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: September 30

Registrant is making a filing for 11 of its series:

Wells Fargo Diversified Capital Builder Fund, Wells Fargo Diversified Income Builder Fund, Wells Fargo Index Asset Allocation Fund, Wells Fargo International Bond Fund, Wells Fargo Strategic Income Fund, Wells Fargo C&B Mid Cap Value Fund, Wells Fargo Common Stock Fund, Wells Fargo Discovery Fund, Wells Fargo Enterprise Fund, Wells Fargo Opportunity Fund, and Wells Fargo Special Mid Cap Value Fund.

Date of reporting period: Mach 31, 2017

ITEM 1. REPORT TO STOCKHOLDERS

Semi-Annual Report

March 31, 2017

Wells Fargo Diversified Capital Builder 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	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	21
Other information	26
List of abbreviations	29

The views expressed and any forward-looking statements are as of March 31, 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 Diversified Capital Builder Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Diversified Capital Builder Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Diversified Capital Builder Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Diversified Capital Builder Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Fargo Capital Management Incorporated

Portfolio manager

Margaret Patel

Average annual total returns (%) as of March 31, 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 (EKBAX)	1-20-1998		13.78		11.85		5.97		20.73		13.19		6.60		1.14		1.14
Class B (EKBBX)*	9-11-1935		14.88		12.09		6.07		19.88		12.34		6.07		1.89		1.89
Class C (EKBCX)	1-22-1998		18.80		12.35		5.80		19.80		12.35		5.80		1.89		1.89
Administrator Class (EKBDX)	7-30-2010		–		–		–		20.82		13.40		6.78		1.06		1.05
Institutional Class (EKBYX)	1-26-1998		–		–		–		21.16		13.64		6.97		0.81		0.78
Diversified Capital Builder Blended Index4	–		–		–		–		17.31		11.68		7.61		–		–
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index5	–		–		–		–		16.75		6.82		7.28		–		–
Russell 1000® Index6	–		–		–		–		17.43		13.26		7.58		–		–

* At the close of business on May 5, 2017, existing Class B shareholders were converted to Class A shareholders. Effective May 6, 2017, Class B shares are no longer offered by the Fund.

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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 smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Diversified Capital Builder Fund 5

Ten largest holdings (%) as of March 31, 20177
Crown Castle International Corporation	4.80
Kinder Morgan Incorporated	4.17
Microsoft Corporation	4.05
Plains All American Pipeline LP	4.03
Broadcom Limited	3.36
Tesoro Logistics LP	3.19
CVS Health Corporation	3.15
Tronox Finance LLC, 6.38%, 8-15-2020	3.03
The Williams Companies Incorporated	2.83
Amphenol Corporation Class A	2.73

Portfolio allocation as of March 31, 2017⁸

¹  Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares and has been 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 Diversified Capital Builder 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 January 31, 2018, 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 1.20% for Class A, 1.95% for Class B, 1.95% for Class C, 1.05% for Administrator Class, and 0.78% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  Source: Wells Fargo Funds Management, LLC. The Diversified Capital Builder Blended Index is composed of the Russell 1000^® Index (75%) and the BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index (25%). You cannot invest directly in an index.

⁵  The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index is an unmanaged market index that provides a broad-based performance measure of the non-investment grade U.S. domestic bond index. You cannot invest directly in an index.

⁶  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index, which represents approximately 92% of the total market capitalization of the Russell 3000^® Index. 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  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 Diversified Capital Builder 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,079.34	$	5.81		1.12	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.35	$	5.64		1.12	%
Class B
Actual	$	1,000.00	$	1,074.40	$	9.67		1.87	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.61	$	9.40		1.87	%
Class C
Actual	$	1,000.00	$	1,074.89	$	9.67		1.87	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.61	$	9.40		1.87	%
Administrator Class
Actual	$	1,000.00	$	1,078.44	$	5.39		1.04	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.75	$	5.24		1.04	%
Institutional Class
Actual	$	1,000.00	$	1,080.50	$	4.05		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.04	$	3.93		0.78	%

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—March 31, 2017 (unaudited) Wells Fargo Diversified Capital Builder Fund 7

Security name	Shares		Value
Common Stocks: 80.19%
Consumer Discretionary: 2.66%
Auto Components: 1.13%
Gentex Corporation		450,000	$	9,598,500
Household Durables: 1.53%
Leggett & Platt Incorporated		210,000		10,567,200
Newell Rubbermaid Incorporated		50,000		2,358,500
				12,925,700
Consumer Staples: 10.11%
Food & Staples Retailing: 4.13%
CVS Health Corporation		340,000		26,690,000
Sysco Corporation		160,000		8,307,200
				34,997,200
Food Products: 4.68%
ConAgra Foods Incorporated		460,000		18,556,400
Lamb Weston Holdings Incorporated		500,001		21,030,042
				39,586,442
Personal Products: 1.30%
The Estee Lauder Companies Incorporated Class A		130,000		11,022,700
Energy: 15.42%
Oil, Gas & Consumable Fuels: 15.42%
Cabot Oil & Gas Corporation		25,000		597,750
EOG Resources Incorporated		35,000		3,414,250
EQT Corporation		100,000		6,110,000
Kinder Morgan Incorporated		1,625,000		35,327,500
Plains All American Pipeline LP		1,080,000		34,138,800
Tesoro Logistics LP		495,000		26,962,650
The Williams Companies Incorporated		810,000		23,967,900
				130,518,850
Health Care: 3.06%
Biotechnology: 0.20%
Shire plc ADR		10,000		1,742,300
Health Care Equipment & Supplies: 1.44%
Becton Dickinson & Company		10,000		1,834,400
C.R. Bard Incorporated		5,000		1,242,700
Teleflex Incorporated		43,000		8,330,390
West Pharmaceutical Services Incorporated		10,000		816,100
				12,223,590

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

8 Wells Fargo Diversified Capital Builder Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Life Sciences Tools & Services: 0.37%
Thermo Fisher Scientific Incorporated		10,000	$	1,536,000
Waters Corporation †		10,000		1,563,100
				3,099,100
Pharmaceuticals: 1.05%
Eli Lilly & Company		100,000		8,411,000
Mallinckrodt plc †		10,000		445,700
				8,856,700
Industrials: 9.95%
Aerospace & Defense: 6.31%
Curtiss-Wright Corporation		130,000		11,863,800
Huntington Ingalls Industries Incorporated		65,000		13,015,600
Lockheed Martin Corporation		29,000		7,760,400
Raytheon Company		100,000		15,250,000
TransDigm Group Incorporated «		25,000		5,504,000
				53,393,800
Building Products: 0.41%
Apogee Enterprises Incorporated		30,000		1,788,300
Lennox International Incorporated		10,000		1,673,000
				3,461,300
Electrical Equipment: 0.28%
AMETEK Incorporated		45,000		2,433,600
Machinery: 2.66%
IDEX Corporation		95,000		8,883,450
John Bean Technologies Corporation		155,000		13,632,250
				22,515,700
Trading Companies & Distributors: 0.29%
HD Supply Holdings Incorporated †		60,000		2,467,500
Information Technology: 24.98%
Communications Equipment: 0.34%
CommScope Holdings Incorporated †		70,000		2,919,700
Electronic Equipment, Instruments & Components: 2.86%
Amphenol Corporation Class A		325,000		23,130,250
Belden Incorporated		15,000		1,037,850
				24,168,100
Internet Software & Services: 0.99%
Akamai Technologies Incorporated †		140,000		8,358,000

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Diversified Capital Builder Fund 9

Security name	Shares		Value
IT Services: 3.68%
Computer Sciences Corporation		140,000	$	9,661,400
Leidos Holdings Incorporated		420,000		21,478,800
				31,140,200
Semiconductors & Semiconductor Equipment: 9.59%
Broadcom Limited		130,000		28,464,800
Intel Corporation		100,000		3,607,000
Microsemi Corporation †		290,000		14,943,700
QUALCOMM Incorporated		85,000		4,873,900
Texas Instruments Incorporated		105,000		8,458,800
Versum Materials Incorporated		170,000		5,202,000
Xilinx Incorporated		270,000		15,630,300
				81,180,500
Software: 6.12%
Adobe Systems Incorporated †		135,000		17,567,550
Microsoft Corporation		520,000		34,247,200
				51,814,750
Technology Hardware, Storage & Peripherals: 1.40%
Diebold Incorporated		10,000		307,000
Western Digital Corporation		140,000		11,554,200
				11,861,200
Materials: 3.83%
Chemicals: 1.10%
Celanese Corporation Series A		90,000		8,086,500
Kooper Holdings Incorporated †		10,000		423,500
Olin Corporation		25,000		821,750
				9,331,750
Containers & Packaging: 2.73%
Sealed Air Corporation		530,000		23,097,400
Real Estate: 8.31%
Equity REITs: 8.31%
Crown Castle International Corporation		430,000		40,613,500
Equinix Incorporated		55,000		22,020,350
Saul Centers Incorporated		125,000		7,702,500
				70,336,350
Utilities: 1.87%
Gas Utilities: 1.87%
Atmos Energy Corporation		200,000		15,798,000
Total Common Stocks (Cost $586,349,643)				678,848,932

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

10 Wells Fargo Diversified Capital Builder Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 16.71%
Consumer Discretionary: 0.97%
Auto Components: 0.06%
Dana Holding Corporation		5.50	%		12-15-2024	$	500,000	$	506,250
Hotels, Restaurants & Leisure: 0.24%
Speedway Motorsports Incorporated		5.13			2-1-2023		2,000,000		2,020,000
Media: 0.34%
McGraw-Hill Global Education Holdings LLC «144A		7.88			5-15-2024		3,000,000		2,902,500
Specialty Retail: 0.33%
Group 1 Automotive Incorporated		5.00			6-1-2022		500,000		503,750
Penske Auto Group Incorporated		5.75			10-1-2022		2,200,000		2,277,000
									2,780,750
Consumer Staples: 0.12%
Food Products: 0.12%
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		1,000,000		1,020,000
Energy: 0.80%
Oil, Gas & Consumable Fuels: 0.80%
Plains All American Pipeline LP		4.65			10-15-2025		6,000,000		6,180,012
Tennessee Gas Pipeline Company		7.00			3-15-2027		534,000		633,121
									6,813,133
Health Care: 1.87%
Health Care Equipment & Supplies: 0.30%
Teleflex Incorporated		4.88			6-1-2026		2,500,000		2,512,500
Health Care Providers & Services: 1.38%
AMN Healthcare Incorporated 144A		5.13			10-1-2024		7,512,000		7,587,120
DaVita HealthCare Partners Incorporated		5.13			7-15-2024		1,000,000		1,010,000
HCA Incorporated		5.25			6-15-2026		2,000,000		2,095,200
HealthSouth Corporation		5.13			3-15-2023		1,000,000		1,000,000
									11,692,320
Health Care Technology: 0.19%
QuintilesIMS Holdings Incorporated 144A		4.88			5-15-2023		1,600,000		1,622,000
Industrials: 3.04%
Aerospace & Defense: 1.63%
Huntington Ingalls Industries Incorporated 144A		5.00			11-15-2025		6,926,000		7,237,670
Moog Incorporated 144A		5.25			12-1-2022		1,500,000		1,537,500
TransDigm Group Incorporated		6.38			6-15-2026		3,500,000		3,502,065
TransDigm Group Incorporated		6.50			5-15-2025		1,500,000		1,513,125
									13,790,360

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Diversified Capital Builder Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Commercial Services & Supplies: 0.18%
ACCO Brands Corporation 144A		5.25	%		12-15-2024	$	1,500,000	$	1,507,500
Machinery: 0.36%
Oshkosh Corporation		5.38			3-1-2025		2,000,000		2,065,000
SPX FLOW Incorporated 144A		5.88			8-15-2026		1,000,000		1,008,750
									3,073,750
Trading Companies & Distributors: 0.87%
HD Supply Incorporated 144A		5.75			4-15-2024		5,015,000		5,274,777
Wesco Distribution Incorporated		5.38			6-15-2024		2,000,000		2,050,000
									7,324,777
Information Technology: 2.57%
Communications Equipment: 0.73%
CommScope Incorporated 144A		5.50			6-15-2024		6,000,000		6,204,420
Electronic Equipment, Instruments & Components: 0.48%
Belden Incorporated 144A		5.25			7-15-2024		3,000,000		2,992,500
Belden Incorporated 144A		5.50			9-1-2022		1,000,000		1,020,000
									4,012,500
Semiconductors & Semiconductor Equipment: 0.38%
Micron Technology Incorporated 144A		5.25			8-1-2023		1,500,000		1,537,500
Microsemi Corporation 144A		9.13			4-15-2023		1,000,000		1,148,750
Versum Materials Incorporated 144A		5.50			9-30-2024		500,000		516,875
									3,203,125
Software: 0.85%
Nuance Communications Company 144A		6.00			7-1-2024		2,000,000		2,070,000
Symantec Corporation 144A		5.00			4-15-2025		5,000,000		5,116,640
									7,186,640
Technology Hardware, Storage & Peripherals: 0.13%
Diebold Incorporated		8.50			4-15-2024		1,000,000		1,105,000
Materials: 6.92%
Chemicals: 6.54%
A Schulman Incorporated		6.88			6-1-2023		6,375,000		6,614,063
Koppers Incorporated 144A		6.00			2-15-2025		8,190,000		8,456,175
Olin Corporation		5.50			8-15-2022		6,000,000		6,240,000
Rayonier Advanced Materials Products Incorporated 144A		5.50			6-1-2024		6,835,000		6,151,500
Scotts Miracle-Gro Company		6.00			10-15-2023		2,100,000		2,231,250
Tronox Finance LLC		6.38			8-15-2020		25,588,000		25,683,955
									55,376,943
Containers & Packaging: 0.38%
Berry Plastics Corporation		5.13			7-15-2023		3,120,000		3,198,000

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

12 Wells Fargo Diversified Capital Builder Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Real Estate: 0.42%
Equity REITs: 0.42%
Equinix Incorporated		5.75	%		1-1-2025	$	1,000,000	$	1,057,500
Iron Mountain Incorporated 144A		5.38			6-1-2026		2,000,000		1,995,000
Iron Mountain Incorporated		5.75			8-15-2024		500,000		510,000
									3,562,500
Total Corporate Bonds and Notes (Cost $139,663,127)									141,414,968
Yankee Corporate Bonds and Notes: 2.40%
Health Care: 0.33%
Pharmaceuticals: 0.33%
Mallinckrodt plc 144A«		5.50			4-15-2025		3,000,000		2,760,000
Industrials: 0.24%
Electrical Equipment: 0.24%
Sensata Technologies BV 144A		4.88			10-15-2023		2,000,000		2,003,740
Information Technology: 1.83%
Technology Hardware, Storage & Peripherals: 1.83%
Seagate HDD		4.75			6-1-2023		9,500,000		9,547,500
Seagate HDD		4.88			6-1-2027		6,396,000		5,987,238
									15,534,738
Total Yankee Corporate Bonds and Notes (Cost $19,285,082)									20,298,478
	Yield					Shares
Short-Term Investments: 1.10%
Investment Companies: 1.10%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98					6,198,788		6,199,407
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63					3,096,035		3,096,035
Total Short-Term Investments (Cost $9,295,422)									9,295,442

Total investments in securities (Cost $754,593,274) *	100.40	%		849,857,820
Other assets and liabilities, net	(0.40	)		(3,353,097	)
Total net assets	100.00	%	$	846,504,723

† Non-income-earning security

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

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.

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

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

* Cost for federal income tax purposes is $753,932,497 and unrealized gains (losses) consists of:

Gross unrealized gains	$	106,114,583
Gross unrealized losses		(10,189,260	)
Net unrealized gains	$	95,925,323

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

Statement of assets and liabilities—March 31, 2017 (unaudited) Wells Fargo Diversified Capital Builder Fund 13

Assets
Investments
In unaffiliated securities (including $6,074,073 of securities loaned), at value (cost $745,297,852)	$	840,562,378
In affiliated securities, at value (cost $9,295,422)		9,295,442
Total investments, at value (cost $754,593,274)		849,857,820
Receivable for Fund shares sold		3,936,285
Receivable for dividends and interest		2,818,253
Receivable for securities lending income		2,092
Prepaid expenses and other assets		166,337
Total assets		856,780,787
Liabilities
Payable for investments purchased		2,222,409
Payable for Fund shares redeemed		875,981
Payable upon receipt of securities loaned		6,197,209
Management fee payable		475,090
Distribution fees payable		64,024
Administration fees payable		143,711
Accrued expenses and other liabilities		297,640
Total liabilities		10,276,064
Total net assets	$	846,504,723
NET ASSETS CONSIST OF
Paid-in capital	$	723,437,354
Undistributed net investment income		377,678
Accumulated net realized gains on investments		27,425,145
Net unrealized gains on investments		95,264,546
Total net assets	$	846,504,723
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	534,211,248
Shares outstanding – Class A1		54,369,509
Net asset value per share – Class A		$9.83
Maximum offering price per share – Class A2		$10.43
Net assets – Class B	$	719,730
Shares outstanding – Class B1		72,341
Net asset value per share – Class B		$9.95
Net assets – Class C	$	96,823,189
Shares outstanding – Class C1		9,856,400
Net asset value per share – Class C		$9.82
Net assets – Administrator Class	$	20,476,395
Shares outstanding – Administrator Class1		2,082,261
Net asset value per share – Administrator Class		$9.83
Net assets – Institutional Class	$	194,274,161
Shares outstanding – Institutional Class1		19,896,503
Net asset value per share – Institutional Class		$9.76

¹  The Fund has an unlimited number of authorized shares.

