series A (Housing Revenue, AGC Insured)		4.25			7-1-2017		55,000		55,917
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2026		2,000,000		2,309,320
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2027		2,700,000		3,101,274
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2028		2,405,000		2,744,033
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2029		2,695,000		3,061,062
Louisiana Unclaimed Property Special Bond 1-49 South Project (Miscellaneous Revenue)		5.00			9-1-2030		2,700,000		3,054,375
St. Bernard Parish LA Sales & Use Tax (Tax Revenue)		4.00			3-1-2023		3,405,000		3,647,674
									21,911,600
Maryland: 1.80%
Maryland CDA Waverly View Apartments Series G (Housing Revenue)		1.15			2-1-2019		5,000,000		4,936,700
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		4,956,900
Maryland Economic Development Corporation Salisbury University Project (Education Revenue)		5.00			6-1-2027		500,000		532,400
Maryland Health & HEFAR John Hopkins Health System Series D (Health Revenue) ±		1.24			5-15-2038		3,870,000		3,879,714
Maryland Series B (GO Revenue)		4.00			8-1-2023		5,000,000		5,612,250
Maryland Series B (GO Revenue)		4.00			8-1-2024		15,000,000		16,929,900
Maryland Series C (GO Revenue)		5.00			8-1-2022		2,975,000		3,469,415
Westminster MD Educational Facilities McDaniel College (Education Revenue)		5.00			11-1-2026		2,450,000		2,781,118
									43,098,397
Massachusetts: 3.05%
Boston MA Series A (GO Revenue)		5.00			4-1-2026		5,790,000		6,969,770
Massachusetts Consolidate Loan Series D (GO Revenue)		5.00			9-1-2028		10,000,000		11,880,100
Massachusetts Consolidate Loan Series I (Miscellaneous Revenue)		5.00			12-1-2030		2,570,000		3,071,433
Massachusetts Consolidated Loan Series C (Tax Revenue, AGM Insured)		5.25			8-1-2025		5,000,000		5,127,050
Massachusetts Consolidated Loan Series D-1 (Miscellaneous Revenue) ±		1.05			8-1-2043		10,000,000		9,678,500
Massachusetts Development Finance Agency Lasell College (Education Revenue)		5.00			7-1-2021		2,820,000		3,043,739
Massachusetts Development Finance Agency Merrimack College Series A (Education Revenue)		5.00			7-1-2021		1,035,000		1,120,222
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		2,295,469
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		6.55			4-15-2020		615,000		699,495
Massachusetts Educational Financing Authority Issue I (Education Revenue)		5.50			1-1-2018		2,000,000		2,083,000
Massachusetts Educational Financing Authority Issue I Series A (Education Revenue)		5.50			1-1-2017		2,000,000		2,000,260
Massachusetts HEFA Harvard University Series A (Education Revenue)		5.00			12-15-2029		1,890,000		2,081,003
Massachusetts HEFA Various Partners Healthcare Series G-6 (Health Revenue) ±		1.60			7-1-2038		14,000,000		13,999,860
Massachusetts Housing Finance Agency Multifamily Conduit Wood Ridge Homes Project Series A (Housing Revenue) ±		1.05			12-1-2017		9,000,000		8,992,980
									73,042,881

12 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan: 4.05%
Clinton MI Township Building Authority (Miscellaneous Revenue, Ambac Insured)		5.50	%		11-1-2017	$	1,475,000	$	1,522,879
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2018		3,000,000		3,109,950
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2019		1,500,000		1,554,975
Detroit MI Distributable State Aid (GO Revenue)		5.00			11-1-2020		2,700,000		2,798,955
Eaton Rapids MI Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2022		1,785,000		2,032,758
Flint MI International Academy (Education Revenue)		5.38			10-1-2022		2,270,000		2,285,118
Flint MI International Academy (Education Revenue)		5.50			10-1-2027		1,985,000		1,991,352
Flint MI International Academy Public School Project (Education Revenue)		5.00			10-1-2017		95,000		95,523
Great Lakes MI Water Authority Sewage Disposal System Series C (Water & Sewer Revenue)		5.00			7-1-2030		3,350,000		3,747,511
Hazel Park MI School District (GO Revenue, AGM/Qualified School Board Loan Fund Insured)		5.00			5-1-2020		1,160,000		1,277,926
Kent County MI (GO Revenue)		5.00			1-1-2025		1,000,000		1,062,870
Kent County MI Limited Tax Capital Improvement Bond (GO Revenue)		5.00			6-1-2030		1,040,000		1,224,496
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2024		1,750,000		1,907,535
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2025		1,750,000		1,905,750
Macomb MI Interceptor Drainage (Miscellaneous Revenue)		5.00			5-1-2026		1,930,000		2,101,133
Michigan Comprehensive Transportation Program (Tax Revenue)		5.25			5-15-2017		2,750,000		2,791,085
Michigan Finance Authority (Health Revenue)		5.00			11-15-2023		400,000		455,372
Michigan Finance Authority (Health Revenue)		5.00			11-15-2026		800,000		896,152
Michigan Finance Authority Limited Obligation Public School Academy Cesar Chavez Academy Project (Education Revenue)		5.00			2-1-2022		2,540,000		2,574,519
Michigan Finance Authority Local Government Loan Program Series C (Health Revenue)		5.00			11-1-2022		2,070,000		2,191,136
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, National Insured)		5.00			7-1-2025		1,000,000		1,142,880
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue)		5.00			7-1-2030		12,000,000		13,312,320
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2035		2,750,000		3,033,470
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, AGM Insured)		5.00			7-1-2037		2,000,000		2,193,680
Michigan Finance Authority Local Government Loan Program Series F (Tax Revenue)		4.00			10-1-2024		3,000,000		3,097,860
Michigan Grant Anticipation Refunding Bond (Miscellaneous Revenue)		5.00			3-15-2027		3,000,000		3,564,780
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2018		1,075,000		1,083,933
Michigan Public Educational Facilities Authority Limited Obligation Chandler Park Academy (Miscellaneous Revenue)		5.60			11-1-2018		415,000		415,585
Michigan Public Educational Facilities Authority Limited Obligation Nataki Talibah (Miscellaneous Revenue) (s)(i)		6.25			10-1-2023		815,000		244,345
Michigan Strategic Fund Limited Obligation Cadillac Place Office Building Project (Miscellaneous Revenue)		5.25			10-15-2025		4,165,000		4,703,368
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		11,500,000		11,643,750
Pinckney MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2025		2,040,000		2,346,938
Pinckney MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2026		2,505,000		2,863,390
Southfield MI 2015 Street Improvement (GO Revenue)		4.00			5-1-2025		1,490,000		1,618,259

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Southfield MI Public Schools (GO Revenue, National/Qualified School Board Loan Fund Insured)		4.38	%		5-1-2025	$	4,000,000	$	4,039,160
Western Michigan University Board of Trustees (Education Revenue)		5.25			11-15-2027		600,000		694,074
Western Michigan University Board of Trustees (Education Revenue)		5.25			11-15-2029		1,000,000		1,141,900
Western Michigan University Board of Trustees (Education Revenue, AGM Insured)		5.25			11-15-2033		750,000		848,633
Western Townships MI Utilities Authority (GO Revenue)		5.00			1-1-2017		1,500,000		1,500,165
									97,015,485
Minnesota: 0.31%
Minneapolis & St. Paul MN Metropolitan Airports Commission Sub Series B (Airport Revenue, National Insured)		5.00			1-1-2018		4,555,000		4,555,501
St. Louis Park MN Nicollett Health Services Series C (Health Revenue)		5.50			7-1-2023		2,500,000		2,659,625
St. Paul MN Housing & RDA Hmong Academy Project Series A (Education Revenue)		5.50			9-1-2018		200,000		200,332
									7,415,458
Mississippi: 0.82%
Mississippi Development Bank Special Obligation Jackson Public School District Project Series A (Miscellaneous Revenue)		5.00			4-1-2020		1,000,000		1,093,160
Mississippi Development Bank Special Obligation Jackson Water & Sewer System Project (Water & Sewer Revenue, AGM Insured)		6.00			12-1-2023		1,145,000		1,378,786
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		11,190,000
Mississippi Development Bank Special Obligation Walnut Grove Correctional Facility Project (Miscellaneous Revenue)		5.00			8-1-2026		5,000,000		5,857,200
									19,519,146
Missouri: 0.30%
Kansas City MO Municipal Assistance Corporation Series B-1 (Miscellaneous Revenue, Ambac Insured) ¤		0.00			4-15-2022		3,640,000		3,114,202
Manchester MO Highway 141 Manchester Road Project (Tax Revenue)		6.00			11-1-2025		430,000		436,360
Maryland Heights MO South Heights Redevelopment Project A (Tax Revenue)		5.50			9-1-2018		260,000		262,366
Poplar Bluff MO School District (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2032		1,500,000		1,684,965
Poplar Bluff MO School District (Miscellaneous Revenue, AGM Insured)		5.00			3-1-2034		1,000,000		1,113,780
St. Louis MO Lambert St. Louis International Airport Series A-1 (Airport Revenue)		6.00			7-1-2019		415,000		457,467
									7,069,140
Nebraska: 0.13%
Lincoln County NE Hospital Authority Great Plains Regional Medical Center (Health Revenue)		5.00			11-1-2024		1,000,000		1,109,160
Municipal Energy Agency of Nebraska Series A (Utilities Revenue, BHAC Insured)		5.00			4-1-2019		500,000		538,385
Nebraska Central Plains Energy Project #3 (Utilities Revenue)		5.00			9-1-2027		1,290,000		1,403,185
									3,050,730
Nevada: 1.43%
Clark County NV Airport Series C (Airport Revenue, AGM Insured)		5.00			7-1-2023		5,600,000		6,038,816
Clark County NV Airport Series D (Airport Revenue)		5.00			7-1-2024		2,750,000		2,995,988
Clark County NV Refunding Bond Series B (GO Revenue)		5.00			11-1-2028		5,000,000		5,978,600
Clark County NV Water Reclamation District (GO Revenue)		5.00			7-1-2027		4,155,000		4,902,692
Clark County NV Water Reclamation District Series A (GO Revenue)		5.25			7-1-2038		2,880,000		3,148,790

14 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Nevada (continued)
Las Vegas NV New Convention & Visitors Authority Series E (Tax Revenue, AGM Insured)		4.20	%		7-1-2021	$	500,000	$	532,840
Las Vegas NV Series A (GO Revenue)		5.00			5-1-2031		1,985,000		2,261,431
Las Vegas NV Series C (GO Revenue)		5.00			9-1-2030		1,000,000		1,167,980
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2019		720,000		731,678
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2020		600,000		613,734
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.00			6-1-2021		785,000		807,278
Las Vegas NV Special Improvement District #607 (Miscellaneous Revenue)		4.25			6-1-2024		200,000		202,100
Las Vegas NV Valley Water District Series B (GO Revenue)		5.00			6-1-2030		1,945,000		2,290,043
Reno NV Sparks Indian Governmental Colony (Miscellaneous Revenue, U.S. Bank NA LOC)		5.00			6-1-2021		2,580,000		2,586,940
									34,258,910
New Hampshire: 0.07%
New Hampshire HFA Single Family Mortgage Acquisition Series E & F (Housing Revenue)		4.80			7-1-2028		1,610,000		1,661,633
New Jersey: 4.70%
Essex County NJ Import Authority Series A (Miscellaneous Revenue)		6.00			11-1-2025		5,000,000		5,189,300
Garden NJ Open Space & Farmland Preservation Refunding Bonds Series A (Tax Revenue)		4.00			11-1-2017		930,000		946,433
Middlesex County NJ (GO Revenue)		2.00			6-1-2024		1,845,000		1,805,259
New Jersey EDA Cigarette Tax Refunding Bonds (Tobacco Revenue)		5.00			6-15-2021		2,500,000		2,696,025
New Jersey EDA Motor Vehicle Surcharges Series A (Miscellaneous Revenue, National Insured)		5.25			7-1-2026		2,860,000		3,217,357
New Jersey EDA School Facilities Construction Refunding Bond Series NN (Miscellaneous Revenue)		5.00			3-1-2021		15,035,000		15,924,771
New Jersey EDA School Facilities Construction Refunding Bond Series NN (Miscellaneous Revenue)		5.00			3-1-2023		3,000,000		3,169,230
New Jersey EDA School Facilities Construction Refunding Bond Series PP (Miscellaneous Revenue)		5.00			6-15-2026		8,380,000		8,664,333
New Jersey Educational Facilities Authority (Miscellaneous Revenue)		5.00			6-15-2026		3,015,000		3,117,299
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2017		2,000,000		2,028,220
New Jersey HEFAR Student Assistance Authority Series A (Education Revenue)		5.00			6-1-2019		9,860,000		10,503,168
New Jersey Sports & Exposition Authority (Miscellaneous Revenue, National Insured)		5.50			3-1-2022		1,755,000		2,066,881
New Jersey TTFA Series A (Miscellaneous Revenue)		5.00			6-15-2020		4,000,000		4,219,960
New Jersey TTFA Series A (Transportation Revenue)		5.25			12-15-2020		1,305,000		1,392,722
New Jersey TTFA Series A (Miscellaneous Revenue)		5.25			6-15-2024		1,695,000		1,801,395
New Jersey TTFA Series A-1 and A-2 (Transportation Revenue)		5.00			6-15-2022		4,750,000		5,116,273
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		2,500,000		2,571,975
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) 144Aø		0.84			12-15-2022		19,775,000		19,775,000
New Jersey TTFA Unrefunded Balance (Transportation Revenue, National Insured)		5.25			12-15-2021		6,000,000		6,590,640
South Jersey NJ Port Corporation Marine Terminal Refunding Bond Series S (Airport Revenue)		5.00			1-1-2028		2,130,000		2,187,489
South Jersey NJ Port Corporation Marine Terminal Refunding Bond Series S (Airport Revenue)		5.00			1-1-2029		2,200,000		2,251,238
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2022		1,630,000		1,829,675
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2024		1,775,000		2,032,499
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		1,860,000		2,141,046
Trenton City NJ (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		1,000,000		1,144,180
									112,382,368

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 15

Security name	Interest rate			Maturity date		Principal		Value
New Mexico: 0.76%
Albuquerque Bernalillo & Sandoval Counties NM Municipal School District #12 (GO Revenue) %%		5.00	%		8-1-2025	$	400,000	$	476,368
Albuquerque Bernalillo & Sandoval Counties NM Municipal School District #12 (GO Revenue) %%		5.00			8-1-2026		1,205,000		1,446,880
Albuquerque Bernalillo County NM Water Utility Authority Series B (Water & Sewer Revenue)		5.00			7-1-2024		1,000,000		1,180,950
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2028		9,265,000		10,364,014
Clayton NM Jail Project Improvement & Refunding Bonds (Miscellaneous Revenue, National Insured)		5.00			11-1-2029		1,000,000		1,113,650
New Mexico Mortgage Finance Authority SFMR Class I Series A (Housing Revenue, GNMA/FNMA/FHLMC Insured)		4.63			9-1-2025		1,085,000		1,119,850
New Mexico Mortgage Finance Authority SFMR Class I Series B (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.00			3-1-2028		425,000		445,362
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.16			11-1-2039		2,000,000		1,987,760
									18,134,834
New York: 8.37%
Dutchess County NY Local Development Corporation The Culinary Institute of America Project Series A-1 (Education Revenue)		5.00			7-1-2026		625,000		735,325
Dutchess County NY Local Development Corporation The Culinary Institute of America Project Series A-1 (Education Revenue)		5.00			7-1-2027		350,000		408,454
Dutchess County NY Local Development Corporation The Culinary Institute of America Project Series A-1 (Education Revenue)		5.00			7-1-2030		365,000		417,502
Dutchess County NY Local Development Corporation The Culinary Institute of America Project Series A-1 (Education Revenue)		5.00			7-1-2041		435,000		482,537
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		2,720,000		2,982,507
Metropolitan Transportation Authority New York Dedicated Tax Fund Series A (Tax Revenue)		5.00			11-15-2024		6,010,000		6,930,732
Metropolitan Transportation Authority New York Series A (Transportation Revenue)		5.00			11-15-2030		4,010,000		4,534,308
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2028		5,000,000		5,891,000
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2029		11,100,000		13,047,162
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2030		8,350,000		9,789,874
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		5.25			11-15-2031		4,500,000		5,264,505
Metropolitan Transportation Authority New York Series D (Transportation Revenue)		5.00			11-15-2027		2,000,000		2,263,080
Metropolitan Transportation Authority New York Series F (Transportation Revenue)		5.00			11-15-2025		2,490,000		2,933,320
Metropolitan Transportation Authority New York Series F (Transportation Revenue)		5.00			11-15-2028		2,450,000		2,770,338
Monroe County NY Industrial Development Corporation Revenue Monroe Community College Project Series A (Education Revenue, AGM Insured)		5.00			1-15-2022		790,000		886,048
Monroe County NY Industrial Development Corporation Revenue Monroe Community College Project Series A (Education Revenue, AGM Insured)		5.00			1-15-2023		645,000		733,552
Monroe County NY Industrial Development Corporation Revenue Monroe Community College Project Series A (Education Revenue, AGM Insured)		5.00			1-15-2024		905,000		1,039,945

16 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Monroe County NY Industrial Development Corporation Revenue St. John Fisher College Project Series A (Education Revenue)		5.00	%		6-1-2020	$	2,125,000	$	2,308,196
Nassau NY Water Authority Series A (Water & Sewer Revenue)		5.00			4-1-2027		350,000		404,632
Nassau NY Water Authority Series A (Water & Sewer Revenue)		5.00			4-1-2028		300,000		344,628
Nassau NY Water Authority Series B (Water & Sewer Revenue)		5.00			4-1-2024		400,000		466,016
Nassau NY Water Authority Series B (Water & Sewer Revenue)		5.00			4-1-2026		755,000		879,492
New York City NY Transitional Finance Authority Sub Series 2B (Tax Revenue, Dexia Credit Local SPA) ø		0.86			11-1-2022		2,540,000		2,540,000
New York Convention Center Development Corporation (Tax Revenue)		5.00			11-15-2028		8,000,000		9,312,000
New York Dormitory Authority Interagency Council Pooled Loan Series A-1 (Miscellaneous Revenue)		4.00			7-1-2019		740,000		775,217
New York Dormitory Authority Mount Sinai School of Medicine (Education Revenue)		5.50			7-1-2022		2,000,000		2,197,340
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		1.32			5-1-2018		800,000		800,440
New York Dormitory Authority Series A (Tax Revenue)		5.00			3-15-2028		5,000,000		5,896,950
New York Dormitory Authority Series A (Tax Revenue)		5.00			2-15-2031		3,000,000		3,547,830
New York Dormitory Authority Series B (Tax Revenue, Ambac Insured)		5.50			3-15-2025		3,885,000		4,803,375
New York Dormitory Authority State University Educational Facilities Series A (Miscellaneous Revenue)		5.50			5-15-2019		3,675,000		3,929,053
New York Dormitory Authority United Health Hospitals (Health Revenue, FHA Insured)		4.50			8-1-2018		1,500,000		1,550,190
New York NY Adjusted Fiscal 2014 Sub Series D-3 (GO Revenue, JPMorgan Chase & Company SPA) ø		0.64			8-1-2038		2,775,000		2,775,000
New York NY Municipal Water Finance Authority Series GG (Water & Sewer Revenue)		5.00			6-15-2029		1,645,000		1,937,185
New York NY Series B (GO Revenue)		5.00			12-1-2032		2,000,000		2,337,200
New York NY Series C (GO Revenue)		5.00			8-1-2031		5,000,000		5,740,250
New York NY Series C & D (GO Revenue)		5.00			8-1-2028		3,000,000		3,540,690
New York NY Series J-4 (GO Revenue) ±		1.27			8-1-2025		10,000,000		10,003,600
New York NY Transitional Finance Authority Prerefunded Balance Series A (Tax Revenue)		5.00			5-1-2023		2,875,000		3,109,284
New York NY Transitional Finance Authority Series B (Tax Revenue)		5.00			8-1-2027		1,115,000		1,316,224
New York NY Transitional Finance Authority Series C (Tax Revenue)		5.00			11-1-2027		5,000,000		5,893,950
New York NY Transitional Finance Authority Sub Series 2A (Tax Revenue, Dexia Credit Local LIQ) ø		0.85			11-1-2022		6,850,000		6,850,000
New York NY Transitional Finance Authority Sub Series B-1 (Tax Revenue)		5.00			11-1-2028		1,000,000		1,185,730
New York NY Trust for Cultural Resources Series A-1 (Miscellaneous Revenue)		5.00			7-1-2031		2,475,000		2,720,198
New York NY Water Finance Authority Sub Series BB-1 (Water & Sewer Revenue, Landesbank Hessen-Thüringen SPA) ø		0.64			6-15-2039		6,500,000		6,500,000
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A##		4.20			2-1-2017		14,910,000		14,904,036
New York Urban Development Corporation Personal Income Tax Series A (Tax Revenue)		5.00			3-15-2031		3,815,000		4,405,028
New York Urban Development Corporation Personal income Tax Series A (Tax Revenue)		5.00			3-15-2032		5,000,000		5,847,400
New York Urban Development Corporation Series D (Miscellaneous Revenue, AGC Insured)		5.50			1-1-2019		3,000,000		3,240,210
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2020		1,160,000		1,249,796
Niagara NY Area Development Corporation (Education Revenue)		5.00			5-1-2022		1,350,000		1,489,199
Oyster Bay NY RAN (GO Revenue)		3.75			3-31-2017		2,000,000		2,004,580

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 17

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Port Authority New York & New Jersey Special Obligation (Airport Revenue)		5.00	%		12-1-2020	$	5,000,000	$	5,493,250
Suffolk NY Public Improvement Serial Bond Series A (GO Revenue, AGM Insured)		3.00			6-1-2019		1,180,000		1,217,052
Suffolk NY Tobacco Asset Securitization Corporation Tobacco Settlement Series B (Tobacco Revenue)		4.00			6-1-2022		420,000		448,153
Suffolk NY Tobacco Asset Securitization Corporation Tobacco Settlement Series B (Tobacco Revenue)		5.00			6-1-2023		500,000		553,735
Troy NY Capital Resource Corporation Rensselaer Polytechnic Series B (Education Revenue)		5.00			9-1-2020		1,430,000		1,578,849
Upper Mohawk Valley NY Regional Water Finance Authority Series A (Water & Sewer Revenue, AGC Insured)		5.00			4-1-2018		435,000		445,397
Utility Debt Securitization Authority New York (Utilities Revenue)		5.00			12-15-2032		1,250,000		1,451,038
Yonkers NY Series A (GO Revenue, AGM Insured)		5.00			10-1-2024		1,000,000		1,112,050
									200,214,632
North Carolina: 0.64%
Craven County NC Certificate of Participation (Miscellaneous Revenue, National Insured)		5.00			6-1-2023		4,400,000		4,474,668
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2020		3,400,000		3,763,630
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2022		250,000		285,120
New Hanover County NC Regional Medical Center (Health Revenue)		5.00			10-1-2023		1,000,000		1,150,390
North Carolina Grant Anticipation Vehicle Bond (Miscellaneous Revenue)		5.00			3-1-2029		2,470,000		2,833,535
Onslow County NC Limited Obligation Series A (Miscellaneous Revenue)		4.00			6-1-2022		90,000		98,350
Pitt County NC Certificate of Participation School Facilities Project Prerefunded Balance (Miscellaneous Revenue, National Insured)		5.00			4-1-2023		1,185,000		1,197,407
Pitt County NC Certificate of Participation School Facilities Project Unrefunded Balance (Miscellaneous Revenue, National Insured)		5.00			4-1-2023		1,570,000		1,586,438
									15,389,538
North Dakota: 0.23%
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		5,000,000		5,005,100
North Dakota Housing Finance Agency Series D (Housing Revenue)		4.50			1-1-2029		590,000		609,252
									5,614,352
Ohio: 1.54%
Cincinnati OH City School District Improvement Project Certificate of Participation (Miscellaneous Revenue)		5.00			12-15-2024		4,815,000		5,552,417
Cincinnati OH City School District Improvement Project Certificate of Participation (Miscellaneous Revenue)		5.00			12-15-2025		2,095,000		2,409,543
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		581,490
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		694,512
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		1,429,088
Columbus OH Various Purposes Series 2 (GO Revenue)		5.00			7-1-2026		1,775,000		2,174,393
Columbus OH Various Purposes Series A (GO Revenue)		4.00			8-15-2024		1,190,000		1,336,394
JobsOhio Beverage System Statewide Liquor Profits Senior Lien Series A (Miscellaneous Revenue)		5.00			1-1-2022		2,500,000		2,832,425
Kent University OH General Receipts Series B (Education Revenue, AGC Insured)		5.00			5-1-2018		1,165,000		1,222,644
Ohio Air Quality Development Authority Series A (Utilities Revenue) ±		3.75			12-1-2023		2,000,000		836,940

18 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Ohio (continued)
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63	%		10-1-2033	$	1,750,000	$	731,605
Ohio Air Quality Development Authority Series B (Industrial Development Revenue) ±		3.63			12-1-2033		2,500,000		1,045,050
Ohio Building Authority Series A (Miscellaneous Revenue)		5.00			10-1-2024		1,000,000		1,108,740
Ohio Turnpike Commission Junior Lien Infrastructure Projects Series A-1 (Transportation Revenue)		5.25			2-15-2029		1,000,000		1,150,580
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series A (Water & Sewer Revenue) ±		3.75			6-1-2033		10,000,000		4,180,200
Ohio Water Development Authority Pollution Control First Energy Nuclear Generation Project Series B (Industrial Development Revenue) ±		3.63			10-1-2033		3,150,000		1,316,889
Ohio Water Development Authority Series A (Industrial Development Revenue) ±		3.75			7-1-2033		15,000,000		6,270,450
RiverSouth Authority Ohio Lazarus Building Redevelopment Series A (Miscellaneous Revenue)		5.75			12-1-2027		950,000		971,898
Summit County OH Port Authority University of Akron Student Housing Project (Education Revenue)		5.25			1-1-2024		685,000		776,441
Summit County OH Port Authority University of Akron Student Housing Project (Education Revenue)		5.25			1-1-2024		315,000		348,179
									36,969,878
Oklahoma: 2.01%
Carter County OK Public Facilities Authority Educational Facilities Plainview Public School Project (Miscellaneous Revenue)		5.00			12-1-2026		1,000,000		1,169,920
Carter County OK Public Facilities Authority Educational Facilities Plainview Public School Project (Miscellaneous Revenue)		5.00			12-1-2027		1,000,000		1,162,620
Carter County OK Public Facilities Authority Educational Facilities Plainview Public School Project (Miscellaneous Revenue)		5.00			12-1-2028		1,285,000		1,486,732
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2019		1,325,000		1,390,309
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2022		2,595,000		2,787,367
Claremore OK Public Works Authority (Utilities Revenue)		4.00			6-1-2023		1,010,000		1,078,407
Creek County OK Educational Facilities Sapulpa Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2023		3,000,000		3,430,230
Cushing OK Educational Facilities Authority (Miscellaneous Revenue)		5.00			9-1-2022		2,210,000		2,525,809
Dewey County OK Educational Facilities Authority Seiling Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2026		1,230,000		1,444,881
Dewey County OK Educational Facilities Authority Seiling Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2027		1,240,000		1,447,898
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2018		820,000		863,862
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2019		860,000		926,469
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2020		455,000		497,411
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2026		1,000,000		1,139,350
Garvin County OK Educational Facilities Authority Lindsay Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2027		1,245,000		1,412,764
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2023		1,000,000		1,145,390
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2024		1,075,000		1,240,636

