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: August 31

Registrant is making a filing for 9 of its series:

Wells Fargo Adjustable Rate Government Fund, Wells Fargo Conservative Income Fund, Wells Fargo Government Securities Fund, Wells Fargo High Yield Bond Fund, Wells Fargo Core Plus Bond Fund, Wells Fargo Short Duration Government Bond Fund, Wells Fargo Short-Term Bond Fund, Wells Fargo Short-Term High Yield Bond Fund, and Wells Fargo Ultra Short-Term Income Fund.

Date of reporting period: February 28, 2017

ITEM 1. REPORT TO STOCKHOLDERS

Semi-Annual Report

February 28, 2017

Wells Fargo
Adjustable Rate Government 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	9
Statement of operations	10
Statement of changes in net assets	11
Financial highlights	12
Notes to financial statements	16
Other information	21
List of abbreviations	24

* 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/adjustable-rate-government-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 February 28, 2017, 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 Adjustable Rate Government Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Adjustable Rate Government Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which

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 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.

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

continued to transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

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

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Michal Stanczyk

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge								Excluding sales charge							Expense ratios2 (%)
	Inception date	1 year			5 year			10 year		1 year		5 year			10 year		Gross		Net3
Class A (ESAAX)	6-30-2000		(1.29	)		0.11			1.45		0.68		0.52			1.65		0.79		0.75
Class C (ESACX)	6-30-2000		(0.96	)		(0.20	)		0.91		0.04		(0.20	)		0.91		1.54		1.50
Administrator Class (ESADX)	7-30-2010		–			–			–		0.82		0.67			1.80		0.73		0.61
Institutional Class (EKIZX)	10-1-1991		–			–			–		1.08		0.83			1.94		0.46		0.46
Bloomberg Barclays 6-Month Treasury Bill Index4	–		–			–			–		0.69		0.31			1.11		–		–

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

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

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

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to mortgage- and asset-backed securities risk. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

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

Ten largest holdings (%) as of February 28, 20175
FNMA Series 2003-W18 Class 2A, 3.66%, 6-25-2043	1.52
FNMA Series 2002-66 Class A3, 3.46%, 4-25-2042	1.19
FHLMC Series T-67 Class 1A1C, 3.10%, 3-25-2036	1.13
FNMA Series 2004-W15 Class 3A, 3.01%, 6-25-2044	0.95
FNMA Series 2006-W01 Class 3A, 2.54%, 10-25-2045	0.89
FHLMC, 2.89%, 9-1-2030	0.88
FNMA, 2.82%, 2-1-2036	0.84
GNMA, 2.42%, 8-20-2062	0.81
FNMA Series 2004-W12 Class 2A, 3.72%, 6-25-2044	0.79
FNMA Series 2001-T12 Class A4, 3.74%, 8-25-2041	0.77

Portfolio allocation as of February 28, 2017⁶

¹  Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares, adjusted to reflect the higher expenses applicable to Administrator Class shares. Historical performance shown for all classes of the Fund prior to July 12, 2010, is based on the performance of the Fund’s predecessor, Evergreen Adjustable Rate Fund.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at 0.74% for Class A, 1.49% for Class C, 0.60% for Administrator Class, and 0.46% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

⁴  The Bloomberg Barclays 6-Month Treasury Bill Index (formerly known as Barclays 6-Month Treasury Bill Index) tracks the performance and attributes of recently issued 6-month U.S. Treasury bills. The index follows Bloomberg Barclays’ monthly rebalancing conventions. 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 Adjustable Rate Government Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	995.22	$	3.72		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.48	$	3.77		0.74	%
Class C
Actual	$	1,000.00	$	991.51	$	7.48		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.69	$	7.58		1.49	%
Administrator Class
Actual	$	1,000.00	$	995.91	$	3.02		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	996.65	$	2.32		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.89	$	2.35		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—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 7

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

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 96.13%
FHLMC		0.82-8.50	%		12-1-2017 to 5-25-2043	$	196,870,125	$	206,535,727		25.72	%
FHLMC ±		2.69			4-1-2037		4,095,309		4,325,970		0.54
FHLMC ±		2.73			9-1-2035		4,885,403		5,164,774		0.64
FHLMC ±		2.73			4-1-2034		3,439,734		3,643,375		0.45
FHLMC ±		2.73			4-1-2035		3,840,128		4,074,170		0.51
FHLMC ±		2.77			1-1-2038		5,141,909		5,478,843		0.68
FHLMC ±		2.79			2-1-2035		4,054,203		4,286,638		0.53
FHLMC ±		2.80			12-1-2034		3,533,393		3,770,659		0.47
FHLMC ±		2.89			9-1-2030		6,707,529		7,081,734		0.88
FHLMC ±		3.09			8-1-2030		3,998,134		4,234,750		0.53
FHLMC Series T-35 Class A ±		1.06			9-25-2031		3,626,757		3,581,977		0.45
FHLMC Series T-62 Class 1A1 ±		1.77			10-25-2044		4,579,037		4,622,309		0.58
FHLMC Series T-63 Class 1A1 ±		1.77			2-25-2045		4,154,817		4,243,910		0.53
FHLMC Series T-67 Class 1A1C ±		3.10			3-25-2036		8,693,214		9,059,669		1.13
FHLMC Series T-67 Class 2A1C ±		3.11			3-25-2036		5,494,403		5,767,146		0.72
FNMA		0.69-11.00			5-1-2017 to 12-1-2046		289,500,764		305,069,532		38.05
FNMA ±		2.47			12-1-2035		3,910,609		4,049,564		0.50
FNMA ±		2.64			9-1-2032		5,222,937		5,489,911		0.68
FNMA ±		2.69			7-1-2036		3,591,246		3,786,343		0.47
FNMA ±		2.75			5-1-2038		3,864,935		4,081,811		0.51
FNMA ±		2.75			9-1-2035		5,199,551		5,478,329		0.68
FNMA ±		2.76			5-1-2033		3,368,344		3,616,842		0.45
FNMA ±		2.77			7-1-2039		4,115,776		4,378,067		0.55
FNMA ±		2.77			1-1-2035		4,278,263		4,514,184		0.56
FNMA ±		2.77			1-1-2037		3,474,604		3,702,158		0.46
FNMA ±		2.78			12-1-2040		3,869,715		4,087,196		0.51
FNMA ±		2.78			7-1-2036		3,907,101		4,127,933		0.51
FNMA ±		2.78			9-1-2034		3,637,442		3,845,626		0.48
FNMA ±		2.78			12-1-2037		3,460,288		3,667,805		0.46
FNMA ±		2.79			3-1-2035		3,681,917		3,893,625		0.49
FNMA ±		2.79			11-1-2033		3,744,004		3,960,726		0.49
FNMA ±		2.79			8-1-2037		3,711,813		3,937,511		0.49
FNMA ±		2.79			5-1-2036		3,753,140		3,970,161		0.49
FNMA ±		2.80			9-1-2039		4,388,193		4,640,039		0.58
FNMA ±		2.80			1-1-2038		4,723,192		5,002,415		0.62
FNMA ±		2.81			8-1-2036		3,596,848		3,809,915		0.47
FNMA ±		2.82			2-1-2036		6,340,490		6,710,966		0.84
FNMA ±		2.82			10-1-2036		3,542,475		3,752,087		0.47
FNMA ±		2.82			12-1-2035		3,809,457		4,034,762		0.50
FNMA ±		2.82			6-1-2034		3,390,823		3,586,823		0.45
FNMA ±		2.83			2-1-2038		4,585,500		4,847,441		0.60
FNMA ±		3.05			4-1-2036		4,339,188		4,626,109		0.58
FNMA ±		3.28			3-1-2037		3,768,076		4,015,541		0.50
FNMA Series 2001-T10 Class A2		7.50			12-25-2041		3,293,893		3,924,305		0.49
FNMA Series 2001-T12 Class A4 ±		3.74			8-25-2041		5,848,657		6,152,687		0.77
FNMA Series 2002-66 Class A3 ±		3.46			4-25-2042		9,059,353		9,569,674		1.19
FNMA Series 2002-T18 Class A5 ±		3.93			5-25-2042		3,695,141		3,972,912		0.50

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

8 Wells Fargo Adjustable Rate Government Fund Summary portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities (continued)
FNMA Series 2003-W18 Class 2A ±		3.66	%		6-25-2043	$	11,470,413	$	12,224,490		1.52	%
FNMA Series 2004-W12 Class 2A ±		3.72			6-25-2044		5,895,993		6,325,707		0.79
FNMA Series 2004-W15 Class 3A ±		3.01			6-25-2044		7,344,355		7,598,323		0.95
FNMA Series 2006-W01 Class 3A ±		2.54			10-25-2045		6,712,681		7,163,768		0.89
GNMA ±		2.42			8-20-2062		6,232,675		6,508,518		0.81
GNMA		1.26-9.00			7-15-2017 to 6-20-2063		10,439,295		10,673,793		1.32
Other securities									781,488		0.10
Total Agency Securities (Cost $759,957,516)									771,450,738		96.13
	Yield					Shares
Short-Term Investments: 3.18%
Investment Companies: 3.18%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.48					25,549,353		25,549,353		3.18
Total Short-Term Investments (Cost $25,549,353)									25,549,353		3.18
Total investments in securities (Cost $785,506,869) *									797,000,091		99.31
Other assets and liabilities, net									5,498,169		0.69
Total net assets								$	802,498,260		100.00	%

± 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 $785,544,766 and unrealized gains (losses) consists of:

Gross unrealized gains	$	12,866,492
Gross unrealized losses		(1,411,167	)
Net unrealized gains	$	11,455,325

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

Statement of assets and liabilities—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 9

Assets
Investments
In unaffiliated securities, at value (cost $759,957,516)	$	771,450,738
In affiliated securities, at value (cost $25,549,353)		25,549,353
Total investments, at value (cost $785,506,869)		797,000,091
Principal paydown receivable		4,803,866
Receivable for Fund shares sold		233,712
Receivable for interest		2,218,765
Prepaid expenses and other assets		95,438
Total assets		804,351,872
Liabilities
Dividends payable		105,068
Payable for Fund shares redeemed		1,194,937
Management fee payable		199,703
Distribution fees payable		50,160
Administration fees payable		65,250
Accrued expenses and other liabilities		238,494
Total liabilities		1,853,612
Total net assets	$	802,498,260
NET ASSETS CONSIST OF
Paid-in capital	$	817,709,558
Overdistributed net investment income		(815,855	)
Accumulated net realized losses on investments		(25,888,665	)
Net unrealized gains on investments		11,493,222
Total net assets	$	802,498,260
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	154,491,807
Shares outstanding – Class A1		17,137,483
Net asset value per share – Class A		$9.01
Maximum offering price per share – Class A2		$9.19
Net assets – Class C	$	86,123,924
Shares outstanding – Class C1		9,553,090
Net asset value per share – Class C		$9.02
Net assets – Administrator Class	$	34,276,282
Shares outstanding – Administrator Class1		3,802,239
Net asset value per share – Administrator Class		$9.01
Net assets – Institutional Class	$	527,606,247
Shares outstanding – Institutional Class1		58,517,104
Net asset value per share – Institutional Class		$9.02

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.

10 Wells Fargo Adjustable Rate Government Fund Statement of operations—six months ended February 28, 2017 (unaudited)

Investment income
Interest	$	6,479,010
Income from affiliated securities		48,421
Total investment income		6,527,431
Expenses
Management fee		1,598,305
Administration fees
Class A		129,085
Class B		26	1
Class C		73,175
Administrator Class		21,089
Institutional Class		247,492
Shareholder servicing fees
Class A		201,696
Class B		40	1
Class C		114,336
Administrator Class		52,461
Distribution fees
Class B		121	1
Class C		343,007
Custody and accounting fees		40,980
Professional fees		32,857
Registration fees		48,740
Shareholder report expenses		15,582
Trustees’ fees and expenses		14,987
Other fees and expenses		5,960
Total expenses		2,939,939
Less: Fee waivers and/or expense reimbursements		(111,870	)
Net expenses		2,828,069
Net investment income		3,699,362
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		1,001,062
Net change in unrealized gains (losses) on investments		(336,115	)
Net realized and unrealized gains (losses) on investments		664,947
Net increase in net assets resulting from operations	$	4,364,309

¹ For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and are no longer offered by the Fund.

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

Statement of changes in net assets Wells Fargo Adjustable Rate Government Fund 11

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	3,699,362					$	8,404,428
Net realized gains on investments					1,001,062						625,055
Net change in unrealized gains (losses) on investments					(336,115	)					(9,452,906	)
Net increase (decrease) in net assets resulting from operations					4,364,309						(423,423	)
Distributions to shareholders from
Net investment income
Class A					(638,627	)					(1,155,210	)
Class B					(5	)1					(87	)
Class C					(19,456	)					(42,737	)
Administrator Class					(196,034	)					(466,099	)
Institutional Class					(3,303,623	)					(6,792,219	)
Tax basis return of capital
Class A					0						(394,233	)
Class B					0	1					(30	)
Class C					0						(14,584	)
Administrator Class					0						(159,064	)
Institutional Class					0						(2,317,951	)
Total distributions to shareholders					(4,157,745	)					(11,342,214	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		661,967			5,963,505			2,371,399			21,433,559
Class C		68,599			617,961			297,135			2,687,224
Administrator Class		810,556			7,305,587			2,664,934			24,094,678
Institutional Class		12,579,244			113,308,248			39,720,888			358,768,408
					127,195,301						406,983,869
Reinvestment of distributions
Class A		58,991			531,415			144,875			1,309,115
Class B		1	1		5	1		12			112
Class C		1,601			14,428			4,704			42,529
Administrator Class		20,159			181,601			66,534			601,065
Institutional Class		261,951			2,360,595			739,168			6,680,295
					3,088,044						8,633,116
Payment for shares redeemed
Class A		(2,685,226	)		(24,196,417	)		(7,142,231	)		(64,545,641	)
Class B		(7,783	)1		(70,137	)1		(37,840	)		(342,648	)
Class C		(1,331,293	)		(11,992,317	)		(2,802,652	)		(25,333,615	)
Administrator Class		(3,870,876	)		(34,861,743	)		(3,149,188	)		(28,458,877	)
Institutional Class		(32,286,395	)		(290,799,061	)		(62,141,650	)		(561,176,841	)
					(361,919,675	)					(679,857,622	)
Net decrease in net assets resulting from capital share transactions					(231,636,330	)					(264,240,637	)
Total decrease in net assets					(231,429,766	)					(276,006,274	)
Net assets
Beginning of period					1,033,928,026						1,309,934,300
End of period				$	802,498,260					$	1,033,928,026
Overdistributed net investment income				$	(815,855	)				$	(357,472	)

¹ For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B 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.

12 Wells Fargo Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.01			$9.10			$9.15			$9.14			$9.19			$9.12
Net investment income		0.03			0.04			0.05			0.06			0.06			0.09
Net realized and unrealized gains (losses) on investments		0.01			(0.06	)		(0.03	)		0.02			(0.04	)		0.08
Total from investment operations		0.04			(0.02	)		0.02			0.08			0.02			0.17
Distributions to shareholders from
Net investment income		(0.04	)		(0.05	)		(0.05	)		(0.06	)		(0.07	)		(0.09	)
Tax basis return of capital		0.00			(0.02	)		(0.02	)		(0.01	)		(0.00	)1		(0.01	)
Total distributions to shareholders		(0.04	)		(0.07	)		(0.07	)		(0.07	)		(0.07	)		(0.10	)
Net asset value, end of period		$9.01			$9.01			$9.10			$9.15			$9.14			$9.19
Total return2		0.39	%		(0.19	)%		0.24	%		0.90	%		0.23	%		1.84	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.78	%		0.79	%		0.80	%		0.84	%		0.86	%
Net expenses		0.74	%		0.74	%		0.74	%		0.74	%		0.74	%		0.74	%
Net investment income		0.71	%		0.56	%		0.58	%		0.64	%		0.71	%		1.01	%
Supplemental data
Portfolio turnover rate		1	%		13	%		10	%		18	%		10	%		9	%
Net assets, end of period (000s omitted)		$154,492			$172,131			$215,830			$251,686			$281,028			$309,827

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 Adjustable Rate Government Fund 13

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.01			$9.10			$9.15			$9.14			$9.19			$9.12
Net investment income (loss)		(0.00	)1,2		(0.02	)1		(0.01	)1		(0.01	)1		(0.00	)1,2		0.02	1
Net realized and unrealized gains (losses) on investments		0.01			(0.07	)		(0.04	)		0.02			(0.05	)		0.08
Total from investment operations		0.01			(0.09	)		(0.05	)		0.01			(0.05	)		0.10
Distributions to shareholders from
Net investment income		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		(0.03	)
Tax basis return of capital		0.00			(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2
Total distributions to shareholders		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		(0.03	)
Net asset value, end of period		$9.02			$9.01			$9.10			$9.15			$9.14			$9.19
Total return3		0.13	%		(0.94	)%		(0.51	)%		0.15	%		(0.52	)%		1.08	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.53	%		1.54	%		1.55	%		1.59	%		1.61	%
Net expenses		1.49	%		1.49	%		1.49	%		1.49	%		1.49	%		1.49	%
Net investment income (loss)		(0.04	)%		(0.19	)%		(0.16	)%		(0.11	)%		(0.04	)%		0.26	%
Supplemental data
Portfolio turnover rate		1	%		13	%		10	%		18	%		10	%		9	%
Net assets, end of period (000s omitted)		$86,124			$97,452			$121,117			$148,523			$190,110			$248,392

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

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

14 Wells Fargo Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.01			$9.10			$9.15			$9.14			$9.19			$9.12
Net investment income		0.04	1		0.06			0.06			0.07			0.08			0.11
Net realized and unrealized gains (losses) on investments		(0.00	)		(0.06	)		(0.03	)		0.03			(0.05	)		0.07
Total from investment operations		0.04			0.00			0.03			0.10			0.03			0.18
Distributions to shareholders from
Net investment income		(0.04	)		(0.07	)		(0.06	)		(0.07	)		(0.08	)		(0.10	)
Tax basis return of capital		0.00			(0.02	)		(0.02	)		(0.02	)		(0.00	)2		(0.01	)
Total distributions to shareholders		(0.04	)		(0.09	)		(0.08	)		(0.09	)		(0.08	)		(0.11	)
Net asset value, end of period		$9.01			$9.01			$9.10			$9.15			$9.14			$9.19
Total return3		0.46	%		(0.05	)%		0.38	%		1.05	%		0.37	%		1.98	%
Ratios to average net assets (annualized)
Gross expenses		0.73	%		0.72	%		0.72	%		0.73	%		0.77	%		0.79	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.80	%		0.71	%		0.72	%		0.78	%		0.85	%		1.14	%
Supplemental data
Portfolio turnover rate		1	%		13	%		10	%		18	%		10	%		9	%
Net assets, end of period (000s omitted)		$34,276			$61,658			$66,037			$124,345			$102,284			$112,319

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.

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

Financial highlights Wells Fargo Adjustable Rate Government Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.01			$9.10			$9.15			$9.14			$9.19			$9.12
Net investment income		0.05	1		0.08			0.08			0.08			0.09	1		0.12	1
Net realized and unrealized gains (losses) on investments		0.01			(0.07	)		(0.03	)		0.03			(0.04	)		0.07
Total from investment operations		0.06			0.01			0.05			0.11			0.05			0.19
Distributions to shareholders from
Net investment income		(0.05	)		(0.07	)		(0.08	)		(0.08	)		(0.10	)		(0.11	)
Tax basis return of capital		0.00			(0.03	)		(0.02	)		(0.02	)		(0.00	)2		(0.01	)
Total distributions to shareholders		(0.05	)		(0.10	)		(0.10	)		(0.10	)		(0.10	)		(0.12	)
Net asset value, end of period		$9.02			$9.01			$9.10			$9.15			$9.14			$9.19
Total return3		0.64	%		0.09	%		0.52	%		1.19	%		0.50	%		2.09	%
Ratios to average net assets (annualized)
Gross expenses		0.46	%		0.45	%		0.46	%		0.47	%		0.51	%		0.53	%
Net expenses		0.46	%		0.45	%		0.46	%		0.46	%		0.47	%		0.49	%
Net investment income		0.96	%		0.84	%		0.87	%		0.93	%		0.98	%		1.25	%
Supplemental data
Portfolio turnover rate		1	%		13	%		10	%		18	%		10	%		9	%
Net assets, end of period (000s omitted)		$527,606			$702,617			$906,536			$844,221			$906,698			$686,587

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.

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

16 Wells Fargo Adjustable Rate Government 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 Adjustable Rate Government Fund (the “Fund”) which is a diversified series of the Trust.

At the close of business on December 5, 2016, Class B shares of the Fund were converted to Class A shares and 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.

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 Adjustable Rate Government Fund 17

Distributions to shareholders

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

Federal and other taxes

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

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

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of August 31, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

			No expiration
2017	2018	2019	Short-term
$24,262,054	$1,705,150	$66,443	$208,379

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, 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.

18 Wells Fargo Adjustable Rate Government 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	771,450,738	$	0	$	771,450,738
Short-term investments
Investment companies		25,549,353		0		0		25,549,353
Total assets	$	25,549,353	$	771,450,738	$	0	$	797,000,091

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, 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 month ended February 28, 2017, the management fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% 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 December 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, 0.60% for Administrator Class shares, and 0.46% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Notes to financial statements (unaudited) Wells Fargo Adjustable Rate Government Fund 19

During the six months ended February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $149,159 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 $5,898 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 month ended February 28, 2017, Funds Distributor received $265 from the sale of Class A shares and $5,739 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 U.S. government securities, excluding short-term securities, for the six month ended February 28, 2017 were $8,121,281 and $109,374,419, 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.

For the six month ended February 28, 2017, 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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

20 Wells Fargo Adjustable Rate Government 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 Adjustable Rate Government 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 Adjustable Rate Government Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 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 Adjustable Rate Government 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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

24 Wells Fargo Adjustable Rate Government 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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302022 04-17 SA215/SAR215 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo
Conservative 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
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	16
Other information	20
List of abbreviations	23

The views expressed and any forward-looking statements are as of February 28, 2017, 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 Conservative Income Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Conservative Income Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which

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 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.

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

continued to transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

4 Wells Fargo Conservative Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Andrew M. Greenberg, CFA^®

Anthony J. Melville, CFA^®

Jeffrey L. Weaver, CFA^®

Average annual total returns (%) as of February 28, 2017

							Expense ratios1 (%)
	Inception date	1 year		Since inception			Gross		Net2
Institutional Class (WCIIX)	5-31-2013		1.15		0.63			0.36		0.27
Bloomberg Barclays 6-9 Month Treasury Bill Index3	–		0.51		0.24	*		–		–

* Based on inception date of Institutional Class.

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, 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.

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 foreign investment risk, mortgage- and asset-backed securities risk, and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Conservative Income Fund 5

Ten largest holdings (%) as of February 28, 20174
University of California Series Y-1, 1.28%, 7-1-2041	1.96
BMW US Capital LLC, 1.37%, 9-13-2019	1.74
Smart Trust Series 2016-2US Class A2A, 1.45%, 8-14-2019	1.73
Platinum Underwriters Finance Incorporated Series B, 7.50%, 6-1-2017	1.57
BP Capital Markets plc, 1.39%, 8-14-2018	1.55
Berkshire Hathaway Finance Corporation, 1.50%, 3-7-2018	1.53
Rabobank Nederland NV, 1.55%, 8-9-2019	1.53
Trillium Credit Card Trust II Series 2016-1A Class A, 1.50%, 5-26-2021	1.45
Morgan Stanley, 2.40%, 2-1-2019	1.44
Pricoa Global Funding 1, 1.42%, 10-8-2019	1.44

Portfolio allocation as of February 28, 2017⁵

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

²  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at the amounts shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

³  The Bloomberg Barclays 6-9 Month Treasury Bill Index (formerly known as Barclays 6-9 Month Treasury Bill Index) includes all publicly issued zero-coupon U.S. Treasury bills that have a remaining maturity of less than nine months and more than six, are rated investment-grade, and have $250 million or more of outstanding face value. You cannot invest directly in an index.

⁴  The 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.

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

6 Wells Fargo Conservative Income Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs including management 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 September 1, 2016 to February 28, 2017.

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. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.

	Beginning account value 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Institutional Class
Actual	$	1,000.00	$	1,005.34	$	1.36		0.27	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.84	$	1.38		0.27	%

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Conservative Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 23.63%
Ally Auto Receivables Trust Series 2015-2 Class A2A		0.98	%		3-15-2018	$	78,566	$	78,563
Ally Auto Receivables Trust Series 2016-1 Class A2A		1.20			8-15-2018		683,867		683,909
Ally Auto Receivables Trust Series 2016-2 Class A2		1.17			10-15-2018		500,476		500,468
AmeriCredit Automobile Receivables Trust Series 2016-1 Class A2A		1.52			6-10-2019		1,407,946		1,409,014
AmeriCredit Automobile Receivables Trust Series 2016-2 Class A2A		1.42			10-8-2019		4,045,904		4,047,175
BMW Vehicle Lease Trust Series 2016-2 Class A2		1.23			1-22-2019		2,115,000		2,113,498
California Republic Auto Receivables Trust Series 2016-1 Class A2		1.50			12-17-2018		2,183,651		2,184,856
California Republic Auto Receivables Trust Series 2017-1 Class A2		1.64			11-15-2019		3,500,000		3,500,375
CarMax Auto Owner Trust Series 2014-2 Class A3		0.98			1-15-2019		1,514,909		1,514,031
CarMax Auto Owner Trust Series 2016-2 Class A2A		1.24			6-17-2019		2,245,202		2,245,031
CarMax Auto Owner Trust Series 2016-3 Class A2		1.17			8-15-2019		2,492,574		2,490,479
CarMax Auto Owner Trust Series 2016-4 Class A2		1.21			11-15-2019		1,800,000		1,796,253
CCG Receivables Trust Class 2014-1 Class A2 144A		1.06			11-15-2021		354,714		354,326
Citibank Credit Card Issuance Trust Series 2014-A4 Class A4		1.23			4-24-2019		1,555,000		1,555,327
Citibank Credit Card Issuance Trust Series 2017-A2 Class A2		1.74			1-19-2021		4,000,000		4,006,080
Discover Card Master Trust Series 2007-A1 Class A1		5.65			3-16-2020		5,634,000		5,766,640
Evergreen Credit Card Trust Series 2016-1 Class A 144A±		1.49			4-15-2020		5,000,000		5,023,998
Ford Credit Auto Owner Trust Series 2016-A Class A2A		1.12			12-15-2018		1,160,289		1,160,045
Ford Credit Auto Owner Trust Series 2017-A Class A2A		1.33			12-15-2019		4,555,000		4,552,569
GM Financial Automobile Leasing Trust Series 2014-2A Class A3 144A		1.22			1-22-2018		313,422		313,435
GM Financial Automobile Leasing Trust Series 2014-3 Class A2A		1.17			6-20-2018		2,012,807		2,012,273
GM Financial Automobile Leasing Trust Series 2015-2 Class A2A		1.18			4-20-2018		263,717		263,674
GM Financial Automobile Leasing Trust Series 2016-2 Class A2A		1.28			10-22-2018		871,822		870,922
Golden Credit Card Trust Series 2015-1A Class A 144A±		1.21			2-15-2020		3,090,000		3,094,782
Harley-Davidson Motorcycle Trust Series 2014-1 Class A3		1.10			9-15-2019		1,257,998		1,257,182
Honda Auto Receivables Owner Trust Series 2015-4 Class A2		0.82			7-23-2018		411,737		411,284
Hyundai Auto Lease Securitization Trust Series 2016-A Class A2B 144A±		1.32			7-16-2018		2,940,264		2,943,061
Hyundai Auto Lease Securitization Trust Series 2016-A Class A3 144A		1.60			7-15-2019		2,000,000		2,002,491
Mercedes-Benz Auto Lease Trust Series 2015-B Class A2A		1.00			1-16-2018		283,214		283,133
Mercedes-Benz Auto Receivables Trust Series 2015-1 Class A2A		0.82			6-15-2018		205,848		205,784
MMAF Equipment Finance LLC Series 2016-AA Class A2 144A		1.39			12-17-2018		2,650,604		2,650,693
Nissan Auto Lease Trust Series 2015-B Class A2A		1.18			12-15-2017		293,803		293,813
Nissan Auto Receivables Owner Trust Series 2016-A Class A2B ±		1.12			2-15-2019		2,646,259		2,646,523
Oscar US Funding Trust Series 2016-2A Class A2A 144A		2.31			11-15-2019		1,250,000		1,253,316
Santander Auto Receivables Trust Series 2017-1 Class A2		1.73			2-18-2020		2,250,000		2,249,936
Securitized Term Auto Receivables Trust Series 2016-1A Class A2A 144A		1.28			11-26-2018		2,400,000		2,397,669
Smart Trust Series 2016-2US Class A2A		1.45			8-14-2019		8,000,000		7,949,013
TCF Auto Receivables Owner Trust Series 2016-1A Class A 144A		1.93			6-15-2022		4,674,887		4,661,609
TCF Auto Receivables Owner Trust Series 2016-1A Class A2 144A		1.39			11-15-2019		1,900,000		1,898,503
Toyota Auto Receivables Owner Trust Series 2016-A Class A3		1.25			3-16-2020		4,086,000		4,073,909
Trillium Credit Card Trust II Series 2016-1A Class A 144A±		1.50			5-26-2021		6,650,000		6,680,325
Verizon Owner Trust Series 2016-1A Class A 144A		1.42			1-20-2021		3,800,000		3,770,373
Volvo Financial Equipment LLC Series 2016-1A Class A2 144A		1.44			10-15-2018		4,828,066		4,829,689
Volvo Financial Equipment LLC Series 2017-1A Class A2 144A		1.83			10-15-2019		800,000		799,941
World Omni Automobile Lease Securitization Trust Series 2016-A Class A2A		1.20			2-15-2019		3,722,415		3,715,641
Total Asset-Backed Securities (Cost $108,567,458)									108,511,611

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

8 Wells Fargo Conservative Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 30.78%
Energy: 2.02%
Oil, Gas & Consumable Fuels: 2.02%
Chevron Corporation ±		1.21	%		11-15-2017	$	5,320,000	$	5,325,426
Exxon Mobil Corporation ±		1.65			2-28-2018		3,920,000		3,943,740
									9,269,166
Financials: 27.45%
Banks: 5.30%
Bank of America Corporation NA		1.65			3-26-2018		4,250,000		4,257,259
Credit Suisse New York ±		1.72			4-27-2018		2,500,000		2,502,110
Credit Suisse New York ±		1.73			1-29-2018		1,750,000		1,756,949
HSBC USA Incorporated		1.63			1-16-2018		5,000,000		5,004,585
HSBC USA Incorporated		1.70			3-5-2018		2,000,000		2,002,400
JPMorgan Chase & Company		1.80			1-25-2018		4,750,000		4,766,245
JPMorgan Chase & Company ±		1.84			3-22-2019		4,000,000		4,033,784
									24,323,332
Capital Markets: 2.57%
Eaton Vance Corporation		6.50			10-2-2017		1,100,000		1,130,994
Morgan Stanley ±		2.41			2-1-2019		6,500,000		6,613,692
The Goldman Sachs Group Incorporated ±		2.08			4-25-2019		4,000,000		4,043,148
									11,787,834
Consumer Finance: 6.04%
American Honda Finance Corporation ±		1.45			9-20-2017		4,880,000		4,893,176
BMW US Capital LLC 144A±		1.37			9-13-2019		8,000,000		8,001,896
Daimler Finance North America LLC 144A±		1.66			10-30-2019		2,000,000		2,008,360
Nissan Motor Acceptance Corporation 144A±		1.81			4-6-2018		3,000,000		3,017,709
Nissan Motor Acceptance Corporation 144A±		1.96			3-8-2019		5,000,000		5,058,620
Toyota Motor Credit Corporation ±		1.39			4-6-2018		3,000,000		3,005,691
Toyota Motor Credit Corporation		1.75			5-22-2017		1,752,000		1,755,020
									27,740,472
Diversified Financial Services: 2.62%
AIG Global Funding 144A		1.65			12-15-2017		4,000,000		4,007,344
Murray Street Investment Trust I		4.65			3-9-2017		3,000,000		3,002,280
NYSE Holdings LLC		2.00			10-5-2017		5,000,000		5,021,608
									12,031,232
Insurance: 10.92%
Berkshire Hathaway Finance Corporation ±		1.50			3-7-2018		7,000,000		7,041,083
Jackson National Life Global Funding Company 144A±		1.60			10-13-2017		2,000,000		2,004,910
MassMutual Global Funding 144A		2.10			8-2-2018		6,315,000		6,362,666
Metropolitan Life Global Funding 144A		1.35			9-14-2018		2,000,000		1,988,230
Metropolitan Life Global Funding I 144A		1.30			4-10-2017		5,000,000		5,001,875
Metropolitan Life Global Funding I 144A		1.50			1-10-2018		473,000		473,430
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		7,118,000		7,208,242
Pricoa Global Funding 1 144A		1.35			8-18-2017		6,595,000		6,596,754

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Conservative Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Insurance (continued)
Principal Life Global Funding II 144A		1.20	%		5-19-2017	$	460,000	$	460,088
Principal Life Global Funding II 144A		1.50			9-11-2017		3,000,000		3,001,173
Principal Life Global Funding II 144A±		1.55			12-1-2017		4,000,000		4,015,028
Protective Life Global Funding 144A±		1.50			6-8-2018		6,000,000		6,003,300
									50,156,779
Health Care: 1.31%
Health Care Equipment & Supplies: 1.31%
Medtronic Incorporated		1.50			3-15-2018		6,000,000		6,009,096
Total Corporate Bonds and Notes (Cost $140,898,626)									141,317,911
Municipal Obligations: 5.87%
California: 1.96%
University of California Series Y-1 (Education Revenue) ±		1.28			7-1-2041		8,985,000		8,985,899
Colorado: 0.71%
Denver City & County CO Refunding & Improvement Bonds Series B (Tax Revenue) ##		2.70			8-1-2017		3,250,000		3,274,505
Michigan: 0.80%
Detroit MI Finance Authority Sub Series H-3 (Miscellaneous Revenue, Municipal Government Guaranty Insured)		1.39			11-1-2017		3,690,000		3,685,941
New York: 2.40%
Nassau County NY Series D (GO Revenue)		1.40			12-15-2017		5,000,000		5,010,350
New York HFA 222 East 44TH Street Series B (Housing Revenue, Bank of China LOC) ø		1.12			5-1-2050		6,000,000		6,000,000
									11,010,350
Total Municipal Obligations (Cost $26,943,464)									26,956,695
Non-Agency Mortgage-Backed Securities: 0.04%
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class A1A		5.44			1-15-2049		185,954		185,819
Total Non-Agency Mortgage-Backed Securities (Cost $188,041)									185,819
Yankee Corporate Bonds and Notes: 19.60%
Energy: 2.86%
Oil, Gas & Consumable Fuels: 2.86%
BP CapitalMarkets plc ±		1.39			8-14-2018		7,100,000		7,113,703
CNPC General Capital Limited 144A±		1.94			5-14-2017		1,000,000		1,000,784
TransCanada PipeLines Limited		1.63			11-9-2017		5,000,000		5,002,985
									13,117,472
Financials: 14.81%
Banks: 13.00%
ABN AMRO Bank NV 144A		2.10			1-18-2019		5,000,000		5,009,120
ABN AMRO Bank NV 144A		2.50			10-30-2018		3,000,000		3,027,294
Australia & New Zealand Banking Group Limited 144A±		1.66			9-23-2019		2,500,000		2,509,595

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

10 Wells Fargo Conservative Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
Bank of Tokyo-Mitsubishi UFJ Limited 144A±		1.98	%		9-14-2018	$	1,250,000	$	1,258,959
BNZ International Funding of London 144A±		1.74			2-21-2020		1,750,000		1,757,313
Canadian Imperial Bank of Commerce ±		1.47			9-6-2019		3,000,000		3,009,195
Export-Import Bank of Korea ±		1.75			5-26-2019		4,000,000		4,011,600
Export-Import Bank of Korea		2.88			9-17-2018		1,200,000		1,219,808
Industrial & Commercial Bank of China Limited ±		2.22			11-13-2017		1,500,000		1,501,680
ING Bank NV 144A±		1.65			8-15-2019		5,000,000		5,003,490
Macquarie Bank Limited 144A		1.60			10-27-2017		2,000,000		2,001,348
Macquarie Bank Limited 144A±		1.79			3-24-2017		1,000,000		1,000,576
National Australia Bank Limited 144A±		1.68			7-23-2018		1,750,000		1,757,613
Rabobank Nederland NV ±		1.55			8-9-2019		7,000,000		7,011,879
Skandinaviska Enskilda 144A		1.75			3-19-2018		4,000,000		3,998,528
Sumitomo Mitsui Banking Corporation ±		1.55			1-11-2019		2,000,000		2,002,702
Sumitomo Mitsui Trust Bank Limited ±		1.69			10-19-2018		4,600,000		4,611,528
Sumitomo Mitsui Trust Bank Limited 144A±		1.93			10-18-2019		6,000,000		6,017,148
Westpac Banking Corporation ±%%		1.00			3-6-2020		3,000,000		3,002,610
									59,711,986
Diversified Financial Services: 1.81%
UBS AG		1.38			6-1-2017		2,120,000		2,121,283
UBS AG ±		1.70			3-26-2018		2,000,000		2,009,350
UBS AG		5.75			4-25-2018		4,000,000		4,185,880
									8,316,513
Telecommunication Services: 1.93%
Diversified Telecommunication Services : 0.70%
Nippon Telegraph & Telephone Company		1.40			7-18-2017		3,200,000		3,202,064
Wireless Telecommunication Services : 1.23%
America Movil SAB de CV		5.63			11-15-2017		5,500,000		5,655,320
Total Yankee Corporate Bonds and Notes (Cost $89,875,566)									90,003,355
Short-Term Investments: 19.40%
Certificates of Deposit: 2.51%
Credit Suisse ±		2.14			3-8-2018		2,500,000		2,507,505
Credit Suisse ±		2.25			3-8-2018		1,000,000		1,005,100
Norinchukin Bank		1.40			6-9-2017		8,000,000		8,007,194
									11,519,799
Commercial Paper: 16.89%
Alpine Securitization Limited 144A(p)(z)		0.73			3-9-2017		7,200,000		7,198,690
Atlantic Asset Securitization LLC 144A(p)(z)		1.19			6-8-2017		1,400,000		1,395,399
Bedford Row Funding Corporation 144A(p)(z)		0.76			3-27-2017		10,000,000		9,994,300
CDP Financial Incorporated 144A(z)		0.87			5-26-2017		4,000,000		3,991,571
CDP Financial Incorporated 144A(z)		1.12			8-16-2017		6,000,000		5,968,510
Collateralized Commercial Paper Company LLC 144A(z)		0.88			4-24-2017		1,850,000		1,847,504
Institutional Secured Funding LLC 144A(p)(z)		0.81			4-3-2017		11,300,000		11,291,323

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Conservative Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Commercial Paper (continued)
LMA Americas LLC 144A(p)(z)		1.33	%		8-1-2017	$	8,000,000	$	7,954,827
Ontario Teachers Finance Trust 144A(z)		0.92			4-17-2017		4,000,000		3,995,093
Ontario Teachers Finance Trust 144A(z)		0.94			4-26-2017		5,000,000		4,992,598
Ontario Teachers Finance Trust 144A(z)		1.14			6-1-2017		2,000,000		1,994,146
Sheffield Receivables Company LLC 144A(p)(z)		1.47			7-10-2017		5,000,000		4,973,233
Sinochem Commercial Paper Company Limited (z)		1.10			7-27-2017		5,000,000		4,977,381
Starbird Funding Corporation 144A(p)(z)		1.19			6-16-2017		7,000,000		6,975,010
									77,549,585
	Yield					Shares
Investment Companies: 0.00%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.48					22,719		22,719
Total Short-Term Investments (Cost $89,047,004)									89,092,103

Total investments in securities (Cost $455,520,159) *	99.32	%		456,067,494
Other assets and liabilities, net	0.68			3,117,787
Total net assets	100.00	%	$	459,185,281

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.

## 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.

(p) Asset-backed commercial paper

(z) Zero coupon security. The rate represents the current yield to 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 $455,520,159 and unrealized gains (losses) consists of:

Gross unrealized gains	$	763,339
Gross unrealized losses		(216,004	)
Net unrealized gains	$	547,335

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

12 Wells Fargo Conservative Income Fund Statement of assets and liabilities—February 28, 2017 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $455,497,440)	$	456,044,775
In affiliated securities, at value (cost $22,719)		22,719
Total investments, at value (cost $455,520,159)		456,067,494
Receivable for investments sold		5,000,274
Principal paydown receivable		180
Receivable for interest		1,271,276
Prepaid expenses and other assets		938
Total assets		462,340,162
Liabilities
Dividends payable		50,817
Payable for investments purchased		3,000,000
Payable for Fund shares redeemed		2,201
Management fee payable		58,070
Administration fee payable		29,583
Accrued expenses and other liabilities		14,210
Total liabilities		3,154,881
Total net assets	$	459,185,281
NET ASSETS CONSIST OF
Paid-in capital	$	458,674,316
Undistributed net investment income		4,980
Accumulated net realized losses on investments		(41,350	)
Net unrealized gains on investments		547,335
Total net assets	$	459,185,281
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Institutional Class	$	459,185,281
Shares outstanding – Institutional Class1		45,884,389
Net asset value per share – Institutional Class		$10.01

¹  The Fund has an unlimited number of authorized shares.

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

Statement of operations—six months ended February 28, 2017 (unaudited) Wells Fargo Conservative Income Fund 13

Investment income
Interest (net of foreign interest withholding taxes of $2,402)	$	3,679,527
Income from affiliated securities		3,414
Total investment income		3,682,941
Expenses
Management fee		688,246
Administration fee
Institutional Class		220,239
Custody and accounting fees		16,270
Professional fees		20,086
Registration fees		31,916
Shareholder report expenses		1,082
Trustees’ fees and expenses		7,971
Other fees and expenses		2,836
Total expenses		988,646
Less: Fee waivers and/or expense reimbursements		(245,340	)
Net expenses		743,306
Net investment income		2,939,635
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		183,060
Futures transactions		3,853
Net realized gains on investments		186,913
Net change in unrealized gains (losses) on investments		(211,937	)
Net realized and unrealized gains (losses) on investments		(25,024	)
Net increase in net assets resulting from operations	$	2,914,611

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

14 Wells Fargo Conservative Income Fund Statement of changes in net assets

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	2,939,635					$	3,628,195
Net realized gains (losses) on investments					186,913						(138,973	)
Net change in unrealized gains (losses) on investments					(211,937	)					897,311
Net increase in net assets resulting from operations					2,914,611						4,386,533
Distributions to shareholders from
Net investment income – Institutional Class					(2,942,041	)					(3,627,145	)
Capital share transactions		Shares						Shares
Proceeds from shares sold – Institutional Class		23,003,651			230,214,643			56,931,115			568,933,214
Reinvestment of distributions – Institutional Class		260,949			2,611,167			283,774			2,837,186
Payment for shares redeemed – Institutional Class		(32,120,920	)		(321,442,136	)		(36,141,405	)		(361,309,244	)
Net increase (decrease) in net assets resulting from capital share transactions					(88,616,326	)					210,461,156
Total increase (decrease) in net assets					(88,643,756	)					211,220,544
Net assets
Beginning of period					547,829,037						336,608,493
End of period				$	459,185,281					$	547,829,037
Undistributed net investment income				$	4,980					$	7,386

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

Financial highlights Wells Fargo Conservative Income Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			20131
Net asset value, beginning of period		$10.01			$10.00			$10.02			$9.99			$10.00
Net investment income		0.05			0.07			0.05			0.04			0.01
Net realized and unrealized gains (losses) on investments		(0.00	)2		0.01			(0.02	)		0.03			(0.01	)
Total from investment operations		0.05			0.08			0.03			0.07			0.00
Distributions to shareholders from
Net investment income		(0.05	)		(0.07	)		(0.05	)		(0.04	)		(0.01	)
Net realized gains		0.00			0.00			(0.00	)2		(0.00	)2		0.00
Total distributions to shareholders		(0.05	)		(0.07	)		(0.05	)		(0.04	)		(0.01	)
Net asset value, end of period		$10.01			$10.01			$10.00			$10.02			$9.99
Total return3		0.53	%		0.79	%		0.28	%		0.74	%		0.01	%
Ratios to average net assets (annualized)
Gross expenses		0.36	%		0.36	%		0.38	%		0.43	%		0.74	%
Net expenses		0.27	%		0.27	%		0.27	%		0.27	%		0.27	%
Net investment income		1.07	%		0.72	%		0.48	%		0.44	%		0.44	%
Supplemental data
Portfolio turnover rate		111	%		269	%		80	%		55	%		10	%
Net assets, end of period (000s omitted)		$459,185			$547,829			$336,608			$143,418			$49,983

¹  For the period from May 31, 2013 (commencement of class operations) to August 31, 2013

²  Amount is less than $0.005.

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

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

16 Wells Fargo Conservative Income 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 Conservative Income Fund (the “Fund”) which is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), 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 interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

Notes to financial statements (unaudited) Wells Fargo Conservative Income Fund 17

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 been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

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

Distributions to shareholders

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

Federal and other taxes

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

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

As of August 31, 2016, the Fund had capital loss carryforwards which consist of $22,337 in short-term capital losses and $60,400 in long-term capital losses.

As of August 31, 2016, the Fund had current year deferred post-October capital losses consisting of $89,262 in short-term losses and $55,870 in long-term losses which were recognized on the first day of the current fiscal year.

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, 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.

18 Wells Fargo Conservative Income 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Asset-backed securities	$	0	$	108,511,611	$	0	$	108,511,611
Corporate bonds and notes		0		141,317,911		0		141,317,911
Municipal obligations		0		26,956,695		0		26,956,695
Non-agency mortgage-backed securities		0		185,819		0		185,819
Yankee corporate bonds and notes		0		90,003,355		0		90,003,355
Short-term investments
Certificates of deposit		0		11,519,799		0		11,519,799
Commercial paper		0		77,549,585		0		77,549,585
Investment companies		22,719		0		0		22,719
Total assets	$	22,719	$	456,044,775	$	0	$	456,067,494

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, 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 0.25% and declining to 0.18% as the average daily net assets of the Fund increase. For the six months ended February 28, 2017, the management fee was equivalent to an annual rate of 0.25% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.10% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration fee

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through December 31, 2017 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.27% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Notes to financial statements (unaudited) Wells Fargo Conservative Income Fund 19

During the six months ended February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $484 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 $863 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

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 February 28, 2017 were $572,660,082 and $610,349,941 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 February 28, 2017, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

As of February 28, 2017, the Fund did not have any open futures contracts. The Fund had an average notional amount of $3,421,563 in short futures contracts during the six months ended February 28, 2017. The realized gains on futures contracts is 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.

For the six months ended February 28, 2017, 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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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.

20 Wells Fargo Conservative 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 Conservative Income 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 138 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 Conservative Income Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo Conservative Income 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

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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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302023 04-17 SA265/SAR265 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo Government Securities 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	10
Statement of operations	11
Statement of changes in net assets	12
Financial highlights	13
Notes to financial statements	17
Other information	23
List of abbreviations	26

* 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/government-securities-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 February 28, 2017, 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 Government Securities Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Government Securities Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which

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 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.

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

continued to transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

4 Wells Fargo Government Securities Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Ashok Bhatia, CFA^®

Christopher Y. Kauffman, CFA^®

Jay N. Mueller, CFA^®

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge							Excluding sales charge							Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year			5 year		10 year		Gross		Net3
Class A (SGVDX)	8-31-1999		(5.11	)		0.39		3.11		(0.64	)		1.32		3.59		0.88		0.86
Class C (WGSCX)	12-26-2002		(2.38	)		0.57		2.81		(1.38	)		0.57		2.81		1.63		1.61
Administrator Class (WGSDX)	4-8-2005		–			–		–		(0.43	)		1.54		3.80		0.82		0.65
Institutional Class (SGVIX)	8-31-1999		–			–		–		(0.27	)		1.70		3.99		0.55		0.49
Bloomberg Barclays U.S. Aggregate ex Credit Index4	–		–			–		–		(0.42	)		1.71		3.92		–		–
Bloomberg Barclays Intermediate U.S. Government Bond Index5	–		–			–		–		(0.53	)		1.12		3.34		–		–

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. Securities issued by U.S. government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to mortgage- and asset-backed securities risk. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Government Securities Fund 5

Ten largest holdings (%) as of February 28, 20176
U.S. Treasury Note, 1.38%, 6-30-2023	4.77
FNMA, 4.50%, 3-13-2047	4.48
U.S. Treasury Note, 1.75%, 5-15-2023	3.95
GNMA, 3.50%, 3-21-2047	3.47
FNMA, 3.00%, 12-1-2046	2.61
FNMA, 3.011%, 12-1-2045	2.52
U.S. Treasury Bond 3.13%, 2-15-2042	2.46
GNMA, 3.00%, 11-20-2045	2.16
Resolution Funding Corporation STRIPS, 0.00%, 7-15-2020	2.08
KfW, 1.25%, 9-30-2019	2.03

Portfolio allocation as of February 28, 2017⁷

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

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at 0.85% for Class A, 1.60% for Class C, 0.64% for Administrator Class, and 0.48% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

⁴  The Bloomberg Barclays U.S. Aggregate ex Credit Index (formerly known as Barclays U.S. Aggregate ex Credit Index) is composed of the Bloomberg Barclays U.S. Government Bond Index (formerly known as Barclays U.S. Government Bond Index) and the Bloomberg Barclays U.S. Mortgage-Backed Securities Index (formerly known as Barclays U.S. Mortgage-Backed Securities Index) and it includes Treasury issues, agency issues, and mortgage backed securities. You cannot invest directly in an index.

⁵  The Bloomberg Barclays Intermediate U.S. Government Bond Index (formerly known as Barclays Intermediate U.S. Government Bond Index) is an unmanaged index composed of U.S. government securities with maturities in the one to 10-year range, including securities issued by the U.S. Treasury and U.S. government agencies. You cannot invest directly in an index.

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

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

6 Wells Fargo Government Securities Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	975.63	$	4.23		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%
Class C
Actual	$	1,000.00	$	972.01	$	7.95		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%
Administrator Class
Actual	$	1,000.00	$	976.67	$	3.19		0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.98	$	3.26		0.64	%
Institutional Class
Actual	$	1,000.00	$	977.40	$	2.39		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.79	$	2.45		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).