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

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

14 Wells Fargo Diversified Capital Builder Fund Statement of operations—six months ended March 31, 2017 (unaudited)

Investment income
Dividends	$	7,382,359
Interest		4,764,568
Securities lending income, net		23,422
Income from affiliated securities		16,806
Total investment income		12,187,155
Expenses
Management fee		2,369,375
Administration fees
Class A		521,602
Class B		1,117
Class C		82,844
Administrator Class		13,256
Institutional Class		98,227
Shareholder servicing fees
Class A		620,955
Class B		1,330
Class C		98,624
Administrator Class		25,492
Distribution fees
Class B		3,989
Class C		295,871
Custody and accounting fees		22,693
Professional fees		22,992
Registration fees		32,230
Shareholder report expenses		21,767
Trustees’ fees and expenses		10,059
Other fees and expenses		2,599
Total expenses		4,245,022
Less: Fee waivers and/or expense reimbursements		(10,600	)
Net expenses		4,234,422
Net investment income		7,952,733
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		26,764,087
Affiliated securities		690
Net realized gains on investments		26,764,777
Net change in unrealized gains (losses) on:
Unaffiliated securities		22,761,609
Affiliated securities		20
Net change in unrealized gains (losses) on investments		22,761,629
Net realized and unrealized gains (losses) on investments		49,526,406
Net increase in net assets resulting from operations	$	57,479,139

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

Statement of changes in net assets Wells Fargo Diversified Capital Builder Fund 15

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment income				$	7,952,733					$	10,579,137
Net realized gains on investments					26,764,777						56,562,113
Net change in unrealized gains (losses) on investments					22,761,629						57,125,458
Net increase in net assets resulting from operations					57,479,139						124,266,708
Distributions to shareholders from
Net investment income
Class A					(5,159,782	)					(7,154,781	)
Class B					(3,723	)					(13,202	)
Class C					(610,736	)					(576,356	)
Administrator Class					(196,529	)					(281,790	)
Institutional Class					(2,027,261	)					(2,192,889	)
Net realized gains
Class A					(37,599,085	)					(38,200,806	)
Class B					(82,941	)					(258,301	)
Class C					(5,700,242	)					(5,148,475	)
Administrator Class					(1,444,857	)					(504,792	)
Institutional Class					(11,035,158	)					(9,439,938	)
Total distributions to shareholders					(63,860,314	)					(63,771,330	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		7,502,464			73,243,579			3,675,778			34,640,601
Class B		8,989			89,544			6,490			57,479
Class C		3,493,942			34,050,361			1,407,777			13,010,103
Administrator Class		736,413			7,168,210			1,842,765			16,600,389
Institutional Class		7,595,203			73,895,717			2,616,107			24,432,480
					188,447,411						88,741,052
Reinvestment of distributions
Class A		4,297,385			40,747,585			5,090,728			43,117,960
Class B		7,409			70,848			25,632			216,784
Class C		599,537			5,674,913			606,197			5,111,831
Administrator Class		171,849			1,629,643			89,236			775,222
Institutional Class		1,287,009			12,135,285			1,260,658			10,654,067
					60,258,274						59,875,864
Payment for shares redeemed
Class A		(4,365,300	)		(42,695,006	)		(5,956,354	)		(54,335,024	)
Class B		(94,554	)		(941,535	)		(212,484	)		(1,934,449	)
Class C		(1,024,054	)		(9,982,561	)		(1,077,109	)		(9,826,218	)
Administrator Class		(972,961	)		(9,626,881	)		(650,695	)		(5,982,660	)
Institutional Class		(1,382,346	)		(13,387,459	)		(2,203,621	)		(20,087,169	)
					(76,633,442	)					(92,165,520	)
Net increase in net assets resulting from capital share transactions					172,072,243						56,451,396
Total increase in net assets					165,691,068						116,946,774
Net assets
Beginning of period					680,813,655						563,866,881
End of period				$	846,504,723					$	680,813,655
Undistributed net investment income				$	377,678					$	422,976

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

16 Wells Fargo Diversified Capital Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014				2013			2012
Net asset value, beginning of period		$9.96			$9.12			$9.31			$7.89				$6.93			$5.65
Net investment income		0.11			0.17			0.11			0.09				0.12			0.15
Net realized and unrealized gains (losses) on investments		0.64			1.71			(0.20	)		1.41				0.96			1.29
Total from investment operations		0.75			1.88			(0.09	)		1.50				1.08			1.44
Distributions to shareholders from
Net investment income		(0.10	)		(0.15	)		(0.10	)		(0.08	)			(0.12	)		(0.16	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00				0.00			0.00
Total distributions to shareholders		(0.88	)		(1.04	)		(0.10	)		(0.08	)	��		(0.12	)		(0.16	)
Net asset value, end of period		$9.83			$9.96			$9.12			$9.31				$7.89			$6.93
Total return1		7.93	%		22.85	%		(1.05	)%		19.10	%			15.75	%		25.58	%
Ratios to average net assets (annualized)
Gross expenses		1.12	%		1.14	%		1.19	%		1.21	%			1.20	%		1.21	%
Net expenses		1.12	%		1.14	%		1.19	%		1.20	%			1.20	%		1.20	%
Net investment income		2.14	%		1.77	%		1.17	%		1.09	%			1.66	%		2.40	%
Supplemental data
Portfolio turnover rate		29	%		73	%		69	%		82	%			70	%		79	%
Net assets, end of period (000s omitted)		$534,211			$467,503			$402,303			$431,388				$399,535			$390,705

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 Diversified Capital Builder Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS B				2016			2015			2014			2013			2012
Net asset value, beginning of period		$10.07			$9.19			$9.38			$7.95			$6.98			$5.69
Net investment income		0.07	1		0.09	1		0.04	1		0.03	1		0.07	1		0.11	1
Net realized and unrealized gains (losses) on investments		0.64			1.75			(0.21	)		1.41			0.96			1.28
Total from investment operations		0.71			1.84			(0.17	)		1.44			1.03			1.39
Distributions to shareholders from
Net investment income		(0.05	)		(0.07	)		(0.02	)		(0.01	)		(0.06	)		(0.10	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.83	)		(0.96	)		(0.02	)		(0.01	)		(0.06	)		(0.10	)
Net asset value, end of period		$9.95			$10.07			$9.19			$9.38			$7.95			$6.98
Total return2		7.44	%		22.06	%		(1.86	)%		18.15	%		14.87	%		24.62	%
Ratios to average net assets (annualized)
Gross expenses		1.87	%		1.89	%		1.94	%		1.96	%		1.95	%		1.96	%
Net expenses		1.87	%		1.89	%		1.94	%		1.95	%		1.95	%		1.95	%
Net investment income		1.50	%		0.99	%		0.44	%		0.34	%		0.94	%		1.65	%
Supplemental data
Portfolio turnover rate		29	%		73	%		69	%		82	%		70	%		79	%
Net assets, end of period (000s omitted)		$720			$1,515			$3,042			$5,180			$6,502			$8,077

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.

18 Wells Fargo Diversified Capital Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.96			$9.12			$9.32			$7.90			$6.94			$5.66
Net investment income		0.07			0.10			0.05			0.03			0.07			0.10
Net realized and unrealized gains (losses) on investments		0.64			1.72			(0.22	)		1.41			0.96			1.29
Total from investment operations		0.71			1.82			(0.17	)		1.44			1.03			1.39
Distributions to shareholders from
Net investment income		(0.07	)		(0.09	)		(0.03	)		(0.02	)		(0.07	)		(0.11	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.85	)		(0.98	)		(0.03	)		(0.02	)		(0.07	)		(0.11	)
Net asset value, end of period		$9.82			$9.96			$9.12			$9.32			$7.90			$6.94
Total return1		7.49	%		21.96	%		(1.88	)%		18.21	%		14.86	%		24.63	%
Ratios to average net assets (annualized)
Gross expenses		1.87	%		1.89	%		1.94	%		1.96	%		1.95	%		1.96	%
Net expenses		1.87	%		1.89	%		1.94	%		1.95	%		1.95	%		1.95	%
Net investment income		1.37	%		1.03	%		0.41	%		0.34	%		0.91	%		1.65	%
Supplemental data
Portfolio turnover rate		29	%		73	%		69	%		82	%		70	%		79	%
Net assets, end of period (000s omitted)		$96,823			$67,630			$53,373			$45,670			$39,758			$38,279

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 Diversified Capital Builder Fund 19

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.97			$9.12			$9.32			$7.90			$6.94			$5.66
Net investment income		0.12			0.18	1		0.14	1		0.12	1		0.14	1		0.17	1
Net realized and unrealized gains (losses) on investments		0.62			1.73			(0.22	)		1.41			0.96			1.28
Total from investment operations		0.74			1.91			(0.08	)		1.53			1.10			1.45
Distributions to shareholders from
Net investment income		(0.10	)		(0.17	)		(0.12	)		(0.11	)		(0.14	)		(0.17	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.88	)		(1.06	)		(0.12	)		(0.11	)		(0.14	)		(0.17	)
Net asset value, end of period		$9.83			$9.97			$9.12			$9.32			$7.90			$6.94
Total return2		7.84	%		23.14	%		(0.92	)%		19.39	%		16.06	%		25.84	%
Ratios to average net assets (annualized)
Gross expenses		1.04	%		1.06	%		1.05	%		1.04	%		1.04	%		1.03	%
Net expenses		1.04	%		1.03	%		0.95	%		0.95	%		0.95	%		0.95	%
Net investment income		2.27	%		1.89	%		1.41	%		1.33	%		1.84	%		2.65	%
Supplemental data
Portfolio turnover rate		29	%		73	%		69	%		82	%		70	%		79	%
Net assets, end of period (000s omitted)		$20,476			$21,398			$7,898			$9,411			$6,836			$3,015

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.

20 Wells Fargo Diversified Capital Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$9.90			$9.07			$9.27			$7.85			$6.90			$5.62
Net investment income		0.13			0.20			0.15			0.13	1		0.15			0.18	1
Net realized and unrealized gains (losses) on investments		0.62			1.71			(0.21	)		1.41			0.95			1.28
Total from investment operations		0.75			1.91			(0.06	)		1.54			1.10			1.46
Distributions to shareholders from
Net investment income		(0.11	)		(0.19	)		(0.14	)		(0.12	)		(0.15	)		(0.18	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.89	)		(1.08	)		(0.14	)		(0.12	)		(0.15	)		(0.18	)
Net asset value, end of period		$9.76			$9.90			$9.07			$9.27			$7.85			$6.90
Total return2		8.05	%		23.28	%		(0.75	)%		19.68	%		16.17	%		26.23	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.81	%		0.79	%		0.78	%		0.77	%		0.78	%
Net expenses		0.78	%		0.78	%		0.77	%		0.78	%		0.77	%		0.78	%
Net investment income		2.45	%		2.14	%		1.58	%		1.52	%		2.08	%		2.80	%
Supplemental data
Portfolio turnover rate		29	%		73	%		69	%		82	%		70	%		79	%
Net assets, end of period (000s omitted)		$194,274			$122,769			$97,251			$100,160			$149,790			$142,256

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 Diversified Capital Builder Fund 21

1. ORGANIZATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Securities valuation

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.

Equity securities 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.

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 companies 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

22 Wells Fargo Diversified Capital Builder Fund Notes to financial statements (unaudited)

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.

Dividend income is recognized on the ex-dividend date.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has 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 and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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.

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.

Notes to financial statements (unaudited) Wells Fargo Diversified Capital Builder Fund 23

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 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	22,524,200	$	0	$	0	$	22,524,200
Consumer staples		85,606,342		0		0		85,606,342
Energy		130,518,850		0		0		130,518,850
Health care		25,921,690		0		0		25,921,690
Industrials		84,271,900		0		0		84,271,900
Information technology		211,442,450		0		0		211,442,450
Materials		32,429,150		0		0		32,429,150
Real estate		70,336,350		0		0		70,336,350
Utilities		15,798,000		0		0		15,798,000
Corporate bonds and notes		0		141,414,968		0		141,414,968
Yankee corporate bonds and notes		0		20,298,478		0		20,298,478
Short-term investments
Investment companies		3,096,035		0		0		3,096,035
Investments measured at net asset value*								6,199,407
Total assets	$	681,944,967	$	161,713,446	$	0	$	849,857,820

* 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 $6,199,407 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 March 31, 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

24 Wells Fargo Diversified Capital Builder Fund Notes to financial statements (unaudited)

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 0.65% and declining to 0.48% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.63% 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		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.20% for Class A shares, 1.95% for Class B shares, 1.95% for Class C shares, 1.05% for Administrator Class shares, and 0.78% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $6,540 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $14,537 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 March 31, 2017, Funds Distributor received $60,743 from the sale of Class A shares and $37 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2017 were $339,360,072 and $218,202,345, respectively.

Notes to financial statements (unaudited) Wells Fargo Diversified Capital Builder Fund 25

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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 months ended March 31, 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 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.

9. REGULATORY CHANGES

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

26 Wells Fargo Diversified Capital Builder 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 Diversified Capital Builder Fund 27

BOARD OF TRUSTEES AND OFFICERS

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

28 Wells Fargo Diversified Capital Builder 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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 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 Diversified Capital Builder Fund 29

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

302881 05-17 SA225/SAR225 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Diversified Income Builder 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	27
List of abbreviations	30

The views expressed and any forward-looking statements are as of March 31, 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 Diversified Income Builder Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Diversified Income Builder Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Diversified Income Builder Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Diversified Income Builder Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Fargo Capital Management Incorporated

Portfolio manager

Margaret Patel

Average annual total returns (%) as of March 31, 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 (EKSAX)	4-14-1987		6.89		6.58		5.02		13.40		7.87		5.64		1.08		1.08
Class B (EKSBX)*	2-1-1993		7.71		6.78		5.11		12.71		7.08		5.11		1.83		1.83
Class C (EKSCX)	2-1-1993		11.73		7.09		4.87		12.73		7.09		4.87		1.83		1.83
Administrator Class (EKSDX)	7-30-2010		–		–		–		13.62		8.07		5.76		1.00		0.90
Institutional Class (EKSYX)	1-13-1997		–		–		–		14.04		8.29		5.97		0.75		0.71
Diversified Income Builder Blended Index4	–		–		–		–		16.97		8.46		7.46		–		–
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index5	–		–		–		–		16.75		6.82		7.28		–		–
Russell 1000® Index6	–		–		–		–		17.43		13.26		7.58		–		–

* At the close of business on May 5, 2017, existing Class B shareholders were converted to Class A shareholders. Effective May 6, 2017, Class B shares are no longer offered by the Fund.

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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 smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Diversified Income Builder Fund 5

Ten largest holdings (%) as of March 31, 20177
Tronox Finance LLC, 6.38%, 8-15-2020	3.02
AMN Healthcare Incorporated, 5.13%, 10-1-2024	2.27
Lamb Weston Holdings Incorporated, 4.63%, 11-1-2024	2.17
Crown Castle International Corporation	2.16
National Fuel Gas Company	2.08
HD Supply Incorporated, 5.75%, 4-15-2024	1.97
TransDigm Group Incorporated, 6.38%, 6-15-2026	1.93
Koppers Incorporated, 6.00%, 2-15-2025	1.90
Penske Auto Group Incorporated, 5.75%, 10-1-2022	1.83
Orbital ATK Incorporated, 5.50%, 10-1-2023	1.79

Portfolio allocation as of March 31, 2017⁸

¹  Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares and has been 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 Diversified Income Builder 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 January 31, 2018, 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  Source: Wells Fargo Funds Management, LLC. The Diversified Income Builder Blended Index is composed of the BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index (75%) and Russell 1000^® Index (25%). You cannot invest directly in an index.

⁵  The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay Index is an unmanaged market index that provides a broad-based performance measure of the non-investment grade U.S. domestic bond index. You cannot invest directly in an index.