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma (continued)
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00	%		9-1-2025	$	500,000	$	579,265
Grady County OK Educational FacilitiesTuttle Public Schools Project (Miscellaneous Revenue)		5.00			9-1-2028		1,160,000		1,324,163
McGee Creek OK Authority (Water & Sewer Revenue, National Insured)		6.00			1-1-2023		1,310,000		1,433,140
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2020		1,000,000		1,085,130
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2021		1,000,000		1,096,220
Muskogee OK Industrial Trust Educational Facilities (Miscellaneous Revenue)		5.00			9-1-2022		1,000,000		1,105,710
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2026		1,495,000		1,730,149
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2027		1,140,000		1,311,946
Oklahoma City OK Public Property Authority (Tax Revenue)		5.00			10-1-2028		1,265,000		1,447,173
Oklahoma Development Finance Authority (Miscellaneous Revenue)		4.00			6-1-2023		1,270,000		1,387,856
Oklahoma Development Finance Authority (Miscellaneous Revenue)		5.00			6-1-2023		1,230,000		1,416,837
Oklahoma Development Finance Authority Higher Education Master Real Property Series B (Miscellaneous Revenue)		4.00			6-1-2024		1,270,000		1,389,101
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2019		1,500,000		1,605,375
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2021		1,185,000		1,284,054
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2022		520,000		564,169
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2025		1,200,000		1,292,676
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2026		1,250,000		1,342,475
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2027		1,000,000		1,070,740
Tulsa OK Airports Improvement Trust Series D (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2028		500,000		534,330
									48,150,564
Oregon: 0.38%
Medford OR Hospital Facilities Authority (Health Revenue)		5.00			10-1-2020		1,155,000		1,264,494
Oregon Facilities Authority Samaritan Health Services Project Series A (Health Revenue)		5.00			10-1-2026		1,500,000		1,703,055
Washington County OR Full Faith & Credit Obligations Series B (GO Revenue)		5.00			3-1-2022		5,345,000		6,152,897
									9,120,446
Pennsylvania: 8.77%
Adams County PA IDA Gettysburg College Project (Education Revenue)		5.00			8-15-2024		1,500,000		1,631,340
Adams County PA IDA Gettysburg College Project (Education Revenue)		5.00			8-15-2025		1,500,000		1,626,990
Allegheny County PA Hospital Development Authority Series B (Health Revenue, National Insured)		6.00			7-1-2025		2,605,000		3,238,614
Allegheny County PA Moon Area School District Series A (GO Revenue)		5.00			11-15-2024		3,400,000		3,959,878
Allegheny County PA Series 72 (GO Revenue)		5.25			12-1-2033		4,000,000		4,590,800
Allegheny County PA Series 75 (GO Revenue)		5.00			11-1-2026		2,500,000		2,956,525
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		5,000,000		2,090,100
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		2.22			11-1-2039		10,000,000		10,077,500

20 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Bucks County PA Water & Sewer Authority Water System (Water & Sewer Revenue, AGM Insured)		5.00	%		12-1-2026	$	2,400,000	$	2,679,408
Central Dauphin PA School District (GO Revenue)		5.00			2-1-2029		825,000		961,241
Central Dauphin PA School District (GO Revenue)		5.00			2-1-2030		1,110,000		1,282,716
Central Greene PA School District Series B (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			2-15-2019		865,000		922,998
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		5.65			12-15-2017		100,000		101,715
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2025		1,340,000		1,521,248
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2026		1,370,000		1,547,018
Cumberland County PA Diakon Lutheran Social Ministries Project (Health Revenue)		5.00			1-1-2027		1,225,000		1,371,339
Delaware County PA Vocational & Technical School Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.25			11-1-2033		2,000,000		2,245,960
Johnstown PA School District (GO Revenue, AGM Insured)		5.00			8-1-2024		2,730,000		3,019,162
Lancaster County PA Solid Waste Management Authority Series A (Resource Recovery Revenue)		5.25			12-15-2028		5,665,000		6,449,772
Lycoming County PA Authority Pennsylvania College of Technology (Education Revenue)		5.50			7-1-2026		4,000,000		4,522,640
Millcreek Richland Joint Authority Pennsylvania Series B (Water & Sewer Revenue, AGC Insured)		4.70			8-1-2017		195,000		197,525
Northeastern Pennsylvania Hospital & Education Authority Series A (Education Revenue)		5.00			3-1-2026		515,000		569,312
Northeastern Pennsylvania Hospital & Education Authority Series A (Education Revenue)		5.00			3-1-2028		660,000		723,848
Pennsylvania Certificate of Participation Retained Basic Lease Payment (Miscellaneous Revenue, AGM Insured)		5.00			11-1-2022		3,015,000		3,371,132
Pennsylvania Certificate of Participation Retained Basic Lease Payment (Miscellaneous Revenue, AGM Insured)		5.00			11-1-2023		1,900,000		2,137,785
Pennsylvania Certificate of Participation Retained Basic Lease Payment (Miscellaneous Revenue, AGM Insured)		5.00			11-1-2024		1,660,000		1,880,929
Pennsylvania HEFAR Series AQ (Education Revenue)		5.00			6-15-2023		6,090,000		6,998,872
Pennsylvania HEFAR Series AR (Education Revenue)		5.00			6-15-2025		1,000,000		1,169,520
Pennsylvania HEFAR Series AS (Education Revenue)		5.00			6-15-2024		1,530,000		1,775,733
Pennsylvania HEFAR Series AS (Education Revenue)		5.00			6-15-2025		1,575,000		1,841,994
Pennsylvania HEFAR Series AS (Education Revenue)		5.00			6-15-2027		2,190,000		2,559,606
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2019		880,000		908,090
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2020		590,000		609,063
Pennsylvania HEFAR Series LL1 (Education Revenue)		5.00			11-1-2022		1,310,000		1,347,951
Pennsylvania Hills PA School District (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			10-1-2021		1,460,000		1,538,066
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2024		2,000,000		2,147,680
Pennsylvania Public School Building Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			5-15-2021		500,000		532,830
Pennsylvania Public School Building Authority (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		4.00			5-15-2022		1,000,000		1,059,350
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2020		5,600,000		5,983,880
Pennsylvania Public School Building Authority (Education Revenue)		5.00			5-1-2023		2,185,000		2,486,770
Pennsylvania Public School Building Authority (Education Revenue)		5.00			6-15-2025		2,265,000		2,576,619
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2029		1,000,000		1,059,900
Pennsylvania Public School Building Authority Series B (Miscellaneous Revenue, AGM Insured)		5.00			6-1-2029		2,000,000		2,223,060

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00	%		12-1-2024	$	1,250,000	$	1,441,038
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2025		1,250,000		1,453,638
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2026		1,250,000		1,449,613
Pennsylvania Public School Building Authority Series B-2 (Miscellaneous Revenue, Build America Mutual Assurance Company Insured)		5.00			12-1-2027		1,010,000		1,165,591
Pennsylvania Series 2 (GO Revenue)		5.00			4-15-2023		2,000,000		2,161,480
Pennsylvania Turnpike Commission Sub Series B (Transportation Revenue)		5.00			6-1-2028		3,000,000		3,381,240
Pennsylvania Turnpike Commission Sub Series B (Transportation Revenue)		5.00			6-1-2029		7,000,000		7,850,150
Pennsylvania Turnpike Commission Sub Series C (Transportation Revenue, AGM Insured)		6.25			6-1-2033		1,350,000		1,678,793
Pennsylvania Turnpike Commission Sub Series E (Transportation Revenue)		6.38			12-1-2038		2,000,000		2,345,320
Philadelphia PA Authority for Industrial Development (Education Revenue)		6.13			6-15-2023		1,305,000		1,391,078
Philadelphia PA Authority for Industrial Development (Education Revenue)		5.88			6-15-2022		1,000,000		1,060,160
Philadelphia PA Authority for Industrial Development (Education Revenue)		7.00			5-1-2026		740,000		770,088
Philadelphia PA Hospital & HEFAR Refunding Bond Temple University Health System Series B (Health Revenue)		6.25			7-1-2023		1,475,000		1,498,821
Philadelphia PA IDA Master Charter School AID (Education Revenue)		5.00			8-1-2020		420,000		446,397
Philadelphia PA IDA West Philadelphia Achievement Charter Elementary School Project (Education Revenue)		6.25			5-1-2021		285,000		292,570
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		8,065,000		8,426,554
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2021		2,200,000		2,406,646
Philadelphia PA School District Refunding Bond Series D (GO Revenue)		5.00			9-1-2022		3,750,000		4,121,775
Philadelphia PA School District Refunding Bond Series E (GO Revenue)		5.25			9-1-2021		1,490,000		1,600,931
Philadelphia PA School District Refunding Bond Series F (GO Revenue)		5.00			9-1-2028		5,000,000		5,491,350
Philadelphia PA School District Refunding Bond Series F (GO Revenue)		5.00			9-1-2029		5,000,000		5,458,900
Philadelphia PA School District Refunding Bond Series F (GO Revenue)		5.00			9-1-2031		1,240,000		1,347,892
Philadelphia PA School District Refunding Bond Series F (GO Revenue)		5.00			9-1-2032		1,000,000		1,081,990
Philadelphia PA Series A (GO Revenue)		5.00			9-15-2021		7,000,000		7,874,160
Philadelphia PA Series A (GO Revenue)		5.00			8-1-2024		1,000,000		1,151,120
Philadelphia PA Series A (GO Revenue)		5.00			7-15-2026		3,000,000		3,406,230
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2028		2,590,000		2,974,719
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2029		4,410,000		5,051,611
Philadelphia PA Series A (GO Revenue)		5.25			7-15-2032		4,380,000		4,971,563
Pittsburgh PA Moon Area School District Series A (GO Revenue)		5.00			11-15-2029		1,000,000		1,130,060
Pittsburgh PA Series A (GO Revenue)		4.00			9-1-2022		1,000,000		1,092,260
Pittsburgh PA Series A (GO Revenue)		5.00			9-1-2022		2,060,000		2,359,091
Pittsburgh PA Series A (GO Revenue)		5.00			9-1-2023		3,810,000		4,345,038
Reading PA School District (GO Revenue)		5.00			4-1-2021		3,120,000		3,378,960
State Public School Building Authority City of Harrisburg Project Series A (Miscellaneous Revenue, AGM Insured)		5.00			12-1-2028		3,500,000		4,014,115
State Public School Building Authority City of Harrisburg Project Series A (Miscellaneous Revenue, AGM Insured)		5.00			12-1-2033		4,425,000		4,977,107
State Public School Building Authority Pennsylvania Chester Upland School District Project Series B (Miscellaneous Revenue)		5.25			9-15-2030		2,000,000		2,186,700
									209,731,228

22 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Rhode Island: 0.19%
Providence RI Series A (GO Revenue, AGM Insured)		4.00	%		1-15-2018	$	2,115,000	$	2,165,041
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		2,461,884
									4,626,925
South Carolina: 1.43%
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		35,996		35,266
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		39,781		35,792
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2021		1,000,000		1,116,650
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2022		1,250,000		1,412,725
Laurens County SC Education Assistance for District #55 (Miscellaneous Revenue)		5.00			12-1-2025		1,000,000		1,156,950
Piedmont SC Municipal Power Agency Series A-3 (Utilities Revenue)		5.25			1-1-2019		3,500,000		3,632,650
Scago SC Educational Facilities Corporation For Sumter County School District 17 (Miscellaneous Revenue)		4.00			12-1-2019		1,000,000		1,049,400
Scago SC Educational Facilities Corporation For Sumter County School District 17 (Miscellaneous Revenue)		5.00			12-1-2022		1,720,000		1,924,628
South Carolina Education Assistance Authority Student Loan Series I (Education Revenue)		5.00			10-1-2024		2,500,000		2,621,750
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2028		700,000		815,087
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2030		1,885,000		2,174,800
South Carolina Jobs EDA Furman University Project (Education Revenue)		5.00			10-1-2031		2,155,000		2,479,155
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.00			11-1-2033		1,000,000		1,066,830
South Carolina Public Service Authority Series A (Utilities Revenue)		5.00			12-1-2037		12,215,000		13,611,907
University of South Carolina Athletic Facilities Series A (Education Revenue)		5.00			5-1-2027		855,000		1,016,569
									34,150,159
South Dakota: 0.04%
Rapid City SD Airport Project (Airport Revenue)		6.25			12-1-2026		920,000		993,674
Tennessee: 0.29%
Chattanooga TN Health Educational & Housing Facilities University of Tennessee at Chattanooga Project (Housing Revenue)		5.00			10-1-2023		750,000		831,728
Franklin County TN HEFA (Education Revenue)		4.00			9-1-2024		250,000		269,150
Franklin County TN HEFA (Education Revenue)		5.00			9-1-2030		560,000		626,640
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		345,000		365,717
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		2,140,000		2,189,862
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2018		1,400,000		1,478,092
White County TN (GO Revenue)		4.05			6-1-2020		1,010,000		1,067,540
									6,828,729
Texas: 8.92%
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2023		3,805,000		4,469,505
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2024		3,970,000		4,725,610
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2025		2,050,000		2,463,670
Austin TX Independent School District Series B (GO Revenue)		5.00			8-1-2026		1,450,000		1,731,924
Austin TX Refunding Bond (Utilities Revenue, National Insured)		5.25			5-15-2025		1,400,000		1,650,586
Bexar County TX Combination Tax Certificate of Obligation (GO Revenue)		5.00			6-15-2024		1,000,000		1,180,380
Bexar County TX Limited Tax Refunding Bond (GO Revenue)		4.00			6-15-2032		2,000,000		2,136,080

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Bexar County TX Limited Tax Refunding Bond (GO Revenue)		5.00	%		6-15-2026	$	2,140,000	$	2,552,635
Bexar County TX Limited Tax Refunding Bond (GO Revenue)		5.00			6-15-2027		3,205,000		3,795,617
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2026		2,190,000		2,515,478
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2029		1,500,000		1,695,255
Brownsville TX Utilities System Refunding Bond (Utilities Revenue)		5.00			9-1-2030		2,500,000		2,818,050
Central Texas Regional Mobility Authority Prerefunded Senior Lien (Transportation Revenue)		5.75			1-1-2019		985,000		1,069,533
Central Texas Regional Mobility Authority Series B (Transportation Revenue) ±		5.00			1-1-2045		8,000,000		8,627,760
Central Texas Regional Mobility Authority Unrefunded Senior Lien (Transportation Revenue)		5.75			1-1-2019		325,000		349,674
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2023		1,350,000		1,576,746
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2026		1,000,000		1,194,230
Collin County TX Unlimited Tax Road & Refunding Bond (GO Revenue)		5.00			2-15-2027		1,300,000		1,536,951
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2022		1,515,000		1,680,029
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2023		1,395,000		1,567,129
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2026		1,000,000		1,134,170
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2030		1,130,000		1,245,565
Crane County TX Water District Unlimited Tax Bond (GO Revenue)		5.00			2-15-2031		1,000,000		1,098,570
Cypress-Fairbanks TX Independent School District Series B-2 (GO Revenue) ±		3.00			2-15-2040		11,010,000		11,289,764
Dallas County TX Combination Tax and Parking Garage Certification of Obligation (GO Revenue)		5.00			8-15-2024		5,600,000		6,679,456
Del Rio TX Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2023		720,000		779,681
Del Rio TX Refunding Bond (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			6-1-2024		745,000		807,535
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2023		1,990,000		2,343,703
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2024		1,145,000		1,367,691
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2025		1,000,000		1,176,190
Denton County TX Permanent Improvement & Refunding Bond (GO Revenue)		5.00			7-15-2030		1,000,000		1,170,100
El Paso County TX Hospital District (GO Revenue)		5.00			8-15-2028		2,045,000		2,231,565
El Paso County TX Refunding Bond Series A (GO Revenue)		5.00			2-15-2031		2,000,000		2,289,680
El Paso County TX Refunding Bond Series A (GO Revenue)		5.00			2-15-2032		2,120,000		2,416,228
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		4.00			3-1-2026		755,000		834,396
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2020		650,000		716,112
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2021		510,000		574,316
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2022		1,000,000		1,144,260
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2023		620,000		720,223
Flower Mound, Denton & Tarrant Counties TX Refunding Bond (GO Revenue)		5.00			3-1-2024		1,660,000		1,955,663
Fort Worth TX Independent School District Unlimited Tax Refunding and School Building Bond (GO Revenue)		5.00			2-15-2026		3,000,000		3,640,890
Galveston TX Wharves & Terminal (Airport Revenue)		5.00			2-1-2026		2,000,000		2,139,640
Georgetown TX Independent School District (GO Revenue) ±		2.00			8-1-2034		1,630,000		1,638,835
Harris County TX Flood Control District Series A (GO Revenue)		5.00			10-1-2025		1,500,000		1,783,680
Harris County TX Tax Road Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		8,445,000		9,989,591
Harris County TX Tax Road Refunding Bond Series A (GO Revenue)		5.00			10-1-2025		4,215,000		5,082,784
Harris County TX Toll Road Project Series C (GO Revenue, AGM Insured)		5.25			8-15-2027		4,000,000		4,904,520
Hays County TX Refunding Bond (GO Revenue)		5.00			2-15-2023		1,750,000		2,018,345
Houston TX Airport Senior Lien Series A (Airport Revenue)		5.00			7-1-2025		1,000,000		1,051,970
Houston TX Higher Education Finance Corporation Series A (Education Revenue)		4.00			2-15-2022		740,000		742,353
Houston TX Independent School District Limited Tax (GO Revenue)		4.25			2-15-2021		5,000,000		5,018,450

24 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Houston TX Utilities Systems Series A (Water & Sewer Revenue)		5.25	%		11-15-2031	$	3,000,000	$	3,351,930
Lower Colorado River TX Authority (Utilities Revenue)		5.50			5-15-2031		2,500,000		2,899,425
Midland County TX PFFA Compass Pointe Apartments (Housing Revenue)		1.25			3-1-2018		2,500,000		2,495,975
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2027		1,880,000		2,122,896
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2029		2,390,000		2,640,544
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2030		1,500,000		1,676,280
Midtown TX RDA (Tax Revenue, Build America Mutual Assurance Company Insured)		5.25			1-1-2031		1,000,000		1,115,200
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		1,372,986
North Texas Higher Education Authority Incoming Student Loan Series A-2 (Education Revenue) ±		1.75			7-1-2030		6,655,000		6,565,091
Northside TX Independent School District Refunding Bond (GO Revenue) ±		1.20			8-1-2040		590,000		590,077
Northwest TX Independent School District Refunding Bond (GO Revenue)		5.00			2-15-2030		4,000,000		4,632,280
Nueces River TX Water Supply Facility Corpus Christi Lake Texana Project (Water & Sewer Revenue)		5.00			7-15-2026		1,000,000		1,188,420
Nueces River TX Water Supply Facility Corpus Christi Lake Texana Project (Water & Sewer Revenue)		5.00			7-15-2027		1,250,000		1,477,175
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series B (Resource Recovery Revenue) ø		0.79			12-1-2039		5,000,000		5,000,000
San Antonio TX Junior Lien Series B (Utilities Revenue) ±		1.75			12-1-2027		5,000,000		5,009,500
Texas Independent School District Refunding Bond (GO Revenue)		5.00			8-15-2025		2,260,000		2,729,967
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.19			9-15-2017		1,815,000		1,808,738
Texas Municipal Gas Acquisition & Supply Corporation III Gas Supply Series 2012 (Utilities Revenue)		5.00			12-15-2021		3,945,000		4,361,474
Texas Municipal Gas Acquisition & Supply Corporation Series B (Utilities Revenue)		5.00			12-15-2022		5,000,000		5,447,850
Texas Private Activity Surface Transportation Corporation Project (Transportation Revenue)		7.50			6-30-2032		2,000,000		2,334,600
Texas Private Activity Surface Transportation Corporation Project (Transportation Revenue)		7.50			6-30-2033		2,000,000		2,326,860
Texas Private Activity Surface Transportation Corporation Project Senior Lien Note (Transportation Revenue)		7.50			12-31-2031		3,745,000		4,314,652
Texas SA Energy Acquisition Public Facility Corporation Gas Supply (Utilities Revenue)		5.50			8-1-2019		1,465,000		1,588,939
Texas Transportation Commission Highway Fund Series A (Tax Revenue)		5.00			10-1-2025		3,250,000		3,924,798
Texas Woman’s University Financing System (Education Revenue)		4.00			7-1-2020		1,000,000		1,071,190
University of Houston Texas (Education Revenue)		5.00			2-15-2024		2,700,000		2,890,863
University of Houston Texas Series B (Education Revenue)		5.25			7-1-2026		4,225,000		5,190,413
University of Texas Board of Regents Series D (Education Revenue)		5.00			8-15-2026		2,000,000		2,438,040
Weatherford TX Utility System Refunding & Improvement Bond (Utilities Revenue, AGM Insured)		5.00			9-1-2025		1,000,000		1,165,190
Weatherford TX Utility System Refunding & Improvement Bond (Utilities Revenue, AGM Insured)		5.00			9-1-2026		375,000		433,721
									213,487,842
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		2,152,299
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2020		250,000		264,458
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2021		400,000		426,344

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Intermediate Tax/AMT-Free Fund 25

Security name	Interest rate			Maturity date		Principal		Value
Utah (continued)
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00	%		4-15-2022	$	400,000	$	427,388
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2023		400,000		428,728
Utah Charter School Finance Authority Refunding Bond (Education Revenue, CSCE Insured)		4.00			4-15-2024		450,000		481,298
									4,180,515
Virgin Islands: 0.29%
Virgin Islands PFA Matching Funding Loan Series A (Miscellaneous Revenue)		6.75			10-1-2019		1,920,000		1,900,358
Virgin Islands PFA Subordinated Lien Series C (Tobacco Revenue)		5.00			10-1-2017		5,000,000		4,991,950
									6,892,308
Virginia: 1.06%
Greater Richmond VA Convention Center (Tax Revenue)		5.00			6-15-2025		1,000,000		1,175,370
Marquis VA CDA CAB Series C (Tax Revenue) (i)¤		0.00			9-1-2041		1,772,000		224,105
Marquis VA CDA CCAB (Tax Revenue) 144A		7.50			9-1-2045		386,000		248,252
Marquis VA CDA Series B (Tax Revenue) (i)		5.63			9-1-2041		1,274,000		978,050
Virginia College Building Authority Educational Facilities Series A (Education Revenue)		3.00			9-1-2025		13,630,000		14,143,442
Virginia Resources Authority Pooled Financing Program Series A (Miscellaneous Revenue)		4.00			11-1-2025		2,370,000		2,654,850
Virginia Resources Authority Pooled Financing Program Series A (Miscellaneous Revenue)		5.00			11-1-2027		1,320,000		1,607,206
Virginia Small Business Financing Authority (Education Revenue)		5.25			10-1-2029		3,000,000		3,464,250
Watkins Centre VA CDA (Miscellaneous Revenue)		5.40			3-1-2020		757,000		758,204
									25,253,729
Washington: 3.23%
Energy Northwest Washington Wind Project (Utilities Revenue)		5.00			7-1-2022		1,185,000		1,342,629
Kent WA Limited Tax Refunding Bond (GO Revenue)		5.00			12-1-2031		1,000,000		1,165,710
King County WA Federal Way School District #210 (GO Revenue, AGM Insured)		4.00			12-1-2023		4,085,000		4,537,169
King County WA Public Hospital District #1 Valley Medical Center Refunding Bond (GO Revenue) %%		5.00			12-1-2029		1,600,000		1,799,616
King County WA Public Hospital District #1 Valley Medical Center Refunding Bond (GO Revenue) %%		5.00			12-1-2031		6,665,000		7,441,406
King County WA Public Hospital District #1 Valley Medical Center Refunding Bond (GO Revenue) %%		5.00			12-1-2032		2,905,000		3,228,065
King County WA Public Hospital District #1 Valley Medical Center Refunding Bond (GO Revenue) %%		5.00			12-1-2033		7,045,000		7,785,359
Lewis County WA Public Utility District Refunding (Utilities Revenue)		5.25			4-1-2032		6,115,000		7,124,770
Seattle WA Refunding Bond Series A (GO Revenue)		5.00			6-1-2024		6,345,000		7,596,171
Tacoma WA Solid Waste Refunding Bond Series B (Resource Recovery Revenue)		5.00			12-1-2027		620,000		734,161
Tacoma WA Solid Waste Refunding Bond Series B (Resource Recovery Revenue)		5.00			12-1-2028		1,455,000		1,715,081
Tacoma WA Solid Waste Refunding Bond Series B (Resource Recovery Revenue)		5.00			12-1-2029		1,525,000		1,789,222
Washington EDFA (Education Revenue)		5.00			6-1-2028		1,000,000		1,152,290
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2023		4,000,000		4,549,440
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2026		2,250,000		2,611,148
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2027		1,050,000		1,205,726
Washington HCFR Fred Hutchinson Cancer Research Center (Health Revenue)		5.00			1-1-2028		1,350,000		1,542,605
Washington Motor Vehicle Fuel Tax Refunding Bond Series D (Miscellaneous Revenue)		5.00			7-1-2031		5,830,000		6,739,363
Washington Office Building Refunding Bond (Miscellaneous Revenue)		5.00			7-1-2026		2,750,000		3,176,003

26 Wells Fargo Intermediate Tax/AMT-Free Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Washington (continued)
Washington TES Properties (Miscellaneous Revenue)		5.50	%		12-1-2029	$	1,400,000	$	1,534,834
Washington Various Purposes Refunding Bond Series B (GO Revenue)		5.00			7-1-2028		7,130,000		8,454,825
									77,225,593
West Virginia: 0.29%
West Virginia School Building Authority (Miscellaneous Revenue)		5.25			7-1-2020		1,100,000		1,166,154
West Virginia School Building Authority Capital Improvement Bond Series A (Miscellaneous Revenue)		5.00			7-1-2026		1,520,000		1,791,001
West Virginia School Building Authority Capital Improvement Bond Series A (Miscellaneous Revenue)		5.00			7-1-2027		1,595,000		1,874,715
West Virginia School Building Authority Capital Improvement Bond Series A (Miscellaneous Revenue)		5.00			7-1-2029		1,755,000		2,041,749
									6,873,619
Wisconsin: 0.71%
Wisconsin HEFA Bellin Memorial Hospital Obligated Group (Health Revenue, Ambac Insured)		5.50			2-15-2019		410,000		421,222
Wisconsin HEFA Mercy Alliance Incorporated Project Series A (Health Revenue)		5.00			6-1-2019		1,050,000		1,080,419
Wisconsin HEFA Series A (Health Revenue)		5.00			7-15-2021		3,500,000		3,928,400
Wisconsin HEFA Series A (Health Revenue)		5.00			11-15-2023		3,500,000		4,069,310
Wisconsin HEFA Series M (Health Revenue, National Insured) ±(m)(n)		1.10			6-1-2019		1,000,000		975,000
Wisconsin PFA Charter School Voyager Foundation Incorporate Project Series A (Education Revenue)		6.00			10-1-2032		1,475,000		1,556,110
Wisconsin PFA KU Campus Development Corporation Central District Development Project (Education Revenue)		5.00			3-1-2032		4,315,000		4,898,431
									16,928,892
Total Municipal Obligations (Cost $2,342,745,800)									2,364,005,422

Total investments in securities (Cost $2,342,745,800) *	98.80	%		2,364,005,422
Other assets and liabilities, net	1.20			28,748,493
Total net assets	100.00	%	$	2,392,753,915

¤ 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.

## 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.

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end.

(s) The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the security.

(i) Illiquid security

%% 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.