Summary portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 7

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

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 81.62%
FHLB		5.63	%		3-14-2036	$	6,150,000	$	8,186,117		0.75	%
FHLMC ±		1.12			4-15-2030		10,000,753		9,991,257		0.91
FHLMC		3.50			8-1-2045		7,287,729		7,475,991		0.68
FHLMC		3.50			11-1-2045		12,891,365		13,224,385		1.20
FHLMC		3.50			12-1-2045		9,147,310		9,383,610		0.85
FHLMC		4.00			6-1-2044		6,890,548		7,249,900		0.66
FHLMC		0.82-10.50			6-1-2016 to 1-15-2054		130,171,874		90,776,946		8.23
FNMA ±		1.53			2-25-2040		8,674,749		8,795,714		0.80
FNMA		1.88			9-24-2026		9,060,000		8,430,212		0.77
FNMA		2.13			4-24-2026		9,410,000		8,968,859		0.82
FNMA %%		3.00			3-16-2032		19,125,000		19,662,891		1.79
FNMA		3.00			11-1-2045		12,365,650		12,296,113		1.12
FNMA		3.00			12-1-2045		27,807,768		27,651,395		2.52
FNMA		3.00			11-1-2046		20,827,521		20,710,401		1.89
FNMA		3.00			12-1-2046		28,806,103		28,644,116		2.61
FNMA		3.31			9-25-2020		17,449,510		18,133,463		1.65
FNMA		3.44			1-1-2024		8,087,722		8,423,429		0.77
FNMA %%		3.50			3-16-2032		21,320,000		22,228,946		2.02
FNMA		3.50			2-1-2045		19,314,396		19,827,157		1.80
FNMA		3.50			4-1-2045		7,729,854		7,930,801		0.72
FNMA		3.50			5-1-2046		7,724,184		7,924,983		0.72
FNMA		4.00			2-1-2046		7,814,896		8,218,113		0.75
FNMA		4.00			2-1-2046		13,663,177		14,368,144		1.31
FNMA		4.00			4-1-2046		20,001,791		21,033,803		1.91
FNMA %%		4.50			3-13-2047		45,762,000		49,174,486		4.48
FNMA		5.00			8-1-2040		13,351,607		14,649,734		1.33
FNMA %%		6.00			3-13-2047		15,585,000		17,643,687		1.61
FNMA		0.00-11.00			5-1-2017 to 4-25-2050		208,849,133		214,318,473		19.52
GNMA ±		1.32			5-20-2066		7,274,209		7,252,350		0.66
GNMA		3.00			11-20-2045		23,449,999		23,761,187		2.16
GNMA %%		3.50			3-21-2047		36,705,000		38,151,695		3.47
GNMA %%		4.00			3-21-2047		13,155,000		13,920,662		1.27
GNMA		0.01-10.00			12-15-2018 to 4-20-2066		90,750,992		50,455,592		4.58
Resolution Funding Corporation STRIPS ¤		0.00			10-15-2019		20,805,000		19,960,587		1.82
Resolution Funding Corporation STRIPS ¤		0.00			7-15-2020		24,300,000		22,893,929		2.08
Resolution Funding Corporation STRIPS ¤		0.00			4-15-2030		6,100,000		4,033,296		0.37
TVA		2.88			2-1-2027		7,580,000		7,605,363		0.69
Other securities									3,583,587		0.33
Total Agency Securities (Cost $890,817,145)									896,941,374		81.62
Corporate Bonds and Notes: 1.63%
Financials: 0.83%
Banks: 0.83%
International Bank for Reconstruction and Development		0.88			8-15-2019		9,305,000		9,148,816		0.83

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

8 Wells Fargo Government Securities Fund Summary portfolio of investments—February 28, 2017 (unaudited)

Security name								Value		Percent of net assets
Utilities: 0.80%
Electric Utilities: 0.80%
Other securities								$	8,730,365		0.80	%
Total Corporate Bonds and Notes (Cost $18,420,117)									17,879,181		1.63
	Interest rate			Maturity date		Principal
Municipal Obligations: 4.68%
Florida: 0.67%
Escambia County FL HFA Acts Retirement-Life Communities Incorporated Series B (Health Revenue, AGC Insured, TD Bank NA SPA) ø		0.74	%		11-15-2029	$	7,375,000		7,375,000		0.67
Illinois: 0.91%
Illinois Finance Authority Advocate Health Care Network Series C (Health Revenue, Northern Trust Company SPA) ø		0.64			11-1-2038		10,000,000		10,000,000		0.91
Iowa: 1.00%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.85			4-1-2022		11,000,000		11,000,000		1.00
New York: 0.91%
New York Metropolitan Transportation Authority Subseries E-2 (Transportation Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.64			11-15-2050		10,000,000		10,000,000		0.91
Texas: 1.19%
Other securities									13,030,662		1.19
Total Municipal Obligations (Cost $50,647,749)									51,405,662		4.68
Non-Agency Mortgage-Backed Securities: 2.29%
Other securities									25,123,350		2.29
Total Non-Agency Mortgage-Backed Securities (Cost $25,158,237)									25,123,350		2.29
U.S. Treasury Securities: 17.80%
U.S. Treasury Bond ##		2.88			11-15-2046		20,080,000		19,704,283		1.79
U.S. Treasury Bond ##		3.13			2-15-2042		26,200,000		27,025,903		2.46
U.S. Treasury Bond		3.63			2-15-2044		7,200,000		8,098,034		0.74
U.S. Treasury Bond		3.75			11-15-2043		12,470,000		14,330,761		1.30
U.S. Treasury Bond		4.63			2-15-2040		7,075,000		9,161,021		0.83
U.S. Treasury Note		1.13-2.00			6-30-2021 to 2-15-2023		3,350,000		3,277,076		0.30
U.S. Treasury Note ##		1.38			6-30-2023		54,810,000		52,375,669		4.77
U.S. Treasury Note ##		1.75			5-15-2023		44,400,000		43,459,963		3.95
U.S. Treasury Note ##		1.88			1-31-2022		18,225,000		18,199,376		1.66
Total U.S. Treasury Securities (Cost $197,872,799)									195,632,086		17.80

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

Summary portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 9

Security name	Interest rate			Maturity date		Principal		Value			Percent of net assets
Yankee Corporate Bonds and Notes: 3.06%
Financials: 2.61%
Banks: 2.61%
KfW		1.25	%		9-30-2019	$	22,500,000	$	22,265,460			2.03	%
Other securities									6,407,073			0.58
									28,672,533			2.61
Industrials: 0.45%
Transportation Infrastructure: 0.45%
Other securities									4,900,574			0.45
Total Yankee Corporate Bonds and Notes (Cost $34,193,155)									33,573,107			3.06
Yankee Government Bonds: 2.93%
Hashemite Kingdom of Jordan		3.00			6-30-2025		9,800,000		10,049,284			0.91
State of Israel		5.50			12-4-2023		9,030,000		10,757,993			0.98
Ukraine		1.47			9-29-2021		11,630,000		11,391,399			1.04
Total Yankee Government Bonds (Cost $33,328,899)									32,198,676			2.93
	Yield					Shares
Short-Term Investments: 1.75%
Investment Companies: 1.55%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.48					17,013,523		17,013,523			1.55
						Principal
U.S. Treasury Securities: 0.20%
U.S. Treasury Bill (z) #		0.49			3-16-2017	$	2,225,000		2,224,608			0.20
Total Short-Term Investments (Cost $19,238,040)									19,238,131			1.75
Total investments in securities (Cost $1,269,676,141) *									1,271,991,567			115.76
Other assets and liabilities, net									(173,129,152	)		(15.76	)
Total net assets								$	1,098,862,415			100.00	%

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

%% Security issued on a when-issued basis

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

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

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

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

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

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

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

* Cost for federal income tax purposes is $1,269,268,050 and unrealized gains (losses) consists of:

Gross unrealized gains	$	15,519,133
Gross unrealized losses		(12,795,616	)
Net unrealized gains	$	2,723,517

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

10 Wells Fargo Government Securities Fund Statement of assets and liabilities—February 28, 2017 (unaudited)

Assets
Investments
In unaffiliated securities, at value (cost $1,252,662,618)	$	1,254,978,044
In affiliated securities, at value (cost $17,013,523)		17,013,523
Total investments, at value (cost $1,269,676,141)		1,271,991,567
Receivable for investments sold		77
Principal paydown receivable		31,767
Receivable for Fund shares sold		627,888
Receivable for interest		3,942,825
Receivable for daily variation margin on open futures contracts		2,469
Prepaid expenses and other assets		56,508
Total assets		1,276,653,101
Liabilities
Distributions payable		115,705
Payable for investments purchased		169,906,633
Payable for Fund shares redeemed		6,654,757
Payable for daily variation margin on open futures contracts		47,600
Cash collateral due to broker		417,952
Management fee payable		306,967
Distribution fees payable		13,361
Administration fees payable		98,940
Accrued expenses and other liabilities		228,771
Total liabilities		177,790,686
Total net assets	$	1,098,862,415
NET ASSETS CONSIST OF
Paid-in capital	$	1,122,045,157
Overdistributed net investment income		(12,687,831	)
Accumulated net realized losses on investments		(12,776,544	)
Net unrealized gains on investments		2,281,633
Total net assets	$	1,098,862,415
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	431,116,294
Shares outstanding – Class A1		39,626,551
Net asset value per share – Class A		$10.88
Maximum offering price per share – Class A2		$11.39
Net assets – Class C	$	23,010,060
Shares outstanding – Class C1		2,115,320
Net asset value per share – Class C		$10.88
Net assets – Administrator Class	$	211,137,000
Shares outstanding – Administrator Class1		19,413,482
Net asset value per share – Administrator Class		$10.88
Net assets – Institutional Class	$	433,599,061
Shares outstanding – Institutional Class1		39,891,433
Net asset value per share – Institutional Class		$10.87

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 11

Investment income
Interest	$	12,341,686
Income from affiliated securities		78,613
Total investment income		12,420,299
Expenses
Management fee		2,491,316
Administration fees
Class A		361,008
Class B		63	1
Class C		19,984
Administrator Class		109,467
Institutional Class		182,970
Shareholder servicing fees
Class A		564,075
Class B		98	1
Class C		31,226
Administrator Class		273,667
Distribution fees
Class B		295	1
Class C		93,677
Custody and accounting fees		39,439
Professional fees		38,405
Registration fees		53,084
Shareholder report expenses		33,054
Trustees’ fees and expenses		11,608
Other fees and expenses		4,500
Total expenses		4,307,936
Less: Fee waivers and/or expense reimbursements		(391,200	)
Net expenses		3,916,736
Net investment income		8,503,563
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(8,814,859	)
Futures transactions		(1,020,076	)
Net realized losses on investments		(9,834,935	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(27,576,119	)
Futures transactions		16,252
Net change in unrealized gains (losses) on investments		(27,559,867	)
Net realized and unrealized gains (losses) on investments		(37,394,802	)
Net decrease in net assets resulting from operations	$	(28,891,239	)

¹ For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B 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.

12 Wells Fargo Government Securities Fund Statement of changes in net assets

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	8,503,563					$	13,282,891
Net realized gains (losses) on investments					(9,834,935	)					28,916,467
Net change in unrealized gains (losses) on investments					(27,559,867	)					9,139,201
Net increase (decrease) in net assets resulting from operations					(28,891,239	)					51,338,559
Distributions to shareholders from
Net investment income
Class A					(2,971,329	)					(4,277,535	)
Class B					(161	)1					(460	)
Class C					(70,602	)					(43,846	)
Administrator Class					(1,673,773	)					(2,494,382	)
Institutional Class					(3,856,809	)					(6,145,974	)
Investor Class					N/A						(357,823	)2
Net realized gains
Class A					(11,051,306	)					(2,466,148	)
Class B					0	1					(1,682	)
Class C					(620,183	)					(126,823	)
Administrator Class					(5,318,345	)					(1,082,005	)
Institutional Class					(11,260,803	)					(2,329,746	)
Total distributions to shareholders					(36,823,311	)					(19,326,424	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,274,756			25,144,956			32,719,497			369,783,886
Class B		0	1		0	1		2,994			33,790
Class C		103,925			1,159,168			488,159			5,542,743
Administrator Class		2,471,810			27,469,797			6,521,712			73,851,766
Institutional Class		3,592,396			39,957,654			11,565,396			130,810,305
Investor Class		N/A			N/A			600,036	2		6,759,663	2
					93,731,575						586,782,153
Reinvestment of distributions
Class A		1,188,628			12,924,482			558,652			6,314,765
Class B		13	1		140	1		177			1,990
Class C		26,659			289,040			5,883			66,185
Administrator Class		634,057			6,894,075			311,755			3,525,508
Institutional Class		1,274,479			13,861,620			699,980			7,911,915
Investor Class		N/A			N/A			17,945	2		202,596	2
					33,969,357						18,022,959
Payment for shares redeemed
Class A		(5,807,532	)		(64,316,812	)		(12,040,442	)		(136,746,177	)
Class B		(16,453	)1		(185,560	)1		(34,578	)		(390,963	)
Class C		(368,674	)		(4,074,026	)		(546,462	)		(6,193,763	)
Administrator Class		(3,608,133	)		(40,016,542	)		(6,220,352	)		(70,339,734	)
Institutional Class		(7,331,745	)		(81,198,427	)		(11,747,802	)		(132,884,647	)
Investor Class		N/A			N/A			(27,120,176	)2		(306,372,686	)2
					(189,791,367	)					(652,927,970	)
Net decrease in net assets resulting from capital share transactions					(62,090,435	)					(48,122,858	)
Total decrease in net assets					(127,804,985	)					(16,110,723	)
Net assets
Beginning of period					1,226,667,400						1,242,778,123
End of period				$	1,098,862,415					$	1,226,667,400
Overdistributed net investment income				$	(12,687,831	)				$	(12,618,720	)

¹  For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and are no longer offered by the Fund.

²  For the period from September 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 Government Securities Fund 13

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.51			$11.22			$11.11			$10.77			$11.48			$11.23
Net investment income		0.07			0.11	1		0.07	1		0.05			0.07			0.15
Net realized and unrealized gains (losses) on investments		(0.36	)		0.34			0.13			0.40			(0.42	)		0.33
Total from investment operations		(0.29	)		0.45			0.20			0.45			(0.35	)		0.48
Distributions to shareholders from
Net investment income		(0.07	)		(0.10	)		(0.09	)		(0.11	)		(0.09	)		(0.17	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.27	)		(0.06	)
Total distributions to shareholders		(0.34	)		(0.16	)		(0.09	)		(0.11	)		(0.36	)		(0.23	)
Net asset value, end of period		$10.88			$11.51			$11.22			$11.11			$10.77			$11.48
Total return2		(2.44	)%		4.03	%		1.84	%		4.19	%		(3.22	)%		4.35	%
Ratios to average net assets (annualized)
Gross expenses		0.87	%		0.87	%		0.87	%		0.88	%		0.85	%		0.86	%
Net expenses		0.85	%		0.85	%		0.85	%		0.86	%		0.85	%		0.86	%
Net investment income		1.30	%		0.94	%		0.59	%		0.56	%		0.67	%		1.35	%
Supplemental data
Portfolio turnover rate		179	%		397	%		349	%		349	%		341	%		327	%
Net assets, end of period (000s omitted)		$431,116			$483,112			$232,545			$173,772			$202,955			$258,329

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.

14 Wells Fargo Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.51			$11.21			$11.11			$10.77			$11.48			$11.23
Net investment income (loss)		0.03	1		0.02	1		(0.01	)1		(0.02	)1		(0.02	)		0.07
Net realized and unrealized gains (losses) on investments		(0.36	)		0.36			0.12			0.39			(0.42	)		0.32
Total from investment operations		(0.33	)		0.38			0.11			0.37			(0.44	)		0.39
Distributions to shareholders from
Net investment income		(0.03	)		(0.02	)		(0.01	)		(0.03	)		(0.00	)2		(0.08	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.27	)		(0.06	)
Total distributions to shareholders		(0.30	)		(0.08	)		(0.01	)		(0.03	)		(0.27	)		(0.14	)
Net asset value, end of period		$10.88			$11.51			$11.21			$11.11			$10.77			$11.48
Total return3		(2.80	)%		3.25	%		1.08	%		3.42	%		(3.94	)%		3.57	%
Ratios to average net assets (annualized)
Gross expenses		1.62	%		1.62	%		1.62	%		1.63	%		1.60	%		1.61	%
Net expenses		1.60	%		1.60	%		1.60	%		1.61	%		1.60	%		1.61	%
Net investment income (loss)		0.55	%		0.16	%		(0.13	)%		(0.20	)%		(0.08	)%		0.55	%
Supplemental data
Portfolio turnover rate		179	%		397	%		349	%		349	%		341	%		327	%
Net assets, end of period (000s omitted)		$23,010			$27,085			$26,981			$31,908			$44,647			$75,244

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

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

Financial highlights Wells Fargo Government Securities Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.51			$11.21			$11.11			$10.76			$11.48			$11.23
Net investment income		0.08			0.13			0.10			0.06			0.09			0.17	1
Net realized and unrealized gains (losses) on investments		(0.36	)		0.36			0.12			0.42			(0.43	)		0.33
Total from investment operations		(0.28	)		0.49			0.22			0.48			(0.34	)		0.50
Distributions to shareholders from
Net investment income		(0.08	)		(0.13	)		(0.12	)		(0.13	)		(0.11	)		(0.19	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.27	)		(0.06	)
													��
Total distributions to shareholders		(0.35	)		(0.19	)		(0.12	)		(0.13	)		(0.38	)		(0.25	)
Net asset value, end of period		$10.88			$11.51			$11.21			$11.11			$10.76			$11.48
Total return2		(2.33	)%		4.34	%		1.97	%		4.51	%		(3.10	)%		4.57	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.81	%		0.80	%		0.81	%		0.79	%		0.79	%
Net expenses		0.64	%		0.64	%		0.64	%		0.64	%		0.64	%		0.64	%
Net investment income		1.52	%		1.13	%		0.82	%		0.79	%		0.88	%		1.49	%
Supplemental data
Portfolio turnover rate		179	%		397	%		349	%		349	%		341	%		327	%
Net assets, end of period (000s omitted)		$211,137			$229,169			$216,428			$211,589			$339,446			$436,578

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 Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$11.50			$11.21			$11.10			$10.76			$11.47			$11.22
Net investment income		0.09			0.15			0.11	1		0.10			0.11			0.19	1
Net realized and unrealized gains (losses) on investments		(0.36	)		0.35			0.14			0.39			(0.42	)		0.33
Total from investment operations		(0.27	)		0.50			0.25			0.49			(0.31	)		0.52
Distributions to shareholders from
Net investment income		(0.09	)		(0.15	)		(0.14	)		(0.15	)		(0.13	)		(0.21	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.27	)		(0.06	)
Total distributions to shareholders		(0.36	)		(0.21	)		(0.14	)		(0.15	)		(0.40	)		(0.27	)
Net asset value, end of period		$10.87			$11.50			$11.21			$11.10			$10.76			$11.47
Total return2		(2.26	)%		4.42	%		2.22	%		4.59	%		(2.86	)%		4.74	%
Ratios to average net assets (annualized)
Gross expenses		0.54	%		0.54	%		0.54	%		0.55	%		0.52	%		0.53	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		1.67	%		1.28	%		0.99	%		0.94	%		1.05	%		1.71	%
Supplemental data
Portfolio turnover rate		179	%		397	%		349	%		349	%		341	%		327	%
Net assets, end of period (000s omitted)		$433,599			$487,113			$468,859			$540,684			$565,573			$778,919

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.

Notes to financial statements (unaudited) Wells Fargo Government Securities 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 Government Securities 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 at the close of business on December 5, 2016, Class B shares of the Fund were converted to Class A shares and 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.

18 Wells Fargo Government Securities 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 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.

TBA sale commitments

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

Inflation-indexed bonds and TIPS

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

Security transactions and income recognition

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

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

Distributions to shareholders

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

Federal and other taxes

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

Notes to financial statements (unaudited) Wells Fargo Government Securities Fund 19

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, 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	896,941,299	$	75	$	896,941,374
Corporate bonds and notes		0		17,879,181		0		17,879,181
Municipal obligations		0		51,405,662		0		51,405,662
Non-agency mortgage-backed securities		0		25,123,350		0		25,123,350
U.S. Treasury securities		195,632,086		0		0		195,632,086
Yankee corporate bonds and notes		0		33,573,107		0		33,573,107
Yankee government bonds		0		32,198,676		0		32,198,676
Short-term investments
Investment companies		17,013,523		0		0		17,013,523
U.S. Treasury securities		2,224,608		0		0		2,224,608
		214,870,217		1,057,121,275		75		1,271,991,567
Futures contracts		2,469		0		0		2,469
Total assets	$	214,872,686	$	1,057,121,275	$	75	$	1,271,994,036
Liabilities
Futures contracts	$	47,600	$	0	$	0	$	47,600
Total liabilities	$	47,600	$	0	$	0	$	47,600

20 Wells Fargo Government Securities Fund Notes to financial statements (unaudited)

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, 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 0.45% and declining to 0.33% as the average daily net assets of the Fund increase. For the six months ended February 28, 2017, the management fee was equivalent to an annual rate of 0.43% 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 December 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, 0.64% 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 February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $132,428 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 $3,159 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

Notes to financial statements (unaudited) Wells Fargo Government Securities Fund 21

the contingent deferred sales charges from redemptions of Class B and Class C shares. For the six months ended February 28, 2017, Funds Distributor received $1,005 from the sale of Class A shares and $20 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 short-term securities, for the six months ended February 28, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$2,232,486,141	$170,407,982	$2,423,017,204	$55,648,542

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 February 28, 2017, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2017, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2017		Unrealized gains (losses)
6-21-2017	JPMorgan	40 Short	Ultra U.S. Treasury Bonds	$	6,471,250	$	(53,965	)
6-21-2017	JPMorgan	115 Long	10-Year U.S. Treasury Notes		14,326,484		27,711
6-21-2017	JPMorgan	29 Short	U.S. Treasury Bonds		4,398,031		(32,156	)
6-30-2017	JPMorgan	143 Long	5-Year U.S. Treasury Notes		16,831,547		22,571
6-30-2017	JPMorgan	158 Short	2-Year U.S. Treasury Notes		34,192,188		2,046

The Fund had an average notional amount of $46,995,392 and $32,057,346 in long futures contracts and short futures contracts, respectively, during the six months ended February 28, 2017.

On February 28, 2017, the cumulative unrealized losses on futures contracts in the amount of $33,793 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable and payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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

22 Wells Fargo Government Securities Fund Notes to financial statements (unaudited)

Summary Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$2,469	$	(2,469	)		$0	$	0

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Futures – variation margin	JPMorgan	$47,600	$	(2,469	)	$	(45,131	)	$	0

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

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $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.

For the six months ended February 28, 2017, 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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 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 Government Securities 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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

26 Wells Fargo Government Securities 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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302024 04-17 SA216/SAR216 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo
High Yield Bond Fund

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Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	22
Other information	28
List of abbreviations	31

The views expressed and any forward-looking statements are as of February 28, 2017, 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 Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Bond Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which continued to

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 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.

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

transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Margaret D. Patel

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (EKHAX)	1-20-1998		9.61		5.13		5.92		14.63		6.11		6.41		1.04		0.93
Class B (EKHBX)*	9-11-1935		8.81		5.00		5.85		13.81		5.33		5.85		1.79		1.68
Class C (EKHCX)	1-21-1998		12.78		5.33		5.62		13.78		5.33		5.62		1.79		1.68
Administrator Class (EKHYX)	4-14-1998		–		–		–		14.45		6.34		6.65		0.98		0.80
Institutional Class (EKHIX)	10-31-2014		–		–		–		15.06		6.41		6.68		0.71		0.53
BofA Merrill Lynch U.S. High Yield Constrained Index4	–		–		–		–		22.30		6.87		7.49		–		–

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

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

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

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

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

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

Ten largest holdings (%) as of February 28, 20175
Diebold Incorporated, 8.50%, 4-15-2024	2.98
Mallinckrodt plc, 5.50%, 4-15-2025	2.74
TransDigm Incorporated, 6.38%, 6-15-2026	2.66
Wesco Distribution Incorporated, 5.38%, 6-15-2024	2.62
Post Holdings Incorporated, 5.00%, 8-15-2026	2.58
HD Supply Incorporated, 5.75%, 4-15-2024	2.57
Tronox Finance LLC, 6.38%, 8-15-2020	2.44
Level 3 Financing Incorporated, 5.25%, 3-15-2026	2.40
SPX FLOW Incorporated, 5.88%, 8-15-2026	2.27
Iron Mountain Incorporated, 5.38%, 6-1-2026	2.27

Credit quality as of February 28, 2017⁶

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. Historical performance shown for all classes of the Fund prior to July 12, 2010 is based on the performance of the Fund’s predecessor, Evergreen High Income Fund.

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

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at the amounts shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

⁴  The BofA Merrill Lynch U.S. High Yield Constrained Index (formerly BofA Merrill Lynch U.S. High Yield Master II Constrained Index) is a market value-weighted index of all domestic and yankee high-yield bonds, including deferred interest bonds and payment-in kind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB-/Baa3, but are not in default. The BofA Merrill Lynch U.S. High Yield Constrained Index limits any individual issuer to a maximum exposure 2% of the benchmark. 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  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 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 September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	989.09	$	4.66		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74		0.93	%
Class B
Actual	$	1,000.00	$	985.40	$	8.16		1.63	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.99	$	8.29		1.63	%
Class C
Actual	$	1,000.00	$	985.42	$	8.41		1.68	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.74	$	8.54		1.68	%
Administrator Class
Actual	$	1,000.00	$	993.42	$	4.02		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	4.08		0.80	%
Institutional Class
Actual	$	1,000.00	$	987.57	$	2.66		0.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.53	$	2.70		0.53	%

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—February 28, 2017 (unaudited) Wells Fargo High Yield Bond Fund 7

Security name	Shares		Value
Common Stocks: 9.66%
Consumer Discretionary: 0.33%
Auto Components: 0.11%
Gentex Corporation		30,000	$	630,900
Household Durables: 0.22%
Leggett & Platt Incorporated		15,000		737,700
Newell Rubbermaid Incorporated		10,000		490,300
				1,228,000
Consumer Staples: 0.52%
Food Products: 0.34%
ConAgra Foods Incorporated		35,000		1,442,350
Lamb Weston Holdings Incorporated		11,666		457,191
				1,899,541
Personal Products: 0.18%
The Estee Lauder Companies Incorporated Class A		12,000		994,200
Energy: 3.98%
Oil, Gas & Consumable Fuels: 3.98%
Kinder Morgan Incorporated		225,000		4,794,750
Plains All American Pipeline LP		200,000		6,416,000
Tesoro Logistics LP		85,000		4,786,350
The Williams Companies Incorporated		220,000		6,234,800
				22,231,900
Health Care: 0.04%
Health Care Equipment & Supplies: 0.04%
West Pharmaceutical Services Incorporated		3,000		247,410
Industrials: 0.86%
Aerospace & Defense: 0.70%
Huntington Ingalls Industries Incorporated		5,000		1,092,500
Raytheon Company		10,000		1,541,500
TransDigm Group Incorporated		5,000		1,271,000
				3,905,000
Machinery: 0.16%
John Bean Technologies Corporation		10,000		894,000
Information Technology: 1.94%
IT Services: 0.19%
Leidos Holdings Incorporated		20,000		1,066,000
Semiconductors & Semiconductor Equipment: 1.75%
Broadcom Limited		30,000		6,327,900
Microsemi Corporation †		5,000		259,100

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

8 Wells Fargo High Yield Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name						Shares		Value
Semiconductors & Semiconductor Equipment (continued)
QUALCOMM Incorporated							5,000	$	282,400
Xilinx Incorporated							50,000		2,941,000
									9,810,400
Materials: 0.32%
Chemicals: 0.32%
Celanese Corporation Series A							20,000		1,783,400
Real Estate: 1.46%
Equity REITs: 1.46%
Crown Castle International Corporation							65,000		6,079,450
Equinix Incorporated							3,000		1,128,210
Saul Centers Incorporated							15,000		960,600
									8,168,260
Utilities: 0.21%
Gas Utilities: 0.21%
Atmos Energy Corporation							15,000		1,174,350
Total Common Stocks (Cost $46,654,665)									54,033,361
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 78.88%
Consumer Discretionary: 9.65%
Auto Components: 2.09%
Allison Transmission Incorporated 144A		5.00	%		10-1-2024	$	1,000,000		1,017,500
Dana Holding Corporation		5.50			12-15-2024		2,000,000		2,090,000
Goodyear Tire & Rubber Company		5.13			11-15-2023		2,500,000		2,595,000
Tenneco Incorporated		5.00			7-15-2026		6,000,000		6,015,000
									11,717,500
Diversified Consumer Services: 0.33%
Avis Budget Car Rental LLC / Avis Budget Finance Incorporated 144A«		6.38			4-1-2024		1,800,000		1,829,250
Hotels, Restaurants & Leisure: 0.56%
Speedway Motorsports Incorporated		5.13			2-1-2023		3,115,000		3,153,938
Household Durables: 1.04%
KB Home		7.50			9-15-2022		3,000,000		3,285,000
Lennar Corporation		4.75			5-30-2025		2,500,000		2,531,250
									5,816,250
Media: 2.63%
CCO Holdings LLC 144A		5.75			2-15-2026		3,000,000		3,210,000
Clear Channel Worldwide Holdings Incorporated		6.50			11-15-2022		3,000,000		3,030,000
McGraw-Hill Global Education Holdings LLC 144A«		7.88			5-15-2024		5,500,000		5,390,000
Sinclair Television Group Incorporated 144A		5.63			8-1-2024		3,000,000		3,086,250
									14,716,250

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo High Yield Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Specialty Retail: 3.00%
Group 1 Automotive Incorporated		5.00	%		6-1-2022	$	3,065,000	$	3,156,950
Penske Auto Group Incorporated		5.75			10-1-2022		8,200,000		8,507,500
Sally Holdings LLC / Sally Capital Incorporated		5.63			12-1-2025		5,000,000		5,087,500
									16,751,950
Consumer Staples: 4.08%
Food Products: 3.70%
Dean Foods Company 144A		6.50			3-15-2023		5,000,000		5,212,500
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		1,000,000		1,017,500
Post Holdings Incorporated 144A		5.00			8-15-2026		15,000,000		14,446,875
									20,676,875
Household Products: 0.38%
Spectrum Brands Incorporated		5.75			7-15-2025		2,000,000		2,129,200
Energy: 1.53%
Oil, Gas & Consumable Fuels: 1.53%
Crestwood Midstream Partners LP		6.13			3-1-2022		2,500,000		2,584,375
Tennessee Gas Pipeline Company		7.00			3-15-2027		5,000,000		5,946,540
									8,530,915
Financials: 1.77%
Banks: 0.57%
Bank of America Corporation ±		6.10			12-29-2049		3,000,000		3,200,625
Consumer Finance: 0.60%
Navient Corporation		5.88			10-25-2024		1,000,000		943,750
SLM Corporation		5.50			1-25-2023		2,500,000		2,400,000
									3,343,750
Insurance: 0.60%
Genworth Holdings Incorporated		4.80			2-15-2024		4,000,000		3,370,000
Health Care: 10.49%
Health Care Equipment & Supplies: 1.88%
Halyard Health Incorporated		6.25			10-15-2022		1,000,000		1,035,000
Teleflex Incorporated		4.88			6-1-2026		9,415,000		9,485,613
									10,520,613
Health Care Providers & Services: 7.69%
AMN Healthcare Incorporated 144A		5.13			10-1-2024		8,300,000		8,445,250
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		5,000,000		5,030,950
DaVita HealthCare Partners Incorporated		5.13			7-15-2024		2,000,000		2,041,250
HCA Incorporated		4.75			5-1-2023		6,000,000		6,292,500
HCA Incorporated		5.38			2-1-2025		4,500,000		4,708,125
HealthSouth Corporation		5.13			3-15-2023		5,000,000		5,000,000
HealthSouth Corporation		5.75			11-1-2024		4,000,000		4,080,000
Kindred Healthcare Incorporated «		8.75			1-15-2023		4,000,000		3,885,000
Select Medical Corporation		6.38			6-1-2021		3,500,000		3,521,875
									43,004,950

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

10 Wells Fargo High Yield Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Health Care Technology: 0.92%
QuintilesIMS Holdings Incorporated 144A		4.88	%		5-15-2023	$	3,000,000	$	3,086,250
QuintilesIMS Holdings Incorporated 144A		5.00			10-15-2026		2,000,000		2,030,000
									5,116,250
Industrials: 17.48%
Aerospace & Defense: 6.20%
Huntington Ingalls Industries Incorporated 144A		5.00			11-15-2025		6,500,000		6,832,410
Moog Incorporated 144A		5.25			12-1-2022		5,000,000		5,131,250
Orbital ATK Incorporated		5.50			10-1-2023		4,114,000		4,278,560
TransDigm Group Incorporated		6.38			6-15-2026		14,700,000		14,847,000
TransDigm Group Incorporated		6.50			5-15-2025		3,500,000		3,583,125
									34,672,345
Commercial Services & Supplies: 1.24%
Acco Brands Corporation 144A		5.25			12-15-2024		4,000,000		4,050,000
West Corporation 144A		5.38			7-15-2022		3,000,000		2,881,500
									6,931,500
Construction & Engineering: 0.55%
Aecom Company 144A		5.13			3-15-2027		3,000,000		3,048,450
Machinery: 3.73%
Oshkosh Corporation		5.38			3-1-2025		4,163,000		4,313,909
SPX FLOW Incorporated 144A		5.63			8-15-2024		3,750,000		3,853,125
SPX FLOW Incorporated 144A		5.88			8-15-2026		12,500,000		12,687,500
									20,854,534
Trading Companies & Distributors: 5.76%
HD Supply Incorporated 144A		5.75			4-15-2024		13,582,000		14,362,965
United Rentals North America Incorporated		5.75			11-15-2024		3,000,000		3,180,000
Wesco Distribution Incorporated		5.38			6-15-2024		14,245,000		14,672,350
									32,215,315
Information Technology: 12.47%
Communications Equipment: 2.30%
CommScope Incorporated 144A		5.50			6-15-2024		8,200,000		8,589,500
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		4,000,000		4,280,000
									12,869,500
Electronic Equipment, Instruments & Components: 0.83%
Belden Incorporated 144A		5.50			9-1-2022		4,500,000		4,640,625
IT Services: 1.26%
NeuStar Incorporated (i)		4.50			1-15-2023		6,850,000		7,055,500
Semiconductors & Semiconductor Equipment: 3.08%
Micron Technology Incorporated		5.50			2-1-2025		7,900,000		8,156,750
Micron Technology Incorporated 144A		5.63			1-15-2026		6,750,000		6,935,625
Versum Materials Incorporated 144A		5.50			9-30-2024		2,000,000		2,092,500
									17,184,875

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Software: 1.43%
Nuance Communications Company 144A		6.00	%		7-1-2024	$	6,760,000	$	6,988,150
Symantec Corporation 144A		5.00			4-15-2025		1,000,000		1,026,382
									8,014,532
Technology Hardware, Storage & Peripherals: 3.57%
Diebold Incorporated		8.50			4-15-2024		15,200,000		16,682,000
Western Digital Corporation 144A		7.38			4-1-2023		3,000,000		3,281,100
									19,963,100
Materials: 12.33%
Chemicals: 8.82%
A. Schulman Incorporated 144A		6.88			6-1-2023		12,000,000		12,660,000
Koppers Incorporated 144A		6.00			2-15-2025		3,000,000		3,120,000
Olin Corporation		5.50			8-15-2022		8,275,000		8,626,688
Rayonier Advanced Materials Products Incorporated 144A		5.50			6-1-2024		7,775,000		7,425,125
Scotts Miracle-Gro Company		6.00			10-15-2023		1,000,000		1,065,620
Tronox Finance LLC		6.38			8-15-2020		13,400,000		13,634,500
Valvoline Incorporated 144A		5.50			7-15-2024		2,630,000		2,774,650
									49,306,583
Containers & Packaging: 2.24%
Ball Corporation		4.00			11-15-2023		1,500,000		1,498,125
Berry Plastics Corporation		5.13			7-15-2023		2,000,000		2,060,000
Berry Plastics Corporation		6.00			10-15-2022		3,000,000		3,176,250
Crown Americas Capital Corporation IV		4.50			1-15-2023		2,000,000		2,052,500
Owens-Brockway Glass Container Incorporated 144A«		5.88			8-15-2023		2,000,000		2,147,500
Sealed Air Corporation 144A		5.25			4-1-2023		1,500,000		1,575,000
									12,509,375
Metals & Mining: 0.48%
Steel Dynamics Incorporated		5.50			10-1-2024		2,550,000		2,703,000
Paper & Forest Products: 0.79%
P.H. Glatfelter Company		5.38			10-15-2020		4,310,000		4,396,200
Real Estate: 5.46%
Equity REITs: 5.46%
Equinix Incorporated		5.75			1-1-2025		8,193,000		8,684,580
Iron Mountain Incorporated 144A		5.38			6-1-2026		12,750,000		12,686,250
Iron Mountain Incorporated		5.75			8-15-2024		5,000,000		5,131,200
Sabra Health Care Incorporated		5.38			6-1-2023		4,000,000		4,000,000
									30,502,030
Telecommunication Services: 2.79%
Diversified Telecommunication Services: 2.40%
Level 3 Financing Incorporated 144A		5.25			3-15-2026		13,265,000		13,430,810
Wireless Telecommunication Services: 0.39%
T-Mobile USA Incorporated		6.50			1-15-2026		2,000,000		2,197,500

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

12 Wells Fargo High Yield Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 0.83%
Electric Utilities: 0.83%
DPL Incorporated		7.25	%		10-15-2021	$	4,375,000	$	4,659,375
Total Corporate Bonds and Notes (Cost $433,488,585)									441,033,465
Yankee Corporate Bonds and Notes: 9.85%
Consumer Discretionary: 3.03%
Auto Components: 1.51%
Adient Global Holdings Company 144A		4.88			8-15-2026		8,500,000		8,436,250
Automobiles: 0.55%
Fiat Chrysler Automobiles NV «		5.25			4-15-2023		3,000,000		3,108,750
Hotels, Restaurants & Leisure: 0.59%
International Game Technology 144A		6.50			2-15-2025		3,000,000		3,277,500
Media: 0.38%
Quebecor Media Incorporated		5.75			1-15-2023		2,000,000		2,132,500
Financials: 0.72%
Banks: 0.72%
Royal Bank of Scotland Group plc		5.13			5-28-2024		4,000,000		4,048,612
Health Care: 2.75%
Pharmaceuticals: 2.75%
Mallinckrodt plc 144A		5.50			4-15-2025		16,500,000		15,345,000
Industrials: 1.49%
Electrical Equipment: 1.49%
Sensata Technologies BV 144A		4.88			10-15-2023		3,000,000		3,063,750
Sensata Technologies BV 144A		5.63			11-1-2024		5,000,000		5,275,000
									8,338,750
Information Technology: 1.49%
Technology Hardware, Storage & Peripherals: 1.49%
Seagate HDD		4.75			6-1-2023		4,140,000		4,140,000
Seagate HDD		4.88			6-1-2027		4,500,000		4,206,015
									8,346,015
Telecommunication Services: 0.37%
Diversified Telecommunication Services: 0.37%
Virgin Media Finance plc 144A		5.75			1-15-2025		2,000,000		2,052,500
Total Yankee Corporate Bonds and Notes (Cost $55,140,835)									55,085,877

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo High Yield Bond Fund 13

Security name	Yield			Shares		Value
Short-Term Investments: 2.77%
Investment Companies: 2.77%
Securities Lending Cash Investment LLC (l)(r)(u)		0.84	%		13,799,365	$	13,800,745
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.48			1,684,105		1,684,105
Total Short-Term Investments (Cost $15,484,235)							15,484,850

Total investments in securities (Cost $550,768,320) *	101.16	%		565,637,553
Other assets and liabilities, net	(1.16	)		(6,503,408	)
Total net assets	100.00	%	$	559,134,145

† Non-income-earning security

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

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

± 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.

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

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

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

* Cost for federal income tax purposes is $550,689,917 and unrealized gains (losses) consists of:

Gross unrealized gains	$	19,199,842
Gross unrealized losses		(4,252,206	)
Net unrealized gains	$	14,947,636

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

14 Wells Fargo High Yield Bond Fund Statement of assets and liabilities—February 28, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $13,525,614 of securities loaned), at value (cost $535,284,085)	$	550,152,703
In affiliated securities, at value (cost $15,484,235)		15,484,850
Total investments, at value (cost $550,768,320)		565,637,553
Foreign currency, at value (cost $45)		37
Receivable for investments sold		2,071,750
Receivable for Fund shares sold		354,153
Receivable for dividends and interest		6,877,382
Receivable for securities lending income		5,795
Prepaid expenses and other assets		202,655
Total assets		575,149,325
Liabilities
Dividends payable		151,693
Payable for investments purchased		312,321
Payable for Fund shares redeemed		1,259,276
Payable upon receipt of securities loaned		13,799,676
Management fee payable		190,164
Distribution fees payable		39,735
Administration fees payable		59,768
Accrued expenses and other liabilities		202,547
Total liabilities		16,015,180
Total net assets	$	559,134,145
NET ASSETS CONSIST OF
Paid-in capital	$	602,971,389
Overdistributed net investment income		(180,254	)
Accumulated net realized losses on investments		(58,526,215	)
Net unrealized gains on investments		14,869,225
Total net assets	$	559,134,145
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	337,295,570
Shares outstanding – Class A1		100,430,793
Net asset value per share – Class A		$3.36
Maximum offering price per share – Class A2		$3.52
Net assets – Class B	$	537,588
Shares outstanding – Class B1		159,995
Net asset value per share – Class B		$3.36
Net assets – Class C	$	68,244,403
Shares outstanding – Class C1		20,318,137
Net asset value per share – Class C		$3.36
Net assets – Administrator Class	$	40,734,017
Shares outstanding – Administrator Class1		12,120,616
Net asset value per share – Administrator Class		$3.36
Net assets – Institutional Class	$	112,322,567
Shares outstanding – Institutional Class1		33,425,457
Net asset value per share – Institutional Class		$3.36

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 February 28, 2017 (unaudited) Wells Fargo High Yield Bond Fund 15

Investment income
Interest	$	14,653,624
Dividends		971,755
Securities lending income, net		76,679
Income from affiliated securities		9,325
Total investment income		15,711,383
Expenses
Management fee		1,586,987
Administration fees
Class A		278,400
Class B		568
Class C		55,508
Administrator Class		27,529
Institutional Class		43,121
Shareholder servicing fees
Class A		434,999
Class B		653
Class C		86,730
Administrator Class		68,067
Distribution fees
Class B		2,660
Class C		260,191
Custody and accounting fees		16,860
Professional fees		30,345
Registration fees		40,493
Shareholder report expenses		22,891
Trustees’ fees and expenses		31,804
Interest expense		506
Other fees and expenses		14,875
Total expenses		3,003,187
Less: Fee waivers and/or expense reimbursements		(289,979	)
Net expenses		2,713,208
Net investment income		12,998,175
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		3,650,784
Affiliated securities		453
Net realized gains on investments		3,651,237
Net change in unrealized gains (losses) on:
Unaffiliated securities		3,521,758
Affiiliated securities		615
Net change in unrealized gains (losses) on investments		3,522,373
Net realized and unrealized gains (losses) on investments		7,173,610
Net increase in net assets resulting from operations	$	20,171,785

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

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

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	12,998,175					$	12,439,473
Net realized gains on investments					3,651,237						2,468,118
Net change in unrealized gains (losses) on investments					3,522,373						14,548,500
Net increase in net assets resulting from operations					20,171,785						29,456,091
Distributions to shareholders from
Net investment income
Class A					(7,785,879	)					(8,231,331	)
Class B					(13,342	)					(41,400	)
Class C					(1,292,980	)					(2,013,680	)
Administrator Class					(1,264,912	)					(1,185,630	)
Institutional Class					(2,625,063	)					(967,432	)
Total distributions to shareholders					(12,982,176	)					(12,439,473	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,949,342			16,312,581			9,383,861			29,682,819
Class B		12			39			165			526
Class C		539,319			1,775,296			1,259,352			3,956,961
Administrator Class		4,765,221			15,752,435			16,547,411			52,617,588
Institutional Class		12,176,786			39,906,195			10,125,016			32,190,136
					73,746,546						118,448,030
Reinvestment of distributions
Class A		2,130,533			7,035,972			2,344,915			7,410,100
Class B		3,850			12,706			12,281			38,420
Class C		366,958			1,212,026			595,681			1,874,343
Administrator Class		374,027			1,234,915			357,722			1,144,565
Institutional Class		772,460			2,551,818			279,028			902,169
					12,047,437						11,369,597
Payment for shares redeemed
Class A		(18,610,935	)		(61,012,614	)		(22,733,052	)		(72,954,063	)
Class B		(107,844	)		(357,459	)		(357,396	)		(1,119,172	)
Class C		(2,613,392	)		(8,609,987	)		(3,898,147	)		(12,192,356	)
Administrator Class		(16,158,817	)		(52,853,102	)		(5,299,319	)		(16,891,021	)
Institutional Class		(9,730,804	)		(32,069,267	)		(5,244,048	)		(16,751,259	)
					(154,902,429	)					(119,907,871	)
Net asset value of shares issued in acquisition
Class A		0			0			66,188,415			216,913,577
Class B		0			0			17,689			57,990
Class C		0			0			4,839,084			15,861,615
Administrator Class		0			0			7,384,049			24,232,395
Institutional Class		0			0			23,515,844			77,106,122
					0						334,171,699
Net increase (decrease) in net assets resulting from capital share transactions					(69,108,446	)					344,081,455
Total increase (decrease) in net assets					(61,918,837	)					361,098,073
Net assets
Beginning of period					621,052,982						259,954,909
End of period				$	559,134,145					$	621,052,982
Overdistributed net investment income				$	(180,254	)				$	(196,253	)

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

Financial highlights Wells Fargo High Yield Bond Fund 17

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$3.31			$3.16			$3.35			$3.15			$3.18			$3.03
Net investment income		0.07			0.13			0.13			0.14			0.15			0.20
Net realized and unrealized gains (losses) on investments		0.05			0.15			(0.19	)		0.20			(0.03	)		0.15
Total from investment operations		0.12			0.28			(0.06	)		0.34			0.12			0.35
Distributions to shareholders from
Net investment income		(0.07	)		(0.13	)		(0.13	)		(0.14	)		(0.15	)		(0.20	)
Net asset value, end of period		$3.36			$3.31			$3.16			$3.35			$3.15			$3.18
Total return1		3.78	%		9.25	%		(1.79	)%		11.02	%		3.78	%		12.00	%
Ratios to average net assets (annualized)
Gross expenses		1.01	%		1.04	%		1.04	%		1.03	%		1.04	%		1.02	%
Net expenses		0.93	%		1.01	%		1.03	%		1.03	%		1.03	%		1.02	%
Net investment income		4.48	%		4.24	%		4.04	%		4.35	%		4.65	%		6.52	%
Supplemental data
Portfolio turnover rate		20	%		75	%		55	%		40	%		95	%		37	%
Net assets, end of period (000s omitted)		$337,296			$370,560			$179,357			$210,005			$225,743			$261,938

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.

18 Wells Fargo High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS B				2016			2015			2014			2013			2012
Net asset value, beginning of period		$3.31			$3.16			$3.36			$3.15			$3.18			$3.03
Net investment income		0.06	1		0.11	1		0.11	1		0.12			0.13			0.18	1
Net realized and unrealized gains (losses) on investments		0.05			0.15			(0.20	)		0.21			(0.03	)		0.15
Total from investment operations		0.11			0.26			(0.09	)		0.33			0.10			0.33
Distributions to shareholders from
Net investment income		(0.06	)		(0.11	)		(0.11	)		(0.12	)		(0.13	)		(0.18	)
Net asset value, end of period		$3.36			$3.31			$3.16			$3.36			$3.15			$3.18
Total return2		3.42	%		8.43	%		(2.81	)%		10.53	%		3.01	%		11.17	%
Ratios to average net assets (annualized)
Gross expenses		1.69	%		1.80	%		1.79	%		1.78	%		1.78	%		1.77	%
Net expenses		1.63	%		1.77	%		1.78	%		1.78	%		1.78	%		1.77	%
Net investment income		3.77	%		3.47	%		3.30	%		3.63	%		3.93	%		5.80	%
Supplemental data
Portfolio turnover rate		20	%		75	%		55	%		40	%		95	%		37	%
Net assets, end of period (000s omitted)		$538			$874			$1,868			$3,972			$6,667			$13,247

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 High Yield Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$3.31			$3.16			$3.35			$3.15			$3.18			$3.03
Net investment income		0.06			0.11			0.11			0.12			0.13			0.18
Net realized and unrealized gains (losses) on investments		0.05			0.15			(0.19	)		0.20			(0.03	)		0.15
Total from investment operations		0.11			0.26			(0.08	)		0.32			0.10			0.33
Distributions to shareholders from
Net investment income		(0.06	)		(0.11	)		(0.11	)		(0.12	)		(0.13	)		(0.18	)
Net asset value, end of period		$3.36			$3.31			$3.16			$3.35			$3.15			$3.18
Total return1		3.40	%		8.44	%		(2.52	)%		10.20	%		3.01	%		11.17	%
Ratios to average net assets (annualized)
Gross expenses		1.76	%		1.80	%		1.79	%		1.78	%		1.79	%		1.77	%
Net expenses		1.68	%		1.77	%		1.78	%		1.78	%		1.78	%		1.77	%
Net investment income		3.73	%		3.48	%		3.29	%		3.60	%		3.90	%		5.78	%
Supplemental data
Portfolio turnover rate		20	%		75	%		55	%		40	%		95	%		37	%
Net assets, end of period (000s omitted)		$68,244			$72,908			$60,753			$72,728			$83,548			$99,633

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.

20 Wells Fargo High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$3.31			$3.16			$3.36			$3.15			$3.18			$3.03
Net investment income		0.08			0.14	1		0.14			0.15			0.16			0.21
Net realized and unrealized gains (losses) on investments		0.05			0.15			(0.20	)		0.21			(0.03	)		0.15
Total from investment operations		0.13			0.29			(0.06	)		0.36			0.13			0.36
Distributions to shareholders from
Net investment income		(0.08	)		(0.14	)		(0.14	)		(0.15	)		(0.16	)		(0.21	)
Net asset value, end of period		$3.36			$3.31			$3.16			$3.36			$3.15			$3.18
Total return2		3.85	%		9.48	%		(1.86	)%		11.61	%		4.02	%		12.25	%
Ratios to average net assets (annualized)
Gross expenses		0.95	%		0.98	%		0.98	%		0.96	%		0.96	%		0.95	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		4.61	%		4.43	%		4.27	%		4.57	%		4.91	%		6.73	%
Supplemental data
Portfolio turnover rate		20	%		75	%		55	%		40	%		95	%		37	%
Net assets, end of period (000s omitted)		$40,734			$76,688			$13,129			$20,177			$21,376			$37,469

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 High Yield Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			20151
Net asset value, beginning of period		$3.31			$3.17			$3.33
Net investment income		0.08			0.14			0.12
Net realized and unrealized gains (losses) on investments		0.05			0.14			(0.16	)
Total from investment operations		0.13			0.28			(0.04	)
Distributions to shareholders from
Net investment income		(0.08	)		(0.14	)		(0.12	)
Net asset value, end of period		$3.36			$3.31			$3.17
Total return2		3.99	%		9.27	%		(1.31	)%
Ratios to average net assets (annualized)
Gross expenses		0.68	%		0.70	%		0.71	%
Net expenses		0.53	%		0.61	%		0.70	%
Net investment income		4.88	%		4.65	%		4.33	%
Supplemental data
Portfolio turnover rate		20	%		75	%		55	%
Net assets, end of period (000s omitted)		$112,323			$100,023			$4,847

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

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

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

22 Wells Fargo High Yield 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 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 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.

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.

Notes to financial statements (unaudited) Wells Fargo High Yield 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.

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 been determined to be doubtful based on consistently applied procedures and the fair value has decreased. 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 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.

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

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of August 31, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

	No expiration
2017	Short-term	Long-term
$7,691,971	$19,571,851	$34,957,843

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, 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	1,858,900	$	0	$	0	$	1,858,900
Consumer staples		2,893,741		0		0		2,893,741
Energy		22,231,900		0		0		22,231,900
Health care		247,410		0		0		247,410
Industrials		4,799,000		0		0		4,799,000
Information technology		10,876,400		0		0		10,876,400
Materials		1,783,400		0		0		1,783,400
Real estate		8,168,260		0		0		8,168,260
Utilities		1,174,350		0		0		1,174,350
Corporate bonds and notes		0		441,033,465		0		441,033,465
Yankee corporate bonds and notes		0		55,085,877		0		55,085,877
Short-term investments
Investment companies		1,684,105		0		0		1,684,105
Investments measured at net asset value*								13,800,745
Total assets	$	55,717,466	$	496,119,342	$	0	$	565,637,553

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $13,800,745 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, the Fund did not have any transfers between 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 0.55% and declining to 0.43% as the average daily net assets of the Fund increase. For the six months ended February 28, 2017, the management fee was equivalent to an annual rate of 0.55% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap 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 B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through December 31, 2017 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.93% for Class A shares, 1.68% for Class B shares, 1.68% for Class C shares, 0.80% for Administrator Class shares, and 0.53% 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 February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $64,230 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 $36,884 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 February 28, 2017, Funds Distributor received $1,921 from the sale of Class A shares and $251 in contingent deferred sales charges from redemptions of Class C shares.

26 Wells Fargo High Yield Bond 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, 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 February 28, 2017 were $119,730,703 and $165,881,917 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. Pursuant to these procedures, the Fund had $11,481,250 in interfund sales during the six months ended February 28, 2017.

6. ACQUISITION

After the close of business on July 22, 2016, the Fund acquired the net assets of Wells Fargo High Income Fund. The purpose of the transaction was to combine two funds with similar investment objectives and strategies. Shareholders holding Class A, Class B, Class C, Administrator Class, and Institutional Class shares of Wells Fargo High Income Fund received Class A, Class B, Class C, Administrator Class, and Institutional Class shares, respectively, of the Fund in the reorganization. The acquisition was accomplished by a tax-free exchange of all of the shares of Wells Fargo High Income Fund for 101,945,081 shares of the Fund valued at $334,171,699 at an exchange ratio of 2.01, 2.00, 2.00, 2.02, and 2.02 for Class A, Class B, Class C, Institutional Class, and Administrator Class shares, respectively. The investment portfolio of Wells Fargo High Income Fund with a fair value of $304,736,588, identified cost of $298,600,257 and unrealized gains of $6,136,331 at July 22, 2016 were the principal assets acquired by the Fund. The aggregate net assets of Wells Fargo High Income Fund and the Fund immediately prior to the acquisition were $334,171,699 and $308,714,117, respectively. The aggregate net assets of the Fund immediately after the acquisition were $642,885,816. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Wells Fargo High Income Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed September 1, 2015, the beginning of the annual reporting period for the Fund, the pro forma results of operations for the year ended August 31, 2016 would have been:

Net investment income	$	29,693,069
Net realized and unrealized gains (losses) on investments	$	(18,288,978	)
Net increase in net assets resulting from operations	$	11,404,091

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.

During the six months ended February 28, 2017, the Fund had average borrowings outstanding of $29,591 (on an annualized basis) at a an average rate of 1.71% and paid interest in the amount of $506.

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 High Yield Bond Fund 27

9. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, FASB issued Accounting Standards Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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.

28 Wells Fargo High Yield 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 High Yield Bond Fund 29

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 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

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

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo High Yield Bond Fund 31

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302025 04-17 SA218/SAR218 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo
Core Plus Bond Fund

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	20
Statement of operations	21
Statement of changes in net assets	22
Financial highlights	23
Notes to financial statements	28
Other information	38
List of abbreviations	41

The views expressed and any forward-looking statements are as of February 28, 2017, 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 Core Plus Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Core Plus Bond Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which

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 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.