⁶  The Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index, which represents approximately 92% of the total market capitalization of the Russell 3000^® Index. 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  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 Diversified Income Builder 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,043.37	$	5.40		1.06	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.65	$	5.34		1.06	%
Class B
Actual	$	1,000.00	$	1,041.06	$	9.21		1.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.91	$	9.10		1.81	%
Class C
Actual	$	1,000.00	$	1,041.11	$	9.21		1.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.91	$	9.10		1.81	%
Administrator Class
Actual	$	1,000.00	$	1,044.75	$	4.59		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.44	$	4.53		0.90	%
Institutional Class
Actual	$	1,000.00	$	1,045.75	$	3.62		0.71	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.39	$	3.58		0.71	%

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—March 31, 2017 (unaudited) Wells Fargo Diversified Income Builder Fund 7

Security name	Shares		Value
Common Stocks: 28.78%
Consumer Discretionary: 1.00%
Auto Components: 0.35%
Gentex Corporation		100,000	$	2,133,000
Household Durables: 0.65%
Leggett & Platt Incorporated		65,000		3,270,800
Newell Rubbermaid Incorporated		15,000		707,550
				3,978,350
Consumer Staples: 4.24%
Food & Staples Retailing: 1.96%
CVS Health Corporation		120,000		9,420,000
Sysco Corporation		50,000		2,596,000
				12,016,000
Food Products: 1.79%
ConAgra Foods Incorporated		125,000		5,042,500
Lamb Weston Holdings Incorporated		140,000		5,888,400
				10,930,900
Personal Products: 0.49%
The Estee Lauder Companies Incorporated Class A		35,000		2,967,650
Energy: 5.76%
Oil, Gas & Consumable Fuels: 5.76%
EOG Resources Incorporated		10,000		975,500
EQT Corporation		30,000		1,833,000
Kinder Morgan Incorporated		460,000		10,000,400
Plains All American Pipeline LP		310,000		9,799,100
Tesoro Logistics LP		145,000		7,898,150
The Williams Companies Incorporated		160,000		4,734,400
				35,240,550
Health Care: 0.67%
Health Care Equipment & Supplies: 0.54%
Teleflex Incorporated		15,000		2,905,950
West Pharmaceutical Services Incorporated		5,000		408,050
				3,314,000
Life Sciences Tools & Services: 0.13%
Thermo Fisher Scientific Incorporated		5,000		768,000
Industrials: 2.90%
Aerospace & Defense: 2.28%
Curtiss-Wright Corporation		40,000		3,650,400
Huntington Ingalls Industries Incorporated		20,000		4,004,800

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

8 Wells Fargo Diversified Income Builder Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Aerospace & Defense (continued)
Lockheed Martin Corporation		1,000	$	267,600
Raytheon Company		25,000		3,812,500
TransDigm Group Incorporated †		10,000		2,201,600
				13,936,900
Building Products: 0.13%
Lennox International Incorporated		5,000		836,500
Machinery: 0.29%
John Bean Technologies Corporation		20,000		1,759,000
Trading Companies & Distributors: 0.20%
HD Supply Holdings Incorporated †		30,000		1,233,750
Information Technology: 8.21%
Electronic Equipment, Instruments & Components: 0.58%
Amphenol Corporation Class A		50,000		3,558,500
Internet Software & Services: 0.15%
Akamai Technologies Incorporated †		15,000		895,500
IT Services: 0.75%
Leidos Holdings Incorporated		90,000		4,602,600
Semiconductors & Semiconductor Equipment: 3.84%
Broadcom Limited		40,000		8,758,400
Intel Corporation		50,000		1,803,500
Microsemi Corporation †		80,000		4,122,400
QUALCOMM Incorporated		25,000		1,433,500
Texas Instruments Incorporated		30,000		2,416,800
Versum Materials Incorporated		30,000		918,000
Xilinx Incorporated		70,000		4,052,300
				23,504,900
Software: 2.42%
Adobe Systems Incorporated †		35,000		4,554,550
Microsoft Corporation		155,000		10,208,300
				14,762,850
Technology Hardware, Storage & Peripherals: 0.47%
Western Digital Corporation		35,000		2,888,550
Materials: 1.47%
Chemicals: 0.33%
Celanese Corporation Series A		20,000		1,797,000
Kooper Holdings Incorporated †		5,000		211,750
				2,008,750

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Diversified Income Builder Fund 9

Security name						Shares		Value
Containers & Packaging: 1.14%
Sealed Air Corporation							160,000	$	6,972,800
Real Estate: 3.50%
Equity REITs: 3.50%
Crown Castle International Corporation							140,000		13,223,000
Equinix Incorporated							15,000		6,005,550
Saul Centers Incorporated							35,000		2,156,700
									21,385,250
Utilities: 1.03%
Gas Utilities: 1.03%
Atmos Energy Corporation							80,000		6,319,200
Total Common Stocks (Cost $158,205,238)									176,013,500
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 63.58%
Consumer Discretionary: 7.14%
Auto Components: 2.44%
Dana Holding Corporation		5.50	%		12-15-2024	$	3,925,000		3,974,063
Lear Corporation		4.75			1-15-2023		4,875,000		5,049,715
Tenneco Incorporated		5.00			7-15-2026		6,000,000		5,876,220
									14,899,998
Hotels, Restaurants & Leisure: 0.78%
Speedway Motorsports Incorporated		5.13			2-1-2023		4,700,000		4,747,000
Media: 1.36%
McGraw-Hill Global Education Holdings LLC 144A «		7.88			5-15-2024		8,598,000		8,318,565
Specialty Retail: 2.56%
Group 1 Automotive Incorporated		5.00			6-1-2022		4,453,000		4,486,398
Penske Auto Group Incorporated		5.75			10-1-2022		10,813,000		11,191,455
									15,677,853
Consumer Staples: 2.48%
Food Products: 2.48%
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		13,000,000		13,260,000
Post Holdings Incorporated 144A		5.00			8-15-2026		2,000,000		1,915,000
									15,175,000
Energy: 2.17%
Oil, Gas & Consumable Fuels: 2.17%
Kinder Morgan Energy Partners LP		4.30			6-1-2025		3,500,000		3,575,306
ONEOK Incorporated		4.25			2-1-2022		3,737,000		3,811,740
Plains All American Pipeline LP		3.85			10-15-2023		2,345,000		2,351,106

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

10 Wells Fargo Diversified Income Builder Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Tennessee Gas Pipeline Company		7.00	%		3-15-2027	$	3,000,000	$	3,556,857
									13,295,009
Health Care: 7.36%
Health Care Equipment & Supplies: 1.15%
Halyard Health Incorporated		6.25			10-15-2022		1,000,000		1,030,000
Teleflex Incorporated		4.88			6-1-2026		6,000,000		6,030,000
									7,060,000
Health Care Providers & Services: 4.89%
AMN Healthcare Incorporated 144A		5.13			10-1-2024		13,750,000		13,887,500
DaVita HealthCare Partners Incorporated		5.13			7-15-2024		3,000,000		3,030,000
HCA Incorporated		5.25			6-15-2026		5,000,000		5,238,000
HCA Incorporated		5.38			2-1-2025		5,500,000		5,720,000
HealthSouth Corporation		5.13			3-15-2023		2,000,000		2,000,000
									29,875,500
Health Care Technology: 1.32%
QuintilesIMS Holdings Incorporated 144A		4.88			5-15-2023		7,000,000		7,096,250
QuintilesIMS Holdings Incorporated 144A		5.00			10-15-2026		1,000,000		1,003,750
									8,100,000
Industrials: 14.16%
Aerospace & Defense: 6.67%
Huntington Ingalls Industries Incorporated 144A		5.00			11-15-2025		8,000,000		8,360,000
Moog Incorporated 144A		5.25			12-1-2022		5,500,000		5,637,500
Orbital ATK Incorporated		5.50			10-1-2023		10,640,000		10,959,200
TransDigm Group Incorporated		6.38			6-15-2026		11,800,000		11,806,962
TransDigm Group Incorporated		6.50			5-15-2025		4,000,000		4,035,000
									40,798,662
Commercial Services & Supplies: 0.82%
ACCO Brands Corporation 144A		5.25			12-15-2024		5,000,000		5,025,000
Construction & Engineering: 0.33%
Aecom Company 144A		5.13			3-15-2027		2,000,000		2,005,000
Machinery: 2.44%
Actuant Corporation		5.63			6-15-2022		1,165,000		1,195,581
Oshkosh Corporation		5.38			3-1-2025		3,675,000		3,794,438
SPX FLOW Incorporated 144A		5.63			8-15-2024		4,500,000		4,539,375
SPX FLOW Incorporated 144A		5.88			8-15-2026		5,328,000		5,374,620
									14,904,014
Road & Rail: 0.43%
The Hertz Corporation 144A «		5.50			10-15-2024		3,000,000		2,606,250

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Diversified Income Builder Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Trading Companies & Distributors: 3.47%
HD Supply Incorporated 144A		5.75	%		4-15-2024	$	11,450,000	$	12,043,110
Wesco Distribution Incorporated		5.38			6-15-2024		8,974,000		9,198,350
									21,241,460
Information Technology: 11.82%
Communications Equipment: 1.60%
CommScope Incorporated 144A		5.50			6-15-2024		9,479,000		9,801,950
Electronic Equipment, Instruments & Components: 1.92%
Anixter International Incorporated		5.13			10-1-2021		4,000,000		4,160,000
Belden Incorporated 144A		5.25			7-15-2024		3,485,000		3,476,288
Belden Incorporated 144A		5.50			9-1-2022		4,000,000		4,080,000
									11,716,288
IT Services: 0.33%
Gartner Incorporated 144A		5.13			4-1-2025		2,000,000		2,037,500
Semiconductors & Semiconductor Equipment: 4.63%
Micron Technology Incorporated 144A		5.25			8-1-2023		3,700,000		3,792,500
Micron Technology Incorporated 144A		5.25			1-15-2024		3,000,000		3,081,570
Micron Technology Incorporated		5.50			2-1-2025		6,750,000		7,003,125
Micron Technology Incorporated 144A		7.50			9-15-2023		1,000,000		1,116,250
Microsemi Corporation 144A		9.13			4-15-2023		3,328,000		3,823,040
Versum Materials Incorporated 144A		5.50			9-30-2024		9,196,000		9,506,365
									28,322,850
Software: 1.62%
CommScope Technologies LLC 144A		5.00			3-15-2027		1,000,000		998,450
Nuance Communications Company 144A		6.00			7-1-2024		2,000,000		2,070,000
Symantec Corporation 144A		5.00			4-15-2025		6,705,000		6,861,414
									9,929,864
Technology Hardware, Storage & Peripherals: 1.72%
Diebold Incorporated		8.50			4-15-2024		8,500,000		9,392,500
Western Digital Corporation 144A		7.38			4-1-2023		1,000,000		1,096,250
									10,488,750
Materials: 13.65%
Chemicals: 7.73%
A. Schulman Incorporated		6.88			6-1-2023		7,500,000		7,781,250
Koppers Incorporated 144A		6.00			2-15-2025		11,250,000		11,615,625
Olin Corporation		5.50			8-15-2022		8,500,000		8,840,000
Rayonier Advanced Materials Products Incorporated 144A		5.50			6-1-2024		8,945,000		8,050,500
Scotts Miracle-Gro Company 144A		5.25			12-15-2026		4,000,000		4,050,000
Scotts Miracle-Gro Company		6.00			10-15-2023		6,000,000		6,375,000
Valvoline Incorporated 144A		5.50			7-15-2024		500,000		525,000
									47,237,375

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

12 Wells Fargo Diversified Income Builder Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Containers & Packaging: 2.54%
Ball Corporation		5.00	%		3-15-2022	$	2,500,000	$	2,637,500
Berry Plastics Corporation		5.13			7-15-2023		2,500,000		2,562,500
Berry Plastics Corporation		6.00			10-15-2022		4,100,000		4,335,750
Greif Incorporated		7.75			8-1-2019		545,000		603,586
Sealed Air Corporation 144A		5.25			4-1-2023		4,650,000		4,882,500
Sealed Air Corporation 144A		5.50			9-15-2025		500,000		530,000
									15,551,836
Metals & Mining: 3.38%
Commercial Metals Company		4.88			5-15-2023		2,150,000		2,193,000
Tronox Finance LLC «		6.38			8-15-2020		18,400,000		18,469,000
									20,662,000
Real Estate: 2.72%
Equity REITs: 2.72%
Equinix Incorporated		5.38			5-15-2027		3,000,000		3,097,500
Equinix Incorporated		5.75			1-1-2025		1,500,000		1,586,250
Iron Mountain Incorporated 144A		5.38			6-1-2026		6,500,000		6,483,750
Iron Mountain Incorporated		5.75			8-15-2024		3,927,000		4,005,540
Sabra Health Care REIT Incorporated		5.38			6-1-2023		1,500,000		1,477,500
									16,650,540
Utilities: 2.08%
Gas Utilities: 2.08%
National Fuel Gas Company		4.90			12-1-2021		12,000,000		12,702,540
Total Corporate Bonds and Notes (Cost $382,917,563)									388,830,804
Yankee Corporate Bonds and Notes: 6.06%
Health Care: 1.70%
Pharmaceuticals: 1.70%
Mallinckrodt plc 144A «		5.50			4-15-2025		5,655,000		5,202,600
Mallinckrodt plc 144A «		5.63			10-15-2023		5,500,000		5,225,000
									10,427,600
Industrials: 1.74%
Electrical Equipment: 1.74%
Sensata Technologies BV 144A		4.88			10-15-2023		6,700,000		6,712,529
Sensata Technologies BV 144A		5.63			11-1-2024		3,750,000		3,909,375
									10,621,904
Information Technology: 2.62%
Technology Hardware, Storage & Peripherals: 2.62%
Seagate HDD		4.75			6-1-2023		8,500,000		8,542,500
Seagate HDD		4.88			6-1-2027		8,000,000		7,488,728
									16,031,228
Total Yankee Corporate Bonds and Notes (Cost $36,708,445)									37,080,732

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Diversified Income Builder Fund 13

Security name	Yield			Shares		Value
Short-Term Investments: 4.62%
Investment Companies: 4.62%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98	%		23,963,123	$	23,965,519
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63			4,250,236		4,250,236
Total Short-Term Investments (Cost $28,215,146)							28,215,755

Total investments in securities (Cost $606,046,392) *	103.04	%		630,140,791
Other assets and liabilities, net	(3.04	)		(18,586,482	)
Total net assets	100.00	%	$	611,554,309

† 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.

(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.