* Cost for federal income tax purposes is $2,342,808,131 and unrealized gains (losses) consists of:

Gross unrealized gains	$	62,212,521
Gross unrealized losses		(41,015,230	)
Net unrealized gains	$	21,197,291

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 0.61%
Consumer Discretionary: 0.61%
Diversified Consumer Services: 0.61%
Toll Road Investors Partnership II 144A¤		0.00	%		2-15-2028	$	30,780,000	$	15,545,778
Total Corporate Bonds and Notes (Cost $15,840,313)									15,545,778
Municipal Obligations: 99.25%
Alabama: 2.05%
Alabama Federal Aid Highway Finance Authority Series A (Tax Revenue)		5.00			9-1-2035		19,000,000		22,029,740
Alabama State University General Tuition and Fee (Education Revenue, Syncora Guarantee Incorporated Insured)		5.25			8-1-2032		10,520,000		10,024,403
Birmingham AL CAB Series A1 (GO Revenue) ±		0.00			3-1-2045		3,000,000		2,955,900
Jefferson County AL CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2025		710,000		506,983
Jefferson County AL CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2026		3,000,000		2,035,080
Jefferson County AL CAB Series B (Water & Sewer Revenue, AGM Insured) ¤		0.00			10-1-2029		4,115,000		2,277,488
Jefferson County AL Limited Obligation School District Series A (Tax Revenue, AGM Insured)		5.25			1-1-2018		775,000		781,402
Jefferson County AL Limited Obligation School District Series A (Tax Revenue)		5.25			1-1-2020		3,000,000		3,012,270
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		5,495,000		5,722,988
Jefferson County AL Warrants Series C (GO Revenue)		4.90			4-1-2021		3,170,000		3,299,938
									52,646,192
Alaska: 0.27%
Alaska International Airports System Series B (Airport Revenue)		5.00			10-1-2033		3,080,000		3,432,937
Alaska International Airports System Series B (Airport Revenue)		5.00			10-1-2034		3,225,000		3,579,137
									7,012,074
Arizona: 1.09%
Maricopa County AZ IDA Senior Living Facility Series 2016 (Health Revenue) 144A		6.00			1-1-2048		5,250,000		4,802,438
Maricopa County AZ PCR Series B (Utilities Revenue) ±		5.20			6-1-2043		100,000		106,828
Phoenix AZ IDA Legacy Traditional Schools Project Series A (Education Revenue) 144A		6.50			7-1-2034		2,000,000		2,226,740
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		7.75			7-1-2035		7,510,000		7,546,574
Pima County AZ IDA New Plan Learning Project Series A (Education Revenue)		8.13			7-1-2041		6,495,000		6,566,510
Pima County AZ IDA Noah Webster Schools-PIMA Project (Education Revenue)		7.00			12-15-2043		3,225,000		3,542,469
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.25			12-1-2020		1,000,000		1,082,590
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.38			12-1-2021		1,000,000		1,092,770
Tempe AZ IDA Friendship Village Project Series A (Health Revenue)		5.50			12-1-2022		1,000,000		1,088,220
									28,055,139
California: 7.52%
Alameda County CA Certificate of Participation (Miscellaneous Revenue, National Insured) ¤		0.00			6-15-2019		1,400,000		1,319,948
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		2,175,000		1,247,645
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		3,795,000		2,081,444
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2034		5,000,000		2,458,250
Alhambra CA Unified School District CAB Election of 2008 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2035		6,700,000		3,146,923

2 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Alhambra CA Unified School District CAB Series B (GO Revenue, AGC Insured) ¤		0.00	%		8-1-2031	$	7,500,000	$	4,300,275
Anaheim CA PFA Convention Center Expansion Project Series A (Miscellaneous Revenue)		5.00			5-1-2046		8,500,000		9,300,955
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2037		1,305,000		557,992
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2038		1,900,000		774,630
Bass Lake CA Unified Elementary School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2039		2,005,000		777,238
Bay Area CA Toll Authority Toll Bridge Series A (Transportation Revenue) ±		1.97			4-1-2036		28,000,000		28,106,960
California Municipal Finance Authority Charter School Albert Einstein Academies Project Series A (Miscellaneous Revenue)		7.13			8-1-2043		2,230,000		2,445,864
California Public Works Board Department of General Services Buildings 8 & 9A (Miscellaneous Revenue)		6.25			4-1-2034		4,000,000		4,432,920
California Public Works Board Judicial Council Project Series A (Miscellaneous Revenue)		5.00			3-1-2031		3,260,000		3,659,741
California Statewide CDA School Facility Aspire Public Schools (Education Revenue)		5.00			7-1-2020		525,000		547,654
California Statewide CDA Sutter Health Series A (Health Revenue)		6.00			8-15-2042		4,900,000		5,607,805
Cerritos CA Community College District CAB Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2027		1,000,000		701,670
Cerritos CA Community College District CAB Election of 2004 Series D (GO Revenue) ¤		0.00			8-1-2028		1,040,000		693,753
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2031		1,000,000		569,280
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2032		1,000,000		543,540
Colton CA Unified School District CAB Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2033		1,000,000		519,300
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2032		2,515,000		1,287,982
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2033		2,000,000		973,260
Compton CA Community College District CAB Election of 2002 Series C (GO Revenue) ¤		0.00			8-1-2036		510,000		210,079
Compton CA PFA Refunding Bond (Miscellaneous Revenue) 144A		4.00			9-1-2027		3,820,000		3,670,332
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2028		1,165,000		759,219
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2029		1,500,000		928,845
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2030		2,000,000		1,175,460
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2031		2,000,000		1,118,700
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2032		1,660,000		883,801
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2033		1,230,000		623,598
El Monte CA Union High School District CAB Election of 2008 (GO Revenue, AGM Insured) ¤		0.00			6-1-2034		1,615,000		778,931
Gilroy CA Unified School District Prerefunded CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2032		6,470,000		4,130,577
Gilroy CA Unified School District Unrefunded CAB Election of 2008 Series A (GO Revenue, AGC Insured) ¤		0.00			8-1-2032		3,330,000		1,796,202
Golden State Tobacco Securitization Corporation California Tobacco Settlement Revenue Series A (Miscellaneous Revenue)		5.00			6-1-2030		970,000		1,087,302
M-S-R California Energy Authority Gas Series B (Utilities Revenue)		6.13			11-1-2029		15,925,000		19,657,661
Montebello CA Unified School District CAB Election of 1998 (GO Revenue, National Insured) ¤		0.00			8-1-2024		1,130,000		888,259

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Montebello CA Unified School District CAB Election of 1998 (GO Revenue, National Insured) ¤		0.00	%		8-1-2027	$	2,775,000	$	1,897,129
Morongo Band of Mission Indians California Enterprise Casino Series B (Miscellaneous Revenue) 144A		6.50			3-1-2028		2,000,000		2,093,780
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.29			7-1-2027		27,660,000		24,622,655
Ontario Montclair CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2028		1,500,000		1,006,320
Ontario Montclair CA School District CAB (GO Revenue, AGC Insured) ¤		0.00			8-1-2030		2,000,000		1,223,520
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2027		2,095,000		1,477,289
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2028		4,450,000		3,015,365
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2029		4,520,000		2,935,650
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2030		6,725,000		4,186,447
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2031		2,185,000		1,305,144
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2032		2,000,000		1,146,360
Pasadena CA PFA CAB Rose Bowl Series A (Miscellaneous Revenue) ¤		0.00			3-1-2033		4,295,000		2,362,894
Richmond CA Joint Powers Financing Authority Civic Center Project Series A (Miscellaneous Revenue, AGC Insured)		5.88			8-1-2037		25,000		27,099
Richmond CA Joint Powers Financing Authority Point Potrero Series A (Miscellaneous Revenue)		6.25			7-1-2024		5,420,000		5,985,252
San Bernardino CA Unified School District Election of 2012 Series A (GO Revenue, AGM Insured)		5.00			8-1-2031		1,100,000		1,235,454
San Bernardino CA Unified School District Series A (GO Revenue, AGM Insured)		5.00			8-1-2026		1,100,000		1,264,824
San Bernardino CA Unified School District Series A (GO Revenue, AGM Insured)		5.00			8-1-2028		1,250,000		1,422,788
San Buenaventura CA Community Mental Health System (Health Revenue)		6.00			12-1-2019		1,040,000		1,133,548
San Buenaventura CA Community Mental Health System (Health Revenue)		6.25			12-1-2020		2,000,000		2,239,900
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2033		1,000,000		1,135,300
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2034		1,080,000		1,219,946
San Diego CA PFFA Capital Improvement Project Series A (Miscellaneous Revenue)		5.00			10-15-2035		1,000,000		1,125,520
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2031		2,000,000		1,150,380
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2032		1,500,000		817,980
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2033		1,000,000		516,820
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2034		2,000,000		976,220
San Diego CA Unified School District CAB Series C (GO Revenue) ¤		0.00			7-1-2035		1,500,000		698,955
Sylvan CA Unified School District CAB (GO Revenue, AGM Insured) ¤		0.00			8-1-2037		1,085,000		473,375
Temecula Valley CA Unified School District Election of 2012 Series B (GO Revenue, AGM Insured)		4.00			8-1-2045		7,000,000		7,052,920
West Contra Costa CA Unified School District CAB Series C (GO Revenue, AGM Insured) ¤		0.00			8-1-2029		3,000,000		1,835,160
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		1,033,807
Wiseburn CA School District CAB Election of 2010 Series B (GO Revenue, AGM Insured) ¤		0.00			8-1-2034		2,530,000		1,224,141
									193,605,937
Colorado: 2.89%
Colorado E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00			9-1-2020		9,385,000		8,516,512
Colorado E-470 Public Highway Authority CAB Series B (Transportation Revenue, National Insured) ¤		0.00			9-1-2022		4,600,000		3,906,458
Colorado ECFA Charter School American Academy Project (Education Revenue)		7.13			12-1-2033		2,200,000		2,481,028
Colorado ECFA Charter School Banning Lewis Ranch Academy Project Series A (Education Revenue)		6.00			12-15-2037		2,900,000		2,642,712

4 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Colorado (continued)
Colorado ECFA Charter School Banning Lewis Ranch Academy Project Series B-2 (Education Revenue)		7.00	%		12-15-2046	$	3,940,000	$	3,572,319
Colorado ECFA Charter School Community Leadership Academy (Education Revenue)		5.75			7-1-2019		555,000		568,620
Colorado ECFA Charter School Community Leadership Academy Second Campus Project (Education Revenue)		7.00			8-1-2033		1,330,000		1,504,696
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		5.50			10-1-2017		60,000		61,694
Colorado ECFA Charter School Monument Academy Project Series A (Education Revenue)		7.25			10-1-2039		500,000		551,695
Colorado ECFA Charter School Rocky Mountain Classical Academy Project Series A (Education Revenue)		7.50			9-1-2033		5,015,000		5,431,496
Colorado ECFA Charter School Rocky Mountain Classical Academy Project Series A (Education Revenue)		8.00			9-1-2043		5,930,000		6,583,605
Colorado ECFA Charter School Rocky Mountain Classical Academy Project Series A (Education Revenue)		8.13			9-1-2048		3,795,000		4,226,264
Colorado ECFA Charter School Twin Peaks Charter Academy (Miscellaneous Revenue)		6.50			3-15-2043		1,290,000		1,400,153
Colorado Health Facilities Authority Catholic Health Initiative Series 2009A (Health Revenue)		5.00			7-1-2039		14,100,000		14,452,923
Colorado Health Facilities Authority Catholic Health Initiatives Series D-1 (Health Revenue)		6.25			10-1-2033		4,000,000		4,287,640
Colorado High Performance Transportation Enterprise U.S. 36 and I- 25 Managed Lanes (Transportation Revenue)		5.75			1-1-2044		2,160,000		2,278,822
Colorado PFA Charter School Highline Academy Project (Education Revenue)		6.25			12-15-2020		280,000		292,830
Colorado PFA Charter School Highline Academy Project (Education Revenue)		6.75			12-15-2025		455,000		486,036
Colorado PFA Charter School Highline Academy Project (Education Revenue)		7.38			12-15-2040		4,010,000		4,345,838
Denver CO Convention Center Hotel Authority (Industrial Development Revenue)		5.00			12-1-2030		2,000,000		2,198,620
Denver CO Convention Center Hotel Authority (Industrial Development Revenue)		5.00			12-1-2031		1,500,000		1,639,770
Denver CO Convention Center Hotel Authority (Industrial Development Revenue)		5.00			12-1-2040		2,000,000		2,125,300
Eagle County CO Airport Terminal Corporation Airport Terminal Improvement Project Series A (Airport Revenue)		5.15			5-1-2017		35,000		35,057
Eagle County CO Airport Terminal Corporation Airport Terminal Improvement Project Series B (Airport Revenue)		5.25			5-1-2020		750,000		751,253
									74,341,341
Connecticut: 0.64%
Connecticut HFA Special Needs Housing Series 2 (Health Revenue, Ambac Insured)		5.25			6-15-2022		1,315,000		1,319,090
Connecticut Series A (Miscellaneous Revenue) ±		1.82			4-15-2019		4,050,000		4,069,683
Connecticut Series A (Miscellaneous Revenue) ±		1.97			4-15-2020		5,900,000		5,953,513
Hamden CT BAN (GO Revenue)		5.00			8-15-2026		1,235,000		1,363,885
Hartford CT Series B (GO Revenue)		5.00			4-1-2025		1,220,000		1,252,684
Hartford CT Series B (GO Revenue)		5.00			4-1-2026		1,470,000		1,501,737
Hartford CT Series B (GO Revenue)		5.00			4-1-2027		1,000,000		1,016,570
									16,477,162
Delaware: 0.38%
Delaware EDA Odyssey Charter School Incorporated Project Series A (Education Revenue) 144A		7.00			9-1-2045		7,500,000		7,480,575
Kent County DE Charter School Incorporated Project (Education Revenue)		7.38			5-1-2037		2,110,000		2,359,592
									9,840,167

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 5

Security name		Interest rate			Maturity date		Principal		Value
District of Columbia: 0.23%
District of Columbia Cesar Chavez Public Charter School (Education Revenue)			6.50	%		11-15-2021	$	3,545,000	$	3,794,320
District of Columbia Water & Sewer Authority Public Utilities Series A (Water & Sewer Revenue)	��		6.00			10-1-2035		2,000,000		2,165,780
										5,960,100
Florida: 3.90%
Championsgate FL Community Development District Capital Improvement Series A (Miscellaneous Revenue)			6.25			5-1-2020		1,045,000		1,044,770
CityPlace Florida Community Development District (Miscellaneous Revenue)			5.00			5-1-2022		1,000,000		1,089,850
Collier County FL School Board Refunding Certificate of Participation (Miscellaneous Revenue, AGM Insured)			5.25			2-15-2021		1,000,000		1,127,520
Crossings at Fleming Island Florida Community Development District Refunding Senior Lien Series A-1 (Miscellaneous Revenue)			2.25			5-1-2018		1,260,000		1,255,111
Crossings at Fleming Island Florida Community Development District Refunding Senior Lien Series A-1 (Miscellaneous Revenue)			2.63			5-1-2019		1,295,000		1,286,401
Daytona Beach FL Refunding & Improvement Project (Water & Sewer Revenue, AGM Insured)			5.00			11-1-2031		1,155,000		1,297,504
Daytona Beach FL Refunding & Improvement Project (Water & Sewer Revenue, AGM Insured)			5.00			11-1-2032		1,465,000		1,640,712
Florida Development Finance Corporation Educational Facilities Renaissance Charter School Project Series A (Education Revenue)			8.50			6-15-2044		13,290,000		15,214,924
Florida Housing Finance Corporation Journet Place Apartments Series 1 (Housing Revenue)			7.60			12-15-2047		805,000		966,298
Florida Housing Finance Corporation Villa Capri Phase III (Housing Revenue)			7.60			12-15-2042		2,705,000		2,941,715
Heritage Harbor Florida Community Development District (Miscellaneous Revenue)			7.75			5-1-2023		375,000		358,733
Holmes County FL Hospital Corporation Doctors Memorial Hospital Project (Health Revenue)			6.00			11-1-2038		2,500,000		2,475,750
Indigo FL Community Development District Series C (Miscellaneous Revenue) (i)(s)			1.40			5-1-2030		2,536,248		1,282,479
Lakeland FL Educational Facilities Authority Florida Southern College Project Series A (Education Revenue)			5.00			9-1-2025		530,000		588,168
Lakeland FL Educational Facilities Authority Florida Southern College Project Series A (Education Revenue)			5.00			9-1-2028		1,195,000		1,314,333
Lakeside Plantation FL Community Development District Series A (Miscellaneous Revenue)			6.95			5-1-2031		1,186,000		1,186,522
Marshall Creek Florida Community Development District (Miscellaneous Revenue)			6.32			5-1-2045		135,000		124,278
Marshall Creek Florida Community Development District (Miscellaneous Revenue) (s)			6.63			5-1-2032		2,110,000		2,067,167
Miami-Dade County FL School District (GO Revenue)			5.00			3-15-2046		25,000,000		27,392,750
Miami-Dade County FL Seaport AMT Series B (Airport Revenue)			6.00			10-1-2033		500,000		590,380
Midtown Miami FL Community Development District Parking Garage Project Series A (Miscellaneous Revenue)			5.00			5-1-2029		2,495,000		2,573,792
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)			5.00			10-1-2033		1,525,000		1,715,427
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)			5.00			10-1-2035		1,680,000		1,875,098
Orlando FL Capital Improvement Special Revenue Series B (Miscellaneous Revenue)			5.00			10-1-2036		1,765,000		1,964,851
Palm Beach County FL Public Improvement Series 2 (Miscellaneous Revenue)			5.38			11-1-2028		2,000,000		2,149,740
St. Petersburg FL Health Facilities Authority All Children’s Project Series A (Health Revenue)	��		6.50			11-15-2039		5,500,000		6,250,035

6 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Seminole County FL IDA Choices in Learning Series A (Education Revenue)		6.20	%		11-15-2026	$	1,815,000	$	1,953,539
Seminole County FL IDA Choices in Learning Series A (Education Revenue)		7.38			11-15-2041		3,525,000		3,918,496
South Miami FL Health Facilities Baptist Health (Health Revenue)		5.00			8-15-2023		2,810,000		2,875,614
St. Johns County FL IDA Refunding Glenmoor Project Series A (Health Revenue) ±(s)(t)		1.34			1-1-2049		750,000		509,805
St. Johns County FL IDA Refunding Subordinated Glenmoor Project Series B (Health Revenue) (s)(t)		2.50			1-1-2049		277,527		3
Trout Creek Florida Community Development District (Miscellaneous Revenue)		4.88			5-1-2025		2,545,000		2,470,202
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2020		2,020,000		2,140,776
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2021		2,140,000		2,295,878
Viera East FL Community Development District Water Management Project (Water & Sewer Revenue, National Insured)		5.75			5-1-2022		2,265,000		2,453,969
									100,392,590
Georgia: 0.38%
Cobb County GA Development Authority Charter Learning Center Foundation Central Project Series A (Education Revenue)		6.38			7-1-2025		1,920,000		1,802,016
Georgia Municipal Electric Authority Power Series EE (Utilities Revenue, Ambac Insured)		7.25			1-1-2024		400,000		518,976
Georgia Private Colleges & Universities Authority Series A (Education Revenue)		5.25			10-1-2027		2,630,000		2,882,533
Georgia Road & Tollway Authority CAB I-75 South Expressway Lanes Project Series A (Transportation Revenue) 144A¤		0.00			6-1-2034		3,750,000		1,181,925
Georgia Road & Tollway Authority CCAB I-75 South Expressway Lanes Project Series B (Transportation Revenue) 144A±		0.00			6-1-2049		5,600,000		3,391,808
									9,777,258
Guam: 0.16%
Guam Government Limited Obligation Section 30 Series A (Miscellaneous Revenue)		5.38			12-1-2024		3,195,000		3,531,817
Guam Government Waterworks Authority Water & Wastewater System Project Series 2010 (Water & Sewer Revenue)		5.00			7-1-2019		450,000		482,000
Guam Housing Corporation Guaranteed Mortgage-Backed Securities Series A (Housing Revenue, FHLMC Insured)		5.75			9-1-2031		60,000		62,152
									4,075,969
Hawaii: 0.12%
Hawaii Prerefunded Series DZ (GO Revenue)		5.00			12-1-2031		1,670,000		1,917,928
Hawaii Unrefunded Series DZ (GO Revenue)		5.00			12-1-2031		1,030,000		1,149,356
									3,067,284
Idaho: 0.69%
Boise-Kuna ID Irrigation District Arrowrock Hydroelectric Project (Utilities Revenue)		7.38			6-1-2040		6,300,000		6,844,698
Idaho Health Facilities Authority Trinity Health Credit Group Series B (Health Revenue)		6.25			12-1-2033		3,000,000		3,278,850
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		5.75			12-1-2032		500,000		543,775
Idaho Housing & Finance Association Idaho Arts Charter School Incorporated Project Series A (Education Revenue)		6.50			12-1-2038		1,405,000		1,540,906
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		5.85			5-1-2033		730,000		745,564

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Idaho (continued)
Idaho Housing & Finance Association Legacy Public Charter School Incorporated Project Series A (Education Revenue)		6.25	%		5-1-2043	$	1,365,000	$	1,420,501
Idaho Housing & Finance Association Liberty Charter School Series A (Education Revenue)		6.00			6-1-2038		500,000		511,145
Idaho Housing & Finance Association Nonprofit CAB North Star Charter School Series A (Education Revenue)		6.75			7-1-2048		1,322,876		1,242,868
Idaho Housing & Finance Association Nonprofit CAB North Star Charter School Series B (Education Revenue) 144A¤		0.00			7-1-2049		1,276,564		106,491
Idaho Housing & Finance Association Series A (Education Revenue)		6.13			7-1-2038		1,500,000		1,606,845
									17,841,643
Illinois: 19.70%
Chicago IL (Tax Revenue)		5.00			1-1-2028		4,430,000		4,721,450
Chicago IL (Tax Revenue)		5.00			1-1-2029		1,500,000		1,590,255
Chicago IL Board of Education CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2025		9,935,000		6,920,224
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2023		9,455,000		6,972,684
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2029		7,885,000		4,114,708
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ¤		0.00			12-1-2020		1,000,000		858,020
Chicago IL Board of Education CAB School Reform Series A (GO Revenue, National Insured) ��		0.00			12-1-2031		2,705,000		1,257,176
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2023		1,430,000		1,054,568
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2030		4,550,000		2,239,692
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2026		4,000,000		2,493,080
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2028		24,270,000		13,409,175
Chicago IL Board of Education CAB School Reform Series B-1 (GO Revenue, National Insured) ¤		0.00			12-1-2031		10,000,000		4,637,400
Chicago IL Board of Education Series A (GO Revenue, National Insured) ¤		0.00			12-1-2027		4,040,000		2,374,954
Chicago IL Board of Education Series C (GO Revenue, AGM Insured)		5.25			12-1-2023		1,500,000		1,566,465
Chicago IL Board of Education Series D (GO Revenue, AGM Insured)		5.00			12-1-2025		1,430,000		1,458,986
Chicago IL CAB City Colleges (GO Revenue, National Insured) ¤		0.00			1-1-2030		5,745,000		3,026,638
Chicago IL CAB Project & Refunding Series A (GO Revenue, National Insured)		5.56			1-1-2021		3,520,000		3,531,123
Chicago IL CAB Project & Refunding Series C (GO Revenue, AGM Insured) ¤		0.00			1-1-2026		7,360,000		4,865,770
Chicago IL CAB Series C (GO Revenue) ¤		0.00			1-1-2031		4,945,000		1,997,384
Chicago IL Motor Fuel Refunding (Tax Revenue)		5.00			1-1-2025		2,595,000		2,724,646
Chicago IL Motor Fuel Refunding (Tax Revenue)		5.00			1-1-2026		3,000,000		3,129,510
Chicago IL Motor Fuel Refunding (Tax Revenue)		5.00			1-1-2028		1,000,000		1,032,170
Chicago IL Neighborhoods Alive 21 Program Series B (GO Revenue)		5.50			1-1-2034		1,500,000		1,440,795
Chicago IL O’Hare International Airport (Airport Revenue, AGM Insured)		5.50			1-1-2043		4,530,000		5,060,871
Chicago IL O’Hare International Airport (Airport Revenue)		5.75			1-1-2038		7,500,000		8,449,725
Chicago IL O’Hare International Airport AMT Passenger Facility Charge Series B (Airport Revenue)		5.00			1-1-2026		5,000,000		5,475,950
Chicago IL O’Hare International Airport AMT Senior Lien Series A (Airport Revenue)		5.00			1-1-2025		2,000,000		2,207,020
Chicago IL O’Hare International Airport AMT Senior Lien Series C (Airport Revenue)		5.50			1-1-2044		4,000,000		4,404,720
Chicago IL O’Hare International Airport Customer Facility Charge Senior Lien Series D (Airport Revenue)		5.75			1-1-2043		4,500,000		5,059,440

8 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Chicago IL O’Hare International Airport Third Lien Series A (Airport Revenue)		5.75	%		1-1-2039	$	2,760,000	$	3,090,703
Chicago IL Public Building Commission Transit Authority (Transportation Revenue, Ambac Insured)		5.25			3-1-2025		2,960,000		3,244,071
Chicago IL Public Building Commission Transit Authority (Transportation Revenue, Ambac Insured)		5.25			3-1-2027		3,400,000		3,746,154
Chicago IL Second Lien Project (Water & Sewer Revenue)		5.00			11-1-2029		4,600,000		4,980,926
Chicago IL Series A (GO Revenue, National Insured)		5.00			1-1-2029		4,000,000		4,010,640
Chicago IL Series A (Tax Revenue)		5.25			1-1-2038		6,000,000		6,169,800
Chicago IL Series A (GO Revenue)		5.50			1-1-2034		7,175,000		6,891,803
Chicago IL Series A (GO Revenue)		5.50			1-1-2035		920,000		881,489
Chicago IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2028		9,550,000		10,100,176
Chicago IL Series A (GO Revenue)		5.50			1-1-2033		12,730,000		12,245,496
Chicago IL Series B (GO Revenue)		5.50			1-1-2032		1,285,000		1,232,688
Chicago IL Transit Authority Sales Tax Receipts Bonds (Tax Revenue, AGM Insured)		5.00			12-1-2044		4,000,000		4,263,520
Chicago IL Wastewater Transmission Second Lien Revenue Project Series 2012 (Water & Sewer Revenue)		5.00			1-1-2027		4,000,000		4,315,040
Chicago IL Wastewater Transmission Second Lien Revenue Project Series B (Water & Sewer Revenue, National Insured)		5.00			1-1-2030		2,500,000		2,504,200
Chicago IL Waterworks Second Lien Revenue Project Series 2012 (Water & Sewer Revenue)		5.00			11-1-2030		5,000,000		5,400,800
Cook County IL Series A (GO Revenue)		5.25			11-15-2022		3,000,000		3,279,720
Cook County IL Series C (GO Revenue, AGM Insured)		5.00			11-15-2024		4,240,000		4,717,085
Cook County IL Series C (GO Revenue)		5.00			11-15-2025		2,140,000		2,354,685
Cook County IL Series C (GO Revenue)		5.00			11-15-2027		325,000		355,638
Cook County IL Series G (GO Revenue)		5.00			11-15-2028		27,000,000		28,663,470
DeKalb-Kane-Lasalle Counties IL Kishwaukee Community College District #523 Series B (GO Revenue) ¤		0.00			2-1-2019		725,000		695,507
Illinois (Miscellaneous Revenue)		5.00			8-1-2024		2,610,000		2,674,702
Illinois (Miscellaneous Revenue)		5.00			8-1-2025		5,685,000		5,790,570
Illinois (GO Revenue, AGM Insured)		5.00			4-1-2026		3,000,000		3,194,880
Illinois (Miscellaneous Revenue)		5.25			7-1-2030		2,500,000		2,535,725
Illinois (Miscellaneous Revenue)		5.50			7-1-2025		6,000,000		6,297,180
Illinois (Miscellaneous Revenue)		5.50			7-1-2026		4,450,000		4,636,099
Illinois (GO Revenue)		5.50			1-1-2030		2,900,000		3,068,722
Illinois (Miscellaneous Revenue)		5.50			7-1-2038		4,000,000		4,074,320
Illinois Finance Authority Advocate Healthcare Network Series D (Health Revenue)		6.50			11-1-2038		5,415,000		5,927,584
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2018		1,325,000		1,388,547
Illinois Finance Authority Centegra Health System Project (Health Revenue)		5.00			9-1-2020		1,465,000		1,589,715
Illinois Finance Authority Charter School Refunding Bond Series A (Education Revenue)		6.88			10-1-2031		1,800,000		1,957,662
Illinois Finance Authority Charter Schools Series A (Education Revenue)		6.25			9-1-2039		7,955,000		8,768,081
Illinois Finance Authority Charter Schools Series A (Education Revenue)		7.13			10-1-2041		3,800,000		4,154,236
Illinois Finance Authority Medical District Commission Project A (Health Revenue, AGC Insured)		4.13			9-1-2018		350,000		350,665
Illinois Finance Authority Northwestern Memorial Hospital Project Series A (Health Revenue)		6.00			8-15-2039		5,000,000		5,541,400
Illinois Finance Authority Student Housing Illinois State University (Education Revenue)		6.75			4-1-2031		8,000,000		8,776,480
Illinois Finance Authority University of Chicago Series B (Education Revenue)		6.25			7-1-2038		3,115,000		3,344,202
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2030		7,000,000		7,933,590
Illinois Municipal Electric Agency Power Supply System Series A (Utilities Revenue)		5.00			2-1-2031		8,000,000		9,034,960