Letter to shareholders (unaudited) Wells Fargo Core Plus Bond Fund 3

continued to transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

4 Wells Fargo Core Plus Bond Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Ashok Bhatia, CFA^®

Christopher Y. Kauffman, CFA^®

Thomas M. Price, CFA^®

Janet S. Rilling, CFA^®, CPA

Noah M. Wise, CFA^®

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (STYAX)	7-13-1998		1.31		2.27		4.67		6.10		3.22		5.15		0.94		0.74
Class C (WFIPX)	7-13-1998		4.30		2.44		4.37		5.30		2.44		4.37		1.69		1.49
Class R6 (STYJX)	10-31-2016		6.40		3.52		5.43		6.40		3.52		5.43		0.56		0.36
Administrator Class (WIPDX)	7-30-2010		–		–		–		6.22		3.34		5.25		0.88		0.63
Institutional Class (WIPIX)	7-18-2008		–		–		–		6.39		3.52		5.42		0.61		0.41
Bloomberg Barclays U.S. Aggregate Bond Index4	–		–		–		–		1.42		2.24		4.28		–		–

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. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as risk of greater volatility in value, credit risk (for example, risk of issuer default), and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk, high-yield securities risk, and mortgage and asset-backed securities risk. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Core Plus Bond Fund 5

Ten largest holdings (%) as of February 28, 20175
U.S. Treasury Note, 2.00%, 11-15-2026	5.21
Resolution Funding Corporation STRIPS, 0.00%, 10-15-2019	3.41
FNMA, 3.00%, 12-1-2046	2.43
GNMA, 3.50%, 3-21-2047	2.30
FNMA, 3.50%, 8-1-2045	1.52
U.S. Treasury Bond, 3.13%, 2-15-2042	1.20
FNMA, 3.00%, 12-1-2045	1.17
GNMA, 3.00%, 11-20-2045	1.11
FNMA, 2.13%, 4-24-2026	1.10
FHLMC, 3.50%, 12-1-2045	0.88

Portfolio allocation as of February 28, 2017⁶

¹  Historical performance shown for Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to the Institutional 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 and has been adjusted to include the higher expenses applicable to Administrator Class shares. Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Class A shares and includes the higher expenses applicable to Class A shares. If these expenses had not been included, returns would have been higher.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at 0.73% for Class A, 1.48% for Class C, 0.35% for Class R6, 0.62% for Administrator Class, and 0.40% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

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 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 Core Plus 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 September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	993.54	$	4.02		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	4.08		0.80	%
Class C
Actual	$	1,000.00	$	989.74	$	7.77		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.39	$	7.88		1.55	%
Class R6
Actual	$	1,000.00	$	995.03	$	2.01		0.40	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.19	$	2.04		0.40	%
Administrator Class
Actual	$	1,000.00	$	994.04	$	3.47		0.69	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.73	$	3.52		0.69	%
Institutional Class
Actual	$	1,000.00	$	995.03	$	2.46		0.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.74	$	2.50		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—February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 23.29%
FHLMC ±		2.75	%		1-1-2036	$	43,616	$	45,649
FHLMC		3.50			12-1-2045		4,506,947		4,623,374
FHLMC		3.50			12-1-2045		1,564,219		1,604,627
FHLMC		4.00			6-1-2044		3,661,419		3,852,368
FHLMC		5.00			6-1-2036		382,641		420,359
FHLMC		5.00			8-1-2040		388,751		425,706
FHLMC		5.50			10-1-2017		24,012		24,165
FHLMC		5.50			8-1-2038		81,928		91,067
FHLMC		5.50			12-1-2038		749,205		832,958
FHLMC		5.50			6-1-2040		1,106,351		1,228,909
FHLMC		7.50			5-1-2038		3,778		3,912
FHLMC		8.00			2-1-2030		293		346
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		1,222,902		1,227,412
FHLMC Series 2640 Class G		4.50			7-15-2018		170,369		172,925
FHLMC Series 3774 Class AB		3.50			12-15-2020		212,787		219,849
FHLMC Series K020 Class X1 ±(c)		1.44			5-25-2022		13,864,553		848,684
FHLMC Series T-42 Class A5		7.50			2-25-2042		1,806,733		2,108,993
FHLMC Series T-57 Class 2A1 ±		3.47			7-25-2043		55,013		59,326
FHLMC Series T-59 Class 2A1 ±		3.25			10-25-2043		281,005		276,031
FNMA		2.13			4-24-2026		6,100,000		5,814,032
FNMA %%		2.50			3-16-2032		1,645,000		1,648,856
FNMA ±		2.52			5-1-2046		1,694,036		1,722,331
FNMA ±		2.56			3-1-2046		1,590,036		1,619,525
FNMA ±		2.82			8-1-2036		1,410,529		1,494,084
FNMA ±		2.91			1-1-2036		154,193		162,886
FNMA		3.00			11-1-2045		2,496,391		2,482,353
FNMA		3.00			12-1-2045		6,184,185		6,149,409
FNMA		3.00			12-1-2046		12,871,129		12,798,750
FNMA ±		3.02			8-1-2036		70,394		74,290
FNMA ±		3.09			9-1-2036		30,974		32,804
FNMA		3.27			7-1-2022		1,249,474		1,300,875
FNMA		3.50			10-1-2043		1,199,713		1,232,933
FNMA		3.50			4-1-2045		386,034		396,069
FNMA		3.50			8-1-2045		7,829,464		8,033,000
FNMA		3.95			9-1-2021		418,661		446,454
FNMA		4.00			9-1-2024		172,966		178,308
FNMA		4.00			2-1-2046		823,119		865,589
FNMA		4.00			2-1-2046		2,318,423		2,438,044
FNMA		4.00			4-1-2046		3,661,345		3,850,256
FNMA		4.26			4-1-2021		2,750,455		2,951,735
FNMA		5.00			1-1-2024		141,589		151,220
FNMA		5.00			2-1-2036		39,092		42,990
FNMA		5.00			6-1-2040		132,919		145,798
FNMA		5.00			8-1-2040		2,390,148		2,622,533
FNMA		5.50			11-1-2023		76,896		82,697
FNMA		5.50			8-1-2034		136,802		153,693
FNMA		5.50			2-1-2035		41,206		46,279
FNMA		5.50			8-1-2038		111,700		124,227
FNMA		5.50			8-1-2038		529,011		590,050
FNMA		6.00			10-1-2037		711,539		805,654

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

8 Wells Fargo Core Plus Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		6.00	%		11-1-2037	$	51,341	$	58,190
FNMA		6.50			7-1-2036		32,422		37,114
FNMA		6.50			7-1-2036		15,321		17,588
FNMA		6.50			11-1-2036		6,369		7,156
FNMA		7.00			12-1-2022		232,041		249,050
FNMA		7.00			7-1-2036		16,128		17,490
FNMA		7.00			11-1-2037		15,459		17,211
FNMA		7.50			5-1-2038		1,997		2,026
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		7,665		9,156
FNMA Series 2003-W08 Class 4A ±		3.62			11-25-2042		199,709		211,418
FNMA Series 2003-W14 Class 2A ±		2.72			6-25-2045		147,585		157,666
FNMA Series 2003-W14 Class 2A ±		3.79			1-25-2043		347,357		376,233
FNMA Series 2004-W11 Class 1A3		7.00			5-25-2044		1,545,246		1,819,590
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		827,658		971,093
GNMA		3.00			11-20-2045		5,780,000		5,856,702
GNMA %%		3.50			3-21-2047		11,685,000		12,145,554
GNMA %%		4.00			3-21-2047		3,140,000		3,322,758
GNMA		5.00			7-20-2040		951,549		1,050,017
GNMA		7.50			12-15-2029		734		821
GNMA Series 2008-22 Class XM ±(c)		0.83			2-16-2050		2,017,282		61,487
Resolution Funding Corporation STRIPS ¤		0.00			10-15-2019		18,733,000		17,972,684
Total Agency Securities (Cost $122,348,234)									122,885,388
Asset-Backed Securities: 7.72%
Ally Auto Receivables Trust Series 2015-2 Class A3		1.49			11-15-2019		3,800,000		3,802,821
Ally Auto Receivables Trust Series 2016-2 Class A2		1.17			10-15-2018		755,718		755,707
American Airlines Series 2015-1 Class B Pass-Through Trust		3.70			11-1-2024		1,684,958		1,647,046
BMW Vehicle Lease Trust Series 2015-2 Class A3		1.40			9-20-2018		1,500,000		1,500,665
CarMax Auto Owner Trust Series 2015-3 Class A3		1.63			5-15-2020		1,960,000		1,962,023
Citibank Credit Card Issuance Trust Series 2014-A6 Class A6		2.15			7-15-2021		2,650,000		2,673,401
CNH Equipment Trust Series 2014-A Class A3		0.84			5-15-2019		86,961		86,913
CNH Equipment Trust Series 2014-C Class A3		1.05			11-15-2019		1,204,972		1,203,194
CNH Equipment Trust Series 2015-A Class A3		1.30			4-15-2020		3,496,497		3,494,617
CNH Equipment Trust Series 2016-B Class A2A		1.31			10-15-2019		1,012,554		1,011,633
CVS Pass-Through Trust First Lien		6.04			12-10-2028		1,106,252		1,247,843
Discover Card Execution Note Trust Series 2014 Class A4		2.12			12-15-2021		1,015,000		1,022,580
GM Financial Automobile Leasing Trust Series 2016-2 Class A2A		1.28			10-22-2018		797,717		796,894
GMF Floorplan Owner Revolving Trust Series 2015-1 Class A1 144A		1.65			5-15-2020		1,600,000		1,600,219
Harley-Davidson Motorcycle Trust Series 2016-A Class A2		1.52			6-15-2019		1,108,608		1,107,764
Honda Auto Receivables Owner Trust Series 2016-2 Class A2		1.13			9-17-2018		1,691,540		1,691,178
Hyundai Auto Lease Securitization Trust Series 2015-B Class A3 144A		1.40			11-15-2018		1,378,000		1,378,895
Hyundai Auto Receivables Trust Series 2015-A Class A4		1.37			7-15-2020		1,205,000		1,202,402
Kubota Credit Owner Trust Series 2016-1A Class A2 144A		1.25			4-15-2019		1,910,000		1,905,728
Nissan Auto Lease Trust Series 2015-B Class A4		1.70			4-15-2021		2,600,000		2,604,001
Nissan Auto Lease Trust Series 2016-A Class A2A		1.22			8-15-2018		1,554,707		1,554,165
SunTrust Auto Receivables Trust Series 2015-1A Class A3 144A		1.42			9-16-2019		1,752,721		1,753,886
Volvo Financial Equipment LLC Series 2016-1A Class A2 144A		1.44			10-15-2018		2,536,915		2,537,768
World Omni Auto Receivables Trust Series 2015-A Series A3		1.34			5-15-2020		2,211,984		2,211,547
Total Asset-Backed Securities (Cost $40,659,694)									40,752,890

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 26.44%
Consumer Discretionary: 3.78%
Automobiles: 0.35%
Ford Motor Company		7.45	%		7-16-2031	$	1,465,000	$	1,857,264
Diversified Consumer Services: 0.16%
Ashtead Capital Incorporated 144A		5.63			10-1-2024		795,000		842,700
Household Durables: 0.90%
D.R. Horton Incorporated		4.38			9-15-2022		2,160,000		2,269,879
KB Home		7.50			9-15-2022		950,000		1,040,250
Tempur Sealy International Incorporated		5.50			6-15-2026		610,000		597,038
Toll Brothers Finance Corporation		4.38			4-15-2023		810,000		822,150
									4,729,317
Internet & Direct Marketing Retail: 0.18%
Amazon.com Incorporated		4.95			12-5-2044		815,000		947,276
Media: 1.93%
CCO Holdings LLC 144A		5.75			2-15-2026		1,230,000		1,316,100
Charter Communications Operating LLC		4.46			7-23-2022		2,155,000		2,264,228
Charter Communications Operating LLC		6.48			10-23-2045		655,000		761,474
Discovery Communications LLC		6.35			6-1-2040		550,000		586,649
Gannett Company Incorporated 144A		5.50			9-15-2024		805,000		825,125
Gray Television Incorporated 144A		5.88			7-15-2026		585,000		593,231
NBCUniversal Enterprise Incorporated 144A		5.25			12-31-2049		938,000		989,590
SES Global Americas Holding Company 144A		5.30			3-25-2044		880,000		779,830
Sirius XM Radio Incorporated 144A		5.38			7-15-2026		965,000		984,300
Thomson Reuters Corporation		5.85			4-15-2040		945,000		1,065,477
									10,166,004
Specialty Retail: 0.20%
Asbury Automotive Group Incorporated		6.00			12-15-2024		1,000,000		1,040,000
Textiles, Apparel & Luxury Goods: 0.06%
Levi Strauss & Company		5.00			5-1-2025		325,000		331,906
Consumer Staples: 0.49%
Food Products: 0.49%
Kraft Heinz Foods Company		3.50			7-15-2022		1,540,000		1,573,013
TreeHouse Foods Incorporated 144A		6.00			2-15-2024		950,000		999,875
									2,572,888
Energy: 3.97%
Energy Equipment & Services: 0.42%
Diamond Offshore Drilling Incorporated		4.88			11-1-2043		1,300,000		965,250
NGPL PipeCo LLC 144A		7.77			12-15-2037		1,095,000		1,240,088
									2,205,338

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

10 Wells Fargo Core Plus Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels: 3.55%
Anadarko Petroleum Corporation		6.60	%		3-15-2046	$	795,000	$	995,722
Crestwood Midstream Partners LP		6.25			4-1-2023		940,000		975,250
Energy Transfer Partners LP		4.90			2-1-2024		1,300,000		1,370,131
Energy Transfer Partners LP		6.13			12-15-2045		1,330,000		1,468,256
Hess Corporation		5.60			2-15-2041		1,500,000		1,539,467
Hollyfrontier Corporation		5.88			4-1-2026		1,140,000		1,219,108
Kinder Morgan Incorporated		5.55			6-1-2045		1,100,000		1,159,429
Marathon Oil Corporation		5.90			3-15-2018		1,770,000		1,841,885
Marathon Petroleum Corporation		4.75			9-15-2044		630,000		589,557
Nabors Industries Incorporated 144A		5.50			1-15-2023		705,000		727,472
Plains All American Pipeline LP		4.90			2-15-2045		990,000		945,041
Sabine Pass Liquefaction LLC		6.25			3-15-2022		905,000		1,020,912
TC Pipelines LP		4.38			3-13-2025		1,595,000		1,633,559
Tesoro Corporation 144A		4.75			12-15-2023		2,015,000		2,085,525
Williams Partners LP		4.88			3-15-2024		1,105,000		1,141,142
									18,712,456
Financials: 10.34%
Banks: 2.33%
Bank of America Corporation		3.95			4-21-2025		1,170,000		1,174,239
Bank of America Corporation ±		6.10			12-29-2049		1,290,000		1,376,269
Citizens Financial Group ±		5.16			6-29-2023		1,340,000		1,386,120
Fifth Third Bank		2.15			8-20-2018		1,885,000		1,898,787
Huntington National Bank		2.20			11-6-2018		1,985,000		1,994,306
JPMorgan Chase & Company		2.97			1-15-2023		2,550,000		2,553,070
JPMorgan Chase & Company ±		5.15			12-29-2049		1,370,000		1,373,699
PNC Financial Services ±		5.00			12-29-2049		565,000		567,119
									12,323,609
Capital Markets: 2.43%
Bank of New York Mellon Corporation ±		4.95			12-29-2049		2,000,000		2,070,000
Blackstone Holdings Finance Company LLC 144A		5.00			6-15-2044		1,015,000		1,045,716
Goldman Sachs Group Incorporated		2.35			11-15-2021		1,980,000		1,937,998
Goldman Sachs Group Incorporated		5.15			5-22-2045		1,100,000		1,172,956
Goldman Sachs Group Incorporated ±		5.30			12-29-2049		1,100,000		1,110,780
Legg Mason Incorporated		5.63			1-15-2044		815,000		838,807
Morgan Stanley		2.63			11-17-2021		2,980,000		2,955,951
Raymond James Financial		4.95			7-15-2046		1,695,000		1,692,261
									12,824,469
Consumer Finance: 1.17%
Ally Financial Incorporated «		5.13			9-30-2024		1,080,000		1,143,450
ERAC USA Finance LLC 144A		4.50			2-15-2045		1,695,000		1,664,370
Ford Motor Credit Company LLC		2.68			1-9-2020		1,695,000		1,712,296
Hyundai Capital America Incorporated 144A		2.50			3-18-2019		1,640,000		1,645,819
									6,165,935
Diversified Financial Services: 0.70%
Argos Merger Incorporated 144A«		7.13			3-15-2023		590,000		578,938
Daimler Finance NA LLC 144A		1.75			10-30-2019		2,215,000		2,199,238

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services (continued)
GLP Capital LP / GLP Financing II Incorporated		5.38	%		4-15-2026	$	130,000	$	136,013
Voya Financial Incorporated		4.80			6-15-2046		765,000		762,546
									3,676,735
Insurance: 3.71%
CHUBB Corporation ±		6.38			3-29-2067		1,100,000		1,067,000
Endurance Specialty Holdings Limited		7.00			7-15-2034		1,330,000		1,644,999
Guardian Life Insurance Company 144A		4.85			1-24-2077		1,045,000		1,051,068
Hartford Financial Services Group ±		8.13			6-15-2068		1,905,000		2,038,350
National Life Insurance Company of Vermont 144A		10.50			9-15-2039		1,315,000		1,982,854
PartnerRe Finance II Incorporated ±		3.38			12-1-2066		1,345,000		1,143,277
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		1,730,000		1,751,933
Progressive Corporation ±		6.70			6-15-2067		2,050,000		2,026,938
Protective Life Corporation		8.45			10-15-2039		1,855,000		2,591,446
Prudential Financial Incorporated ±		8.88			6-15-2068		1,645,000		1,777,628
RenaissanceRe Finance Incorporated		3.70			4-1-2025		1,105,000		1,067,859
Transatlantic Holdings Incorporated		8.00			11-30-2039		1,100,000		1,433,587
									19,576,939
Health Care: 1.45%
Biotechnology: 0.62%
Amgen Incorporated		4.40			5-1-2045		1,005,000		986,701
Celgene Corporation		5.00			8-15-2045		960,000		1,019,357
Gilead Sciences Incorporated		4.15			3-1-2047		1,310,000		1,258,584
									3,264,642
Health Care Providers & Services: 0.60%
Acadia Healthcare Company Incorporated		6.50			3-1-2024		760,000		807,500
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		810,000		815,014
Mednax Incorporated 144A		5.25			12-1-2023		535,000		553,056
Tenet Healthcare Corporation 144A		7.50			1-1-2022		900,000		974,250
									3,149,820
Pharmaceuticals: 0.23%
Valeant Pharmaceuticals Company 144A		4.50			5-15-2023		1,500,000		1,241,690
Industrials: 1.23%
Airlines: 0.32%
American Airlines Group Incorporated 144A«		4.63			3-1-2020		635,000		645,319
United Continental Holdings Incorporated «		6.00			12-1-2020		955,000		1,020,656
									1,665,975
Trading Companies & Distributors: 0.27%
International Lease Finance Corporation		8.25			12-15-2020		1,190,000		1,418,040
Transportation Infrastructure: 0.64%
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2026		5,630,000		3,400,340

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

12 Wells Fargo Core Plus Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 0.75%
Electronic Equipment, Instruments & Components: 0.34%
Arrow Electronics Incorporated		4.00	%		4-1-2025	$	730,000	$	734,684
Ingram Micro Incorporated		5.45			12-15-2024		1,090,000		1,073,469
									1,808,153
Technology Hardware, Storage & Peripherals: 0.41%
Diamond 1 Finance Corporation 144A		7.13			6-15-2024		575,000		635,309
Diamond 1 Finance Corporation 144A		8.35			7-15-2046		1,175,000		1,532,963
									2,168,272
Materials: 1.09%
Chemicals: 0.69%
Ashland Incorporated		4.75			8-15-2022		840,000		871,920
CF Industries Incorporated		6.88			5-1-2018		1,880,000		1,972,590
W.R. Grace & Company 144A		5.63			10-1-2024		760,000		807,500
									3,652,010
Containers & Packaging: 0.21%
Owens-Illinois Incorporated 144A		6.38			8-15-2025		1,000,000		1,085,625
Metals & Mining: 0.19%
Novelis Corporation 144A		5.88			9-30-2026		990,000		1,018,463
Real Estate: 0.96%
Equity REITs: 0.77%
Corecivic Incorporated		4.63			5-1-2023		1,000,000		1,002,500
Federal Realty Investment Trust		3.63			8-1-2046		915,000		806,855
Omega Healthcare Investors Incorporated		4.38			8-1-2023		2,240,000		2,276,606
									4,085,961
Real Estate Management & Development: 0.19%
CBRE Services Incorporated		5.00			3-15-2023		940,000		973,756
Telecommunication Services: 1.71%
Diversified Telecommunication Services: 0.87%
AT&T Incorporated		4.75			5-15-2046		1,075,000		1,004,502
AT&T Incorporated		5.25			3-1-2037		1,070,000		1,102,845
AT&T Incorporated		5.65			2-15-2047		1,050,000		1,109,866
Level 3 Financing Incorporated 144A		5.25			3-15-2026		485,000		491,063
Verizon Communications Incorporated 144A		5.01			4-15-2049		882,000		865,512
									4,573,788
Wireless Telecommunication Services: 0.84%
Crown Castle Towers LLC 144A		3.22			5-15-2042		2,600,000		2,639,624
SBA Tower Trust 144A		3.72			4-15-2048		1,820,000		1,816,456
									4,456,080

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 0.67%
Gas Utilities: 0.20%
Southern Company Gas Capital Corporation		3.95	%		10-1-2046	$	1,145,000	$	1,080,368
Independent Power & Renewable Electricity Producers: 0.47%
Harper Lake Solar Funding Corporation 144A		7.65			12-31-2018		598,377		619,320
The AES Corporation		5.50			3-15-2024		1,010,000		1,030,200
Tri-State Generation and Transmission Association Incorporated		4.25			6-1-2046		850,000		825,954
									2,475,474
Total Corporate Bonds and Notes (Cost $136,296,575)									139,491,293
Foreign Corporate Bonds and Notes @: 3.75%
Consumer Discretionary: 0.68%
Automobiles: 0.26%
Fiat Chrysler Automobiles NV (EUR)		3.75			3-29-2024		1,250,000		1,380,305
Hotels, Restaurants & Leisure: 0.21%
William Hill plc (GBP)		4.88			9-7-2023		875,000		1,115,602
Internet & Direct Marketing Retail: 0.21%
Edreams Odigeo SA 144A		8.50			8-1-2021		1,000,000		1,135,147
Energy: 0.21%
Oil, Gas & Consumable Fuels: 0.21%
Total SA (EUR) ±		3.88			12-29-2049		1,000,000		1,127,943
Financials: 1.76%
Banks: 0.70%
ABN AMRO Bank NV (EUR)		6.38			4-27-2021		1,800,000		2,328,714
Allied Irish Banks plc (EUR) ±		4.13			11-26-2025		1,000,000		1,102,284
BAWAG PSK Bank (EUR)		8.13			10-30-2023		200,000		269,617
									3,700,615
Diversified Financial Services: 1.06%
Ardagh Packaging Finance plc / Ardagh MP Holdings USA Incorporated (EUR) 144A		6.75			5-15-2024		1,000,000		1,171,961
BMBG Bond Finance SCA (EUR) 144A		3.00			6-15-2021		1,500,000		1,652,647
Ineos Finance plc (EUR) 144A		4.00			5-1-2023		1,500,000		1,654,650
LYB International Finance Company (EUR)		1.88			3-2-2022		1,000,000		1,119,474
									5,598,732
Health Care: 0.22%
Life Sciences Tools & Services: 0.22%
Thermo Fisher Scientific Incorporated (EUR)		2.15			7-21-2022		1,000,000		1,143,476
Materials: 0.23%
Containers & Packaging: 0.23%
Ball Corporation (EUR)		4.38			12-15-2023		1,000,000		1,192,566

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

14 Wells Fargo Core Plus Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services: 0.65%
Diversified Telecommunication Services: 0.22%
SFR Group SA (EUR) 144A		5.63	%		5-15-2024		1,000,000	$	1,124,860
Wireless Telecommunication Services: 0.43%
Telefonica Europe BV (EUR) ±		6.50			9-29-2049		2,000,000		2,278,768
Total Foreign Corporate Bonds and Notes (Cost $20,314,629)									19,798,014
Foreign Government Bonds @: 2.12%
Indonesia (IDR)		7.88			4-15-2019		27,000,000,000		2,062,050
Letra Tesouro Nacional (BRL) ¤		0.00			1-1-2019		8,200,000		2,220,339
Mexico (MXN)		6.50			6-10-2021		37,000,000		1,809,495
Mexico (MXN)		10.00			12-5-2024		70,500,000		4,081,361
Nota Do Tesouro Nacional (BRL)		10.00			1-1-2021		3,100,000		995,265
Total Foreign Government Bonds (Cost $11,141,575)									11,168,510
Loans: 4.29%
Consumer Discretionary: 0.18%
Hotels, Restaurants & Leisure: 0.18%
Hilton Worldwide Finance LLC ±		3.50			10-26-2020	$	937,500		943,594
Consumer Staples: 0.48%
Food Products: 0.48%
Pinnacle Foods Incorporated ± %%<		3.06			2-2-2024		1,250,000		1,255,725
Prestige Brands Incorporated ± %%<		3.53			1-26-2024		1,250,000		1,265,100
									2,520,825
Energy: 0.20%
Oil, Gas & Consumable Fuels: 0.20%
Chesapeake Energy Corporation ±		8.55			8-23-2021		1,000,000		1,080,000
Health Care: 0.47%
Health Care Providers & Services: 0.47%
HCA Incorporated ±		4.03			3-17-2023		1,243,734		1,253,062
Press Ganey Holdings Incorporated ±		4.25			10-21-2023		1,250,000		1,251,563
									2,504,625
Industrials: 0.95%
Aerospace & Defense: 0.24%
TransDigm Incorporated ±		3.85			5-14-2022		1,243,979		1,248,955
Commercial Services & Supplies: 0.47%
KAR Auction Services Incorporated ±		4.19			3-9-2021		1,239,110		1,249,568
Waste Industries USA Incorporated ±		3.53			2-27-2020		1,243,671		1,249,578
									2,499,146
Communications Equipment: 0.24%
Virgin Media Bristol LLC ±		3.52			1-31-2025		1,250,000		1,254,863

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 0.59%
Internet Software & Services: 0.37%
Ancestry.com Operations Incorporated ±		4.25	%		10-19-2023	$	1,250,000	$	1,264,063
Zayo Group LLC ±%%<		3.56			1-12-2024		223,275		225,365
Zayo Group LLC ±		3.50			1-19-2024		463,725		468,065
									1,957,493
IT Services: 0.22%
First Data Corporation ±		3.78			7-10-2022		1,166,192		1,173,772
Materials: 0.48%
Containers & Packaging: 0.48%
Berry Plastics Corporation ±%%		3.31			2-8-2020		1,250,000		1,255,725
Reynolds Group Holdings Incorporated ±		3.78			2-5-2023		1,246,875		1,256,227
									2,511,952
Real Estate: 0.24%
Equity REITs: 0.24%
MGM Growth Properties LLC ±		3.28			4-25-2023		1,243,734		1,253,448
Telecommunication Services: 0.46%
Diversified Telecommunication Services: 0.23%
Level 3 Financing Incorporated ± %%<		3.31			2-14-2024		1,198,840		1,204,403
Wireless Telecommunication Services: 0.23%
Sprint Communications Incorporated ±		3.31			2-2-2024		1,250,000		1,251,788
Utilities: 0.24%
Independent Power & Renewable Electricity Producers: 0.24%
Calpine Corporation ±		3.75			1-15-2024		1,243,687		1,249,445
Total Loans (Cost $22,500,607)									22,654,309
Municipal Obligations: 6.68%
California: 0.66%
Alameda CA Corridor Transportation Authority CAB Refunding Bond Subordinated B (Transportation Revenue, Ambac Insured) ¤		0.00			10-1-2028		2,115,000		1,198,571
San Jose CA Series B (Airport Revenue, AGM Insured)		6.60			3-1-2041		2,000,000		2,256,640
									3,455,211
District of Columbia: 0.37%
Metropolitan Washington DC Airports Authority Build America Bonds (Transportation Revenue)		7.46			10-1-2046		1,375,000		1,968,065
Georgia: 0.53%
Georgia Medical Center Hospital Authority Refunding Bond Columbus Regional Healthcare System Incorporated Project (Health Revenue)		4.88			8-1-2022		2,780,000		2,790,425

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

16 Wells Fargo Core Plus Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Illinois: 2.32%
Chicago IL (GO Revenue)		5.43	%		1-1-2042	$	1,000,000	$	852,900
Chicago IL Series B (GO Revenue)		7.38			1-1-2033		1,125,000		1,153,789
Chicago IL Transit Authority Taxable Pension Funding Series A (Tax Revenue)		6.90			12-1-2040		1,075,000		1,357,962
Cook County IL Series B (GO Revenue, Build America Mutual Assurance Company Insured)		6.36			11-15-2033		1,745,000		2,115,865
Illinois Taxable Pension (GO Revenue)		5.10			6-1-2033		4,430,000		4,107,275
Metropolitan Pier & Exposition Authority Illinois CAB McCormick Place Expansion Project Series B-1 (Tax Revenue, AGM Insured) ¤		0.00			6-15-2026		1,975,000		1,370,038
Will County IL Community High School District (GO Revenue, AGM Insured) ¤		0.00			1-1-2025		1,820,000		1,274,055
									12,231,884
Iowa: 0.38%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.81			4-1-2022		2,000,000		2,000,000
Michigan: 0.57%
Michigan Finance Authority Local Government Loan Program Project Series E (Miscellaneous Revenue)		7.19			11-1-2022		1,915,000		2,121,246
Wayne County MI Series 2016 (GO Revenue)		4.25			12-1-2018		903,000		904,896
									3,026,142
New Jersey: 0.77%
New Jersey EDA Series B (Miscellaneous Revenue, AGM Insured) ¤		0.00			2-15-2019		4,250,000		4,047,105
New York: 0.36%
Oyster Bay NY (GO Revenue)		3.25			2-1-2018		805,000		806,280
Oyster Bay NY (GO Revenue)		3.55			2-1-2019		1,085,000		1,087,040
									1,893,320
Pennsylvania: 0.37%
Commonwealth Financing Authority PA Series A (Miscellaneous Revenue)		4.14			6-1-2038		1,995,000		1,962,043
Texas: 0.35%
North Texas Tollway Authority Build America Bonds Sub Lien Series B-2 (Transportation Revenue)		8.91			2-1-2030		1,595,000		1,855,751
Total Municipal Obligations (Cost $34,104,720)									35,229,946
Non-Agency Mortgage-Backed Securities: 4.29%
Arbor Realty Collateralized Series 2016-FL Class A 144A±		2.47			9-15-2026		1,000,000		1,000,000
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48			1-15-2049		1,116,617		1,117,531
Banc of America Funding Corporation Series 2016-R1 Class A1 144A±		2.50			3-25-2040		1,541,195		1,510,533
Bear Stearns Commercial Mortgage Series 2007-PW18 Class AMA ±		6.09			6-11-2050		2,380,000		2,440,833
CCG Receivables Trust Series 2016-1 Class A2 144A		1.69			9-14-2022		2,390,000		2,385,806
Credit Suisse First Boston Commercial Mortgage Trust Series 1998-C2 Class AX ±(c)		0.25			11-15-2030		158,217		199
CSAIL Commercial Mortgage Trust Series 2015-C4 Class A1		2.01			11-15-2048		3,074,916		3,075,119
Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2 (s)		7.88			7-25-2027		29,052		23,262
GAHR Commercial Mortgage Trust Series 2015-NRF Class AFX 144A		3.23			12-15-2034		1,600,000		1,644,302
GS Mortgage Securities Trust Series 2007 Class AM ±		5.87			8-10-2045		2,500,000		2,497,979
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL ±		0.93			6-12-2047		1,849,178		1,822,848

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±		5.46	%		1-15-2049	$	1,980,000	$	1,976,180
LB UBS Commercial Mortgage Trust Series 2007-C2 ±		5.49			2-15-2040		1,145,242		1,148,766
Mach One Trust Commercial Mortgage Backed Series 2004-1 Class X ±144A(c)(i)		0.50			5-28-2040		216,900		1,440
Morgan Stanley Capital I Series 2004-RR2 Class X 144A±(c)		0.23			10-28-2033		44,802		263
Morgan Stanley Capital I Series 2008-T29 Class A4 ±		6.48			1-11-2043		1,952,049		2,008,373
Total Non-Agency Mortgage-Backed Securities (Cost $22,862,273)									22,653,434
U.S. Treasury Securities: 8.52%
U.S. Treasury Bond «##		2.88			11-15-2046		2,485,000		2,438,503
U.S. Treasury Bond		3.13			2-15-2042		6,120,000		6,312,921
U.S. Treasury Bond		4.63			2-15-2040		3,470,000		4,493,109
U.S. Treasury Note		2.00			11-15-2026		28,400,000		27,472,570
U.S. Treasury Note		2.25			2-15-2027		4,250,000		4,208,495
Total U.S. Treasury Securities (Cost $44,564,717)									44,925,598
Yankee Corporate Bonds and Notes: 8.19%
Consumer Discretionary: 0.53%
Media: 0.53%
British Sky Broadcasting Group plc 144A		9.50			11-15-2018		625,000		701,529
Myriad International Holdings BV 144A		6.38			7-28-2017		1,445,000		1,470,288
Societe Francaise du Radiotelephone Group SA 144A		6.25			5-15-2024		615,000		624,219
									2,796,036
Consumer Staples: 0.25%
Food & Staples Retailing : 0.25%
Delhaize Group SA		5.70			10-1-2040		1,155,000		1,314,909
Energy: 1.05%
Oil, Gas & Consumable Fuels : 1.05%
BP Capital Markets plc		3.22			11-28-2023		2,170,000		2,178,732
Comision Federal de Electric 144A		4.75			2-23-2027		1,140,000		1,119,480
Ecopetrol SA		5.88			5-28-2045		1,095,000		992,837
Petroleos Mexicanos 144A		6.50			3-13-2027		1,170,000		1,243,418
									5,534,467
Financials: 4.84%
Banks: 2.67%
Banco Nacional de Costa Rica 144A		5.88			4-25-2021		1,600,000		1,646,400
Barclays plc		3.68			1-10-2023		2,000,000		2,016,494
BPCE SA 144A		5.15			7-21-2024		1,725,000		1,761,325
Credit Suisse Group Funding Limited		3.13			12-10-2020		2,335,000		2,344,583
Intesa Sanpaolo SpA 144A		5.71			1-15-2026		1,840,000		1,776,555
Nordea Bank AB 144A±		5.50			12-31-2049		1,800,000		1,835,550
Santander UK Group Holdings PLC		3.57			1-10-2023		960,000		962,741
Santander UK plc 144A		5.00			11-7-2023		1,210,000		1,261,807
Sumitomo Mitsui Financial Group Incorporated		2.44			10-19-2021		500,000		492,890
									14,098,345

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

18 Wells Fargo Core Plus Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets: 1.13%
Brookfield Asset Management Incorporated		5.80	%		4-25-2017	$	1,595,000	$	1,604,661
Credit Suisse Group AG 144A		3.57			1-9-2023		1,770,000		1,764,685
Macquarie Group Limited 144A		6.00			1-14-2020		2,365,000		2,572,567
									5,941,913
Diversified Financial Services: 0.88%
Banco Nacional de Comercio Exterior SNC 144A		4.38			10-14-2025		2,350,000		2,355,875
Deutsche Bank AG		6.00			9-1-2017		1,330,000		1,357,850
Sensata Technologies UK Financing Company plc 144A		6.25			2-15-2026		875,000		942,813
									4,656,538
Insurance: 0.16%
Axis Specialty Finance plc		2.65			4-1-2019		840,000		848,140
Health Care: 0.25%
Pharmaceuticals: 0.25%
Perrigo Finance plc		4.90			12-15-2044		1,330,000		1,301,837
Telecommunication Services: 0.20%
Wireless Telecommunication Services: 0.20%
Globo Communicacoes Participacoes SA 144A		4.88			4-11-2022		1,025,000		1,059,594
Utilities: 1.07%
Electric Utilities: 0.69%
Transelec SA 144A		3.88			1-12-2029		860,000		829,049
Western Power Distributions Holdings Limited 144A		7.38			12-15-2028		2,265,000		2,802,466
									3,631,515
Independent Power & Renewable Electricity Producers: 0.38%
TransAlta Corporation		1.90			6-3-2017		2,000,000		1,999,200
Total Yankee Corporate Bonds and Notes (Cost $41,905,892)									43,182,494
Yankee Government Bonds: 4.03%
Dominican Republic 144A		5.95			1-25-2027		1,455,000		1,498,650
Kingdom of Bahrain 144A		7.00			10-12-2028		2,295,000		2,396,669
Provincia de Buenos Aire 144A		6.50			2-15-2023		2,000,000		2,000,000
Republic of Argentina 144A		6.25			4-22-2019		3,500,000		3,697,750
Republic of Argentina 144A		6.88			4-22-2021		3,830,000		4,086,610
Republic of Argentina 144A		7.50			4-22-2026		3,445,000		3,608,638
Republic of South Africa		7.25			1-15-2020		14,000,000		1,052,175
Ukraine		1.47			9-29-2021		3,000,000		2,938,452
Total Yankee Government Bonds (Cost $20,698,372)									21,278,944
	Yield					Shares
Short-Term Investments: 4.90%
Investment Companies: 4.60%
Securities Lending Cash Investment LLC (l)(r)(u)		0.84					5,143,282		5,143,797
Wells Fargo Government Money Market Fund Select Class ##(l)(u)		0.48					19,096,972		19,096,972
									24,240,769

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 19

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.30%
U.S. Treasury Bill (z)#		0.49	%		3-16-2017	$	1,450,000	$	1,449,745
U.S. Treasury Bill (z)#		0.49			3-23-2017		150,000		149,962
									1,599,707
Total Short-Term Investments (Cost $25,840,230)									25,840,476

Total investments in securities (Cost $543,237,518) *	104.22	%		549,861,296
Other assets and liabilities, net	(4.22	)		(22,274,418	)
Total net assets	100.00	%	$	527,586,878

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

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

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

¤ 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.

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

@ Foreign bond principal is denominated in the local currency of the issuer.

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

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

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

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

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

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

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

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

*	Cost for federal income tax purposes is $543,349,943 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	10,827,889
	Gross unrealized losses		(4,316,536	)
	Net unrealized gains	$	6,511,353

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

20 Wells Fargo Core Plus Bond Fund Statement of assets and liabilities—February 28, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $5,042,523 of securities loaned), at value (cost $518,996,927)	$	525,620,527
In affiliated securities, at value (cost $24,240,591)		24,240,769
Total investments, at value (cost $543,237,518)		549,861,296
Cash on deposit with broker		1,268,759
Principal paydown receivable		149
Receivable for Fund shares sold		3,949,364
Receivable for interest		4,244,952
Receivable for daily variation margin on open futures contracts		8,751
Receivable for securities lending income		2,385
Unrealized gains on forward foreign currency contracts		249,338
Prepaid expenses and other assets		223,119
Total assets		559,808,113
Liabilities
Payable for investments purchased		23,038,815
Payable for Fund shares redeemed		2,599,704
Unrealized losses on credit default swap transactions		134,457
Premiums received on credit default swap transactions		931,992
Payable upon receipt of securities loaned		5,142,865
Payable for daily variation margin on open futures contracts		21,984
Due to broker, foreign currency, at value (cost $10,357)		7,663
Management fee payable		99,796
Distribution fees payable		11,008
Administration fees payable		56,348
Accrued expenses and other liabilities		176,603
Total liabilities		32,221,235
Total net assets	$	527,586,878
NET ASSETS CONSIST OF
Paid-in capital	$	525,810,271
Undistributed net investment income		755,720
Accumulated net realized losses on investments		(5,739,233	)
Net unrealized gains on investments		6,760,120
Total net assets	$	527,586,878
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	354,441,428
Shares outstanding – Class A1		28,512,406
Net asset value per share – Class A		$12.43
Maximum offering price per share – Class A2		$13.02
Net assets – Class C	$	18,645,728
Shares outstanding – Class C1		1,500,297
Net asset value per share – Class C		$12.43
Net assets – Class R6	$	24,991
Shares outstanding – Class R61		2,008
Net asset value per share – Class R6		$12.44
Net assets – Administrator Class	$	56,101,417
Shares outstanding – Administrator Class1		4,519,990
Net asset value per share – Administrator Class		$12.41
Net assets – Institutional Class	$	98,373,314
Shares outstanding – Institutional Class1		7,905,723
Net asset value per share – Institutional Class		$12.44

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 February 28, 2017 (unaudited) Wells Fargo Core Plus Bond Fund 21

Investment income
Interest (net of foreign interest withholding taxes of $14,106)	$	9,565,854
Securities lending income, net		25,414
Income from affiliated securities		24,430
Total investment income		9,615,698
Expenses
Management fee		1,162,121
Administration fees
Class A		281,657
Class B		50	1
Class C		16,108
Class R6		2	2
Administrator Class		30,772
Institutional Class		33,552
Shareholder servicing fees
Class A		440,089
Class B		78	1
Class C		25,169
Administrator Class		76,680
Distribution fees
Class B		234	1
Class C		75,506
Custody and accounting fees		20,516
Professional fees		31,409
Registration fees		45,505
Shareholder report expenses		52,662
Trustees’ fees and expenses		21,188
Other fees and expenses		4,664
Total expenses		2,317,962
Less: Fee waivers and/or expense reimbursements		(330,045	)
Net expenses		1,987,917
Net investment income		7,627,781
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		2,280,539
Futures transactions		(2,294,904	)
Forward foreign currency contract transactions		556,592
Credit default swap transactions		111,586
Net realized gains on investments		653,813
Net change in unrealized gains (losses) on:
Unaffiliated securities		(11,807,794	)
Affiliated securities		178
Futures transactions		81,620
Forward foreign currency contract transactions		187,498
Credit default swap transactions		(134,457	)
Net change in unrealized gains (losses) on investments		(11,672,955	)
Net realized and unrealized gains (losses) on investments		(11,019,142	)
Net decrease in net assets resulting from operations	$	(3,391,361	)

¹  For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and no longer offered by the Fund.

²  For the period from October 31, 2016 (commencement of class operations) to February 28, 2017

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

22 Wells Fargo Core Plus Bond Fund Statement of changes in net assets

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	7,627,781					$	12,739,004
Net realized gains on investments					653,813						6,719,288
Net change in unrealized gains (losses) on investments					(11,672,955	)					14,178,862
Net increase (decrease) in net assets resulting from operations					(3,391,361	)					33,637,154
Distributions to shareholders from
Net investment income
Class A					(5,166,463	)					(7,603,765	)
Class B					(563	)1					(3,882	)
Class C					(213,773	)					(388,505	)
Class R6					(267	)2					N/A
Administrator Class					(909,405	)					(1,886,618	)
Institutional Class					(1,370,497	)					(1,912,853	)
Investor Class					N/A						(536,302	)3
Net realized gains
Class A					(174,322	)					(1,047,115	)
Class B					0	1					(1,106	)
Class C					(10,016	)					(66,831	)
Class R6					(12	)2					N/A
Administrator Class					(28,708	)					(236,966	)
Institutional Class					(41,445	)					(207,160	)
Total distributions to shareholders					(7,915,471	)					(13,891,103	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,540,647			56,715,223			22,487,697			277,054,341
Class B		0	1		0	1		29			349
Class C		113,264			1,415,742			320,982			3,940,957
Class R6		1,985	2		25,000	2		N/A			N/A
Administrator Class		1,255,011			15,504,224			2,174,640			26,791,685
Institutional Class		2,482,629			30,832,406			2,482,394			30,648,057
Investor Class		N/A			N/A			127,407	3		1,552,848	3
					104,492,595						339,988,237
Reinvestment of distributions
Class A		403,236			5,009,293			655,533			8,042,967
Class B		43	1		550	1		392			4,796
Class C		13,340			165,716			26,835			328,893
Class R6		23	2		279	2		N/A			N/A
Administrator Class		75,333			935,280			172,738			2,113,664
Institutional Class		108,260			1,345,435			161,828			1,989,214
Investor Class		N/A			N/A			40,974	3		500,143	3
					7,456,553						12,979,677
Payment for shares redeemed
Class A		(3,978,696	)		(49,523,950	)		(14,022,099	)		(170,598,779	)
Class B		(10,055	)1		(124,139	)1		(22,365	)		(272,759	)
Class C		(297,421	)		(3,691,273	)		(355,376	)		(4,357,333	)
Administrator Class		(2,420,254	)		(29,918,863	)		(3,783,770	)		(46,188,622	)
Institutional Class		(953,898	)		(11,812,133	)		(852,821	)		(10,517,257	)
Investor Class		N/A			N/A			(13,460,098	)3		(164,539,265	)3
					(95,070,358	)					(396,474,015	)
Net increase (decrease) in net assets resulting from capital share transactions					16,878,790						(43,506,101	)
Total increase (decrease) in net assets					5,571,958						(23,760,050	)
Net assets
Beginning of period					522,014,920						545,774,970
End of period				$	527,586,878					$	522,014,920
Undistributed net investment income				$	755,720					$	788,907

¹  For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and no longer offered by the Fund.

²  For the period from October 31, 2016 (commencement of class operations) to February 28, 2017

³  For the period from September 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 Core Plus Bond Fund 23

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.70			$12.14			$12.24			$11.66			$12.57			$12.04
Net investment income		0.18			0.33			0.21	1		0.26			0.25			0.30
Net realized and unrealized gains (losses) on investments		(0.26	)		0.60			(0.08	)		0.57			(0.51	)		0.55
Total from investment operations		(0.08	)		0.93			0.13			0.83			(0.26	)		0.85
Distributions to shareholders from
Net investment income		(0.18	)		(0.33	)		(0.21	)		(0.25	)		(0.25	)		(0.29	)
Net realized gains		(0.01	)		(0.04	)		(0.02	)		0.00			(0.40	)		(0.03	)
Total distributions to shareholders		(0.19	)		(0.37	)		(0.23	)		(0.25	)		(0.65	)		(0.32	)
Net asset value, end of period		$12.43			$12.70			$12.14			$12.24			$11.66			$12.57
Total return2		(0.65	)%		7.78	%		1.04	%		7.16	%		(2.25	)%		7.19	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.93	%		0.91	%		0.93	%		0.91	%		0.89	%
Net expenses		0.80	%		0.84	%		0.84	%		0.85	%		0.87	%		0.88	%
Net investment income		2.91	%		2.76	%		1.69	%		2.10	%		2.00	%		2.42	%
Supplemental data
Portfolio turnover rate		119	%		288	%		322	%		267	%		256	%		256	%
Net assets, end of period (000s omitted)		$354,441			$349,852			$223,755			$129,646			$146,836			$172,577

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.

24 Wells Fargo Core Plus Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.70			$12.14			$12.23			$11.65			$12.56			$12.03
Net investment income		0.13			0.24	1		0.12	1		0.16			0.15			0.21
Net realized and unrealized gains (losses) on investments		(0.26	)		0.59			(0.08	)		0.58			(0.51	)		0.55
Total from investment operations		(0.13	)		0.83			0.04			0.74			(0.36	)		0.76
Distributions to shareholders from
Net investment income		(0.13	)		(0.23	)		(0.11	)		(0.16	)		(0.15	)		(0.20	)
Net realized gains		(0.01	)		(0.04	)		(0.02	)		0.00			(0.40	)		(0.03	)
Total distributions to shareholders		(0.14	)		(0.27	)		(0.13	)		(0.16	)		(0.55	)		(0.23	)
Net asset value, end of period		$12.43			$12.70			$12.14			$12.23			$11.65			$12.56
Total return2		(1.03	)%		6.99	%		0.35	%		6.35	%		(3.00	)%		6.40	%
Ratios to average net assets (annualized)
Gross expenses		1.68	%		1.68	%		1.66	%		1.68	%		1.66	%		1.64	%
Net expenses		1.55	%		1.59	%		1.59	%		1.60	%		1.62	%		1.63	%
Net investment income		2.16	%		2.00	%		0.95	%		1.35	%		1.24	%		1.65	%
Supplemental data
Portfolio turnover rate		119	%		288	%		322	%		267	%		256	%		256	%
Net assets, end of period (000s omitted)		$18,646			$21,216			$20,381			$24,212			$29,692			$41,259

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 Core Plus Bond Fund 25

(For a share outstanding throughout the period)

CLASS R6	Period ended February 28, 2017 (unaudited)1
Net asset value, beginning of period		$12.59
Net investment income		0.14	2
Net realized and unrealized gains (losses) on investments		(0.15	)
Total from investment operations		(0.01	)
Distributions to shareholders from
Net investment income		(0.13	)
Net realized gains		(0.01	)
Total distributions to shareholders		(0.14	)
Net asset value, end of period		$12.44
Total return3		(0.06	)%
Ratios to average net assets (annualized)
Gross expenses		0.54	%
Net expenses		0.40	%
Net investment income		3.40	%
Supplemental data
Portfolio turnover rate		119	%
Net assets, end of period (000s omitted)		$25

¹  For the period from October 31, 2016 (commencement of class operations) to February 28, 2017

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.

26 Wells Fargo Core Plus Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.68			$12.12			$12.22			$11.64			$12.55			$12.02
Net investment income		0.18			0.34			0.22			0.27	1		0.26	1		0.33
Net realized and unrealized gains (losses) on investments		(0.25	)		0.60			(0.08	)		0.57			(0.51	)		0.54
Total from investment operations		(0.07	)		0.94			0.14			0.84			(0.25	)		0.87
Distributions to shareholders from
Net investment income		(0.19	)		(0.34	)		(0.22	)		(0.26	)		(0.26	)		(0.31	)
Net realized gains		(0.01	)		(0.04	)		(0.02	)		0.00			(0.40	)		(0.03	)
Total distributions to shareholders		(0.20	)		(0.38	)		(0.24	)		(0.26	)		(0.66	)		(0.34	)
Net asset value, end of period		$12.41			$12.68			$12.12			$12.22			$11.64			$12.55
Total return2		(0.60	)%		7.92	%		1.15	%		7.31	%		(2.11	)%		7.37	%
Ratios to average net assets (annualized)
Gross expenses		0.87	%		0.87	%		0.85	%		0.87	%		0.85	%		0.83	%
Net expenses		0.69	%		0.72	%		0.72	%		0.72	%		0.72	%		0.73	%
Net investment income		3.01	%		2.84	%		1.82	%		2.24	%		2.14	%		2.53	%
Supplemental data
Portfolio turnover rate		119	%		288	%		322	%		267	%		256	%		256	%
Net assets, end of period (000s omitted)		$56,101			$71,133			$85,431			$101,653			$105,094			$162,067

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 Core Plus Bond Fund 27

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$12.71			$12.15			$12.24			$11.67			$12.57			$12.03
Net investment income		0.19			0.36			0.24	1		0.28			0.27	1		0.34
Net realized and unrealized gains (losses) on investments		(0.25	)		0.60			(0.07	)		0.57			(0.49	)		0.56
Total from investment operations		(0.06	)		0.96			0.17			0.85			(0.22	)		0.90
Distributions to shareholders from
Net investment income		(0.20	)		(0.36	)		(0.24	)		(0.28	)		(0.28	)		(0.33	)
Net realized gains		(0.01	)		(0.04	)		(0.02	)		0.00			(0.40	)		(0.03	)
Total distributions to shareholders		(0.21	)		(0.40	)		(0.26	)		(0.28	)		(0.68	)		(0.36	)
Net asset value, end of period		$12.44			$12.71			$12.15			$12.24			$11.67			$12.57
Total return2		(0.50	)%		8.05	%		1.37	%		7.36	%		(1.89	)%		7.62	%
Ratios to average net assets (annualized)
Gross expenses		0.60	%		0.60	%		0.58	%		0.60	%		0.56	%		0.56	%
Net expenses		0.49	%		0.58	%		0.58	%		0.58	%		0.56	%		0.56	%
Net investment income		3.23	%		3.04	%		1.95	%		2.38	%		2.26	%		2.74	%
Supplemental data
Portfolio turnover rate		119	%		288	%		322	%		267	%		256	%		256	%
Net assets, end of period (000s omitted)		$98,373			$79,687			$54,419			$32,438			$31,221			$161,191

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 Core Plus 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 Core Plus 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.

After the close of business on December 5, 2016, Class B shares of the Fund were converted to Class A shares and 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.

Non-listed 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”).

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. 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.

Notes to financial statements (unaudited) Wells Fargo Core Plus Bond Fund 29

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 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.

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.

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.

30 Wells Fargo Core Plus Bond Fund Notes to financial statements (unaudited)

Loans

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

Futures contracts

The Fund is subject to interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates and foreign exchange 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.

Credit default swaps

The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund may enter into credit default swap contracts for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or for investment gains. Credit default swaps involve an exchange of a stream of payments for protection against the loss in value of an underlying security or index. Under the terms of the swap, one party acts as a guarantor (referred to as the seller of protection) and receives a periodic stream of payments, provided that there is no credit event, from another party (referred to as the buyer of protection) that is a fixed percentage applied to a notional principal amount over the term of the swap. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. A credit event includes bankruptcy, failure to pay, obligation default, obligation acceleration, repudiation/moratorium, and restructuring. The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates. The maximum potential amount of future payments (undiscounted) that the Fund as the seller of protection could be required to make under the credit default swap contract would be an amount equal to the notional amount of the swap contract. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.

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

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.

Notes to financial statements (unaudited) Wells Fargo Core Plus Bond Fund 31

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.

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 been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

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

Distributions to shareholders

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

Federal and other taxes

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

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

As of August 31, 2016, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $6,301,555 expiring in 2017.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

∎ 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, 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.

32 Wells Fargo Core Plus Bond 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	122,885,388	$	0	$	122,885,388
Asset-backed securities		0		40,752,890		0		40,752,890
Corporate bonds and notes		0		139,491,293		0		139,491,293
Foreign corporate bonds and notes		0		19,798,014		0		19,798,014
Foreign government bonds		0		11,168,510		0		11,168,510
Loans		0		21,402,746		1,251,563		22,654,309
Municipal obligations		0		35,229,946		0		35,229,946
Non-agency mortgage-backed securities		0		21,653,434		1,000,000		22,653,434
U.S. Treasury securities		44,925,598		0		0		44,925,598
Yankee corporate bonds and notes		0		43,182,494		0		43,182,494
Yankee government bonds				21,278,944				21,278,944
Short-term investments
Investment companies		19,096,972		0		0		19,096,972
U.S. Treasury securities		1,599,707		0		0		1,599,707
Investments measured at net asset value*								5,143,797
		65,622,277		476,843,659		2,251,563		549,861,296
Forward foreign currency contracts		0		249,338		0		249,338
Futures contracts		8,751		0		0		8,751
Total assets	$	65,631,028	$	477,092,997	$	2,251,563	$	550,119,385
Liabilities
Credit default swap contracts	$	0	$	1,066,449	$	0	$	1,066,449
Futures contracts		21,984		0		0		21,984
Total liabilities	$	21,984	$	1,066,449	$	0	$	1,088,433

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $5,143,797 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

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. Futures contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Swap contracts consists of unrealized gains (losses) and premiums paid or received on swap contracts, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, 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, 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

Notes to financial statements (unaudited) Wells Fargo Core Plus Bond Fund 33

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 0.45% and declining to 0.33% as the average daily net assets of the Fund increase. For the six months ended February 28, 2017, the management fee was equivalent to an annual rate of 0.45% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap 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	%
Class R6		0.03
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through December 31, 2017 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.73% for Class A shares, 1.48% for Class C shares, 0.35% for Class R6 shares, 0.62% for Administrator Class shares, and 0.40% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prior to December 31, 2016, the Fund’s expenses were capped at 0.84% for Class A shares, 1.59% for Class C shares, 0.72% for Administrator Class shares, and 0.58% for Institutional Class shares.

During the six months ended February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $5,658 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 $69,838 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 February 28, 2017, Funds Distributor received $1,941 from the sale of Class A shares and $100 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.

34 Wells Fargo Core Plus Bond Fund Notes to financial statements (unaudited)

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the six months ended February 28, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$426,368,987	$257,995,682	$417,937,768	$224,967,396

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.

As of February 28, 2017, the Fund had unfunded term loan commitments of $4,548,575.

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2017, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2017, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2017		Unrealized gains (losses)
3-8-2017	JPMorgan	70 Short	Euro-BOBL Futures	$	9,431,100	$	(165,052	)
6-21-2017	JPMorgan	25 Long	U.S. Treasury Bonds		3,791,406		14,238
6-21-2017	JPMorgan	85 Long	10-Year U.S. Treasury Notes		10,589,141		20,482
6-30-2017	JPMorgan	85 Short	2-Year U.S. Treasury Notes		18,394,531		1,101
6-30-2017	JPMorgan	240 Long	5-Year U.S. Treasury Notes		28,248,750		37,882

The Fund had an average notional amount of $44,267,097 and $17,297,146 in long and short futures contracts, respectively, during the six months ended February 28, 2017.

During the six months ended February 28, 2017, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At February 28, 2017, 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 February 28, 2017		In exchange for U.S. $		Unrealized gains
3-31-2017	Citibank		10,000,000	EUR	$	10,608,297	$	10,772,000	$	163,703
3-31-2017	Citibank		5,000,000	EUR		5,304,148		5,385,820		81,672
3-31-2017	Citibank		1,000,000	GBP		1,241,781		1,245,744		3,963

The Fund had average contract amounts of $5,712,489 and $19,675,897 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended February 28, 2017.

The Fund enters into credit default swap contracts as a substitute for taking a position in the underlying security or basket of securities or to potentially enhance the Fund’s total return. At February 28, 2017, the Fund had the following credit default swap contracts outstanding:

Credit default swaps on an index – Buy protection

Expiration	Counterparty	Reference index	Notional amount		Fixed payments made			Value			Premiums received			Unrealized losses
12-20-2021	JPMorgan	Markit iTraxx Europe Crossover Index	$	10,000,000		1.00	%	$	(1,066,449	)	$	(931,992	)	$	(134,457	)

Notes to financial statements (unaudited) Wells Fargo Core Plus Bond Fund 35

The Fund had an average notional balance on credit default swaps of $6,436,464 during the six months ended February 28, 2017.

The Fund’s credit default swap transactions may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions. On February 28, 2017, the aggregate fair value of credit defaults swap transactions with net asset contingent features that were in a liability position amounted to $1,066,449. As of February 28, 2017, the Fund had segregated $1,268,759 on deposit at broker for outstanding credit default swap transactions.

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

The fair value of derivative instruments as of February 28, 2017 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
Interest rate risk	Receivable for daily variation margin on open futures contracts	$	8,751	*	Payable for daily variation margin on open futures contracts	$	21,984	*
Foreign currency risk	Unrealized gains on forward foreign currency contracts		249,338		Unrealized losses on forward foreign currency contracts		0
Credit risk	Value of credit default swap contracts		0		Value of credit default swap contracts		1,066,449	**
		$	258,089			$	1,088,433

* Only the current day’s variation margin as of February 28, 2017 is reported separately on the Statement of Assets and Liabilities.

** The value of swap contracts consists of unrealized losses and premiums received on swap contracts.

The effect of derivative instruments on the Statement of Operations for the six months ended February 28, 2017 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives
	Futures contracts			Forward foreign currency contracts		Credit default swaps			Total
Interest rate risk	$	(2,294,904	)	$	0	$	0		$	(2,294,904	)
Foreign currency risk		0			556,592		0			556,592
Credit risk		0			0		111,586			111,586
	$	(2,294,904	)	$	556,592	$	111,586		$	(1,626,726	)
	Change in unrealized gains (losses) on derivatives
	Futures contracts			Forward foreign currency contracts		Credit default swaps			Total
Interest rate risk	$	81,620		$	0	$	0		$	81,620
Foreign currency risk		0			187,498		0			187,498
Credit risk		0			0		(134,457	)		(134,457	)
	$	81,620		$	187,498	$	(134,457	)	$	134,661

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

36 Wells Fargo Core Plus Bond Fund Notes to financial statements (unaudited)

collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities			Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$	8,751		$	(8,751	)	$	0	$	0
Forward foreign currency contracts	Citibank		249,338	*		0			0		249,338

* 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	JPMorgan	$21,984	$	(8,751	)	$	(13,233	)	$	0
Credit default swaps	JPMorgan	1,066,449**		0			(1,066,449	)		0

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

** The value of swap contracts consists of unrealized losses and premiums received on swap contracts as reflected on the Statement of Assets and Liabilities.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $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.