* Cost for federal income tax purposes is $606,046,392 and unrealized gains (losses) consists of:

Gross unrealized gains	$	29,658,442
Gross unrealized losses		(5,564,043	)
Net unrealized gains	$	24,094,399

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

14 Wells Fargo Diversified Income Builder Fund Statement of assets and liabilities—March 31, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $23,347,526 of securities loaned), at value (cost $577,831,246)	$	601,925,036
In affiliated securities, at value (cost $28,215,146)		28,215,755
Total investments, at value (cost $606,046,392)		630,140,791
Receivable for Fund shares sold		3,194,764
Receivable for dividends and interest		7,255,563
Receivable for securities lending income		10,523
Prepaid expenses and other assets		113,687
Total assets		640,715,328
Liabilities
Distributions payable		199,349
Payable for investments purchased		2,759,859
Payable for Fund shares redeemed		1,622,761
Payable upon receipt of securities loaned		23,964,910
Management fee payable		287,766
Distribution fees payable		98,864
Administration fees payable		93,721
Accrued expenses and other liabilities		133,789
Total liabilities		29,161,019
Total net assets	$	611,554,309
NET ASSETS CONSIST OF
Paid-in capital	$	578,768,676
Overdistributed net investment income		(153,910	)
Accumulated net realized gains on investments		8,845,144
Net unrealized gains on investments		24,094,399
Total net assets	$	611,554,309
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	183,194,849
Shares outstanding – Class A1		29,346,886
Net asset value per share – Class A		$6.24
Maximum offering price per share – Class A2		$6.62
Net assets – Class B	$	325,929
Shares outstanding – Class B1		51,996
Net asset value per share – Class B		$6.27
Net assets – Class C	$	146,937,834
Shares outstanding – Class C1		23,485,682
Net asset value per share – Class C		$6.26
Net assets – Administrator Class	$	46,360,162
Shares outstanding – Administrator Class1		7,582,222
Net asset value per share – Administrator Class		$6.11
Net assets – Institutional Class	$	234,735,535
Shares outstanding – Institutional Class1		38,431,210
Net asset value per share – Institutional Class		$6.11

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended March 31, 2017 (unaudited) Wells Fargo Diversified Income Builder Fund 15

Investment income
Interest	$	10,218,532
Dividends		2,048,185
Securities lending income, net		73,349
Income from affiliated securities		18,078
Total investment income		12,358,144
Expenses
Management fee		1,452,145
Administration fees
Class A		181,126
Class B		389
Class C		143,645
Administrator Class		33,114
Institutional Class		109,920
Shareholder servicing fees
Class A		215,626
Class B		463
Class C		171,006
Administrator Class		63,404
Distribution fees
Class B		1,389
Class C		513,017
Custody and accounting fees		16,845
Professional fees		28,951
Registration fees		54,100
Shareholder report expenses		23,230
Trustees’ fees and expenses		7,558
Other fees and expenses		5,475
Total expenses		3,021,403
Less: Fee waivers and/or expense reimbursements		(37,509	)
Net expenses		2,983,894
Net investment income		9,374,250
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		8,845,570
Net change in unrealized gains (losses) on:
Unaffiliated securities		5,158,578
Affiiliated securities		609
Net change in unrealized gains (losses) on investments		5,159,187
Net realized and unrealized gains (losses) on investments		14,004,757
Net increase in net assets resulting from operations	$	23,379,007

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

16 Wells Fargo Diversified Income Builder Fund Statement of changes in net assets

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment income				$	9,374,250					$	13,285,487
Net realized gains on investments					8,845,570						3,608,586
Net change in unrealized gains (losses) on investments					5,159,187						38,971,424
Net increase in net assets resulting from operations					23,379,007						55,865,497
Distributions to shareholders from
Net investment income
Class A					(3,103,915	)					(4,830,169	)
Class B					(5,292	)					(26,929	)
Class C					(1,950,084	)					(3,170,739	)
Administrator Class					(976,122	)					(1,702,969	)
Institutional Class					(3,324,303	)					(3,550,714	)
Net realized gains
Class A					(1,136,813	)					(4,558,034	)
Class B					(2,603	)					(41,594	)
Class C					(905,222	)					(3,924,833	)
Administrator Class					(289,153	)					(1,131,639	)
Institutional Class					(1,137,209	)					(2,810,835	)
Total distributions to shareholders					(12,830,716	)					(25,748,455	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		9,966,412			61,353,599			7,444,175			43,402,347
Class B		784			4,818			9,699			56,089
Class C		4,900,178			30,199,985			5,591,017			32,728,412
Administrator Class		3,069,878			18,484,674			10,156,014			57,752,782
Institutional Class		21,738,228			130,934,010			12,005,792			68,220,100
					240,977,086						202,159,730
Reinvestment of distributions
Class A		645,736			3,970,448			1,540,577			8,715,930
Class B		985			6,070			8,851			49,757
Class C		398,611			2,455,542			1,039,282			5,870,456
Administrator Class		202,079			1,215,021			501,237			2,803,982
Institutional Class		624,310			3,760,299			916,214			5,097,329
					11,407,380						22,537,454
Payment for shares redeemed
Class A		(6,481,286	)		(40,313,221	)		(6,057,888	)		(35,108,089	)
Class B		(25,573	)		(158,082	)		(186,708	)		(1,095,883	)
Class C		(2,960,931	)		(18,265,796	)		(4,790,025	)		(27,491,552	)
Administrator Class		(7,360,122	)		(43,833,033	)		(4,588,670	)		(25,939,656	)
Institutional Class		(4,631,045	)		(27,793,278	)		(6,093,878	)		(34,215,881	)
					(130,363,410	)					(123,851,061	)
Net increase in net assets resulting from capital share transactions					122,021,056						100,846,123
Total increase in net assets					132,569,347						130,963,165
Net assets
Beginning of period					478,984,962						348,021,797
End of period				$	611,554,309					$	478,984,962
Overdistributed net investment income				$	(153,910	)				$	(168,444	)

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

Financial highlights Wells Fargo Diversified Income Builder Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$6.13			$5.71			$6.37			$6.13			$6.00			$5.26
Net investment income		0.11			0.20			0.21			0.23			0.25			0.28
Net realized and unrealized gains (losses) on investments		0.15			0.64			(0.31	)		0.38			0.13			0.74
Total from investment operations		0.26			0.84			(0.10	)		0.61			0.38			1.02
Distributions to shareholders from
Net investment income		(0.11	)		(0.21	)		(0.21	)		(0.23	)		(0.25	)		(0.28	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00			0.00
Total distributions to shareholders		(0.15	)		(0.42	)		(0.56	)		(0.37	)		(0.25	)		(0.28	)
Net asset value, end of period		$6.24			$6.13			$5.71			$6.37			$6.13			$6.00
Total return1		4.34	%		15.39	%		(1.92	)%		10.13	%		6.37	%		19.86	%
Ratios to average net assets (annualized)
Gross expenses		1.06	%		1.08	%		1.11	%		1.13	%		1.12	%		1.14	%
Net expenses		1.06	%		1.08	%		1.08	%		1.08	%		1.08	%		1.08	%
Net investment income		3.60	%		3.55	%		3.38	%		3.60	%		4.03	%		4.93	%
Supplemental data
Portfolio turnover rate		26	%		38	%		63	%		52	%		60	%		72	%
Net assets, end of period (000s omitted)		$183,195			$154,496			$127,242			$143,062			$159,229			$145,156

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 Diversified Income Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS B				2016			2015			2014			2013			2012
Net asset value, beginning of period		$6.15			$5.73			$6.40			$6.15			$6.02			$5.28
Net investment income		0.09	1		0.16	1		0.16	1		0.18	1		0.21	1		0.24	1
Net realized and unrealized gains (losses) on investments		0.16			0.63			(0.32	)		0.39			0.12			0.74
Total from investment operations		0.25			0.79			(0.16	)		0.57			0.33			0.98
Distributions to shareholders from
Net investment income		(0.09	)		(0.16	)		(0.16	)		(0.18	)		(0.20	)		(0.24	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00			0.00
Total distributions to shareholders		(0.13	)		(0.37	)		(0.51	)		(0.32	)		(0.20	)		(0.24	)
Net asset value, end of period		$6.27			$6.15			$5.73			$6.40			$6.15			$6.02
Total return2		4.11	%		14.49	%		(2.80	)%		9.46	%		5.57	%		18.92	%
Ratios to average net assets (annualized)
Gross expenses		1.81	%		1.83	%		1.86	%		1.88	%		1.87	%		1.88	%
Net expenses		1.81	%		1.83	%		1.83	%		1.83	%		1.83	%		1.83	%
Net investment income		2.88	%		2.80	%		2.65	%		2.86	%		3.31	%		4.21	%
Supplemental data
Portfolio turnover rate		26	%		38	%		63	%		52	%		60	%		72	%
Net assets, end of period (000s omitted)		$326			$466			$1,398			$3,256			$4,557			$6,449

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 Diversified Income Builder Fund 19

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$6.14			$5.72			$6.39			$6.14			$6.01			$5.27
Net investment income		0.09	1		0.16	1		0.16	1		0.18			0.20			0.24
Net realized and unrealized gains (losses) on investments		0.16			0.63			(0.32	)		0.39			0.13			0.74
Total from investment operations		0.25			0.79			(0.16	)		0.57			0.33			0.98
Distributions to shareholders from
Net investment income		(0.09	)		(0.16	)		(0.16	)		(0.18	)		(0.20	)		(0.24	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00			0.00
Total distributions to shareholders		(0.13	)		(0.37	)		(0.51	)		(0.32	)		(0.20	)		(0.24	)
Net asset value, end of period		$6.26			$6.14			$5.72			$6.39			$6.14			$6.01
Total return2		4.11	%		14.51	%		(2.81	)%		9.47	%		5.58	%		18.94	%
Ratios to average net assets (annualized)
Gross expenses		1.81	%		1.83	%		1.86	%		1.88	%		1.87	%		1.89	%
Net expenses		1.81	%		1.83	%		1.83	%		1.83	%		1.83	%		1.83	%
Net investment income		2.86	%		2.80	%		2.62	%		2.85	%		3.29	%		4.18	%
Supplemental data
Portfolio turnover rate		26	%		38	%		63	%		52	%		60	%		72	%
Net assets, end of period (000s omitted)		$146,938			$129,856			$110,457			$111,045			$112,113			$114,896

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.

20 Wells Fargo Diversified Income Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$6.00			$5.60			$6.25			$6.01			$5.89			$5.16
Net investment income		0.11	1		0.21	1		0.21	1		0.24			0.26			0.28
Net realized and unrealized gains (losses) on investments		0.15			0.61			(0.30	)		0.38			0.12			0.74
Total from investment operations		0.26			0.82			(0.09	)		0.62			0.38			1.02
Distributions to shareholders from
Net investment income		(0.11	)		(0.21	)		(0.21	)		(0.24	)		(0.26	)		(0.29	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00			0.00
Total distributions to shareholders		(0.15	)		(0.42	)		(0.56	)		(0.38	)		(0.26	)		(0.29	)
Net asset value, end of period		$6.11			$6.00			$5.60			$6.25			$6.01			$5.89
Total return2		4.48	%		15.45	%		(1.69	)%		10.46	%		6.43	%		20.15	%
Ratios to average net assets (annualized)
Gross expenses		0.98	%		1.00	%		0.97	%		0.96	%		0.96	%		0.97	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		3.85	%		3.72	%		3.56	%		3.77	%		4.21	%		5.10	%
Supplemental data
Portfolio turnover rate		26	%		38	%		63	%		52	%		60	%		72	%
Net assets, end of period (000s omitted)		$46,360			$70,051			$31,367			$48,690			$43,135			$35,727

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 Diversified Income Builder Fund 21

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$6.00			$5.59			$6.25			$6.01			$5.88			$5.16
Net investment income		0.12	1		0.23			0.24			0.25	1		0.27	1		0.30	1
Net realized and unrealized gains (losses) on investments		0.15			0.61			(0.32	)		0.38			0.13			0.72
Total from investment operations		0.27			0.84			(0.08	)		0.63			0.40			1.02
Distributions to shareholders from
Net investment income		(0.12	)		(0.22	)		(0.23	)		(0.25	)		(0.27	)		(0.30	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00			0.00
Total distributions to shareholders		(0.16	)		(0.43	)		(0.58	)		(0.39	)		(0.27	)		(0.30	)
Net asset value, end of period		$6.11			$6.00			$5.59			$6.25			$6.01			$5.88
Total return2		4.58	%		15.88	%		(1.65	)%		10.68	%		6.83	%		20.18	%
Ratios to average net assets (annualized)
Gross expenses		0.73	%		0.75	%		0.71	%		0.70	%		0.69	%		0.71	%
Net expenses		0.71	%		0.71	%		0.69	%		0.70	%		0.69	%		0.71	%
Net investment income		3.93	%		3.92	%		3.76	%		3.98	%		4.43	%		5.32	%
Supplemental data
Portfolio turnover rate		26	%		38	%		63	%		52	%		60	%		72	%
Net assets, end of period (000s omitted)		$234,736			$124,116			$77,558			$61,133			$49,807			$59,031

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.

22 Wells Fargo Diversified Income Builder 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Diversified Income Builder 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 companies 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 Diversified Income Builder 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.

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 accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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.

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.

24 Wells Fargo Diversified Income Builder Fund Notes to financial statements (unaudited)

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 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	6,111,350	$	0	$	0	$	6,111,350
Consumer staples		25,914,550		0		0		25,914,550
Energy		35,240,550		0		0		35,240,550
Health care		4,082,000		0		0		4,082,000
Industrials		17,766,150		0		0		17,766,150
Information technology		50,212,900		0		0		50,212,900
Materials		8,981,550		0		0		8,981,550
Real estate		21,385,250		0		0		21,385,250
Utilities		6,319,200		0		0		6,319,200
Corporate bonds and notes		0		388,830,804		0		388,830,804
Yankee corporate bonds and notes		0		37,080,732		0		37,080,732
Short-term investments
Investment companies		4,250,236		0		0		4,250,236
Investments measured at net asset value*								23,965,519
Total assets	$	180,263,736	$	425,911,536	$	0	$	630,140,791

* 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 $23,965,519 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 March 31, 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

Notes to financial statements (unaudited) Wells Fargo Diversified Income Builder Fund 25

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 March 31, 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		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.08% for Class A shares, 1.83% for Class B shares, 1.83% for Class C shares, 0.90% for Administrator Class shares, and 0.71% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $13,663 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 $10,871 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 March 31, 2017, Funds Distributor received $56,255 from the sale of Class A shares and $124 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.

26 Wells Fargo Diversified Income Builder 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 March 31, 2017 were $279,899,666 and $142,775,826 respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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 months ended March 31, 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 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.

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 Diversified Income Builder 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 Diversified Income Builder 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	Position held and	Principal occupations during past five years or longer	Current other public company or investment company
William R. Ebsworth (Born 1957)	Trustee, since 2015	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he lead a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Board member of the Fonté Foundation (non-profit organization) and the Vincent Memorial Hospital Endowment (non-profit organization), where he serves on the Investment Committee and as a Chair of the Audit Committee. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

Other information (unaudited) Wells Fargo Diversified Income Builder Fund 29

Name and	Position held and	Principal occupations during past five years or longer	Current other public company or investment company
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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 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 Diversified Income Builder Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

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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.

302882 05-17 SA226/SAR226 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Index Asset Allocation 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	28
Statement of operations	29
Statement of changes in net assets	30
Financial highlights	31
Notes to financial statements	35
Other information	42
List of abbreviations	45

The views expressed and any forward-looking statements are as of March 31, 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 Index Asset Allocation Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Index Asset Allocation Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point 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 Index Asset Allocation Fund 3

between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Index Asset Allocation Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kandarp R. Acharya, CFA^®, FRM

Petros Bocray, CFA^®, FRM‡

Christian L. Chan, CFA^®

Average annual total returns (%) as of March 31, 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 (SFAAX)	11-13-1986		3.12		9.12		5.89		9.40			10.42		6.52		1.10		1.10
Class C (WFALX)	4-1-1998		7.63		9.60		5.73		8.63			9.60		5.73		1.85		1.85
Administrator Class (WFAIX)	11-8-1999		–		–		–		9.61			10.67		6.79		1.02		0.90
Institutional Class (WFATX)	10-31-2016		–		–		–		9.69			10.69		6.79		0.77		0.75
Index Asset Allocation Blended Index4	–		–		–		–		9.44			10.28		8.09		–		–
Bloomberg Barclays U.S. Treasury Index5	–		–		–		–		(1.44	)		1.61		3.89		–		–
S&P 500 Index6	–		–		–		–		17.17			13.30		7.51		–		–

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Index Asset Allocation Fund 5

Ten largest holdings (%) as of March 31, 20177
Apple Incorporated	2.22
Microsoft Corporation	1.50
Amazon.com Incorporated	1.03
Exxon Mobil Corporation	1.00
Johnson & Johnson	0.99
Facebook Incorporated Class A	0.98
Berkshire Hathaway Incorporated Class B	0.93
JPMorgan Chase & Company	0.92
General Electric Company	0.76
AT&T Incorporated	0.75

Sector distribution as of March 31, 2017⁸

Neutral target allocation

Current target allocation as of March 31, 2017⁹

^‡  Mr. Bocray became the portfolio manager of the Fund on October 1, 2016.

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 expenses of the Institutional Class shares. If these expenses had been included, returns for Institutional Class shares 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 January 31, 2018, 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 1.15% for Class A, 1.90% for Class C, 0.90% for Administrator Class, and 0.75% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  Source: Wells Fargo Funds Management, LLC. Effective April 1, 2015, the Index Asset Allocation Blended Index is weighted 60% in the S&P 500 Index and 40% in the Bloomberg Barclays U.S. Treasury Index. Prior to April 1, 2015, the Index Asset Allocation Blended Index was weighted 60% in the S&P 500 Index and 40% in the Bloomberg Barclays U.S. Treasury 20+ Year Index (formerly known as Barclays U.S. Treasury 20+ Year Index). You cannot invest directly in an index.

⁵  The Bloomberg Barclays U.S. Treasury Index (formerly known as Barclays U.S. Treasury Index) is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index.

⁶  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.

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  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.