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois Series 1 (GO Revenue, National Insured)		6.00	%		11-1-2026	$	3,200,000	$	3,659,040
Illinois Series 2013 (Miscellaneous Revenue)		5.00			7-1-2022		6,750,000		7,023,105
Illinois Series A (GO Revenue)		5.00			4-1-2021		6,675,000		6,958,554
Illinois Series A (GO Revenue, AGM Insured)		5.00			4-1-2024		3,000,000		3,206,280
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2026		1,525,000		1,018,593
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2021		7,595,000		6,504,814
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2022		1,905,000		1,553,147
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2024		17,510,000		12,883,508
Illinois Sports Facilities Authority State Tax Supported CAB (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2025		2,515,000		1,761,808
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2028		4,030,000		4,414,664
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2025		3,745,000		4,145,528
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2026		4,775,000		5,271,505
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.00			6-15-2027		8,355,000		9,219,074
Illinois Sports Facilities Authority State Tax Supported Refunding Bonds (Tax Revenue, AGM Insured)		5.25			6-15-2032		3,500,000		3,831,625
Illinois Toll Highway Authority Series B (Transportation Revenue)		5.00			1-1-2039		1,500,000		1,648,440
Kane-Cook-DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		8,225,000		7,144,482
Kane-Cook-DuPage Counties IL School District #46 CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			1-1-2023		15,025,000		12,447,311
Kendall-Kane-Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2025		1,525,000		1,162,492
Kendall-Kane-Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2026		5,050,000		3,689,934
Kendall-Kane-Will Counties IL CAB School District #308 (GO Revenue, AGM Insured) ¤		0.00			2-1-2027		12,050,000		8,437,892
Lake County IL School District #24 Millburn CAB (GO Revenue, National Insured) ¤		0.00			1-1-2024		2,000,000		1,551,400
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2018		3,800,000		3,700,592
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2019		675,000		634,993
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2020		1,250,000		1,133,713
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2021		1,175,000		1,025,493
Lake County IL School District #38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2024		5,385,000		4,151,027
Lake County IL Township High School District #126 Zion-Benton CAB (GO Revenue, National Insured) ¤		0.00			2-1-2020		910,000		840,221
McHenry-Kane Counties IL Community Consolidated School District #158 (GO Revenue)		5.63			1-15-2032		2,500,000		2,828,650
McHenry-Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, National Insured) ¤		0.00			1-1-2019		765,000		740,382
McHenry-Kane Counties IL Community Consolidated School District #158 CAB (GO Revenue, AGM/FGIC Insured) ¤		0.00			1-1-2023		1,695,000		1,404,206
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2026		11,795,000		7,684,560
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2029		33,800,000		18,706,610

10 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00	%		12-15-2030	$	2,100,000	$	1,105,503
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2031		6,000,000		3,016,680
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2034		11,605,000		4,933,750
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			6-15-2035		6,450,000		2,644,113
Metropolitan Pier & Exposition Authority IIlinois CAB McCormick Place Expansion Project Series A (Tax Revenue, National Insured) ¤		0.00			12-15-2035		6,250,000		2,500,938
Regional Transportation Authority Illinois (Tax Revenue, AGM Insured)		5.75			6-1-2023		400,000		468,484
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		1,235,000		1,222,613
Southwestern Illinois Development Authority Local Government Program Collinsville Limited (Tax Revenue)		5.00			3-1-2025		2,495,000		2,007,951
Springfield IL Senior Lien Notes (Utilities Revenue, National Insured)		5.00			3-1-2024		1,425,000		1,435,018
Tazewell County IL School District #51 (GO Revenue, National Insured)		9.00			12-1-2023		350,000		483,763
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, National Insured) ¤		0.00			4-1-2026		2,355,000		1,709,871
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue, National Insured) ¤		0.00			4-1-2027		2,435,000		1,693,689
University of Illinois Auxiliary Facilities Systems Series A (Education Revenue)		5.75			4-1-2038		14,000,000		15,334,200
Will County IL Lincoln-Way Community High School District #210 Unrefunded CAB (GO Revenue, AGM Insured) ¤		0.00			1-1-2026		7,000,000		4,652,270
Will County IL Crete-Monee Community Unit School District #201 Prerefunded CAB (GO Revenue, National Insured) ¤		0.00			11-1-2023		430,000		363,810
Will County IL Crete-Monee Community Unit School District #201 Unrefunded CAB (GO Revenue, National Insured) ¤		0.00			11-1-2023		1,070,000		851,741
									507,065,567
Indiana: 1.96%
Brookhaven County IN EDA Line Senior Apartments Project Series A (Housing Revenue)		6.25			7-1-2043		2,000,000		2,084,400
Brookhaven County IN EDA Line Senior Apartments Project Series A (Housing Revenue)		6.25			7-1-2048		2,680,000		2,785,672
Gary IN Sanitary District Series A (Water & Sewer Revenue)		5.05			1-15-2029		7,890,000		8,233,767
Indiana Finance Authority AMT-I-69 Development Partners LLC (Miscellaneous Revenue)		5.25			9-1-2034		10,000,000		9,977,600
Indiana Finance Authority Environmental Facilities Series 2016A (Industrial Development Revenue)		3.13			12-1-2024		8,350,000		8,235,772
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series A (Industrial Development Revenue)		5.00			7-1-2035		9,970,000		10,208,782
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series A (Industrial Development Revenue)		5.00			7-1-2040		2,470,000		2,506,680
Valparaiso IN Pratt Paper LLC Project (Industrial Development Revenue)		5.88			1-1-2024		1,200,000		1,330,056
Whiting IN BP Products North America Incorporated Project (Resource Recovery Revenue)		1.48			12-1-2044		5,000,000		4,948,550
									50,311,279
Iowa: 0.08%
Altoona IA Annual Appropriation Urban Renewal Series C (GO Revenue)		5.00			6-1-2031		1,805,000		2,052,556

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Kansas: 1.19%
Sedgwick & Shawnee Counties KS Mortgage-Backed Securities Series A-2 (Housing Revenue, GNMA Insured)		6.70	%		6-1-2029	$	40,000	$	40,302
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		30,585,070
									30,625,372
Kentucky: 1.62%
Kentucky EDFA Balance Norton Series B (Health Revenue, National Insured) ¤		0.00			10-1-2028		4,845,000		3,129,918
Kentucky EDFA Catholic Health Initiatives Series B (Health Revenue) ±		2.12			2-1-2046		22,715,000		22,371,322
Kentucky EDFA Next Generation Information Highway Project Series A (Miscellaneous Revenue)		5.00			7-1-2040		3,400,000		3,539,128
Kentucky EDFA Norton Healthcare Incorporated Series B (Health Revenue, National Insured) ¤		0.00			10-1-2024		9,260,000		7,121,959
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2030		2,000,000		1,051,820
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2031		2,780,000		1,362,061
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series B (Transportation Revenue) ¤		0.00			7-1-2032		2,500,000		1,144,375
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series C (Transportation Revenue) ±		0.00			7-1-2033		1,000,000		829,070
Kentucky Public Transportation Infrastructure Authority Downtown Crossing Project CAB Series C (Transportation Revenue) ±		0.00			7-1-2034		1,505,000		1,242,739
									41,792,392
Louisiana: 0.95%
Louisiana Local Government Environmental Facilities & CDA (Miscellaneous Revenue, Ambac Insured)		5.25			12-1-2018		2,085,000		2,111,876
Louisiana Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		5.00			5-15-2025		2,410,000		2,414,989
Louisiana Tobacco Settlement Financing Corporation Series A (Tobacco Revenue)		5.25			5-15-2035		2,300,000		2,476,617
New Orleans LA (GO Revenue, FGIC Insured)		5.50			12-1-2021		2,050,000		2,271,134
New Orleans LA Aviation Board AMT Series B (Airport Revenue, AGM Insured)		5.00			1-1-2033		3,000,000		3,311,730
New Orleans LA Aviation Board AMT Series B (Airport Revenue)		5.00			1-1-2034		4,500,000		4,892,265
New Orleans LA Aviation Board Gulf Opportunity Zone Consolidated Rental Car Series A (Airport Revenue)		6.50			1-1-2040		6,500,000		7,007,455
									24,486,066
Maine: 0.08%
Maine Educational Loan Authority Student Loan Series A-3 Class A (Education Revenue, AGC Insured)		5.88			12-1-2039		1,930,000		2,058,036
Maryland: 0.65%
Howard County MD Certificate of Participation Agricultural Land Preservation #90-23 Series A (Miscellaneous Revenue)		8.00			8-15-2020		293,000		347,454
Prince George’s County MD Chesapeake Lighthouse Charter School Project Series 2016A (Education Revenue)		5.75			8-1-2033		1,585,000		1,605,225
Prince George’s County MD Chesapeake Lighthouse Charter School Project Series 2016A (Education Revenue) 144A		6.90			8-1-2041		8,480,000		8,545,720
Prince George’s County MD Chesapeake Lighthouse Charter School Project Series 2016A (Education Revenue)		7.00			8-1-2046		6,085,000		6,158,203
									16,656,602

12 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Massachusetts: 0.79%
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		8.00	%		4-15-2031	$	2,150,000	$	2,529,647
Massachusetts Development Finance Agency Sabis International Charter Series A (Education Revenue)		8.00			4-15-2039		3,900,000		4,588,662
Massachusetts Educational Finance Authority Series B (Education Revenue)		5.38			1-1-2020		1,780,000		1,900,150
Massachusetts Educational Finance Authority Series I (Education Revenue)		6.00			1-1-2028		1,540,000		1,614,813
Massachusetts Educational Finance Authority Series J (Education Revenue)		5.00			7-1-2020		6,000,000		6,472,860
Massachusetts Educational Finance Authority Series J (Education Revenue)		5.00			7-1-2021		3,000,000		3,256,230
									20,362,362
Michigan: 7.51%
Detroit MI Distribution of State Aid (GO Revenue)		5.00			11-1-2030		2,330,000		2,415,395
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2018		3,050,000		2,842,204
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2019		3,050,000		2,708,644
Detroit MI Downtown Development Authority CAB (Tax Revenue) ¤		0.00			7-1-2020		2,070,000		1,723,503
Detroit MI Water Supply System Second Lien Series B (Water & Sewer Revenue, AGM Insured)		7.00			7-1-2036		9,675,000		10,941,554
Great Lakes Michigan Water Authority Sewage Disposal System Series 2016C (Water & Sewer Revenue)		5.00			7-1-2036		8,500,000		9,250,635
Great Lakes Michigan Water Authority Water Supply System Series 2016D (Water & Sewer Revenue)		4.00			7-1-2032		11,000,000		11,069,300
Great Lakes Michigan Water Authority Water Supply System Series 2016D (Water & Sewer Revenue, AGM Insured)		4.00			7-1-2033		11,000,000		11,086,680
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2026		1,075,000		1,199,722
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2028		1,450,000		1,603,816
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2029		1,350,000		1,462,293
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2030		1,775,000		1,944,051
Livonia MI Public Schools School District Building & Site Series I (GO Revenue)		5.00			5-1-2031		1,425,000		1,558,166
Michigan Finance Authority Limited Obligation Public School Holly Academy (Education Revenue)		6.50			10-1-2020		130,000		135,637
Michigan Finance Authority Limited Obligation Public School Holly Academy (Education Revenue)		8.00			10-1-2040		1,350,000		1,492,263
Michigan Finance Authority Limited Obligation Public School Madison Academy Project Series A (Miscellaneous Revenue)		7.50			12-1-2020		260,000		277,339
Michigan Finance Authority Limited Obligation Public School Madison Academy Project Series A (Miscellaneous Revenue)		8.00			12-1-2030		1,135,000		1,238,750
Michigan Finance Authority Limited Obligation Public School Madison Academy Project Series A (Miscellaneous Revenue)		8.25			12-1-2039		2,220,000		2,443,132
Michigan Finance Authority Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2025		2,000,000		2,285,760
Michigan Finance Authority Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2026		1,945,000		2,208,839
Michigan Finance Authority Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2027		2,260,000		2,553,574
Michigan Finance Authority Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2028		3,480,000		3,914,652
Michigan Finance Authority Local Government Loan Program Series C (Water & Sewer Revenue, National Insured)		5.00			7-1-2032		5,750,000		6,370,770
Michigan Finance Authority Local Government Loan Program Series C (Water & Sewer Revenue)		5.00			7-1-2035		2,000,000		2,156,400
Michigan Finance Authority Local Government Loan Program Series D (Water & Sewer Revenue, National Insured)		5.00			7-1-2027		1,000,000		1,129,900

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Local Government Loan Program Series H-1 (Tax Revenue)		5.00	%		10-1-2031	$	1,340,000	$	1,489,799
Michigan Finance Authority Local Government Loan Program Series H-1 (Tax Revenue)		5.00			10-1-2032		2,000,000		2,217,820
Michigan Finance Authority Local Government Loan Program Series H-1 (Tax Revenue)		5.00			10-1-2033		2,975,000		3,284,043
Michigan Finance Authority Local Government Loan Program Series H-1 (Tax Revenue)		5.00			10-1-2034		3,670,000		4,032,926
Michigan Finance Authority Local Government Loan Program Series H-1 (Tax Revenue)		5.00			10-1-2039		7,955,000		8,623,697
Michigan Finance Authority Public School Academy University Learning (Education Revenue)		6.25			11-1-2020		360,000		376,679
Michigan Finance Authority Refunding Bond Local Government Loan Program City of Detroit Financial Recovery Series F (Tax Revenue)		4.50			10-1-2029		7,000,000		7,152,180
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Series D-4 (Water & Sewer Revenue)		5.00			7-1-2031		6,500,000		7,188,155
Michigan Finance Authority Refunding Bond Local Government Loan Program Detroit Series D-6 (Water & Sewer Revenue, National Insured)		5.00			7-1-2036		3,250,000		3,549,065
Michigan Finance Authority Refunding Bond Local Government Loan Program Public Lighting Authority Series B (Tax Revenue)		5.00			7-1-2044		12,625,000		13,419,491
Michigan Municipal Bond Authority Local Government Loan Program CAB Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2017		365,000		361,879
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		4.00			11-1-2021		150,000		150,126
Michigan Municipal Bond Authority Local Government Loan Program Series A (Miscellaneous Revenue, Ambac Insured)		5.00			5-1-2017		550,000		554,604
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2017		2,475,000		2,498,463
Michigan Municipal Bond Authority Local Government Loan Program Series B Group A (Miscellaneous Revenue, Ambac Insured)		5.25			12-1-2023		1,185,000		1,189,823
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		3.75			5-1-2017		450,000		451,701
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.00			5-1-2019		100,000		100,269
Michigan Municipal Bond Authority Local Government Loan Program Series C (Miscellaneous Revenue, Ambac Insured)		4.75			5-1-2027		4,610,000		4,619,727
Michigan Municipal Bond Authority Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2019		75,000		69,608
Michigan Municipal Bond Authority Local Government Loan Program Series G (Miscellaneous Revenue, Ambac Insured) ¤		0.00			5-1-2020		205,000		183,153
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue) 144A		6.50			9-1-2037		3,745,000		2,995,476
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue)		8.50			9-1-2029		1,500,000		1,199,790
Michigan Public Educational Facilities Authority Limited Obligation Bradford Academy Project (Education Revenue)		8.75			9-1-2039		3,500,000		2,799,510
Michigan Public Educational Facilities Authority Limited Obligation Crescent Academy (Education Revenue)		7.00			10-1-2036		1,160,000		1,197,561
Michigan Public Educational Facilities Authority Limited Obligation Madison Academy Project (Education Revenue)		8.38			12-1-2030		2,085,000		2,302,883
Michigan Public Educational Facilities Authority Limited Obligation Madison Academy Project (Education Revenue)		8.63			12-1-2039		4,170,000		4,643,712

14 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Public Educational Facilities Authority Limited Obligation Nataki Talibah (Miscellaneous Revenue) (i)(s)(t)		6.25	%		10-1-2023	$	800,000	$	239,848
Michigan Strategic Fund Limited Obligation Detroit Edison Company Exempt Facilities Project Series KT (Utilities Revenue)		5.63			7-1-2020		1,200,000		1,338,252
Michigan Strategic Fund Limited Obligation Events Bonds Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		15,500,000		15,693,750
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		4,236,953
Star International Academy Michigan (Miscellaneous Revenue)		3.40			3-1-2017		100,000		100,028
Wayne County MI Building Improvement Series A (GO Revenue)		6.75			11-1-2039		8,735,000		9,027,885
									193,301,835
Mississippi: 0.36%
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		9,125,445
Missouri: 0.62%
Blue Springs MO Special Obligation Tax Refunding & Improvement Adams Farm Project Series A (Tax Revenue)		4.00			6-1-2026		10,330,000		10,201,185
Manchester MO Highway 141 Manchester Road Project (Tax Revenue)		6.00			11-1-2025		1,300,000		1,319,227
St. Louis MO IDA Convention Center Hotel (Miscellaneous Revenue, Ambac Insured) ¤		0.00			7-15-2019		2,475,000		2,317,590
St. Louis MO Lambert St. Louis International Airport Series A-1 (Airport Revenue)		6.25			7-1-2029		2,000,000		2,201,860
									16,039,862
Nebraska: 0.04%
Nebraska Central Plains Energy Project #3 (Utilities Revenue)		5.00			9-1-2027		1,020,000		1,109,495
Nevada: 0.05%
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2022		480,000		509,189
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2023		380,000		405,392
Las Vegas NV Special Improvement District #60 Local Improvement (Miscellaneous Revenue)		5.00			6-1-2024		250,000		266,185
									1,180,766
New Jersey: 5.99%
Bayonne NJ School Refunding Bonds (GO Revenue, AGM Insured)		5.00			7-15-2023		2,505,000		2,847,659
New Jersey EDA Natural Gas Company Project Series C (Utilities Revenue, National Insured) ±		4.90			10-1-2040		5,680,000		5,690,962
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		1.97			9-1-2025		3,815,000		3,563,897
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		2.27			9-1-2027		22,245,000		20,704,756
New Jersey EDA School Facilities Construction Project Series I (Miscellaneous Revenue) ±		2.32			3-1-2028		1,200,000		1,106,592
New Jersey EDA School Facilities Construction Project Series II (Miscellaneous Revenue)		5.00			3-1-2026		4,000,000		4,104,480
New Jersey EDA School Facilities Construction Project Series NN (Miscellaneous Revenue)		5.00			3-1-2026		15,000,000		15,457,950

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey Educational Facilities Authority Series 2014 (Education Revenue)		5.00	%		6-15-2025	$	5,830,000	$	6,094,565
New Jersey TTFA (Transportation Revenue)		6.00			12-15-2038		10,425,000		11,062,385
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2029		11,875,000		6,448,600
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2031		4,500,000		2,146,635
New Jersey TTFA CAB Series A (Transportation Revenue) ¤		0.00			12-15-2026		1,150,000		735,690
New Jersey TTFA Series A (Transportation Revenue)		5.00			6-15-2042		5,540,000		5,531,967
New Jersey TTFA Series A (Miscellaneous Revenue, National Insured)		5.75			6-15-2023		2,000,000		2,276,660
New Jersey TTFA Series A (Miscellaneous Revenue, National Insured)		5.75			6-15-2025		10,000,000		11,551,400
New Jersey TTFA Series AA (Transportation Revenue)		5.00			6-15-2044		1,000,000		995,540
New Jersey TTFA Series AA (Transportation Revenue)		5.25			6-15-2033		10,000,000		10,208,200
New Jersey TTFA Series B (Transportation Revenue)		5.25			6-15-2036		5,575,000		5,636,604
New Jersey TTFA Series C (Transportation Revenue)		5.25			6-15-2032		8,000,000		8,230,320
Newark NJ Housing Authority Port Newark Marine Terminal Rental (Miscellaneous Revenue, National Insured)		5.00			1-1-2032		7,620,000		8,583,778
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2025		5,000,000		5,357,350
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2026		2,205,000		2,346,296
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.00			7-15-2027		6,035,000		6,386,358
Newark NJ Qualified General Improvement Series A (GO Revenue)		5.25			7-15-2024		1,325,000		1,439,639
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2025		385,000		412,516
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2026		395,000		420,312
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.00			7-15-2027		405,000		428,579
Newark NJ Qualified General Improvement Series B (GO Revenue)		5.25			7-15-2024		375,000		407,445
Rutgers NJ State University Series L (Education Revenue)		5.00			5-1-2033		3,560,000		4,053,808
									154,230,943
New Mexico: 0.41%
New Mexico Mortgage Finance Authority SFMR Class I (Housing Revenue, GNMA/FNMA/FHLMC Insured)		5.35			3-1-2030		615,000		655,971
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.16			11-1-2039		10,000,000		9,938,800
									10,594,771
New York: 10.49%
Glen Cove NY Local Economic Assistance Corporation CAB Series B (Industrial Development Revenue) ¤		0.00			1-1-2045		6,000,000		1,082,460
Glen Cove NY Local Economic Assistance Corporation CCAB Series C (Industrial Development Revenue) ±		0.00			1-1-2055		2,500,000		1,708,950
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		7.65			2-1-2044		3,500,000		3,837,785
Hempstead Town NY Local Development Corporation The Academy Charter School Project Series A (Education Revenue)		8.25			2-1-2041		9,790,000		10,971,261
Metropolitan Transportation Authority New York Series A (Transportation Revenue)		5.00			11-15-2030		16,000,000		18,092,000
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		6.50			11-15-2028		1,535,000		1,682,959
Metropolitan Transportation Authority New York Series C (Transportation Revenue)		6.50			11-15-2028		6,465,000		7,094,173
New York Dormitory Authority North Shore-Long Island Jewish Obligated Group Series B (Health Revenue) ±		1.32			5-1-2018		1,520,000		1,520,836
New York Dormitory Authority Series B (Tax Revenue)		5.75			3-15-2036		10,000,000		10,861,100

16 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York NY Municipal Water Finance Authority 2nd General Resolution Series AA (Water & Sewer Revenue)		5.00	%		6-15-2044	$	17,400,000	$	19,169,580
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.00			6-15-2044		30,265,000		33,599,295
New York NY Municipal Water Finance Authority 2nd General Resolution Series BB (Water & Sewer Revenue)		5.25			6-15-2044		9,800,000		11,026,862
New York NY Municipal Water Finance Authority 2nd General Resolution Series DD (Water & Sewer Revenue)		6.00			6-15-2040		11,625,000		12,332,033
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.00			6-15-2038		36,650,000		37,210,745
New York NY Municipal Water Finance Authority Water & Sewer System Series A (Water & Sewer Revenue)		5.75			6-15-2040		1,150,000		1,226,774
New York NY Municipal Water Finance Authority Water & Sewer System Series DD (Water & Sewer Revenue)		5.00			6-15-2026		3,255,000		3,676,132
New York NY Municipal Water Finance Authority Water & Sewer System Unrefunded Balance (Water & Sewer Revenue)		5.75			6-15-2040		3,850,000		4,068,642
New York NY Series F-1 (GO Revenue)		5.00			3-1-2032		3,000,000		3,409,680
New York NY Transitional Finance Authority Building Aid Fiscal Year 2009 Series S-4 (Miscellaneous Revenue)		5.75			1-15-2039		2,500,000		2,699,325
New York NY Transitional Finance Authority Future Tax Secured Revenue Series I (Tax Revenue)		5.00			5-1-2033		5,395,000		6,153,483
New York NY Transitional Finance Authority Future Tax Secured Subordinate Bonds Series A (Tax Revenue)		5.00			8-1-2031		17,075,000		19,803,073
New York Tobacco Settelement Asset Securitization Corporation Incorporated Series 1 (Tobacco Revenue)		5.00			6-1-2026		10,000,000		9,937,300
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2020		4,865,000		5,060,476
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project Series 2016 (Airport Revenue)		5.00			8-1-2026		11,500,000		11,859,950
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		20,880,000		20,871,648
Oyster Bay NY BAN Series C (GO Revenue)		4.00			6-1-2018		3,000,000		3,010,110
Suffolk NY Tobacco Securitization Corporation Series B (Tobacco Revenue)		4.50			6-1-2026		520,000		550,020
Suffolk NY Tobacco Securitization Corporation Series B (Tobacco Revenue)		5.00			6-1-2025		500,000		547,790
Westchester County NY Local Development Pace University Series A (Education Revenue)		5.00			5-1-2034		1,750,000		1,779,978
Westchester County NY Local Development Pace University Series B (Education Revenue) ø		0.95			5-1-2044		5,000,000		5,000,000
									269,844,420
North Carolina: 0.71%
North Carolina Eastern Municipal Power Agency Series A (Utilities Revenue)		5.50			1-1-2026		1,250,000		1,353,975
North Carolina Eastern Municipal Power Agency Series C (Utilities Revenue)		6.75			1-1-2024		2,000,000		2,215,640
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.00			12-1-2029		5,000,000		5,436,150
North Carolina Medical Care Commission University Health Systems of Eastern Carolina Series D (Health Revenue)		6.25			12-1-2033		8,500,000		9,281,575
									18,287,340

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Ohio: 2.53%
Akron-Bath-Copley Joint Township OH Hospital District Summa Health Obligated Group (Health Revenue)		5.25	%		11-15-2046	$	6,000,000	$	6,439,440
Allen County OH Catholic Healthcare Series B (Health Revenue)		5.25			9-1-2027		3,825,000		4,236,838
Cleveland OH Airport System Revenue Series A (Airport Revenue)		5.00			1-1-2025		4,015,000		4,466,286
Cleveland OH Airport System Revenue Series A (Airport Revenue, AGM Insured)		5.00			1-1-2031		3,600,000		3,942,684
Montgomery County OH Hospital Kettering Medical Center (Health Revenue, National Insured)		6.25			4-1-2020		2,500,000		2,655,875
Ohio Air Quality Development Authority AMT Refunding Bond Pollution Control 1st Energy Series C (Industrial Development Revenue) ±		3.95			11-1-2032		2,700,000		1,128,681
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Miscellaneous Revenue, AGM Insured)		5.00			12-31-2026		1,500,000		1,694,790
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Miscellaneous Revenue, AGM Insured)		5.00			12-31-2028		1,600,000		1,787,600
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Miscellaneous Revenue, AGM Insured)		5.00			12-31-2030		2,250,000		2,494,553
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Miscellaneous Revenue, AGM Insured)		5.00			12-31-2035		12,000,000		13,055,880
Ohio Private Activity Bond AMT Portsmouth Bypass Project (Miscellaneous Revenue, AGM Insured)		5.00			12-31-2039		2,500,000		2,693,575
Ohio Turnpike Commission CAB Series A-4 (Transportation Revenue) ±		0.00			2-15-2034		8,500,000		7,640,735
Ohio Water Development Authority Pollution Control AMT Series C (Industrial Development Revenue) ±		3.95			11-1-2032		8,000,000		3,344,240
Ohio Water Development Authority Pollution Control Series A (Industrial Development Revenue) ±		3.75			7-1-2033		11,580,000		4,840,787
Ohio Water Development Authority Pollution Control Series C (Industrial Development Revenue) ±		4.00			6-1-2033		3,720,000		1,555,890
RiverSouth Authority Ohio Lazarus Building Redevelopment Series A (Miscellaneous Revenue)		5.75			12-1-2027		1,900,000		1,943,795
Toledo OH Enterprise Bond Series 2-A (Industrial Development Revenue)		5.50			12-1-2019		1,115,000		1,160,815
									65,082,464
Oklahoma: 0.41%
Garfield County OK Educational Facilities Authority Enid Public Schools Project Series A (Miscellaneous Revenue)		5.00			9-1-2026		1,810,000		2,112,361
Garfield County OK Educational Facilities Authority Enid Public Schools Project Series A (Miscellaneous Revenue)		5.00			9-1-2030		2,000,000		2,285,360
Garfield County OK Educational Facilities Authority Enid Public Schools Project Series A (Miscellaneous Revenue)		5.00			9-1-2031		1,145,000		1,304,292
McGee Creek Authority Oklahoma Water Revenue (Water & Sewer Revenue, National Insured)		6.00			1-1-2023		3,345,000		3,659,430
Tulsa OK Airports Improvement Trust AMT Series A (Airport Revenue, Build America Mutual Assurance Company Insured)		5.00			6-1-2035		1,055,000		1,137,564
									10,499,007
Oregon: 0.20%
Deschutes County OR Hospital Facilities Authority Cascade Healthcare Community Incorporated Project (Health Revenue)		8.25			1-1-2038		4,500,000		5,090,400
Pennsylvania: 8.67%
Allegheny County PA Hospital Development Authority University of Pittsburgh Medical Center Series A (Health Revenue)		5.63			8-15-2039		5,130,000		5,581,132
Beaver County PA IDA Pollution Control First Nuclear General Project Series A (Utilities Revenue) ±		2.70			4-1-2035		2,000,000		838,120