For the six months ended February 28, 2017, 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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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

Notes to financial statements (unaudited) Wells Fargo Core Plus Bond Fund 37

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.

11. SUBSEQUENT DISTRIBUTIONS

On March 23, 2017, the Fund declared distributions from net investment income to shareholders of record on March 22, 2017. The per share amounts payable on March 24, 2017 were as follows:

	Net investment income
Class A		$0.01934
Class C		0.01166
Class R6		0.02178
Administrator Class		0.02073
Institutional Class		0.02290

On April 24, 2017, the Fund declared distributions from net investment income to shareholders of record on April 21, 2017. The per share amounts payable on April 25, 2017 were as follows:

	Net investment income
Class A		$0.04076
Class C		0.03272
Class R6		0.04458
Administrator Class		0.04183
Institutional Class		0.04442

These distributions are not reflected in the accompanying financial statements. The final determination of the source of all distributions is subject to change and made after the Fund’s tax year-end.

38 Wells Fargo Core Plus 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 Core Plus Bond Fund 39

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 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

40 Wells Fargo Core Plus 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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo Core Plus Bond Fund 41

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302026 04-17 SA219/SAR219 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo

Short Duration Government 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	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	19
Other information	25
List of abbreviations	28

The views expressed and any forward-looking statements are as of February 28, 2017, 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 Duration Government Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Duration Government Bond Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which continued to

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 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.

Letter to shareholders (unaudited) Wells Fargo Short Duration Government Bond Fund 3

transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

4 Wells Fargo Short Duration Government Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks to provide current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Troy Ludgood

Thomas O’Connor, CFA^®

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge								Excluding sales charge								Expense ratios2 (%)
	Inception date	1 year			5 year			10 year		1 year			5 year			10 year		Gross		Net3
Class A (MSDAX)	3-11-1996		(1.55	)		0.16			2.23		0.46			0.57			2.43		0.78		0.78
Class C (MSDCX)	5-31-2002		(1.39	)		(0.18	)		1.66		(0.39	)		(0.18	)		1.66		1.53		1.53
Class R6 (MSDRX)	11-30-2012		–			–			–		0.87			1.02			2.87		0.40		0.37
Administrator Class (MNSGX)	12-18-1992		–			–			–		0.54			0.76			2.65		0.72		0.60
Institutional Class (WSGIX)	4-8-2005		–			–			–		0.72			0.94			2.83		0.45		0.42
Bloomberg Barclays U.S. 1-3 Year Government Bond Index4	–		–			–			–		0.39			0.63			2.10		–		–

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. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Securities issued by U.S. government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to mortgage- and asset-backed securities risk. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Short Duration Government Bond Fund 5

Ten largest holdings (%) as of February 28, 20175
U.S. Treasury Note, 1.50%, 2-15-2020	19.55
U.S. Treasury Note, 0.75%, 10-31-2017	4.24
U.S. Treasury Note, 0.50%, 4-30-2017	3.94
U.S. Treasury Note, 1.25%, 12-31-2018	3.78
U.S. Treasury Note, 1.13%, 1-31-2019	2.35
FHLMC, 4.50%, 8-1-2020	2.26
U.S. Treasury Note, 0.75%, 9-30-2018	2.18
U.S. Treasury Note, 1.13%, 2-28-2019	1.96
FNMA, 4.00%, 3-1-2033	1.62
U.S. Treasury Note, 0.88%, 9-15-2019	1.56

Portfolio allocation as of February 28, 2017⁶

¹  Historical performance shown for Class R6 shares prior to their inception reflects the performance of Institutional Class shares and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, returns would be higher.

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

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at the amounts shown. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

⁴  The Bloomberg Barclays U.S. 1–3 Year Government Bond Index (formerly known as Barclay U.S. 1-3 Year Government Bond Index) is composed of all publicly issued, nonconvertible domestic debt of the U.S. government and its agencies. The index also includes corporate debt guaranteed by the U.S. government. Only notes and bonds with a minimum maturity of one year up to a maximum maturity of 2.9 years are included. You cannot invest directly in an index.

⁵  The 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 Short Duration Government Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	999.79	$	3.93		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.27	$	3.97		0.78	%
Class C
Actual	$	1,000.00	$	995.10	$	7.69		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.49	$	7.78		1.53	%
Class R6
Actual	$	1,000.00	$	1,001.85	$	1.87		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.34	$	1.89		0.37	%
Administrator Class
Actual	$	1,000.00	$	999.69	$	3.02		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,000.59	$	2.12		0.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.09	$	2.14		0.42	%

¹ Expenses paid is equal to the annualized 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—February 28, 2017 (unaudited) Wells Fargo Short Duration Government Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 35.89%
FHLMC ±		2.28	%		3-1-2043	$	5,894,501	$	5,994,230
FHLMC ±		2.81			12-1-2041		4,883,850		5,056,897
FHLMC ±		2.87			7-1-2044		4,932,026		5,080,967
FHLMC ±		2.90			7-1-2044		4,526,061		4,661,400
FHLMC ±		2.97			7-1-2044		5,162,888		5,324,118
FHLMC		3.00			2-1-2027		5,917,198		6,098,060
FHLMC ±		3.14			7-1-2042		1,857,339		1,924,349
FHLMC ±		3.26			10-1-2041		2,232,767		2,307,576
FHLMC ±		3.44			5-1-2042		7,842,872		8,163,018
FHLMC		3.50			8-1-2029		3,337,710		3,486,361
FHLMC		3.50			6-1-2031		2,271,290		2,378,092
FHLMC		3.50			2-1-2032		1,853,848		1,941,465
FHLMC		3.50			6-1-2032		1,796,571		1,875,562
FHLMC		3.50			5-1-2033		2,265,410		2,360,451
FHLMC		3.50			8-1-2034		1,099,453		1,143,172
FHLMC		4.00			6-1-2025		1,810,995		1,917,826
FHLMC		4.00			9-1-2030		323,758		351,203
FHLMC		4.00			3-1-2031		1,099,476		1,192,954
FHLMC		4.00			6-1-2031		2,289,522		2,421,932
FHLMC		4.00			4-1-2032		917,285		973,851
FHLMC		4.50			8-1-2018		1,423,822		1,457,223
FHLMC		4.50			10-1-2018		786,888		805,347
FHLMC		4.50			8-1-2020		22,925,637		23,463,440
FHLMC		4.50			4-1-2031		1,983,364		2,137,663
FHLMC Multifamily Structured Pass-Through Certificates Series K017 Class A1		1.89			12-25-2020		2,281,586		2,286,598
FHLMC Series 4248 Class MP		3.50			6-15-2042		4,209,736		4,323,612
FNMA ±		2.13			6-1-2043		3,488,100		3,543,072
FNMA ±		2.26			8-1-2043		3,413,859		3,475,973
FNMA ±		2.34			10-1-2043		1,876,797		1,915,321
FNMA ±		2.61			12-1-2041		3,380,535		3,492,184
FNMA ±		2.66			5-1-2044		2,042,079		2,094,957
FNMA ±		2.68			1-1-2045		1,901,459		1,951,028
FNMA ±		2.73			11-1-2044		3,158,047		3,247,367
FNMA ±		2.76			10-1-2045		2,451,183		2,515,504
FNMA ±		2.78			2-1-2045		4,512,621		4,645,566
FNMA ±		3.21			12-1-2043		1,062,945		1,100,204
FNMA		3.50			10-1-2025		317,800		331,811
FNMA		3.50			7-1-2027		12,844,929		13,433,291
FNMA		3.50			12-1-2029		1,920,674		2,016,119
FNMA		3.50			5-1-2030		2,332,665		2,438,919
FNMA		3.50			6-1-2030		6,858,833		7,173,536
FNMA		3.50			8-1-2030		4,064,847		4,251,354
FNMA		3.50			3-1-2031		4,038,407		4,251,150
FNMA		3.50			3-1-2031		5,370,191		5,653,216
FNMA		3.50			3-1-2031		773,837		810,333
FNMA		3.50			4-1-2031		3,330,249		3,487,122
FNMA		3.50			6-1-2031		4,579,627		4,801,777
FNMA		3.50			6-1-2031		2,103,188		2,202,451
FNMA		3.50			7-1-2031		306,725		322,259
FNMA		3.50			7-1-2031		1,041,898		1,091,208
FNMA		3.50			7-1-2031		4,750,144		4,997,806

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

8 Wells Fargo Short Duration Government Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		3.50	%		8-1-2031	$	2,000,942	$	2,095,414
FNMA		3.50			9-1-2031		1,587,939		1,667,942
FNMA		3.50			4-1-2032		1,400,475		1,460,720
FNMA		3.50			6-1-2032		3,134,879		3,269,757
FNMA		3.50			8-1-2032		8,193,778		8,546,256
FNMA		3.50			3-1-2033		1,703,860		1,775,997
FNMA ±		3.51			3-1-2041		598,666		623,987
FNMA ±		3.51			12-1-2041		3,221,654		3,363,942
FNMA		4.00			12-1-2025		3,898,347		4,088,523
FNMA		4.00			1-1-2026		2,454,676		2,564,874
FNMA		4.00			3-1-2026		2,034,101		2,158,983
FNMA		4.00			3-1-2026		3,478,793		3,704,453
FNMA		4.00			5-1-2026		678,190		723,431
FNMA		4.00			3-1-2029		4,328,722		4,594,675
FNMA		4.00			6-1-2029		2,264,917		2,405,944
FNMA		4.00			7-1-2029		5,379,217		5,650,930
FNMA		4.00			9-1-2030		444,558		481,858
FNMA		4.00			4-1-2032		1,025,791		1,101,214
FNMA		4.00			6-1-2032		4,027,359		4,240,120
FNMA		4.00			3-1-2033		15,822,296		16,783,577
FNMA		4.50			1-1-2020		19,237,271		19,724,530
FNMA		4.50			5-1-2020		6,521,521		6,700,840
FNMA		4.50			9-1-2020		8,942,921		9,180,648
FNMA		4.50			10-1-2020		1,806,186		1,851,935
FNMA		4.50			10-25-2020		6,226,799		6,391,429
FNMA		4.50			4-1-2024		3,677,626		3,872,276
FNMA		4.50			6-1-2025		1,479,733		1,574,275
FNMA		4.50			10-1-2026		4,980,644		5,308,755
FNMA		4.50			4-1-2031		643,896		702,675
FNMA		4.50			4-1-2031		660,103		718,870
FNMA		4.50			4-1-2031		403,473		440,302
FNMA		4.50			4-1-2031		317,722		346,200
FNMA		4.50			1-1-2034		431,144		473,823
FNMA		4.50			1-1-2034		328,079		359,747
FNMA		5.00			1-1-2020		1,675,666		1,718,554
FNMA		5.00			2-1-2023		1,964,850		2,034,513
FNMA		5.00			5-1-2023		482,764		511,719
FNMA		5.00			8-1-2030		709,745		778,515
FNMA		5.00			5-1-2046		885,817		982,784
FNMA Series 2009-20 Class DT		4.50			4-25-2039		3,971,765		4,308,388
FNMA Series 2013-103 Class H		4.50			3-25-2038		4,383,439		4,710,889
FNMA Series 2015-18 Class HE		4.00			9-25-2041		13,849,368		14,740,212
FNMA Series 2015-M10 Class FA ±		0.80			3-25-2019		8,387,410		8,391,851
FNMA Series 2015-M4 Class FA ±		0.76			9-25-2018		9,631,182		9,631,961
FNMA Series 2015-M8 Class FA ±		0.72			11-25-2018		5,434,255		5,431,618
GNMA		5.00			10-15-2039		1,909,714		2,141,153
GNMA Series 2016-112 Class AW ±		7.15			12-20-2040		3,483,939		4,074,699
Total Agency Securities (Cost $376,439,610)									372,776,653

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short Duration Government Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 14.24%
Ally Master Owner Trust Series 2017-1 Class A ±		1.17	%		2-15-2021	$	5,237,000	$	5,232,560
Avis Budget Rental Car Funding LLC Series 2013-1A Class A 144A		1.92			9-20-2019		4,088,000		4,087,247
Avis Budget Rental Car Funding LLC Series 2014-1A Class A 144A		2.46			7-20-2020		6,637,000		6,662,517
Avis Budget Rental Car Funding LLC Series 2015-1A Class A 144A		2.50			7-20-2021		4,764,000		4,767,366
California Republic Auto Receivables Trust Series 2015-1 Class A4		1.82			9-15-2020		3,620,000		3,623,887
California Republic Auto Receivables Trust Series 2016-1 Class A4		2.24			10-15-2021		4,948,000		4,977,128
California Republic Auto Receivables Trust Series 2017-1 Class A4		2.36			6-15-2022		5,043,000		5,041,325
Capital Auto Receivables Asset Trust Series 2016-1 Class A4		1.98			10-20-2020		4,930,000		4,940,469
Capital Auto Receivables Asset Trust Series 2016-2 Class A4		1.63			1-20-2021		3,153,000		3,136,541
Capital Auto Receivables Asset Trust Series 2016-3 Class A3A		1.54			8-20-2020		3,052,000		3,044,484
Hertz Vehicle Financing LLC Series 2013-1A Class A2 144A		1.83			8-25-2019		3,145,000		3,126,885
Hertz Vehicle Financing LLC Series 2015-1A Class A 144A		2.73			3-25-2021		7,310,000		7,280,740
Hertz Vehicle Financing LLC Series 2015-3A Class A 144A		2.67			9-25-2021		4,300,000		4,240,460
Hertz Vehicle Financing LLC Series 2016-3A Class A 144A		2.27			7-25-2020		3,452,000		3,426,428
Navient Student Loan Trust Series 2014-CTA Class A 144A±		1.47			9-16-2024		7,084,197		7,096,085
Navient Student Loan Trust Series 2017-1A Class A2 144A±		1.52			7-26-2066		9,439,000		9,438,845
Nelnet Student Loan Trust Series 2004-4 Class A5 ±		1.20			1-25-2037		3,156,690		3,113,019
Nelnet Student Loan Trust Series 2006-1 Class A5 ±		1.16			8-23-2027		2,012,838		2,002,388
Nelnet Student Loan Trust Series 2016-1A Class A 144A±		1.57			9-25-2065		10,366,161		10,418,104
SLC Student Loan Trust Series 2005-3 Class A3 ±		1.08			6-15-2029		5,953,000		5,879,123
SLC Student Loan Trust Series 2010-1 Class A ±		1.93			11-25-2042		1,946,640		1,952,444
SLM Student Loan Trust Series 2005-6 Class A5 ±		2.24			7-27-2026		1,366,815		1,373,486
SLM Student Loan Trust Series 2005-6 Class A5A ±		1.15			7-27-2026		831,934		829,813
SLM Student Loan Trust Series 2005-8 Class A4 ±		1.63			1-25-2028		10,474,526		10,507,065
SLM Student Loan Trust Series 2010-A Class 1A 144A±		3.70			5-16-2044		1,686,672		1,728,539
SLM Student Loan Trust Series 2010-A Class 2A 144A±		4.02			5-16-2044		3,011,862		3,131,550
SLM Student Loan Trust Series 2012-E Class A2A 144A		2.09			6-15-2045		5,195,806		5,202,302
SLM Student Loan Trust Series 2014-A Class A2A 144A		2.59			1-15-2026		2,746,000		2,754,287
SLM Student Loan Trust Series 2014-A Class A2B 144A±		1.92			1-15-2026		4,005,000		4,043,945
TCF Auto Receivables Owner Trust Series 2015-1A Class A4 144A		1.96			11-16-2020		6,610,000		6,620,068
TCF Auto Receivables Owner Trust Series 2016-1A Class A3 144A		1.71			4-15-2021		3,052,000		3,033,368
Verizon Owner Trust Series 2016-1A Class A 144A		1.42			1-20-2021		5,237,000		5,196,169
Total Asset-Backed Securities (Cost $147,815,093)									147,908,637
Non-Agency Mortgage-Backed Securities: 5.24%
Commercial Mortgage Trust Series 2012-LC4 Class A3		3.07			12-10-2044		10,980,171		11,170,683
Commercial Mortgage Trust Series 2013-CR6 Class A1		0.72			3-10-2046		930,006		927,009
DBUBS Mortgage Trust Series 2011-LC2A Class A1 144A		3.53			7-10-2044		538,170		553,857
GS Mortgage Securities Trust Series 2010-C1 Class A1 144A		3.68			8-10-2043		808,002		828,070
GS Mortgage Securities Trust Series 2010-C2 Class A1 144A		3.85			12-10-2043		905,961		934,826
GS Mortgage Securities Trust Series 2012-GCJ7 Class AAB		2.94			5-10-2045		2,579,000		2,618,876
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-C1 Class A2 144A		4.61			6-15-2043		1,825,439		1,898,391
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-C2 Class A2 144A		3.62			11-15-2043		3,664,895		3,709,156
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2012-CBX Class A3		3.14			6-15-2045		2,303,941		2,339,705
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-C18 Class A1		1.25			2-15-2047		781,817		780,334
JPMorgan Chase Commercial Mortgage Securities Trust Series 2010-CNTR Class A1 144A		3.30			8-5-2032		1,101,914		1,119,899

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

10 Wells Fargo Short Duration Government Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Trust Series 2011-C4 Class A3 144A		4.11	%		7-15-2046	$	1,094,085	$	1,121,463
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-LC9 Class A2		1.68			12-15-2047		3,097,512		3,099,991
Morgan Stanley Bank of America Merrill Lynch Trust Series 2012-C6 Class A2		1.87			11-15-2045		304,980		305,415
Morgan Stanley Capital I Trust Series 2011-C2 Class A3 144A		4.21			6-15-2044		624,893		646,195
Social Professional Loan Program LLC Series 2016-C Class A1 144A±		1.88			10-27-2036		3,816,423		3,864,733
Social Professional Loan Program LLC Series 2016-D Class A1 144A±		1.73			1-25-2039		8,873,052		8,944,920
Social Professional Loan Program LLC Series 2016-E Class A1 144A±		1.63			7-25-2039		4,440,398		4,461,074
Social Professional Loan Program LLC Series 2017-A Class A1 144A±		1.48			3-26-2040		5,052,000		5,060,026
Total Non-Agency Mortgage-Backed Securities (Cost $55,025,228)									54,384,623
U.S. Treasury Securities: 44.45%
U.S. Treasury Note		0.50			4-30-2017		40,955,000		40,956,311
U.S. Treasury Note		0.75			10-31-2017		44,093,000		44,079,243
U.S. Treasury Note		0.75			7-31-2018		14,937,000		14,866,975
U.S. Treasury Note		0.75			8-31-2018		4,599,000		4,574,929
U.S. Treasury Note		0.75			9-30-2018		22,793,000		22,659,456
U.S. Treasury Note		0.75			7-15-2019		11,990,000		11,824,202
U.S. Treasury Note		0.75			8-15-2019		11,050,000		10,888,571
U.S. Treasury Note		0.88			9-15-2019		16,372,000		16,164,157
U.S. Treasury Note		1.00			11-30-2018		292,000		291,144
U.S. Treasury Note		1.13			1-31-2019		24,443,000		24,397,169
U.S. Treasury Note		1.13			2-28-2019		20,442,000		20,398,888
U.S. Treasury Note		1.25			12-31-2018		39,212,000		39,244,154
U.S. Treasury Note		1.38			12-15-2019		8,232,000		8,213,988
U.S. Treasury Note		1.50			2-15-2020		203,731,000		203,062,559
Total U.S. Treasury Securities (Cost $462,157,902)									461,621,746
	Yield					Shares
Short-Term Investments: 1.28%
Investment Companies: 1.28%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.48					13,247,375		13,247,375
Total Short-Term Investments (Cost $13,247,375)									13,247,375

Total investments in securities (Cost $1,054,685,208) *	101.10	%		1,049,939,034
Other assets and liabilities, net	(1.10	)		(11,380,944	)
Total net assets	100.00	%	$	1,038,558,090

± 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 $1,054,749,279 and unrealized gains (losses) consists of:

Gross unrealized gains	$	810,950
Gross unrealized losses		(5,621,195	)
Net unrealized losses	$	(4,810,245	)

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

Statement of assets and liabilities—February 28, 2017 (unaudited) Wells Fargo Short Duration Government Bond Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $1,041,437,833)	$	1,036,691,659
In affiliated securities, at value (cost $13,247,375)		13,247,375
Total investments, at value (cost $1,054,685,208)		1,049,939,034
Cash		632,321
Segregated cash		525,000
Receivable for investments sold		65,215,258
Principal paydown receivable		1,370,361
Receivable for Fund shares sold		555,293
Receivable for interest		2,049,468
Receivable for daily variation margin on open futures contracts		54,399
Prepaid expenses and other assets		70,210
Total assets		1,120,411,344
Liabilities
Dividends payable		46,124
Payable for investments purchased		80,398,978
Payable for Fund shares redeemed		959,138
Payable for daily variation margin on open futures contracts		11,391
Management fee payable		245,553
Distribution fees payable		13,908
Administration fees payable		62,270
Accrued expenses and other liabilities		115,892
Total liabilities		81,853,254
Total net assets	$	1,038,558,090
NET ASSETS CONSIST OF
Paid-in capital	$	1,097,988,509
Overdistributed net investment income		(4,148,617	)
Accumulated net realized losses on investments		(50,566,603	)
Net unrealized losses on investments		(4,715,199	)
Total net assets	$	1,038,558,090
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	58,398,570
Shares outstanding – Class A1		5,913,559
Net asset value per share – Class A		$9.88
Maximum offering price per share – Class A2		$10.08
Net assets – Class C	$	23,840,524
Shares outstanding – Class C1		2,410,136
Net asset value per share – Class C		$9.89
Net assets – Class R6	$	221,220,769
Shares outstanding – Class R61		22,326,852
Net asset value per share – Class R6		$9.91
Net assets – Administrator Class	$	111,125,629
Shares outstanding – Administrator Class1		11,233,184
Net asset value per share – Administrator Class		$9.89
Net assets – Institutional Class	$	623,972,598
Shares outstanding – Institutional Class1		63,091,348
Net asset value per share – Institutional Class		$9.89

¹  The Fund has an unlimited number of authorized shares.

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

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

12 Wells Fargo Short Duration Government Bond Fund Statement of operations—six months ended February 28, 2017 (unaudited)

Investment income
Interest	$	7,668,364
Income from affiliated securities		56,099
Total investment income		7,724,463
Expenses
Management fee		1,836,986
Administration fees
Class A		48,749
Class B		13	1
Class C		20,386
Class R6		33,580
Administrator Class		57,991
Institutional Class		251,151
Shareholder servicing fees
Class A		76,170
Class B		20	1
Class C		31,853
Administrator Class		144,758
Distribution fees
Class B		60	1
Class C		95,559
Custody and accounting fees		34,600
Professional fees		24,973
Registration fees		33,340
Shareholder report expenses		22,357
Trustees’ fees and expenses		11,390
Other fees and expenses		7,218
Total expenses		2,731,154
Less: Fee waivers and/or expense reimbursements		(217,828	)
Net expenses		2,513,326
Net investment income		5,211,137
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(3,496,043	)
Futures transactions		837,191
Net realized losses on investments		(2,658,852	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(1,894,745	)
Futures transactions		74,285
Net change in unrealized gains (losses) on investments		(1,820,460	)
Net realized and unrealized gains (losses) on investments		(4,479,312	)
Net increase in net assets resulting from operations	$	731,825

¹  For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and are no longer offered by the Fund.

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

Statement of changes in net assets Wells Fargo Short Duration Government Bond Fund 13

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	5,211,137					$	10,707,842
Net realized gains (losses) on investments					(2,658,852	)					2,651,130
Net change in unrealized gains (losses) on investments					(1,820,460	)					149,912
Net increase in net assets resulting from operations					731,825						13,508,884
Distributions to shareholders from
Net investment income
Class A					(482,239	)					(920,262	)
Class B					(73	)1					(522	)
Class C					(107,027	)					(218,517	)
Class R6					(2,232,951	)					(4,283,248	)
Administrator Class					(1,023,620	)					(2,253,490	)
Institutional Class					(6,106,042	)					(11,646,830	)
Total distributions to shareholders					(9,951,952	)					(19,322,869	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,323,394			23,155,536			1,523,943			15,222,273
Class B		0	1		0	1		659			6,605
Class C		71,189			708,346			545,428			5,455,990
Class R6		1,737,750			17,246,862			3,676,017			36,835,469
Administrator Class		521,012			5,177,805			1,519,924			15,208,095
Institutional Class		12,401,212			123,287,150			31,387,349			313,806,941
					169,575,699						386,535,373
Reinvestment of distributions
Class A		44,389			439,894			81,077			809,810
Class B		7	1		68	1		50			499
Class C		9,832			97,621			19,633			196,421
Class R6		224,663			2,232,951			427,474			4,283,189
Administrator Class		100,790			1,000,455			219,291			2,193,923
Institutional Class		581,092			5,766,051			1,064,869			10,651,801
					9,537,040						18,135,643
Payment for shares redeemed
Class A		(2,274,307	)		(22,608,961	)		(2,024,553	)		(20,217,407	)
Class B		(4,044	)1		(40,138	)1		(6,594	)		(65,903	)
Class C		(422,562	)		(4,196,465	)		(993,927	)		(9,950,881	)
Class R6		(3,049,385	)		(30,326,841	)		(3,764,296	)		(37,736,319	)
Administrator Class		(1,573,138	)		(15,616,041	)		(5,170,008	)		(51,772,193	)
Institutional Class		(16,456,783	)		(163,632,970	)		(24,487,556	)		(244,923,927	)
					(236,421,416	)					(364,666,630	)
Net increase (decrease) in net assets resulting from capital share transactions					(57,308,677	)					40,004,386
Total increase (decrease) in net assets					(66,528,804	)					34,190,401
Net assets
Beginning of period					1,105,086,894						1,070,896,493
End of period				$	1,038,558,090					$	1,105,086,894
Undistributed (overdistributed) net investment income				$	(4,148,617	)				$	629,949

¹  For the period from September 1, 2016 to December 5, 2016. Effective at the close of business on December 5, 2016, Class B shares were converted to Class A shares and are no longer offered by the Fund.

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

14 Wells Fargo Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.96			$10.02			$10.08			$10.09			$10.35			$10.36
Net investment income		0.03			0.07			0.04			0.03			0.08	1		0.10
Net realized and unrealized gains (losses) on investments		(0.03	)		0.02			0.02			0.07			(0.14	)		0.09
Total from investment operations		0.00			0.09			0.06			0.10			(0.06	)		0.19
Distributions to shareholders from
Net investment income		(0.08	)		(0.15	)		(0.12	)		(0.11	)		(0.20	)		(0.20	)
Net asset value, end of period		$9.88			$9.96			$10.02			$10.08			$10.09			$10.35
Total return2		(0.02	)%		0.90	%		0.55	%		1.03	%		(0.63	)%		1.86	%
Ratios to average net assets (annualized)
Gross expenses		0.78	%		0.78	%		0.78	%		0.80	%		0.82	%		0.86	%
Net expenses		0.78	%		0.78	%		0.78	%		0.78	%		0.79	%		0.83	%
Net investment income		0.68	%		0.70	%		0.55	%		0.38	%		0.80	%		0.98	%
Supplemental data
Portfolio turnover rate		182	%		284	%		500	%		408	%		324	%		399	%
Net assets, end of period (000s omitted)		$58,399			$57,976			$62,504			$107,005			$126,316			$167,266

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 Short Duration Government Bond Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.98			$10.03			$10.10			$10.11			$10.37			$10.37
Net investment income (loss)		(0.01	)		(0.01	)		(0.03	)		(0.05	)		0.01	1		0.03
Net realized and unrealized gains (losses) on investments		(0.04	)		0.03			0.00	2		0.08			(0.15	)		0.09
Total from investment operations		(0.05	)		0.02			(0.03	)		0.03			(0.14	)		0.12
Distributions to shareholders from
Net investment income		(0.04	)		(0.07	)		(0.04	)		(0.04	)		(0.12	)		(0.12	)
Net asset value, end of period		$9.89			$9.98			$10.03			$10.10			$10.11			$10.37
Total return3		(0.49	)%		0.25	%		(0.30	)%		0.28	%		(1.37	)%		1.20	%
Ratios to average net assets (annualized)
Gross expenses		1.53	%		1.53	%		1.53	%		1.55	%		1.57	%		1.61	%
Net expenses		1.53	%		1.53	%		1.53	%		1.53	%		1.54	%		1.58	%
Net investment income (loss)		(0.07	)%		(0.05	)%		(0.20	)%		(0.37	)%		0.05	%		0.23	%
Supplemental data
Portfolio turnover rate		182	%		284	%		500	%		408	%		324	%		399	%
Net assets, end of period (000s omitted)		$23,841			$27,454			$31,910			$44,423			$63,126			$78,385

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

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

16 Wells Fargo Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS R6				2016			2015			2014			20131
Net asset value, beginning of period		$9.99			$10.05			$10.11			$10.13			$10.33
Net investment income		0.05			0.12			0.09	2		0.08	2		0.13	2
Net realized and unrealized gains (losses) on investments		(0.03	)		0.01			0.01			0.05			(0.15	)
Total from investment operations		0.02			0.13			0.10			0.13			(0.02	)
Distributions to shareholders from
Net investment income		(0.10	)		(0.19	)		(0.16	)		(0.15	)		(0.18	)
Net asset value, end of period		$9.91			$9.99			$10.05			$10.11			$10.13
Total return3		0.19	%		1.32	%		0.96	%		1.35	%		(0.17	)%
Ratios to average net assets (annualized)
Gross expenses		0.40	%		0.40	%		0.40	%		0.41	%		0.43	%
Net expenses		0.37	%		0.37	%		0.37	%		0.37	%		0.37	%
Net investment income		1.09	%		1.11	%		0.88	%		0.76	%		0.81	%
Supplemental data
Portfolio turnover rate		182	%		284	%		500	%		408	%		324	%
Net assets, end of period (000s omitted)		$221,221			$233,993			$231,878			$48,446			$2,983

¹  For the period from November 30, 2012 (commencement of class operations) to August 31, 2013

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Short Duration Government Bond Fund 17

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.98			$10.03			$10.10			$10.11			$10.36			$10.37
Net investment income		0.04			0.08			0.06			0.06	1		0.10	1		0.13
Net realized and unrealized gains (losses) on investments		(0.04	)		0.04			0.00	2		0.06			(0.13	)		0.09
Total from investment operations		0.00			0.12			0.06			0.12			(0.03	)		0.22
Distributions to shareholders from
Net investment income		(0.09	)		(0.17	)		(0.13	)		(0.13	)		(0.22	)		(0.23	)
Net asset value, end of period		$9.89			$9.98			$10.03			$10.10			$10.11			$10.36
Total return3		(0.03	)%		1.18	%		0.63	%		1.21	%		(0.34	)%		2.10	%
Ratios to average net assets (annualized)
Gross expenses		0.72	%		0.72	%		0.72	%		0.74	%		0.76	%		0.80	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.86	%		0.87	%		0.73	%		0.56	%		0.99	%		1.20	%
Supplemental data
Portfolio turnover rate		182	%		284	%		500	%		408	%		324	%		399	%
Net assets, end of period (000s omitted)		$111,126			$121,576			$156,669			$191,469			$234,808			$285,637

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.

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

18 Wells Fargo Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.98			$10.03			$10.10			$10.10			$10.36			$10.37
Net investment income		0.05			0.11			0.09	1		0.07			0.12			0.15
Net realized and unrealized gains (losses) on investments		(0.04	)		0.03			(0.01	)		0.08			(0.15	)		0.09
Total from investment operations		0.01			0.14			0.08			0.15			(0.03	)		0.24
Distributions to shareholders from
Net investment income		(0.10	)		(0.19	)		(0.15	)		(0.15	)		(0.23	)		(0.25	)
Net asset value, end of period		$9.89			$9.98			$10.03			$10.10			$10.10			$10.36
Total return2		0.06	%		1.37	%		0.81	%		1.50	%		(0.26	)%		2.28	%
Ratios to average net assets (annualized)
Gross expenses		0.45	%		0.45	%		0.45	%		0.47	%		0.49	%		0.53	%
Net expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		1.05	%		1.06	%		0.92	%		0.74	%		1.16	%		1.39	%
Supplemental data
Portfolio turnover rate		182	%		284	%		500	%		408	%		324	%		399	%
Net assets, end of period (000s omitted)		$623,973			$664,047			$587,835			$903,096			$1,051,693			$1,157,125

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.

Notes to financial statements (unaudited) Wells Fargo Short Duration Government Bond 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 Short Duration Government Bond Fund (the “Fund”) which is a diversified series of the Trust.

After the close of business on December 5, 2016, Class B shares of the Fund were converted to Class A shares and 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 interest rates. The primary risks

20 Wells Fargo Short Duration Government Bond Fund Notes to financial statements (unaudited)

associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

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

Security transactions and income recognition

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

As of August 31, 2016, the Fund had capital loss carryforwards which consist of $29,965,407 in short-term capital losses and $17,654,524 in long-term capital losses.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

∎ 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, 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 Duration Government Bond Fund 21

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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	372,776,653	$	0	$	372,776,653
Asset-backed securities		0		147,908,637		0		147,908,637
Non-agency mortgage-backed securities		0		54,384,623		0		54,384,623
U.S. Treasury securities		461,621,746		0		0		461,621,746
Short-term investments
Investment companies		13,247,375		0		0		13,247,375
		474,869,121		575,069,913		0		1,049,939,034
Futures contracts		54,399		0		0		54,399
Total assets	$	474,923,520	$	575,069,913	$	0	$	1,049,993,433
Liabilities
Futures contracts	$	11,391	$	0	$	0	$	11,391
Total liabilities	$	11,391	$	0	$	0	$	11,391

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, 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 February 28, 2017, the management fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

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

Administration fees

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

22 Wells Fargo Short Duration Government Bond Fund Notes to financial statements (unaudited)

servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:

	Class-level administration fee
Class A, Class B, Class C		0.16	%
Class R6		0.03
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through December 31, 2017 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.78% for Class A shares, 1.53% for Class C shares, 0.37% for Class R6 shares, 0.60% for Administrator Class shares, and 0.42% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

During the six months ended February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $967 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 $3,001 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 February 28, 2017, Funds Distributor received $808 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 short-term securities, for the six months ended February 28, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$1,844,350,590	$109,823,857	$1,826,662,538	$111,791,005

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 February 28, 2017, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

Notes to financial statements (unaudited) Wells Fargo Short Duration Government Bond Fund 23

At February 28, 2017, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at February 28, 2017		Unrealized gains (losses)
6-30-2017	JPMorgan	729 Long		2-Year U.S. Treasury Notes	$	157,760,156	$	(46,948	)
6-30-2017	JPMorgan	633 Short		5-Year U.S. Treasury Notes		74,506,078		77,923

The Fund had an average notional amount of $187,214,156 in long futures contracts and $72,181,656 in short futures contracts during the six months ended February 28, 2017. As of February 28, 2017, the Fund had segregated $525,000 as cash collateral for open futures contracts.

On February 28, 2017, the cumulative unrealized gains on futures contracts in the amount of $30,975 are reflected in net unrealized loss on investments on the Statement of Assets and Liabilities. The receivable and payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$54,399	$	(11,391	)	$	0	$	43,008

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of liabilities
Futures – variation margin	JPMorgan	$11,391	$	(11,391	)	$	0	$	0

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $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.

For the six months ended February 28, 2017, 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

24 Wells Fargo Short Duration Government Bond Fund Notes to financial statements (unaudited)

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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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.

Other information (unaudited) Wells Fargo Short Duration Government Bond 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 Short Duration Government Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 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 Short Duration Government Bond 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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

28 Wells Fargo Short Duration Government Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302027 04-17 SA220/SAR220 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo Short-Term 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	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	24
Other information	30
List of abbreviations	32

The views expressed and any forward-looking statements are as of February 28, 2017, 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 Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Bond Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which continued to

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 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.

Letter to shareholders (unaudited) Wells Fargo Short-Term Bond Fund 3

transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

4 Wells Fargo Short-Term Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Jay N. Mueller, CFA^®

Noah M. Wise, CFA^®

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SSTVX)	8-31-1999		(0.08	)		0.90		2.37		1.96		1.31		2.58		0.82		0.73
Class C (WFSHX)	3-31-2008		0.20			0.55		1.80		1.20		0.55		1.80		1.57		1.48
Institutional Class (SSHIX)	8-31-1999		–			–		–		2.20		1.62		2.89		0.49		0.49
Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index4	–		–			–		–		1.02		0.92		2.37		–		–

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. 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. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below investment- grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The Fund is exposed to high-yield securities risk and mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Short-Term Bond Fund 5

Ten largest holdings (%) as of February 28, 20175
Bellsouth Corporation, 4.40%, 4-26-2021	1.08
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-INN Class A, 1.69%, 6-15-2029	0.99
Dell Equipment Finance Trust Series 2016-1 Class A2, 1.43%, 9-24-2018	0.89
Deutsche Annington Finance BV, 3.20%, 10-2-2017	0.79
Citibank Credit Card Issuance Trust Series 2017-A2 Class A2, 1.74%, 1-19-2021	0.79
Murray Street Investment Trust I, 4.65%, 3-9-2017	0.79
GM Financial Automobile Leasing Trust Series 2016-1 Class A3, 1.64%, 7-20-2019	0.79
Enterprise Fleet Financing Trust Series 2017-1 Class A2, 2.13%, 7-20-2022	0.79
Iowa Finance Authority Midwestern Disaster Area Project, 0.85%, 4-1-2022	0.79
Baptist Memorial Health Care Corporation, 1.30, 3-13-2017	0.79

Portfolio allocation as of February 28, 2017⁶

¹  Effective June 20, 2008, Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Historical performance shown for Class A shares through June 19, 2008, includes Advisor Class expenses. Historical performance shown for Class C shares prior to their inception reflects the performance of the former Investor Class shares, adjusted to include the higher expenses applicable to Class C shares.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at 0.72% for Class A, 1.47% for Class C, and 0.48% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

⁴  The Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index (formerly known as Barclays U.S. 1-3 Year Government/Credit Bond Index) is the one- to three-year component of the Bloomberg Barclays U.S. Government/Credit Bond Index (formerly known as Barclays U.S. Government/Credit Bond Index) that includes securities in the Government and Credit Indexes. The Government Index includes Treasuries (that is, public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (that is, publicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. You cannot invest directly in an index.

⁵  The 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 Short-Term Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,003.42	$	3.64		0.72	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.58	$	3.67		0.72	%
Class C
Actual	$	1,000.00	$	999.70	$	7.41		1.47	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.80	$	7.48		1.47	%
Institutional Class
Actual	$	1,000.00	$	1,004.62	$	2.43		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.79	$	2.45		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—February 28, 2017 (unaudited) Wells Fargo Short-Term Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 8.02%
FDIC Series 2010-R1 Class A 144A		2.18	%		5-25-2050	$	1,591,377	$	1,596,126
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		939,818		928,222
FHLMC ±		2.68			4-1-2038		423,987		447,750
FHLMC ±		2.77			4-1-2032		44,168		46,479
FHLMC ±		3.00			7-1-2029		2,612		2,717
FHLMC		3.00			2-15-2024		397,173		401,776
FHLMC ±		3.06			5-1-2026		52,621		54,682
FHLMC ±		3.16			9-1-2031		6,405		6,512
FHLMC		3.50			6-15-2038		630,474		646,085
FHLMC		4.50			5-15-2018		41,526		42,176
FHLMC		6.00			10-1-2021		279,142		297,836
FHLMC		8.50			9-1-2017		62		62
FHLMC		9.00			8-1-2018		1,294		1,302
FHLMC		9.00			6-1-2019		13,083		13,257
FHLMC		9.00			10-1-2019		73,883		78,120
FHLMC		9.50			12-1-2022		28,065		29,845
FHLMC		10.50			11-1-2017		50		50
FHLMC		10.50			8-1-2018		13,699		13,872
FHLMC		10.50			2-1-2019		452		466
FHLMC		10.50			4-1-2019		238		247
FHLMC		10.50			5-1-2019		190		202
FHLMC		10.50			6-1-2019		1,263		1,332
FHLMC		10.50			7-1-2019		563		573
FHLMC Series 2597 Series AE		5.50			4-15-2033		137,386		149,331
FHLMC Series 2631 Class LC		4.50			6-15-2018		97,263		98,821
FHLMC Series 2642 Class AR		4.50			7-15-2023		247,484		263,214
FHLMC Series 2656 Class BG		5.00			10-15-2032		258,102		260,480
FHLMC Series 2958 Class QD		4.50			4-15-2020		408,604		414,859
FHLMC Series 3266 Class D		5.00			1-15-2022		460,756		470,773
FHLMC Series 3609 Class LA		4.00			12-15-2024		194,455		198,325
FHLMC Series 3778 Class BM		3.50			8-15-2028		127,612		128,709
FHLMC Series 3794 Class LK		3.00			2-15-2024		309,345		310,538
FHLMC Series 3855 Class HL		3.50			2-15-2026		203,167		208,333
FHLMC Series 3920 Class AB		3.00			9-15-2025		634,202		645,556
FHLMC Series T-42 Class A6		9.50			2-25-2042		384,789		476,881
FHLMC Series T-57 Class 2A1 ±		3.40			7-25-2043		39,884		43,011
FHLMC Series T-59 Class 2A1 ±		3.22			10-25-2043		1,105,029		1,085,468
FNMA ±		1.88			8-1-2034		490,320		496,748
FNMA ±		2.70			11-1-2031		47,111		49,389
FNMA		2.73			10-1-2017		2,906,539		2,911,289
FNMA ±		2.81			8-1-2036		2,115,793		2,241,127
FNMA ±		2.92			10-1-2036		1,966,785		2,054,488
FNMA		2.93			12-1-2017		2,259,451		2,270,123
FNMA ±		3.00			7-1-2036		1,446,419		1,533,200
FNMA ±		3.08			9-1-2040		1,404,511		1,482,536
FNMA		3.19			12-1-2017		1,222,917		1,229,347
FNMA		3.34			9-1-2017		1,350,038		1,351,834
FNMA		3.74			5-1-2018		2,173,469		2,211,642
FNMA		4.00			6-25-2026		826,815		873,722
FNMA		4.00			8-25-2037		648,557		677,923

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

8 Wells Fargo Short-Term Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.50	%		8-25-2034	$	911,455	$	935,042
FNMA		6.00			4-1-2021		174,321		182,389
FNMA		6.00			3-1-2033		580,816		673,420
FNMA		6.28			11-1-2018		179,219		180,345
FNMA		6.50			8-1-2031		318,714		367,275
FNMA		7.60			8-1-2018		186,498		186,657
FNMA		8.00			4-1-2017		577		578
FNMA		8.00			9-1-2019		882		884
FNMA		8.00			9-1-2023		2,080		2,122
FNMA		8.33			7-15-2020		11,934		12,654
FNMA		8.50			7-1-2018		1,525		1,531
FNMA		8.50			2-1-2023		6,163		6,218
FNMA		9.00			2-15-2020		524		565
FNMA		9.00			11-1-2024		69,268		76,130
FNMA		11.00			10-15-2020		4,985		5,090
FNMA Grantor Trust Series 2002-T12 Class A4		9.50			5-25-2042		644,503		787,097
FNMA Series 1989-29 Class Z		10.00			6-25-2019		41,607		44,685
FNMA Series 1989-63 Class Z		9.40			10-25-2019		10,860		11,560
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		54,438		65,266
FNMA Series 2003-15 Class CB		5.00			3-25-2018		169,077		171,035
FNMA Series 2003-41 Class PE		5.50			5-25-2023		600,780		638,384
FNMA Series 2003-W11 Class A1 ±		4.29			6-25-2033		15,663		16,390
FNMA Series 2003-W6 Class 6A ±		3.43			8-25-2042		958,253		1,010,989
FNMA Series 2003-W6 Class PT4 ±		8.54			10-25-2042		86,287		109,235
FNMA Series 2004-32 Class AY		4.00			5-25-2019		115,982		118,820
FNMA Series 2004-90 Class XY		4.00			9-25-2034		370,385		377,176
FNMA Series 2008-53 Class CA		5.00			7-25-2023		353,993		366,768
FNMA Series 2009-M01 Class A2		4.29			7-25-2019		1,123,173		1,171,113
FNMA Series 2011-133 Class A		3.50			6-25-2029		726,720		747,295
FNMA Series 2011-17 Class ED		3.50			7-25-2025		153,216		155,710
FNMA Series 2011-39 Class CA		3.00			5-25-2024		198,033		200,583
FNMA Series 2011-66 Class BE		3.00			3-25-2025		320,616		323,955
FNMA Series 2011-71 Class DJ		3.00			3-25-2025		538,125		542,553
FNMA Series G95-2 Class IO ±(c)		10.00			5-25-2020		21,697		512
GNMA		4.00			8-16-2023		220,986		226,167
GNMA		4.50			4-20-2035		270,104		283,060
GNMA		8.00			12-15-2023		21,901		24,669
GNMA		9.00			11-15-2017		785		788
GNMA		9.00			11-15-2024		11,956		13,007
GNMA		10.00			2-20-2018		269		270
GNMA Series 2010-6 Class EA		4.00			9-16-2023		154,771		156,359
GNMA Series 2011-82 Class HT		2.00			7-16-2036		45,414		45,476
GNMA Series 2012-19 Class A		1.83			3-16-2039		1,674,140		1,670,700
Total Agency Securities (Cost $40,362,467)									40,657,878
Asset-Backed Securities: 11.92%
Ally Auto Receivables Trust Series 2015-2 Class A2A		0.98			3-15-2018		125,706		125,701
BMW Vehicle Lease Trust Series 2015-2 Class A2A		1.07			1-22-2018		1,721,921		1,721,766
CarMax Auto Owner Trust Series 2015-3 Class A2A		1.10			11-15-2018		735,078		734,878
Citibank Credit Card Issuance Trust Series 2017-A2 Class A2		1.74			1-19-2021		4,000,000		4,006,080

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
CNH Equipment Trust Series 2015-A Class A3		1.30	%		4-15-2020	$	1,220,405	$	1,219,749
CNH Equipment Trust Series 2015-C Class A2A		1.10			12-17-2018		1,383,228		1,382,365
Dell Equipment Finance Trust Series 2015-2 Class A2A 144A		1.42			12-22-2017		181,034		181,064
Dell Equipment Finance Trust Series 2016-1 Class A2 144A		1.43			9-24-2018		4,525,000		4,523,247
Education Loan Asset-Backed Trust Series 2013-1 Class A1 144A±		1.57			6-25-2026		2,152,272		2,154,960
Enterprise Fleet Financing Trust Series 2017-1 Class A2 144A		2.13			7-20-2022		4,000,000		4,000,678
Ford Credit Auto Lease Trust Series 2015-B Class A2A		1.04			5-15-2018		1,413,781		1,413,525
Ford Credit Auto Lease Trust Series 2016-A Class A2A		1.42			11-15-2018		2,646,374		2,647,709
GM Financial Automobile Leasing Trust Series 2015-2 Class A2A		1.18			4-20-2018		1,068,053		1,067,878
GM Financial Automobile Leasing Trust Series 2016-1 Class A3		1.64			7-20-2019		4,000,000		4,002,817
GM Financial Automobile Leasing Trust Series 2016-2 Class A2A		1.28			10-22-2018		2,615,465		2,612,766
GMF Floorplan Owner Revolving Trust Series 2015-1 Class A1 144A		1.65			5-15-2020		2,050,000		2,050,281
Home Equity Asset Trust Series 2003-6 Class M1 ±		2.27			2-25-2034		1,128,882		1,081,467
Hyundai Auto Lease Securitization Trust Series 2015-B Class A2A 144A		0.95			12-15-2017		148,548		148,539
Hyundai Auto Lease Securitization Trust Series 2016-A Class A3 144A		1.60			7-15-2019		1,100,000		1,101,370
Hyundai Auto Receivables Trust Series 2015-C Class A2A		0.99			11-15-2018		795,304		794,780
John Deere Owner Trust Series 2016-A Class A2		1.15			10-15-2018		1,991,262		1,990,867
John Deere Owner Trust Series 2016-A Class A3		1.36			4-15-2020		2,000,000		1,994,424
Kubota Credit Owner Trust Series 2016-1A Class A2 144A		1.25			4-15-2019		2,080,000		2,075,347
Mercedes-Benz Auto Receivables Trust Series 2015-1 Class A2A		0.82			6-15-2018		1,029,242		1,028,920
MMAF Equipment Finance LLC Series 2016-AA Class A2 144A		1.39			12-17-2018		3,720,146		3,720,271
MMAF Equipment Finance LLC Series 2015-AA Class A3 144A		1.39			10-16-2019		2,362,311		2,359,942
Nissan Auto Lease Trust Series 2015-B Class A2A		1.18			12-15-2017		1,292,731		1,292,779
Toyota Auto Receivables Owner Trust Series 2016-A Class AA2		1.03			7-16-2018		1,511,815		1,511,370
Volvo Financial Equipment LLC Series 2016-1A Class A2 144A		1.44			10-15-2018		1,308,097		1,308,537
Volvo Financial Equipment LLC Series 2016-1A Class A3 144A		1.67			2-18-2020		1,580,000		1,580,510
World Omni Auto Receivables Trust Series 2015-A Class A2A		1.06			5-15-2018		1,714,333		1,713,688
World Omni Auto Receivables Trust Series 2016-B Class A2		1.10			1-15-2020		2,940,000		2,932,472
Total Asset-Backed Securities (Cost $60,564,705)									60,480,747
Corporate Bonds and Notes: 37.70%
Consumer Discretionary: 1.75%
Media: 1.75%
Charter Communications Operating LLC		3.58			7-23-2020		3,000,000		3,084,000
Interpublic Group		2.25			11-15-2017		1,900,000		1,905,514
NBCUniversal Enterprise Incorporated 144A		5.25			12-31-2049		1,655,000		1,746,025
Time Warner Cable Incorporated		4.88			3-15-2020		2,010,000		2,155,552
									8,891,091
Consumer Staples: 1.19%
Beverages: 0.60%
Anheuser-Busch InBev Finance Incorporated		2.65			2-1-2021		3,000,000		3,031,671
Food Products: 0.59%
Kraft Heinz Foods Company		2.00			7-2-2018		3,000,000		3,007,707
Energy: 3.91%
Energy Equipment & Services: 0.62%
Spectra Energy Capital Company		6.20			4-15-2018		3,000,000		3,136,767

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

10 Wells Fargo Short-Term Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels: 3.29%
BP AMI Leasing Incorporated 144A		5.52	%		5-8-2019	$	825,000	$	887,284
ConocoPhillips Company		2.88			11-15-2021		1,990,000		2,008,612
DCP Midstream Operating Company		2.50			12-1-2017		3,000,000		3,000,000
Enable Midstream Partner LP		2.40			5-15-2019		3,000,000		2,976,342
Energy Transfer Partners LP		2.50			6-15-2018		2,000,000		2,014,244
Plains All American Pipeline LP		8.75			5-1-2019		3,000,000		3,393,786
Sabine Pass Liquefaction LLC		6.25			3-15-2022		1,210,000		1,364,977
Williams Partners LP		5.25			3-15-2020		1,000,000		1,082,243
									16,727,488
Financials: 18.68%
Banks: 5.36%
Bank of America Corporation		2.15			11-9-2020		2,000,000		1,982,470
Bank of America Corporation		5.30			3-15-2017		2,095,000		2,097,994
Bank of America Corporation		5.70			5-2-2017		1,840,000		1,852,575
Citigroup Incorporated		2.50			7-29-2019		2,235,000		2,256,469
Fifth Third Bank		2.30			3-15-2019		1,845,000		1,859,422
JP Morgan Chase		1.65			9-23-2019		2,000,000		1,993,486
KeyBank Corporation		4.63			6-15-2018		3,180,000		3,285,163
PNC Bank NA		1.50			2-23-2018		3,000,000		3,000,564
Rabobank Nederland NV		2.75			1-10-2022		3,000,000		3,007,641
Regions Bank		2.25			9-14-2018		2,000,000		2,008,274
Santander Bank		2.70			5-24-2019		1,000,000		1,003,796
Santander Bank		8.75			5-30-2018		2,640,000		2,848,547
									27,196,401
Capital Markets: 1.69%
Goldman Sachs Group Incorporated		6.15			4-1-2018		2,965,000		3,105,541
Morgan Stanley		1.88			1-5-2018		2,045,000		2,051,622
Morgan Stanley		2.20			12-7-2018		2,000,000		2,010,752
Morgan Stanley		2.45			2-1-2019		840,000		847,494
S&P Global Incorporated		2.50			8-15-2018		550,000		554,644
									8,570,053
Consumer Finance: 6.25%
Ally Financial Incorporated		3.25			11-5-2018		2,930,000		2,981,275
American Express Centurion Bank		6.00			9-13-2017		3,000,000		3,073,767
American Express Credit Corporation %%		2.20			3-3-2020		1,235,000		1,233,716
Daimler Finance NA LLC 144A		1.65			3-2-2018		3,000,000		2,999,922
Discover Financial Services Company		6.45			6-12-2017		3,000,000		3,038,946
Ford Motor Credit Company LLC		2.94			1-8-2019		1,335,000		1,356,895
Ford Motor Credit Company LLC		5.00			5-15-2018		3,000,000		3,112,833
General Motors Financial Company		3.15			1-15-2020		3,000,000		3,057,426
Harley-Davidson Financial Services Incorporated 144A		2.70			3-15-2017		3,000,000		3,001,743
Hyundai Capital America Company 144A		2.40			10-30-2018		3,000,000		3,010,566
Nissan Motor Acceptance Corporation 144A		2.00			3-8-2019		2,000,000		2,000,698
Toll Brothers Finance Corporation		8.91			10-15-2017		2,710,000		2,818,400
									31,686,187