⁹  Current target allocation includes the effect of any tactical futures overlay that may be in place. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo Index Asset Allocation 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,053.59	$	5.53		1.08	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.55	$	5.44		1.08	%
Class C
Actual	$	1,000.00	$	1,049.86	$	9.35		1.83	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.81	$	9.20		1.83	%
Administrator Class
Actual	$	1,000.00	$	1,054.67	$	4.61		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.44	$	4.53		0.90	%
Institutional Class
Actual	$	1,000.00	$	1,055.51	$	3.84		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.19	$	3.78		0.75	%

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—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 0.01%
FNMA Series 2002-T1 Class A4		9.50	%		11-25-2031	$	56,020	$	67,017
Total Agency Securities (Cost $57,042)									67,017
						Shares
Common Stocks: 59.57%
Consumer Discretionary: 7.35%
Auto Components: 0.12%
BorgWarner Incorporated							7,352		307,240
Delphi Automotive plc							9,913		797,897
The Goodyear Tire & Rubber Company							9,255		333,180
									1,438,317
Automobiles: 0.31%
Ford Motor Company							143,561		1,671,050
General Motors Company							50,133		1,772,703
Harley-Davidson Incorporated							6,485		392,343
									3,836,096
Distributors: 0.07%
Genuine Parts Company							5,456		504,189
LKQ Corporation †							11,328		331,571
									835,760
Diversified Consumer Services: 0.01%
H&R Block Incorporated							7,616		177,072
Hotels, Restaurants & Leisure: 0.95%
Carnival Corporation							15,371		905,506
Chipotle Mexican Grill Incorporated †							1,057		470,915
Darden Restaurants Incorporated							4,566		382,037
Marriott International Incorporated Class A							11,567		1,089,380
McDonald’s Corporation							30,121		3,903,983
Royal Caribbean Cruises Limited							6,162		604,554
Starbucks Corporation							53,600		3,129,704
Wyndham Worldwide Corporation							3,860		325,359
Wynn Resorts Limited «							2,923		335,005
Yum! Brands Incorporated							12,362		789,932
									11,936,375
Household Durables: 0.27%
D.R. Horton Incorporated							12,497		416,275
Garmin Limited «							4,230		216,195
Leggett & Platt Incorporated							4,919		247,524
Lennar Corporation Class A							7,472		382,492
Mohawk Industries Incorporated †							2,318		531,958
Newell Rubbermaid Incorporated							17,742		836,890

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

8 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Household Durables (continued)
PulteGroup Incorporated		10,520	$	247,746
Whirlpool Corporation		2,739		469,273
				3,348,353
Internet & Direct Marketing Retail: 1.54%
Amazon.com Incorporated †		14,566		12,913,342
Expedia Incorporated		4,433		559,312
Netflix Incorporated †		15,830		2,339,832
The Priceline Group Incorporated †		1,808		3,218,186
TripAdvisor Incorporated †		4,153		179,243
				19,209,915
Leisure Products: 0.06%
Hasbro Incorporated		4,114		410,659
Mattel Incorporated		12,594		322,532
				733,191
Media: 1.92%
CBS Corporation Class B		13,678		948,706
Charter Communications Incorporated Class A †		7,911		2,589,429
Comcast Corporation Class A		174,060		6,542,915
Discovery Communications Incorporated Class A †		5,612		163,253
Discovery Communications Incorporated Class C †		7,934		224,612
DISH Network Corporation Class A †		8,345		529,824
Interpublic Group of Companies Incorporated		14,442		354,840
News Corporation Class A		14,037		182,481
News Corporation Class B		4,405		59,468
Omnicom Group Incorporated		8,625		743,561
Scripps Networks Interactive Incorporated Class A		3,513		275,314
Tegna Incorporated		7,897		202,321
The Walt Disney Company		53,502		6,066,592
Time Warner Incorporated		28,478		2,782,585
Twenty-First Century Fox Incorporated Class A		38,702		1,253,558
Twenty-First Century Fox Incorporated Class B		17,914		569,307
Viacom Incorporated Class B		12,779		595,757
				24,084,523
Multiline Retail: 0.26%
Dollar General Corporation		9,347		651,766
Dollar Tree Incorporated †		8,682		681,190
Kohl’s Corporation		6,490		258,367
Macy’s Incorporated		11,184		331,494
Nordstrom Incorporated «		4,188		195,035
Target Corporation		20,453		1,128,801
				3,246,653
Specialty Retail: 1.44%
Advance Auto Parts Incorporated		2,712		402,081
AutoNation Incorporated †		2,411		101,961

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 9

Security name	Shares		Value
Specialty Retail (continued)
AutoZone Incorporated †		1,046	$	756,310
Bed Bath & Beyond Incorporated		5,528		218,135
Best Buy Company Incorporated		9,959		489,485
CarMax Incorporated †«		6,881		407,493
Foot Locker Incorporated		4,867		364,100
L Brands Incorporated		8,834		416,081
Lowe’s Companies Incorporated		31,850		2,618,389
O’Reilly Automotive Incorporated †		3,370		909,361
Ross Stores Incorporated		14,495		954,786
Signet Jewelers Limited		2,559		177,262
Staples Incorporated		23,926		209,831
The Gap Incorporated		8,068		195,972
The Home Depot Incorporated		44,801		6,578,131
The TJX Companies Incorporated		23,975		1,895,943
Tiffany & Company		3,936		375,101
Tractor Supply Company		4,808		331,608
ULTA Salon Cosmetics & Fragrance Incorporated †		2,151		613,530
				18,015,560
Textiles, Apparel & Luxury Goods: 0.40%
Coach Incorporated		10,320		426,526
HanesBrands Incorporated «		13,928		289,145
Michael Kors Holdings Limited †		5,974		227,669
Nike Incorporated Class B		48,739		2,716,224
PVH Corporation		2,915		301,615
Ralph Lauren Corporation		2,071		169,035
Under Armour Incorporated Class A †«		6,757		133,653
Under Armour Incorporated Class C †«		6,779		124,056
VF Corporation		12,184		669,754
				5,057,677
Consumer Staples: 5.54%
Beverages: 1.22%
Brown-Forman Corporation Class B		6,505		300,401
Constellation Brands Incorporated Class A		6,352		1,029,469
Dr Pepper Snapple Group Incorporated		6,733		659,295
Molson Coors Brewing Company Class B		6,781		649,010
Monster Beverage Corporation †		14,796		683,131
PepsiCo Incorporated		52,490		5,871,531
The Coca-Cola Company		142,114		6,031,318
				15,224,155
Food & Staples Retailing: 1.16%
Costco Wholesale Corporation		16,144		2,707,187
CVS Health Corporation		37,723		2,961,256
Sysco Corporation		18,278		948,994
The Kroger Company		33,982		1,002,129
Wal-Mart Stores Incorporated		55,383		3,992,007

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

10 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Food & Staples Retailing (continued)
Walgreens Boots Alliance Incorporated		31,361	$	2,604,531
Whole Foods Market Incorporated		11,716		348,200
				14,564,304
Food Products: 0.92%
Archer Daniels Midland Company		21,003		966,978
Campbell Soup Company		7,114		407,205
ConAgra Foods Incorporated		15,205		613,370
General Mills Incorporated		21,331		1,258,742
Hormel Foods Corporation		9,918		343,460
Kellogg Company		9,298		675,128
McCormick & Company Incorporated		4,180		407,759
Mead Johnson Nutrition Company		6,746		600,934
Mondelez International Incorporated Class A		56,146		2,418,770
The Hershey Company		5,136		561,108
The J.M. Smucker Company		4,281		561,153
The Kraft Heinz Company		21,934		1,991,827
Tyson Foods Incorporated Class A		10,553		651,226
				11,457,660
Household Products: 1.09%
Church & Dwight Company Incorporated		9,365		467,033
Colgate-Palmolive Company		32,469		2,376,406
Kimberly-Clark Corporation		13,084		1,722,247
The Clorox Company		4,717		635,993
The Procter & Gamble Company		94,022		8,447,877
				13,649,556
Personal Products: 0.08%
Coty Incorporated Class A		17,311		313,848
The Estee Lauder Companies Incorporated Class A		8,175		693,158
				1,007,006
Tobacco: 1.07%
Altria Group Incorporated		71,328		5,094,246
Philip Morris International		57,057		6,441,735
Reynolds American Incorporated		30,417		1,916,879
				13,452,860
Energy: 3.92%
Energy Equipment & Services: 0.64%
Baker Hughes Incorporated		15,642		935,704
Halliburton Company		31,885		1,569,061
Helmerich & Payne Incorporated «		3,992		265,747
National Oilwell Varco Incorporated		13,929		558,414
Schlumberger Limited		51,273		4,004,421
TechnipFMC plc †		17,161		557,733
Transocean Limited †«		14,317		178,247
				8,069,327

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 11

Security name	Shares		Value
Oil, Gas & Consumable Fuels: 3.28%
Anadarko Petroleum Corporation		20,558	$	1,274,596
Apache Corporation		13,964		717,610
Cabot Oil & Gas Corporation		17,475		417,827
Chesapeake Energy Corporation †«		28,014		166,403
Chevron Corporation		69,625		7,475,636
Cimarex Energy Company		3,497		417,857
Concho Resources Incorporated †		5,448		699,196
ConocoPhillips		45,452		2,266,691
Devon Energy Corporation		19,293		804,904
EOG Resources Incorporated		21,215		2,069,523
EQT Corporation		6,374		389,451
Exxon Mobil Corporation		152,501		12,506,607
Hess Corporation		9,895		477,038
Kinder Morgan Incorporated		70,610		1,535,061
Marathon Oil Corporation		31,158		492,296
Marathon Petroleum Corporation		19,411		981,032
Murphy Oil Corporation		5,959		170,368
Newfield Exploration Company †		7,314		269,960
Noble Energy Incorporated		16,015		549,955
Occidental Petroleum Corporation		28,109		1,780,986
ONEOK Incorporated		7,751		429,715
Phillips 66 Company		16,225		1,285,345
Pioneer Natural Resources Company		6,244		1,162,820
Range Resources Corporation		6,918		201,314
Southwestern Energy Company †		18,313		149,617
Tesoro Corporation		4,301		348,639
The Williams Companies Incorporated		30,372		898,707
Valero Energy Corporation		16,588		1,099,619
				41,038,773
Financials: 8.56%
Banks: 3.85%
Bank of America Corporation		368,704		8,697,727
BB&T Corporation		29,731		1,328,976
Citigroup Incorporated		101,901		6,095,718
Citizens Financial Group Incorporated		18,724		646,914
Comerica Incorporated		6,468		443,575
Fifth Third Bancorp		27,601		701,065
Huntington Bancshares Incorporated		39,936		534,743
JPMorgan Chase & Company		131,370		11,539,541
KeyCorp		39,442		701,279
M&T Bank Corporation		5,669		877,164
People’s United Financial Incorporated		11,655		212,121
PNC Financial Services Group Incorporated		17,880		2,149,891
Regions Financial Corporation		44,327		644,071
SunTrust Banks Incorporated		18,074		999,492
US Bancorp		58,567		3,016,201
Wells Fargo & Company (l)		165,612		9,217,964
Zions Bancorporation		7,444		312,648
				48,119,090

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

12 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Capital Markets: 1.69%
Affiliated Managers Group Incorporated		2,084	$	341,651
Ameriprise Financial Incorporated		5,666		734,767
Bank of New York Mellon Corporation		38,155		1,802,061
BlackRock Incorporated		4,474		1,715,824
CBOE Holdings Incorporated		3,373		273,449
Charles Schwab Corporation		44,679		1,823,350
CME Group Incorporated		12,491		1,483,931
E*TRADE Financial Corporation †		10,102		352,459
Franklin Resources Incorporated		12,683		534,462
Goldman Sachs Group Incorporated		13,626		3,130,165
Intercontinental Exchange Incorporated		21,907		1,311,572
Invesco Limited		14,842		454,610
Moody’s Corporation		6,105		684,004
Morgan Stanley		52,848		2,264,008
Northern Trust Corporation		7,909		684,761
Raymond James Financial Incorporated		4,702		358,575
S&P Global Incorporated		9,504		1,242,553
State Street Corporation		13,204		1,051,170
T. Rowe Price Group Incorporated		8,952		610,079
The NASDAQ OMX Group Incorporated		4,231		293,843
				21,147,294
Consumer Finance: 0.47%
American Express Company		27,843		2,202,660
Capital One Financial Corporation		17,677		1,531,889
Discover Financial Services		14,178		969,633
Navient Corporation		10,702		157,962
Synchrony Financial		28,327		971,616
				5,833,760
Diversified Financial Services: 0.95%
Berkshire Hathaway Incorporated Class B †		69,852		11,642,931
Leucadia National Corporation		11,909		309,634
				11,952,565
Insurance: 1.60%
AFLAC Incorporated		14,763		1,069,136
American International Group Incorporated		34,224		2,136,604
Aon plc		9,658		1,146,308
Arthur J. Gallagher & Company		6,569		371,411
Assurant Incorporated		2,046		195,741
Chubb Limited		17,130		2,333,963
Cincinnati Financial Corporation		5,512		398,352
Lincoln National Corporation		8,283		542,122
Loews Corporation		10,152		474,809
Marsh & McLennan Companies Incorporated		18,940		1,399,477
MetLife Incorporated		39,987		2,112,113
Principal Financial Group Incorporated		9,833		620,561
Prudential Financial Incorporated		15,814		1,687,038

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 13

Security name	Shares		Value
Insurance (continued)
The Allstate Corporation		13,429	$	1,094,329
The Hartford Financial Services Group Incorporated		13,751		661,011
The Progressive Corporation		21,361		836,924
The Travelers Companies Incorporated		10,286		1,239,874
Torchmark Corporation		4,027		310,240
Unum Group		8,430		395,283
Willis Towers Watson plc		4,685		613,220
XL Group Limited		9,744		388,396
				20,026,912
Health Care: 8.28%
Biotechnology: 1.69%
AbbVie Incorporated		58,620		3,819,679
Alexion Pharmaceuticals Incorporated †		8,260		1,001,442
Amgen Incorporated		27,085		4,443,836
Biogen Incorporated		7,940		2,170,955
Celgene Corporation †		28,612		3,560,191
Gilead Sciences Incorporated		48,071		3,264,982
Incyte Corporation †		6,478		865,914
Regeneron Pharmaceuticals Incorporated †		2,796		1,083,478
Vertex Pharmaceuticals Incorporated †		9,137		999,131
				21,209,608
Health Care Equipment & Supplies: 1.55%
Abbott Laboratories		63,552		2,822,344
Baxter International Incorporated		17,877		927,101
Becton Dickinson & Company		7,827		1,435,785
Boston Scientific Corporation †		50,146		1,247,131
C.R. Bard Incorporated		2,648		658,134
Danaher Corporation		22,438		1,919,122
Dentsply Sirona Incorporated		8,447		527,431
Edwards Lifesciences Corporation †		7,815		735,157
Hologic Incorporated †		10,272		437,074
IDEXX Laboratories Incorporated †		3,236		500,318
Intuitive Surgical Incorporated †		1,350		1,034,735
Medtronic plc		50,345		4,055,793
Stryker Corporation		11,381		1,498,309
The Cooper Companies Incorporated		1,799		359,602
Varian Medical Systems Incorporated		3,436		313,123
Zimmer Biomet Holdings Incorporated		7,395		903,003
				19,374,162
Health Care Providers & Services: 1.58%
Aetna Incorporated		12,935		1,649,859
AmerisourceBergen Corporation		6,072		537,372
Anthem Incorporated		9,723		1,607,990
Cardinal Health Incorporated		11,602		946,143
Centene Corporation †		6,326		450,791

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

14 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Health Care Providers & Services (continued)
Cigna Corporation		9,453	$	1,384,770
DaVita HealthCare Partners Incorporated †		5,725		389,128
Envision Healthcare Corporation †		4,319		264,841
Express Scripts Holding Company †		22,276		1,468,211
HCA Holdings Incorporated †		10,618		944,896
Henry Schein Incorporated †		2,912		494,953
Humana Incorporated		5,492		1,132,121
Laboratory Corporation of America Holdings †		3,762		539,734
McKesson Corporation		7,798		1,156,131
Patterson Companies Incorporated «		3,024		136,776
Quest Diagnostics Incorporated		5,056		496,449
UnitedHealth Group Incorporated		34,982		5,737,398
Universal Health Services Incorporated Class B		3,284		408,694
				19,746,257
Health Care Technology: 0.05%
Cerner Corporation †		10,792		635,109
Life Sciences Tools & Services: 0.39%
Agilent Technologies Incorporated		11,844		626,192
Illumina Incorporated †		5,380		918,043
Mettler-Toledo International Incorporated †		953		456,401
PerkinElmer Incorporated		4,037		234,388
Thermo Fisher Scientific Incorporated		14,357		2,205,235
Waters Corporation †		2,945		460,333
				4,900,592
Pharmaceuticals: 3.02%
Allergan plc		12,329		2,945,645
Bristol-Myers Squibb Company		61,519		3,345,403
Eli Lilly & Company		35,710		3,003,568
Johnson & Johnson		99,792		12,429,094
Mallinckrodt plc †		3,853		171,728
Merck & Company Incorporated		100,976		6,416,015
Mylan NV †		16,938		660,413
Perrigo Company plc		5,272		350,008
Pfizer Incorporated		218,898		7,488,501
Zoetis Incorporated		18,093		965,623
				37,775,998
Industrials: 6.01%
Aerospace & Defense: 1.33%
Arconic Incorporated		16,202		426,761
General Dynamics Corporation		10,466		1,959,235
L-3 Technologies Incorporated		2,861		472,895
Lockheed Martin Corporation		9,182		2,457,103
Northrop Grumman Corporation		6,420		1,526,933
Raytheon Company		10,771		1,642,578
Rockwell Collins Incorporated		4,810		467,340