18 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Berks County PA Municipal Authority Reading Hospital & Medical Center Project Series B (Health Revenue)		2.23	%		11-1-2039	$	20,000,000	$	20,155,000
Chester County PA IDA Avon Grove Charter School Project Series A (Education Revenue)		6.25			12-15-2027		2,000,000		2,054,020
Delaware County PA IDA Resource Recovery Facility Series A (Resource Recovery Revenue)		6.20			7-1-2019		790,000		792,560
Delaware Valley PA Regional Finance Authority Local Government Public Improvements Project (Miscellaneous Revenue)		5.75			7-1-2032		5,000,000		6,101,300
Delaware Valley PA Regional Finance Authority Local Government Series A (Miscellaneous Revenue, Ambac Insured)		5.50			8-1-2028		16,420,000		19,482,330
Delaware Valley PA Regional Finance Authority Local Government Series C (Miscellaneous Revenue, Ambac Insured)		7.75			7-1-2027		3,925,000		5,409,867
Luzerne County PA Series E (GO Revenue, AGM Insured)		8.00			11-1-2027		135,000		149,120
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue)		5.00			4-1-2024		1,540,000		1,705,997
Montgomery County PA Higher Education & Health Authority Arcadia University (Education Revenue)		5.00			4-1-2025		1,625,000		1,801,426
Montgomery County PA IDA Exelon Generation Company LLC Project Series A (Industrial Development Revenue) ±		2.55			12-1-2029		15,530,000		15,369,109
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50			10-1-2030		10,625,000		10,501,856
Penn Hills Municipality PA Series B (GO Revenue, Ambac Insured) ¤		0.00			12-1-2017		1,000,000		984,540
Pennsylvania EDFA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2034		14,275,000		15,104,663
Pennsylvania EDFA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2030		600,000		647,526
Pennsylvania EDFA Bridges Finco LP (Industrial Development Revenue)		5.00			12-31-2038		2,100,000		2,196,978
Pennsylvania Finance Authority Penn Hills Project Series B (Miscellaneous Revenue, National Insured) ¤		0.00			12-1-2025		2,800,000		2,073,260
Pennsylvania HFA Single Family Mortgage Revenue Bonds AMT Series A (Housing Revenue)		4.70			10-1-2037		3,655,000		3,656,572
Pennsylvania Public School Building Authority (Miscellaneous Revenue)		5.00			4-1-2024		3,960,000		4,252,406
Pennsylvania Public School Building Authority Series DCL-016 (Miscellaneous Revenue, Dexia Credit Local LOC, AGM Insured) 144Aø		1.19			6-1-2023		15,685,000		15,685,000
Pennsylvania Turnpike Commission Motor License Series B-1 (Transportation Revenue)		5.00			12-1-2040		12,410,000		13,353,905
Philadelphia PA Airport Bonds AMT Series A (Airport Revenue, AGM Insured)		5.00			6-15-2032		5,000,000		5,066,300
Philadelphia PA Airport Bonds AMT Series A (Airport Revenue, AGM Insured)		5.00			6-15-2037		10,000,000		10,117,900
Philadelphia PA IDA 1st Philadelphia Preparatory Charter School Project Series A (Education Revenue)		7.00			6-15-2033		2,000,000		2,258,360
Philadelphia PA IDA New Foundations Charter School Project (Education Revenue)		6.00			12-15-2027		285,000		307,119
Philadelphia PA School District Series A (GO Revenue)		5.00			9-1-2024		2,075,000		2,285,094
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2021		5,000,000		5,469,650
Philadelphia PA School District Series F (GO Revenue)		5.00			9-1-2035		3,820,000		4,073,113
Philadelphia PA Series A (Water & Sewer Revenue)		5.00			7-1-2033		8,000,000		9,001,200
Scranton PA Notes (GO Revenue)		5.00			11-15-2032		2,750,000		2,793,918
State Public School Building Authority Pennsylvania Philadelphia School District Project Series A (Miscellaneous Revenue)		5.00			4-1-2022		2,635,000		2,861,874
State Public School Building Authority Pennsylvania Philadelphia School District Project Series A (Miscellaneous Revenue)		5.00			6-1-2024		2,250,000		2,446,830
State Public School Building Authority Pennsylvania Philadelphia School District Project Series A (Miscellaneous Revenue)		5.00			6-1-2034		1,915,000		2,046,197
State Public School Building Authority Pennsylvania Philadelphia School District Project Series A (Miscellaneous Revenue)		5.00			6-1-2035		16,715,000		17,776,235

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
West Mifflin PA Area School District (GO Revenue, AGM Insured)		5.00	%		4-1-2025	$	1,180,000	$	1,324,762
West Mifflin PA Area School District (GO Revenue, AGM Insured)		5.00			4-1-2026		1,200,000		1,350,264
West Mifflin PA Area School District (GO Revenue, AGM Insured)		5.00			4-1-2027		1,000,000		1,126,080
Wilkes-Barre PA Finance Authority (Education Revenue)		5.00			3-1-2022		955,000		961,399
Wilkes-Barre PA Finance Authority (Education Revenue)		5.00			3-1-2022		645,000		649,509
York County PA IDA Philadelphia Electric Company Project Series A (Industrial Development Revenue) ±		2.55			6-1-2036		3,390,000		3,354,337
									223,166,828
Puerto Rico: 0.16%
Puerto Rico Electric Power Authority Refunding Bond Series MM (Utilities Revenue, National Insured)		5.00			7-1-2017		150,000		152,309
Puerto Rico Highway & Transportation Authority Series AA (Transportation Revenue, National Insured)		5.50			7-1-2020		3,015,000		3,199,910
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		264,000
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		560,000
									4,176,219
Rhode Island: 0.21%
Rhode Island Clean Water Finance Agency Cranston Wastewater Treatment System (Miscellaneous Revenue, National Insured)		5.80			9-1-2022		3,335,000		3,339,836
Rhode Island Commerce Corporation Series D (Airport Revenue)		5.00			7-1-2033		1,415,000		1,573,239
Rhode Island Commerce Corporation Series D (Airport Revenue)		5.00			7-1-2036		500,000		549,995
									5,463,070
South Carolina: 0.64%
Calhoun County SC Solid Waste Disposal Facilities Eastman Kodak Company Project (Industrial Development Revenue)		6.75			5-1-2017		400,000		407,516
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2017		164,621		161,282
Connector 2000 Association Incorporated CAB Series A (Transportation Revenue) ¤		0.00			1-1-2018		181,929		163,685
Lee County SC School Facilities Incorporated Series 2006 (Miscellaneous Revenue, AGC Insured)		6.00			12-1-2031		2,890,000		3,021,119
Piedmont SC Municipal Power Agency (Utilities Revenue, FGIC Insured)		6.75			1-1-2019		210,000		232,334
South Carolina Education Assistance Authority Student Loan Series I (Education Revenue)		5.10			10-1-2029		1,655,000		1,703,409
South Carolina Jobs EDA York Preparatory Academy Project Series A (Education Revenue)		7.25			11-1-2045		1,500,000		1,608,915
South Carolina Public Service Authority Series C (Utilities Revenue)		4.00			12-1-2032		3,320,000		3,489,320
South Carolina Public Service Authority Series C (Utilities Revenue)		5.00			12-1-2028		1,230,000		1,439,198
South Carolina Public Service Authority Series C (Utilities Revenue)		5.00			12-1-2034		1,825,000		2,064,148
South Carolina Public Service Authority Series C (Utilities Revenue)		5.00			12-1-2035		2,000,000		2,249,540
									16,540,466
South Dakota: 0.29%
Rapid City SD Series A (Airport Revenue)		6.75			12-1-2031		1,020,000		1,125,519
Rapid City SD Series A (Airport Revenue)		7.00			12-1-2035		750,000		816,345
South Dakota HEFA Sanford Health Project (Health Revenue)		5.50			11-1-2040		5,000,000		5,388,100
									7,329,964

20 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Tennessee: 0.43%
Bristol TN Industrial Development Board CAB Series B (Tax Revenue) 144A¤		0.00	%		12-1-2026	$	2,090,000	$	1,175,562
Bristol TN Industrial Development Board Series A (Tax Revenue) 144A		5.00			12-1-2035		8,000,000		7,313,120
Bristol TN Industrial Development Board Series A (Tax Revenue) 144A		5.13			12-1-2042		2,950,000		2,632,787
									11,121,469
Texas: 6.39%
Austin TX Airport System AMT (Airport Revenue) ##		5.00			11-15-2039		8,000,000		8,642,080
Austin TX Airport System AMT (Airport Revenue)		5.00			11-15-2044		3,500,000		3,771,040
Beasley TX Higher Education Finance Corporation Focus Learning Academy Series A (Education Revenue)		7.75			8-15-2041		2,000,000		1,784,200
Central Texas Regional Mobility Authority Senior Lien (Transportation Revenue)		5.75			1-1-2025		2,000,000		2,228,680
Central Texas Regional Mobility Authority Senior Lien Series A (Transportation Revenue)		5.00			1-1-2033		3,740,000		4,003,745
Clifton TX Higher Educational Finance Corporation International Leadership Series A (Education Revenue)		5.75			8-15-2038		2,000,000		2,022,880
Dallas TX Independent School District School Building (GO Revenue, Permanent School Fund Insured)		6.38			2-15-2034		10,000,000		10,588,600
Grand Parkway Transportation Corporation TX CAB Series B (Transportation Revenue) ±		0.00			10-1-2029		1,015,000		871,032
Grand Parkway Transportation Corporation TX CAB Series B (Transportation Revenue) ±		0.00			10-1-2030		2,000,000		1,711,940
Houston TX Housing Finance Corporation Cullen Park Apartments Series A (Housing Revenue, FNMA LIQ)		5.70			12-1-2033		965,000		971,118
La Vernia TX Higher Education Finance Corporation Lifeschool of Dallas Series A (Education Revenue)		6.25			8-15-2021		3,135,000		3,508,661
La Vernia TX Higher Education Finance Corporation Lifeschool of Dallas Series A (Education Revenue)		7.50			8-15-2041		6,500,000		7,482,800
La Vernia TX Higher Education Finance Corporation Series A (Education Revenue)		6.25			2-15-2017		170,000		171,131
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		2,195,000		2,245,529
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue) 144A		6.50			9-1-2034		4,370,000		4,470,597
Lewisville TX Combination Contract Castle Hills Public Improvement Bonds Project #5 (Miscellaneous Revenue)		6.75			10-1-2032		1,855,000		1,906,476
Lower Colorado TX River Authority Series A (Utilities Revenue)		5.00			5-15-2033		2,475,000		2,754,131
North Texas Tollway Authority Second Tier Revenue Series A (Transportation Revenue)		5.00			1-1-2035		4,000,000		4,445,120
North Texas Tollway Authority Series A (Transportation Revenue)		5.00			1-1-2033		3,600,000		4,032,720
Houston Port Authority Series D-1 (GO Revenue)		5.00			10-1-2035		10,000,000		11,021,000
San Leanna TX Educational Facilities Prerefunded St. Edwards University Project (Education Revenue)		5.13			6-1-2022		820,000		834,243
San Leanna TX Educational Facilities Prerefunded St. Edwards University Project (Education Revenue)		5.13			6-1-2023		480,000		488,338
San Leanna TX Educational Facilities Prerefunded St. Edwards University Project (Education Revenue)		5.13			6-1-2024		360,000		366,253
San Leanna TX Educational Facilities Unrefunded St. Edwards University Project (Education Revenue)		5.13			6-1-2022		915,000		924,635
San Leanna TX Educational Facilities Unrefunded St. Edwards University Project (Education Revenue)		5.13			6-1-2023		520,000		525,226
San Leanna TX Educational Facilities Unrefunded St. Edwards University Project (Education Revenue)		5.13			6-1-2024		390,000		393,803

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Tarrant County TX Cultural Education Facilities Buckingham Senior Living Community Incorporated (Health Revenue)		3.88	%		11-15-2020	$	2,000,000	$	2,005,080
Tarrant County TX Cultural Education Facilities Finance Corporation Air Force Village Obligation Group (Health Revenue)		5.00			5-15-2017		1,400,000		1,421,462
Tarrant County TX Cultural Education Facilities Finance Corporation Series B (Health Revenue)		5.00			11-15-2030		4,000,000		4,207,600
Tarrant County TX Cultural Education Facilities Finance Corporation Texas Health Resources Series A (Health Revenue)		5.00			2-15-2023		9,900,000		9,949,005
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.19			9-15-2017		4,355,000		4,339,975
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2029		5,000,000		5,298,000
Texas Municipal Gas Acquisition & Supply Corporation III (Utilities Revenue)		5.00			12-15-2031		5,000,000		5,273,500
Texas Municipal Gas Acquisition & Supply Corporation Subordinated Lien Series C (Utilities Revenue) ±		2.02			12-15-2026		24,780,000		22,373,366
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		6.75			6-30-2043		4,000,000		4,602,720
Texas Private Activity Bond Surface Transportation Corporation Project NTE Mobility Partners Segments LLC (Transportation Revenue)		7.00			12-31-2038		12,500,000		14,208,250
Texas Transportation Commission Highway Improvement (Miscellaneous Revenue)		5.00			4-1-2028		7,280,000		8,507,772
									164,352,708
Utah: 0.54%
Utah County UT Charter School Ronald Wilson Reagan Series A (Education Revenue)		5.75			2-15-2022		570,000		593,524
Utah State Charter School Finance Authority Early Light Academy Project (Education Revenue)		8.50			7-15-2046		6,480,000		7,027,366
Utah State Charter School Finance Authority Oquirrh Mountain Charter School Project (Education Revenue)		8.00			7-15-2030		1,940,000		2,064,800
Utah State Charter School Finance Authority Oquirrh Mountain Charter School Project (Education Revenue)		8.00			7-15-2041		3,910,000		4,157,933
									13,843,623
Vermont: 1.53%
Vermont Student Assistance Corporation Series B Class A-2 (Education Revenue) ±		3.94			12-3-2035		16,800,000		17,704,848
Vermont Student Assistance Corporation Series B Class B (Education Revenue) ±		1.62			6-2-2042		21,883,566		21,782,901
									39,487,749
Virgin Islands: 1.10%
Virgin Islands PFA Matching Fund Loan Note Senior Lien Series A (Tobacco Revenue)		5.00			10-1-2025		7,500,000		6,371,700
Virgin Islands PFA Series A (Tax Revenue)		5.00			10-1-2029		7,480,000		6,365,929
Virgin Islands PFA Series A (Tax Revenue) 144A		5.00			10-1-2032		8,315,000		6,901,866
Virgin Islands PFA Series C (Tobacco Revenue)		5.00			10-1-2018		8,860,000		8,726,834
									28,366,329
Virginia: 0.49%
Chesapeake Bay VA Bridge & Tunnel District (Transportation Revenue)		5.00			7-1-2046		1,500,000		1,616,385
Chesapeake Bay VA Bridge & Tunnel District (Transportation Revenue)		5.00			7-1-2051		4,500,000		4,834,395
Marquis VA CDA CAB Series C (Tax Revenue) (i)¤		0.00			9-1-2041		1,824,000		230,681

22 Wells Fargo Municipal Bond Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Virginia (continued)
Marquis VA CDA CCAB (Tax Revenue) 144A±		0.00	%		9-1-2045	$	397,000	$	255,327
Marquis VA CDA Series B (Tax Revenue) (i)		5.63			9-1-2041		1,310,000		1,005,687
Riverside VA Regional Jail Authority (Miscellaneous Revenue)		5.00			7-1-2025		3,435,000		3,923,148
Watkins Centre VA CDA (Miscellaneous Revenue)		5.40			3-1-2020		609,000		609,968
									12,475,591
Washington: 1.33%
King County WA Public Hospital District #1 Valley Medical Center Refunding Bond (GO Revenue) %%		5.00			12-1-2029		8,940,000		10,055,354
King County WA Public Hospital District #1 Valley Medical Center Refunding Bond (GO Revenue) %%		5.00			12-1-2035		9,430,000		10,322,832
Spokane WA Housing Finance Commission Riverview Retirement Community Project (Health Revenue)		5.00			1-1-2023		1,355,000		1,445,284
Washington Health Care Facilities Authority Central Washington (Health Revenue)		7.00			7-1-2039		5,000,000		5,662,425
Washington Series R-A (GO Revenue)		5.00			8-1-2029		5,680,000		6,750,850
									34,236,745
West Virginia: 0.10%
West Virginia Hospital Finance Authority Improvement Series D (Health Revenue, AGM Insured)		5.50			6-1-2033		2,305,000		2,489,815
Wisconsin: 0.62%
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.00			8-1-2033		2,120,000		2,283,155
Milwaukee WI RDA Science Education Consortium Incorporated Project Series A (Education Revenue)		6.25			8-1-2043		4,650,000		5,004,935
Wisconsin HEFA Aurora Health Care Incorporated Series A (Health Revenue)		5.25			4-15-2024		1,025,000		1,116,932
Wisconsin HEFA Series M (Health Revenue, National Insured) (m)(n)±		1.10			6-1-2019		2,700,000		2,632,500
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.00			8-1-2023		470,000		494,191
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		6.75			8-1-2033		1,430,000		1,546,817
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		7.00			8-1-2043		1,575,000		1,721,207
Wisconsin PFA Carolina International School Series A (Education Revenue) 144A		7.20			8-1-2048		940,000		1,033,539
									15,833,276
Wyoming: 0.09%
West Park Hospital District Wyoming Series B (Health Revenue)		6.50			6-1-2027		500,000		565,390
Wyoming CDA (Education Revenue)		6.50			7-1-2043		1,600,000		1,744,080
									2,309,470
Total Municipal Obligations (Cost $2,491,776,445)									2,554,083,158
	Yield					Shares
Short-Term Investments: 0.17%
Investment Companies: 0.17%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.67					4,425,767	$	4,428,423
Total Short-Term Investments (Cost $4,427,956)									4,428,423

Total investments in securities (Cost $2,512,044,714) *	100.03	%		2,574,057,359
Other assets and liabilities, net	(0.03	)		(704,445	)
Total net assets	100.00	%	$	2,573,352,914

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Municipal Bond Fund 23

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.

(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

## All or a portion of this security is segregated for when-issued securities.

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.

(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.

* Cost for federal income tax purposes is $2,512,483,411 and unrealized gains (losses) consists of:

Gross unrealized gains	$	109,113,140
Gross unrealized losses		(47,539,192	)
Net unrealized gains	$	61,573,948

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 0.09%
Consumer Discretionary: 0.09%
Hotels, Restaurants & Leisure: 0.09%
Marriott International Incorporated		3.00	%		3-1-2019	$	4,810,000	$	4,892,544
Total Corporate Bonds and Notes (Cost $4,933,225)									4,892,544
Municipal Obligations: 94.77%
Alabama: 2.91%
Alabama Black Belt Energy Gas District Series A (Utilities Revenue, Royal Bank of Canada LIQ) ±		4.00			7-1-2046		13,410,000		14,292,780
Alabama Health Care Authority for Baptist Health Series B (Health Revenue, AGC Insured) ±(m)		1.15			11-15-2037		2,250,000		2,250,000
Alabama Health Care Authority for Baptist Health Series B (Health Revenue) ø		1.25			11-1-2042		17,000,000		17,000,000
Alabama HFA The Park at Sydney Drive Series B (Housing Revenue) ±		1.50			12-1-2019		10,000,000		9,999,900
Alabama Port Authority Docks Facilities AMT Series A (Airport Revenue, National Insured)		5.00			10-1-2017		2,000,000		2,005,760
Chatom AL Industrial Development Board Alabama Electric Series A (Utilities Revenue, National Rural Utilities Cooperative Finance Corporation SPA) ±		0.88			8-1-2037		13,000,000		12,996,360
Chatom AL Industrial Development Board Gulf Opportunity Zone PowerSouth Energy Cooperative Projects Series A (Utilities Revenue, National Rural Utilities Finance Corporation SPA) ±		0.95			11-15-2038		35,000,000		34,966,050
Jefferson County AL Series A (GO Revenue)		4.90			4-1-2021		16,645,000		17,335,601
Jefferson County AL Sewer Subordinated Lien Series D (Water & Sewer Revenue)		5.00			10-1-2017		1,750,000		1,787,450
Tender Option Bond Trust Receipts/Certificates Floaters Series XM0184 (Utilities Revenue, Morgan Stanley Bank LIQ) ø144A		1.17			9-1-2046		31,400,000		31,400,000
Tuscaloosa County AL IDA (Industrial Development Revenue) ø		1.00			9-1-2020		12,600,000		12,600,000
									156,633,901
Alaska: 0.04%
Alaska Industrial Development and Export Authority Snettisham Hydroelectric Project Series 2015 (Utilities Revenue)		5.00			1-1-2017		765,000		765,077
North Slope Borough AK Water & Wastewater Facilities Service (Water & Sewer Revenue)		4.00			6-30-2018		1,125,000		1,171,530
									1,936,607
Arizona: 1.52%
Goodyear AZ McDowell Road Commercial Corridor Improvement (Miscellaneous Revenue, Ambac Insured)		5.25			1-1-2017		1,580,000		1,580,174
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		3,966,963
Phoenix AZ IDA Various Republic Services Incorporated Projects (Industrial Development Revenue) ±		0.90			12-1-2035		25,000,000		25,000,000
Scottsdale AZ IDA Healthcare Series F (Health Revenue, AGM Insured) ±(m)		0.90			9-1-2045		51,000,000		51,000,000
University of Arizona Medical Center Corporation (Health Revenue)		5.00			7-1-2017		545,000		556,238
									82,103,375
Arkansas: 0.03%
Arkansas Development Finance Authority Police Headquarters & Wireless Data Equipment Project (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2017		850,000		859,979
Arkansas Development Finance Authority Police Headquarters & Wireless Data Equipment Project (Miscellaneous Revenue, AGM Insured)		4.00			6-1-2018		500,000		517,375
									1,377,354

2 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California: 6.47%
Acalanes CA Union High School District BAN (GO Revenue)		5.00	%		8-1-2017	$	4,500,000	$	4,605,075
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series A (Transportation Revenue) ±		1.00			4-1-2047		29,785,000		29,771,895
Bay Area Toll Authority California San Francisco Bay Area Toll Bridge Series C (Transportation Revenue) ±		1.37			4-1-2045		1,500,000		1,500,240
California (GO Revenue) ±		4.00			12-1-2027		5,000,000		5,063,500
California Administrative Services Sacramento Unified School District (Miscellaneous Revenue, Ambac Insured) ±		1.64			1-1-2017		615,000		615,000
California Association of Bay Area Governments Financing Authority Series D (Health Revenue, Citibank NA LOC) ø		0.69			8-1-2035		950,000		950,000
California GO Series B Sub Series B-2 (Miscellaneous Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.69			5-1-2040		5,000,000		5,000,000
California HFFA San Diego Hospital Series A (Health Revenue, National Insured) ±(m)(n)		0.83			7-15-2018		1,900,000		1,866,750
California HFFA Scripps Health Series D (Health Revenue, Bank of America NA LOC) ø		0.69			10-1-2031		4,245,000		4,245,000
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-2 (Miscellaneous Revenue) ±		1.01			4-1-2038		22,920,000		22,916,333
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-3 (Miscellaneous Revenue) ±		1.01			4-1-2038		15,600,000		15,597,504
California Infrastructure & Economic Development Bank The J. Paul Getty Trust Series A-4 (Miscellaneous Revenue) ±		1.01			4-1-2038		32,000,000		31,994,880
California Municipal Financing Authority BAN Open Door Community Health Centers (Health Revenue)		2.80			9-15-2018		6,000,000		6,050,820
California PFOTER PT-2802 (GO Revenue, National Insured, Dexia Credit Local SPA) ø		0.95			2-1-2025		9,935,000		9,935,000
California PFOTER Series DCL-009 (GO Revenue, Dexia Credit Local LOC, AGM Insured) ø144A		0.90			8-1-2027		31,940,000		31,940,000
California PFOTER Series DCL-010 (GO Revenue, Dexia Credit Local LOC, AGM Insured) ø144A		0.90			8-1-2027		7,815,000		7,815,000
California Pollution Control Financing Authority Series A (Resource Recovery Revenue) 144A±		0.90			8-1-2023		10,000,000		10,000,000
California Public Works Board Department of Corrections Project Series A (Miscellaneous Revenue, Ambac Insured)		5.00			12-1-2019		950,000		1,007,390
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		4.00			11-15-2017		260,000		266,378
California Statewide CDA Buck Institute for Research (Miscellaneous Revenue)		5.00			11-15-2018		275,000		292,845
California Statewide CDA Health Facilities Catholic Series D (Health Revenue, AGM Insured) ±(m)		0.99			7-1-2041		15,825,000		15,825,000
California Statewide CDA Health Facilities Catholic Series E (Health Revenue, AGM Insured) ±(m)		0.84			7-1-2040		22,100,000		22,100,000
California Statewide CDA Health Facilities Catholic Series F (Health Revenue, AGM Insured) ±(m)		0.99			7-1-2040		2,875,000		2,875,000
California Statewide CDA Samoa Avenue Apartments Series V (Housing Revenue) ±		0.95			12-1-2017		10,000,000		9,987,900
Compton CA PFA Prerefunded (Miscellaneous Revenue, Ambac Insured)		5.00			9-1-2022		6,925,000		7,282,746
El Monte CA Union High School District Refunding Bond (GO Revenue)		4.00			6-1-2017		5,365,000		5,431,150
Northern California Gas Authority #1 LIBOR Series B (Utilities Revenue) ±		1.17			7-1-2017		18,150,000		18,167,424
Palomar Pomerado CA Health Care District Certificate of Participation Series A (Health Revenue, AGM Insured) ±(m)		1.95			11-1-2036		18,150,000		18,150,000
Palomar Pomerado CA Health Care District Certificate of Participation Series B (Health Revenue, AGM Insured) ±(m)		1.99			11-1-2036		18,300,000		18,300,000
Palomar Pomerado CA Health Care District ROC RR-11872 (GO Revenue, National Insured, Citibank NA LIQ) ø144A		0.92			4-13-2017		6,000,000		6,000,000

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 3

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sacramento County CA Airport System AMT Senior Series B (Airport Revenue, AGM Insured)		5.50	%		7-1-2018	$	4,450,000	$	4,560,672
Sacramento County CA Airport System Refunding AMT Subordinated & PFC Series E (Airport Revenue, AGM Insured)		5.50			7-1-2018		5,345,000		5,478,251
Santa Clara CA PFOTER Series 4713 (GO Revenue, Ambac Insured, Dexia Credit Local LIQ) ø144A		1.03			12-15-2021		22,445,000		22,445,000
Yuba CA Community College CAB Series B (GO Revenue, Ambac Insured) ¤		0.00			8-1-2039		750,000		250,388
									348,287,141
Colorado: 0.87%
Colorado HEFA Covenant Retirement Community Series A (Health Revenue)		3.00			12-1-2017		1,400,000		1,419,432
Colorado HEFA Covenant Retirement Community Series A (Health Revenue)		4.00			12-1-2018		1,150,000		1,194,436
Colorado HEFA Montbello Senior Housing Project Series I (Housing Revenue, FHA Insured)		1.05			8-1-2018		2,755,000		2,740,371
Colorado HFA Series 3127X (Health Revenue, Bank of America NA LIQ) ø144A		1.32			7-1-2034		8,625,000		8,625,000
Colorado Springs CO Utilities Series A (Utilities Revenue, Bank of America NA SPA) ø		0.74			11-1-2023		12,375,000		12,375,000
Denver CO City & County 2300 Welton Project (Housing Revenue)		0.65			4-1-2017		2,290,000		2,289,565
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2017		400,000		412,652
Denver CO City & County Airport Sub Series A (Airport Revenue)		5.00			11-15-2018		500,000		529,575
Denver CO City & County Airport Sub Series B (Airport Revenue)		5.00			11-15-2017		600,000		619,554
Denver CO City & County Airport Sub Series B (Airport Revenue)		5.00			11-15-2018		600,000		638,874
Denver CO City & County Airport Sub Series F2 (Airport Revenue, AGC Insured) ±(m)		1.05			11-15-2025		4,275,000		4,275,000
E-470 Colorado Public Highway Authority Senior Index Series A (Transportation Revenue) ±		1.91			9-1-2039		11,725,000		11,676,928
									46,796,387
Connecticut: 2.90%
Connecticut Economic Recovery Notes Series A-3 (GO Revenue) ø		0.77			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		1,905,737
Connecticut HEFA Yale University Issue Series U-1 (Education Revenue) ±		1.00			7-1-2033		1,000,000		987,210
Connecticut HEFA Yale University Series A (Education Revenue) ±		0.80			7-1-2048		5,125,000		5,117,671
Connecticut HEFA Yale University Series A (Education Revenue) ±		1.00			7-1-2042		15,000,000		14,718,450
Connecticut HEFA Yale University Series T-2 (Education Revenue) ±		0.60			7-1-2029		34,520,000		34,511,715
Connecticut HEFA Yale University Series X-2 (Education Revenue) ±		0.90			7-1-2037		24,600,000		24,504,552
Connecticut HFA Housing Mortgage Finance Program Series A (Housing Revenue)		2.40			11-15-2020		1,250,000		1,265,388
Connecticut HFA Housing Mortgage Finance Program Series F (Housing Revenue)		1.55			5-15-2020		1,020,000		999,784
Connecticut Series A (Miscellaneous Revenue) ±		1.15			3-1-2018		2,875,000		2,868,043
Connecticut Series A (Miscellaneous Revenue) ±		1.48			5-15-2018		7,000,000		7,013,580
Connecticut Series D (Miscellaneous Revenue) ±		1.42			8-15-2017		14,855,000		14,872,975
Connecticut Series D (Miscellaneous Revenue) ±		1.61			8-15-2018		6,000,000		6,006,720
New Britain CT (GO Revenue, Ambac Insured)		5.00			4-15-2017		1,165,000		1,179,050
New Haven CT Series A (GO Revenue)		3.00			8-15-2017		13,410,000		13,537,931
New Haven CT TAN (GO Revenue)		2.50			5-18-2017		4,000,000		4,018,240
Waterbury CT (GO Revenue)		5.00			2-1-2017		1,350,000		1,354,523
Waterbury CT (GO Revenue)		5.00			2-1-2018		1,215,000		1,262,276
									156,123,845