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 0.79%
Murray Street Investment Trust I		4.65	%		3-9-2017	$	4,000,000	$	4,003,040
Insurance: 4.59%
AXIS Specialty Finance LLC		5.88			6-1-2020		1,794,000		1,976,947
Ironshore Holding Incorporated 144A		8.50			5-15-2020		2,820,000		3,221,173
Lincoln National Corporation		8.75			7-1-2019		744,000		853,993
Metropolitan Life Global Funding Incorporated 144A		1.55			9-13-2019		1,820,000		1,797,942
Metropolitan Life Global Funding Incorporated 144A		1.75			12-19-2018		2,000,000		1,999,638
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		3,070,000		3,108,921
Protective Life Global Funding 144A		1.56			9-13-2019		1,295,000		1,274,983
Provident Companies Incorporated		7.00			7-15-2018		2,525,000		2,690,701
Reinsurance Group of America		5.63			3-15-2017		3,000,000		3,004,755
Reliance Standard Life Insurance 144A		2.15			10-15-2018		1,390,000		1,394,548
Reliance Standard Life Insurance 144A		2.38			5-4-2020		2,000,000		1,984,036
									23,307,637
Health Care: 1.22%
Biotechnology: 0.68%
Biogen Incorporated		6.88			3-1-2018		3,262,000		3,433,924
Health Care Providers & Services: 0.27%
UnitedHealth Group Incorporated		1.45			7-17-2017		1,375,000		1,376,387
Pharmaceuticals: 0.27%
Mylan NV Company		2.50			6-7-2019		1,360,000		1,360,316
Industrials: 2.05%
Aerospace & Defense: 0.63%
L-3 Communications Corporation		5.20			10-15-2019		3,000,000		3,224,973
Airlines: 0.76%
Delta Air Lines Incorporated		4.75			11-7-2021		2,050,042		2,147,419
US Airways Incorporated Series B (i)		8.50			10-22-2018		1,686,478		1,711,775
									3,859,194
Commercial Services & Supplies: 0.44%
Boardwalk Pipelines LLC		5.20			6-1-2018		2,179,000		2,246,270
Transportation Infrastructure: 0.22%
TTX Company 144A		2.25			2-1-2019		1,095,000		1,096,065
Information Technology: 3.33%
IT Services: 0.40%
Fidelity National Information Services Incorporated		2.00			4-15-2018		2,000,000		2,007,778
Semiconductors & Semiconductor Equipment: 0.67%
KLA-Tencor Corporation		2.38			11-1-2017		1,365,000		1,370,143
KLA-Tencor Corporation		3.38			11-1-2019		2,000,000		2,053,256
									3,423,399

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

12 Wells Fargo Short-Term Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Software: 1.13%
CA Incorporated		3.60	%		8-1-2020	$	2,000,000	$	2,067,728
CA Incorporated		5.38			12-1-2019		2,000,000		2,169,670
Microsoft Corporporation		2.38			2-6-2022		1,500,000		1,506,072
									5,743,470
Technology Hardware, Storage & Peripherals: 1.13%
EMC Corporation		2.65			6-1-2020		3,000,000		2,923,827
Hewlett Packard Enterprise Company		2.45			10-5-2017		2,785,000		2,797,379
									5,721,206
Materials: 1.03%
Chemicals: 0.38%
CF Industries Incorporated		6.88			5-1-2018		1,830,000		1,920,128
Construction Materials: 0.65%
Martin Marietta Material ±		2.10			6-30-2017		3,310,000		3,316,292
Real Estate: 1.14%
Equity REITs: 1.14%
American Tower Corporation		4.50			1-15-2018		2,700,000		2,763,412
Realty Income Corporation		2.00			1-31-2018		3,000,000		3,010,431
									5,773,843
Telecommunication Services: 1.28%
Diversified Telecommunication Services: 1.28%
AT&T Incorporated		2.45			6-30-2020		1,000,000		1,001,504
Bellsouth Corporation 144A		4.40			4-26-2021		5,465,000		5,494,538
									6,496,042
Utilities: 2.12%
Electric Utilities: 1.58%
Monongahela Power Company 144A		5.70			3-15-2017		3,000,000		3,004,083
NextEra Energy Capital Holdings Incorporated		2.06			9-1-2017		2,725,000		2,735,311
NV Energy Incorporated		6.25			11-15-2020		2,000,000		2,257,362
									7,996,756
Multi-Utilities: 0.54%
Black Hills Corporation		2.50			1-11-2019		1,355,000		1,363,669
Dominion Resources Incorporated		2.96			7-1-2019		1,365,000		1,381,682
									2,745,351
Total Corporate Bonds and Notes (Cost $190,353,216)									191,299,436
Municipal Obligations: 8.30%
California: 1.96%
Los Angeles CA Municipal Improvement Refunding Bond Convention Center Series A (Miscellaneous Revenue)		2.34			11-1-2018		1,380,000		1,398,257
Roman Catholic Diocese of Oakland CA (Miscellaneous Revenue)		6.04			11-1-2019		2,435,000		2,565,346

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
Sacramento CA City Financing Authority (Miscellaneous Revenue, National Insured) ±		1.27	%		7-15-2027	$	2,500,000	$	2,489,025
San Bernardino County CA Financing Authority (Miscellaneous Revenue, National Insured) ¤		0.00			8-1-2017		3,500,000		3,479,805
									9,932,433
Connecticut: 0.20%
West Haven CT Series A (GO Revenue)		2.21			3-15-2017		1,000,000		1,000,270
Florida: 0.32%
Escambia County FL HFA Acts Retirement Life Communities Incorporated Series B (Health Revenue, AGC Insured, TD Bank NA SPA) ø		0.74			11-15-2029		1,635,000		1,635,000
Illinois: 0.93%
Chicago IL (Tax Revenue)		6.30			12-1-2021		1,365,000		1,481,680
State of Illinois (Miscellaneous Revenue)		5.00			5-1-2019		3,070,000		3,214,321
									4,696,001
Iowa: 0.79%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.85			4-1-2022		4,000,000		4,000,000
Michigan: 0.39%
Michigan Finance Authority Series D5 (Water & Sewer Revenue)		2.85			7-1-2019		2,000,000		1,974,500
New Jersey: 1.24%
New Jersey EDA Series B (Miscellaneous Revenue, AGM Insured) ¤		0.00			2-15-2018		3,000,000		2,942,220
New Jersey EDA Series B (Miscellaneous Revenue, AGM Insured) ¤		0.00			2-15-2019		3,500,000		3,332,910
									6,275,130
New York: 0.39%
Nassau County NY Series D (GO Revenue)		1.40			12-15-2017		2,000,000		2,004,140
Oregon: 0.51%
Portland OR Taxable Pension (GO Revenue) (m)(n)±		0.84			6-1-2019		2,650,000		2,610,250
Rhode Island: 0.32%
Rhode Island EDA (Industrial Development Revenue, AGM Insured)		7.75			11-1-2020		1,500,000		1,635,390
Tennessee: 0.79%
Baptist Memorial Health Care Corporation (Health Revenue)		1.30			3-13-2017		4,000,000		4,000,000
Wisconsin: 0.46%
Wisconsin Healthcare PFA (Housing Revenue, Citizens Bank LOC)		2.63			11-1-2019		2,365,000		2,361,334
Total Municipal Obligations (Cost $41,943,078)									42,124,448
Non-Agency Mortgage-Backed Securities: 12.02%
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		3.25			10-20-2032		17,890		17,937
CCG Receivables Trust Series 2015-1 Class A2 144A		1.46			11-14-2018		1,172,955		1,172,436
CCG Receivables Trust Series 2015-1 Class A3 144A		1.92			1-17-2023		2,500,000		2,501,329
CD Commercial Mortgage Trust Series 2017-CD3 Class A1		1.97			2-10-2050		1,705,000		1,702,416
Commercial Mortgage Trust Series 2014-BBG Class A 144A±		1.57			3-15-2029		2,100,000		2,103,295

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

14 Wells Fargo Short-Term Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Commercial Mortgage Trust Series 2014-LC17 Class A2		3.16	%		10-10-2047	$	2,300,000	$	2,358,601
Commercial Mortgage Trust Series 2014-UBS3 Class A2		2.84			6-10-2047		600,000		610,628
Commercial Mortgage Trust Series 2015CR27 Class A1		1.58			10-10-2048		2,509,236		2,495,576
ContiMortgage Home Equity Trust Series 1996-2 Class IO ±(i)		0.00			7-15-2027		688,316		10,858
Cosmopolitan Hotel Trust Series 2016 Class A 144A±		2.17			11-15-2033		2,185,000		2,206,164
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		2.39			6-19-2031		121,367		110,647
Credit Suisse Mortgage Trust Series 2007-C3 Class A4 ±		5.67			6-15-2039		1,865,162		1,869,455
Drexel Burnham Lambert CMO Trust Series T Class 4		8.45			9-20-2019		5,504		5,564
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.90			9-25-2033		404,625		392,156
Equity Mortgage Trust Series 2014-INNS Class A 144A±		1.63			5-8-2031		2,949,415		2,952,182
Golden National Mortgage Asset-Backed Certificates Series 1998-GN1 Class M2 (i)(s)		1.00			2-25-2027		34,322		34,257
GS Mortgage Securities Trust Series 2010-C1 Class A2 144A		4.59			8-10-2043		2,610,000		2,774,760
GS Mortgage Securities Trust Series 2013-GC16 Class A2		3.03			11-10-2046		2,315,000		2,357,306
GS Mortgage Securities Trust Series 2014-GSFL Class A 144A±		1.70			7-15-2031		1,022,516		1,022,371
GS Mortgage Securities Trust Series 2016-GS3 Class A1		1.43			10-10-2049		2,585,353		2,552,643
GS Mortgage Securities Trust Series 2016-ICE2 Class A 144A±		2.70			2-15-2033		1,950,000		1,967,733
GSMPS Mortgage Loan Trust Series 1998-1 Class A 144A±		8.00			9-19-2027		216,709		221,659
GSMPS Mortgage Loan Trust Series 2006-RP2 Class 1AF1 144A±		1.18			4-25-2036		929,388		766,617
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL ±		0.93			6-12-2047		2,653,346		2,615,566
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class AM ±		5.46			1-15-2049		3,300,000		3,293,634
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-INN Class A 144A±		1.69			6-15-2029		5,000,000		5,004,699
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-PHH Class A 144A±		1.97			8-15-2027		3,000,000		2,999,945
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-FL7 Class A 144A±		2.02			5-15-2028		1,434,546		1,432,127
JPMorgan Chase Commercial Mortgage Securities Trust Series 2016-JP3 Class A1		1.46			8-15-2049		2,273,003		2,243,325
Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C6 Class A4 ±		5.86			7-15-2040		1,565,208		1,571,798
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.97			10-25-2032		5,567		5,499
Morgan Stanley BAML Trust Series 2014-C15 Class A2		2.98			4-15-2047		2,740,000		2,793,167
Morgan Stanley Capital I Trust Series 2007-IQ Class A4		5.81			12-12-2049		1,715,731		1,732,802
Morgan Stanley Capital I Trust Series 2007-LQ16 Class AM ±		6.05			12-12-2049		25,000		25,500
Morgan Stanley Capital I Trust Series 2016-C30 Class A1		1.39			9-15-2049		1,899,651		1,873,997
SBA Tower Trust Series 2014-1A Class C 144A		2.90			10-15-2044		3,000,000		3,016,572
Wilshire Funding Corporation Series 1996-3 Class M2 ±		7.14			8-25-2032		81,560		79,148
Wilshire Funding Corporation Series 1996-3 Class M3 ±		7.14			8-25-2032		86,727		82,438
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12-28-2037		22,493		22,543
Total Non-Agency Mortgage-Backed Securities (Cost $61,574,374)									60,999,350
	Dividend yield					Shares
Preferred Stocks: 0.27%
Financials: 0.27%
Banks: 0.27%
Huntington Bancshares (a)(i)±		5.01					80,000		1,357,459
Total Preferred Stocks (Cost $1,958,484)									1,357,459
	Interest rate					Principal
Yankee Corporate Bonds and Notes: 17.57%
Consumer Discretionary: 0.58%
Media: 0.58%
British Sky Broadcasting Group plc 144A		6.10			2-15-2018	$	2,838,000		2,952,510

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Consumer Staples: 1.20%
Beverages: 0.66%
Suntory Holdings Limited 144A		1.65	%		9-29-2017	$	3,330,000	$	3,332,334
Food & Staples Retailing: 0.54%
Delhaize Group SA		6.50			6-15-2017		2,730,000		2,765,348
Energy: 1.03%
Oil, Gas & Consumable Fuels: 1.03%
Korea National Oil Corporation 144A		2.75			1-23-2019		3,000,000		3,032,479
TransCanada PipeLines Limited		1.63			11-9-2017		2,210,000		2,211,319
									5,243,798
Financials: 10.28%
Banks: 7.65%
Banco de Credito del Peru 144A		2.25			10-25-2019		1,500,000		1,490,625
BNP Paribas SA		2.38			9-14-2017		1,300,000		1,307,254
BPCE SA		1.61			7-25-2017		3,000,000		2,999,973
Canadian Imperial Bank of Commerce		1.60			9-6-2019		2,085,000		2,065,165
Commonwealth Bank of Australia 144A«		1.75			11-7-2019		1,750,000		1,732,915
Credit Suisse		6.00			2-15-2018		1,500,000		1,558,511
Credit Suisse Group Funding Limited		3.13			12-10-2020		2,110,000		2,118,659
Danske Bank 144A		1.65			9-6-2019		3,000,000		2,962,674
Experian Finance plc 144A		2.38			6-15-2017		3,800,000		3,808,938
ING Bank NV 144A		1.80			3-16-2018		3,000,000		3,001,971
Lloyds Bank plc		2.00			8-17-2018		1,000,000		1,003,432
Macquarie Bank Limited 144A		2.85			7-29-2020		3,000,000		3,020,484
Mitsubishi UFJ Trust and Banking Corporation 144A		2.45			10-16-2019		3,000,000		3,007,263
Santander UK plc		2.50			3-14-2019		2,750,000		2,773,394
Svenska Handelsbanken AB		1.50			9-6-2019		2,605,000		2,567,488
Toronto Dominion Bank		1.45			9-6-2018		3,385,000		3,380,610
									38,799,356
Capital Markets: 0.43%
Brookfield Asset Management Incorporated		5.80			4-25-2017		2,195,000		2,208,295
Consumer Finance: 0.58%
Corporation Andina De Fomento		2.13			9-27-2021		3,000,000		2,957,670
Diversified Financial Services: 1.03%
AerCap Ireland Capital Limited		2.75			5-15-2017		3,470,000		3,478,612
Deutsche Bank AG (London)		6.00			9-1-2017		1,700,000		1,735,598
									5,214,210
Insurance: 0.59%
QBE Insurance Group Limited 144A		2.40			5-1-2018		2,985,000		2,986,370
Health Care: 1.13%
Pharmaceuticals: 1.13%
Actavis Funding SCS		2.35			3-12-2018		3,000,000		3,021,321
Perrigo Company plc		2.30			11-8-2018		2,710,000		2,714,379
									5,735,700

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

16 Wells Fargo Short-Term Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 0.37%
Transportation Infrastructure: 0.37%
Asciano Finance Limited 144A		4.63	%		9-23-2020	$	1,821,000	$	1,893,117
Information Technology: 0.60%
Semiconductors & Semiconductor Equipment: 0.60%
TSMC Global Limited 144A		1.63			4-3-2018		3,035,000		3,026,325
Real Estate: 1.19%
Real Estate Management & Development: 1.19%
Deutsche Annington Finance BV 144A		3.20			10-2-2017		4,000,000		4,031,000
Korea Land & Housing Corporation 144A		1.88			8-2-2017		2,000,000		1,999,822
									6,030,822
Utilities: 1.19%
Independent Power & Renewable Electricity Producers: 0.59%
TransAlta Corporation		1.90			6-3-2017		3,000,000		2,998,830
Multi-Utilities: 0.60%
Korea Western Power Company 144A		3.13			5-10-2017		3,000,000		3,006,381
Total Yankee Corporate Bonds and Notes (Cost $89,175,523)									89,151,066
	Yield					Shares
Short-Term Investments: 4.26%
Investment Companies: 4.14%
Securities Lending Cash Investment LLC (l)(r)(u)		0.84					1,690,916		1,691,085
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.48					19,296,293		19,296,293
									20,987,378
						Principal
U.S. Treasury Securities: 0.12%
U.S. Treasury Bill #(z)		0.40			3-16-2017	$	625,000		624,890
Total Short-Term Investments (Cost $21,612,043)									21,612,268

Total investments in securities (Cost $507,543,890) *	100.06	%		507,682,652
Other assets and liabilities, net	(0.06	)		(291,520	)
Total net assets	100.00	%	$	507,391,132

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term Bond Fund 17

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

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

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

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

(i) Illiquid security

¤ 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.

(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.

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

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

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

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

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

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

# 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 $507,543,890 and unrealized gains (losses) consists of:

Gross unrealized gains	$	2,342,055
Gross unrealized losses		(2,203,293	)
Net unrealized gains	$	138,762

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

18 Wells Fargo Short-Term Bond Fund Statement of assets and liabilities—February 28, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $1,655,837 of securities loaned), at value (cost $486,556,512)	$	486,695,274
In affiliated securities, at value (cost $20,987,378)		20,987,378
Total investments, at value (cost $507,543,890)		507,682,652
Cash		184
Principal paydown receivable		12,719
Receivable for Fund shares sold		332,405
Receivable for interest		3,611,199
Receivable for daily variation margin on open futures contracts		20,453
Receivable for securities lending income		98
Prepaid expenses and other assets		28,868
Total assets		511,688,578
Liabilities
Dividends payable		129,134
Payable for investments purchased		1,233,716
Payable for Fund shares redeemed		954,908
Payable upon receipt of securities loaned		1,691,022
Payable for daily variation margin on open futures contracts		19,224
Management fee payable		118,504
Distribution fee payable		7,299
Administration fees payable		47,002
Accrued expenses and other liabilities		96,637
Total liabilities		4,297,446
Total net assets	$	507,391,132
NET ASSETS CONSIST OF
Paid-in capital	$	507,741,977
Undistributed net investment income		39,798
Accumulated net realized losses on investments		(615,029	)
Net unrealized gains on investments		224,386
Total net assets	$	507,391,132
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	243,711,943
Shares outstanding – Class A1		27,845,949
Net asset value per share – Class A		$8.75
Maximum offering price per share – Class A2		$8.93
Net assets – Class C	$	12,528,734
Shares outstanding – Class C1		1,433,227
Net asset value per share – Class C		$8.74
Net assets – Institutional Class	$	251,150,455
Shares outstanding – Institutional Class1		28,683,155
Net asset value per share – Institutional Class		$8.76

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended February 28, 2017 (unaudited) Wells Fargo Short-Term Bond Fund 19

Investment income
Interest (net of foreign interest withholding taxes of $589)	$	5,415,962
Income from affiliated securities		42,673
Dividends		34,800
Securities lending income, net		6,557
Total investment income		5,499,992
Expenses
Management fee		918,174
Administration fees
Class A		206,964
Class C		10,691
Institutional Class		101,041
Shareholder servicing fees
Class A		323,381
Class C		16,705
Distribution fee
Class C		50,114
Custody and accounting fees		21,212
Professional fees		25,027
Registration fees		39,192
Shareholder report expenses		23,150
Trustees’ fees and expenses		8,125
Other fees and expenses		10,936
Total expenses		1,754,712
Less: Fee waivers and/or expense reimbursements		(120,948	)
Net expenses		1,633,764
Net investment income		3,866,228
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		735,744
Affiliated securities		63
Futures transactions		(557,136	)
Net realized gains on investments		178,671
Net change in unrealized gains (losses) on:
Unaffiliated securities		(2,407,090	)
Futures transactions		207,800
Net change in unrealized gains (losses) on investments		(2,199,290	)
Net realized and unrealized gains (losses) on investments		(2,020,619	)
Net increase in net assets resulting from operations	$	1,845,609

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

20 Wells Fargo Short-Term Bond Fund Statement of changes in net assets

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	3,866,228					$	7,854,281
Net realized gains (losses) on investments					178,671						(1,193,101	)
Net change in unrealized gains (losses) on investments					(2,199,290	)					4,253,286
Net increase in net assets resulting from operations					1,845,609						10,914,466
Distributions to shareholders from
Net investment income
Class A					(1,780,215	)					(3,198,779	)
Class C					(42,029	)					(68,978	)
Institutional Class					(2,043,803	)					(4,204,345	)
Investor Class					N/A						(385,178	)1
Net realized gains
Class A					0						(1,039,448	)
Class C					0						(44,006	)
Institutional Class					0						(978,309	)
Total distributions to shareholders					(3,866,047	)					(9,919,043	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,748,988			15,323,464			32,732,632			287,219,221
Class C		123,146			1,076,816			623,323			5,441,195
Institutional Class		5,851,472			51,272,021			17,076,264			149,192,804
Investor Class		N/A			N/A			447,856	1		3,928,307	1
					67,672,301						445,781,527
Reinvestment of distributions
Class A		192,028			1,680,765			455,131			3,978,985
Class C		3,957			34,587			10,368			90,517
Institutional Class		164,148			1,437,974			358,018			3,133,078
Investor Class		N/A			N/A			22,693	1		199,015	1
					3,153,326						7,401,595
Payment for shares redeemed
Class A		(5,833,995	)		(51,074,897	)		(8,912,341	)		(78,005,822	)
Class C		(312,879	)		(2,735,137	)		(328,586	)		(2,870,545	)
Institutional Class		(6,118,030	)		(53,570,754	)		(23,626,452	)		(206,695,968	)
Investor Class		N/A			N/A			(27,124,834	)1		(238,058,968	)1
					(107,380,788	)					(525,631,303	)
Net decrease in net assets resulting from capital share transactions					(36,555,161	)					(72,448,181	)
Total decrease in net assets					(38,575,599	)					(71,452,758	)
Net assets
Beginning of period					545,966,731						617,419,489
End of period				$	507,391,132					$	545,966,731
Undistributed net investment income				$	39,798					$	39,617

¹  For the period from September 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 Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.78			$8.77			$8.82			$8.77			$8.81			$8.76
Net investment income		0.06			0.11			0.09			0.10			0.10			0.14
Net realized and unrealized gains (losses) on investments		(0.03	)		0.04			(0.03	)		0.05			(0.04	)		0.05
Total from investment operations		0.03			0.15			0.06			0.15			0.06			0.19
Distributions to shareholders from
Net investment income		(0.06	)		(0.11	)		(0.09	)		(0.10	)		(0.10	)		(0.14	)
Net realized gains		0.00			(0.03	)		(0.02	)		0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.14	)		(0.11	)		(0.10	)		(0.10	)		(0.14	)
Net asset value, end of period		$8.75			$8.78			$8.77			$8.82			$8.77			$8.81
Total return1		0.34	%		1.77	%		0.66	%		1.72	%		0.72	%		2.22	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.81	%		0.80	%		0.82	%		0.87	%		0.90	%
Net expenses		0.72	%		0.72	%		0.74	%		0.78	%		0.80	%		0.80	%
Net investment income		1.38	%		1.29	%		1.00	%		1.12	%		1.17	%		1.63	%
Supplemental data
Portfolio turnover rate		24	%		59	%		57	%		70	%		75	%		44	%
Net assets, end of period (000s omitted)		$243,712			$278,802			$65,454			$59,962			$65,812			$69,247

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 Short-Term Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.77			$8.76			$8.81			$8.76			$8.80			$8.75
Net investment income		0.03			0.05			0.02			0.03			0.04			0.08
Net realized and unrealized gains (losses) on investments		(0.03	)		0.04			(0.03	)		0.05			(0.04	)		0.05
Total from investment operations		0.00			0.09			(0.01	)		0.08			0.00			0.13
Distributions to shareholders from
Net investment income		(0.03	)		(0.05	)		(0.02	)		(0.03	)		(0.04	)		(0.08	)
Net realized gains		0.00			(0.03	)		(0.02	)		0.00			0.00			0.00
Total distributions to shareholders		(0.03	)		(0.08	)		(0.04	)		(0.03	)		(0.04	)		(0.08	)
Net asset value, end of period		$8.74			$8.77			$8.76			$8.81			$8.76			$8.80
Total return1		(0.03	)%		1.01	%		(0.09	)%		0.97	%		(0.03	)%		1.46	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.56	%		1.55	%		1.57	%		1.62	%		1.65	%
Net expenses		1.47	%		1.47	%		1.49	%		1.53	%		1.55	%		1.55	%
Net investment income		0.63	%		0.53	%		0.25	%		0.37	%		0.42	%		0.89	%
Supplemental data
Portfolio turnover rate		24	%		59	%		57	%		70	%		75	%		44	%
Net assets, end of period (000s omitted)		$12,529			$14,204			$11,508			$14,852			$16,686			$18,501

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 Short-Term Bond Fund 23

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.79			$8.77			$8.83			$8.77			$8.81			$8.77
Net investment income		0.07			0.13			0.11			0.12			0.13			0.17
Net realized and unrealized gains (losses) on investments		(0.03	)		0.05			(0.04	)		0.07			(0.04	)		0.04
Total from investment operations		0.04			0.18			0.07			0.19			0.09			0.21
Distributions to shareholders from
Net investment income		(0.07	)		(0.13	)		(0.11	)		(0.13	)		(0.13	)		(0.17	)
Net realized gains		0.00			(0.03	)		(0.02	)		0.00			0.00			0.00
Total distributions to shareholders		(0.07	)		(0.16	)		(0.13	)		(0.13	)		(0.13	)		(0.17	)
Net asset value, end of period		$8.76			$8.79			$8.77			$8.83			$8.77			$8.81
Total return1		0.46	%		2.14	%		0.82	%		2.15	%		1.04	%		2.43	%
Ratios to average net assets (annualized)
Gross expenses		0.48	%		0.48	%		0.47	%		0.49	%		0.53	%		0.57	%
Net expenses		0.48	%		0.48	%		0.47	%		0.47	%		0.48	%		0.48	%
Net investment income		1.62	%		1.51	%		1.26	%		1.42	%		1.47	%		1.95	%
Supplemental data
Portfolio turnover rate		24	%		59	%		57	%		70	%		75	%		44	%
Net assets, end of period (000s omitted)		$251,150			$252,961			$306,832			$330,613			$269,123			$282,512

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 Short-Term 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 Short-Term 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.

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.

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

Notes to financial statements (unaudited) Wells Fargo Short-Term Bond Fund 25

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.

When-issued transactions

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

Futures contracts

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

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

Security transactions and income recognition

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

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

Dividend income is recognized on the ex-dividend date.

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

Distributions to shareholders

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

Federal and other taxes

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

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

26 Wells Fargo Short-Term Bond Fund Notes to financial statements (unaudited)

As of August 31, 2016, the Fund had capital loss carryforwards which consist of $915,873 in long-term capital losses.

Class allocations

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

3. FAIR VALUATION MEASUREMENTS

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

∎ 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, 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	40,657,878	$	0	$	40,657,878
Asset-backed securities		0		60,480,747		0		60,480,747
Corporate bonds and notes		0		191,299,436		0		191,299,436
Municipal obligations		0		42,124,448		0		42,124,448
Non-agency mortgage-backed securities		0		60,999,350		0		60,999,350
Preferred stocks
Financials		0		0		1,357,459		1,357,459
Yankee corporate bonds and notes		0		89,151,067		0		89,151,067
Short-term investments
Investment companies		19,296,292		0		0		19,296,292
U.S. Treasury securities		624,890		0		0		624,890
Investments measured at net asset value*								1,691,085
		19,921,182		484,712,926		1,357,459		507,682,652
Futures contracts		20,453		0		0		20,453
Total assets	$	19,941,635	$	484,712,926	$	1,357,459	$	507,703,105
Liabilities
Futures contracts	$	19,224	$	0	$	0	$	19,224
Total liabilities	$	19,224	$	0	$	0	$	19,224

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $1,691,085 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements (unaudited) Wells Fargo Short-Term Bond Fund 27

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, 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 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the six months ended February 28, 2017, the management fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through December 31, 2017 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.72% for Class A shares, 1.47% for Class C shares, 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 February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $486 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 $3,038 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 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 February 28, 2017, Funds Distributor received $992 from the sale of Class A shares and $16 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 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.

28 Wells Fargo Short-Term Bond Fund Notes to financial statements (unaudited)

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 February 28, 2017 were $180,102,404 and $120,743,950, 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 February 28, 2017, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2017, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at February 28, 2017		Unrealized gains
6-30-2017	JPMorgan	238 Short		5-Year U.S. Treasury Notes	$	28,013,344	$	9,088
6-30-2017	JPMorgan	857 Long		2-Year U.S. Treasury Notes		185,460,156		76,536

The Fund had an average notional amount of $209,870,151 and $28,379,569 in long and short futures contracts, respectively, during the six months ended February 28, 2017.

On February 28, 2017, the cumulative unrealized gains on futures contracts in the amount of $85,624 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable and payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$20,453	$	(19,224	)	$	0	$	1,229

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged		Net amount of liabilities
Futures – variation margin	JPMorgan	$19,224	$	(19,224	)	$	0	$	0

Notes to financial statements (unaudited) Wells Fargo Short-Term Bond Fund 29

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.

For the six months ended February 28, 2017, 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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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 Short-Term 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 138 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 Short-Term Bond Fund 31

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

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

** 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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

32 Wells Fargo Short-Term Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

More information about Wells Fargo 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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302028 04-17 SA221/SAR221 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo Short-Term High Yield Bond Fund

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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 February 28, 2017, 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 High Yield Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 High Yield Bond Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which continued to

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 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.

Letter to shareholders (unaudited) Wells Fargo Short-Term High Yield Bond Fund 3

transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

4 Wells Fargo Short-Term High Yield Bond Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kevin J. Maas, CFA^®

Thomas M. Price, CFA^®

Michael J. Schueller, CFA^®

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SSTHX)	2-29-2000		1.52		2.43		3.52		4.66		3.05		3.84		0.93		0.82
Class C (WFHYX)	3-31-2008		2.88		2.28		3.06		3.88		2.28		3.06		1.68		1.57
Administrator Class (WDHYX)	7-30-2010		–		–		–		4.83		3.22		3.94		0.87		0.66
Institutional Class (STYIX)	11-30-2012		–		–		–		4.99		3.32		3.99		0.60		0.51
Short-Term High Yield Bond Index III4	–		–		–		–		14.10		5.75		6.58		–		–
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, B Rated, 1-5 Year Index5	–		–		–		–		20.56		5.49		6.46		–		–
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index6	–		–		–		–		11.42		5.86		6.58		–		–

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. Loans are subject to risks similar to those associated with other below investment- grade bond investments, such as credit risk (for example, risk of issuer default), below-investment grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Short-Term High Yield Bond Fund 5

Ten largest holdings (%) as of February 28, 20177
Ineos US Finance LLC , 3.53%, 12-15-2020	1.35
Sprint Communications Incorporated, 9.00%, 11-15-2018	1.34
Rockies Express Pipeline LLC, 6.00%, 1-15-2019	1.26
Michaels Stores Incorporated, 3.75%, 1-30-2023	1.25
NGPL PipeCo LLC, 7.12%, 12-15-2017	1.23
CIT Group Incorporated, 4.25%, 8-15-2017	1.21
Charter Communications Operating LLC, 2.79%, 1-3-2021	1.14
TransDigm Incorporated, 3.96%, 2-28-2020	1.14
Tesco plc, 5.50%, 11-15-2017	1.13
DISH DBS Corporation , 4.25%, 4-1-2018	1.13

Credit quality as of February 28, 2017⁸

¹  Effective June 20, 2008, Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Historical performance shown for Class A shares through June 19, 2008, includes Advisor Class expenses. Historical performance shown for Class C shares prior to their inception reflects the performance of the former Investor Class shares, adjusted to include the higher expenses applicable to Class C shares. Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Class A shares and includes the higher expenses applicable to Class A shares. If these expenses had not been included, returns would be higher. Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Administrator Class shares and includes the higher expenses applicable to Administrator Class shares. If these expenses had not been included, returns would be higher.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at 0.81% for Class A, 1.56% for Class C, 0.65% for Administrator Class, and 0.50% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

⁴  Source: Wells Fargo Funds Management, LLC. The Short-Term High Yield Bond Index III is comprised of 70% of BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index and 30% of BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, B Rated, 1-5 Year Index.

⁵  The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, B Rated, 1-5 Year Index is an unmanaged index that generally tracks the performance of B rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of one to five years. You cannot invest directly in an index.

⁶  The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index is an unmanaged index that generally tracks the performance of BB rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of one to five years. You cannot invest directly in an index.

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

⁸  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 High Yield Bond Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the

entire period from September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,013.62	$	4.11		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.12	$	4.13		0.81	%
Class C
Actual	$	1,000.00	$	1,009.86	$	7.90		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.93		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,014.42	$	3.30		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93	$	3.31		0.65	%
Institutional Class
Actual	$	1,000.00	$	1,015.18	$	2.54		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.68	$	2.55		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—February 28, 2017 (unaudited) Wells Fargo Short-Term High Yield Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 56.96%
Consumer Discretionary: 18.26%
Auto Components: 1.81%
American Axle & Manufacturing Incorporated «		6.25	%		3-15-2021	$	13,000,000	$	13,373,750
American Axle & Manufacturing Incorporated		7.75			11-15-2019		4,080,000		4,523,700
Cooper Tire & Rubber Company (i)		8.00			12-15-2019		2,568,000		2,901,840
Goodyear Tire & Rubber Company		7.00			5-15-2022		5,505,000		5,752,725
									26,552,015
Diversified Consumer Services: 2.31%
Avis Budget Car Rental LLC ±		3.80			12-1-2017		11,611,000		11,625,514
Service Corporation International		5.38			1-15-2022		13,800,000		14,265,750
TRI Pointe Group Incorporated		4.38			6-15-2019		7,847,000		8,003,940
									33,895,204
Hotels, Restaurants & Leisure: 3.18%
GLP Capital LP/GLP Financing II Incorporated		4.38			11-1-2018		3,370,000		3,466,888
GLP Capital LP/GLP Financing II Incorporated		4.88			11-1-2020		11,614,000		12,194,700
Hilton Worldwide Finance LLC		5.63			10-15-2021		12,870,000		13,251,725
International Game Technology		7.50			6-15-2019		6,720,000		7,408,800
MGM Resorts International		8.63			2-1-2019		9,365,000		10,348,325
									46,670,438
Household Durables: 2.76%
CalAtlantic Group Incorporated		6.63			5-1-2020		2,485,000		2,739,713
CalAtlantic Group Incorporated		8.38			5-15-2018		500,000		534,375
DR Horton Incorporated		3.63			2-15-2018		3,930,000		3,979,125
DR Horton Incorporated		4.75			5-15-2017		6,050,000		6,089,023
KB Home		4.75			5-15-2019		7,835,000		8,021,081
Lennar Corporation		4.13			12-1-2018		3,764,000		3,848,690
Lennar Corporation		4.50			11-15-2019		9,106,000		9,413,328
Lennar Corporation		4.75			12-15-2017		600,000		609,000
Pulte Group Incorporated		7.63			10-15-2017		5,185,000		5,353,513
									40,587,848
Media: 4.86%
CSC Holdings LLC		7.63			7-15-2018		8,945,000		9,515,244
DISH DBS Corporation		4.25			4-1-2018		16,205,000		16,529,100
National CineMedia LLC		6.00			4-15-2022		14,525,000		15,015,219
Sinclair Television Group Incorporated		6.13			10-1-2022		13,200,000		13,810,500
TEGNA Incorporated		5.13			10-15-2019		11,575,000		11,878,844
TEGNA Incorporated		5.13			7-15-2020		4,505,000		4,669,838
									71,418,745
Multiline Retail: 0.51%
Dollar Tree Incorporated		5.25			3-1-2020		7,305,000		7,513,193

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

8 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Specialty Retail: 1.78%
Best Buy Company Incorporated		5.00	%		8-1-2018	$	8,880,000	$	9,258,847
L Brands Incorporated		8.50			6-15-2019		2,700,000		3,013,875
Sally Beauty Holdings Incorporated		5.75			6-1-2022		13,450,000		13,853,500
									26,126,222
Textiles, Apparel & Luxury Goods: 1.05%
The William Carter Company		5.25			8-15-2021		14,890,000		15,392,519
Consumer Staples: 3.07%
Beverages: 1.03%
Cott Beverages Incorporated		6.75			1-1-2020		14,645,000		15,139,269
Food Products: 2.04%
B&G Foods Incorporated		4.63			6-1-2021		14,070,000		14,245,875
Post Holdings Incorporated 144A		6.75			12-1-2021		14,592,000		15,631,680
									29,877,555
Energy: 6.62%
Energy Equipment & Services: 1.23%
NGPL PipeCo LLC 144A		7.12			12-15-2017		17,465,000		18,098,106
Oil, Gas & Consumable Fuels: 5.39%
Crestwood Midstream Partners LP		6.00			12-15-2020		7,080,000		7,283,550
Kinder Morgan Finance Company LLC 144A		6.00			1-15-2018		9,000,000		9,329,094
Kinder Morgan Incorporated		7.00			6-15-2017		5,300,000		5,382,256
Rockies Express Pipeline LLC 144A		6.00			1-15-2019		17,620,000		18,501,000
Sabine Pass Liquefaction LLC		5.63			2-1-2021		12,940,000		14,071,991
Targa Resources Partners LP		4.13			11-15-2019		5,715,000		5,815,013
Tesoro Corporation		4.25			10-1-2017		4,000,000		4,045,000
Tesoro Logistics LP		5.50			10-15-2019		10,395,000		11,018,700
Tesoro Logistics LP		5.88			10-1-2020		3,615,000		3,726,161
									79,172,765
Financials: 3.76%
Banks: 1.51%
CIT Group Incorporated		4.25			8-15-2017		17,570,000		17,761,513
CIT Group Incorporated 144A		5.00			5-15-2018		135,000		136,620
CIT Group Incorporated		5.25			3-15-2018		4,185,000		4,324,695
									22,222,828
Consumer Finance: 2.25%
Ally Financial Incorporated		3.75			11-18-2019		5,050,000		5,157,313
Ally Financial Incorporated		6.25			12-1-2017		2,850,000		2,947,527
Navient Corporation		4.63			9-25-2017		870,000		880,875
Navient Corporation		8.45			6-15-2018		12,440,000		13,295,250
Toll Brothers Finance Corporation		4.00			12-31-2018		2,650,000		2,719,563
Toll Brothers Finance Corporation		8.91			10-15-2017		7,750,000		8,060,000
									33,060,528

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term High Yield Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 3.84%
Health Care Equipment & Supplies: 0.50%
Hologic Incorporated 144A		5.25	%		7-15-2022	$	7,095,000	$	7,396,538
Health Care Providers & Services: 3.34%
Fresenius Medical Care Holdings Incorporated 144A		5.63			7-31-2019		395,000		423,638
Fresenius Medical Care Holdings Incorporated		6.88			7-15-2017		12,834,000		13,058,595
HCA Incorporated		3.75			3-15-2019		4,030,000		4,130,750
HCA Incorporated		8.00			10-1-2018		6,610,000		7,204,900
Lifepoint Hospitals Incorporated		5.50			12-1-2021		7,205,000		7,497,703
Tenet Healthcare Corporation ±		4.46			6-15-2020		7,205,000		7,295,063
Tenet Healthcare Corporation		6.25			11-1-2018		8,840,000		9,359,350
									48,969,999
Industrials: 9.21%
Aerospace & Defense: 2.11%
Alcoa Incorporated		6.75			7-15-2018		9,575,000		10,163,958
Huntington Ingalls Industries Incorporated 144A		5.00			12-15-2021		5,225,000		5,460,125
L-3 Communications Corporation		5.20			10-15-2019		14,300,000		15,372,371
									30,996,454
Airlines: 1.70%
American Airlines Group Incorporated		6.13			6-1-2018		10,000,000		10,425,000
United Continental Holdings Incorporated		6.38			6-1-2018		10,965,000		11,485,838
US Airways Incorporated Series B (i)		8.50			10-22-2018		2,952,178		2,996,461
									24,907,299
Building Products: 1.01%
USG Corporation		8.25			1-15-2018		14,150,000		14,914,100
Commercial Services & Supplies: 0.76%
Clean Harbors Incorporated		5.13			6-1-2021		10,945,000		11,191,263
Machinery: 0.56%
Meritor Incorporated		6.75			6-15-2021		7,875,000		8,190,000
Trading Companies & Distributors: 3.07%
Aircastle Limited		4.63			12-15-2018		13,060,000		13,549,750
Ashtead Capital Incorporated 144A		6.50			7-15-2022		14,585,000		15,254,521
H&E Equipment Services Incorporated		7.00			9-1-2022		12,895,000		13,571,988
International Lease Finance Corporation		6.25			5-15-2019		2,500,000		2,712,575
									45,088,834
Information Technology: 3.25%
Communications Equipment: 0.54%
ViaSat Incorporated		6.88			6-15-2020		7,690,000		7,886,710
Electronic Equipment, Instruments & Components: 0.26%
Zebra Technologies Corporation «		7.25			10-15-2022		3,575,000		3,867,507

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

10 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Internet Software & Services: 1.19%
IAC/InterActiveCorp		4.88	%		11-30-2018	$	14,045,000	$	14,255,675
Match Group Incorporated		6.75			12-15-2022		3,110,000		3,281,050
									17,536,725
Technology Hardware, Storage & Peripherals: 1.26%
Diamond 1 Finance Corporation 144A		3.48			6-1-2019		6,745,000		6,895,137
EMC Corporation		2.65			6-1-2020		11,835,000		11,534,498
									18,429,635
Materials: 1.89%
Construction Materials: 0.09%
Vulcan Materials Company		7.00			6-15-2018		1,265,000		1,339,762
Containers & Packaging: 1.09%
Owens-Illinois Incorporated		7.80			5-15-2018		9,305,000		9,863,300
Reynolds Group Holdings		5.75			10-15-2020		5,920,000		6,097,600
									15,960,900
Metals & Mining: 0.71%
Steel Dynamics Incorporated		6.38			8-15-2022		10,050,000		10,502,250
Real Estate: 3.06%
Equity REITs: 2.51%
Equinix Incorporated		5.38			1-1-2022		14,195,000		14,993,469
Iron Mountain Incorporated 144A		6.00			10-1-2020		15,075,000		15,833,122
VEREIT Operating Partnership LP		3.00			2-6-2019		1,820,000		1,826,734
VEREIT Operating Partnership LP		4.13			6-1-2021		4,125,000		4,213,275
									36,866,600
Real Estate Management & Development: 0.55%
Taylor Morrison Communities Incorporated 144A		5.25			4-15-2021		7,925,000		8,123,125
Telecommunication Services: 4.00%
Diversified Telecommunication Services: 1.44%
CenturyLink Incorporated		6.00			4-1-2017		10,390,000		10,416,754
Frontier Communications Corporation		8.13			10-1-2018		8,940,000		9,565,800
Hughes Satellite Systems Corporation		6.50			6-15-2019		1,100,000		1,191,080
									21,173,634
Wireless Telecommunication Services: 2.56%
Sprint Communications Incorporated 144A		9.00			11-15-2018		17,975,000		19,682,625
Sprint Spectrum LP 144A		3.36			3-20-2023		1,620,000		1,624,050
T-Mobile USA Incorporated		6.13			1-15-2022		700,000		741,636
T-Mobile USA Incorporated		6.25			4-1-2021		5,920,000		6,127,200
T-Mobile USA Incorporated		6.46			4-28-2019		9,270,000		9,340,267
									37,515,778
Total Corporate Bonds and Notes (Cost $833,979,840)									836,584,348

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Loans: 27.56%
Consumer Discretionary: 3.25%
Auto Components: 0.53%
Allison Transmission Incorporated ±		3.28	%		9-23-2022	$	7,776,175	$	7,863,657
Hotels, Restaurants & Leisure: 0.61%
Aramark Corporation ±		3.36			9-7-2019		8,816,542		8,902,504
Household Products: 2.11%
Michaels Stores Incorporated ±		3.75			1-30-2023		18,475,711		18,422,871
The ServiceMaster Company LLC ±		3.28			11-8-2023		12,385,000		12,508,850
									30,931,721
Consumer Staples: 1.41%
Food Products: 1.41%
Pinnacle Foods Incorporated <		0.00			2-2-2024		13,255,000		13,315,708
Prestige Brands Incorporated ±<		3.53			1-26-2024		7,315,000		7,403,365
									20,719,073
Financials: 1.26%
Diversified Financial Services: 1.26%
Delos Finance Sarl ±		3.50			10-6-2023		9,865,000		9,949,247
LPL Holdings Incorporated ±		3.28			3-29-2019		8,510,000		8,515,361
									18,464,608
Health Care: 2.91%
Health Care Providers & Services: 2.91%
Change Healthcare Holdings LLC <		0.00			2-8-2024		5,905,000		5,929,624
Community Health Systems Incorporated ±		3.80			12-31-2019		2,290,602		2,269,849
Community Health Systems Incorporated ±		4.05			1-27-2021		4,214,676		4,140,456
Community Health Systems Incorporated ±		4.27			12-31-2018		8,550,165		8,524,942
HCA Incorporated ±		4.03			3-17-2023		7,168,034		7,221,794
Select Medical Corporation ±		6.02			6-1-2018		9,766,509		9,815,342
TeamHealth Incorporated ±		3.75			2-6-2024		4,805,000		4,790,008
									42,692,015
Industrials: 6.80%
Aerospace & Defense: 1.19%
TransDigm Incorporated ±		3.85			5-14-2022		761,467		764,513
TransDigm Incorporated ±		3.96			2-28-2020		16,660,111		16,723,586
									17,488,099
Airlines: 0.75%
Delta Air Lines Incorporated ±		3.28			8-24-2022		10,990,875		11,057,260

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

12 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies: 2.59%
ADS Waste Holdings Incorporated ±		3.50	%		11-10-2023	$	12,806,333	$	12,934,397
Columbus McKinnon Corporation ±<		4.00			1-31-2024		7,424,000		7,465,797
KAR Auction Services Incorporated ±		4.19			3-9-2021		13,895,069		14,012,343
Sensata Technologies BV ±		3.02			10-14-2021		3,592,926		3,614,089
									38,026,626
Communications Equipment: 2.27%
Charter Communications Operating LLC ±<		2.79			1-3-2021		16,745,000		16,814,157
Virgin Media Bristol LLC ±		3.52			1-31-2025		16,465,000		16,529,049
									33,343,206
Information Technology: 4.01%
Communications Equipment: 0.49%
CommScope Incorporated ±		3.28			12-29-2022		7,195,352		7,260,542
Electronic Equipment, Instruments & Components: 0.95%
Dell International LLC <		0.00			9-7-2023		2,935,000		2,952,904
Zebra Technologies Corporation ±		3.43			10-27-2021		10,856,440		10,986,717
									13,939,621
Internet Software & Services: 1.46%
Ancestry.com Operations Incorporated ±		4.25			10-19-2023		7,440,000		7,523,700
Zayo Group LLC <		0.00			1-12-2024		4,472,000		4,513,858
Zayo Group LLC ±<		3.50			1-19-2024		9,288,000		9,374,936
									21,412,494
IT Services: 0.89%
First Data Corporation ±		3.78			7-10-2022		13,061,348		13,146,246
Semiconductors & Semiconductor Equipment: 0.22%
Micron Technology Incorporated ±		4.54			4-26-2022		3,127,143		3,166,482
Materials: 3.89%
Chemicals: 2.10%
Huntsman International LLC ±		3.80			4-1-2023		10,898,087		11,011,645
Ineos US Finance LLC ±		3.53			12-15-2020		19,747,955		19,760,397
									30,772,042
Containers & Packaging: 1.79%
Berry Plastics Corporation <		0.00			2-8-2020		15,820,000		15,892,456
Reynolds Group Holdings Incorporated ±		3.78			2-5-2023		10,387,182		10,465,086
									26,357,542
Real Estate: 1.09%
Equity REITs: 1.09%
MGM Growth Properties LLC ±		3.28			4-25-2023		15,894,427		16,018,563

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Short-Term High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services: 2.04%
Diversified Telecommunication Services: 1.04%
Level 3 Financing Incorporated <		0.00	%		2-14-2024	$	15,258,850	$	15,329,651
Wireless Telecommunication Services: 1.00%
SBA Communications Corporation ±<		3.04			3-24-2021		14,625,000		14,685,986
Utilities: 0.90%
Independent Power & Renewable Electricity Producers: 0.90%
Calpine Corporation ±		3.75			1-15-2024		13,118,409		13,179,147
Total Loans (Cost $403,304,895)									404,757,085
Non-Agency Mortgage-Backed Securities: 0.00%
Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2 (i)±		3.40			4-25-2024		33,413		29,180
Total Non-Agency Mortgage-Backed Securities (Cost $33,090)									29,180
Yankee Corporate Bonds and Notes: 6.07%
Consumer Discretionary: 1.07%
Automobiles: 0.92%
Jaguar Land Rover Automotive plc 144A		4.13			12-15-2018		13,235,000		13,503,009
Media: 0.15%
British Sky Broadcasting Group plc 144A		9.50			11-15-2018		2,000,000		2,244,892
Consumer Staples: 1.13%
Food & Staples Retailing: 1.13%
Tesco plc 144A		5.50			11-15-2017		16,180,000		16,542,464
Financials: 1.70%
Banks: 1.36%
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		12,170,000		12,653,003
Royal Bank of Scotland Group plc		4.70			7-3-2018		7,240,000		7,410,697
									20,063,700
Diversified Financial Services: 0.34%
AerCap Ireland Capital Limited		2.75			5-15-2017		4,955,000		4,967,298
Health Care: 0.99%
Pharmaceuticals: 0.99%
Mallinckrodt International Finance SA		3.50			4-15-2018		14,520,000		14,556,300
Information Technology: 0.86%
Communications Equipment: 0.73%
Nokia Corporation		5.38			5-15-2019		10,120,000		10,701,900
Semiconductors & Semiconductor Equipment: 0.13%
NXP BV/NXP Funding LLC 144A		4.13			6-15-2020		1,900,000		1,976,342

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

14 Wells Fargo Short-Term High Yield Bond Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Materials: 0.32%
Containers & Packaging: 0.32%
Ardagh Packaging Finance plc 144A<%%		4.25	%		9-15-2022	$	1,000,000	$	1,015,000
Ardagh Packaging Finance plc 144A±		3.96			12-15-2019		3,565,563		3,636,864
									4,651,864
Total Yankee Corporate Bonds and Notes (Cost $88,640,679)									89,207,769
	Yield					Shares
Short-Term Investments: 15.43%
Investment Companies: 15.43%
Securities Lending Cash Investment LLC (l)(r)(u)		0.84					16,008,325		16,009,926
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.48					210,687,378		210,687,378
Total Short-Term Investments (Cost $226,696,791)									226,697,304

Total investments in securities (Cost $1,552,655,295) *	106.02	%		1,557,275,686
Other assets and liabilities, net	(6.02	)		(88,430,804	)
Total net assets	100.00	%	$	1,468,844,882

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

(i) Illiquid security

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

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

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

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

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

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

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

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

*	Cost for federal income tax purposes is $1,552,658,443 and unrealized gains (losses) consists of:
	Gross unrealized gains	$	7,318,990
	Gross unrealized losses		(2,701,747	)
	Net unrealized gains	$	4,617,243

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

Statement of assets and liabilities—February 28, 2017 (unaudited) Wells Fargo Short-Term High Yield Bond Fund 15

Assets
Investments
In unaffiliated securities (including $15,699,393 of securities loaned), at value (cost $1,325,958,504)	$	1,330,578,382
In affiliated securities, at value (cost $226,696,791)		226,697,304
Total investments, at value (cost $1,552,655,295)		1,557,275,686
Receivable for investments sold		8,536,069
Receivable for Fund shares sold		1,385,838
Receivable for interest		14,439,502
Receivable for securities lending income		2,720
Prepaid expenses and other assets		65,130
Total assets		1,581,704,945
Liabilities
Dividends payable		564,016
Payable for investments purchased		87,775,886
Payable for Fund shares redeemed		7,641,430
Payable upon receipt of securities loaned		16,008,913
Management fee payable		415,437
Distribution fee payable		69,094
Administration fees payable		117,138
Accrued expenses and other liabilities		268,149
Total liabilities		112,860,063
Total net assets	$	1,468,844,882
NET ASSETS CONSIST OF
Paid-in capital	$	1,496,429,587
Overdistributed net investment income		(39	)
Accumulated net realized losses on investments		(32,205,057	)
Net unrealized gains on investments		4,620,391
Total net assets	$	1,468,844,882
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	279,796,858
Shares outstanding – Class A1		34,578,946
Net asset value per share – Class A		$8.09
Maximum offering price per share – Class A2		$8.34
Net assets – Class C	$	119,410,431
Shares outstanding – Class C1		14,756,835
Net asset value per share – Class C		$8.09
Net assets – Administrator Class	$	175,540,876
Shares outstanding – Administrator Class1		21,702,947
Net asset value per share – Administrator Class		$8.09
Net assets – Institutional Class	$	894,096,717
Shares outstanding – Institutional Class1		110,669,183
Net asset value per share – Institutional Class		$8.08

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.