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 15

Security name	Shares		Value
Aerospace & Defense (continued)
Textron Incorporated		9,933	$	472,711
The Boeing Company		20,949		3,705,040
TransDigm Group Incorporated «		1,826		402,012
United Technologies Corporation		27,563		3,092,844
				16,625,452
Air Freight & Logistics: 0.42%
C.H. Robinson Worldwide Incorporated		5,199		401,831
Expeditors International of Washington Incorporated		6,624		374,190
FedEx Corporation		9,017		1,759,668
United Parcel Service Incorporated Class B		25,348		2,719,840
				5,255,529
Airlines: 0.35%
Alaska Air Group Incorporated		4,540		418,679
American Airlines Group Incorporated		18,541		784,284
Delta Air Lines Incorporated		26,876		1,235,221
Southwest Airlines Company		22,628		1,216,481
United Continental Holdings Incorporated †		10,529		743,769
				4,398,434
Building Products: 0.20%
Allegion plc		3,510		265,707
Fortune Brands Home & Security Incorporated		5,629		342,525
Johnson Controls International plc		34,524		1,454,151
Masco Corporation		11,780		400,402
				2,462,785
Commercial Services & Supplies: 0.18%
Cintas Corporation		3,167		400,752
Republic Services Incorporated		8,480		532,629
Stericycle Incorporated †		3,129		259,363
Waste Management Incorporated		14,877		1,084,831
				2,277,575
Construction & Engineering: 0.06%
Fluor Corporation		5,125		269,678
Jacobs Engineering Group Incorporated		4,452		246,107
Quanta Services Incorporated †		5,561		206,369
				722,154
Electrical Equipment: 0.33%
Acuity Brands Incorporated		1,621		330,684
AMETEK Incorporated		8,439		456,381
Eaton Corporation plc		16,539		1,226,367
Emerson Electric Company		23,725		1,420,179
Rockwell Automation Incorporated		4,729		736,353
				4,169,964

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

16 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Industrial Conglomerates: 1.44%
3M Company		21,927	$	4,195,293
General Electric Company		320,880		9,562,224
Honeywell International Incorporated		27,996		3,495,861
Roper Industries Incorporated		3,746		773,512
				18,026,890
Machinery: 0.89%
Caterpillar Incorporated		21,569		2,000,740
Cummins Incorporated		5,689		860,177
Deere & Company		10,778		1,173,293
Dover Corporation		5,719		459,522
Flowserve Corporation		4,800		232,416
Fortive Corporation		11,071		666,696
Illinois Tool Works Incorporated		11,471		1,519,563
Ingersoll-Rand plc		9,544		776,118
Paccar Incorporated		12,905		867,216
Parker-Hannifin Corporation		4,902		785,889
Pentair plc		6,149		386,034
Snap-on Incorporated		2,131		359,436
Stanley Black & Decker Incorporated		5,612		745,666
Xylem Incorporated		6,600		331,452
				11,164,218
Professional Services: 0.16%
Dun & Bradstreet Corporation		1,353		146,043
Equifax Incorporated		4,409		602,887
Nielsen Holdings plc		12,361		510,633
Robert Half International Incorporated		4,699		229,452
Verisk Analytics Incorporated †		5,689		461,605
				1,950,620
Road & Rail: 0.54%
CSX Corporation		34,073		1,586,098
J.B. Hunt Transport Services Incorporated		3,193		292,926
Kansas City Southern		3,921		336,265
Norfolk Southern Corporation		10,686		1,196,511
Ryder System Incorporated		1,965		148,240
Union Pacific Corporation		29,929		3,170,080
				6,730,120
Trading Companies & Distributors: 0.11%
Fastenal Company		10,638		547,857
United Rentals Incorporated †		3,100		387,655
W.W. Grainger Incorporated		1,990		463,192
				1,398,704
Information Technology: 13.16%
Communications Equipment: 0.64%
Cisco Systems Incorporated		184,179		6,225,250
F5 Networks Incorporated †		2,382		339,602

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 17

Security name	Shares		Value
Communications Equipment (continued)
Harris Corporation		4,577	$	509,283
Juniper Networks Incorporated		14,048		390,956
Motorola Solutions Incorporated		6,059		522,407
				7,987,498
Electronic Equipment, Instruments & Components: 0.23%
Amphenol Corporation Class A		11,315		805,289
Corning Incorporated		34,133		921,591
FLIR Systems Incorporated		5,014		181,908
TE Connectivity Limited		13,067		974,145
				2,882,933
Internet Software & Services: 2.72%
Akamai Technologies Incorporated †		6,369		380,229
Alphabet Incorporated Class A †		10,927		9,263,911
Alphabet Incorporated Class C †		10,867		9,014,829
eBay Incorporated †		37,180		1,248,133
Facebook Incorporated Class A †		86,618		12,304,087
VeriSign Incorporated †«		3,273		285,111
Yahoo! Incorporated †		32,284		1,498,300
				33,994,600
IT Services: 2.22%
Accenture plc Class A		22,899		2,745,132
Alliance Data Systems Corporation		2,056		511,944
Automatic Data Processing Incorporated		16,510		1,690,459
Cognizant Technology Solutions Corporation Class A †		22,384		1,332,296
CSRA Incorporated		5,338		156,350
Fidelity National Information Services Incorporated		12,091		962,685
Fiserv Incorporated †		7,891		909,911
Global Payments Incorporated		5,600		451,808
International Business Machines Corporation		31,567		5,497,077
MasterCard Incorporated Class A		34,651		3,897,198
Paychex Incorporated		11,745		691,781
PayPal Holdings Incorporated †		41,303		1,776,855
Teradata Corporation †		4,813		149,781
The Western Union Company «		17,686		359,910
Total System Services Incorporated		6,069		324,449
Visa Incorporated Class A		68,334		6,072,843
Xerox Corporation		31,406		230,520
				27,760,999
Semiconductors & Semiconductor Equipment: 2.04%
Advanced Micro Devices Incorporated †		28,371		412,798
Analog Devices Incorporated		13,386		1,096,983
Applied Materials Incorporated		39,714		1,544,875
Broadcom Limited		14,749		3,229,441
Intel Corporation		173,886		6,272,068
KLA-Tencor Corporation		5,764		547,983

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

18 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Semiconductors & Semiconductor Equipment (continued)
Lam Research Corporation		5,989	$	768,748
Microchip Technology Incorporated		7,959		587,215
Micron Technology Incorporated †		38,123		1,101,755
NVIDIA Corporation		21,662		2,359,642
Qorvo Incorporated †		4,650		318,804
QUALCOMM Incorporated		54,322		3,114,823
Skyworks Solutions Incorporated		6,801		666,362
Texas Instruments Incorporated		36,765		2,961,788
Xilinx Incorporated		9,155		529,983
				25,513,268
Software: 2.75%
Activision Blizzard Incorporated		25,440		1,268,438
Adobe Systems Incorporated †		18,230		2,372,270
Autodesk Incorporated †		7,203		622,843
CA Incorporated		11,529		365,700
Citrix Systems Incorporated		5,750		479,493
Electronic Arts Incorporated †		11,337		1,014,888
Intuit Incorporated		8,936		1,036,487
Microsoft Corporation		284,203		18,717,610
Oracle Corporation		110,226		4,917,182
Red Hat Incorporated †		6,557		567,181
Salesforce.com Incorporated †		24,086		1,986,854
Symantec Corporation		22,759		698,246
Synopsys Incorporated †		5,535		399,240
				34,446,432
Technology Hardware, Storage & Peripherals: 2.56%
Apple Incorporated		192,958		27,720,346
Hewlett Packard Enterprise Company		61,229		1,451,127
HP Incorporated		62,279		1,113,549
NetApp Incorporated		9,964		416,993
Seagate Technology plc		10,856		498,616
Western Digital Corporation		10,594		874,323
				32,074,954
Materials: 1.69%
Chemicals: 1.26%
Air Products & Chemicals Incorporated		8,002		1,082,591
Albemarle Corporation		4,139		437,244
CF Industries Holdings Incorporated		8,573		251,618
E.I. du Pont de Nemours & Company		31,797		2,554,253
Eastman Chemical Company		5,387		435,270
Ecolab Incorporated		9,656		1,210,283
FMC Corporation		4,917		342,174
International Flavors & Fragrances Incorporated		2,906		385,132
LyondellBasell Industries NV Class A		12,139		1,106,955
Monsanto Company		16,127		1,825,576
PPG Industries Incorporated		9,455		993,531

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 19

Security name	Shares		Value
Chemicals (continued)
Praxair Incorporated		10,484	$	1,243,402
The Dow Chemical Company		41,053		2,608,508
The Mosaic Company		12,880		375,838
The Sherwin-Williams Company		2,984		925,607
				15,777,982
Construction Materials: 0.09%
Martin Marietta Materials Incorporated		2,319		506,122
Vulcan Materials Company		4,867		586,376
				1,092,498
Containers & Packaging: 0.18%
Avery Dennison Corporation		3,288		265,013
Ball Corporation		6,438		478,086
International Paper Company		15,125		768,048
Sealed Air Corporation		7,115		310,072
WestRock Company		9,209		479,144
				2,300,363
Metals & Mining: 0.16%
Freeport-McMoRan Incorporated †		48,905		653,371
Newmont Mining Corporation		19,548		644,302
Nucor Corporation		11,727		700,336
				1,998,009
Real Estate: 1.74%
Equity REITs: 1.71%
Alexandria Real Estate Equities Incorporated		3,267		361,069
American Tower Corporation		15,711		1,909,515
Apartment Investment & Management Company Class A		5,775		256,121
AvalonBay Communities Incorporated		5,050		927,180
Boston Properties Incorporated		5,657		749,043
Crown Castle International Corporation		13,260		1,252,407
Digital Realty Trust Incorporated		5,857		623,126
Equinix Incorporated		2,634		1,054,575
Equity Residential		13,501		840,032
Essex Property Trust Incorporated		2,410		557,987
Extra Space Storage Incorporated		4,630		344,426
Federal Realty Investment Trust		2,651		353,909
GGP Incorporated		21,481		497,930
HCP Incorporated		17,219		538,610
Host Hotels & Resorts Incorporated		27,188		507,328
Iron Mountain Incorporated		9,020		321,743
Kimco Realty Corporation		15,654		345,797
Mid-America Apartment Communities Incorporated		4,176		424,866
Prologis Incorporated		19,468		1,010,000
Public Storage Incorporated		5,492		1,202,254
Realty Income Corporation		9,970		593,514

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

20 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Equity REITs (continued)
Regency Centers Corporation		5,370	$	356,514
Simon Property Group Incorporated		11,762		2,023,417
SL Green Realty Corporation		3,698		394,281
The Macerich Company		4,445		286,258
UDR Incorporated		9,829		356,400
Ventas Incorporated		13,042		848,252
Vornado Realty Trust		6,330		634,962
Welltower Incorporated		13,334		944,314
Weyerhaeuser Company		27,547		936,047
				21,451,877
Real Estate Management & Development: 0.03%
CBRE Group Incorporated Class A †		11,057		384,673
Telecommunication Services: 1.42%
Diversified Telecommunication Services: 1.42%
AT&T Incorporated		225,875		9,385,106
CenturyLink Incorporated «		20,102		473,804
Level 3 Communications Incorporated †		10,745		614,829
Verizon Communications Incorporated		149,918		7,308,503
				17,782,242
Utilities: 1.90%
Electric Utilities: 1.19%
Alliant Energy Corporation		8,373		331,655
American Electric Power Company Incorporated		18,084		1,213,979
Duke Energy Corporation		25,730		2,110,117
Edison International		11,982		953,887
Entergy Corporation		6,597		501,108
Eversource Energy		11,654		685,022
Exelon Corporation		34,078		1,226,126
FirstEnergy Corporation		16,273		517,807
NextEra Energy Incorporated		17,197		2,207,579
PG&E Corporation		18,643		1,237,149
Pinnacle West Capital Corporation		4,094		341,358
PPL Corporation		24,999		934,713
The Southern Company		36,449		1,814,431
Xcel Energy Incorporated		18,655		829,215
				14,904,146
Independent Power & Renewable Electricity Producers: 0.04%
AES Corporation		24,244		271,048
NRG Energy Incorporated		11,620		217,294
				488,342
Multi-Utilities: 0.63%
Ameren Corporation		8,924		487,161
CenterPoint Energy Incorporated		15,840		436,709

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 21

Security name						Shares		Value
Multi-Utilities (continued)
CMS Energy Corporation							10,294	$	460,554
Consolidated Edison Incorporated							11,220		871,345
Dominion Resources Incorporated							23,101		1,791,945
DTE Energy Company							6,598		673,722
NiSource Incorporated							11,896		283,006
Public Service Enterprise Group Incorporated							18,618		825,708
SCANA Corporation							5,256		343,480
Sempra Energy							9,215		1,018,258
WEC Energy Group Incorporated							11,607		703,732
									7,895,620
Water Utilities: 0.04%
American Water Works Company Incorporated							6,554		509,705
Total Common Stocks (Cost $426,243,617)									745,533,066
	Interest rate			Maturity date		Principal
Non-Agency Mortgage-Backed Securities: 0.00%
Citigroup Mortgage Loan Trust Incorporated Series 2004-HYB4 Class AA ±		1.31	%		12-25-2034	$	15,748		13,868
Total Non-Agency Mortgage-Backed Securities (Cost $15,748)									13,868
				Expiration date		Shares
Rights: 0.00%
Consumer Staples: 0.00%
Food & Staples Retailing: 0.00%
Safeway Casa Ley Contingent Value Rights †(a)(i)					1-30-2019		6,765		0
Safeway PDC LLC Contingent Value Rights †(a)(i)					1-30-2017		6,765		0
									0
Total Rights (Cost $7,171)									0
				Maturity date		Principal
U.S. Treasury Securities: 38.12%
U.S. Treasury Bond		2.75			8-15-2042	$	1,340,000		1,277,083
U.S. Treasury Bond		2.75			11-15-2042		1,781,000		1,695,359
U.S. Treasury Bond		2.88			5-15-2043		2,534,000		2,466,591
U.S. Treasury Bond		3.00			5-15-2042		904,000		903,611
U.S. Treasury Bond		3.13			11-15-2041		846,000		865,564
U.S. Treasury Bond		3.13			2-15-2042		1,066,000		1,090,443
U.S. Treasury Bond		3.13			2-15-2043		1,783,000		1,817,963
U.S. Treasury Bond		3.50			2-15-2039		731,000		804,300
U.S. Treasury Bond		3.63			8-15-2043		2,200,000		2,449,132
U.S. Treasury Bond		3.75			8-15-2041		929,000		1,053,435
U.S. Treasury Bond		3.88			8-15-2040		946,000		1,093,332
U.S. Treasury Bond		4.25			5-15-2039		681,000		831,405
U.S. Treasury Bond		4.25			11-15-2040		977,000		1,192,513
U.S. Treasury Bond		4.38			2-15-2038		381,000		475,298
U.S. Treasury Bond		4.38			11-15-2039		757,000		939,301