4 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Delaware: 0.45%
Delaware EDA Delmarva Power and Light Company Series A (Industrial Development Revenue) ø		0.96	%		10-1-2017	$	6,400,000	$	6,400,000
Delaware EDA Delmarva Power and Light Company Series B (Utilities Revenue) ø		0.85			7-1-2024		11,000,000		11,000,000
New Castle County DE Series ZF2088 (GO Revenue, Morgan Stanley Bank LIQ) ø144A		0.77			10-1-2045		6,665,000		6,665,000
									24,065,000
District of Columbia: 0.90%
District of Columbia DW&P Series B (Water & Sewer Revenue, TD Bank NA SPA) ø		0.72			10-1-2050		25,500,000		25,500,000
District of Columbia HFA MFHR Channing Phillips Project (Housing Revenue) ±		0.70			9-1-2017		5,750,000		5,746,665
District of Columbia Population Services International (Miscellaneous Revenue, SunTrust Bank LOC) ø		0.80			11-1-2042		17,100,000		17,100,000
									48,346,665
Florida: 3.37%
Escambia County FL HFA Acts Retirement Life Communities Incorporated Series B (Health Revenue, AGC Insured, TD Bank NA SPA) ø		0.90			11-15-2029		1,275,000		1,275,000
Florida Department of Environmental Protection Series A (Tax Revenue)		5.00			7-1-2027		5,000,000		5,151,850
Florida Department of Transportation Right of Way Acquisition and Bridge Construction Series A (Tax Revenue)		5.38			7-1-2027		5,695,000		5,880,144
Florida Housing Finance Corporation Hilltop Landings Apartments Project Series A (Housing Revenue)		0.75			3-1-2017		1,500,000		1,499,835
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2017		225,000		230,387
Florida Mid-Bay Bridge Authority 2nd Senior Lien Series C (Transportation Revenue)		5.00			10-1-2018		300,000		315,255
Florida University of North Florida Financing Corporation Housing Project (Education Revenue, AGM Insured)		5.00			11-1-2018		3,100,000		3,274,995
Florida University of North Florida Financing Corporation Housing Project (Education Revenue, AGM Insured)		5.00			11-1-2019		3,215,000		3,461,944
Lakeland FL Energy System (Utilities Revenue) ±		1.47			10-1-2017		5,220,000		5,222,453
Lee County FL IDA Florida Power and Light Company Series A (Industrial Development Revenue) ø		0.65			12-1-2046		15,000,000		15,000,000
Lee County FL Solid Waste System (Resource Recovery Revenue)		2.00			10-1-2017		5,235,000		5,252,485
Lee County FL Solid Waste System (Resource Recovery Revenue)		5.00			10-1-2018		2,350,000		2,479,297
Lee County FL Solid Waste System (Resource Recovery Revenue)		5.00			10-1-2020		600,000		657,672
Miami-Dade County FL Aviation Series B (Airport Revenue)		5.00			10-1-2017		300,000		308,625
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, AGM Insured, Citibank NA LIQ) ø144A		0.92			7-1-2018		1,000,000		1,000,000
Miami-Dade County FL Expressway Authority Toll System (Transportation Revenue, Dexia Credit Local LOC, Dexia Credit Local LIQ) ±144A		1.19			10-13-2023		9,150,000		9,150,000
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		1.19			3-8-2026		16,860,000		16,860,000
Miami-Dade County FL HFA Miami Children’s Hospital Project Series A (Health Revenue)		5.25			8-1-2021		855,000		930,454
Miami-Dade County FL HFA St. John Plaza Apartments (Housing Revenue) ±		0.95			8-1-2019		9,750,000		9,675,315
Miami-Dade County FL International Airport Series C (Airport Revenue, AGM Insured)		5.25			10-1-2019		16,775,000		17,267,514
Miami-Dade County FL School Board Foundation Incorporated (Miscellaneous Revenue, Dexia Credit Local LOC, National Insured, Dexia Credit Local LIQ) ø144A		1.27			5-1-2031		19,210,000		19,210,000
Miami-Dade County FL Seaport Series A (Airport Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.75			10-1-2050		17,000,000		17,000,000

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Florida (continued)
Orange County FL Health Facilities Authority Lakeside Behavioral Healthcare Incorporated Project (Health Revenue, SunTrust Bank LOC) ø		0.80	%		7-1-2027	$	2,790,000	$	2,790,000
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		3.00			5-15-2017		1,065,000		1,072,040
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		4.00			5-15-2018		500,000		516,810
Palm Beach County FL Health Facilities Authority Lifespace Communities Series C (Health Revenue)		4.00			5-15-2019		780,000		818,431
Palm Beach County FL HFA Retirement Life Communities Project (Health Revenue)		4.00			11-15-2019		2,675,000		2,800,565
Pasco County FL School Board Certificates Series B (Miscellaneous Revenue, Ambac Insured) ±(m)		1.20			8-1-2030		6,825,000		6,825,000
Pinellas County FL HFA Series A (Health Revenue)		5.65			5-1-2037		3,380,000		3,433,877
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XG0010 (Airport Revenue, AGC Insured, Bank of America NA LIQ) ø144A		1.18			10-1-2038		13,500,000		13,500,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-ZF0286 (Airport Revenue, AGC Insured, TD Bank NA LIQ) ø144A		1.07			10-1-2032		8,510,000		8,510,000
									181,369,948
Georgia: 1.17%
Atlanta GA Urban Residential Finance Authority The Remington Apartments Project (Housing Revenue) ±		1.05			6-1-2019		10,250,000		10,199,673
Burke County GA Development Authority Georgia Power Company Plant Vogtle Project First Series 2012 (Utilities Revenue)		1.75			12-1-2049		4,600,000		4,609,062
Burke County GA Development Authority Georgia Power Company Vogtle Plant Project Second Series 2012 (Utilities Revenue) ±		1.75			12-1-2049		5,135,000		5,143,832
Burke County GA Development Authority Georgia Transmission Corporation (Industrial Development Revenue) ±		1.30			1-1-2052		14,000,000		14,023,380
Cedartown GA Housing Authority Cherokee Springs Apartments Project (Housing Revenue) ±		1.00			4-1-2019		5,000,000		4,977,700
Cedartown GA Housing Authority Grayfield Apartments Project (Housing Revenue) ±		1.00			1-1-2019		3,800,000		3,796,200
DeKalb County GA Housing Authority Sterling at Candler Village Project (Housing Revenue) ±		1.75			1-1-2021		7,200,000		7,200,864
Gainesville & Hall County GA Development Authority Senior Living Facilities Lanier Village Series B (Health Revenue, AGC Insured, TD Bank NA SPA) ø		0.90			11-15-2033		6,805,000		6,805,000
Savannah GA EDA Exempt Facilities Home Depot Project Series B (Industrial Development Revenue, SunTrust Bank LOC) ø		0.82			8-1-2025		6,400,000		6,400,000
									63,155,711
Guam: 0.07%
Guam International Airport Authority Series A (Airport Revenue)		5.00			10-1-2017		850,000		870,417
Guam International Airport Authority Series C (Airport Revenue)		5.00			10-1-2017		2,750,000		2,800,380
									3,670,797
Hawaii: 0.08%
Hawaii Department of Budget and Finance Queens Health System Series B (Health Revenue) ±		1.18			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		1,035,370
Hawaii Department of Transportation Airports Division Lease AMT (Miscellaneous Revenue)		5.00			8-1-2017		425,000		434,282
									4,524,652

6 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Idaho: 0.42%
Idaho Housing & Finance Association Series A (Housing Revenue, FNMA LOC) ø		0.91	%		1-1-2038	$	17,795,000	$	17,795,000
Idaho TAN (GO Revenue)		2.00			6-30-2017		5,000,000		5,026,650
									22,821,650
Illinois: 8.85%
Chicago IL (GO Revenue)		5.00			1-1-2020		1,285,000		1,282,944
Chicago IL (GO Revenue)		5.00			1-1-2021		2,000,000		1,995,120
Chicago IL (GO Revenue, National Insured)		5.25			1-1-2017		500,000		500,030
Chicago IL Board of Education Series A (GO Revenue, National Insured) ¤		0.00			12-1-2018		5,265,000		4,926,513
Chicago IL Board of Education Series A (GO Revenue, National Insured)		5.25			12-1-2017		1,645,000		1,678,278
Chicago IL Board of Education Series A2 (GO Revenue) ±		1.48			3-1-2035		72,320,000		71,103,578
Chicago IL Board of Education Series C (GO Revenue)		5.00			12-1-2017		1,620,000		1,558,602
Chicago IL Neighborhoods Alive 21 Program Series B (GO Revenue)		5.00			1-1-2019		1,925,000		1,922,575
Chicago IL Park District Limited Tax Series D (GO Revenue)		4.00			1-1-2017		1,000,000		1,000,070
Chicago IL Park District Limited Tax Series D (GO Revenue)		4.00			1-1-2018		2,760,000		2,822,293
Chicago IL Prerefunded Neighborhoods Alive 21 Program Series B (GO Revenue)		5.00			1-1-2017		305,000		305,000
Chicago IL Refunding Emergency System (GO Revenue, AGM/FGIC Insured)		5.50			1-1-2019		3,000,000		3,174,750
Chicago IL Refunding Project Series A (GO Revenue)		4.00			1-1-2019		1,250,000		1,235,800
Chicago IL Refunding Project Series B (GO Revenue)		5.00			1-1-2019		3,205,000		3,200,962
Chicago IL Refunding Project Series B (GO Revenue)		5.00			1-1-2020		3,295,000		3,289,728
Chicago IL Series A (GO Revenue)		4.00			1-1-2019		1,335,000		1,319,834
Chicago IL Series A (GO Revenue, AGM Insured)		5.00			1-1-2018		10,000,000		10,076,800
Chicago IL Series A (GO Revenue)		5.00			12-1-2019		1,000,000		998,110
Chicago IL Series A (GO Revenue, AGM Insured)		5.25			1-1-2017		735,000		735,059
Chicago IL Series A2 (GO Revenue, Ambac Insured)		5.50			1-1-2018		3,135,000		3,168,545
Chicago IL Series B (GO Revenue)		5.00			1-1-2017		565,000		565,062
Chicago IL Series B (GO Revenue, Ambac Insured)		5.00			12-1-2018		2,540,000		2,547,112
Chicago IL Series C (Water & Sewer Revenue)		4.00			1-1-2017		1,980,000		1,980,139
Chicago IL Series C (GO Revenue, National Insured)		5.00			1-1-2018		5,350,000		5,483,269
Chicago IL Series D (GO Revenue, AGM/FGIC Insured)		5.25			1-1-2017		1,210,000		1,210,097
Chicago IL Unrefunded Neighborhoods Alive 21 Program Series B (GO Revenue)		5.00			1-1-2017		245,000		245,027
Chicago IL Unrefunded Series B (GO Revenue)		5.00			1-1-2017		845,000		845,000
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		3.00			12-30-2017		1,340,000		1,353,078
Cook County IL Bedford Park Village Refunding Bond (Tax Revenue)		3.00			12-30-2018		880,000		886,310
Cook County IL Refunding Series A (GO Revenue)		4.00			11-15-2018		300,000		311,280
Cook County IL Refunding Series C (GO Revenue)		4.25			11-15-2018		100,000		104,218
Cook County IL School District No. 158 Series A (GO Revenue) ±144A		4.50			12-1-2026		10,780,000		10,622,396
Cook County IL School District No. 163 Series A (GO Revenue)		5.00			1-1-2026		4,000,000		4,001,880
Cook County IL School District No. 99 Series A (GO Revenue) ±		1.50			12-1-2026		7,515,000		7,516,127
Eastern Illinois EDA Providence at Thornberry and Sycamore Hills Project (Housing Revenue) ±		0.85			7-1-2019		10,500,000		10,496,850
Grundy Kendall & Will Counties IL Community School District No. 201 (GO Revenue, AGC Insured)		5.75			10-15-2019		540,000		578,081
Illinois (Miscellaneous Revenue)		2.50			7-1-2017		3,000,000		3,011,220
Illinois (GO Revenue)		3.00			2-1-2017		8,740,000		8,750,663
Illinois (GO Revenue)		4.00			2-1-2018		5,550,000		5,636,969
Illinois (Miscellaneous Revenue)		4.00			7-1-2018		13,610,000		13,858,791
Illinois (GO Revenue)		5.00			3-1-2017		5,000,000		5,028,550
Illinois (Miscellaneous Revenue)		5.00			5-1-2017		5,070,000		5,126,176
Illinois (Miscellaneous Revenue)		5.00			7-1-2017		10,000,000		10,162,000

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
Illinois (GO Revenue)		5.00	%		1-1-2018	$	15,200,000	$	15,577,112
Illinois (GO Revenue)		5.00			3-1-2018		2,000,000		2,055,620
Illinois (Miscellaneous Revenue)		5.00			5-1-2019		2,500,000		2,590,925
Illinois (Miscellaneous Revenue)		5.00			8-1-2019		10,335,000		10,723,389
Illinois (GO Revenue)		5.00			1-1-2020		8,075,000		8,377,732
Illinois (GO Revenue)		5.00			1-1-2021		3,300,000		3,442,032
Illinois Educational Authority University of Chicago Series B-1 (Education Revenue) ±		1.10			7-1-2036		6,485,000		6,474,105
Illinois Finance Authority Northwestern Memorial Hospital Series A-3 (Health Revenue, JPMorgan Chase & Company SPA) ø		0.72			8-15-2042		100,000		100,000
Illinois Finance Authority Presbyterian Homes Obligated Group Series A (Health Revenue)		4.00			5-1-2019		500,000		524,815
Illinois Finance Authority Presbyterian Homes Obligated Group Series A (Health Revenue)		4.00			11-1-2019		500,000		527,795
Illinois Finance Authority Presbyterian Homes Obligated Group Series B (Health Revenue) ±		1.78			5-1-2036		5,000,000		5,005,950
Illinois Finance Authority Series XF2243 (Health Revenue, AGC Insured, Citibank NA LIQ) ø144A		0.92			8-15-2039		16,100,000		16,100,000
Illinois Finance Authority YMCA of Metropolitan Chicago Project (Miscellaneous Revenue, Harris NA LOC) ø		0.73			6-1-2034		5,000,000		5,000,000
Illinois Metropolitan Pier & Exposition Authority Prerefunded CAB (Tax Revenue, National Insured) ¤		0.00			6-15-2017		450,000		447,683
Illinois Metropolitan Pier & Exposition Authority Unrefunded CAB (Tax Revenue, National Insured) ¤		0.00			6-15-2017		1,780,000		1,763,855
Illinois Refunding Bond (GO Revenue)		5.00			1-1-2018		8,685,000		8,900,475
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2017		1,425,000		1,451,534
Illinois Refunding Bond (Miscellaneous Revenue)		5.00			8-1-2018		1,715,000		1,773,259
Illinois Series A (GO Revenue)		5.00			4-1-2017		6,840,000		6,897,593
Illinois Series A (Tax Revenue)		5.00			6-1-2017		250,000		253,415
Illinois Sports Facilities Authority (Tax Revenue, Ambac Insured) ¤		0.00			6-15-2017		320,000		316,493
Illinois Sports Facilities Authority (Tax Revenue)		5.00			6-15-2017		760,000		768,778
Illinois Toll Highway Authority Series A-2 (Transportation Revenue, AGM Insured, JPMorgan Chase & Company SPA) ø		0.75			1-1-2031		16,500,000		16,500,000
Kane County IL School District No. 129 Aurora West Side Series B (GO Revenue)		2.00			2-1-2017		2,190,000		2,191,599
Kane County IL School District No. 129 Aurora West Side Series B (GO Revenue)		2.00			2-1-2018		2,430,000		2,443,146
Kendall, Kane & Will Counties IL Community Unit School District #308 (GO Revenue)		4.00			10-1-2018		2,000,000		2,087,720
Lake County IL School District No. 38 Big Hollow CAB (GO Revenue, Ambac Insured) ¤		0.00			2-1-2017		500,000		499,210
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.00			12-1-2017		415,000		419,283
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.50			12-1-2018		400,000		410,092
Minooka IL Special Assessment Refunding & Improvement (Miscellaneous Revenue, AGM Insured)		3.50			12-1-2019		564,000		579,476
Regional Transportation Authority Illinois Refunding Bond Series B (Tax Revenue) ±		0.85			6-1-2025		38,675,000		38,675,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XG0008 (Health Revenue, AGC Insured, Bank of America NA LIQ) ø144A		1.01			8-15-2047		23,375,000		23,375,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XG0050 (Health Revenue, Deutsche Bank LIQ) ø144A		0.92			11-1-2039		31,420,000		31,420,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XM0450 (Tax Revenue, Deutsche Bank LIQ) ø144A		0.83			12-1-2036		31,235,000		31,235,000

8 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois (continued)
University of Illinois Auxiliary Facilities (Education Revenue, JPMorgan Chase & Company SPA) ø		0.95	%		4-1-2038	$	10,000,000	$	10,000,000
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2017		500,000		504,625
Western Illinois University Board of Trustees Certificate of Participation (Miscellaneous Revenue, AGM Insured)		3.00			10-1-2018		500,000		508,645
									476,536,242
Indiana: 1.16%
Gary IN Woodlake-Concord Project (Housing Revenue, FHA Insured) ±		1.00			10-1-2017		22,715,000		22,701,598
Hammond IN Local Public Improvement Bank Advance Fund Program Series A (Miscellaneous Revenue) %%		2.13			12-31-2017		16,913,000		16,968,306
Indiana Finance Authority I-69 Section 5 Project (Miscellaneous Revenue)		4.00			3-1-2017		2,115,000		2,117,009
Indiana Finance Authority Ohio River Bridges East End Crossing Project Series B (Industrial Development Revenue)		5.00			1-1-2019		4,610,000		4,615,809
Indiana HFFA Ascension Health Subordinated Credit Group Series A-8 (Health Revenue) ±		1.25			11-1-2027		1,445,000		1,408,167
Indiana Housing and Community Development Authority DBG Apartment Projects (Housing Revenue)		1.10			3-1-2018		4,380,000		4,370,408
Jasper County IN Northern Indiana Public Service Company Project (Industrial Development Revenue, Ambac Insured)		5.70			7-1-2017		2,000,000		2,039,160
Rockport IN PCR Indiana-Michigan Power Company Series B (Utilities Revenue) ±		1.75			6-1-2025		2,000,000		1,993,120
Tender Option Bond Trust Receipts/Certificates Floaters Series 2015-XF0115 (Utilities Revenue, JPMorgan Chase & Company LIQ) ø144A		1.02			4-15-2018		1,200,000		1,200,000
Whiting IN BP Products North America Incorporated Project Series 2014 (Resource Recovery Revenue)		1.48			12-1-2044		5,000,000		4,948,550
									62,362,127
Iowa: 1.21%
Buchanan County IA People’s Memorial Hospital (Health Revenue)		1.50			12-1-2018		2,500,000		2,476,625
Iowa Finance Authority BAN Shenandoah Medical Center Project (Health Revenue)		1.75			6-1-2018		7,000,000		6,983,690
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.95			4-1-2022		22,500,000		22,500,000
Iowa Finance Authority UnityPoint Health Project Series B-1 (Health Revenue, Union Bank NA LOC) ø		0.73			2-15-2039		15,000,000		15,000,000
Iowa Higher Education Loan Authority Central College Project Series A (Education Revenue)		2.00			12-1-2018		18,400,000		18,365,960
									65,326,275
Kansas: 0.45%
Kansas Department of Transportation Highway Libor Index Series B-3 (Tax Revenue) ±		0.65			9-1-2017		4,500,000		4,493,655
Kansas Department of Transportation Highway Libor Index Series B-4 (Tax Revenue) ±		0.73			9-1-2018		7,000,000		6,953,240
Kansas Department of Transportation Highway Libor Index Series B-5 (Tax Revenue) ±		0.81			9-1-2019		6,000,000		5,939,700
Kansas Development Finance Authority Series A (GO Revenue)		5.00			5-1-2018		5,710,000		5,995,100
Lawrence KS Series A (Industrial Development Revenue, U.S. Bank NA LOC) ø		1.00			12-1-2018		730,000		730,000
									24,111,695

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Kentucky: 2.22%
Ashland KY Medical Center Ashland Hospital Corporation Series B (Health Revenue)		5.00	%		2-1-2018	$	900,000	$	925,011
Harrison KY Harrison Memorial Hospital Project BAN (Health Revenue)		1.50			5-1-2017		9,065,000		9,066,450
Kentucky Economic Development Finance Authority Owensboro Medical Health System Series A (Health Revenue)		5.00			6-1-2017		2,525,000		2,557,749
Kentucky Housing Corporation Winterwood Rural Housing Portfolio (Housing Revenue) ±		1.30			12-15-2017		9,449,000		9,450,039
Kentucky Public Transportation Infrastructure Authority Tolls Downtown Crossing Project BAN Series A (Transportation Revenue)		5.00			7-1-2017		55,920,000		56,817,516
Louisville & Jefferson Counties KY Louisville Gas & Electric Company Project Series A (Utilities Revenue) ±		1.65			10-1-2033		2,000,000		2,001,140
Louisville & Jefferson Counties KY PCR Louisville Gas & Electric Company Project Series B (Utilities Revenue) ±		1.35			11-1-2027		16,000,000		15,952,480
Pikeville KY Pikeville Medical Center Incorporated Expansion Project BAN (Health Revenue)		2.00			3-1-2017		9,000,000		9,014,130
Pikeville KY University of Pikeville College of Optometry BAN (Education Revenue, USDA Insured)		3.00			8-1-2017		13,950,000		13,964,229
									119,748,744
Louisiana: 1.50%
East Baton Rouge Parish LA Sewerage Commission Refunding Bond Series A (Water & Sewer Revenue) ±		0.93			2-1-2046		24,000,000		23,886,240
Louisiana Gas & Fuel Tax 2nd Lien Series A (Tax Revenue) ±		0.90			5-1-2043		11,200,000		11,123,840
Louisiana Housing Corporation Twin Lakes of Leesville Project (Housing Revenue) ±		1.00			9-1-2019		7,200,000		7,168,680
Louisiana Offshore Terminal Authority Deepwater Loop LLC Project Series B-1 (Airport Revenue) ±		2.20			10-1-2040		750,000		753,285
Shreveport LA Water & Sewer Refunding Series A (Water & Sewer Revenue, Build America Mutual Assurance Company Insured)		4.00			12-1-2017		3,000,000		3,074,460
St. James Parish LA Nucor Steel LLC Project Gulf Opportunity Zone Series A-1 (Industrial Development Revenue) ø		0.95			11-1-2040		35,000,000		35,000,000
									81,006,505
Maryland: 2.50%
Baltimore County MD Oak Crest Village Series A (Health Revenue)		5.00			1-1-2027		2,000,000		2,000,220
Maryland CDA Adams Crossing Apartments Phase 2 (Housing Revenue)		1.15			8-1-2018		8,250,000		8,178,143
Maryland CDA Allendale Apartments Series I (Housing Revenue)		1.02			5-1-2017		10,000,000		9,987,400
Maryland CDA Basilica Place Apartments Series 2015E (Housing Revenue)		1.10			3-1-2017		6,900,000		6,896,619
Maryland CDA Chase House (Housing Revenue)		2.15			12-1-2018		17,600,000		17,602,112
Maryland CDA Commons of Avalon Series 2015C (Housing Revenue)		1.00			1-1-2017		12,850,000		12,849,872
Maryland CDA Hollins House (Housing Revenue)		1.27			11-1-2017		12,000,000		11,950,080
Maryland CDA Keys Pointe Phase 1B Series I (Housing Revenue)		1.60			11-1-2018		11,000,000		10,927,950
Maryland CDA Multifamily Development Conifer Village (Housing Revenue)		0.80			4-1-2017		13,000,000		12,991,810
Maryland CDA St. James Terrace Apartments Series J (Housing Revenue)		1.60			4-1-2019		12,000,000		11,902,560
Maryland CDA Tabco Towers Series K (Housing Revenue)		1.40			12-1-2017		7,150,000		7,136,773
Maryland CDA The Brentwood Series O (Housing Revenue)		1.40			12-1-2017		7,700,000		7,685,755
Maryland CDA Waverly View Apartments Series G (Housing Revenue)		1.15			2-1-2019		8,000,000		7,898,720
Maryland Department of Housing and Community Development Series A (Housing Revenue)		1.25			10-1-2017		6,900,000		6,891,927
									134,899,941

10 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Massachusetts: 1.13%
Commonwealth of Massachusetts Series C (GO Revenue, State Street Bank & Trust Company SPA) ø		0.71	%		1-1-2021	$	3,985,000	$	3,985,000
Massachusetts HEFA Partners Healthcare Series G-2 (Health Revenue, AGM Insured) ±(m)		0.64			7-1-2042		8,655,000		8,655,000
Massachusetts HFA Binnall House Project Series A (Housing Revenue) ±		1.50			8-1-2018		4,625,000		4,624,954
Massachusetts Water Resources Authority Series DCL 005 (Water & Sewer Revenue, Dexia Credit Local LOC, AGM Insured) ø144A		0.84			8-1-2025		9,895,000		9,895,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XF2306 (Education Revenue, Morgan Stanley Bank LIQ) ø144A		0.97			7-1-2033		14,000,000		14,000,000
University of Massachusetts Building Authority Series A (Education Revenue, Barclays Bank plc SPA) ø		0.74			5-1-2038		19,605,000		19,605,000
									60,764,954
Michigan: 3.33%
Birmingham MI Public Schools (GO Revenue)		5.00			11-1-2017		4,955,000		5,121,092
Charlotte MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		685,000		691,535
Charlotte MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,515,000		1,631,549
Detroit MI (GO Revenue)		5.00			11-1-2017		7,485,000		7,759,325
Forest Hills MI Public Schools (GO Revenue)		4.00			5-1-2017		2,150,000		2,170,511
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			11-1-2017		225,000		229,892
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		4.00			11-1-2018		220,000		229,346
Genesee County MI Limited Tax Water Supply System (GO Revenue, Build America Mutual Assurance Company Insured)		5.00			11-1-2019		240,000		259,536
Grand Ledge MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,235,000		1,250,907
Jackson County MI Hospital Finance Authority Series A (Health Revenue)		5.00			6-1-2017		1,105,000		1,123,896
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		2,325,000		2,347,181
Lake Orion MI Community School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		4,650,000		4,872,038
Mattawan MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		875,000		883,348
Mattawan MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		855,000		895,826
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series C (Water & Sewer Revenue)		5.00			11-1-2017		2,000,000		2,073,220
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		7,195,914
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		20,999,600
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-4 (Water & Sewer Revenue)		5.00			7-1-2017		15,640,000		15,931,373
Michigan Finance Authority Local Government Loan Program Detroit Water & Sewer Series D-7 (Water & Sewer Revenue)		5.00			7-1-2017		1,630,000		1,658,378
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2017		10,000,000		10,186,900
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-5 (Water & Sewer Revenue, National Insured)		5.00			7-1-2018		17,500,000		18,374,650