16 Wells Fargo Short-Term High Yield Bond Fund Statement of operations—six months ended February 28, 2017 (unaudited)

Investment income
Interest	$	26,911,740
Income from affiliated securities		216,439
Securities lending income, net		23,006
Total investment income		27,151,185
Expenses
Management fee		3,407,685
Administration fees
Class A		226,418
Class C		96,619
Administrator Class		112,360
Institutional Class		321,344
Shareholder servicing fees
Class A		353,778
Class C		150,968
Administrator Class		279,777
Distribution fee
Class C		452,903
Custody and accounting fees		49,098
Professional fees		25,583
Registration fees		68,016
Shareholder report expenses		56,458
Trustees’ fees and expenses		11,314
Other fees and expenses		12,411
Total expenses		5,624,732
Less: Fee waivers and/or expense reimbursements		(797,707	)
Net expenses		4,827,025
Net investment income		22,324,160
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		103,193
Affiliated securities		500
Net realized gains on investments		103,693
Net change in unrealized gains (losses) on:
Unaffiliated securities		(2,190,279	)
Affiiliated securities		513
Net change in unrealized gains (losses) on investments		(2,189,766	)
Net realized and unrealized gains (losses) on investments		(2,086,073	)
Net increase in net assets resulting from operations	$	20,238,087

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

Statement of changes in net assets Wells Fargo Short-Term High Yield Bond Fund 17

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	22,324,160					$	42,937,852
Net realized gains (losses) on investments					103,693						(15,355,685	)
Net change in unrealized gains (losses) on investments					(2,189,766	)					20,384,912
Net increase in net assets resulting from operations					20,238,087						47,967,079
Distributions to shareholders from
Net investment income
Class A					(4,216,833	)					(8,671,720	)
Class C					(1,347,052	)					(2,670,512	)
Administrator Class					(3,528,550	)					(9,693,844	)
Institutional Class					(13,231,715	)					(21,177,651	)
Investor Class					N/A						(724,174	)1
Total distributions to shareholders					(22,324,150	)					(42,937,901	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,545,925			36,760,861			29,782,797			239,664,970
Class C		1,388,182			11,229,366			3,228,611			25,941,374
Administrator Class		4,412,480			35,693,780			17,974,334			144,308,927
Institutional Class		34,460,044			277,926,757			49,823,749			399,898,207
Investor Class		N/A			N/A			1,234,213	1		9,927,721	1
					361,610,764						819,741,199
Reinvestment of distributions
Class A		508,572			4,111,872			1,049,105			8,425,842
Class C		160,180			1,295,347			318,867			2,561,386
Administrator Class		398,522			3,221,360			1,084,133			8,703,328
Institutional Class		1,262,510			10,192,884			1,879,639			15,083,611
Investor Class		N/A			N/A			50,179	1		401,935	1
					18,821,463						35,176,102
Payment for shares redeemed
Class A		(7,104,811	)		(57,469,490	)		(19,461,309	)		(156,026,488	)
Class C		(2,062,003	)		(16,675,528	)		(3,581,650	)		(28,747,006	)
Administrator Class		(17,041,619	)		(137,407,057	)		(25,895,695	)		(208,049,507	)
Institutional Class		(15,938,591	)		(128,674,089	)		(36,367,228	)		(291,283,147	)
Investor Class		N/A			N/A			(22,108,935	)1		(178,209,033	)1
					(340,226,164	)					(862,315,181	)
Net increase (decrease) in net assets resulting from capital share transactions					40,206,063						(7,397,880	)
Total increase (decrease) in net assets					38,120,000						(2,368,702	)
Net assets
Beginning of period					1,430,724,882						1,433,093,584
End of period				$	1,468,844,882					$	1,430,724,882
Overdistributed net investment income				$	(39	)				$	(49	)

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

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

18 Wells Fargo Short-Term High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.10			$8.07			$8.20			$8.21			$8.26			$8.04
Net investment income		0.12			0.24			0.25			0.27			0.31			0.36
Net realized and unrealized gains (losses) on investments		(0.01	)		0.03			(0.13	)		0.01			(0.05	)		0.26
Total from investment operations		0.11			0.27			0.12			0.28			0.26			0.62
Distributions to shareholders from
Net investment income		(0.12	)		(0.24	)		(0.25	)		(0.27	)		(0.31	)		(0.36	)
Net realized gains		0.00			0.00			0.00			(0.02	)		(0.00	)1		(0.04	)
Total distributions to shareholders		(0.12	)		(0.24	)		(0.25	)		(0.29	)		(0.31	)		(0.40	)
Net asset value, end of period		$8.09			$8.10			$8.07			$8.20			$8.21			$8.26
Total return2		1.36	%		3.37	%		1.46	%		3.40	%		3.17	%		7.81	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.92	%		0.92	%		0.91	%		0.94	%		0.99	%
Net expenses		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%
Net investment income		2.98	%		2.95	%		3.11	%		3.27	%		3.73	%		4.33	%
Supplemental data
Portfolio turnover rate		19	%		32	%		40	%		28	%		33	%		28	%
Net assets, end of period (000s omitted)		$279,797			$296,817			$203,856			$276,436			$285,726			$261,173

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 Short-Term High Yield Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.10			$8.07			$8.20			$8.21			$8.26			$8.04
Net investment income		0.09			0.18			0.19			0.21			0.25			0.29	1
Net realized and unrealized gains (losses) on investments		(0.01	)		0.03			(0.13	)		0.01			(0.06	)		0.26
Total from investment operations		0.08			0.21			0.06			0.22			0.19			0.55
Distributions to shareholders from
Net investment income		(0.09	)		(0.18	)		(0.19	)		(0.21	)		(0.24	)		(0.29	)
Net realized gains		0.00			0.00			0.00			(0.02	)		(0.00	)2		(0.04	)
Total distributions to shareholders		(0.09	)		(0.18	)		(0.19	)		(0.23	)		(0.24	)		(0.33	)
Net asset value, end of period		$8.09			$8.10			$8.07			$8.20			$8.21			$8.26
Total return3		0.99	%		2.60	%		0.70	%		2.62	%		2.40	%		7.00	%
Ratios to average net assets (annualized)
Gross expenses		1.67	%		1.67	%		1.67	%		1.66	%		1.69	%		1.73	%
Net expenses		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%
Net investment income		2.23	%		2.20	%		2.36	%		2.52	%		2.98	%		3.58	%
Supplemental data
Portfolio turnover rate		19	%		32	%		40	%		28	%		33	%		28	%
Net assets, end of period (000s omitted)		$119,410			$123,745			$123,521			$143,444			$133,379			$102,780

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

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

20 Wells Fargo Short-Term High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.10			$8.07			$8.20			$8.20			$8.26			$8.03
Net investment income		0.13	1		0.25			0.26			0.28			0.32			0.37
Net realized and unrealized gains (losses) on investments		(0.01	)		0.03			(0.13	)		0.02			(0.06	)		0.27
Total from investment operations		0.12			0.28			0.13			0.30			0.26			0.64
Distributions to shareholders from
Net investment income		(0.13	)		(0.25	)		(0.26	)		(0.28	)		(0.32	)		(0.37	)
Net realized gains		0.00			0.00			0.00			(0.02	)		(0.00	)2		(0.04	)
Total distributions to shareholders		(0.13	)		(0.25	)		(0.26	)		(0.30	)		(0.32	)		(0.41	)
Net asset value, end of period		$8.09			$8.10			$8.07			$8.20			$8.20			$8.26
Total return3		1.44	%		3.54	%		1.62	%		3.69	%		3.21	%		8.12	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.86	%		0.85	%		0.84	%		0.87	%		0.92	%
Net expenses		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Net investment income		3.14	%		3.11	%		3.28	%		3.44	%		3.89	%		4.48	%
Supplemental data
Portfolio turnover rate		19	%		32	%		40	%		28	%		33	%		28	%
Net assets, end of period (000s omitted)		$175,541			$274,878			$328,934			$509,059			$550,981			$459,746

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.

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

Financial highlights Wells Fargo Short-Term High Yield Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			20131
Net asset value, beginning of period		$8.09			$8.06			$8.18			$8.19			$8.28
Net investment income		0.13			0.26			0.28			0.29			0.25
Net realized and unrealized gains (losses) on investments		(0.01	)		0.03			(0.13	)		0.01			(0.09	)
Total from investment operations		0.12			0.29			0.15			0.30			0.16
Distributions to shareholders from
Net investment income		(0.13	)		(0.26	)		(0.27	)		(0.29	)		(0.25	)
Net realized gains		0.00			0.00			0.00			(0.02	)		(0.00	)2
Total distributions to shareholders		(0.13	)		(0.26	)		(0.27	)		(0.31	)		(0.25	)
Net asset value, end of period		$8.08			$8.09			$8.06			$8.18			$8.19
Total return3		1.52	%		3.69	%		1.90	%		3.72	%		1.92	%
Ratios to average net assets (annualized)
Gross expenses		0.59	%		0.59	%		0.59	%		0.58	%		0.60	%
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		3.29	%		3.26	%		3.40	%		3.58	%		4.05	%
Supplemental data
Portfolio turnover rate		19	%		32	%		40	%		28	%		33	%
Net assets, end of period (000s omitted)		$894,097			$735,285			$608,704			$540,824			$211,642

¹  For the period from November 30, 2012 (commencement of class operations) to August 31, 2013

²  Amount is less than $0.005.

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

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

22 Wells Fargo Short-Term High Yield 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 Short-Term High Yield 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.

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.

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

Notes to financial statements (unaudited) Wells Fargo Short-Term High Yield Bond Fund 23

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.

When-issued transactions

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

Loans

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

Security transactions and income recognition

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

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

Distributions to shareholders

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

Federal and other taxes

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

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

24 Wells Fargo Short-Term High Yield Bond Fund Notes to financial statements (unaudited)

As of August 31, 2016, the Fund had capital loss carryforwards available to offset future net realized capital gains which consist of $8,394,779 in short-term capital losses and $10,255,715 in long-term capital losses.

As of August 31, 2016, the Fund had current year deferred post-October capital losses consisting of $465,281 in short-term losses and $13,191,823 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, 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Corporate bonds and notes	$	0	$	836,584,348	$	0	$	836,584,348
Loans		0		397,291,288		7,465,797		404,757,085
Non-agency mortgage-backed securities		0		29,180		0		29,180
Yankee corporate bonds and notes		0		89,207,769		0		89,207,769
Short-term investments
Investment companies		210,687,378		0		0		210,687,378
Investments measured at net asset value*								16,009,926
Total assets	$	210,687,378	$	1,323,112,585	$	7,465,797	$	1,557,275,686

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $16,009,926 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

Notes to financial statements (unaudited) Wells Fargo Short-Term High Yield Bond Fund 25

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 February 28, 2017, the management fee was equivalent to an annual rate of 0.48% of the Fund’s average daily net assets.

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

During the six months ended February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $1,351 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 $3,078 for waivers/reimbursements it made to the Fund during the period the Fund was erroneously billed.

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 December 31, 2017 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.81% for Class A shares, 1.56% for Class C shares, 0.65% for Administrator Class shares, and 0.50% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 28, 2017, Funds Distributor received $2,992 from the sale of Class A shares and $1,000 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.

26 Wells Fargo Short-Term High Yield Bond 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 February 28, 2017 were $555,069,472 and $257,966,528, 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.

As of February 28, 2017, the Fund had unfunded term loan commitments of $86,350,212.

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.

For the six months ended February 28, 2017, 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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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 Short-Term High Yield 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 Short-Term High Yield Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 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 Short-Term High Yield 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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

30 Wells Fargo Short-Term High Yield Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302029 04-17 SA222/SAR222 2-17

Semi-Annual Report

February 28, 2017

Wells Fargo Ultra Short-Term 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
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	21
Statement of operations	22
Statement of changes in net assets	23
Financial highlights	24
Notes to financial statements	28
Other information	34
List of abbreviations	37

The views expressed and any forward-looking statements are as of February 28, 2017, 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 Income Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.01% and 5.15% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

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 Income Fund for the six-month period that ended February 28, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.01% and 5.15% for the six-month period, respectively, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)²; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.19%.

In September 2016, interest-rate uncertainty weighed somewhat on U.S. markets; bonds’ interest rates remained low.

Ever since the Great Recession, markets worldwide have been supported to varying degrees by accommodative policies from leading central banks, including the Federal Reserve (Fed), European Central Bank, Bank of England, and Bank of Japan. As a result, investors have watched closely for any signs that global central banks might tighten their measures. In the U.S., early-September comments by several Fed officials appeared to suggest a September interest-rate increase, which sent stock and bond prices downward. However, stocks surged following the Fed’s September 20 meeting on news that the Fed had decided to delay a rate increase to later in 2016. In bond markets, interest rates remained at low levels as a result of easy monetary policies, subdued global growth, and modest inflation expectations. Yields did rise, however, after bottoming in July, because market participants felt that yields had overshot the real risks of the U.K.’s Brexit vote and as economic activity strengthened.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. largely influenced the markets.

Early in the fourth quarter of 2016, U.S. stocks tended to trade lower amid concerns such as a likely interest-rate increase and uncertainty over the approaching general election. However, following Donald Trump’s election as president in early November, U.S. stocks began to rally. Investors appeared optimistic that the new administration would usher in a series of pro-growth policies, and supportive economic news helped the rally carry through the quarter. The buoyant environment sent interest rates higher as well. At its mid-December meeting, Fed officials raised their short-term target interest rate for the first time in a year, by a quarter percentage point, to between 0.50% and 0.75%. The fourth quarter also saw the implementation of the Securities and Exchange Commission’s new rules for money market funds, which included floating net asset values (NAVs) for institutional prime and municipal money market funds as well as liquidity fees and redemption gates. In the year leading up to money fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which continued to

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 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.

Letter to shareholders (unaudited) Wells Fargo Ultra Short-Term Income Fund 3

transact at a stable $1 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe. The improvement may be partly attributable to expectations for further strengthening of the U.S. dollar, which in turn could improve demand for European goods in the U.S. due to weakening of the euro relative to the dollar.

Investor optimism continued into February 2017.

January and February brought continued strength in global stock markets. Markets were lifted by factors such as strong trade data from Japan, robust earnings reports by businesses, and investors’ hopes that the U.S. government will approve pro-growth policies, such as a large fiscal stimulus package. Within fixed income, short-term interest rates rose modestly in anticipation of Fed interest-rate hikes. Meanwhile, 10-year Treasury yields ranged between 2.30% and 2.55%, appearing to plateau after the fourth quarter’s sell-off. Spreads of both investment-grade and high-yield bonds compressed slightly, and both taxable and municipal bond mutual fund flows were positive.

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

Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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

4 Wells Fargo Ultra Short-Term Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA^®

Jay N. Mueller, CFA^®

Thomas M. Price, CFA^®

Noah M. Wise, CFA^®

Average annual total returns (%) as of February 28, 2017¹

		Including sales charge								Excluding sales charge							Expense ratios2 (%)
	Inception date	1 year			5 year			10 year		1 year		5 year			10 year		Gross		Net3
Class A (SADAX)	8-31-1999		(0.38	)		0.34			1.00		1.65		0.75			1.20		0.80		0.71
Class C (WUSTX)	7-18-2008		(0.10	)		(0.01	)		0.44		0.90		(0.01	)		0.44		1.55		1.46
Administrator Class (WUSDX)	4-8-2005		–			–			–		1.93		0.90			1.36		0.74		0.56
Institutional Class (SADIX)	8-31-1999		–			–			–		2.01		1.10			1.56		0.47		0.36
Bloomberg Barclays Short-Term U.S. Government/Credit Bond Index4	–		–			–			–		0.85		0.39			1.27		–		–

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. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. 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 mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Ultra Short-Term Income Fund 5

Ten largest holdings (%) as of February 28, 20175
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-INN Class A, 1.69%, 6-15-2029	0.96
Bellsouth Corporation, 4.40%, 4-26-2021	0.94
Iowa Finance Authority Midwestern Disaster Area Project, 0.85%, 4-1-2022	0.93
Hyundai Auto Receivables Trust Series 2016-B Class A2, 1.34%, 10-15-2019	0.84
BMW Vehicle Lease Trust Series 2016-2 Class A2, 1.23%, 1-22-2019	0.80
Citibank Credit Card Issuance Trust Series 2017-A2 Class A2, 1.74%, 1-19-2021	0.77
Experian Finance plc, 2.38%, 6-15-2017	0.74
Toyota Auto Receivables Owner Trust Series 2016-D Class A2A, 1.06%, 5-15-2019	0.73
Baptist Memorial Health Care Corporation, 1.30%, 3-13-2017	0.71
GM Financial Automobile Leasing Trust Series 2015-1 Class A3, 1.53%, 9-20-2018	0.66

Portfolio allocation as of February 28, 2017⁶

¹  Effective June 20, 2008, Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Historical performance shown for Class A shares through June 19, 2008, includes Advisor Class expenses. Historical performance shown for Class C shares prior to their inception reflects the performance of the former Investor Class shares, adjusted to include the higher expenses applicable to Class C shares.

²  Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

³  The manager has contractually committed through December 31, 2017, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waivers at 0.70% for Class A, 1.45% for Class C, 0.55% for Administrator Class, and 0.35% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio or the Fund’s Total Annual Fund Operating Expenses After Fee Waivers, as stated in the prospectus.

⁴  The Bloomberg Barclays Short-Term U.S. Government/Credit Bond Index (formerly know as Barclays Short-Term U.S. Government/Credit Bond Index) contains securities that have fallen out of the Bloomberg Barclays U.S. Government/Credit Bond Index (formerly known as Barclays U.S. Government/ Credit Bond Index) because of the standard minimum one-year-to-maturity constraint. Securities in the Short-Term U.S. Government/Credit Bond Index must have a maturity from 1 up to (but not including) 12 months. 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 Ultra Short-Term Income Fund Fund expenses (unaudited)

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

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2016 to February 28, 2017.

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 9-1-2016		Ending account value 2-28-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,004.17	$	3.54		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68	$	3.57		0.70	%
Class C
Actual	$	1,000.00	$	1,000.46	$	7.31		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.90	$	7.38		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,004.91	$	2.78		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,005.91	$	1.77		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.44	$	1.79		0.35	%

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—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 9.36%
FDIC Series 2013-R1 Class A 144A		1.15	%		3-25-2033	$	2,067,600	$	2,042,089
FHLMC ±		2.68			4-1-2038		1,277,922		1,349,546
FHLMC ±		2.76			11-1-2035		4,126,688		4,368,464
FHLMC ±		2.76			9-1-2038		2,406,987		2,551,039
FHLMC ±		2.77			4-1-2032		104,898		110,387
FHLMC ±		2.77			10-1-2038		1,343,765		1,420,777
FHLMC ±		2.78			6-1-2032		5,239		5,499
FHLMC ±		2.79			3-1-2035		1,095,093		1,154,803
FHLMC ±		2.79			5-1-2035		592,236		625,818
FHLMC ±		2.83			1-1-2029		64,278		64,785
FHLMC ±		3.00			7-1-2029		2,612		2,717
FHLMC ±		3.06			10-1-2031		69,936		70,418
FHLMC		4.50			2-1-2020		811,760		833,784
FHLMC		4.50			8-1-2020		459,508		475,129
FHLMC		4.50			1-1-2022		372,799		381,961
FHLMC		4.50			6-1-2024		1,945,700		2,075,116
FHLMC		4.50			9-1-2026		3,395,054		3,607,528
FHLMC		5.00			12-1-2019		1,006,406		1,036,906
FHLMC		5.50			8-1-2018		151,480		153,914
FHLMC		5.50			12-1-2022		892,774		958,078
FHLMC		5.50			12-1-2023		966,781		1,038,175
FHLMC		6.00			5-1-2017		3,137		3,142
FHLMC		6.00			10-1-2021		1,353,336		1,436,245
FHLMC		6.00			10-1-2021		1,560,163		1,664,645
FHLMC		6.00			1-1-2024		1,030,566		1,104,853
FHLMC		7.00			6-1-2031		330,702		371,216
FHLMC		9.00			8-1-2018		1,437		1,446
FHLMC		9.00			10-1-2019		21,648		22,890
FHLMC		9.50			5-1-2020		14		14
FHLMC		9.50			9-1-2020		50,670		54,075
FHLMC		9.50			12-1-2022		47,990		51,034
FHLMC		10.00			11-17-2021		13,443		13,552
FHLMC		10.50			5-1-2020		48,353		52,037
FHLMC Series 2530 Class BH		5.00			11-15-2017		194,297		196,090
FHLMC Series 2617 Class GR		4.50			5-15-2018		103,619		105,036
FHLMC Series 2704 Class BH		4.50			11-15-2023		717,640		760,802
FHLMC Series 2707 Class QE		4.50			11-15-2018		296,448		302,175
FHLMC Series 2843 Class BC		5.00			8-15-2019		396,573		405,548
FHLMC Series 2849 Class B		5.00			8-15-2019		614,558		629,530
FHLMC Series 2855 Class WN		4.00			9-15-2019		129,109		131,571
FHLMC Series 2864 Class NB		5.50			7-15-2033		604,000		618,843
FHLMC Series 2881 Class AE		5.00			8-15-2034		405,752		427,570
FHLMC Series 2896 Class CB		4.50			11-15-2019		510,590		523,198
FHLMC Series 2953 Class LD		5.00			12-15-2034		315,293		327,512
FHLMC Series 3166 Class AC		5.00			6-15-2021		5,314,135		5,524,309
FHLMC Series 3266 Class D		5.00			1-15-2022		1,066,322		1,089,504
FHLMC Series 3346 Class FA ±		1.00			2-15-2019		4,948,425		4,945,831
FHLMC Series 3501 Class AC		4.00			8-15-2023		80,285		80,428
FHLMC Series 3574 Class EA		3.00			9-15-2021		95,067		95,718
FHLMC Series 3609 Class LA		4.00			12-15-2024		302,336		308,353

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

8 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series 3619 Class EB		3.50	%		5-15-2024	$	131,503	$	133,056
FHLMC Series 3706 Class AB		3.50			7-15-2020		86,113		86,175
FHLMC Series 3772 Class HC		3.00			10-15-2018		314,610		317,760
FHLMC Series 3780 Class GX		3.50			9-15-2028		1,305,688		1,322,826
FHLMC Series 3784 Class DA		4.00			7-15-2025		107,236		108,423
FHLMC Series 3821 Class LA		3.50			4-15-2025		420,095		427,996
FHLMC Series 3834 Class EA		3.50			6-15-2029		466,579		481,010
FHLMC Series 3842 Class CJ		2.00			9-15-2018		104,648		104,967
FHLMC Series 3878 Class JA		3.50			1-15-2025		84,179		84,616
FHLMC Series 3888 Class NA		2.25			1-15-2040		2,973,487		2,973,464
FHLMC Series 3898 Class NE		4.00			7-15-2040		481,153		491,458
FHLMC Series 4172 Class PB		1.50			7-15-2040		514,324		508,495
FHLMC Series 4318 Class LC		2.00			6-15-2038		989,826		989,020
FHLMC Series 4348 Class MH		3.00			6-15-2039		3,554,190		3,629,904
FHLMC Series K003 Class AAB		4.77			5-25-2018		461,583		469,747
FHLMC Series T-42 Class A6		9.50			2-25-2042		739,978		917,078
FNMA		1.77			9-1-2019		1,114,609		1,112,391
FNMA		2.00			4-1-2023		6,395,087		6,430,502
FNMA ±		2.42			10-1-2031		133,162		136,647
FNMA ±		2.48			1-1-2023		12,053		12,068
FNMA ±		2.58			12-1-2034		841,396		889,056
FNMA ±		2.64			9-1-2037		729,530		760,669
FNMA ±		2.67			5-1-2032		13,000		13,671
FNMA ±		2.70			11-1-2031		67,712		70,986
FNMA ±		2.75			2-1-2035		1,546,204		1,631,014
FNMA ±		2.76			4-1-2038		2,854,524		3,010,748
FNMA ±		2.77			7-1-2038		2,316,290		2,449,959
FNMA ±		2.78			12-1-2040		404,275		427,888
FNMA ±		2.79			11-1-2033		3,085,718		3,264,334
FNMA ±		2.81			8-1-2036		3,596,848		3,809,915
FNMA ±		2.82			6-1-2032		124,579		130,466
FNMA ±		2.83			11-1-2032		1,043,387		1,103,708
FNMA ±		2.83			6-1-2034		1,567,458		1,658,032
FNMA ±		2.83			5-1-2036		1,161,227		1,231,957
FNMA ±		2.90			5-1-2036		1,311,632		1,381,951
FNMA ±		2.91			8-1-2045		1,119,663		1,179,725
FNMA ±		2.94			11-1-2034		1,570,359		1,665,919
FNMA ±		3.02			2-1-2033		402,769		423,848
FNMA ±		3.08			9-1-2040		4,213,534		4,447,609
FNMA		3.18			12-1-2017		4,220,629		4,221,487
FNMA		3.19			12-1-2017		2,903,246		2,918,512
FNMA ±		4.15			4-1-2033		2,403		2,497
FNMA ±		4.33			7-1-2033		60,411		61,251
FNMA		4.50			6-1-2019		97,484		99,953
FNMA		4.50			1-1-2027		3,661,438		3,861,826
FNMA		5.00			6-1-2024		3,926,306		4,197,457
FNMA		5.23			7-1-2018		726,571		736,271
FNMA		5.29			6-1-2018		165,910		170,864
FNMA		6.00			4-1-2021		323,740		338,723
FNMA		6.50			8-1-2031		512,772		590,902

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		8.33	%		7-15-2020	$	16,615	$	17,618
FNMA		8.50			7-1-2017		7,370		7,392
FNMA		9.00			2-15-2020		59,400		63,991
FNMA		9.00			10-15-2021		24,890		26,809
FNMA		9.00			6-1-2024		36,880		39,109
FNMA		9.50			12-1-2020		40,411		43,138
FNMA		9.50			3-1-2021		1,161		1,172
FNMA		10.00			3-20-2018		2,025		2,052
FNMA		10.25			9-1-2021		28,786		29,196
FNMA		10.50			8-1-2020		2,587		2,673
FNMA		10.50			4-1-2022		9,789		9,893
FNMA Series 1988-4 Class Z		9.25			3-25-2018		4,673		4,733
FNMA Series 1988-9 Class Z		9.45			4-25-2018		2,602		2,647
FNMA Series 1989-30 Class Z		9.50			6-25-2019		26,369		27,937
FNMA Series 1989-49 Class E		9.30			8-25-2019		2,372		2,470
FNMA Series 1990-21 Class Z		9.00			3-25-2020		65,012		70,430
FNMA Series 1990-27 Class Z		9.00			3-25-2020		31,797		34,352
FNMA Series 1990-30 Class D		9.75			3-25-2020		9,458		10,297
FNMA Series 1990-77 Class D		9.00			6-25-2020		22,684		24,707
FNMA Series 1990-111 Class Z		8.75			9-25-2020		7,842		8,491
FNMA Series 1990-119 Class J		9.00			10-25-2020		34,704		38,002
FNMA Series 1990-124 Class Z		9.00			10-25-2020		12,621		13,809
FNMA Series 1991-132 Class Z		8.00			10-25-2021		67,410		74,031
FNMA Series 1992-71 Class X		8.25			5-25-2022		38,610		43,379
FNMA Series 2000-T6 Class A2		9.50			6-25-2030		436,665		513,219
FNMA Series 2001-T10 Class A3		9.50			12-25-2041		906,331		1,023,849
FNMA Series 2001-T12 Class A3		9.50			8-25-2041		779,479		967,110
FNMA Series 2002-94 Class BK		5.50			1-25-2018		299		300
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		1,015,568		1,217,564
FNMA Series 2002-W04 Class A6 ±		3.62			5-25-2042		904,043		954,189
FNMA Series 2003-15 Class CN		5.00			3-25-2018		73,908		74,821
FNMA Series 2003-35 Class BC		5.00			5-25-2018		149,543		152,216
FNMA Series 2003-35 Class ME		5.00			5-25-2018		80,900		82,098
FNMA Series 2003-92 Class PE		4.50			9-25-2018		247,764		253,909
FNMA Series 2003-125 Class AY		4.00			12-25-2018		593,527		602,330
FNMA Series 2003-129 Class AP		4.00			1-25-2019		16,350		16,400
FNMA Series 2003-W11 Class A1 ±		4.29			6-25-2033		40,383		42,256
FNMA Series 2003-W3 Class 1A4 ±		3.62			8-25-2042		45,287		47,279
FNMA Series 2004-10 Class FA ±		1.13			2-25-2034		859,104		861,543
FNMA Series 2004-17 Class HJ		4.75			4-25-2019		848,351		865,561
FNMA Series 2004-32 Class AY		4.00			5-25-2019		49,292		50,499
FNMA Series 2004-92 Class QY		4.50			8-25-2034		370,795		379,537
FNMA Series 2007-W2 Class 1A1 ±		1.10			3-25-2037		614,332		614,614
FNMA Series 2008-76 Class GF ±		1.43			9-25-2023		221,750		221,956
FNMA Series 2008-81 Class LK		5.00			9-25-2023		127,435		129,797
FNMA Series 2009-31 Class B		4.00			5-25-2024		3,865,979		3,993,483
FNMA Series 2009-76 Class HA		4.00			1-25-2019		51,247		51,534
FNMA Series 2010-25 Class ND		3.50			3-25-2025		181,846		185,479
FNMA Series 2010-57 Class DQ		3.00			6-25-2025		467,538		476,961
FNMA Series 2010-115 Class NC		2.75			1-25-2039		1,458,121		1,483,941

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

10 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2010-153 Class AB		2.00	%		11-25-2018	$	367,155	$	368,246
FNMA Series 2010-153 Class BG		2.50			11-25-2018		359,236		361,081
FNMA Series 2011-122 Class A		3.00			12-25-2025		812,833		828,597
FNMA Series 2011-129 Class LG		3.00			3-25-2037		224,373		226,251
FNMA Series 2011-33 Class GA		3.50			10-25-2028		568,455		577,493
FNMA Series 2011-40 Class CA		3.50			12-25-2028		1,848,082		1,893,349
FNMA Series 2011-42 Class A		3.00			2-25-2024		2,122,207		2,152,049
FNMA Series 2011-56 Class AC		2.00			7-25-2018		63,435		63,502
FNMA Series 2011-99 Class AB		4.00			12-25-2038		64,835		65,205
FNMA Series 2012-72 Class QE		3.00			1-25-2038		855,708		875,759
FNMA Series 2012-94 Class E		3.00			6-25-2022		74,412		75,734
FNMA Series 2013-M12 Class A		1.53			10-25-2017		122,235		122,301
FNMA Series 2014-19 Class HA		2.00			6-25-2040		1,441,388		1,426,675
GNMA		7.00			6-15-2033		493,159		593,160
GNMA		9.00			11-15-2017		1,376		1,381
GNMA		9.50			11-15-2017		556		558
GNMA		10.00			10-20-2017		1,098		1,103
GNMA Series 2009-122 Class AC		4.00			3-16-2023		183,686		185,426
GNMA Series 2010-27 Class AK		4.00			2-16-2023		274,867		276,441
GNMA Series 2010-43 Class JA		3.00			9-20-2037		35,711		35,759
GNMA Series 2010-69 Class DQ		2.75			4-20-2040		47,178		47,445
GNMA Series 2012-57 Class LG		1.50			3-16-2035		627,449		627,413
GNMA Series 2016-H19 Class FE ±		1.14			6-20-2061		5,973,237		5,955,444
Total Agency Securities (Cost $145,193,924)									145,684,046
Asset-Backed Securities: 13.56%
Ally Auto Receivables Trust Series 2015-2 Class A2A		0.98			3-15-2018		332,597		332,585
Avis Budget Rental Car Funding LLC Series 2013-1A Class A 144A		1.92			9-20-2019		7,250,000		7,248,664
BMW Vehicle Lease Trust Series 2015-2 Class A2A		1.07			1-22-2018		4,506,304		4,505,899
BMW Vehicle Lease Trust Series 2016-2 Class A2		1.23			1-22-2019		12,420,000		12,411,177
CarMax Auto Owner Trust Series 2015-3 Class A2A		1.10			11-15-2018		1,837,696		1,837,196
Citibank Credit Card Issuance Trust Series 2017-A2 Class A2		1.74			1-19-2021		12,000,000		12,018,241
CNH Equipment Trust Series 2015-C Class A2A		1.10			12-17-2018		3,646,692		3,644,416
CNH Equipment Trust Series 2016-B Class A2A		1.31			10-15-2019		3,319,381		3,316,360
CNH Equipment Trust Series 2016-C Class A2		1.26			2-18-2020		8,500,000		8,483,781
Dell Equipment Finance Trust Series 2015-2 Class A2A 144A		1.42			12-22-2017		862,066		862,208
Dell Equipment Finance Trust Series 2016-1 Class A2 144A		1.43			9-24-2018		7,825,000		7,821,969
Education Loan Asset-Backed Trust Series 2013-1 Class A1 144A±		1.57			6-25-2026		6,504,958		6,513,084
Ford Credit Auto Lease Trust Series 2016-A Class A2A		1.42			11-15-2018		6,667,487		6,670,852
GM Financial Automobile Leasing Trust Series 2015-1 Class A3		1.53			9-20-2018		10,205,975		10,216,408
GM Financial Automobile Leasing Trust Series 2015-2 Class A2A		1.18			4-20-2018		3,032,744		3,032,247
GM Financial Automobile Leasing Trust Series 2016-2 Class A2A		1.28			10-22-2018		3,286,768		3,283,376
Harley-Davidson Motorcycle Trust Series 2015-1 Class A3		1.41			6-15-2020		2,830,000		2,829,635
Harley-Davidson Motorcycle Trust Series 2016-A Class A2		1.09			6-15-2019		4,384,041		4,380,704
Hyundai Auto Lease Securitization Trust Series 2015-B Class A2A 144A		0.95			12-15-2017		423,137		423,112
Hyundai Auto Lease Securitization Trust Series 2016-C Class A2 144A		1.30			3-15-2019		9,000,000		8,987,729
Hyundai Auto Receivables Trust Series 2015-C Class A2A		0.99			11-15-2018		1,944,077		1,942,795
Hyundai Auto Receivables Trust Series 2016-B Class A2		1.34			10-15-2019		13,090,000		13,067,802
John Deere Owner Trust Series 2016-A Class A2		1.15			10-15-2018		5,173,727		5,172,700
John Deere Owner Trust Series 2016-A Class A3		1.36			4-15-2020		2,000,000		1,994,424
John Deere Owner Trust Series 2017-A Class A2 %%		1.50			10-15-2019		5,000,000		4,999,980

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Kubota Credit Owner Trust Series 2016-1A Class A2 144A		1.25	%		4-15-2019	$	5,710,000	$	5,697,228
Mercedes-Benz Auto Lease Trust Series 2016-B Class A2		1.25			1-15-2019		5,700,000		5,694,010
Mercedes-Benz Auto Receivables Trust Series 2015-1 Class A2A		0.82			6-15-2018		2,250,609		2,249,904
Mercedes-Benz Auto Receivables Trust Series 2016-1 Class A2A		1.11			3-15-2019		5,725,000		5,721,373
MMAF Equipment Finance LLC Series 2016-AA Class A2 144A		1.39			12-17-2018		10,109,496		10,109,836
Nissan Auto Lease Trust Series 2016-A Class A2A		1.22			8-15-2018		6,148,559		6,146,416
Nissan Auto Lease Trust Series 2016-B Class A2A		1.45			12-17-2018		4,255,000		4,249,938
SLM Student Loan Trust Series 2004-1 Class A3 ±		1.25			4-25-2023		1,128,230		1,127,019
SLM Student Loan Trust Series 2004-8A Class A5 144A±		1.54			4-25-2024		1,463,142		1,466,970
SLM Student Loan Trust Series 2006-2 Class A5 ±		1.15			7-25-2025		2,557,691		2,553,582
Toyota Auto Receivables Owner Trust Series 2016-D Class A2A		1.06			5-15-2019		11,310,000		11,286,626
Volvo Financial Equipment LLC Series 2016-1A Class A2 144A		1.44			10-15-2018		3,448,619		3,449,778
Volvo Financial Equipment LLC Series 2016-1A Class A3 144A		1.67			2-18-2020		325,000		325,105
World Omni Auto Receivables Trust Series 2015-A Class A2A		1.06			5-15-2018		4,304,467		4,302,847
World Omni Auto Receivables Trust Series 2016-B Class A2		1.10			1-15-2020		8,535,000		8,513,147
World Omni Automobile Lease Securitization Trust Series 2016-A Class A2A		1.20			2-15-2019		2,047,328		2,043,602
Total Asset-Backed Securities (Cost $211,076,399)									210,934,725
Corporate Bonds and Notes: 29.82%
Consumer Discretionary: 1.62%
Household Durables: 0.20%
D.R. Horton Incorporated		3.75			3-1-2019		2,990,000		3,071,657
Media: 1.42%
Time Warner Cable Incorporated		4.88			3-15-2020		6,010,000		6,445,208
Time Warner Cable Incorporated		6.75			7-1-2018		7,245,000		7,691,205
Viacom Incorporated		2.20			4-1-2019		8,000,000		7,990,640
									22,127,053
Consumer Staples: 1.42%
Beverages: 0.58%
Anheuser-Busch InBev Finance Company		1.90			2-1-2019		9,000,000		9,026,964
Food Products: 0.45%
Kraft Heinz Foods Company		1.60			6-30-2017		7,000,000		7,012,376
Tobacco: 0.39%
Altria Group Incorporated		9.70			11-10-2018		3,625,000		4,098,113
Reynolds American Incorporated		8.13			6-23-2019		1,793,000		2,031,248
									6,129,361
Energy: 2.11%
Energy Equipment & Services: 0.33%
Texas Eastern Transmission LP 144A		6.00			9-15-2017		5,000,000		5,110,440
Oil, Gas & Consumable Fuels: 1.78%
DCP Midstream Operating Company		2.50			12-1-2017		7,628,000		7,628,000
Enable Midstream Partner LP		2.40			5-15-2019		7,465,000		7,406,131

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

12 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Energy Transfer Partners LP		2.50	%		6-15-2018	$	5,000,000	$	5,035,610
Kinder Morgan Incorporated		7.00			6-15-2017		4,574,000		4,644,988
Kinder Morgan Incorporated		7.25			6-1-2018		2,000,000		2,128,638
Rockies Express Pipeline 144A		6.85			7-15-2018		802,000		844,105
									27,687,472
Financials: 16.50%
Banks: 5.73%
Bank of America Corporation		1.70			8-25-2017		4,000,000		4,006,760
Bank of America Corporation		5.30			3-15-2017		5,915,000		5,923,453
Bank of America Corporation		5.70			5-2-2017		5,010,000		5,044,238
Citigroup Incorporated		2.45			1-10-2020		4,000,000		4,018,268
Citigroup Incorporated		2.50			7-29-2019		6,087,000		6,145,472
Discover Bank		2.60			11-13-2018		5,000,000		5,054,235
Fifth Third Bank		2.30			3-15-2019		4,470,000		4,504,942
HSBC Bank USA		6.00			8-9-2017		8,000,000		8,153,560
Huntington National Bank		2.20			11-6-2018		5,000,000		5,023,440
JPMorgan Chase Bank		1.45			9-21-2018		2,000,000		1,994,468
KeyBank Corporation		4.63			6-15-2018		7,730,000		7,985,631
National Australia Bank		2.25			1-10-2020		8,000,000		8,017,368
Rabobank Nederland NY		1.38			8-9-2019		7,000,000		6,892,305
Regions Bank		2.25			9-14-2018		8,000,000		8,033,096
Santander Bank		8.75			5-30-2018		7,700,000		8,308,262
									89,105,498
Capital Markets: 2.11%
Goldman Sachs Group Incorporated		2.00			4-25-2019		4,000,000		3,993,096
Goldman Sachs Group Incorporated		6.15			4-1-2018		5,085,000		5,326,029
Morgan Stanley		1.88			1-5-2018		6,060,000		6,079,622
Morgan Stanley		2.20			12-7-2018		4,000,000		4,021,504
Morgan Stanley		2.45			2-1-2019		1,960,000		1,977,485
S&P Global Incorporated		2.50			8-15-2018		1,450,000		1,462,242
Thomson Reuters Corporation		1.65			9-29-2017		10,000,000		10,015,640
									32,875,618
Consumer Finance: 5.15%
Ally Financial Incorporated		3.25			11-5-2018		7,665,000		7,799,138
American Express Credit Corporation		1.80			7-31-2018		8,000,000		8,017,728
American Express Credit Corporation %%		2.20			3-3-2020		3,765,000		3,761,084
Daimler Finance North America LLC 144A		1.50			7-5-2019		3,000,000		2,963,451
Daimler Finance North America LLC 144A		1.60			8-3-2017		5,000,000		5,002,615
Discover Financial Services Company		6.45			6-12-2017		570,000		577,400
ERAC USA Finance LLC 144A		2.75			3-15-2017		750,000		750,417
Ford Motor Credit Company LLC		2.24			6-15-2018		3,000,000		3,013,263
Ford Motor Credit Company LLC		2.94			1-8-2019		3,665,000		3,725,110
Ford Motor Credit Company LLC		6.63			8-15-2017		5,180,000		5,297,115
General Motors Financial Company		2.40			4-10-2018		10,000,000		10,064,090
Harley-Davidson Financial Services Incorporated 144A		2.70			3-15-2017		6,000,000		6,003,486

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance (continued)
Hyundai Capital America Company 144A		2.40	%		10-30-2018	$	7,000,000	$	7,024,654
Nissan Motor Acceptance Corporation 144A		2.00			3-8-2019		3,500,000		3,501,222
Nissan Motor Acceptance Corporation 144A		2.25			1-13-2020		4,000,000		4,014,148
Toll Brothers Finance Corporation		8.91			10-15-2017		8,405,000		8,741,200
									80,256,121
Diversified Financial Services: 0.63%
AIG Global Funding 144A		1.65			12-15-2017		4,000,000		4,007,344
Voya Financial Incorporated		2.90			2-15-2018		5,722,000		5,786,167
									9,793,511
Insurance: 2.88%
American Financial Group Incorporated		9.88			6-15-2019		6,445,000		7,502,135
Metropolitan Life Global Funding Incorporated 144A		1.55			9-13-2019		5,180,000		5,117,218
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		8,075,000		8,177,375
Protective Life Global Funding 144A		1.56			9-13-2019		3,705,000		3,647,732
Provident Companies Incorporated		7.00			7-15-2018		6,736,000		7,178,043
Reinsurance Group of America		5.63			3-15-2017		5,520,000		5,528,749
Reliance Standard Life Insurance 144A		2.15			10-15-2018		7,610,000		7,634,900
									44,786,152
Health Care: 1.31%
Biotechnology: 0.61%
Biogen Incorporated		6.88			3-1-2018		8,975,000		9,448,027
Health Care Providers & Services: 0.47%
UnitedHealth Group Incorporated		1.45			7-17-2017		3,625,000		3,628,658
UnitedHealth Group Incorporated		1.90			7-16-2018		3,625,000		3,648,494
									7,277,152
Pharmaceuticals: 0.23%
Mylan NV Company		2.50			6-7-2019		3,640,000		3,640,844
Industrials: 1.07%
Aerospace & Defense: 0.40%
L-3 Communications Corporation		5.20			10-15-2019		5,742,000		6,172,598
Airlines: 0.16%
US Airways Incorporated Series B (i)		8.50			10-22-2018		2,395,068		2,430,994
Construction & Engineering: 0.13%
SBA Tower Trust 144A		3.60			4-15-2043		2,080,000		2,085,966
Machinery: 0.19%
Stanley Black & Decker Incorporated		1.62			11-17-2018		3,000,000		2,992,839
Transportation Infrastructure: 0.19%
TTX Company 144A		2.25			2-1-2019		2,905,000		2,907,827

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

14 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 1.78%
IT Services: 0.19%
Fidelity National Information Services Incorporated		1.45	%		6-5-2017	$	3,000,000	$	3,000,909
Semiconductors & Semiconductor Equipment: 0.64%
KLA-Tencor Corporation		2.38			11-1-2017		10,000,000		10,037,680
Technology Hardware, Storage & Peripherals: 0.95%
Diamond 1 Finance Corporation 144A		3.48			6-1-2019		7,260,000		7,421,600
Hewlett Packard Enterprise Company		2.45			10-5-2017		7,215,000		7,247,071
									14,668,671
Materials: 1.00%
Chemicals: 0.37%
CF Industries Incorporated		6.88			5-1-2018		5,503,000		5,774,023
Construction Materials: 0.63%
Martin Marietta Material ±		2.10			6-30-2017		9,690,000		9,708,421
Telecommunication Services: 1.10%
Diversified Telecommunication Services: 1.10%
Bellsouth Corporation 144A		4.40			4-26-2021		14,535,000		14,613,562
CenturyLink Incorporated		5.15			6-15-2017		1,500,000		1,511,430
CenturyLink Incorporated		6.00			4-1-2017		1,000,000		1,002,575
									17,127,567
Utilities: 1.91%
Electric Utilities: 1.44%
Eversource Energy		1.60			1-15-2018		5,000,000		4,993,685
Exelon Corporation		1.55			6-9-2017		10,000,000		10,002,430
NextEra Energy Capital Holdings Incorporated		2.06			9-1-2017		7,275,000		7,302,529
									22,298,644
Multi-Utilities: 0.47%
Black Hills Corporation		2.50			1-11-2019		3,645,000		3,668,321
Dominion Resources Incorporated		2.96			7-1-2019		3,635,000		3,679,423
									7,347,744
Total Corporate Bonds and Notes (Cost $463,104,259)									463,902,129
Municipal Obligations: 6.67%
Alabama: 0.06%
Jefferson County AL Warrants Series D (GO Revenue)		4.90			4-1-2017		880,000		880,537
California: 0.75%
Colton CA Pension Funding (GO Revenue, Ambac Insured)		5.65			8-1-2017		550,000		555,643
Los Angeles CA Municipal Improvement Refunding Bond Convention Center Series A (Miscellaneous Revenue)		2.34			11-1-2018		3,620,000		3,667,893
Sacramento CA City Financing Authority (Miscellaneous Revenue, National Insured) ±		1.27			7-15-2027		7,500,000		7,467,075
									11,690,611

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Connecticut: 0.19%
Connecticut Series A (GO Revenue)		5.46	%		3-1-2019	$	2,840,000	$	2,942,240
Florida: 0.31%
Escambia County FL HFA Acts Retirement-Life Communities Incorporated Series B (Health Revenue, AGC Insured, TD Bank NA SPA) ø		0.74			11-15-2029		4,750,000		4,750,000
Illinois: 0.88%
Chicago IL Taxable Second Lien Series A2 (Water & Sewer Revenue)		1.68			11-1-2017		5,000,000		4,997,700
Illinois Finance Authority (GO Revenue)		5.37			3-1-2017		1,850,000		1,850,759
Illinois Finance Authority (GO Revenue)		5.67			3-1-2018		625,000		645,019
State of Illinois (GO Revenue)		4.35			6-1-2018		1,096,333		1,109,873
State of Illinois (Miscellaneous Revenue)		5.00			5-1-2019		4,930,000		5,161,759
									13,765,110
Iowa: 0.93%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.85			4-1-2022		14,500,000		14,500,000
Michigan: 0.16%
Michigan Finance Authority Sub Series C-2 (Miscellaneous Revenue, Municipal Government Guaranty Insured)		1.61			11-1-2018		1,000,000		1,001,370
Michigan Finance Authority Sub Series C-4 (Miscellaneous Revenue, Municipal Government Guaranty Insured)		2.06			4-1-2018		1,000,000		997,120
Michigan Finance Authority Sub Series C-4 (Miscellaneous Revenue, Municipal Government Guaranty Insured)		2.27			4-1-2019		500,000		494,820
									2,493,310
New Jersey: 1.27%
New Jersey EDA School Facilities Series QQ (Education Revenue)		1.80			6-15-2017		10,000,000		10,026,625
New Jersey EDA Series B (Miscellaneous Revenue, AGM Insured) ¤		0.00			2-15-2018		10,000,000		9,807,400
									19,834,025
New York: 0.92%
Nassau County NY Series D (GO Revenue)		1.40			12-15-2017		6,000,000		6,012,420
New York NY Adjusted Fiscal 2015 Sub Series F-5 (GO Revenue, Barclays Bank plc LIQ) ø		0.57			6-1-2044		8,315,000		8,315,000
									14,327,420
Tennessee: 0.71%
Baptist Memorial Health Care Corporation (Health Revenue)		1.30			3-13-2017		11,031,000		11,031,000
Wisconsin: 0.49%
Wisconsin Healthcare PFA (Housing Revenue, Citizens Bank LOC)		2.63			11-1-2019		7,610,000		7,598,205
Total Municipal Obligations (Cost $103,632,639)									103,812,458
Non-Agency Mortgage-Backed Securities: 13.99%
Banc of America Funding Corporation Series 2016-R1 Class A1 144A±		2.50			3-25-2040		3,275,040		3,209,883
Bank of America Commercial Mortgage Trust Series 2007-3 Class A1A ±		5.60			6-10-2049		78,079		78,050
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		3.25			10-20-2032		1,988		1,993
CCG Receivables Trust Series 2015-1 Class A2 144A		1.46			11-14-2018		3,215,044		3,213,622

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

16 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
CCG Receivables Trust Series 2015-1 Class A3 144A		1.92	%		1-17-2023	$	2,500,000	$	2,501,329
CCG Receivables Trust Series 2016-1 Class A2 144A		1.69			9-14-2022		5,520,000		5,510,312
CD Commercial Mortgage Trust Series 2017-CD3 Class A1		1.97			2-10-2050		5,295,000		5,286,975
CFCRE Commercial Mortgage Trust Series 2015-RUM Class A 144A±		2.47			7-15-2030		3,000,000		3,004,442
Citigroup Commercial Mortgage Trust Series 2008-C7 Class AMA ±		6.13			12-10-2049		1,000,000		1,021,908
Citigroup Commercial Mortgage Trust Series 2014-GC21 Class A2		2.90			5-10-2047		750,000		763,730
Citigroup Commercial Mortgage Trust Series 2014-GC25 Class A2		3.26			10-10-2047		3,563,000		3,655,231
Citigroup Commercial Mortgage Trust Series 2015-GC27 Class A2		2.69			2-10-2048		4,000,000		4,057,778
Cobalt Commercial Mortgage Trust Series 2007-C2 Class AMFX ±		5.53			4-15-2047		4,071,000		4,099,571
Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			9-20-2021		27,871		29,715
Commercial Mortgage Trust Series 2012-CR2 Class A2		2.03			8-15-2045		736,510		736,678
Commercial Mortgage Trust Series 2012-CR4 Class A2		1.80			10-15-2045		5,638,000		5,649,653
Commercial Mortgage Trust Series 2013-CR7 Class A2		2.02			3-10-2046		1,800,644		1,806,332
Commercial Mortgage Trust Series 2013-LC6 Class A2		1.91			1-10-2046		1,795,000		1,801,065
Commercial Mortgage Trust Series 2014-BBG Class A 144A±		1.57			3-15-2029		5,400,000		5,408,473
Commercial Mortgage Trust Series 2014-LC15 Class A2		2.84			4-10-2047		3,033,000		3,085,824
Commercial Mortgage Trust Series 2014-LC17 Class A2		3.16			10-10-2047		7,925,000		8,126,917
Commercial Mortgage Trust Series 2014-UBS3 Class A2		2.84			6-10-2047		2,900,000		2,951,369
Commercial Mortgage Trust Series 2014-UBS5 Class A2		3.03			9-10-2047		3,920,000		3,990,255
Commercial Mortgage Trust Series 2015-LC23 Class A1		1.81			10-10-2048		7,967,718		7,962,024
Cosmopolitan Hotel Trust Series 2016 Class A 144A±		2.17			11-15-2033		6,815,000		6,881,011
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1 ±		2.55			6-19-2031		518,161		495,050
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		2.39			6-19-2031		103,618		94,466
Credit Suisse Mortgage Trust Series 2007-C3 Class A4 ±		5.67			6-15-2039		199,834		200,294
CSAIL Commercial Mortgage Trust Series 2015-C4 Class A1		2.01			11-15-2048		2,204,180		2,204,326
DLJ Mortgage Acceptance Corporation Series 1990-2 Class A ±(i)		3.40			1-25-2022		37,961		37,520
DLJ Mortgage Acceptance Corporation Series 1991-3 Class A1 ±(i)		2.38			1-25-2021		3,530		3,543
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.90			9-25-2033		535,761		519,250
Equity Mortgage Trust Series 2014-INNS Class A 144A±		1.63			5-8-2031		8,110,890		8,118,500
GE Commercial Mortgage Corporation Series 2007-C1 Class A4		5.54			12-10-2049		156,884		156,822
GS Mortgage Securities Trust Series 2013-GC12 Class A2		2.01			6-10-2046		1,110,621		1,113,971
GS Mortgage Securities Trust Series 2014-GSFL Class A 144A±		1.70			7-15-2031		3,408,387		3,407,905
GS Mortgage Securities Trust Series 2015-GS1 Class A1		1.94			11-10-2048		839,401		832,972
GS Mortgage Securities Trust Series 2016-GS3 Class A1		1.43			10-10-2049		2,115,289		2,088,526
GS Mortgage Securities Trust Series 2016-ICE2 Class A 144A±		2.70			2-15-2033		4,945,000		4,989,969
GSMPS Mortgage Loan Trust Series 1998-1 Class A 144A±		8.00			9-19-2027		49,843		50,982
Housing Securities Incorporated Series 1992-8 Class E ±		4.27			6-25-2024		61,628		62,062
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class AMFL ±		0.93			6-12-2047		6,384,359		6,293,454
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LD12 Class A4 ±		5.88			2-15-2051		626,064		631,120
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-C8 Class A2		1.80			10-15-2045		183,648		183,866
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-LC9 Class A3		2.48			12-15-2047		3,000,000		3,015,356
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-INN Class A 144A±		1.69			6-15-2029		15,000,000		15,014,096
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-PHH Class A 144A±		1.97			8-15-2027		10,000,000		9,999,815
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-C33 Class A1		1.90			12-15-2048		7,962,953		7,963,336

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-FL7 Class A 144A±		2.02	%		5-15-2028	$	5,260,001	$	5,251,132
JPMorgan Chase Commercial Mortgage Securities Trust Series 2016-ASH Class A 144A±		2.27			10-15-2034		4,700,000		4,723,422
JPMorgan Chase Commercial Mortgage Securities Trust Series 2016-JP3 Class A1		1.46			8-15-2049		4,528,958		4,469,826
JPMorgan Chase Commercial Mortgage Securities Trust Series 2016-WSP Class A 144A±		2.12			8-15-2033		8,000,000		8,037,676
Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C6 Class A4 ±		5.86			7-15-2040		3,877,270		3,893,594
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.97			10-25-2032		11,134		10,997
Morgan Stanley BAML Trust Series 2013-C10 Class A2		2.96			7-15-2046		3,350,000		3,386,717
Morgan Stanley BAML Trust Series 2013-C11 Class A2		3.09			8-15-2046		3,475,832		3,533,779
Morgan Stanley BAML Trust Series 2014-C15 Class A2		2.98			4-15-2047		2,940,000		2,997,047
Morgan Stanley BAML Trust Series 2016-C28 Class A1		1.53			1-15-2049		2,217,621		2,197,010
Morgan Stanley Capital I Trust Series 2007-IQ Class A4		5.81			12-12-2049		5,223,306		5,275,276
Morgan Stanley Capital I Trust Series 2007-IQ16 Class AMA ±		6.05			12-12-2049		1,420,000		1,451,112
Morgan Stanley Capital I Trust Series 2016-C30 Class A1		1.39			9-15-2049		7,123,692		7,027,487
Morgan Stanley Mortgage Trust Series 35 Class 2 ±(i)(w)		14,404.34			4-20-2021		1		78
Prudential Home Mortgage Securities Series 1988-1 Class A ±		0.00			4-25-2018		2,876		2,884
Resecuritization Mortgage Trust Series 1998-B Class A 144A±		1.03			4-26-2021		1,780		1,750
Salomon Brothers Mortgage Securities VII Series 1990-2 Class A ±		3.09			11-25-2020		250,165		252,052
SCG Trust Series 2013-SRP1 Class A 144A±		2.42			11-15-2026		7,500,000		7,497,644
Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A2 ±		9.06			10-25-2024		30,219		30,798
Structured Asset Securities Corporation Series 1998-2 Class A ±		1.30			2-25-2028		283,922		276,480
UBS Barclays Commercial Mortgage Trust Series 2012-C4 Class A2		1.71			12-10-2045		3,215,591		3,218,867
WaMu Commercial Mortgage Securities Trust Series 2007-SL3 Class AJ 144A±		5.74			3-23-2045		1,191,468		1,189,464
Wilshire Funding Corporation Series 1996-3 Class M2 ±		7.14			8-25-2032		134,807		130,821
Wilshire Funding Corporation Series 1996-3 Class M3 ±		7.14			8-25-2032		126,374		120,124
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12-28-2037		429,601		430,561
Total Non-Agency Mortgage-Backed Securities (Cost $218,510,123)									217,717,939
Yankee Corporate Bonds and Notes: 19.09%
Consumer Discretionary: 0.51%
Media: 0.51%
British Sky Broadcasting Group plc 144A		9.50			11-15-2018		7,000,000		7,857,122
Consumer Staples: 2.10%
Beverages: 0.59%
Suntory Holdings Limited 144A		1.65			9-29-2017		9,120,000		9,126,393
Food & Staples Retailing: 0.47%
Delhaize Group SA		6.50			6-15-2017		7,270,000		7,364,132
Tobacco: 1.04%
British American Tobacco International Finance plc 144A		1.85			6-15-2018		5,700,000		5,700,884
British American Tobacco International Finance plc 144A		2.13			6-7-2017		3,000,000		3,004,764
Imperial Tobacco Finance plc 144A		2.05			7-20-2018		7,500,000		7,508,558
									16,214,206

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

18 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Energy: 0.57%
Energy Equipment & Services: 0.20%
Noble Holding International Limited		2.50	%		3-15-2017	$	3,000,000	$	2,996,250
Oil, Gas & Consumable Fuels: 0.37%
TransCanada PipeLines Limited		1.63			11-9-2017		5,790,000		5,793,457
Financials: 11.97%
Banks: 8.24%
ABN Amro Bank NV 144A		1.80			9-20-2019		7,000,000		6,928,579
ABN Amro Bank NV 144A		2.10			1-18-2019		4,000,000		4,007,296
ANZ New Zealand International Limited 144A		2.60			9-23-2019		8,175,000		8,241,495
Banco de Credito del Peru 144A		2.25			10-25-2019		4,500,000		4,471,875
Bank of Tokyo-Mitsubishi UFJ Limited 144A		2.15			9-14-2018		3,000,000		3,008,175
Bank of Tokyo-Mitsubishi UFJ Limited 144A		1.20			3-10-2017		6,000,000		6,000,480
BNP Paribas SA		2.38			9-14-2017		3,700,000		3,720,646
BPCE SA		1.61			7-25-2017		10,000,000		9,999,910
Commonwealth Bank of Australia 144A«		1.75			11-7-2019		5,250,000		5,198,744
Credit Suisse		6.00			2-15-2018		7,500,000		7,792,553
Experian Finance plc 144A		2.38			6-15-2017		11,500,000		11,527,048
ING Bank NV 144A		1.65			8-15-2019		7,000,000		6,907,887
Lloyds Bank plc		2.00			8-17-2018		8,000,000		8,027,456
Santander UK plc		2.50			3-14-2019		7,250,000		7,311,676
Shinhan Bank 144A±		1.66			4-8-2017		5,000,000		5,001,500
Sumitomo Mitsui Banking Corporation		1.35			7-11-2017		5,000,000		5,001,630
Sumitomo Mitsui Banking Corporation		2.05			1-18-2019		3,250,000		3,253,263
Svenska Handelsbanken AB		1.50			9-6-2019		7,395,000		7,288,512
Toronto Dominion Bank		1.45			9-6-2018		9,615,000		9,602,529
Westpac Banking Corporation		1.60			8-19-2019		5,000,000		4,951,230
									128,242,484
Capital Markets: 1.08%
BP Capital Markets plc		1.68			5-3-2019		7,000,000		6,969,900
Brookfield Asset Management Incorporated		5.80			4-25-2017		5,775,000		5,809,979
Macquarie Group Limited 144A		3.00			12-3-2018		4,000,000		4,059,620
									16,839,499
Diversified Financial Services: 2.14%
AerCap Ireland Capital Limited		2.75			5-15-2017		9,130,000		9,152,659
Corporacion Andina de Fomento		2.00			5-10-2019		8,000,000		8,018,823
Deutsche Bank AG (London)		6.00			9-1-2017		5,000,000		5,104,700
Shell International Finance BV		1.25			11-10-2017		7,000,000		7,002,345
Shell International Finance BV		1.38			5-10-2019		4,000,000		3,968,120
									33,246,647
Insurance: 0.51%
QBE Insurance Group Limited 144A		2.40			5-1-2018		7,960,000		7,963,654

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

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 1.57%
Pharmaceuticals: 1.57%
Actavis Funding SCS		2.35	%		3-12-2018	$	8,265,000	$	8,323,739
Perrigo Company plc		2.30			11-8-2018		8,225,000		8,238,292
Teva Pharmaceuticals Industries Incorporated		1.70			7-19-2019		8,000,000		7,894,632
									24,456,663
Industrials: 0.39%
Transportation Infrastructure: 0.39%
Asciano Finance Limited 144A		5.00			4-7-2018		5,903,000		6,053,922
Materials: 0.57%
Metals & Mining: 0.57%
Codelco Incorporated 144A		7.50			1-15-2019		8,000,000		8,797,254
Real Estate: 0.26%
Real Estate Management & Development: 0.26%
Korea Land & Housing Corporation 144A		1.88			8-2-2017		4,000,000		3,999,644
Telecommunication Services: 0.64%
Diversified Telecommunication Services: 0.64%
Deutsche Telekom International Finance BV 144A		2.23			1-17-2020		10,000,000		9,998,040
Utilities: 0.51%
Independent Power & Renewable Electricity Producers: 0.51%
TransAlta Corporation		1.90			6-3-2017		8,000,000		7,996,880
Total Yankee Corporate Bonds and Notes (Cost $297,323,785)									296,946,247
	Yield					Shares
Short-Term Investments: 7.35%
Investment Companies: 7.23%
Securities Lending Cash Investment LLC (l)(r)(u)		0.84					852,580		852,665
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.48					111,605,676		111,605,676
									112,458,341
						Principal
U.S. Treasury Securities: 0.12%
U.S. Treasury Bill #(z)		0.49			3-16-2017	$	1,950,000		1,949,657
Total Short-Term Investments (Cost $114,407,918)									114,407,998

Total investments in securities (Cost $1,553,249,047) *	99.84	%		1,553,405,542
Other assets and liabilities, net	0.16			2,549,323
Total net assets	100.00	%	$	1,555,954,865

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

20 Wells Fargo Ultra Short-Term Income Fund Portfolio of investments—February 28, 2017 (unaudited)

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

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

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

(i) Illiquid security

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

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

(w) The security is a structured note which generates income based on a coupon formula (-1,500 * 1 month LIBOR + 15,573.5%) and the prepayment behavior of the underlying collateral. The coupon is subject to a mandatory cap of 15,573.5% and a mandatory floor of 11%.