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

22 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Bond		4.38	%		5-15-2040	$	1,078,000	$	1,338,152
U.S. Treasury Bond		4.38			5-15-2041		842,000		1,048,323
U.S. Treasury Bond		4.50			2-15-2036		837,000		1,061,255
U.S. Treasury Bond		4.50			5-15-2038		428,000		542,691
U.S. Treasury Bond		4.50			8-15-2039		721,000		910,375
U.S. Treasury Bond		4.63			2-15-2040		1,276,000		1,638,514
U.S. Treasury Bond		4.75			2-15-2037		264,000		344,602
U.S. Treasury Bond		4.75			2-15-2041		1,084,000		1,419,109
U.S. Treasury Bond		5.00			5-15-2037		375,000		504,228
U.S. Treasury Bond		5.25			11-15-2028		479,000		611,979
U.S. Treasury Bond		5.25			2-15-2029		349,000		447,374
U.S. Treasury Bond		5.38			2-15-2031		752,000		1,003,949
U.S. Treasury Bond		5.50			8-15-2028		369,000		479,037
U.S. Treasury Bond		6.00			2-15-2026		445,000		575,110
U.S. Treasury Bond		6.13			11-15-2027		525,000		706,248
U.S. Treasury Bond		6.13			8-15-2029		293,000		405,736
U.S. Treasury Bond		6.25			5-15-2030		478,000		677,378
U.S. Treasury Bond		6.38			8-15-2027		224,000		305,165
U.S. Treasury Note		0.50			7-31-2017		1,713,000		1,711,390
U.S. Treasury Note		0.63			6-30-2017		1,440,000		1,439,325
U.S. Treasury Note		0.63			7-31-2017		1,401,000		1,400,014
U.S. Treasury Note		0.63			8-31-2017		3,435,000		3,431,510
U.S. Treasury Note		0.63			9-30-2017		3,180,000		3,175,529
U.S. Treasury Note		0.63			11-30-2017		1,966,000		1,961,315
U.S. Treasury Note		0.63			4-30-2018		1,753,000		1,743,825
U.S. Treasury Note		0.63			6-30-2018		1,609,000		1,598,881
U.S. Treasury Note		0.75			6-30-2017		1,845,000		1,844,568
U.S. Treasury Note		0.75			10-31-2017		3,139,000		3,135,321
U.S. Treasury Note		0.75			12-31-2017		1,742,000		1,738,462
U.S. Treasury Note		0.75			1-31-2018		1,502,000		1,498,362
U.S. Treasury Note		0.75			2-28-2018		3,204,000		3,194,612
U.S. Treasury Note		0.75			3-31-2018		1,422,000		1,417,224
U.S. Treasury Note		0.75			4-15-2018		1,350,000		1,345,253
U.S. Treasury Note		0.75			4-30-2018		1,588,000		1,581,921
U.S. Treasury Note		0.75			7-31-2018		1,717,000		1,707,946
U.S. Treasury Note		0.75			8-31-2018		1,718,000		1,708,135
U.S. Treasury Note		0.75			9-30-2018		1,732,000		1,720,770
U.S. Treasury Note		0.75			10-31-2018		1,732,000		1,719,687
U.S. Treasury Note		0.75			2-15-2019		1,392,000		1,379,386
U.S. Treasury Note		0.75			7-15-2019		1,583,000		1,561,976
U.S. Treasury Note		0.75			8-15-2019		1,584,000		1,561,601
U.S. Treasury Note		0.88			7-15-2017		1,515,000		1,515,118
U.S. Treasury Note		0.88			8-15-2017		1,518,000		1,518,118
U.S. Treasury Note		0.88			10-15-2017		1,521,000		1,520,405
U.S. Treasury Note		0.88			11-15-2017		1,445,000		1,444,210
U.S. Treasury Note		0.88			11-30-2017		1,474,000		1,472,964
U.S. Treasury Note		0.88			1-15-2018		1,339,000		1,337,431
U.S. Treasury Note		0.88			1-31-2018		1,231,000		1,229,268
U.S. Treasury Note		0.88			3-31-2018		1,577,000		1,573,797
U.S. Treasury Note		0.88			5-31-2018		1,585,000		1,580,418

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 23

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		0.88	%		7-15-2018	$	1,294,000	$	1,289,501
U.S. Treasury Note		0.88			10-15-2018		1,390,000		1,383,321
U.S. Treasury Note		0.88			4-15-2019		1,460,000		1,448,024
U.S. Treasury Note		0.88			5-15-2019		1,466,000		1,452,944
U.S. Treasury Note		0.88			6-15-2019		1,485,000		1,470,555
U.S. Treasury Note		0.88			7-31-2019		811,000		802,320
U.S. Treasury Note		0.88			9-15-2019		1,550,000		1,530,867
U.S. Treasury Note		1.00			9-15-2017		1,515,000		1,515,711
U.S. Treasury Note		1.00			12-15-2017		1,405,000		1,404,945
U.S. Treasury Note		1.00			12-31-2017		1,473,000		1,472,770
U.S. Treasury Note		1.00			2-15-2018		1,336,000		1,335,321
U.S. Treasury Note		1.00			3-15-2018		1,338,000		1,336,955
U.S. Treasury Note		1.00			5-15-2018		1,328,000		1,326,236
U.S. Treasury Note		1.00			5-31-2018		1,878,000		1,875,213
U.S. Treasury Note		1.00			8-15-2018		1,291,000		1,288,175
U.S. Treasury Note		1.00			9-15-2018		1,292,000		1,288,669
U.S. Treasury Note		1.00			11-30-2018		1,540,000		1,534,585
U.S. Treasury Note		1.00			3-15-2019		1,383,000		1,375,815
U.S. Treasury Note		1.00			6-30-2019		622,000		617,529
U.S. Treasury Note		1.00			8-31-2019		1,842,000		1,825,523
U.S. Treasury Note		1.00			9-30-2019		1,695,000		1,678,513
U.S. Treasury Note		1.00			10-15-2019		1,596,000		1,579,916
U.S. Treasury Note		1.00			11-15-2019		1,433,000		1,417,046
U.S. Treasury Note		1.00			11-30-2019		1,985,000		1,963,056
U.S. Treasury Note		1.13			6-15-2018		1,326,000		1,325,741
U.S. Treasury Note		1.13			1-15-2019		1,444,000		1,441,180
U.S. Treasury Note		1.13			1-31-2019		1,783,000		1,779,309
U.S. Treasury Note		1.13			5-31-2019		690,000		687,413
U.S. Treasury Note		1.13			12-31-2019		1,247,000		1,236,186
U.S. Treasury Note		1.13			3-31-2020		1,987,000		1,963,869
U.S. Treasury Note		1.13			4-30-2020		1,330,000		1,313,064
U.S. Treasury Note		1.13			2-28-2021		3,264,000		3,184,313
U.S. Treasury Note		1.13			6-30-2021		3,343,000		3,245,976
U.S. Treasury Note		1.13			7-31-2021		2,232,000		2,164,431
U.S. Treasury Note		1.13			8-31-2021		2,233,000		2,163,219
U.S. Treasury Note		1.13			9-30-2021		2,188,000		2,116,634
U.S. Treasury Note		1.25			10-31-2018		1,759,000		1,760,237
U.S. Treasury Note		1.25			11-15-2018		1,370,000		1,370,856
U.S. Treasury Note		1.25			11-30-2018		1,654,000		1,654,969
U.S. Treasury Note		1.25			12-15-2018		1,363,000		1,363,639
U.S. Treasury Note		1.25			12-31-2018		1,788,000		1,788,699
U.S. Treasury Note		1.25			1-31-2019		1,335,000		1,335,312
U.S. Treasury Note		1.25			4-30-2019		586,000		585,611
U.S. Treasury Note		1.25			10-31-2019		804,000		800,766
U.S. Treasury Note		1.25			1-31-2020		3,442,000		3,419,548
U.S. Treasury Note		1.25			2-29-2020		1,745,000		1,732,389
U.S. Treasury Note		1.25			3-31-2021		3,250,000		3,182,462
U.S. Treasury Note		1.25			10-31-2021		2,188,000		2,126,548
U.S. Treasury Note		1.25			7-31-2023		1,829,000		1,730,763
U.S. Treasury Note		1.38			6-30-2018		1,357,000		1,360,976

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

24 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.38	%		7-31-2018	$	1,610,000	$	1,614,592
U.S. Treasury Note		1.38			9-30-2018		2,875,000		2,883,200
U.S. Treasury Note		1.38			11-30-2018		787,000		789,152
U.S. Treasury Note		1.38			12-31-2018		968,000		970,420
U.S. Treasury Note		1.38			2-28-2019		1,295,000		1,297,985
U.S. Treasury Note		1.38			12-15-2019		1,651,000		1,647,647
U.S. Treasury Note		1.38			1-15-2020		1,638,000		1,633,969
U.S. Treasury Note		1.38			1-31-2020		2,293,000		2,286,731
U.S. Treasury Note		1.38			2-29-2020		3,442,000		3,428,421
U.S. Treasury Note		1.38			3-31-2020		3,442,000		3,426,673
U.S. Treasury Note		1.38			4-30-2020		3,442,000		3,423,176
U.S. Treasury Note		1.38			5-31-2020		1,380,000		1,371,160
U.S. Treasury Note		1.38			8-31-2020		3,350,000		3,318,724
U.S. Treasury Note		1.38			9-30-2020		3,356,000		3,322,178
U.S. Treasury Note		1.38			10-31-2020		3,178,000		3,142,991
U.S. Treasury Note		1.38			1-31-2021		3,192,000		3,146,986
U.S. Treasury Note		1.38			4-30-2021		3,245,000		3,190,241
U.S. Treasury Note		1.38			5-31-2021		3,248,000		3,189,890
U.S. Treasury Note		1.38			6-30-2023		1,733,000		1,655,285
U.S. Treasury Note		1.38			8-31-2023		1,817,000		1,731,118
U.S. Treasury Note		1.38			9-30-2023		1,778,000		1,691,948
U.S. Treasury Note		1.50			8-31-2018		2,781,000		2,793,275
U.S. Treasury Note		1.50			12-31-2018		1,855,000		1,863,550
U.S. Treasury Note		1.50			1-31-2019		1,716,000		1,723,842
U.S. Treasury Note		1.50			2-28-2019		1,826,000		1,834,416
U.S. Treasury Note		1.50			3-31-2019		645,000		648,024
U.S. Treasury Note		1.50			5-31-2019		2,387,000		2,396,885
U.S. Treasury Note		1.50			10-31-2019		3,442,000		3,448,320
U.S. Treasury Note		1.50			11-30-2019		3,133,000		3,137,894
U.S. Treasury Note		1.50			5-31-2020		3,442,000		3,432,992
U.S. Treasury Note		1.50			1-31-2022		1,625,000		1,592,817
U.S. Treasury Note		1.50			2-28-2023		1,635,000		1,580,265
U.S. Treasury Note		1.50			3-31-2023		1,679,000		1,620,693
U.S. Treasury Note		1.50			8-15-2026		4,143,000		3,832,760
U.S. Treasury Note		1.63			3-31-2019		2,104,000		2,118,547
U.S. Treasury Note		1.63			4-30-2019		1,703,000		1,714,575
U.S. Treasury Note		1.63			6-30-2019		2,157,000		2,170,734
U.S. Treasury Note		1.63			7-31-2019		2,128,000		2,141,217
U.S. Treasury Note		1.63			8-31-2019		3,442,000		3,462,167
U.S. Treasury Note		1.63			12-31-2019		3,442,000		3,457,193
U.S. Treasury Note		1.63			6-30-2020		3,442,000		3,444,554
U.S. Treasury Note		1.63			7-31-2020		3,213,000		3,213,125
U.S. Treasury Note		1.63			11-30-2020		2,166,000		2,159,400
U.S. Treasury Note		1.63			8-15-2022		1,250,000		1,224,316
U.S. Treasury Note		1.63			11-15-2022		2,108,000		2,059,170
U.S. Treasury Note		1.63			4-30-2023		1,711,000		1,662,209
U.S. Treasury Note		1.63			5-31-2023		1,714,000		1,663,384
U.S. Treasury Note		1.63			10-31-2023		1,824,000		1,762,369
U.S. Treasury Note		1.63			2-15-2026		4,269,000		4,013,193
U.S. Treasury Note		1.63			5-15-2026		4,111,000		3,855,345

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 25

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.75	%		10-31-2018	$	704,000	$	710,105
U.S. Treasury Note		1.75			9-30-2019		3,441,000		3,470,975
U.S. Treasury Note		1.75			10-31-2020		1,585,000		1,588,468
U.S. Treasury Note		1.75			12-31-2020		3,353,000		3,355,226
U.S. Treasury Note		1.75			11-30-2021		2,003,000		1,989,776
U.S. Treasury Note		1.75			2-28-2022		1,637,000		1,622,357
U.S. Treasury Note		1.75			3-31-2022		1,640,000		1,624,305
U.S. Treasury Note		1.75			4-30-2022		1,612,000		1,595,250
U.S. Treasury Note		1.75			5-15-2022		1,448,000		1,432,502
U.S. Treasury Note		1.75			9-30-2022		1,771,000		1,743,882
U.S. Treasury Note		1.75			1-31-2023		1,684,000		1,652,425
U.S. Treasury Note		1.75			5-15-2023		3,117,000		3,048,816
U.S. Treasury Note		1.88			8-31-2017		1,517,000		1,523,044
U.S. Treasury Note		1.88			9-30-2017		1,307,000		1,313,075
U.S. Treasury Note		1.88			10-31-2017		1,485,000		1,492,657
U.S. Treasury Note		1.88			6-30-2020		1,888,000		1,905,109
U.S. Treasury Note		1.88			11-30-2021		1,649,000		1,646,939
U.S. Treasury Note		1.88			1-31-2022		2,358,000		2,352,657
U.S. Treasury Note		1.88			5-31-2022		1,795,000		1,786,305
U.S. Treasury Note		1.88			8-31-2022		1,754,000		1,740,298
U.S. Treasury Note		1.88			10-31-2022		1,650,000		1,634,145
U.S. Treasury Note		2.00			7-31-2020		1,306,000		1,322,223
U.S. Treasury Note		2.00			9-30-2020		2,093,000		2,117,283
U.S. Treasury Note		2.00			11-30-2020		2,266,000		2,289,102
U.S. Treasury Note		2.00			2-28-2021		2,421,000		2,442,184
U.S. Treasury Note		2.00			5-31-2021		1,559,000		1,570,693
U.S. Treasury Note		2.00			8-31-2021		1,641,000		1,649,911
U.S. Treasury Note		2.00			10-31-2021		1,649,000		1,656,343
U.S. Treasury Note		2.00			11-15-2021		2,485,000		2,496,163
U.S. Treasury Note		2.00			12-31-2021		2,300,000		2,308,625
U.S. Treasury Note		2.00			2-15-2022		1,679,000		1,685,953
U.S. Treasury Note		2.00			7-31-2022		1,778,000		1,777,166
U.S. Treasury Note		2.00			11-30-2022		1,625,000		1,618,653
U.S. Treasury Note		2.00			2-15-2023		3,077,000		3,060,655
U.S. Treasury Note		2.00			2-15-2025		4,486,000		4,385,590
U.S. Treasury Note		2.00			8-15-2025		4,495,000		4,376,130
U.S. Treasury Note		2.00			11-15-2026		4,255,000		4,109,398
U.S. Treasury Note		2.13			8-31-2020		1,477,000		1,500,078
U.S. Treasury Note		2.13			1-31-2021		1,409,000		1,428,209
U.S. Treasury Note		2.13			6-30-2021		1,516,000		1,533,943
U.S. Treasury Note		2.13			8-15-2021		2,440,000		2,468,594
U.S. Treasury Note		2.13			9-30-2021		1,633,000		1,649,712
U.S. Treasury Note		2.13			12-31-2021		1,626,000		1,641,117
U.S. Treasury Note		2.13			6-30-2022		1,615,000		1,625,851
U.S. Treasury Note		2.13			12-31-2022		1,678,000		1,681,737
U.S. Treasury Note		2.13			11-30-2023		1,638,000		1,632,049
U.S. Treasury Note		2.13			5-15-2025		4,466,000		4,397,617
U.S. Treasury Note		2.25			11-30-2017		1,250,000		1,260,205
U.S. Treasury Note		2.25			7-31-2018		521,000		528,489
U.S. Treasury Note		2.25			3-31-2021		1,440,000		1,465,481