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Michigan (continued)
Michigan Finance Authority Senior Lien Detroit Water & Sewer Series C-6 (Water & Sewer Revenue)		5.00	%		7-1-2018	$	4,130,000	$	4,321,921
Michigan Finance Authority Series B (Water & Sewer Revenue)		5.00			10-1-2024		300,000		358,911
Michigan Grant Anticipation Bonds (Miscellaneous Revenue, AGM Insured)		5.25			9-15-2018		1,500,000		1,545,585
Michigan Hospital Finance Authority Ascension Health Group Project Series A-2 (Health Revenue) ±		1.50			11-1-2027		1,855,000		1,823,929
Michigan Hospital Finance Authority Ascension Health Group Project Series E-1 (Health Revenue) ±		1.10			11-15-2046		4,250,000		4,180,810
Michigan Hospital Finance Authority Ascension Health Series A-3 (Health Revenue) ±		1.87			11-1-2027		6,510,000		6,542,615
Michigan Hospital Finance Authority Ascension Health Series F-3 (Health Revenue) ±		1.40			11-15-2047		9,250,000		9,235,200
Michigan Hospital Finance Authority Prerefunded (Health Revenue) ±		0.95			11-15-2033		65,000		64,592
Michigan Hospital Finance Authority Refunding Ascension Health Senior Credit Group (Health Revenue) ±		1.50			11-15-2047		1,360,000		1,360,966
Michigan Hospital Finance Authority Unrefunded (Health Revenue) ±		0.95			11-15-2033		1,935,000		1,928,711
Michigan State Housing Development Authority Cranbrook Tower Apartments Project (Housing Revenue, FHA Insured) ±		1.45			7-1-2018		10,000,000		9,996,700
Michigan Strategic Fund Limited Obligation Events Center Project Series A (Tax Revenue) ±		4.13			7-1-2045		16,000,000		16,200,000
Michigan Strategic Fund Waste Management Incorporated Project (Resource Recovery Revenue) ±		1.50			8-1-2027		4,505,000		4,507,703
Pinckney MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2017		645,000		651,108
Pinckney MI Community Schools (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		1,035,000		1,083,666
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2017		1,000,000		1,012,820
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		750,000		785,265
Rockford MI Public School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2019		1,000,000		1,076,290
Shiawassee & Ingham Counties MI Perry Public Schools (GO Revenue, Qualified School Board Loan Fund Insured)		4.00			5-1-2020		410,000		439,532
Walled Lake MI Consolidated School District (GO Revenue, Qualified School Board Loan Fund Insured)		5.00			5-1-2018		6,020,000		6,307,455
									179,309,796
Minnesota: 0.67%
Apple Valley MN Senior Living LLC Project Series B (Health Revenue)		3.00			1-1-2019		650,000		658,983
Apple Valley MN Senior Living LLC Project Series B (Health Revenue)		3.00			1-1-2020		670,000		677,886
Apple Valley MN Senior Living LLC Project Series B (Health Revenue)		4.00			1-1-2021		695,000		724,496
Apple Valley MN Senior Living LLC Project Series B (Health Revenue)		4.00			1-1-2022		720,000		750,154
Hennepin County MN Series C (GO Revenue, U.S. Bank NA SPA) ø		0.71			12-1-2033		3,000,000		3,000,000
Minneapolis & St. Paul MN Housing & RDA Children’s Hospital Clinics Series A (Miscellaneous Revenue, AGM Insured, U.S. Bank NA SPA) ±		0.73			8-15-2037		7,600,000		7,600,000
Minneapolis & St. Paul MN Housing & RDA HealthSpan Series B (Health Revenue, Ambac Insured) ±(m)(n)		0.95			11-15-2017		3,400,000		3,383,000
Minneapolis MN Plymouth Stevens House Project Series A (Housing Revenue)		1.00			12-1-2017		2,400,000		2,392,488
Minneapolis MN Seward Towers Apartments Project Series A (Housing Revenue)		1.10			1-1-2018		11,700,000		11,672,154
Minnesota HFA Series C (Housing Revenue)		1.60			8-1-2018		2,210,000		2,210,972
Todd County MN United Hospital District BAN Lakewood Health System Series A (Health Revenue)		1.30			12-1-2018		3,000,000		2,981,430
									36,051,563

12 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Mississippi: 1.06%
Jackson MS Development Bank Series A (Water & Sewer Revenue, AGM Insured)		5.00	%		9-1-2019	$	300,000	$	324,816
Mississippi Business Finance Corporation Gulf Power Company Project (Industrial Development Revenue) ø		0.75			11-1-2042		7,100,000		7,100,000
Mississippi Business Finance Corporation Mississippi Power Company Project (Industrial Development Revenue) ø		0.83			12-1-2027		9,400,000		9,400,000
Mississippi Business Finance Corporation Waste Management Incorporated Project (Resource Recovery Revenue) ±		1.38			3-1-2027		800,000		800,184
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.50			10-1-2017		565,000		579,899
Mississippi Development Bank Magnolia Regional Health Center Series 2011A (Health Revenue)		5.50			10-1-2018		595,000		628,397
Mississippi Hospital Equipment & Facilities Authority Baptist Memorial Health Series B2 (Health Revenue) ±144A		1.40			9-1-2022		3,925,000		3,919,505
Mississippi Hospital Equipment & Facilities Authority Mississippi Baptist Health System Incorporated Series A (Health Revenue)		5.00			8-15-2018		4,110,000		4,200,502
Perry County MS PCR Leaf River Forest Products Incorporated Project (Industrial Development Revenue, Georgia-Pacific LLC LOC) ø144A		0.90			2-1-2022		30,000,000		30,000,000
									56,953,303
Missouri: 0.92%
Independence MO IDA Heritage House Apartments Project (Housing Revenue)		1.50			12-1-2018		8,700,000		8,703,741
Springfield MO Public Utility Refunding (Utilities Revenue)		5.00			8-1-2017		14,835,000		15,192,375
St. Louis MO Series 004 (Airport Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) ø144A		0.90			7-1-2026		11,010,000		11,010,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2015-XF1015 (Health Revenue, Deutsche Bank LIQ) ø144A		0.90			11-15-2048		14,805,000		14,805,000
									49,711,116
Montana: 0.15%
Montana Board of Investments Municipal Finance Consolidation (Miscellaneous Revenue) ±		0.52			3-1-2025		1,000,000		1,000,000
Montana Board of Investments Municipal Finance Consolidation (Miscellaneous Revenue) ±		0.52			3-1-2028		5,600,000		5,600,000
Montana Board of Investments Municipal Finance Consolidation (Miscellaneous Revenue) ±		0.52			3-1-2035		1,750,000		1,750,000
									8,350,000
Nebraska: 0.14%
Tender Option Bond Trust Receipts/Certificates Floaters Series XM0184 (Airport Revenue, AGC Insured, Bank of America NA LIQ) ø144A		1.09			10-1-2033		7,500,000		7,500,000
Nevada: 0.28%
Clark County NV School District (GO Revenue)		5.00			6-15-2018		1,000,000		1,035,480
Washoe County NV (GO Revenue, Dexia Credit Local LIQ) ø144A		1.07			12-9-2030		13,125,000		13,125,000
Washoe County NV Sierra Pacific Power Company Project Series A (Utilities Revenue) ±		1.50			8-1-2031		850,000		835,032
									14,995,512
New Jersey: 6.24%
Atlantic County NJ BAN (GO Revenue)		2.00			6-22-2017		19,566,000		19,636,046
Beach Haven NJ BAN (GO Revenue)		2.00			5-12-2017		5,085,000		5,095,729

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
Bridgeton NJ BAN (GO Revenue)		2.00	%		8-25-2017	$	9,795,681	$	9,820,072
Burlington County NJ Governmental Leasing Program Series A (Miscellaneous Revenue)		2.00			4-26-2017		3,130,000		3,139,421
Burlington County NJ Governmental Leasing Program Series B (Miscellaneous Revenue)		2.00			4-26-2017		10,370,000		10,401,214
Clinton NJ BAN (GO Revenue)		1.50			1-25-2017		2,909,000		2,909,495
East Brunswick NJ BAN (GO Revenue)		2.00			3-17-2017		15,000,000		15,028,800
East Orange NJ Capital Improvement Series A (GO Revenue, AGM Insured)		3.00			6-1-2017		1,420,000		1,429,983
East Orange NJ Capital Improvement Series A (GO Revenue, AGM Insured)		4.00			6-1-2018		650,000		672,282
Franklin NJ BAN Series A (GO Revenue)		2.00			4-12-2017		5,226,250		5,236,284
Glassboro NJ School District Refunding (GO Revenue, National Insured)		4.00			8-15-2017		1,355,000		1,358,117
Hightstown NJ BAN (GO Revenue)		2.00			2-1-2017		3,809,000		3,811,514
Linden NJ BAN (GO Revenue)		2.00			4-11-2017		4,339,208		4,347,713
Maple Shade NJ BAN (GO Revenue)		2.00			6-29-2017		8,572,449		8,587,451
Monmouth County NJ BAN (GO Revenue)		1.50			1-27-2017		9,452,379		9,455,215
New Jersey Building Authority Series A (Miscellaneous Revenue)		4.00			6-15-2017		1,065,000		1,074,723
New Jersey Building Authority Series A (Miscellaneous Revenue)		5.00			6-15-2017		5,595,000		5,671,484
New Jersey Building Authority Series A (Miscellaneous Revenue)		5.00			6-15-2019		1,100,000		1,150,853
New Jersey Certificate of Participation Equipment Lease Purchase Series A (Miscellaneous Revenue)		5.00			6-15-2017		1,000,000		1,013,670
New Jersey EDA Refunded School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2017		7,785,000		8,072,344
New Jersey EDA Refunding Transportation Project Sub Lease Series A (Transportation Revenue)		5.00			5-1-2018		5,170,000		5,343,505
New Jersey EDA School Facilities Construction Notes Series BBB (Miscellaneous Revenue)		5.00			6-15-2021		5,000,000		5,295,200
New Jersey EDA School Facilities Construction Notes Series C (Miscellaneous Revenue) ±		2.52			2-1-2018		2,000,000		2,012,780
New Jersey EDA School Facilities Construction Notes Series DD1 (Miscellaneous Revenue)		5.00			12-15-2018		2,220,000		2,317,125
New Jersey EDA School Facilities Construction Notes Series K (Miscellaneous Revenue) ±		1.46			2-1-2017		9,800,000		9,800,000
New Jersey EDA School Facilities Construction Notes Series PP (Miscellaneous Revenue)		5.00			6-15-2019		12,710,000		13,299,109
New Jersey EDA School Facilities Construction Notes Series XX (Miscellaneous Revenue)		5.00			6-15-2019		15,000,000		15,695,250
New Jersey EDA Transportation Project Series A (Transportation Revenue)		5.00			5-1-2017		11,175,000		11,288,203
New Jersey EDA Unrefunded School Facilities Construction Series DD1 (Miscellaneous Revenue)		5.00			12-15-2017		315,000		326,866
New Jersey HEFAR Student Loan Assistance Series 1 (Education Revenue)		5.00			12-1-2017		600,000		616,056
New Jersey HFA NCC Manor Project Series 2015K (Housing Revenue) ±		1.05			2-1-2018		20,500,000		20,465,765
New Jersey HFA Prospect Park Apartments Project Series 2015R (Housing Revenue) ±		0.88			10-1-2017		8,145,000		8,140,276
New Jersey HFFA St. Joseph’s Healthcare System Group (Health Revenue)		3.00			7-1-2018		1,000,000		1,020,260
New Jersey HFFA St. Joseph’s Healthcare System Group (Health Revenue)		4.00			7-1-2019		1,200,000		1,259,808
New Jersey HFFA St. Joseph’s Healthcare System Group (Health Revenue)		4.00			7-1-2020		1,965,000		2,083,607
New Jersey HFFA St. Joseph’s Healthcare System Group (Health Revenue)		5.00			7-1-2021		1,000,000		1,108,540
New Jersey Higher Education Assistance Authority Senior Series 1A (Education Revenue)		5.00			12-1-2017		1,740,000		1,792,374
New Jersey Higher Education Assistance Authority Series 1A (Education Revenue)		5.00			12-1-2017		2,000,000		2,053,520
New Jersey Housing and Mortgage Finance Agency Oakwood Towers Project Series U (Housing Revenue) ±		0.80			11-1-2017		3,000,000		2,995,170

14 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New Jersey (continued)
New Jersey Housing and Mortgage Finance Agency Series B (Housing Revenue)		1.05	%		5-1-2018	$	2,000,000	$	1,989,980
New Jersey Housing and Mortgage Finance Agency Series F (Housing Revenue) ±		0.95			3-1-2018		8,450,000		8,426,256
New Jersey Housing and Mortgage Finance Agency Trent Center West Senior Apartments Project Series FF (Housing Revenue)		1.10			12-1-2017		6,000,000		5,988,840
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue)		5.00			12-15-2019		4,405,000		4,632,078
New Jersey Transportation Trust Fund Series A (Miscellaneous Revenue, Ambac Insured)		5.75			6-15-2017		1,700,000		1,729,036
New Jersey Transportation Trust Fund Series A-1 (Transportation Revenue)		5.00			6-15-2019		5,250,000		5,543,265
New Jersey Transportation Trust Fund Series AA (Miscellaneous Revenue)		5.00			6-15-2017		695,000		704,501
New Jersey Transportation Trust Fund Series AA (Miscellaneous Revenue)		5.00			6-15-2020		1,600,000		1,687,984
New Jersey Transportation Trust Fund Series B (Miscellaneous Revenue)		5.00			6-15-2017		3,135,000		3,177,855
New Jersey Transportation Trust Fund Series B (Miscellaneous Revenue, National Insured)		5.50			12-15-2017		2,505,000		2,594,429
New Jersey Transportation Trust Fund Series B-1 (Transportation Revenue)		5.00			12-15-2017		2,275,000		2,334,651
New Jersey TTFA Series DC8033 (Transportation Revenue, Dexia Credit Local LOC, AGM Insured, Dexia Credit Local LIQ) ø144A		0.84			12-15-2022		12,255,000		12,255,000
New Jersey Turnpike Authority Series C (Transportation Revenue) ±		1.20			1-1-2017		13,000,000		13,000,000
Newark NJ TAN Series A (GO Revenue)		2.50			2-15-2017		4,500,000		4,503,375
Rahway NJ BAN (GO Revenue)		2.00			6-29-2017		4,441,105		4,457,093
Tender Option Bond Trust Receipts/Certificates Floaters Series 2016-XG0047 (Health Revenue, AGC Insured, Deutsche Bank LIQ) ø144A		1.12			7-1-2038		24,431,373		24,431,373
Union County NJ BAN (GO Revenue)		1.25			3-3-2017		6,979,670		6,978,972
Union County NJ BAN (GO Revenue)		1.50			3-17-2017		3,627,000		3,628,850
Union County NJ BAN (GO Revenue)		1.50			3-22-2017		3,526,000		3,527,587
									336,416,949
New Mexico: 0.75%
New Mexico Municipal Energy Acquisition Authority Gas Supply Sub Series B (Utilities Revenue, Royal Bank of Canada SPA) ±		1.16			11-1-2039		40,685,000		40,436,008
New York: 16.35%
Babylon NY IDA Covanta Babylon Series A (Industrial Development Revenue)		5.00			1-1-2018		2,500,000		2,589,575
Binghamton NY City School District TAN (GO Revenue)		1.50			1-31-2017		3,000,000		3,000,960
Broome County NY BAN (GO Revenue)		2.00			5-5-2017		19,620,000		19,679,449
Cicero NY BAN (GO Revenue)		2.00			3-31-2017		3,660,549		3,665,601
Cold Spring NY BAN (GO Revenue)		2.00			5-12-2017		3,040,000		3,046,414
Concord NY BAN (GO Revenue)		2.00			2-23-2017		2,664,000		2,666,451
Erie County NY BAN (GO Revenue)		2.00			7-20-2017		1,695,186		1,699,729
Erie County NY Clarence Central School District BAN (GO Revenue)		2.00			7-13-2017		14,260,000		14,317,896
Freeport NY BAN Series C (GO Revenue)		2.00			5-3-2017		11,360,000		11,389,990
Fulton NY City School District BAN (GO Revenue)		2.00			6-29-2017		12,575,000		12,622,785
Hamburg NY BAN (GO Revenue)		2.00			7-6-2017		6,580,000		6,607,570
Hancock NY Central School District BAN (GO Revenue)		2.00			7-6-2017		4,950,000		4,965,345
Hastings Town NY BAN (GO Revenue)		2.00			7-6-2017		1,700,000		1,704,301
Long Beach NY BAN (GO Revenue)		1.50			2-16-2017		3,575,000		3,576,037
Long Island NY Power Authority Electric System Series C (Utilities Revenue) ±		1.31			5-1-2033		10,000,000		10,039,100
Madison County NY BAN (GO Revenue)		2.00			4-14-2017		2,500,000		2,501,150
Metropolitan Transportation Authority New York Refunding Series 2008A-2A (Tax Revenue) ±		1.10			11-1-2026		6,810,000		6,810,068
Metropolitan Transportation Authority New York Refunding Sub Series B-3A (Tax Revenue) ±		1.09			11-1-2028		3,000,000		3,001,860

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
Metropolitan Transportation Authority New York Series D-2 (Transportation Revenue) ±		1.09	%		11-15-2044	$	6,100,000	$	6,095,242
Metropolitan Transportation Authority New York Sub Series A3 (Transportation Revenue) ±		1.22			11-15-2042		10,000,000		9,960,600
Metropolitan Transportation Authority New York Sub Series D-2A (Transportation Revenue, AGM Insured) ±		0.90			11-1-2032		36,650,000		36,639,372
Nassau County NY Interim Finance Authority Series B (Tax Revenue, Sumitomo Mitsui Banking SPA) ø		0.73			11-15-2021		9,600,000		9,600,000
Nassau County NY Lawrence Union Free School District TAN (GO Revenue)		1.50			6-23-2017		4,000,000		4,001,120
New York Akron Central School District BAN (GO Revenue)		2.00			6-22-2017		6,423,907		6,454,356
New York Energy R&D Authority PCR Keyspan Generation Series A (Industrial Development Revenue, Ambac Insured) ±(m)		1.00			10-1-2028		1,725,000		1,725,000
New York Environmental Facilities Corporation Waste Management Incorporated Project Series A (Resource Recovery Revenue)		2.75			7-1-2017		1,650,000		1,661,286
New York Homer Central School District BAN (GO Revenue)		2.00			6-30-2017		9,430,000		9,463,665
New York Local Government Assistance Corporation Refinance Subordinated Lien Series A-10V (Tax Revenue, AGM Insured) ±(m)(n)		0.83			4-1-2017		6,400,000		6,400,000
New York Local Government Refunding Series C (Tax Revenue)		5.50			4-1-2017		1,420,000		1,436,500
New York Nassau Health Care Corporation RAN (Health Revenue)		2.00			1-17-2017		8,000,000		8,002,080
New York NY Adjusted Fiscal 2006 Sub Series F-3 (GO Revenue, Sumitomo Mitsui Banking LOC) ø		0.71			9-1-2035		9,700,000		9,700,000
New York NY Adjusted Fiscal 2008 Sub Series A-3 (GO Revenue, AGM Insured) ±(m)		0.84			8-1-2026		3,000,000		3,000,000
New York NY Adjusted Fiscal 2008 Sub Series C-4 (GO Revenue, AGC Insured) ±(m)		0.84			10-1-2027		52,225,000		52,225,000
New York NY Adjusted Fiscal 2014 Sub Series D-3 (GO Revenue, JPMorgan Chase & Company SPA) ø		0.74			8-1-2038		10,000,000		10,000,000
New York NY Adjusted Fiscal 2015 Sub Series F-4 (GO Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.75			6-1-2044		32,600,000		32,600,000
New York NY Adjusted Fiscal 2015 Sub Series F-5 (GO Revenue, Barclays Bank plc LIQ) ø		0.75			6-1-2044		9,000,000		9,000,000
New York NY Adjusted Fiscal 2015 Sub Series F-6 (GO Revenue, JPMorgan Chase & Company SPA) ø		0.74			6-1-2044		18,200,000		18,200,000
New York NY Adjusted Fiscal 2017 Sub Series A-5 (GO Revenue, Landesbank Hessen-Thüringen SPA) ø		0.78			8-1-2044		36,000,000		36,000,000
New York NY HFA 605 West 42nd Street Series A (Housing Revenue, Bank of China LOC) ø		0.90			5-1-2048		25,000,000		25,000,000
New York NY Housing Development Corporation Series I-2-B (Housing Revenue) ±		1.85			5-1-2021		16,050,000		16,027,530
New York NY IDA 123 Washington LLC Project (Industrial Development Revenue, Bank of China LOC) ø		0.90			10-1-2042		15,000,000		15,000,000
New York NY Municipal Water Finance Authority Adjusted Fiscal 2013 Sub Series AA-2 (Water & Sewer Revenue, Bank of Tokyo-Mitsubishi SPA) ø		0.75			6-15-2046		27,215,000		27,215,000
New York NY Municipal Water Finance Authority Adjusted Fiscal 2014 Sub Series AA (Water & Sewer Revenue, JPMorgan Chase & Company SPA) ø		0.74			6-15-2050		9,900,000		9,900,000
New York NY Municipal Water Finance Authority Adjusted Fiscal 2017 Sub Series BB (Water & Sewer Revenue, State Street Bank & Trust Company SPA) ø		0.74			6-15-2049		12,800,000		12,800,000
New York NY Municipal Water Finance Authority Series AA-2 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		1.06			6-15-2032		15,600,000		15,600,000
New York NY Municipal Water Finance Authority Series AA3 (Water & Sewer Revenue, Dexia Credit Local SPA) ø		0.93			6-15-2032		20,000,000		20,000,000
New York NY Series A-6 (GO Revenue) ±		1.22			8-1-2031		39,950,000		39,912,447
New York NY Series J Sub Series J-2 (GO Revenue, AGM Insured) ±(m)		0.99			6-1-2036		20,475,000		20,475,000
New York NY Series J Sub Series J-3 (GO Revenue, AGM Insured) ±(m)		0.84			6-1-2036		28,000,000		28,000,000
New York NY Series J-4 (GO Revenue) ±		1.27			8-1-2025		10,865,000		10,868,911

16 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
New York (continued)
New York NY Sub Series C-4 (GO Revenue, AGM Insured) ±(m)		0.84	%		1-1-2032	$	1,025,000	$	1,025,000
New York NY Sub Series H-5 (GO Revenue, Dexia Credit Local LOC) ø		0.93			3-1-2034		11,660,000		11,660,000
New York NY Transitional Finance Authority Future Tax Secured Bonds Fiscal 2007 Series A (Tax Revenue, Dexia Credit Local SPA) ø		0.93			8-1-2022		7,400,000		7,400,000
New York NY Transitional Finance Authority NYC Recovery Series 3 Sub Series 3D (Tax Revenue, Dexia Credit Local SPA) ø		1.20			11-1-2022		20,435,000		20,435,000
New York NY Transitional Finance Authority Series 1 (Tax Revenue, JPMorgan Chase & Company SPA) ø		0.74			11-1-2022		6,330,000		6,330,000
New York Thruway Authority Series II (Transportation Revenue, National Insured)		5.00			1-1-2020		8,940,000		9,270,333
New York Transportation Development Corporation American Airlines Incorporated John F Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2020		3,500,000		3,640,630
New York Transportation Development Corporation American Airlines Incorporated John F. Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2017		12,500,000		12,682,250
New York Transportation Development Corporation American Airlines Incorporated John F. Kennedy International Airport Project (Airport Revenue)		5.00			8-1-2018		10,000,000		10,316,700
New York Urban Development Corporation Certificate of Participation James A Farley Post Office Project (Miscellaneous Revenue) 144A		4.20			2-1-2017		37,290,000		37,275,084
Onondaga County NY Lafayette Central School District RAN (GO Revenue)		1.50			6-30-2017		12,477,222		12,490,947
Onondaga County NY Lafayette Central School District RAN (GO Revenue)		2.00			6-23-2017		2,000,000		2,006,900
Orange & Ulster Counties NY Board of Cooperative Educational Services RAN Series B (Miscellaneous Revenue)		1.50			7-31-2017		11,000,000		10,995,930
Oyster Bay NY BAN Series A (GO Revenue)		2.75			2-3-2017		11,000,000		11,006,050
Oyster Bay NY Public Improvement (GO Revenue)		3.00			8-15-2017		780,000		780,897
Oyster Bay NY TAN Series B (GO Revenue)		5.25			4-7-2017		3,000,000		3,019,230
Sackets Harbor NY BAN (GO Revenue)		2.00			6-16-2017		2,750,000		2,758,140
South Jefferson NY Central School District (GO Revenue)		0.95			2-17-2017		1,116,638		1,116,024
Suffolk County NY Copiague Union Free School District TAN (GO Revenue)		1.50			6-22-2017		18,500,000		18,510,545
Suffolk County NY Public Improvement Serial Bonds Series B (GO Revenue, Build America Mutual Assurance Company Insured)		2.00			10-15-2019		880,000		885,729
Suffolk County NY Sachem Central School District TAN (GO Revenue)		2.00			6-29-2017		20,000,000		20,063,400
Suffolk County NY TAN (GO Revenue)		2.00			7-26-2017		30,000,000		30,113,400
Utica NY School District (GO Revenue)		3.00			7-1-2017		1,320,000		1,328,686
Vestal NY BAN (GO Revenue)		2.00			5-12-2017		4,350,000		4,360,614
Watertown NY BAN (GO Revenue)		2.00			4-20-2017		5,850,000		5,857,137
Westchester County NY Hudson Project (Health Revenue)		3.00			1-1-2017		500,000		500,025
Yonkers NY Series D (GO Revenue)		3.00			8-1-2017		2,045,000		2,065,736
Yonkers NY Series D (GO Revenue)		4.00			8-1-2018		3,135,000		3,252,813
Yonkers NY Series E (GO Revenue)		3.25			9-1-2017		790,000		800,310
Yonkers NY Series E (GO Revenue)		4.00			9-1-2018		1,225,000		1,274,037
Yonkers NY Series F (GO Revenue)		2.00			9-1-2017		345,000		346,639
Yonkers NY Series F (GO Revenue)		3.00			9-1-2018		350,000		358,400
									880,773,976
North Carolina: 1.37%
Ashville NC Housing Authority Spruce Hill Apartments (Housing Revenue) ±		0.95			8-1-2019		10,000,000		9,978,500
Charlotte NC Airport Series D (Airport Revenue, Bank of America NA LOC) ø		0.72			7-1-2034		6,000,000		6,000,000
Charlotte NC Housing Authority MFHR Boulevard Phase III Project (Housing Revenue) ±		0.75			8-1-2017		10,500,000		10,498,110
Greensboro NC Housing Authority Claremont Courts Project (Housing Revenue) ±		0.95			11-1-2017		4,800,000		4,796,064
North Carolina Capital Finance Republic Services Incorporated Project Series 2013 (Resource Recovery Revenue) ±		0.95			6-1-2038		11,600,000		11,600,000