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

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

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

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

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

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

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

* Cost for federal income tax purposes is $1,553,249,047 and unrealized gains (losses) consists of:

Gross unrealized gains	$	3,900,012
Gross unrealized losses		(3,743,517	)
Net unrealized gains	$	156,495

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

Statement of assets and liabilities—February 28, 2017 (unaudited) Wells Fargo Ultra Short-Term Income Fund 21

Assets
Investments
In unaffiliated securities (including $834,893 of securities loaned), at value (cost $1,440,790,706)	$	1,440,947,201
In affiliated securities, at value (cost $112,458,341)		112,458,341
Total investments, at value (cost $1,553,249,047)		1,553,405,542
Cash		7,253
Receivable for investments sold		1,420,000
Principal paydown receivable		144,340
Receivable for Fund shares sold		8,842,931
Receivable for interest		8,515,502
Receivable for daily variation margin on open futures contracts		35,608
Receivable for securities lending income		50
Prepaid expenses and other assets		25,748
Total assets		1,572,396,974
Liabilities
Dividends payable		810,341
Payable for investments purchased		8,761,064
Payable for Fund shares redeemed		5,458,821
Payable upon receipt of securities loaned		852,665
Management fee payable		272,936
Distribution fee payable		3,743
Administration fees payable		113,557
Accrued expenses and other liabilities		168,982
Total liabilities		16,442,109
Total net assets	$	1,555,954,865
NET ASSETS CONSIST OF
Paid-in capital	$	1,635,403,477
Overdistributed net investment income		(689,053	)
Accumulated net realized losses on investments		(78,947,989	)
Net unrealized gains on investments		188,430
Total net assets	$	1,555,954,865
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	299,388,239
Shares outstanding – Class A1		35,303,008
Net asset value per share – Class A		$8.48
Maximum offering price per share – Class A2		$8.65
Net assets – Class C	$	6,255,756
Shares outstanding – Class C1		738,466
Net asset value per share – Class C		$8.47
Net assets – Administrator Class	$	24,768,514
Shares outstanding – Administrator Class1		2,932,581
Net asset value per share – Administrator Class		$8.45
Net assets – Institutional Class	$	1,225,542,356
Shares outstanding – Institutional Class1		144,566,806
Net asset value per share – Institutional Class		$8.48

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.

22 Wells Fargo Ultra Short-Term Income Fund Statement of operations—six months ended February 28, 2017 (unaudited)

Investment income
Interest	$	13,853,415
Income from affiliated securities		150,434
Securities lending income, net		345
Total investment income		14,004,194
Expenses
Management fee		2,687,061
Administration fees
Class A		243,541
Class C		5,626
Administrator Class		13,228
Institutional Class		495,748
Shareholder servicing fees
Class A		380,534
Class C		8,790
Administrator Class		33,070
Distribution fee
Class C		26,370
Custody and accounting fees		48,941
Professional fees		32,399
Registration fees		159,933
Shareholder report expenses		41,936
Trustees’ fees and expenses		12,449
Other fees and expenses		20,261
Total expenses		4,209,887
Less: Fee waivers and/or expense reimbursements		(851,760	)
Net expenses		3,358,127
Net investment income		10,646,067
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		164,613
Futures transactions		1,859,313
Net realized gains on investments		2,023,926
Net change in unrealized gains (losses) on:
Unaffiliated securities		(4,195,152	)
Futures transactions		(163,542	)
Net change in unrealized gains (losses) on investments		(4,358,694	)
Net realized and unrealized gains (losses) on investments		(2,334,768	)
Net increase in net assets resulting from operations	$	8,311,299

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

Statement of changes in net assets Wells Fargo Ultra Short-Term Income Fund 23

	Six months ended February 28, 2017 (unaudited)						Year ended August 31, 2016
Operations
Net investment income				$	10,646,067					$	17,604,951
Net realized gains (losses) on investments					2,023,926						(809,375	)
Net change in unrealized gains (losses) on investments					(4,358,694	)					6,829,819
Net increase in net assets resulting from operations					8,311,299						23,625,395
Distributions to shareholders from
Net investment income
Class A					(1,638,815	)					(2,840,738	)
Class C					(11,571	)					(12,834	)
Administrator Class					(162,509	)					(345,233	)
Institutional Class					(8,842,099	)					(14,133,918	)
Investor Class					N/A						(303,707	)1
Total distributions to shareholders					(10,654,994	)					(17,636,430	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,827,924			40,937,255			40,557,118			342,948,331
Class C		95,047			805,466			277,339			2,343,140
Administrator Class		522,392			4,414,285			982,781			8,279,787
Institutional Class		78,059,543			662,043,843			99,290,242			839,915,382
Investor Class		N/A			N/A			530,566	1		4,487,931	1
					708,200,849						1,197,974,571
Reinvestment of distributions
Class A		186,304			1,580,164			324,343			2,744,452
Class C		1,339			11,346			1,473			12,461
Administrator Class		18,963			160,206			39,472			332,633
Institutional Class		484,709			4,110,251			705,023			5,964,585
Investor Class		N/A			N/A			19,595	1		165,577	1
					5,861,967						9,219,708
Payment for shares redeemed
Class A		(7,341,832	)		(62,275,114	)		(21,174,898	)		(179,003,980	)
Class C		(237,827	)		(2,014,550	)		(303,747	)		(2,565,734	)
Administrator Class		(763,084	)		(6,448,110	)		(3,172,981	)		(26,742,047	)
Institutional Class		(75,046,816	)		(636,247,133	)		(93,545,556	)		(790,682,263	)
Investor Class		N/A			N/A			(31,454,406	)1		(266,072,076	)1
					(706,984,907	)					(1,265,066,100	)
Net increase (decrease) in net assets resulting from capital share transactions					7,077,909						(57,871,821	)
Total increase (decrease) in net assets					4,734,214						(51,882,856	)
Net assets
Beginning of period					1,551,220,651						1,603,103,507
End of period				$	1,555,954,865					$	1,551,220,651
Overdistributed net investment income				$	(689,053	)				$	(680,126	)

¹  For the period from September 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.

24 Wells Fargo Ultra Short-Term Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.49			$8.46			$8.53			$8.53			$8.55			$8.52
Net investment income		0.05			0.08			0.05			0.06			0.06			0.10
Net realized and unrealized gains (losses) on investments		(0.01	)		0.03			(0.06	)		0.00			(0.02	)		0.03
Total from investment operations		0.04			0.11			(0.01	)		0.06			0.04			0.13
Distributions to shareholders from
Net investment income		(0.05	)		(0.08	)		(0.05	)		(0.06	)		(0.06	)		(0.10	)
Tax basis return of capital		0.00			0.00			(0.01	)		0.00			0.00			0.00
Total distributions to shareholders		(0.05	)		(0.08	)		(0.06	)		(0.06	)		(0.06	)		(0.10	)
Net asset value, end of period		$8.48			$8.49			$8.46			$8.53			$8.53			$8.55
Total return1		0.42	%		1.28	%		(0.07	)%		0.74	%		0.52	%		1.47	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.79	%		0.77	%		0.78	%		0.83	%		0.88	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		1.08	%		0.93	%		0.64	%		0.70	%		0.72	%		1.11	%
Supplemental data
Portfolio turnover rate		27	%		51	%		70	%		47	%		56	%		61	%
Net assets, end of period (000s omitted)		$299,388			$319,565			$151,561			$196,459			$158,363			$146,400

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 Ultra Short-Term Income Fund 25

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.48			$8.45			$8.52			$8.52			$8.55			$8.52
Net investment income (loss)		0.01			0.01			(0.01	)		(0.01	)		(0.00	)1		0.03
Net realized and unrealized gains (losses) on investments		(0.01	)		0.03			(0.06	)		0.01			(0.03	)		0.03
Total from investment operations		(0.00	)		0.04			(0.07	)		0.00			(0.03	)		0.06
Distributions to shareholders from
Net investment income		(0.01	)		(0.01	)		(0.00	)1		(0.00	)1		(0.00	)1		(0.03	)
Tax basis return of capital		0.00			0.00			(0.00	)1		0.00			0.00			0.00
Total distributions to shareholders		(0.01	)		(0.01	)		(0.00	)1		(0.00	)1		(0.00	)1		(0.03	)
Net asset value, end of period		$8.47			$8.48			$8.45			$8.52			$8.52			$8.55
Total return2		0.05	%		0.52	%		(0.81	)%		0.05	%		(0.31	)%		0.71	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%		1.54	%		1.52	%		1.53	%		1.59	%		1.63	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income (loss)		0.33	%		0.17	%		(0.10	)%		(0.05	)%		(0.02	)%		0.37	%
Supplemental data
Portfolio turnover rate		27	%		51	%		70	%		47	%		56	%		61	%
Net assets, end of period (000s omitted)		$6,256			$7,464			$7,642			$9,078			$11,859			$14,951

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.

26 Wells Fargo Ultra Short-Term Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.46			$8.42			$8.50			$8.50			$8.52			$8.48
Net investment income		0.05			0.09			0.07	1		0.07			0.07			0.11
Net realized and unrealized gains (losses) on investments		(0.01	)		0.04			(0.07	)		0.01			(0.01	)		0.04
Total from investment operations		0.04			0.13			0.00			0.08			0.06			0.15
Distributions to shareholders from
Net investment income		(0.05	)		(0.09	)		(0.07	)		(0.08	)		(0.08	)		(0.11	)
Tax basis return of capital		0.00			0.00			(0.01	)		0.00			0.00			0.00
Total distributions to shareholders		(0.05	)		(0.09	)		(0.08	)		(0.08	)		(0.08	)		(0.11	)
Net asset value, end of period		$8.45			$8.46			$8.42			$8.50			$8.50			$8.52
Total return2		0.49	%		1.55	%		(0.04	)%		0.89	%		0.67	%		1.74	%
Ratios to average net assets (annualized)
Gross expenses		0.73	%		0.73	%		0.71	%		0.72	%		0.77	%		0.82	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		1.23	%		1.05	%		0.81	%		0.84	%		0.87	%		1.26	%
Supplemental data
Portfolio turnover rate		27	%		51	%		70	%		47	%		56	%		61	%
Net assets, end of period (000s omitted)		$24,769			$26,679			$44,682			$119,884			$145,498			$103,810

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 Ultra Short-Term Income Fund 27

(For a share outstanding throughout each period)

	Six months ended February 28, 2017 (unaudited)			Year ended August 31
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$8.49			$8.45			$8.53			$8.52			$8.55			$8.51
Net investment income		0.06			0.11			0.08			0.09			0.09			0.13
Net realized and unrealized gains (losses) on investments		(0.01	)		0.04			(0.07	)		0.01			(0.03	)		0.04
Total from investment operations		0.05			0.15			0.01			0.10			0.06			0.17
Distributions to shareholders from
Net investment income		(0.06	)		(0.11	)		(0.08	)		(0.09	)		(0.09	)		(0.13	)
Tax basis return of capital		0.00			0.00			(0.01	)		0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.11	)		(0.09	)		(0.09	)		(0.09	)		(0.13	)
Net asset value, end of period		$8.48			$8.49			$8.45			$8.53			$8.52			$8.55
Total return1		0.59	%		1.75	%		0.16	%		1.21	%		0.75	%		1.94	%
Ratios to average net assets (annualized)
Gross expenses		0.46	%		0.46	%		0.44	%		0.45	%		0.50	%		0.55	%
Net expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Net investment income		1.43	%		1.27	%		0.99	%		1.05	%		1.07	%		1.46	%
Supplemental data
Portfolio turnover rate		27	%		51	%		70	%		47	%		56	%		61	%
Net assets, end of period (000s omitted)		$1,225,542			$1,197,514			$1,137,808			$1,418,101			$996,437			$588,228

¹  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 Ultra Short-Term Income 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 Ultra Short-Term 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.

Futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

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

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

Notes to financial statements (unaudited) Wells Fargo Ultra Short-Term Income Fund 29

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.

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 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 been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

Distributions to shareholders

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

Federal and other taxes

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

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

30 Wells Fargo Ultra Short-Term Income Fund Notes to financial statements (unaudited)

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of August 31, 2016, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

			No expiration
2017	2018	2019	Short-term	Long-term
$35,029,445	$7,738,751	$7,448,920	$3,773,264	$25,049,431

As of August 31, 2016, the Fund had current year deferred post-October capital losses of $1,736,627 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, 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 February 28, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	145,684,046	$	0	$	145,684,046
Asset-backed securities		0		210,934,725		0		210,934,725
Corporate bonds and notes		0		463,902,129		0		463,902,129
Municipal obligations		0		103,812,458		0		103,812,458
Non-agency mortgage-backed securities		0		217,717,939		0		217,717,939
Yankee corporate bonds and notes		0		296,946,247		0		296,946,247
Short-term investments
Investment companies		111,605,676		0		0		111,605,676
U.S. Treasury securities		1,949,657		0		0		1,949,657
Investments measured at net asset value*								852,665
	$	113,555,333	$	1,438,997,544	$	0	$	1,553,405,542
Futures contracts		35,608		0		0		35,608
Total assets	$	113,590,941	$	1,438,997,544	$	0	$	1,553,441,150

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The fair value amount presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statement of Assets and Liabilities. The Fund’s investment in Securities Lending Cash Investments, LLC valued at $852,665 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements (unaudited) Wells Fargo Ultra Short-Term Income Fund 31

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At February 28, 2017, 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 0.35% and declining to 0.255% as the average daily net assets of the Fund increase. For the six months ended February 28, 2017, the management fee was equivalent to an annual rate of 0.34% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap 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 December 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, 0.55% for Administrator Class shares, and 0.35% 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 February 28, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $1,417 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 $4,291 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 February 28, 2017, Funds Distributor received $644 from the sale of Class A shares.

32 Wells Fargo Ultra Short-Term Income 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 short-term securities, for the six months ended February 28, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$55,832,303	$505,367,902	$2,542,377	$391,149,258

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 February 28, 2017, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2017, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at February 28, 2017		Unrealized gains
6-30-2017	JPMorgan	2,024 Short		2-Year U.S. Treasury Notes	$	438,006,250	$	26,207
6-30-2017	JPMorgan	150 Short		5-Year U.S. Treasury Notes		17,655,469		5,728

The Fund had an average notional amount of $496,047,404 in short futures contracts during the six months ended February 28, 2017.

On February 28, 2017, the cumulative unrealized gains on futures contracts in the amount of $31,935 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

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

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral received		Net amount of assets
Futures – variation margin	JPMorgan	$35,608	$	0	$	0	$	35,608

Notes to financial statements (unaudited) Wells Fargo Ultra Short-Term Income Fund 33

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.

For the six months ended February 28, 2017, 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. NEW ACCOUNTING PRONOUNCEMENT

In December 2016, FASB issued Accounting Standard Update (“ASU”) No. 2016-19, Technical Corrections and Improvements. ASU 2016-19 includes an amendment to FASB ASC Topic 820, Fair Value Measurement which clarifies the difference between a valuation approach and a valuation technique. The amendment also requires an entity to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Management is currently evaluating the potential impact of this new guidance to the financial statements.

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.

34 Wells Fargo Ultra Short-Term 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 Income Fund 35

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 138 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

36 Wells Fargo Ultra Short-Term 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 Owen (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 69 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 69 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargofunds.com.

List of abbreviations Wells Fargo Ultra Short-Term Income Fund 37

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

More information about Wells Fargo 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

© 2017 Wells Fargo Funds Management, LLC. All rights reserved.

302030 04-17 SA223/SAR223 2-17

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 Adjustable Rate Government Fund and Wells Fargo Government Fund included a Summary Portfolio of Investments under Item 1. A Portfolio of Investments for each of Wells Fargo Adjustable Rate Government Fund and Wells Fargo Government Fund is 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—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 96.13%
FDIC Series 2010-S2 Class 3A ±144A		1.47	%		12-29-2045	$	780,145	$	781,488
FHLMC ±		1.26			4-1-2030		82,851		83,679
FHLMC ±		1.70			3-15-2024		597,988		593,190
FHLMC ±		1.85			2-1-2037		472,798		492,443
FHLMC ±		1.88			5-1-2019		3,631		3,633
FHLMC ±		1.94			1-1-2030		9,923		10,132
FHLMC ±		1.94			7-1-2030		165,524		172,495
FHLMC ±		1.95			7-1-2018		517		526
FHLMC ±		1.95			1-1-2019		3,257		3,284
FHLMC ±		1.95			2-1-2019		2,941		2,952
FHLMC ±		1.95			2-1-2035		214,740		220,248
FHLMC ±		2.00			12-1-2017		2,753		2,765
FHLMC ±		2.00			5-1-2018		322		322
FHLMC ±		2.00			6-1-2018		3,123		3,138
FHLMC ±		2.00			9-1-2018		450		454
FHLMC ±		2.06			10-1-2030		8,209		8,419
FHLMC ±		2.09			6-1-2020		40,566		41,230
FHLMC ±		2.15			3-1-2018		2,959		2,985
FHLMC ±		2.20			8-1-2018		820		828
FHLMC ±		2.21			11-1-2030		418,084		427,779
FHLMC ±		2.27			10-1-2018		5,139		5,148
FHLMC ±		2.30			5-1-2028		268,573		280,646
FHLMC ±		2.36			11-1-2034		470,734		497,255
FHLMC ±		2.38			2-1-2037		12,202		12,672
FHLMC ±		2.39			6-1-2020		926		926
FHLMC ±		2.39			1-1-2022		10,586		10,819
FHLMC ±		2.46			3-1-2025		81,252		84,691
FHLMC ±		2.53			1-1-2030		19,971		20,732
FHLMC ±		2.55			5-1-2035		472,975		499,379
FHLMC ±		2.56			5-1-2020		240		244
FHLMC ±		2.58			6-1-2019		26,453		26,627
FHLMC ±		2.58			12-1-2018		4,943		4,976
FHLMC ±		2.60			8-1-2033		1,959,365		2,062,701
FHLMC ±		2.60			12-1-2034		631,555		667,287
FHLMC ±		2.61			3-1-2025		700,169		717,402
FHLMC ±		2.61			1-1-2035		454,586		481,575
FHLMC ±		2.61			6-1-2019		46,243		47,076
FHLMC ±		2.62			6-1-2037		833,485		867,607
FHLMC ±		2.62			6-1-2029		371,337		380,321
FHLMC ±		2.62			1-1-2037		253,372		268,404
FHLMC ±		2.62			10-1-2037		1,571,928		1,652,628
FHLMC ±		2.62			12-1-2035		715,894		753,987
FHLMC ±		2.63			7-1-2019		892		894
FHLMC ±		2.63			1-1-2036		2,079,710		2,201,581
FHLMC ±		2.63			12-1-2018		7,614		7,663
FHLMC ±		2.63			5-1-2034		110,732		117,000
FHLMC ±		2.63			7-1-2034		182,678		193,086
FHLMC ±		2.64			6-1-2036		1,430,572		1,511,666
FHLMC ±		2.64			5-1-2020		426		426
FHLMC ±		2.64			10-1-2034		2,231,968		2,375,899

2 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.64	%		8-1-2034	$	1,315,740	$	1,392,615
FHLMC ±		2.65			10-1-2033		908,358		970,422
FHLMC ±		2.66			1-1-2037		1,705,084		1,794,641
FHLMC ±		2.67			4-1-2036		759,154		804,053
FHLMC ±		2.68			7-1-2030		6,992		7,019
FHLMC ±		2.69			12-1-2032		3,300,700		3,491,713
FHLMC ±		2.69			10-1-2033		1,955,550		2,065,283
FHLMC ±		2.69			4-1-2037		4,095,309		4,325,970
FHLMC ±		2.69			11-1-2029		217,941		225,838
FHLMC ±		2.70			6-1-2035		2,501,634		2,648,477
FHLMC ±		2.70			1-1-2037		1,568,741		1,658,731
FHLMC ±		2.70			5-1-2037		407,024		433,222
FHLMC ±		2.71			6-1-2033		498,622		523,714
FHLMC ±		2.71			10-1-2033		389,777		411,612
FHLMC ±		2.71			11-1-2035		1,324,496		1,394,428
FHLMC ±		2.71			8-1-2036		2,985,187		3,153,755
FHLMC ±		2.71			6-1-2035		2,890,598		3,065,469
FHLMC ±		2.72			8-1-2035		654,083		691,299
FHLMC ±		2.72			8-1-2033		288,013		304,477
FHLMC ±		2.72			11-1-2036		1,358,409		1,437,633
FHLMC ±		2.73			10-1-2033		59,814		60,429
FHLMC ±		2.73			9-1-2035		4,885,403		5,164,774
FHLMC ±		2.73			2-1-2034		842,628		896,892
FHLMC ±		2.73			11-1-2026		79,846		82,750
FHLMC ±		2.73			4-1-2034		3,439,734		3,643,375
FHLMC ±		2.73			2-1-2034		679,479		720,568
FHLMC ±		2.73			4-1-2034		617,683		655,912
FHLMC ±		2.73			9-1-2038		942,240		985,037
FHLMC ±		2.73			2-1-2036		1,519,681		1,603,048
FHLMC ±		2.73			4-1-2035		3,840,128		4,074,170
FHLMC ±		2.74			5-1-2038		1,813,531		1,932,819
FHLMC ±		2.74			11-1-2029		165,265		168,956
FHLMC ±		2.74			2-1-2036		1,574,215		1,661,930
FHLMC ±		2.74			2-1-2034		1,069,529		1,124,870
FHLMC ±		2.74			7-1-2031		1,531,943		1,601,256
FHLMC ±		2.75			1-1-2023		39,311		41,173
FHLMC ±		2.75			2-1-2036		1,088,240		1,151,812
FHLMC ±		2.75			12-1-2035		2,472,665		2,626,902
FHLMC ±		2.75			2-1-2036		985,720		1,042,106
FHLMC ±		2.75			11-1-2036		1,478,559		1,564,401
FHLMC ±		2.75			2-1-2034		2,279,485		2,413,795
FHLMC ±		2.75			5-1-2034		448,005		475,353
FHLMC ±		2.75			7-1-2035		2,905,215		3,077,656
FHLMC ±		2.75			11-1-2022		181,858		189,300
FHLMC ±		2.75			2-1-2036		1,557,734		1,648,969
FHLMC ±		2.75			4-1-2023		265,668		267,789
FHLMC ±		2.76			11-1-2035		1,416,714		1,499,717
FHLMC ±		2.76			12-1-2033		1,049,208		1,108,185
FHLMC ±		2.76			6-1-2035		1,446,250		1,532,947
FHLMC ±		2.76			10-1-2034		1,364,235		1,442,634

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.77	%		3-1-2027	$	108,957	$	111,439
FHLMC ±		2.77			5-1-2037		2,284,172		2,404,160
FHLMC ±		2.77			1-1-2038		5,141,909		5,478,843
FHLMC ±		2.77			1-1-2034		1,166,865		1,233,732
FHLMC ±		2.77			5-1-2025		80,139		81,458
FHLMC ±		2.77			7-1-2036		458,450		484,558
FHLMC ±		2.78			6-1-2022		48		48
FHLMC ±		2.78			2-1-2036		804,332		850,695
FHLMC ±		2.78			7-1-2038		912,878		968,106
FHLMC ±		2.78			5-1-2038		1,508,915		1,594,032
FHLMC ±		2.78			1-1-2024		3,510		3,509
FHLMC ±		2.78			9-1-2035		1,855,462		1,961,766
FHLMC ±		2.78			10-1-2036		726,693		770,240
FHLMC ±		2.79			1-1-2028		20,534		21,529
FHLMC ±		2.79			10-1-2036		908,167		959,851
FHLMC ±		2.79			2-1-2035		4,054,203		4,286,638
FHLMC ±		2.79			10-1-2033		2,261,886		2,392,162
FHLMC ±		2.79			8-1-2035		152,375		156,777
FHLMC ±		2.79			3-1-2036		968,522		1,021,287
FHLMC ±		2.79			1-1-2033		734,440		774,730
FHLMC ±		2.79			1-1-2037		3,036,368		3,215,142
FHLMC ±		2.79			4-1-2037		729,186		770,722
FHLMC ±		2.80			12-1-2034		3,533,393		3,770,659
FHLMC ±		2.80			6-1-2035		169,580		179,128
FHLMC ±		2.80			9-1-2030		300,685		314,938
FHLMC ±		2.80			5-1-2034		2,341,746		2,504,613
FHLMC ±		2.80			1-1-2036		777,962		823,072
FHLMC ±		2.81			8-1-2035		2,669,110		2,827,109
FHLMC ±		2.81			5-1-2034		1,854,012		1,955,320
FHLMC ±		2.81			7-1-2024		38,933		39,033
FHLMC ±		2.82			9-1-2033		277,927		293,740
FHLMC ±		2.82			3-1-2037		531,626		563,714
FHLMC ±		2.82			6-1-2035		627,679		665,365
FHLMC ±		2.82			5-1-2039		1,600,819		1,696,544
FHLMC ±		2.83			4-1-2035		2,776,426		2,937,924
FHLMC ±		2.84			11-1-2027		582,055		615,332
FHLMC ±		2.84			4-1-2037		2,009,611		2,128,802
FHLMC ±		2.84			1-1-2037		2,340,696		2,493,900
FHLMC ±		2.84			6-1-2028		160,369		165,599
FHLMC ±		2.84			9-1-2029		899,194		950,358
FHLMC ±		2.85			6-1-2035		2,303,402		2,440,408
FHLMC ±		2.85			5-1-2035		2,802,029		2,966,513
FHLMC ±		2.85			3-1-2034		897,381		945,407
FHLMC ±		2.85			5-1-2032		53,270		55,806
FHLMC ±		2.86			4-1-2038		1,884,270		2,010,339
FHLMC ±		2.86			4-1-2034		646,127		678,289
FHLMC ±		2.87			8-1-2029		108,070		110,260
FHLMC ±		2.87			4-1-2034		640,826		673,747
FHLMC ±		2.87			11-1-2035		575,346		612,956
FHLMC ±		2.87			2-1-2036		169,566		179,349

4 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.87	%		7-1-2037	$	732,790	$	777,293
FHLMC ±		2.87			1-1-2028		4,707		4,974
FHLMC ±		2.88			4-1-2035		363,737		384,969
FHLMC ±		2.88			12-1-2032		652,577		691,954
FHLMC ±		2.88			6-1-2035		623,697		657,638
FHLMC ±		2.88			4-1-2038		1,508,737		1,594,220
FHLMC ±		2.88			9-1-2033		902,535		960,781
FHLMC ±		2.89			4-1-2037		2,940,464		3,122,090
FHLMC ±		2.89			9-1-2033		1,068,560		1,128,709
FHLMC ±		2.89			3-1-2034		983,593		1,037,475
FHLMC ±		2.89			7-1-2038		1,786,803		1,903,915
FHLMC ±		2.89			9-1-2030		6,707,529		7,081,734
FHLMC ±		2.89			8-1-2027		7,590		7,708
FHLMC ±		2.90			4-1-2019		3,452		3,475
FHLMC ±		2.90			4-1-2035		1,226,782		1,307,839
FHLMC ±		2.90			11-1-2018		2,840		2,839
FHLMC ±		2.90			9-1-2032		1,906,747		2,010,097
FHLMC ±		2.91			2-1-2018		355		356
FHLMC ±		2.91			9-1-2038		621,034		655,021
FHLMC ±		2.91			7-1-2027		655,947		662,204
FHLMC ±		2.92			7-1-2034		831,751		875,609
FHLMC ±		2.92			2-1-2035		1,344,272		1,422,119
FHLMC ±		2.92			7-1-2031		200,271		212,185
FHLMC ±		2.92			10-1-2030		2,021,851		2,133,946
FHLMC ±		2.93			6-1-2025		68,302		69,463
FHLMC ±		2.93			9-1-2036		859,948		906,514
FHLMC ±		2.94			2-1-2031		758,024		796,661
FHLMC ±		2.95			2-1-2029		223,685		231,403
FHLMC ±		2.95			7-1-2018		9,749		9,797
FHLMC ±		2.96			10-1-2029		116,800		120,040
FHLMC ±		2.96			4-1-2035		1,698,333		1,809,909
FHLMC ±		2.96			10-1-2036		787,307		837,862
FHLMC ±		2.96			7-1-2029		60,782		63,638
FHLMC ±		2.96			6-1-2035		2,082,327		2,215,199
FHLMC ±		2.98			10-1-2035		2,741,727		2,912,554
FHLMC ±		2.98			6-1-2024		8,536		8,567
FHLMC ±		2.98			5-1-2033		251,568		266,461
FHLMC ±		3.00			5-1-2037		430,903		456,659
FHLMC ±		3.00			8-1-2019		10,411		10,455
FHLMC ±		3.00			6-1-2033		1,163,551		1,219,572
FHLMC ±		3.01			9-1-2029		142,700		146,140
FHLMC ±		3.01			10-1-2035		1,711,060		1,819,255
FHLMC ±		3.02			6-1-2021		64,813		66,037
FHLMC ±		3.02			8-1-2029		114,396		118,698
FHLMC ±		3.02			4-1-2037		1,552,859		1,650,950
FHLMC ±		3.02			6-1-2026		1,081,467		1,126,386
FHLMC ±		3.02			6-1-2035		1,832,843		1,936,035
FHLMC ±		3.03			9-1-2031		73,841		75,247
FHLMC ±		3.03			6-1-2030		37,037		37,902
FHLMC ±		3.03			4-1-2032		94,834		96,979

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		3.03	%		7-1-2034	$	1,238,528	$	1,310,925
FHLMC ±		3.03			11-1-2029		888,595		936,332
FHLMC ±		3.03			3-1-2032		972,705		1,030,964
FHLMC ±		3.03			2-1-2037		577,945		612,805
FHLMC ±		3.03			4-1-2037		663,329		706,619
FHLMC ±		3.03			1-1-2035		541,508		572,816
FHLMC ±		3.04			6-1-2030		378,180		396,289
FHLMC ±		3.05			4-1-2029		132,502		135,138
FHLMC ±		3.05			5-1-2035		396,628		423,655
FHLMC ±		3.06			2-1-2027		155,139		156,350
FHLMC ±		3.08			10-1-2025		80,668		82,532
FHLMC ±		3.09			8-1-2030		3,998,134		4,234,750
FHLMC ±		3.09			10-1-2024		106,902		112,229
FHLMC ±		3.10			10-1-2025		34,162		34,393
FHLMC ±		3.12			2-1-2030		55,652		56,542
FHLMC ±		3.13			6-1-2030		110,053		112,876
FHLMC ±		3.14			9-1-2030		112,687		115,452
FHLMC ±		3.14			5-1-2028		254,946		265,956
FHLMC ±		3.15			6-1-2032		235,966		242,176
FHLMC ±		3.19			11-1-2029		119,809		124,412
FHLMC ±		3.21			12-1-2025		114,614		116,330
FHLMC ±		3.22			7-1-2036		853,995		901,571
FHLMC ±		3.24			12-1-2036		761,603		801,554
FHLMC ±		3.32			5-1-2031		128,328		135,268
FHLMC ±		3.37			2-1-2024		22,112		22,247
FHLMC ±		3.38			5-1-2032		239,779		247,499
FHLMC ±		3.48			11-1-2032		124,536		127,497
FHLMC ±		3.55			6-1-2035		1,320,006		1,388,730
FHLMC ±		3.60			12-1-2025		453,291		475,482
FHLMC ±		3.70			8-1-2029		10,050		10,026
FHLMC ±		3.75			4-1-2023		16,324		16,565
FHLMC ±		3.89			2-1-2021		21,590		21,996
FHLMC		4.00			12-15-2023		50,404		51,061
FHLMC ±		4.26			11-1-2026		109,853		114,016
FHLMC ±		4.72			8-1-2027		68,530		68,753
FHLMC		5.00			10-1-2022		14,305		15,079
FHLMC ±		5.51			8-1-2024		315,358		328,385
FHLMC		6.50			4-1-2018		20,735		20,938
FHLMC		7.00			9-1-2035		68,353		70,455
FHLMC		8.50			5-1-2020		8,637		8,715
FHLMC Series 0020 Class F ±		1.53			7-1-2029		17,962		18,340
FHLMC Series 1671 Class QA ±		1.55			2-15-2024		590,190		603,860
FHLMC Series 1686 Class FE ±		1.70			2-15-2024		27,905		28,546
FHLMC Series 1730 Class FA ±		1.95			5-15-2024		177,577		172,680
FHLMC Series 2315 Class FW ±		1.32			4-15-2027		113,350		114,878
FHLMC Series 2391 Class EF ±		1.27			6-15-2031		95,252		95,803
FHLMC Series 2454 Class SL ±(c)		7.23			3-15-2032		192,447		43,965
FHLMC Series 2461 Class FI ±		1.27			4-15-2028		136,023		136,593
FHLMC Series 2464 Class FE ±		1.77			3-15-2032		125,432		129,243
FHLMC Series 2466 Class FV ±		1.32			3-15-2032		234,873		238,588

6 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series 2538 Class F ±		1.37	%		12-15-2032	$	536,995	$	545,115
FHLMC Series 3001 Class EA ±		1.12			3-15-2035		45,801		45,834
FHLMC Series 3335 Class FT ±		0.92			8-15-2019		114,878		114,749
FHLMC Series 3436 Class A ±		2.68			11-15-2036		1,251,471		1,324,647
FHLMC Series T-15 Class A6 ±		1.17			11-25-2028		666,378		664,510
FHLMC Series T-16 Class A ±		1.13			6-25-2029		1,587,340		1,574,853
FHLMC Series T-20 Class A7 ±		1.08			12-25-2029		2,921,030		2,859,443
FHLMC Series T-21 Class A ±		1.14			10-25-2029		1,606,952		1,593,572
FHLMC Series T-23 Class A ±		1.06			5-25-2030		1,908,656		1,886,221
FHLMC Series T-27 Class A ±		1.08			10-25-2030		1,283,652		1,276,502
FHLMC Series T-30 Class A7 ±		1.14			12-25-2030		1,246,254		1,203,375
FHLMC Series T-35 Class A ±		1.06			9-25-2031		3,626,757		3,581,977
FHLMC Series T-36 Class A ±		1.08			1-25-2032		424,324		421,632
FHLMC Series T-48 Class 2A ±		3.49			7-25-2033		2,555,276		2,677,002
FHLMC Series T-54 Class 4A ±		3.26			2-25-2043		1,737,367		1,781,630
FHLMC Series T-55 Class 1A1		6.50			3-25-2043		78,080		89,038
FHLMC Series T-56 Class 3AF ±		1.78			5-25-2043		1,136,186		1,163,592
FHLMC Series T-62 Class 1A1 ±		1.77			10-25-2044		4,579,037		4,622,309
FHLMC Series T-63 Class 1A1 ±		1.77			2-25-2045		4,154,817		4,243,910
FHLMC Series T-66 Class 2A1 ±		3.19			1-25-2036		2,687,800		2,767,648
FHLMC Series T-67 Class 1A1C ±		3.10			3-25-2036		8,693,214		9,059,669
FHLMC Series T-67 Class 2A1C ±		3.11			3-25-2036		5,494,403		5,767,146
FHLMC Series T-75 Class A1 ±		0.82			12-25-2036		2,564,056		2,550,506
FNMA ±		1.13			8-25-2018		824,304		825,528
FNMA ±		1.77			1-1-2021		1,731		1,768
FNMA ±		1.78			1-1-2021		2,171		2,216
FNMA ±		1.80			5-1-2029		49,028		50,916
FNMA ±		1.81			4-1-2021		38,916		40,078
FNMA ±		1.85			4-1-2042		2,417,739		2,524,651
FNMA ±		1.85			10-1-2044		1,254,277		1,323,972
FNMA ±		1.85			10-1-2017		4,636		4,680
FNMA ±		1.85			1-1-2018		9,506		9,499
FNMA ±		1.85			11-1-2023		32,105		32,757
FNMA ±		1.87			1-1-2035		1,146,853		1,193,825
FNMA ±		1.88			7-1-2017		140		140
FNMA ±		1.88			3-1-2021		363		368
FNMA ±		1.88			3-1-2030		4,407		4,423
FNMA ±		1.93			11-1-2024		5,347		5,494
FNMA ±		1.93			4-1-2019		1,827		1,838
FNMA ±		1.95			9-1-2032		58,114		58,113
FNMA ±		1.95			3-1-2033		171,572		178,716
FNMA ±		1.97			12-1-2017		17,538		17,628
FNMA ±		1.97			12-1-2030		136,794		138,366
FNMA ±		2.00			8-1-2017		148		148
FNMA ±		2.00			12-1-2020		14,934		14,940
FNMA ±		2.01			1-1-2038		257,361		262,655
FNMA ±		2.03			4-1-2018		920		925
FNMA ±		2.04			8-1-2033		1,310,341		1,349,497
FNMA ±		2.08			8-1-2030		1,615,471		1,661,356
FNMA ±		2.13			5-1-2017		2,537		2,538

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.13	%		1-1-2019	$	33,383	$	33,516
FNMA ±		2.13			5-1-2019		63		63
FNMA ±		2.17			11-1-2017		5,249		5,256
FNMA ±		2.18			8-1-2017		33,068		33,010
FNMA ±		2.18			4-1-2033		485,030		510,386
FNMA ±		2.19			4-1-2024		2,764,901		2,791,272
FNMA ±		2.19			1-1-2036		359,575		377,037
FNMA ±		2.21			6-1-2021		33,304		34,485
FNMA ±		2.21			9-1-2037		2,797,162		2,857,225
FNMA ±		2.21			2-1-2018		376		378
FNMA ±		2.22			2-1-2033		436,824		459,388
FNMA ±		2.24			7-1-2020		5,530		5,646
FNMA ±		2.24			5-1-2018		1,679		1,679
FNMA ±		2.25			6-1-2019		255		255
FNMA ±		2.25			8-1-2031		140,073		143,188
FNMA ±		2.26			8-1-2032		145,269		148,865
FNMA ±		2.28			3-1-2034		401,278		424,813
FNMA ±		2.29			8-1-2031		125,727		128,638
FNMA ±		2.31			9-1-2031		163,005		168,025
FNMA ±		2.33			3-1-2033		366,957		385,224
FNMA ±		2.37			1-1-2035		93,474		98,744
FNMA ±		2.38			1-1-2018		48,921		49,394
FNMA ±		2.38			6-1-2018		2,478		2,479
FNMA ±		2.38			1-1-2036		80,932		84,331
FNMA ±		2.38			11-1-2020		390,572		391,773
FNMA ±		2.38			8-1-2031		64,629		67,666
FNMA ±		2.40			8-1-2032		240,786		241,640
FNMA ±		2.41			11-1-2022		42,968		43,140
FNMA ±		2.43			5-1-2028		37,498		37,924
FNMA ±		2.43			10-1-2018		25,038		25,552
FNMA ±		2.45			3-1-2030		19,731		19,788
FNMA ±		2.45			4-1-2038		600,398		635,765
FNMA ±		2.45			6-1-2017		2,086		2,086
FNMA ±		2.45			6-1-2035		879,085		912,701
FNMA ±		2.46			11-1-2035		50,725		52,726
FNMA ±		2.47			1-1-2036		2,979,808		3,094,422
FNMA ±		2.47			10-1-2037		1,495,510		1,560,124
FNMA ±		2.47			12-1-2035		3,910,609		4,049,564
FNMA ±		2.49			7-1-2038		967,388		1,014,654
FNMA ±		2.49			10-1-2027		607,266		638,304
FNMA ±		2.49			11-1-2035		1,286,975		1,346,432
FNMA ±		2.50			4-1-2030		6,334		6,641
FNMA ±		2.50			5-1-2017		3,588		3,594
FNMA ±		2.50			7-1-2017		7,147		7,142
FNMA ±		2.50			2-1-2020		2,246		2,248
FNMA ±		2.50			11-1-2035		244,641		254,692
FNMA ±		2.51			6-1-2027		1,087		1,124
FNMA ±		2.51			10-1-2024		3,064		3,150
FNMA ±		2.52			6-1-2032		65,712		66,243
FNMA ±		2.52			7-1-2017		10,918		10,917

8 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.53	%		9-1-2019	$	30,100	$	30,299
FNMA ±		2.53			9-1-2030		497,439		512,032
FNMA ±		2.54			8-1-2035		149,382		153,925
FNMA ±		2.55			1-1-2021		189,337		194,704
FNMA ±		2.55			8-1-2033		282,565		294,944
FNMA ±		2.55			11-1-2017		11,515		11,581
FNMA ±		2.55			7-1-2018		67,511		68,479
FNMA ±		2.56			11-1-2027		29,306		29,703
FNMA ±		2.56			4-1-2018		117,307		118,476
FNMA ±		2.56			10-1-2035		756,968		788,751
FNMA ±		2.56			5-1-2028		79,542		83,593
FNMA ±		2.57			4-1-2018		46,788		47,557
FNMA ±		2.57			1-1-2028		6,231		6,286
FNMA ±		2.57			6-1-2034		824,253		865,669
FNMA ±		2.58			11-1-2035		1,563,712		1,628,868
FNMA ±		2.59			7-1-2035		1,628,921		1,695,582
FNMA ±		2.60			7-1-2035		463,316		483,303
FNMA ±		2.60			12-1-2032		761,881		792,815
FNMA ±		2.61			3-1-2034		432,284		450,984
FNMA ±		2.62			7-1-2035		1,092,753		1,137,711
FNMA ±		2.62			1-1-2032		251,743		262,540
FNMA ±		2.62			3-1-2031		37,005		37,224
FNMA ±		2.62			8-1-2033		3,662		3,740
FNMA ±		2.63			7-1-2018		159		160
FNMA ±		2.63			12-1-2031		21,461		21,482
FNMA ±		2.64			9-1-2032		5,222,937		5,489,911
FNMA ±		2.64			12-1-2033		1,098,215		1,165,353
FNMA ±		2.65			8-1-2025		32,264		33,031
FNMA ±		2.65			10-1-2035		229,045		243,130
FNMA ±		2.65			11-1-2035		1,084,989		1,145,005
FNMA ±		2.65			7-1-2035		1,033,639		1,089,688
FNMA ±		2.65			8-1-2026		83,321		85,558
FNMA ±		2.66			5-1-2033		673,008		707,002
FNMA ±		2.66			9-1-2035		2,064,270		2,171,587
FNMA ±		2.66			9-1-2036		922,259		969,460
FNMA ±		2.66			5-1-2035		950,143		1,000,171
FNMA ±		2.66			5-1-2018		1,937		1,943
FNMA ±		2.67			12-1-2031		245,284		256,041
FNMA ±		2.67			5-1-2034		894,331		944,548
FNMA ±		2.67			2-1-2033		622,175		654,933
FNMA ±		2.67			9-1-2035		291,649		305,980
FNMA ±		2.68			10-1-2018		63,350		64,228
FNMA ±		2.68			1-1-2035		2,388,257		2,487,336
FNMA ±		2.68			4-1-2030		98,479		100,820
FNMA ±		2.69			12-1-2031		127,465		129,968
FNMA ±		2.69			8-1-2033		1,625,387		1,719,435
FNMA ±		2.69			5-1-2034		818,116		861,583
FNMA ±		2.69			7-1-2036		3,591,246		3,786,343
FNMA ±		2.69			7-1-2029		557,513		589,599
FNMA ±		2.69			10-1-2025		106,140		109,027

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.70	%		5-1-2035	$	289,310	$	305,457
FNMA ±		2.70			9-1-2036		713,689		756,206
FNMA ±		2.70			4-1-2040		216,630		228,617
FNMA ±		2.70			1-1-2036		207,420		218,777
FNMA ±		2.70			1-1-2035		527,463		555,529
FNMA ±		2.71			10-1-2033		495,605		524,838
FNMA ±		2.71			4-1-2035		2,867,908		3,022,633
FNMA ±		2.71			7-1-2033		90,559		95,140
FNMA ±		2.71			7-1-2035		1,132,624		1,192,323
FNMA ±		2.71			1-1-2037		1,426,318		1,513,134
FNMA ±		2.72			9-1-2021		46,659		47,067
FNMA ±		2.72			4-1-2030		15,945		16,044
FNMA ±		2.72			12-1-2037		2,946,036		3,111,854
FNMA ±		2.72			10-1-2035		2,052,835		2,155,304
FNMA ±		2.72			2-1-2033		214,233		222,605
FNMA ±		2.72			5-1-2033		1,046,639		1,100,110
FNMA ±		2.72			10-1-2034		497,469		526,563
FNMA ±		2.72			6-1-2035		502,399		531,327
FNMA ±		2.72			4-1-2037		2,853,269		3,010,994
FNMA ±		2.72			6-1-2026		70,889		72,890
FNMA ±		2.72			7-1-2035		1,279,845		1,358,070
FNMA ±		2.72			7-1-2035		361,899		382,882
FNMA ±		2.73			12-1-2034		1,142,766		1,203,203
FNMA ±		2.73			1-1-2036		1,193,665		1,262,517
FNMA ±		2.74			6-1-2027		95,107		97,291
FNMA ±		2.74			1-1-2033		3,187,220		3,357,462
FNMA ±		2.74			12-1-2034		1,395,724		1,478,157
FNMA ±		2.74			11-1-2038		846,045		893,360
FNMA ±		2.74			5-1-2039		2,626,172		2,769,474
FNMA ±		2.74			12-1-2035		465,008		491,183
FNMA ±		2.74			11-1-2036		2,939,605		3,100,398
FNMA ±		2.74			8-1-2035		2,150,504		2,277,418
FNMA ±		2.75			9-1-2017		56,867		56,851
FNMA ±		2.75			5-1-2038		3,864,935		4,081,811
FNMA ±		2.75			4-1-2024		18,282		18,907
FNMA ±		2.75			3-1-2038		2,380,628		2,517,242
FNMA ±		2.75			4-1-2033		1,087,514		1,146,301
FNMA ±		2.75			2-1-2035		303,670		322,344
FNMA ±		2.75			6-1-2025		7,371		7,417
FNMA ±		2.75			1-1-2027		25,073		25,403
FNMA ±		2.75			9-1-2035		5,199,551		5,478,329
FNMA ±		2.75			5-1-2033		422,336		443,905
FNMA ±		2.75			11-1-2035		1,676,333		1,769,787
FNMA ±		2.75			5-1-2037		1,342,531		1,422,346
FNMA ±		2.75			2-1-2036		903,776		953,511
FNMA ±		2.75			6-1-2036		1,872,215		1,973,059
FNMA ±		2.75			4-1-2038		1,451,951		1,535,191
FNMA ±		2.76			1-1-2027		548,086		553,985
FNMA ±		2.76			5-1-2033		3,368,344		3,616,842
FNMA ±		2.76			5-1-2018		103,120		102,923

10 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.76	%		12-1-2039	$	220,749	$	229,458
FNMA ±		2.76			9-1-2035		1,712,869		1,811,146
FNMA ±		2.76			6-1-2034		2,532,976		2,671,876
FNMA ±		2.76			10-1-2036		1,104,683		1,166,496
FNMA ±		2.76			9-1-2019		1,796		1,807
FNMA ±		2.77			1-1-2034		2,414,540		2,547,090
FNMA ±		2.77			7-1-2039		4,115,776		4,378,067
FNMA ±		2.77			1-1-2035		4,278,263		4,514,184
FNMA ±		2.77			11-1-2024		36,741		36,962
FNMA ±		2.77			9-1-2035		2,120,686		2,254,384
FNMA ±		2.77			5-1-2033		2,283,091		2,429,705
FNMA ±		2.77			1-1-2037		3,474,604		3,702,158
FNMA ±		2.78			7-1-2024		11,903		11,949
FNMA ±		2.78			1-1-2035		718,380		759,691
FNMA ±		2.78			12-1-2040		3,869,715		4,087,196
FNMA ±		2.78			7-1-2036		3,907,101		4,127,933
FNMA ±		2.78			9-1-2034		3,637,442		3,845,626
FNMA ±		2.78			12-1-2040		450,522		476,016
FNMA ±		2.78			12-1-2028		4,358		4,396
FNMA ±		2.78			2-1-2034		2,223,447		2,353,388
FNMA ±		2.78			8-1-2036		2,669,284		2,832,076
FNMA ±		2.78			7-1-2038		1,869,110		1,976,463
FNMA ±		2.78			5-1-2034		491,213		518,199
FNMA ±		2.78			9-1-2035		889,758		941,429
FNMA ±		2.78			12-1-2037		3,460,288		3,667,805
FNMA ±		2.78			7-1-2020		852,273		851,212
FNMA ±		2.78			5-1-2035		799,126		838,427
FNMA ±		2.78			7-1-2037		741,677		782,745
FNMA ±		2.78			7-1-2035		1,519,997		1,618,745
FNMA ±		2.79			3-1-2035		3,681,917		3,893,625
FNMA ±		2.79			8-1-2035		984,771		1,039,349
FNMA ±		2.79			7-1-2040		2,797,685		2,956,204
FNMA ±		2.79			12-1-2040		1,258,712		1,330,250
FNMA ±		2.79			6-1-2035		2,187,597		2,311,109
FNMA ±		2.79			6-1-2035		1,113,977		1,179,773
FNMA ±		2.79			12-1-2040		2,146,594		2,269,523
FNMA ±		2.79			12-1-2036		676,070		715,374
FNMA ±		2.79			10-1-2018		29,595		29,702
FNMA ±		2.79			4-1-2033		1,000,426		1,052,974
FNMA ±		2.79			1-1-2037		1,649,479		1,743,471
FNMA ±		2.79			6-1-2037		1,349,205		1,436,286
FNMA ±		2.79			11-1-2033		3,744,004		3,960,726
FNMA ±		2.79			8-1-2037		3,711,813		3,937,511
FNMA ±		2.79			5-1-2036		3,753,140		3,970,161
FNMA ±		2.79			7-1-2028		207		217
FNMA ±		2.80			12-1-2022		9,303		9,376
FNMA ±		2.80			6-1-2036		2,106,957		2,218,909
FNMA ±		2.80			9-1-2039		4,388,193		4,640,039
FNMA ±		2.80			8-1-2026		460,802		490,050
FNMA ±		2.80			2-1-2038		2,493,429		2,624,413