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
North Carolina (continued)
North Carolina HFA Weaver Investment Company Rural Development Portfolio Series A (Housing Revenue) ±		1.50	%		12-1-2018	$	12,800,000	$	12,782,080
North Carolina Medical Care Commission FirstHealth Carolina Project Series 2008A (Health Revenue, Branch Banking & Trust SPA) ø		0.77			10-1-2028		14,035,000		14,035,000
North Carolina Medical Care Commission Healthcare Facilities Series A (Health Revenue, JPMorgan Chase & Company SPA) ø		0.80			11-1-2034		3,900,000		3,900,000
									73,589,754
North Dakota: 0.11%
Dickinson ND Series A (Tax Revenue)		3.00			10-1-2017		1,100,000		1,113,618
Hazen ND Sakakawea Medical Center Project BAN (Health Revenue)		2.50			7-1-2017		3,000,000		3,003,060
Williston ND Series A (Tax Revenue, AGM Insured)		3.00			5-1-2017		1,950,000		1,961,291
									6,077,969
Ohio: 3.22%
Cleveland OH Airport System Series A (Airport Revenue, Ambac Insured)		5.25			1-1-2017		2,315,000		2,315,255
Cleveland OH Airport System Series C (Airport Revenue, AGC Insured)		5.00			1-1-2017		2,895,000		2,895,318
Crawford County OH Avita Health System Obligated Group Project (Health Revenue)		1.43			11-1-2017		15,000,000		15,000,450
Cuyahoga OH Metropolitan Housing Authority Bohn Tower Apartments Project (Housing Revenue)		0.70			3-1-2017		12,700,000		12,694,158
Cuyahoga OH Metropolitan Housing Authority Carver Park Phase I Project (Housing Revenue) ±		1.00			9-1-2019		7,000,000		6,928,950
Franklin County OH Poindexter Phase IIA Project (Housing Revenue) ±		1.10			12-1-2018		3,000,000		2,993,340
Huber Heights OH BAN Series A (Miscellaneous Revenue)		2.00			6-1-2017		3,000,000		3,011,190
Lancaster OH Port Authority (Utilities Revenue, Royal Bank of Canada SPA) ±		0.81			2-1-2017		3,895,000		3,894,494
Lancaster OH Port Authority (Utilities Revenue, Royal Bank of Canada SPA) ±		0.86			8-1-2017		3,240,000		3,239,773
Lancaster OH Port Authority (Utilities Revenue, Royal Bank of Canada SPA) ±		0.96			8-1-2018		4,000,000		3,985,440
Lancaster OH Port Authority (Utilities Revenue, Royal Bank of Canada SPA) ±		1.13			5-1-2038		8,500,000		8,425,540
Marietta OH BAN (GO Revenue)		1.50			5-12-2017		3,475,000		3,478,301
Medina County OH Manor Apartments Project (Housing Revenue) ±		1.00			12-1-2017		3,000,000		2,997,510
Ohio Air Quality Development Authority AMT Refunding Bond Pollution Control 1st Energy Series C (Industrial Development Revenue) ±		3.95			11-1-2032		450,000		188,114
Ohio Air Quality Development Authority FirstEnergy Generation Series 2006-A (Utilities Revenue) ±		3.75			12-1-2023		25,000,000		10,461,750
Ohio Air Quality Development Authority FirstEnergy Generation Series 2009-A (Utilities Revenue)		5.70			8-1-2020		16,790,000		7,018,052
Ohio HFA Coopermill Manor Project (Housing Revenue)		0.85			8-1-2017		15,850,000		15,817,983
Ohio Higher Educational Facility John Carroll University Project (Education Revenue) ±		2.25			9-1-2033		1,495,000		1,507,618
Ohio Housing Finance Agency Northland Village Apartments Project (Housing Revenue) ±		1.00			5-1-2019		14,000,000		13,961,920
Ohio University Hospital Health System Series B (Health Revenue) ø		1.00			1-15-2033		15,220,000		15,220,000
Ohio University Hospital Health System Series B (Health Revenue) ø		1.00			1-15-2045		13,000,000		13,000,000
Revere OH School Facilities Improvement BAN (GO Revenue)		2.00			5-1-2017		8,500,000		8,518,190
Sandusky OH School District Classroom Facilities Improvement (GO Revenue)		2.25			6-1-2017		9,800,000		9,827,146
Warren County OH Health Care Facilities Otterbein Homes Series A (Health Revenue)		4.00			7-1-2017		4,375,000		4,434,894
Warrensville Heights OH Certificate of Participation (Miscellaneous Revenue)		3.13			12-13-2017		1,500,000		1,515,315
									173,330,701

18 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oklahoma: 0.56%
Cleveland County OK Detention Facilities Project (Tax Revenue)		3.00	%		3-1-2018	$	1,000,000	$	1,017,670
Cleveland County OK Detention Facilities Project (Tax Revenue)		3.00			3-1-2019		1,505,000		1,545,319
Cleveland County OK Educational Facilities Moore Public Schools Project (Miscellaneous Revenue)		5.00			6-1-2017		4,825,000		4,902,538
Comanche County OK Hospital Authority Refunding (Health Revenue)		5.00			7-1-2017		2,855,000		2,886,291
Oklahoma Capitol Improvement Authority Higher Education Projects Series A (Miscellaneous Revenue)		5.00			7-1-2018		2,225,000		2,351,580
Oklahoma County OK Independent School District No. 52 Series B (GO Revenue)		2.00			3-1-2017		2,550,000		2,554,361
Oklahoma HFA Savanna Landing Apartments (Housing Revenue) ±		0.85			7-1-2019		2,500,000		2,480,575
Oklahoma Housing Finance Agency Cherokee Terrace Apartments (Housing Revenue, GNMA Insured) ±		0.70			12-1-2017		5,000,000		4,996,100
Oklahoma School District Certificate of Participation (Miscellaneous Revenue)		1.00			6-30-2017		7,330,000		7,316,733
									30,051,167
Oregon: 0.40%
Oregon Facilities Authority Providence Health & Services Series C (Health Revenue) ±		1.61			10-1-2020		14,650,000		14,651,465
Oregon Housing Development Holiday Garden Apartments Series 2015D (Housing Revenue) ±		0.80			8-1-2018		6,400,000		6,398,272
Portland OR Portland International Airport Series 18-A (Airport Revenue, Bank of China LOC) ø		0.86			7-1-2026		500,000		500,000
									21,549,737
Pennsylvania: 3.82%
Beaver County PA IDA FirstEnergy Generation Series A (Utilities Revenue)		2.15			3-1-2017		3,300,000		2,141,700
Beaver County PA IDA FirstEnergy Generation Series B (Utilities Revenue) ±		2.50			12-1-2041		4,000,000		2,398,000
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		3.50			12-1-2035		3,025,000		1,264,511
Beaver County PA IDA FirstEnergy Generation Series B (Industrial Development Revenue) ±		4.25			10-1-2047		5,000,000		4,507,200
Bethlehem PA Area School District Authority (Miscellaneous Revenue) ±		0.86			1-1-2030		8,105,000		8,090,168
Clarion County PA IDA Clarion University Housing Project Series D (Housing Revenue)		3.00			7-1-2017		900,000		903,627
Commonwealth of Pennsylvania (GO Revenue)		5.00			1-15-2020		16,430,000		17,920,858
Delaware Valley PA Regional Finance Authority Local Government Series 2182 (Miscellaneous Revenue, Morgan Stanley Bank LIQ) ø144A		0.91			7-1-2017		6,000,000		6,000,000
Leigh County PA IDA PPL Corporation Series A (Industrial Development Revenue) ±		0.90			9-1-2029		12,500,000		12,463,625
Lycoming County PA Authority Association of Independent Colleges & Universities of Pennsylvania Financing Program (Education Revenue) ±		1.85			11-1-2035		2,000,000		1,973,600
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.50			10-1-2030		3,000,000		2,965,230
Montgomery County PA IDA Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.60			3-1-2034		5,000,000		4,960,750
Montgomery County PA IDA Refunding Peco Energy Company Project Series A (Industrial Development Revenue) ±		2.55			6-1-2029		12,910,000		12,831,120
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.76			11-1-2018		700,000		695,856
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.82			11-1-2019		1,000,000		989,190
North Pennsylvania Water Authority (Water & Sewer Revenue) ±		0.91			11-1-2024		5,000,000		4,958,400
Pennsylvania EDFA Solid Waste Disposal Republic Services Incorporated Project (Resource Recovery Revenue) ±		1.15			6-1-2044		10,000,000		10,000,000

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania (continued)
Pennsylvania HEFA Association of Independent Colleges and Universities Financing Program York College of Pennsylvania Project Series T-2 (Education Revenue) ±		1.35	%		5-1-2034	$	2,565,000	$	2,557,433
Pennsylvania HEFA Independent Colleges Series I4 (Education Revenue) ±		1.50			11-1-2031		5,800,000		5,798,956
Pennsylvania HEFA Wilkes University Project Series A (Education Revenue)		4.00			3-1-2020		735,000		765,951
Pennsylvania HEFA Wilkes University Project Series A (Education Revenue)		5.00			3-1-2021		500,000		541,630
Pennsylvania HEFAR Association of Independent Colleges and Universities of Pennsylvania Financing Program Messiah College Project Series I-3 (Education Revenue) ±		1.20			11-1-2031		130,000		129,715
Pennsylvania HEFAR Association of Independent Colleges and Universities of Pennsylvania Financing Program Mount Aloysius College Project Series R-1 (Education Revenue) ±		1.25			11-1-2041		1,500,000		1,496,985
Pennsylvania HEFAR Thomas Jefferson University Series B (Education Revenue) ø		1.05			9-1-2045		12,075,000		12,075,000
Pennsylvania HFA Courtyard Preservation Project (Housing Revenue) ±		1.85			12-1-2019		17,000,000		17,006,800
Pennsylvania HFA Daniel Flood Tower Apartments Series CC (Housing Revenue) ±		0.75			1-1-2018		3,250,000		3,249,968
Pennsylvania Public School Building Authority The School District of Pennsylvania Project (Miscellaneous Revenue)		5.00			4-1-2017		3,500,000		3,530,660
Pennsylvania Series 2 (GO Revenue)		5.00			4-15-2017		1,250,000		1,265,038
Pennsylvania Turnpike Commission Series A-2 (Transportation Revenue) ±		1.13			12-1-2018		5,000,000		4,969,550
Pennsylvania Turnpike Commission Series B-1 (Transportation Revenue) ±		1.32			12-1-2018		19,000,000		18,991,830
Philadelphia PA Public School Building Authority Series A (Miscellaneous Revenue)		5.00			6-1-2017		2,000,000		2,028,660
Philadelphia PA School District Refunding Bond Series C (GO Revenue)		5.00			9-1-2018		1,880,000		1,964,280
Philadelphia PA School District Series C (GO Revenue)		5.00			9-1-2018		250,000		261,208
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2017		750,000		766,365
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2017		6,050,000		6,175,901
Philadelphia PA School District Series D (GO Revenue)		5.00			9-1-2019		1,250,000		1,328,925
Philadelphia PA School District Series E (GO Revenue)		5.00			9-1-2018		145,000		151,135
Philadelphia PA School District Series F (GO Revenue)		5.00			9-1-2019		1,000,000		1,063,140
Scranton PA RAN (Tax Revenue) %%		2.50			12-15-2017		3,000,000		2,998,890
University Area Joint Authority Pennsylvania Refunding Bond (Water & Sewer Revenue) ±		1.12			11-1-2028		3,300,000		3,294,357
Upper Darby PA School District (GO Revenue)		3.00			5-1-2017		500,000		503,045
Upper Darby PA School District (GO Revenue)		4.00			5-1-2018		700,000		722,995
Warwick PA School District (GO Revenue)		3.00			2-15-2017		1,000,000		1,002,510
Warwick PA School District (GO Revenue)		4.00			2-15-2018		1,250,000		1,287,850
Warwick PA School District (GO Revenue)		4.00			2-15-2019		1,025,000		1,077,060
Washington County PA Washington Hospital Project (Health Revenue)		4.00			7-1-2017		1,085,000		1,097,326
Westmoreland County PA IDA Excela Health Project (Health Revenue)		4.00			7-1-2017		1,650,000		1,666,764
Westmoreland County PA IDA Excela Health Project (Health Revenue)		5.00			7-1-2018		1,650,000		1,717,419
York County PA Refunding Bond (GO Revenue) ±		0.72			6-1-2033		9,445,000		9,439,522
									205,990,703
Puerto Rico: 0.03%
Puerto Rico Electric Power Authority Series TT (Utilities Revenue, AGM Insured)		5.00			7-1-2017		550,000		558,047
Puerto Rico Highway & Transportation Authority Series E (Transportation Revenue, AGM Insured)		5.50			7-1-2017		575,000		584,787
Puerto Rico Public Improvement Series A (GO Revenue, AGC Insured)		5.00			7-1-2017		250,000		253,658
									1,396,492

20 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Rhode Island: 0.24%
Providence RI Redevelopment Agency Public Safety Building Project Series A (Miscellaneous Revenue)		4.00	%		4-1-2018	$	3,025,000	$	3,106,433
Providence RI Series A (GO Revenue)		5.00			7-15-2017		1,400,000		1,426,334
Rhode Island HEFA Refunding Bond Providence Financing Program (Education Revenue, AGM Insured)		3.00			5-15-2017		1,815,000		1,826,507
Rhode Island HEFA Refunding Bond Providence Financing Program (Education Revenue, AGM Insured)		3.00			5-15-2018		1,535,000		1,564,073
Rhode Island Housing and Mortgage Finance Corporation Series 66-B (Housing Revenue) ±		1.42			10-1-2045		4,400,000		4,398,064
Rhode Island Student Loan Authority AMT Program Senior Series A (Education Revenue)		5.00			12-1-2019		750,000		802,268
									13,123,679
South Carolina: 0.74%
Berkeley County SC IDA Nucor Corporation Project (Industrial Development Revenue) ø		1.00			4-1-2030		5,000,000		5,000,000
Columbia SC Waterworks (Water & Sewer Revenue, Sumitomo Mitsui Banking LOC) ø		0.74			2-1-2038		8,075,000		8,075,000
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		3.00			4-1-2017		600,000		601,752
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		3.00			4-1-2018		500,000		502,010
Jasper County SC Jasper County School Project (Miscellaneous Revenue)		4.00			4-1-2019		500,000		513,055
Piedmont SC Municipal Power Agency Series A-3 (Utilities Revenue)		5.25			1-1-2019		5,720,000		5,936,788
South Carolina HFA West Greenville Project (Housing Revenue) ±		1.00			4-1-2019		7,600,000		7,566,104
South Carolina Housing Finance & Development Authority Spartanburg 7 Project Series A (Housing Revenue) ±		1.05			1-1-2019		2,575,000		2,572,296
South Carolina Housing Finance and Development Authority Waters at Longcreek (Housing Revenue) ±		1.60			12-1-2019		9,075,000		9,081,171
									39,848,176
Tennessee: 1.81%
Anderson County TN HEFA Gate Manor Apartments Project (Housing Revenue) ±		0.90			8-1-2019		4,100,000		4,083,518
Knoxville TN Industrial Development Board Collateralized Housing Golden Age Retirement Village Project (Housing Revenue, GNMA Insured)		0.85			12-1-2017		5,900,000		5,886,312
Memphis TN HEFA Ashland Lakes II Apartments Project Series A (Housing Revenue, U.S. Bank NA LOC) ø		0.74			5-1-2043		11,500,000		11,500,000
Metropolitan Government of Nashville & Davidson County TN Industrial Development Board (Resource Recovery Revenue) ±		1.50			8-1-2031		7,500,000		7,490,925
Nashville TN HEFA The Paddock at Grandview Apartments Project (Housing Revenue)		0.95			5-1-2018		16,500,000		16,417,335
Sevier County TN Health Educational and Housing Facility Board Hallmark Rural Housing Portfolio (Housing Revenue) ±		0.85			9-1-2017		2,874,000		2,873,109
Shelby County TN Health Educational & Housing Facilities Board Methodist Le Bonheur Series B (Health Revenue, AGM Insured, U.S. Bank NA SPA) ø		0.72			6-1-2042		48,000,000		48,000,000
Tennessee Energy Acquisition Corporation Series A (Utilities Revenue)		5.25			9-1-2017		1,430,000		1,463,319
									97,714,518
Texas: 8.50%
Austin TX Affordable Housing Public Facility Corporation Pathways at Georgian Manor (Housing Revenue) ±		1.15			11-1-2019		14,040,000		13,981,594
Clear Creek TX Independent School District (GO Revenue) ±		3.00			2-15-2035		4,425,000		4,476,286
Dallas TX Independent High School District (GO Revenue) ±		1.50			2-15-2034		4,200,000		4,202,520

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Donna TX International Toll Bridge (Transportation Revenue)		6.25	%		2-15-2037	$	21,850,000	$	23,012,857
El Paso TX Public Facilities Corporation Rental Assistance Demonstration Program (Housing Revenue) ±		1.00			10-1-2018		9,600,000		9,573,408
Galveston TX Dickinson Independent High School District (GO Revenue) ±		1.05			8-1-2037		4,250,000		4,246,345
Harris County TX Cypress-Fairbanks Independent High School Series 2014B-2 (GO Revenue) ±		3.00			2-15-2040		960,000		972,077
Harris County TX Cypress-Fairbanks Independent High School Series 2014B-3 (GO Revenue) ±		1.05			2-15-2044		12,000,000		11,973,600
Harris County TX Cypress-Fairbanks Independent School District Series B-1 (GO Revenue) ±		0.90			2-15-2040		12,180,000		12,035,302
Harris County TX Houston Independent School District Series B (GO Revenue) ±		0.95			6-1-2035		9,150,000		9,142,680
Houston TX Hotel Occupancy Unrefunded Series B (Tax Revenue)		5.00			9-1-2018		285,000		285,846
Midland County TX PFFA Compass Pointe Apartments (Housing Revenue)		1.25			3-1-2018		7,000,000		6,988,730
North East TX Independent School District Series A (GO Revenue) ±		2.00			8-1-2042		25,885,000		26,126,766
North TX Tollway Authority Series F (Transportation Revenue)		5.75			1-1-2033		14,950,000		15,638,298
North TX Tollway Authority Series F (Transportation Revenue)		5.75			1-1-2038		32,000,000		33,473,280
Northside TX Independent School District Building Project (GO Revenue) ±		2.00			8-1-2044		2,610,000		2,632,211
Northside TX Independent School District Building Project (GO Revenue) ±		2.13			8-1-2040		1,915,000		1,915,651
Northside TX Independent School District Series A (GO Revenue) ±		2.00			6-1-2039		27,715,000		27,962,495
Odessa TX Housing Finance Corporation 87th Street Apartments Project (Housing Revenue) ±		1.43			12-1-2020		8,000,000		7,995,120
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series B (Resource Recovery Revenue) ø		0.85			12-1-2039		10,000,000		10,000,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series B (Resource Recovery Revenue) ø		0.85			4-1-2040		26,530,000		26,530,000
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Resource Recovery Revenue) ø		0.85			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		0.85			11-1-2040		7,000,000		7,000,000
Richardson TX Independent School District Series A (GO Revenue)		5.00			2-15-2017		3,835,000		3,855,095
San Antonio TX Housing Trust Finance Corporation Freedom Hills Ranch Apartments Project (Housing Revenue)		1.00			1-1-2018		12,650,000		12,606,105
San Antonio TX Series A (Utilities Revenue) ±		2.25			2-1-2033		20,000,000		20,147,400
San Antonio TX Series C (Utilities Revenue) ±		2.00			12-1-2027		3,000,000		3,020,370
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		3.00			11-15-2017		485,000		490,510
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		4.00			11-15-2018		500,000		517,650
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Refunding Series A (Health Revenue)		4.00			11-15-2019		510,000		532,348
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		3.00			11-15-2017		665,000		672,907
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		4.00			11-15-2018		500,000		518,515
Tarrant County TX Cultural Education Facilities Finance Corporation Edgemere Project Series B (Health Revenue)		4.00			11-15-2019		710,000		742,120
Tarrant County TX Cultural Education Facilities Finance Corporation Series 2973 (Health Revenue, Morgan Stanley Bank LIQ) ø144A		0.95			11-15-2029		30,400,000		30,400,000
Tender Option Bond Trust Receipts/Certificates 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		6,945,221

22 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas (continued)
Texas Affordable Housing Corporation Woodside Village Project (Housing Revenue) ±		1.00	%		12-1-2018	$	5,750,000	$	5,744,308
Texas Department of Housing and Community Affairs Good Samaritan Towers (Housing Revenue)		0.95			9-1-2017		5,620,000		5,610,109
Texas Municipal Gas Acquisition & Supply Corporation II Series A (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.27			9-15-2017		8,530,000		8,541,174
Texas Municipal Gas Acquisition & Supply Corporation II Series B (Utilities Revenue, JPMorgan Chase & Company Guaranteed) ±		1.19			9-15-2017		22,425,000		22,347,634
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series B (Utilities Revenue) ±		1.12			12-15-2017		1,500,000		1,496,760
Texas Municipal Gas Acquisition & Supply Corporation Senior Lien Series D (Utilities Revenue)		5.63			12-15-2017		4,050,000		4,170,245
Texas New Hope Cultural Education Facilities Finance Corporation MRC Crestview Project (Health Revenue)		1.50			11-15-2017		225,000		222,210
Texas New Hope Cultural Education Facilities Finance Corporation MRC Crestview Project (Health Revenue)		1.75			11-15-2018		500,000		487,500
Texas New Hope Cultural Education Facilities Finance Corporation MRC Crestview Project (Health Revenue)		2.00			11-15-2019		345,000		332,880
Texas Public Finance Authority Unemployment Compensation Series B (Miscellaneous Revenue)		4.00			7-1-2017		11,500,000		11,625,465
Texas Tollway Authority Series C (Transportation Revenue) ±		1.95			1-1-2038		1,535,000		1,539,145
Texas Tollway Authority Series D (Transportation Revenue, Royal Bank of Canada LOC) ø		0.73			1-1-2049		2,000,000		2,000,000
Texas Transportation Commission State Highway Fund Floating 1st Tier Series B (Tax Revenue) ±		1.08			4-1-2032		24,000,000		23,999,040
Williamson County TX (GO Revenue) ±		1.45			8-15-2034		2,600,000		2,598,076
									457,912,853
Utah: 0.24%
Utah County UH IHC Health Services Series B (Health Revenue, U.S. Bank NA SPA) ø		0.71			5-15-2035		12,725,000		12,725,000
Vermont: 0.03%
Burlington VT Airport Refunding Series 2012B (Airport Revenue)		3.50			7-1-2018		1,560,000		1,568,174
Virgin Islands: 0.17%
Virgin Islands PFA Senior Lien Matching Fund Loan Series B (Tobacco Revenue)		5.00			10-1-2017		9,450,000		9,434,786
Virginia: 0.78%
Bedford VA American Municipal Power Incorporated (Utilities Revenue)		1.25			3-28-2017		4,385,000		4,384,956
Chesapeake VA EDA Electric and Power Company Series 2008A (Utilities Revenue) ±		1.75			2-1-2032		30,000,000		30,033,300
Gloucester County VA EDA Solid Waste Disposal Waste Management Services Series A (Resource Recovery Revenue) ±		1.60			9-1-2038		4,000,000		4,001,240
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2017		1,250,000		1,272,300
Greater Richmond VA Convention Center Authority (Tax Revenue)		5.00			6-15-2018		1,500,000		1,577,985
Virginia Housing Development Authority Series B (Housing Revenue)		2.25			9-1-2017		500,000		503,440
									41,773,221
Washington: 0.40%
Grant County WA Public Utility District No. 2 Series K (Utilities Revenue) ±		0.88			1-1-2044		4,000,000		3,990,120
King County WA Junior Lien Series A (Water & Sewer Revenue, Landesbank Hessen-Thüringen LOC) ø		0.73			1-1-2032		2,000,000		2,000,000
Washington HCFR Series XF2035 (Health Revenue, Morgan Stanley Bank LIQ) ø144A		1.07			10-1-2036		7,655,000		7,655,000

Portfolio of investments—December 31, 2016 (unaudited) Wells Fargo Ultra Short-Term Municipal Income Fund 23

Security name	Interest rate			Maturity date		Principal		Value
Washington (continued)
Washington HFA Multicare Health System Series D (Health Revenue, Barclays Bank plc LOC) ø		0.74	%		8-15-2041	$	490,000	$	490,000
Washington Housing Finance Commission Hopesource Portfolio Projects (Housing Revenue) ±		0.65			4-1-2019		7,390,000		7,381,428
									21,516,548
West Virginia: 0.90%
Mason County WV PCR Appalachian Power Company Series L (Industrial Development Revenue) ±		1.63			10-1-2022		16,400,000		16,318,164
West Virginia EDA Appalachian Power Company Mountaineer Project Series A (Utilities Revenue) ø		1.00			2-1-2036		25,000,000		25,000,000
West Virginia EDA Solid Waste Disposal Appalachian Power Company Series B (Utilities Revenue, Sumitomo Mitsui Banking LOC) ø		0.75			12-1-2042		6,950,000		6,950,000
									48,268,164
Wisconsin: 0.86%
Ellsworth WI Community School District (Miscellaneous Revenue)		2.00			10-1-2017		4,235,000		4,238,022
Milwaukee County WI Series B (Airport Revenue)		4.00			12-1-2017		385,000		394,121
Sun Prairie WI BAN (Miscellaneous Revenue) %%		2.00			6-1-2017		15,500,000		15,532,240
Tender Option Bond Trust Receipts/Certificates Floaters Series 2015-XF0127 (Health Revenue, JPMorgan Chase & Company LIQ) ø144A		0.92			10-1-2020		4,875,000		4,875,000
Tender Option Bond Trust Receipts/Certificates Floaters Series 2015-XF1028 (Health Revenue, Deutsche Bank LIQ) ø144A		0.92			11-15-2044		10,880,000		10,880,000
Waukesha WI Housing Preservation Corporation (Housing Revenue, Johnson Bank LOC) ø		1.80			12-1-2042		4,145,000		4,145,000
Wisconsin HEFA Ascension Senior Credit Group Series B-5 (Health Revenue) ±		1.38			11-15-2038		1,535,000		1,508,782
Wisconsin HEFA Aurora Health Care Series B-1 (Health Revenue) ±		1.25			8-15-2025		3,540,000		3,538,796
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		3.00			12-1-2017		200,000		203,148
Wisconsin HEFA Bellin Memorial Hospital Incorporated (Health Revenue)		3.00			12-1-2018		500,000		513,765
Wisconsin Public Finance Authority Guilford College (Education Revenue)		5.00			1-1-2020		625,000		666,756
									46,495,630
Wyoming: 0.48%
Sweetwater County WY PCR Refunding Bond PacifiCorp Project Series A (Industrial Development Revenue) ø		0.85			1-1-2017		26,000,000		26,000,000
Total Municipal Obligations (Cost $5,142,914,809)									5,104,835,011
Other: 4.25%
Branch Banking & Trust Municipal Investment Trust Various States Class A ±144A§(a)		1.23			6-30-2017		10,440,000		10,436,242
Branch Banking & Trust Municipal Investment Trust Various States Class B ±144A§		1.38			12-31-2017		33,725,000		33,725,337
Branch Banking & Trust Municipal Investment Trust Various States Class C ±144A§		1.78			12-31-2019		9,600,000		9,598,656
Eaton Vance California Municipal Income Trust Preferred Shares ±144A§		2.22			9-1-2019		16,975,000		16,963,457
Eaton Vance Massachusetts Municipal Bond Fund Institutional MuniFund Term Preferred Shares ±144A§		1.73			7-1-2019		6,475,000		6,459,590
Eaton Vance Municipal Bond Fund 2 Institutional MuniFund Term Preferred Shares ±144A§		1.71			7-1-2019		9,950,000		9,938,359
Eaton Vance Pennsylvania Municipal Bond Fund Institutional MuniFund Term Preferred Shares ±144A		1.56			7-1-2019		6,000,000		5,985,720
Nuveen AMT-Free Quality Municipal Income Fund Preferred Shares ±144A§		0.81			6-1-2040		35,000,000		35,000,000

24 Wells Fargo Ultra Short-Term Municipal Income Fund Portfolio of investments—December 31, 2016 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Other (continued)
Nuveen Enhanced Municipal Credit Opportunities Fund Institutional MuniFund Term Preferred Shares ±144A		1.47	%		10-1-2017	$	59,000,000	$	58,786,420
Nuveen New York AMT-Free Municipal Income Fund Institutional MuniFund Term Preferred Shares ±144A§		1.17			10-1-2017		17,000,000		16,941,010
Nuveen Texas Quality Municipal Income Fund Institutional MuniFund Term Preferred Shares ±144A		1.56			11-1-2018		25,000,000		24,998,000
Total Other (Cost $229,141,648)									228,832,791
	Yield					Shares
Short-Term Investments: 1.88%
Investment Companies: 1.87%
Wells Fargo Municipal Cash Management Fund Institutional Class (l)(u)##		0.67					100,839,385		100,899,889
						Principal
U.S. Treasury Securities: 0.01%
U.S. Treasury Bill (z)		0.50			3-16-2017	$	250,000		249,750
Total Short-Term Investments (Cost $101,131,856)									101,149,639

Total investments in securities (Cost $5,478,121,538) *	100.99	%		5,439,709,985
Other assets and liabilities, net	(0.99	)		53,119,183
Total net assets	100.00	%	$	5,386,590,802

± 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 in zero coupon form with no periodic interest payments.

%% The security is issued on a when-issued basis.

§ The security is subject to a demand feature which reduces the effective maturity.

(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.

## All or a portion of this security is segregated for when-issued securities.

(z) Zero coupon security. The rate represents the current yield to maturity.

* Cost for federal income tax purposes is $5,478,051,225 and unrealized gains (losses) consists of:

Gross unrealized gains	$	2,597,840
Gross unrealized losses		(40,939,080	)
Net unrealized losses	$	(38,341,240	)

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Not applicable.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:
	/s/ Andrew Owen Andrew Owen President
Date:	February 23, 2017

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/ Andrew Owen Andrew Owen President
Date:	February 23, 2017
By:
	/s/ Nancy Wiser Nancy Wiser Treasurer
Date:	February 23, 2017
By:
	/s/ Jeremy DePalma Jeremy DePalma Treasurer
Date:	February 23, 2017