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.80	%		12-1-2024	$	29,001	$	29,338
FNMA ±		2.80			2-1-2037		2,857,499		3,017,128
FNMA ±		2.80			4-1-2033		838,268		885,887
FNMA ±		2.80			10-1-2035		1,242,235		1,314,682
FNMA ±		2.80			1-1-2038		4,723,192		5,002,415
FNMA ±		2.80			6-1-2033		669,584		706,049
FNMA ±		2.80			11-1-2038		1,157,439		1,216,165
FNMA ±		2.80			7-1-2020		53,939		54,434
FNMA ±		2.81			1-1-2019		988		987
FNMA ±		2.81			7-1-2019		231		232
FNMA ±		2.81			8-1-2036		3,596,848		3,809,915
FNMA ±		2.81			12-1-2040		3,292,492		3,485,937
FNMA ±		2.81			7-1-2025		3,138		3,302
FNMA ±		2.81			11-1-2037		1,045,694		1,106,584
FNMA ±		2.82			4-1-2020		1,444,258		1,449,781
FNMA ±		2.82			2-1-2036		6,340,490		6,710,966
FNMA ±		2.82			10-1-2036		3,542,475		3,752,087
FNMA ±		2.82			12-1-2032		793,519		843,793
FNMA ±		2.82			5-1-2035		1,578,580		1,677,758
FNMA ±		2.82			9-1-2036		649,683		683,717
FNMA ±		2.82			4-1-2033		759,576		792,863
FNMA ±		2.82			6-1-2031		289,280		299,294
FNMA ±		2.82			12-1-2035		3,809,457		4,034,762
FNMA ±		2.82			9-1-2022		186,001		188,051
FNMA ±		2.82			2-1-2033		203,970		209,729
FNMA ±		2.82			6-1-2034		3,390,823		3,586,823
FNMA ±		2.83			5-1-2036		1,278,261		1,351,862
FNMA ±		2.83			9-1-2030		139,272		142,855
FNMA ±		2.83			5-1-2036		2,262,939		2,400,560
FNMA ±		2.83			2-1-2038		4,585,500		4,847,441
FNMA ±		2.83			12-1-2030		73,935		75,734
FNMA ±		2.83			6-1-2033		292,675		304,968
FNMA ±		2.83			4-1-2024		52,390		52,823
FNMA ±		2.83			5-1-2033		276,681		291,894
FNMA ±		2.83			5-1-2035		1,877,906		1,987,922
FNMA ±		2.83			6-1-2035		1,448,854		1,539,253
FNMA ±		2.83			1-1-2038		1,132,626		1,200,883
FNMA ±		2.85			10-1-2029		79,625		81,223
FNMA ±		2.85			8-1-2031		118,392		121,611
FNMA ±		2.85			6-1-2030		56,696		58,092
FNMA ±		2.85			9-1-2033		58,269		58,627
FNMA ±		2.85			3-1-2019		155,566		159,059
FNMA ±		2.86			10-1-2036		953,355		1,009,996
FNMA ±		2.86			9-1-2037		814,861		869,517
FNMA ±		2.86			1-1-2026		283,735		295,523
FNMA ±		2.86			1-1-2037		1,260,600		1,337,126
FNMA ±		2.87			5-1-2032		182,261		185,702
FNMA ±		2.87			6-1-2036		256,535		272,413
FNMA ±		2.87			7-1-2027		25,533		25,683
FNMA ±		2.88			8-1-2018		25,051		25,282

12 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.88	%		1-1-2022	$	8,460	$	8,484
FNMA ±		2.88			12-1-2028		35,823		36,348
FNMA ±		2.88			1-1-2029		6,165		6,270
FNMA ±		2.88			4-1-2034		660,721		696,155
FNMA ±		2.88			5-1-2035		1,520,916		1,618,051
FNMA ±		2.88			3-1-2035		1,103,788		1,167,462
FNMA ±		2.89			11-1-2024		109,320		113,670
FNMA ±		2.89			9-1-2036		886,955		932,875
FNMA ±		2.89			10-1-2034		1,092,264		1,158,161
FNMA ±		2.89			1-1-2029		386,681		403,977
FNMA ±		2.90			5-1-2025		40,526		40,839
FNMA ±		2.90			9-1-2028		97,218		99,484
FNMA ±		2.90			12-1-2030		771,710		813,823
FNMA ±		2.90			12-1-2034		977,658		1,036,479
FNMA ±		2.90			6-1-2024		44,641		45,052
FNMA ±		2.90			9-1-2026		39,179		40,284
FNMA ±		2.90			4-1-2034		900,056		952,769
FNMA ±		2.91			9-1-2033		873,853		920,950
FNMA ±		2.91			1-1-2031		504,903		532,986
FNMA ±		2.91			7-1-2035		2,536,413		2,703,585
FNMA ±		2.91			7-1-2028		753,646		784,245
FNMA ±		2.92			4-1-2036		1,212,409		1,287,382
FNMA ±		2.92			6-1-2027		80,757		82,241
FNMA ±		2.92			5-1-2036		558,114		595,148
FNMA ±		2.92			7-1-2030		669,863		712,888
FNMA ±		2.92			3-1-2037		611,086		649,054
FNMA ±		2.92			6-1-2041		725,143		765,391
FNMA ±		2.93			1-1-2035		186,310		197,128
FNMA ±		2.94			11-1-2034		624,346		662,339
FNMA ±		2.94			9-1-2030		805,888		860,511
FNMA ±		2.94			12-1-2033		1,383,090		1,471,225
FNMA ±		2.95			6-1-2032		33,477		33,908
FNMA ±		2.95			3-1-2033		1,328,336		1,401,056
FNMA ±		2.95			6-1-2040		985,127		1,036,223
FNMA ±		2.95			1-1-2040		431,549		456,363
FNMA ±		2.95			8-1-2040		922,664		960,651
FNMA ±		2.96			1-1-2032		87,715		90,191
FNMA ±		2.96			7-1-2027		196,120		203,405
FNMA ±		2.97			9-1-2033		614,353		655,820
FNMA ±		2.97			6-1-2035		297,192		313,537
FNMA ±		2.97			9-1-2038		1,188,949		1,260,647
FNMA ±		2.97			6-1-2036		578,319		609,524
FNMA ±		2.98			11-1-2034		839,070		878,587
FNMA ±		2.98			7-1-2035		850,422		904,858
FNMA ±		2.98			12-1-2021		29,268		29,713
FNMA ±		2.98			7-1-2037		2,542,735		2,713,682
FNMA ±		2.99			10-1-2024		46,430		46,683
FNMA ±		2.99			12-1-2024		68,949		69,389
FNMA ±		2.99			9-1-2030		478,139		510,506
FNMA ±		2.99			4-1-2033		400,493		421,404

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		3.00	%		2-1-2019	$	647	$	649
FNMA ±		3.00			4-1-2028		280,421		292,052
FNMA ±		3.01			2-1-2035		1,176,695		1,240,533
FNMA ±		3.01			7-1-2037		732,290		774,524
FNMA ±		3.02			10-1-2025		7,458		7,455
FNMA ±		3.02			8-1-2035		1,172,790		1,247,684
FNMA ±		3.02			9-1-2037		927,566		983,000
FNMA ±		3.03			10-1-2024		203,855		211,339
FNMA ±		3.03			2-1-2038		921,959		978,611
FNMA ±		3.03			5-1-2017		423		423
FNMA ±		3.04			9-1-2034		1,510,264		1,598,839
FNMA ±		3.04			4-1-2038		713,698		752,376
FNMA ±		3.05			5-1-2027		74,917		77,950
FNMA ±		3.05			9-1-2035		85,492		90,869
FNMA ±		3.05			9-1-2030		691,648		729,648
FNMA ±		3.05			4-1-2036		4,339,188		4,626,109
FNMA ±		3.05			6-1-2041		1,293,886		1,373,335
FNMA ±		3.05			5-1-2033		858,690		913,781
FNMA ±		3.05			7-1-2033		923,089		987,835
FNMA ±		3.08			4-1-2020		2,040		2,060
FNMA ±		3.08			8-1-2029		186,727		199,184
FNMA ±		3.09			7-1-2039		2,208,033		2,393,592
FNMA ±		3.09			1-1-2029		5,929		6,089
FNMA ±		3.09			3-1-2027		96,727		100,288
FNMA ±		3.10			10-1-2025		9,173		9,341
FNMA ±		3.10			5-1-2035		1,845,353		1,967,271
FNMA ±		3.11			2-1-2029		38,417		38,981
FNMA ±		3.11			5-1-2035		2,105,773		2,243,590
FNMA ±		3.12			4-1-2035		1,490,601		1,583,871
FNMA ±		3.13			11-1-2028		24,372		24,611
FNMA ±		3.13			5-1-2037		2,730,051		2,931,433
FNMA ±		3.13			1-1-2035		1,036,391		1,101,528
FNMA ±		3.14			10-1-2034		160,335		165,294
FNMA ±		3.14			11-1-2024		71,588		72,472
FNMA ±		3.15			10-1-2024		39,509		39,630
FNMA ±		3.15			10-1-2029		390,135		408,115
FNMA ±		3.15			8-1-2031		41,382		41,776
FNMA ±		3.15			10-1-2034		545,063		585,133
FNMA ±		3.16			3-1-2035		2,617,507		2,807,264
FNMA ±		3.16			8-1-2034		2,540,129		2,708,932
FNMA ±		3.18			6-1-2032		74,450		75,516
FNMA ±		3.18			9-1-2035		588,949		629,289
FNMA ±		3.20			4-1-2034		1,873,365		2,002,399
FNMA ±		3.20			12-1-2033		1,625,107		1,711,107
FNMA ±		3.20			3-1-2032		125,228		129,389
FNMA ±		3.22			6-1-2024		22,853		22,931
FNMA ±		3.22			9-1-2032		1,552,850		1,672,813
FNMA ±		3.22			2-1-2028		40,755		41,299
FNMA ±		3.25			3-1-2034		1,151,439		1,222,889
FNMA ±		3.25			6-1-2032		95,700		98,653

14 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		3.28	%		4-1-2040	$	2,063,206	$	2,211,680
FNMA ±		3.28			3-1-2037		3,768,076		4,015,541
FNMA ±		3.29			10-1-2028		204,818		212,665
FNMA ±		3.30			7-1-2028		221,223		230,339
FNMA ±		3.37			1-1-2033		98,302		100,494
FNMA ±		3.42			12-1-2046		907,445		964,246
FNMA ±		3.43			1-1-2031		67,782		68,522
FNMA ±		3.44			1-1-2033		1,318,829		1,405,379
FNMA ±		3.46			2-1-2029		1,429,504		1,523,146
FNMA ±		3.48			11-1-2029		8,595		8,594
FNMA ±		3.53			7-1-2017		93		93
FNMA ±		3.54			8-1-2030		128,697		131,896
FNMA ±		3.56			9-1-2031		284,236		290,036
FNMA ±		3.58			10-1-2017		368,818		368,415
FNMA ±		3.59			3-1-2030		132,925		136,365
FNMA ±		3.63			9-1-2028		463		464
FNMA ±		3.66			9-1-2033		40,744		41,260
FNMA ±		3.73			7-1-2033		37,049		37,406
FNMA ±		3.79			4-1-2024		225,820		240,098
FNMA ±		3.85			4-1-2033		375,518		397,622
FNMA ±		3.88			7-1-2021		56,840		58,051
FNMA ±		3.92			1-1-2033		65,535		66,686
FNMA ±		3.92			7-1-2033		1,333		1,350
FNMA ±		3.93			6-1-2028		33,835		34,134
FNMA ±		3.95			9-1-2023		2,601		2,604
FNMA ±		3.96			5-1-2033		1,086,380		1,147,354
FNMA ±		3.99			5-1-2034		285,884		300,567
FNMA ±		4.08			5-1-2025		69		69
FNMA ±		4.10			9-1-2017		45		45
FNMA ±		4.11			6-1-2019		1,427		1,437
FNMA ±		4.25			10-1-2021		6,291		6,307
FNMA ±		4.30			1-1-2018		232		232
FNMA ±		4.31			12-1-2036		156,979		164,748
FNMA ±		4.31			11-1-2019		196		194
FNMA ±		4.44			7-1-2028		23,886		25,043
FNMA ±		4.45			6-1-2034		247,482		260,831
FNMA ±		4.49			4-1-2033		194,404		200,840
FNMA ±		4.52			4-1-2032		171,442		171,464
FNMA ±		4.62			4-1-2018		16,077		16,060
FNMA ±		4.64			12-1-2032		158,609		164,078
FNMA ±		4.65			1-1-2019		158,512		160,437
FNMA ±		4.70			11-1-2031		111,658		111,651
FNMA ±		4.73			2-1-2019		77,568		78,799
FNMA ±		4.79			2-1-2033		91,785		91,742
FNMA ±		5.00			6-1-2028		11,167		11,172
FNMA ±		5.07			11-1-2031		16,691		16,715
FNMA		5.50			9-1-2019		19,887		20,125
FNMA ±		5.69			1-1-2019		28,370		28,889
FNMA ±		6.00			1-1-2020		4,643		4,642
FNMA ±		6.45			2-1-2034		42,396		42,470

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		6.50	%		8-1-2028	$	58,997	$	61,612
FNMA		6.50			5-1-2031		182,765		205,372
FNMA		7.00			11-1-2017		1,078		1,082
FNMA		7.06			11-1-2024		27,825		28,195
FNMA		7.06			12-1-2024		28,211		28,403
FNMA		7.06			3-1-2025		52,136		54,170
FNMA		7.06			3-1-2025		6,533		6,562
FNMA		7.06			4-1-2025		19,465		19,556
FNMA		7.06			1-1-2027		50,023		51,507
FNMA		7.50			1-1-2031		72,420		79,376
FNMA		7.50			1-1-2033		242,768		274,315
FNMA		7.50			5-1-2033		190,026		214,009
FNMA		7.50			5-1-2033		183,404		202,660
FNMA		7.50			6-1-2033		32,585		33,081
FNMA		7.50			7-1-2033		49,284		51,095
FNMA		7.50			8-1-2033		102,759		111,484
FNMA		8.00			12-1-2026		88,430		98,453
FNMA		8.00			2-1-2030		197		199
FNMA		8.00			3-1-2030		299		330
FNMA		8.00			7-1-2031		32,991		33,508
FNMA		8.00			5-1-2033		193,661		220,478
FNMA		8.50			10-1-2026		6,875		7,480
FNMA		8.50			6-1-2030		51,433		54,608
FNMA		8.51			8-15-2024		53,311		58,596
FNMA		9.00			7-1-2030		1,765		1,773
FNMA		10.00			1-20-2021		11,058		11,256
FNMA		11.00			1-1-2018		1,429		1,447
FNMA Series 1989-74 Class J		9.80			10-25-2019		8,686		9,407
FNMA Series 1989-96 Class H		9.00			12-25-2019		3,387		3,614
FNMA Series 1992-39 Class FA ±		2.27			3-25-2022		139,147		139,027
FNMA Series 1992-45 Class F ±		2.27			4-25-2022		23,180		22,778
FNMA Series 1992-87 Class Z		8.00			5-25-2022		14,700		16,279
FNMA Series 1993-113 Class FA ±		1.81			7-25-2023		89,159		88,967
FNMA Series 1993-247 Class FM ±		1.80			12-25-2023		389,586		399,281
FNMA Series 1994-14 Class F ±		2.20			10-25-2023		193,617		200,052
FNMA Series 1998-T02 Class A5 ±		2.67			1-25-2032		126,006		126,756
FNMA Series 2001-50 Class BA		7.00			10-25-2041		183,659		209,415
FNMA Series 2001-63 Class FD ±		1.38			12-18-2031		197,437		200,525
FNMA Series 2001-81 Class F ±		1.33			1-25-2032		82,863		84,276
FNMA Series 2001-T08 Class A1		7.50			7-25-2041		155,157		180,994
FNMA Series 2001-T10 Class A2		7.50			12-25-2041		3,293,893		3,924,305
FNMA Series 2001-T12 Class A2		7.50			8-25-2041		246,128		291,003
FNMA Series 2001-T12 Class A4 ±		3.74			8-25-2041		5,848,657		6,152,687
FNMA Series 2001-W01 Class AV1 ±		1.02			8-25-2031		72,910		70,910
FNMA Series 2001-W03 Class A ±		6.50			9-25-2041		632,296		692,383
FNMA Series 2002-05 Class FD ±		1.68			2-25-2032		221,580		226,995
FNMA Series 2002-33 Class A4 ±		4.92			11-25-2030		152,454		162,754
FNMA Series 2002-59 Class F ±		1.18			9-25-2032		490,066		490,379
FNMA Series 2002-66 Class A3 ±		3.46			4-25-2042		9,059,353		9,569,674
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		1,502,403		1,794,651

16 Wells Fargo Adjustable Rate Government Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2002-T12 Class A5 ±		4.00	%		10-25-2041	$	2,068,228	$	2,184,087
FNMA Series 2002-T18 Class A5 ±		3.93			5-25-2042		3,695,141		3,972,912
FNMA Series 2002-T19 Class A4 ±		3.66			3-25-2042		214,508		231,084
FNMA Series 2002-W01 Class 3A ±		3.33			4-25-2042		1,331,402		1,375,525
FNMA Series 2002-W04 Class A6 ±		3.62			5-25-2042		2,231,419		2,355,191
FNMA Series 2003-07 Class A2 ±		2.86			5-25-2042		967,615		984,659
FNMA Series 2003-17 Class FN ±		1.08			3-25-2018		98,829		98,767
FNMA Series 2003-63 Class A8 ±		3.13			1-25-2043		1,456,477		1,505,047
FNMA Series 2003-W02 Class 1A3		7.50			7-25-2042		449,927		539,028
FNMA Series 2003-W04 Class 5A ±		3.35			10-25-2042		1,181,527		1,227,245
FNMA Series 2003-W08 Class 4A ±		3.57			11-25-2042		1,706,277		1,806,321
FNMA Series 2003-W09 Class A ±		1.02			6-25-2033		2,466,898		2,418,517
FNMA Series 2003-W10 Class 2A ±		3.32			6-25-2043		3,308,199		3,443,584
FNMA Series 2003-W18 Class 2A ±		3.66			6-25-2043		11,470,413		12,224,490
FNMA Series 2004-31 Class FG ±		1.18			8-25-2033		274,030		274,583
FNMA Series 2004-38 Class FT ±		1.21			10-25-2033		174,400		175,106
FNMA Series 2004-T03 Class 1A3		7.00			2-25-2044		599,012		702,460
FNMA Series 2004-T03 Class 2A ±		3.49			8-25-2043		1,890,263		2,007,710
FNMA Series 2004-W01 Class 2A2		7.00			12-25-2033		327,493		384,041
FNMA Series 2004-W01 Class 3A ±		3.74			1-25-2043		101,952		108,937
FNMA Series 2004-W02 Class 5A		7.50			3-25-2044		165,075		194,958
FNMA Series 2004-W12 Class 2A ±		3.72			6-25-2044		5,895,993		6,325,707
FNMA Series 2004-W15 Class 3A ±		3.01			6-25-2044		7,344,355		7,598,323
FNMA Series 2005-57 Class EG ±		1.08			3-25-2035		343,028		343,316
FNMA Series 2005-W03 Class 3A ±		3.01			4-25-2045		1,491,171		1,543,615
FNMA Series 2006-15 Class FW ±		1.08			1-25-2036		263,588		264,722
FNMA Series 2006-W01 Class 3A ±		2.54			10-25-2045		6,712,681		7,163,768
FNMA Series 2007-95 Class A2 ±		1.03			8-27-2036		595,039		592,961
FNMA Series 2012-47 Class FW ±		2.48			5-25-2027		630,200		653,883
FNMA Series 2013-M11 Class FA ±		1.11			1-25-2018		251,098		251,446
FNMA Series G92-20 Class FB ±		2.27			4-25-2022		18,843		18,771
FNMA Series G93-1 Class K		6.68			1-25-2023		383,903		415,678
FNMA Series G93-19 Class FD ±		1.81			4-25-2023		291,232		291,163
GNMA ±		2.42			8-20-2062		6,232,675		6,508,518
GNMA ±		2.44			9-20-2062		2,105,918		2,199,291
GNMA		6.45			4-20-2025		42,370		48,147
GNMA		6.45			5-20-2025		9,461		9,641
GNMA		6.45			9-20-2025		40,767		47,978
GNMA		6.50			6-20-2034		77,763		80,111
GNMA		6.50			8-20-2034		520,777		578,508
GNMA		6.50			8-20-2034		109,069		114,139
GNMA		6.75			2-15-2029		83,197		94,908
GNMA		7.00			7-20-2034		58,163		59,555
GNMA		7.25			8-15-2017		467		468
GNMA		7.25			8-15-2017		1,045		1,048
GNMA		7.25			9-15-2017		3,027		3,044
GNMA		7.25			10-15-2017		4,248		4,269
GNMA		7.25			10-15-2017		843		845
GNMA		7.25			11-15-2017		480		480
GNMA		7.25			1-15-2018		2,370		2,378

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Adjustable Rate Government Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		7.25	%		2-15-2018	$	3,919	$	3,946
GNMA		7.25			5-15-2018		3,044		3,054
GNMA		9.00			7-15-2017		741		743
GNMA		9.00			3-15-2020		1,759		1,786
GNMA		9.00			8-15-2021		312		314
GNMA		9.00			8-20-2024		196		205
GNMA		9.00			9-20-2024		1,100		1,147
GNMA		9.00			10-20-2024		63		63
GNMA		9.00			11-20-2024		150		150
GNMA		9.00			1-20-2025		5,982		6,726
GNMA		9.00			2-20-2025		19,024		21,269
GNMA Series 2011-H12 Class FA ±		1.26			2-20-2061		2,662,852		2,653,688
GNMA Series 2011-H17 Class FA ±		1.30			6-20-2061		1,296,509		1,293,553
GNMA Series 2013-H13 Class FS ±		1.77			6-20-2063		3,383,679		3,442,339
Total Agency Securities (Cost $759,957,516)									771,450,738
	Yield					Shares
Short-Term Investments: 3.18%
Investment Companies: 3.18%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.48					25,549,353		25,549,353
Total Short-Term Investments (Cost $25,549,353)									25,549,353

Total investments in securities (Cost $785,506,869) *	99.31	%		797,000,091
Other assets and liabilities, net	0.69			5,498,169
Total net assets	100.00	%	$	802,498,260

± 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.

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

(l) The 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 $785,544,766 and unrealized gains (losses) consists of:

Gross unrealized gains	$	12,866,492
Gross unrealized losses		(1,411,167	)
Net unrealized gains	$	11,455,325

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 81.62%
FDIC Series 2010-R1 Class A 144A		2.18	%		5-25-2050	$	611,376	$	613,201
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		3,007,419		2,970,311
FHLB		5.63			3-14-2036		6,150,000		8,186,117
FHLMC ±		1.12			4-15-2030		10,000,753		9,991,257
FHLMC ±		1.12			12-15-2040		2,128,121		2,120,588
FHLMC ±		1.27			8-15-2037		4,672,331		4,691,611
FHLMC ±		1.29			2-25-2023		1,012,382		1,011,543
FHLMC		1.42			5-25-2021		4,483,874		4,417,656
FHLMC ±		1.95			12-15-2036		479,401		496,181
FHLMC %%		2.38			4-25-2023		2,900,000		2,899,957
FHLMC ±		2.73			10-1-2026		172,060		178,933
FHLMC ±		2.78			6-1-2032		67,821		71,189
FHLMC ±		3.00			7-1-2029		107,850		112,180
FHLMC		3.00			5-15-2026		1,194,455		1,232,508
FHLMC		3.00			1-15-2054		258,281		262,909
FHLMC ±		3.00			1-1-2038		1,094,262		1,169,696
FHLMC ±		3.06			5-1-2026		60,067		62,420
FHLMC ±		3.11			7-1-2032		829,633		859,340
FHLMC ±		3.16			9-1-2031		8,541		8,683
FHLMC ±		3.16			9-1-2031		49,535		49,792
FHLMC ±		3.31			5-25-2023		2,850,000		2,982,768
FHLMC		3.50			8-1-2045		7,287,729		7,475,991
FHLMC		3.50			11-1-2045		12,891,365		13,224,385
FHLMC		3.50			12-1-2045		9,147,310		9,383,610
FHLMC		3.50			12-1-2045		2,846,427		2,919,958
FHLMC		4.00			6-1-2044		6,890,548		7,249,900
FHLMC		4.50			3-1-2042		595,235		639,959
FHLMC		4.50			9-1-2044		5,439,196		5,863,821
FHLMC		5.00			5-1-2018		44,912		45,854
FHLMC		5.00			4-1-2019		38,217		39,018
FHLMC		5.00			4-1-2019		50,726		51,790
FHLMC		5.00			6-1-2019		138,440		141,953
FHLMC		5.00			8-1-2019		457,831		470,567
FHLMC		5.00			10-1-2019		167,475		170,988
FHLMC		5.00			2-1-2020		502,588		520,217
FHLMC		5.00			8-1-2040		1,816,466		1,989,140
FHLMC		5.11			5-25-2019		1,140,000		1,207,731
FHLMC		5.50			3-15-2035		459,346		468,061
FHLMC		5.50			7-1-2035		4,522,448		5,083,478
FHLMC		5.50			12-1-2038		2,998,857		3,334,099
FHLMC		6.00			1-1-2024		1,530,224		1,640,528
FHLMC		6.00			10-1-2032		41,658		47,768
FHLMC		6.00			5-25-2043		5,318,991		6,188,551
FHLMC ±		6.38			1-1-2026		66,982		66,989
FHLMC		6.50			4-1-2018		1,168		1,177
FHLMC		6.50			4-1-2021		5,195		5,384
FHLMC		6.50			4-1-2022		64,962		71,544
FHLMC		6.50			9-1-2028		23,709		26,889
FHLMC		6.50			9-1-2028		20,927		23,528
FHLMC		6.50			7-1-2031		4		4

2 Wells Fargo Government Securities Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		7.00	%		12-1-2023	$	3,673	$	4,084
FHLMC		7.00			5-1-2024		9,243		9,362
FHLMC		7.00			12-1-2026		2,184		2,252
FHLMC		7.00			12-1-2026		490		531
FHLMC		7.00			4-1-2029		2,119		2,446
FHLMC		7.00			5-1-2029		12,808		14,680
FHLMC		7.00			4-1-2032		133,615		152,295
FHLMC		7.50			11-1-2031		221,356		255,792
FHLMC		7.50			4-1-2032		186,214		213,250
FHLMC		8.00			8-1-2023		14,090		15,191
FHLMC		8.00			6-1-2024		5,784		6,405
FHLMC		8.00			6-1-2024		3,273		3,361
FHLMC		8.00			6-1-2024		8,443		9,242
FHLMC		8.00			8-1-2026		19,671		23,335
FHLMC		8.00			11-1-2026		17,697		20,519
FHLMC		8.00			11-1-2028		13,092		14,712
FHLMC		8.50			7-1-2022		1,501		1,534
FHLMC		8.50			12-1-2025		13,274		14,969
FHLMC		8.50			5-1-2026		1,992		2,211
FHLMC		8.50			8-1-2026		5,724		5,858
FHLMC		8.50			8-1-2026		21,789		21,890
FHLMC		9.00			11-1-2018		28		28
FHLMC		9.00			8-1-2019		136		137
FHLMC		9.00			12-1-2019		100		106
FHLMC		9.00			1-1-2020		9		9
FHLMC		9.00			2-1-2020		86		91
FHLMC		9.00			3-1-2020		1,223		1,240
FHLMC		9.00			3-1-2020		175		178
FHLMC		9.00			9-1-2020		104		111
FHLMC		9.00			9-1-2020		493		506
FHLMC		9.00			12-1-2020		19		19
FHLMC		9.00			3-1-2021		2,277		2,397
FHLMC		9.00			4-1-2021		5,712		5,766
FHLMC		9.00			4-1-2021		2,488		2,537
FHLMC		9.00			4-1-2021		150		163
FHLMC		9.00			7-1-2021		3,022		3,092
FHLMC		9.00			7-1-2021		3,100		3,115
FHLMC		9.00			8-1-2021		371		406
FHLMC		9.00			7-1-2022		377		382
FHLMC		9.00			9-1-2024		790		828
FHLMC		9.50			8-1-2018		12		12
FHLMC		9.50			8-1-2019		48		50
FHLMC		9.50			2-1-2020		2		3
FHLMC		9.50			6-1-2020		31		32
FHLMC		9.50			8-1-2020		138		147
FHLMC		9.50			9-1-2020		14		14
FHLMC		9.50			9-1-2020		852		863
FHLMC		9.50			9-1-2020		26		28
FHLMC		9.50			10-1-2020		39		42
FHLMC		9.50			10-1-2020		23		23

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		9.50	%		11-1-2020	$	54	$	58
FHLMC		9.50			5-1-2021		143		155
FHLMC		9.50			9-17-2022		191,849		196,487
FHLMC		9.50			4-1-2025		23,964		25,077
FHLMC		10.00			8-1-2017		1		1
FHLMC		10.00			1-1-2019		4		4
FHLMC		10.00			12-1-2019		153		163
FHLMC		10.00			3-1-2020		7		7
FHLMC		10.00			6-1-2020		15		16
FHLMC		10.00			7-1-2020		3		3
FHLMC		10.00			8-1-2020		24		26
FHLMC		10.00			10-1-2021		27,633		28,081
FHLMC		10.00			8-17-2022		44,646		44,605
FHLMC		10.00			2-17-2025		278,274		294,819
FHLMC		10.50			2-1-2019		2		2
FHLMC		10.50			5-1-2019		16		16
FHLMC		10.50			6-1-2019		5		5
FHLMC		10.50			8-1-2019		6,936		7,034
FHLMC		10.50			12-1-2019		11,391		11,443
FHLMC		10.50			5-1-2020		13,061		13,338
FHLMC		10.50			5-1-2020		1,777		1,784
FHLMC		10.50			8-1-2020		8,393		8,465
FHLMC		10.50			8-1-2020		21,516		22,067
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		3,173,986		3,185,692
FHLMC Series 2758 Class FH ±		1.12			3-15-2019		817,770		819,035
FHLMC Series 2882 Class TF ±		1.02			10-15-2034		899,572		901,746
FHLMC Series 3346 Class FA ±		1.00			2-15-2019		4,945,317		4,942,725
FHLMC Series 3706 Class C		2.00			8-15-2020		2,524,658		2,540,681
FHLMC Series 3767 Class PD		4.00			7-15-2040		136,370		139,944
FHLMC Series 3948 Class DA		3.00			12-15-2024		479,969		490,193
FHLMC Series K020 Class X1 ±(c)		1.44			5-25-2022		46,144,726		2,824,634
FHLMC Series M036 Class A		4.16			12-15-2029		4,068,876		4,079,170
FHLMC Series T-15 Class A6 ±		1.17			11-25-2028		310,599		309,728
FHLMC Series T-23 Class A ±		1.06			5-25-2030		790,571		781,278
FHLMC Series T-35 Class A ±		1.06			9-25-2031		1,033,810		1,021,045
FHLMC Series T-42 Class A6		9.50			2-25-2042		951,763		1,179,550
FHLMC Series T-55 Class 2A1 ±		3.18			3-25-2043		519,251		521,615
FHLMC Series T-57 Class 1A1		6.50			7-25-2043		1,273,161		1,488,030
FHLMC Series T-57 Class 2A1 ±		3.40			7-25-2043		2,439,166		2,630,398
FHLMC Series T-62 Class 1A1 ±		1.77			10-25-2044		1,444,534		1,458,185
FHLMC Series T-67 Class 1A1C ±		3.10			3-25-2036		1,155,242		1,203,940
FHLMC Series T-67 Class 2A1C ±		3.11			3-25-2036		2,130,451		2,236,207
FHLMC Series T-75 Class A1 ±		0.82			12-25-2036		2,921,740		2,906,300
FNMA ¤		0.00			5-15-2030		7,700,000		4,969,172
FNMA ±		0.97			6-27-2036		247,871		241,563
FNMA		1.03			6-1-2017		2,311,595		2,308,535
FNMA ±		1.08			8-25-2035		2,880,811		2,855,267
FNMA ±		1.13			8-25-2018		4,865,201		4,872,428
FNMA ±		1.13			2-25-2032		885,441		892,086
FNMA ±		1.19			11-25-2035		7,086,469		7,066,830

4 Wells Fargo Government Securities Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		1.26	%		9-25-2037	$	3,902,507	$	3,905,095
FNMA ±		1.33			4-25-2050		3,217,274		3,224,125
FNMA		1.40			7-1-2017		2,990,000		2,987,455
FNMA ±		1.53			2-25-2040		8,674,749		8,795,714
FNMA		1.71			12-1-2022		4,603,228		4,561,716
FNMA		1.78			5-1-2020		933,184		925,228
FNMA		1.88			9-24-2026		9,060,000		8,430,212
FNMA ±		1.89			1-1-2043		1,029,403		1,068,061
FNMA		1.92			6-1-2017		2,532,742		2,530,587
FNMA		2.00			5-25-2021		192,341		193,147
FNMA		2.01			7-25-2022		1,624,572		1,624,469
FNMA ±		2.03			5-1-2036		2,127,092		2,227,825
FNMA		2.13			4-24-2026		9,410,000		8,968,859
FNMA ±		2.33			5-1-2023		518,340		526,503
FNMA ±		2.43			9-1-2027		317,092		335,780
FNMA %%		2.50			3-16-2032		6,160,000		6,174,438
FNMA		2.50			4-25-2039		161,239		161,260
FNMA ±		2.52			5-1-2046		6,345,869		6,451,861
FNMA		2.55			3-1-2022		1,656,086		1,678,142
FNMA		2.56			3-1-2021		967,757		981,257
FNMA ±		2.56			3-1-2046		5,944,646		6,054,895
FNMA ±		2.70			5-1-2036		1,236,541		1,303,149
FNMA ±		2.70			11-1-2031		141,332		148,166
FNMA		2.73			1-1-2024		495,406		498,538
FNMA ±		2.76			9-1-2031		50,201		52,961
FNMA ±		2.77			4-1-2032		101,521		103,358
FNMA ±		2.78			12-1-2040		77,005		81,503
FNMA ±		2.80			6-1-2034		502,874		530,192
FNMA ±		2.82			6-1-2032		148,308		155,317
FNMA ±		2.82			12-1-2034		1,044,362		1,098,825
FNMA ±		2.85			9-1-2031		319,227		334,852
FNMA		2.86			11-1-2021		2,657,910		2,722,189
FNMA ±		2.95			12-1-2035		1,141,319		1,203,584
FNMA ±		2.98			10-1-2027		203,703		212,130
FNMA %%		3.00			3-16-2032		19,125,000		19,662,891
FNMA		3.00			4-1-2045		158,261		157,371
FNMA		3.00			11-1-2045		12,365,650		12,296,113
FNMA		3.00			12-1-2045		27,807,768		27,651,395
FNMA		3.00			11-1-2046		20,827,521		20,710,401
FNMA		3.00			12-1-2046		28,806,103		28,644,116
FNMA ±		3.02			8-1-2036		1,840,418		1,942,265
FNMA ±		3.05			5-1-2036		775,374		824,954
FNMA ±		3.09			9-1-2036		843,682		893,545
FNMA		3.19			12-1-2017		2,489,307		2,502,396
FNMA		3.21			5-1-2023		6,865,000		7,121,690
FNMA		3.31			9-25-2020		17,449,510		18,133,463
FNMA		3.38			9-1-2020		1,955,343		2,037,310
FNMA ±		3.41			7-1-2026		278,659		294,025
FNMA		3.44			1-1-2024		8,087,722		8,423,429
FNMA ±		3.45			2-1-2027		224,499		226,701

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		3.45	%		10-1-2027	$	7,106,277	$	7,232,560
FNMA		3.49			12-1-2020		3,531,935		3,685,083
FNMA %%		3.50			3-16-2032		21,320,000		22,228,946
FNMA		3.50			2-1-2043		90,587		93,310
FNMA		3.50			2-1-2045		19,314,396		19,827,157
FNMA		3.50			4-1-2045		7,729,854		7,930,801
FNMA		3.50			8-1-2045		891,410		914,583
FNMA		3.50			12-1-2045		3,701,700		3,797,930
FNMA		3.50			2-1-2046		5,249,735		5,386,208
FNMA		3.50			5-1-2046		7,724,184		7,924,983
FNMA ±		3.63			9-1-2028		27,342		27,432
FNMA		3.80			3-1-2018		675,867		684,564
FNMA		4.00			5-1-2021		551,661		568,515
FNMA		4.00			10-25-2025		1,223,762		43,683
FNMA		4.00			7-1-2045		3,249,539		3,417,002
FNMA		4.00			2-1-2046		7,814,896		8,218,113
FNMA		4.00			2-1-2046		13,663,177		14,368,144
FNMA		4.00			4-1-2046		20,001,791		21,033,803
FNMA ±		4.15			4-1-2033		36,043		37,452
FNMA		4.50			12-1-2018		264,064		270,753
FNMA		4.50			1-1-2026		3,163,546		3,248,868
FNMA %%		4.50			3-13-2047		45,762,000		49,174,486
FNMA		4.68			2-1-2020		3,139,530		3,353,071
FNMA		4.79			5-1-2019		2,075,646		2,179,337
FNMA ±		4.99			7-1-2033		150,558		154,928
FNMA		5.00			12-1-2018		188,599		193,578
FNMA		5.00			6-1-2019		122,706		125,686
FNMA		5.00			4-1-2023		439,816		464,043
FNMA		5.00			6-1-2023		714,226		763,367
FNMA		5.00			3-1-2034		699,338		767,834
FNMA		5.00			8-1-2040		13,351,607		14,649,734
FNMA		5.00			10-1-2040		912,173		1,001,629
FNMA		5.38			5-1-2017		676,408		676,587
FNMA		5.39			1-1-2024		2,070,946		2,290,928
FNMA		5.50			6-1-2020		393,197		410,656
FNMA		5.50			11-1-2023		113,868		122,458
FNMA		5.50			1-1-2025		71,852		76,131
FNMA		5.50			1-1-2025		339,994		360,566
FNMA		5.50			8-1-2033		4,613,203		5,180,937
FNMA		5.50			9-1-2033		2,546,682		2,861,897
FNMA		5.50			9-1-2033		1,212,592		1,361,530
FNMA		5.50			8-1-2035		774,972		869,481
FNMA		5.50			1-1-2037		861,385		963,718
FNMA		5.50			4-1-2040		2,170,330		2,433,684
FNMA		5.55			9-1-2019		543,782		554,683
FNMA		5.61			2-1-2021		1,786,993		1,911,582
FNMA		5.63			2-1-2018		1,028,677		1,062,850
FNMA		5.67			11-1-2021		5,240,637		5,739,126
FNMA		5.75			5-1-2021		3,303,242		3,617,313
FNMA		5.79			10-1-2017		1,020,360		1,027,991

6 Wells Fargo Government Securities Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.95	%		6-1-2024	$	1,674,053	$	1,882,211
FNMA		6.00			3-1-2024		95,400		107,888
FNMA		6.00			1-1-2028		1,292,726		1,462,579
FNMA		6.00			2-1-2035		1,598,316		1,784,248
FNMA		6.00			11-1-2037		662,669		751,074
FNMA		6.00			7-1-2038		277,580		313,918
FNMA %%		6.00			3-13-2047		15,585,000		17,643,687
FNMA		6.08			1-1-2019		369,709		374,941
FNMA		6.50			6-1-2017		479		480
FNMA		6.50			1-1-2024		33,213		37,321
FNMA		6.50			3-1-2028		32,798		35,567
FNMA		6.50			12-1-2029		306,049		349,522
FNMA		6.50			11-1-2031		73,510		83,536
FNMA		6.50			7-1-2036		493,663		565,108
FNMA		6.50			7-1-2036		426,464		489,582
FNMA		6.50			7-25-2042		1,833,226		2,127,738
FNMA		7.00			11-1-2026		9,390		10,301
FNMA		7.00			9-1-2031		4,882		4,897
FNMA		7.00			1-1-2032		5,620		6,266
FNMA		7.00			2-1-2032		109,016		128,984
FNMA		7.00			10-1-2032		252,590		299,073
FNMA		7.00			2-1-2034		2,602		2,929
FNMA		7.00			4-1-2034		195,068		224,864
FNMA		7.00			1-1-2036		6,583		7,051
FNMA		7.00			9-1-2036		101,607		107,536
FNMA		7.50			9-1-2031		109,344		127,810
FNMA		7.50			11-25-2031		586,254		693,442
FNMA		7.50			2-1-2032		46,406		54,315
FNMA		7.50			10-1-2037		1,242,781		1,479,334
FNMA		8.00			5-1-2027		43,356		44,897
FNMA		8.00			10-1-2027		5,913		5,958
FNMA		8.00			6-1-2028		6,295		7,062
FNMA		8.00			2-1-2030		86,573		96,604
FNMA		8.00			7-1-2031		1,451,773		1,716,212
FNMA		8.50			5-1-2017		6,499		6,519
FNMA		8.50			5-1-2017		57		57
FNMA		8.50			8-1-2024		26,830		29,489
FNMA		8.50			5-1-2026		134,722		149,226
FNMA		8.50			7-1-2026		27,149		28,679
FNMA		8.50			8-1-2026		13,776		13,994
FNMA		8.50			10-1-2026		319		333
FNMA		8.50			10-1-2026		6,415		6,441
FNMA		8.50			11-1-2026		30,983		31,792
FNMA		8.50			11-1-2026		9,294		9,742
FNMA		8.50			12-1-2026		173,585		199,658
FNMA		8.50			12-1-2026		18,333		20,620
FNMA		8.50			12-1-2026		293		294
FNMA		8.50			2-1-2027		7,545		7,577
FNMA		8.50			2-1-2027		358		404
FNMA		8.50			3-1-2027		2,623		2,634

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		8.50	%		3-1-2027	$	869	$	941
FNMA		8.50			6-1-2027		89,071		98,311
FNMA		8.50			7-1-2029		876		880
FNMA		9.00			3-1-2021		13,527		13,691
FNMA		9.00			6-1-2021		128		138
FNMA		9.00			7-1-2021		12,499		12,725
FNMA		9.00			8-1-2021		167		182
FNMA		9.00			10-1-2021		1,695		1,696
FNMA		9.00			1-1-2025		19,436		21,708
FNMA		9.00			3-1-2025		2,179		2,211
FNMA		9.00			3-1-2025		1,245		1,251
FNMA		9.00			4-1-2025		2,060		2,069
FNMA		9.00			7-1-2028		24,810		25,269
FNMA		9.50			11-1-2020		128		139
FNMA		9.50			12-15-2020		24,164		24,758
FNMA		9.50			1-1-2021		16,349		16,676
FNMA		9.50			6-1-2022		1,447		1,466
FNMA		9.50			7-1-2028		6,824		6,858
FNMA		10.00			12-1-2020		21,508		21,823
FNMA		11.00			10-15-2020		774		791
FNMA Series 1988-7 Class Z		9.25			4-25-2018		4,172		4,276
FNMA Series 1989-10 Class Z		9.50			3-25-2019		48,387		50,994
FNMA Series 1989-100 Class Z		8.75			12-25-2019		28,519		30,107
FNMA Series 1989-12 Class Y		10.00			3-25-2019		69,168		73,248
FNMA Series 1989-22 Class G		10.00			5-25-2019		81,743		87,142
FNMA Series 1989-63 Class Z		9.40			10-25-2019		5,068		5,395
FNMA Series 1989-98 Class E		9.20			12-25-2019		26,433		28,025
FNMA Series 1990-144 Class W		9.50			12-25-2020		55,738		61,515
FNMA Series 1990-75 Class Z		9.50			7-25-2020		82,720		90,655
FNMA Series 1990-84 Class Y		9.00			7-25-2020		9,945		10,817
FNMA Series 1990-96 Class Z		9.67			8-25-2020		114,447		126,318
FNMA Series 1991-5 Class Z		8.75			1-25-2021		21,491		23,139
FNMA Series 1991-85 Class Z		8.00			6-25-2021		31,050		33,902
FNMA Series 1992-45 Class Z		8.00			4-25-2022		84,843		93,825
FNMA Series 1999-W6 Class A ±		9.51			9-25-2028		5,683		5,785
FNMA Series 2000-T6 Class A2		9.50			6-25-2030		909,194		1,068,589
FNMA Series 2001-T10 Class A3		9.50			12-25-2041		1,379,902		1,558,825
FNMA Series 2001-T12 Class A3		9.50			8-25-2041		354,651		440,020
FNMA Series 2002-T12 Class A5 ±		4.00			10-25-2041		1,166,402		1,231,742
FNMA Series 2002-T19 Class A1		6.50			7-25-2042		4,777,580		5,485,105
FNMA Series 2002-T5 Class A1 ±		1.02			5-25-2032		334,742		328,521
FNMA Series 2002-W4 Class A4		6.25			5-25-2042		782,561		892,863
FNMA Series 2003-T2 Class A1 ±		1.06			3-25-2033		410,829		401,898
FNMA Series 2003-W09 Class A ±		1.02			6-25-2033		109,896		107,741
FNMA Series 2003-W1 Class 1A1 ±		5.58			12-25-2042		746,976		816,680
FNMA Series 2003-W11 Class A1 ±		4.29			6-25-2033		114,033		119,322
FNMA Series 2003-W3 Class 1A4 ±		3.62			8-25-2042		3,236,909		3,379,290
FNMA Series 2003-W5 Class A ±		1.00			4-25-2033		431,795		415,663
FNMA Series 2003-W6 Class 6A ±		3.43			8-25-2042		2,047,187		2,159,850
FNMA Series 2003-W6 Class PT4 ±		8.54			10-25-2042		1,896,098		2,400,383

8 Wells Fargo Government Securities Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2003-W8 Class PT1 ±		10.00	%		12-25-2042	$	751,143	$	860,448
FNMA Series 2004-79 Class FA ±		1.07			8-25-2032		632,444		632,587
FNMA Series 2004-T1 Class 1A2		6.50			1-25-2044		710,647		819,217
FNMA Series 2004-W01 Class 2A2		7.00			12-25-2033		1,600,262		1,876,577
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		1,051,512		1,233,742
FNMA Series 2005-71 Class DB		4.50			8-25-2025		1,044,359		1,093,852
FNMA Series 2006-M2 Class A2F ±		5.26			5-25-2020		860,650		868,791
FNMA Series 2007-W10 Class 2A ±		6.35			8-25-2047		603,557		670,776
FNMA Series 2009-3 Class HL		5.00			2-25-2039		70,456		70,765
FNMA Series 2011-15 Class HI (c)		5.50			3-25-2026		1,244,292		81,137
FNMA Series 2011-42 Class A		3.00			2-25-2024		412,663		418,466
FNMA Series 2015-M10 Class FA ±		0.80			3-25-2019		2,692,217		2,693,642
FNMA Series 265 Class 2		9.00			3-25-2024		111,977		131,013
FNMA Series G-8 Class E		9.00			4-25-2021		72,737		78,283
FNMA Series G92-30 Class Z		7.00			6-25-2022		100,168		106,631
FNMA Series G93-39 Class ZQ		6.50			12-25-2023		1,661,250		1,810,341
GNMA ±		1.32			5-20-2066		7,274,209		7,252,350
GNMA ±		1.47			8-20-2065		4,379,343		4,399,344
GNMA ±		1.50			9-20-2063		4,760,220		4,779,925
GNMA ±		1.67			8-20-2065		4,716,380		4,733,699
GNMA ±		1.67			4-20-2066		5,842,468		5,866,529
GNMA ±		3.00			8-20-2020		112,671		114,791
GNMA ±		3.00			11-20-2020		66,029		67,856
GNMA		3.00			11-20-2045		23,449,999		23,761,187
GNMA %%		3.50			3-21-2047		36,705,000		38,151,695
GNMA %%		4.00			3-21-2047		13,155,000		13,920,662
GNMA		5.00			7-20-2040		4,286,003		4,729,525
GNMA		5.50			4-20-2034		1,537,478		1,674,582
GNMA		6.00			8-20-2034		186,546		198,422
GNMA		6.50			12-15-2025		29,068		33,159
GNMA		6.50			5-15-2029		1,799		2,053
GNMA		6.50			5-15-2031		2,109		2,406
GNMA		6.50			9-20-2033		64,103		73,723
GNMA		7.00			12-15-2022		32,955		35,113
GNMA		7.00			5-15-2026		3,818		4,135
GNMA		7.00			3-15-2028		44,278		47,657
GNMA		7.00			4-15-2031		1,119		1,149
GNMA		7.00			8-15-2031		20,618		21,696
GNMA		7.00			3-15-2032		15,394		15,793
GNMA		7.34			10-20-2021		41,466		42,293
GNMA		7.34			2-20-2022		9,595		9,628
GNMA		7.34			9-20-2022		11,691		11,734
GNMA		8.00			6-15-2023		4,403		4,789
GNMA		8.00			12-15-2023		285,125		321,155
GNMA		8.00			2-15-2024		837		915
GNMA		8.00			9-15-2024		3,923		4,066
GNMA		8.00			6-15-2025		76		76
GNMA		8.35			4-15-2020		142,765		150,379
GNMA		8.40			5-15-2020		89,730		94,847
GNMA		9.50			10-20-2019		19,308		19,403

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		10.00	%		12-15-2018	$	3,439	$	3,458
GNMA Series 2002-53 Class IO ±(c)		0.60			4-16-2042		444,168		22
GNMA Series 2005-23 Class IO ±(c)		0.01			6-17-2045		3,200,575		1,216
GNMA Series 2006-32 Class C ±		5.30			11-16-2038		3,911,028		4,000,816
GNMA Series 2006-32 Class XM ±(c)		0.02			11-16-2045		11,088,937		6,779
GNMA Series 2006-68 Class D ±		5.31			12-16-2037		4,544,244		4,711,864
GNMA Series 2007-69 Class D ±		5.25			6-16-2041		847,735		896,007
GNMA Series 2008-22 Class XM ±(c)		0.83			2-16-2050		27,599,913		841,248
GNMA Series 2012-12 Class HD		2.00			5-20-2062		2,504,438		2,502,823
GNMA Series 2016-H07 Class FE ±		1.92			3-20-2066		5,158,576		5,249,194
GNMA Series 2016-H07 Class FH ±		1.77			2-20-2066		4,736,621		4,781,323
Resolution Funding Corporation STRIPS ¤		0.00			10-15-2019		20,805,000		19,960,587
Resolution Funding Corporation STRIPS ¤		0.00			7-15-2020		24,300,000		22,893,929
Resolution Funding Corporation STRIPS ¤		0.00			4-15-2030		6,100,000		4,033,296
SBA (a)(c)(i)		1.40			2-15-2018		15,857		45
SBA Series 1992-6 Class A (a)(c)(i)		2.47			10-15-2017		8,730		30
TVA		2.88			2-1-2027		7,580,000		7,605,363
Total Agency Securities (Cost $890,817,145)									896,941,374
Corporate Bonds and Notes: 1.63%
Financials: 0.83%
Banks: 0.83%
International Bank for Reconstruction and Development		0.88			8-15-2019		9,305,000		9,148,816
Utilities: 0.80%
Electric Utilities: 0.80%
Cleveland Thermal LLC (i)		6.25			11-1-2018		400,000		428,986
Cleveland Thermal LLC (i)		7.75			11-1-2025		2,665,000		3,000,835
Cleveland Thermal LLC (i)		8.00			11-1-2028		1,800,000		2,034,160
Cleveland Thermal LLC (i)		8.25			11-1-2037		2,880,000		3,266,384
									8,730,365
Total Corporate Bonds and Notes (Cost $18,420,117)									17,879,181
Municipal Obligations: 4.68%
Florida: 0.67%
Escambia County FL HFA Acts Retirement Life Communities Incorporated Series B (Health Revenue, AGC Insured, TD Bank NA SPA) ø		0.74			11-15-2029		7,375,000		7,375,000
Illinois: 0.91%
Illinois Finance Authority Advocate Health Care Network Series C (Health Revenue, Northern Trust Company SPA) ø		0.64			11-1-2038		10,000,000		10,000,000
Iowa: 1.00%
Iowa Finance Authority Midwestern Disaster Area Project (Industrial Development Revenue, Korea Development Bank LOC) ø		0.85			4-1-2022		11,000,000		11,000,000
New York: 0.91%
New York Metropolitan Transportation Authority Subseries E-2 (Transportation Revenue, Bank of Tokyo-Mitsubishi LOC) ø		0.64			11-15-2050		10,000,000		10,000,000

10 Wells Fargo Government Securities Fund Portfolio of investments—February 28, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Texas: 1.19%
Houston TX Utilities System Authority Series 2004B (Water & Sewer Revenue, Citibank NA LOC) ø		0.65	%		5-15-2034	$	6,000,000	$	6,000,000
San Antonio TX Retama Development Corporation (Miscellaneous Revenue)		10.00			12-15-2020		5,405,000		7,030,662
									13,030,662
Total Municipal Obligations (Cost $50,647,749)									51,405,662
Non-Agency Mortgage-Backed Securities: 2.29%
CGBAM Commercial Mortgage Trust Series 2015-SMRT Class A 144A		2.81			4-10-2028		5,000,000		5,077,123
GAHR Commercial Mortgage Trust Series 2015-NRF Class AFX 144A		3.23			12-15-2034		4,195,000		4,311,154
GS Mortgage Securities Trust Series 2013-G1 Class A2 144A±		3.56			4-10-2031		5,349,842		5,356,013
JPMBB Commercial Mortgage Securities Series 2015-C28 Class A4		3.23			10-15-2048		6,200,000		6,255,348
National Credit Union Administration Guaranteed Notes Program Series 2011-R4 Class 1A ±		1.16			3-6-2020		672,659		672,816
Vendee Mortgage Trust Series 1995-1 Class 4 ±		8.55			2-15-2025		239,753		276,881
Vendee Mortgage Trust Series 1995-2C Class 3A		8.79			6-15-2025		333,993		397,248
Vendee Mortgage Trust Series 2011-1 Class DA		3.75			2-15-2035		2,667,260		2,776,767
Total Non-Agency Mortgage-Backed Securities (Cost $25,158,237)									25,123,350
U.S. Treasury Securities: 17.80%
U.S. Treasury Bond ##		2.88			11-15-2046		20,080,000		19,704,283
U.S. Treasury Bond ##		3.13			2-15-2042		26,200,000		27,025,903
U.S. Treasury Bond		3.63			2-15-2044		7,200,000		8,098,034
U.S. Treasury Bond		3.75			11-15-2043		12,470,000		14,330,761
U.S. Treasury Bond		4.63			2-15-2040		7,075,000		9,161,021
U.S. Treasury Note		1.13			6-30-2021		2,350,000		2,281,060
U.S. Treasury Note ##		1.38			6-30-2023		54,810,000		52,375,669
U.S. Treasury Note ##		1.75			5-15-2023		44,400,000		43,459,963
U.S. Treasury Note ##		1.88			1-31-2022		18,225,000		18,199,376
U.S. Treasury Note		2.00			2-15-2023		1,000,000		996,016
Total U.S. Treasury Securities (Cost $197,872,799)									195,632,086
Yankee Corporate Bonds and Notes: 3.06%
Financials: 2.61%
Banks: 2.61%
KfW		1.25			9-30-2019		22,500,000		22,265,460
Royal Bank of Canada Incorporated		2.00			10-1-2018		6,370,000		6,407,073
									28,672,533
Industrials: 0.45%
Transportation Infrastructure: 0.45%
Boldini Limited		3.85			1-19-2036		4,875,000		4,900,574
Total Yankee Corporate Bonds and Notes (Cost $34,193,155)									33,573,107
Yankee Government Bonds: 2.93%
Hashemite Kingdom of Jordan		3.00			6-30-2025		9,800,000		10,049,284
State of Israel		5.50			12-4-2023		9,030,000		10,757,993
Ukraine		1.47			9-29-2021		11,630,000		11,391,399
Total Yankee Government Bonds (Cost $33,328,899)									32,198,676

Portfolio of investments—February 28, 2017 (unaudited) Wells Fargo Government Securities Fund 11

Security name	Yield					Shares		Value
Short-Term Investments: 1.75%
Investment Companies: 1.55%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.48	%				17,013,523	$	17,013,523
				Maturity date		Principal
U.S. Treasury Securities: 0.20%
U.S. Treasury Bill (z)#		0.49			3-16-2017	$	2,225,000		2,224,608
Total Short-Term Investments (Cost $19,238,040)									19,238,131

Total investments in securities (Cost $1,269,676,141) *	115.76	%		1,271,991,567
Other assets and liabilities, net	(15.76	)		(173,129,152	)
Total net assets	100.00	%	$	1,098,862,415

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

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

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

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

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

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

(i) Illiquid security

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

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

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

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

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

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

* Cost for federal income tax purposes is $1,269,268,050 and unrealized gains (losses) consists of:

Gross unrealized gains	$	15,519,133
Gross unrealized losses		(12,795,616	)
Net unrealized gains	$	2,723,517

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) 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:	April 26, 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:	April 26, 2017
By:	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date:	April 26, 2017