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

26 Wells Fargo Index Asset Allocation Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		2.25	%		4-30-2021	$	1,514,000	$	1,540,554
U.S. Treasury Note		2.25			7-31-2021		2,618,000		2,660,951
U.S. Treasury Note		2.25			12-31-2023		1,886,000		1,892,335
U.S. Treasury Note		2.25			1-31-2024		1,914,000		1,919,459
U.S. Treasury Note		2.25			11-15-2024		4,492,000		4,479,369
U.S. Treasury Note		2.25			11-15-2025		4,512,000		4,472,696
U.S. Treasury Note		2.38			7-31-2017		1,253,000		1,259,457
U.S. Treasury Note		2.38			5-31-2018		621,000		629,733
U.S. Treasury Note		2.38			6-30-2018		795,000		807,018
U.S. Treasury Note		2.38			12-31-2020		1,317,000		1,347,919
U.S. Treasury Note		2.38			8-15-2024		4,465,000		4,499,532
U.S. Treasury Note		2.50			6-30-2017		1,144,000		1,148,602
U.S. Treasury Note		2.50			8-15-2023		2,662,000		2,715,344
U.S. Treasury Note		2.50			5-15-2024		4,360,000		4,436,810
U.S. Treasury Note		2.63			1-31-2018		861,000		872,233
U.S. Treasury Note		2.63			4-30-2018		657,000		667,625
U.S. Treasury Note		2.63			8-15-2020		3,367,000		3,475,111
U.S. Treasury Note		2.63			11-15-2020		5,315,000		5,487,517
U.S. Treasury Note		2.75			12-31-2017		960,000		972,150
U.S. Treasury Note		2.75			2-28-2018		756,000		767,163
U.S. Treasury Note		2.75			2-15-2019		1,365,000		1,403,231
U.S. Treasury Note		2.75			11-15-2023		3,936,000		4,074,528
U.S. Treasury Note		2.75			2-15-2024		3,410,000		3,527,884
U.S. Treasury Note		2.88			3-31-2018		858,000		872,915
U.S. Treasury Note		3.13			5-15-2019		1,768,000		1,835,474
U.S. Treasury Note		3.13			5-15-2021		1,657,000		1,743,086
U.S. Treasury Note		3.38			11-15-2019		3,180,000		3,340,739
U.S. Treasury Note		3.50			2-15-2018		1,278,000		1,304,759
U.S. Treasury Note		3.50			5-15-2020		2,864,000		3,032,260
U.S. Treasury Note		3.63			8-15-2019		1,545,000		1,626,958
U.S. Treasury Note		3.63			2-15-2020		2,648,000		2,807,915
U.S. Treasury Note		3.63			2-15-2021		2,765,000		2,960,062
U.S. Treasury Note		3.75			11-15-2018		1,505,000		1,566,258
U.S. Treasury Note		3.88			5-15-2018		689,000		710,370
U.S. Treasury Note		4.00			8-15-2018		788,000		818,719
U.S. Treasury Note		4.25			11-15-2017		919,000		937,380
U.S. Treasury Note		4.75			8-15-2017		857,000		869,253
U.S. Treasury Note		6.25			8-15-2023		378,000		470,935
U.S. Treasury Note		6.50			11-15-2026		296,000		400,618
U.S. Treasury Note		6.63			2-15-2027		215,000		295,037
U.S. Treasury Note		6.75			8-15-2026		221,000		302,433
U.S. Treasury Note		6.88			8-15-2025		224,000		302,059
U.S. Treasury Note		7.13			2-15-2023		260,000		332,668
U.S. Treasury Note		7.25			8-15-2022		261,000		330,328
U.S. Treasury Note		7.50			11-15-2024		240,000		328,716
U.S. Treasury Note		7.63			11-15-2022		140,000		181,398
U.S. Treasury Note		7.63			2-15-2025		216,000		299,666
U.S. Treasury Note		7.88			2-15-2021		180,000		221,055
U.S. Treasury Note		8.00			11-15-2021		511,000		648,690
U.S. Treasury Note		8.13			8-15-2019		307,000		355,305

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 27

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		8.13	%		5-15-2021	$	181,000	$	226,165
U.S. Treasury Note		8.13			8-15-2021		175,000		220,862
U.S. Treasury Note		8.50			2-15-2020		162,000		194,033
U.S. Treasury Note		8.75			5-15-2020		130,000		158,351
U.S. Treasury Note		8.75			8-15-2020		288,000		355,016
U.S. Treasury Note		8.88			8-15-2017		271,000		278,981
U.S. Treasury Note		8.88			2-15-2019		306,000		349,820
U.S. Treasury Note		9.00			11-15-2018		193,000		217,381
U.S. Treasury Note		9.13			5-15-2018		169,000		184,118
Total U.S. Treasury Securities (Cost $478,842,142)									477,025,109
	Yield					Shares
Short-Term Investments: 2.34%
Investment Companies: 2.22%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98					3,314,482		3,314,813
Wells Fargo Government Money Market Select Class (l)(u)		0.63					24,425,716		24,425,716
									27,740,529
						Principal
U.S. Treasury Securities: 0.12%
Treasury Bill (z)#		0.72			6-22-2017	$	1,544,000		1,541,440
Total Short-Term Investments (Cost $29,281,884)									29,281,969

Total investments in securities (Cost $934,447,604) *	100.04	%		1,251,921,029
Other assets and liabilities, net	(0.04	)		(511,053	)
Total net assets	100.00	%	$	1,251,409,976

† Non-income-earning security

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

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

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

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

(i) Illiquid security

(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 $934,861,785 and unrealized gains (losses) consists of:

Gross unrealized gains	$	329,182,372
Gross unrealized losses		(12,123,128	)
Net unrealized gains	$	317,059,244

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

28 Wells Fargo Index Asset Allocation Fund Statement of assets and liabilities—March 31, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $3,238,441 of securities loaned), at value (cost $901,080,778)	$	1,214,962,536
In affiliated securities, at value (cost $33,366,826)		36,958,493
Total investments, at value (cost $934,447,604)		1,251,921,029
Cash		765
Receivable for Fund shares sold		2,739,046
Receivable for dividends and interest		2,877,997
Receivable for daily variation margin on open futures contracts		25,594
Receivable for securities lending income		1,230
Prepaid expenses and other assets		287,505
Total assets		1,257,853,166
Liabilities
Payable for investments purchased		1,997
Payable for Fund shares redeemed		1,585,616
Payable upon receipt of securities loaned		3,314,813
Payable for daily variation margin on open futures contracts		176,753
Management fee payable		669,617
Distribution fees payable		104,360
Administration fees payable		217,409
Accrued expenses and other liabilities		372,625
Total liabilities		6,443,190
Total net assets	$	1,251,409,976
NET ASSETS CONSIST OF
Paid-in capital	$	954,198,764
Undistributed net investment income		2,695
Accumulated net realized losses on investments		(20,299,475	)
Net unrealized gains on investments		317,507,992
Total net assets	$	1,251,409,976
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	816,532,007
Shares outstanding – Class A1		26,551,046
Net asset value per share – Class A		$30.75
Maximum offering price per share – Class A2		$32.63
Net assets – Class C	$	153,587,976
Shares outstanding – Class C1		8,210,280
Net asset value per share – Class C		$18.71
Net assets – Administrator Class	$	228,130,993
Shares outstanding – Administrator Class1		7,416,641
Net asset value per share – Administrator Class		$30.76
Net assets – Institutional Class	$	53,159,000
Shares outstanding – Institutional Class		1,730,034
Net asset value per share – Institutional Class1		$30.73

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended March 31, 2017 (unaudited) Wells Fargo Index Asset Allocation Fund 29

Investment income
Dividends	$	7,745,936
Interest		3,336,430
Income from affiliated securities		162,601
Securities lending income, net		11,944
Total investment income		11,256,911
Expenses
Management fee		3,674,524
Administration fees
Class A		862,824
Class B		74	1
Class C		152,048
Administrator Class		138,367
Institutional Class		13,463	2
Shareholder servicing fees
Class A		1,027,171
Class B		88	1
Class C		181,009
Administrator Class		265,803
Distribution fees
Class B		265	1
Class C		543,028
Custody and accounting fees		13,363
Professional fees		240
Registration fees		217
Shareholder report expenses		255
Trustees’ fees and expenses		9,860
Other fees and expenses		480
Total expenses		6,883,079
Less: Fee waivers and/or expense reimbursements		(102,746	)
Net expenses		6,780,333
Net investment income		4,476,578
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		573,980
Affiliated securities		11,617
Futures transactions		9,165,472
Net realized gains on investments		9,751,069
Net change in unrealized gains (losses) on:
Unaffiliated securities		47,259,215
Affiliated securities		1,922,307
Futures transactions		(333,685	)
Net change in unrealized gains (losses) on investments		48,847,837
Net realized and unrealized gains (losses) on investments		58,598,906
Net increase in net assets resulting from operations	$	63,075,484

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

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

30 Wells Fargo Index Asset Allocation Fund Statement of changes in net assets

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment income				$	4,476,578					$	7,739,055
Net realized gains on investments					9,751,069						9,092,899
Net change in unrealized gains (losses) on investments					48,847,837						77,072,669
Net increase in net assets resulting from operations					63,075,484						93,904,623
Distributions to shareholders from
Net investment income
Class A					(4,493,929	)					(5,683,773	)
Class B					0	1					(266	)
Class C					(70,275	)					(93,279	)
Administrator Class					(1,446,168	)					(1,345,968	)
Institutional Class					(260,388	)2					N/A
Net realized gains
Class A					(7,379,070	)					(40,013,880	)
Class B					0	1					(8,382	)
Class C					(1,277,133	)					(3,781,718	)
Administrator Class					(1,816,976	)					(5,677,540	)
Institutional Class					(193,189	)2					N/A
Total distributions to shareholders					(16,937,128	)					(56,604,806	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,351,359			40,535,962			4,200,951			120,374,602
Class B		0	1		0	1		15,531			269,837
Class C		1,517,108			27,683,713			4,802,237			84,206,499
Administrator Class		2,310,650			69,456,636			5,938,408			170,655,831
Institutional Class		1,816,093	2		55,232,909	2		N/A			N/A
					192,909,220						375,506,769
Reinvestment of distributions
Class A		386,202			11,584,253			1,593,398			44,672,620
Class B		0	1		0	1		338			5,803
Class C		62,399			1,135,663			192,234			3,269,192
Administrator Class		95,630			2,871,205			187,396			5,266,424
Institutional Class		15,072	2		453,577	2		N/A			N/A
					16,044,698						53,214,039
Payment for shares redeemed
Class A		(3,168,195	)		(95,619,885	)		(3,450,379	)		(99,644,371	)
Class B		(11,694	)1		(213,027	)1		(12,802	)		(225,638	)
Class C		(979,420	)		(17,919,826	)		(934,641	)		(16,428,230	)
Administrator Class		(1,973,414	)		(59,273,987	)		(2,111,814	)		(61,128,010	)
Institutional Class		(101,131	)2		(3,077,345	)2		N/A			N/A
					(176,104,070	)					(177,426,249	)
Net increase in net assets resulting from capital share transactions					32,849,848						251,294,559
Total increase in net assets					78,988,204						288,594,376
Net assets
Beginning of period					1,172,421,772						883,827,396
End of period				$	1,251,409,976					$	1,172,421,772
Undistributed net investment income				$	2,695					$	1,796,877

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

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

Financial highlights Wells Fargo Index Asset Allocation Fund 31

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$29.61			$28.72			$28.20			$24.48			$22.17			$18.12
Net investment income		0.12			0.22			0.27			0.38			0.34			0.29
Net realized and unrealized gains (losses) on investments		1.45			2.45			0.76			3.72			2.31			4.05
Total from investment operations		1.57			2.67			1.03			4.10			2.65			4.34
Distributions to shareholders from
Net investment income		(0.16	)		(0.21	)		(0.22	)		(0.38	)		(0.34	)		(0.29	)
Net realized gains		(0.27	)		(1.57	)		(0.29	)		0.00			0.00			0.00
Total distributions to shareholders		(0.43	)		(1.78	)		(0.51	)		(0.38	)		(0.34	)		(0.29	)
Net asset value, end of period		$30.75			$29.61			$28.72			$28.20			$24.48			$22.17
Total return1		5.36	%		9.68	%		3.62	%		16.83	%		12.02	%		24.07	%
Ratios to average net assets (annualized)
Gross expenses		1.08	%		1.10	%		1.22	%		1.20	%		1.18	%		1.17	%
Net expenses		1.08	%		1.10	%		1.15	%		1.15	%		1.15	%		1.15	%
Net investment income		0.80	%		0.79	%		0.90	%		1.42	%		1.43	%		1.39	%
Supplemental data
Portfolio turnover rate		6	%		8	%		43	%		9	%		11	%		16	%
Net assets, end of period (000s omitted)		$816,532			$828,421			$736,276			$708,873			$657,702			$644,365

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.

32 Wells Fargo Index Asset Allocation Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$17.99			$17.47			$17.20			$14.94			$13.53			$11.06
Net investment income		0.01			0.01	1		0.05			0.11			0.10			0.08
Net realized and unrealized gains (losses) on investments		0.88			1.48			0.45			2.27			1.41			2.47
Total from investment operations		0.89			1.49			0.50			2.38			1.51			2.55
Distributions to shareholders from
Net investment income		(0.01	)		(0.02	)		(0.05	)		(0.12	)		(0.10	)		(0.08	)
Net realized gains		(0.16	)		(0.95	)		(0.18	)		0.00			0.00			0.00
Total distributions to shareholders		(0.17	)		(0.97	)		(0.23	)		(0.12	)		(0.10	)		(0.08	)
Net asset value, end of period		$18.71			$17.99			$17.47			$17.20			$14.94			$13.53
Total return2		4.99	%		8.86	%		2.86	%		15.96	%		11.20	%		23.11	%
Ratios to average net assets (annualized)
Gross expenses		1.83	%		1.85	%		1.98	%		1.95	%		1.93	%		1.92	%
Net expenses		1.83	%		1.85	%		1.90	%		1.90	%		1.90	%		1.90	%
Net investment income		0.05	%		0.03	%		0.10	%		0.67	%		0.68	%		0.64	%
Supplemental data
Portfolio turnover rate		6	%		8	%		43	%		9	%		11	%		16	%
Net assets, end of period (000s omitted)		$153,588			$136,881			$62,019			$24,093			$19,164			$16,699

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 Index Asset Allocation Fund 33

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$29.63			$28.75			$28.21			$24.49			$22.18			$18.14
Net investment income		0.15			0.28			0.35			0.45			0.40			0.34
Net realized and unrealized gains (losses) on investments		1.46			2.45			0.76			3.72			2.30			4.04
Total from investment operations		1.61			2.73			1.11			4.17			2.70			4.38
Distributions to shareholders from
Net investment income		(0.21	)		(0.28	)		(0.28	)		(0.45	)		(0.39	)		(0.34	)
Net realized gains		(0.27	)		(1.57	)		(0.29	)		0.00			0.00			0.00
Total distributions to shareholders		(0.48	)		(1.85	)		(0.57	)		(0.45	)		(0.39	)		(0.34	)
Net asset value, end of period		$30.76			$29.63			$28.75			$28.21			$24.49			$22.18
Total return1		5.47	%		9.91	%		3.89	%		17.12	%		12.31	%		24.30	%
Ratios to average net assets (annualized)
Gross expenses		1.00	%		1.02	%		1.09	%		1.04	%		1.02	%		1.01	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		0.98	%		0.98	%		1.12	%		1.68	%		1.69	%		1.63	%
Supplemental data
Portfolio turnover rate		6	%		8	%		43	%		9	%		11	%		16	%
Net assets, end of period (000s omitted)		$228,131			$206,908			$85,380			$59,783			$34,536			$29,920

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

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

34 Wells Fargo Index Asset Allocation Fund Financial highlights

(For a share outstanding throughout the period)

INSTITUTIONAL CLASS	Period ended March 31, 20171 (unaudited)
Net asset value, beginning of period		$29.27
Net investment income		0.17	2
Net realized and unrealized gains (losses) on investments		1.82
Total from investment operations		1.99
Distributions to shareholders from
Net investment income		(0.26	)
Net realized gains		(0.27	)
Total distributions to shareholders		(0.53	)
Net asset value, end of period		$30.73
Total return3		6.85	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%
Net expenses		0.75	%
Net investment income		1.00	%
Supplemental data
Portfolio turnover rate		6	%
Net assets, end of period (000s omitted)		$53,159

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

Notes to financial statements (unaudited) Wells Fargo Index Asset Allocation Fund 35

1. ORGANIZATION

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

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. 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.

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.

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 companies 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

36 Wells Fargo Index Asset Allocation Fund Notes to financial statements (unaudited)

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

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the “Securities Lending Fund”). The Securities Lending Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending Fund seeks to provide a positive return compared to the daily Fed Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Securities Lending Fund investments are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund is included in securities lending income on the Statement of Operations.

Futures contracts

The Fund is subject to interest rate risk and equity price 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 security values. 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.

Dividend income is recognized on the ex-dividend date.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has 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 and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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.

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.

Notes to financial statements (unaudited) Wells Fargo Index Asset Allocation Fund 37

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 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	67,017	$	0	$	67,017
Common stocks
Consumer discretionary		91,919,492		0		0		91,919,492
Consumer staples		69,355,541		0		0		69,355,541
Energy		49,108,100		0		0		49,108,100
Financials		107,079,621		0		0		107,079,621
Health care		103,641,726		0		0		103,641,726
Industrials		75,182,445		0		0		75,182,445
Information technology		164,660,684		0		0		164,660,684
Materials		21,168,852						21,168,852
Real estate		21,836,550		0		0		21,836,550
Telecommunication services		17,782,242		0		0		17,782,242
Utilities		23,797,813		0		0		23,797,813
Rights
Consumer staples		0		0		0		0
Non-agency mortgage-backed securities		0		13,868		0		13,868
U.S. Treasury securities		477,025,109		0		0		477,025,109
Short-term investments
Investment companies		24,425,716		0		0		24,425,716
U.S. Treasury securities		1,541,440		0		0		1,541,440
Investments measured at net asset value*								3,314,813
		1,248,525,331		80,885		0		1,251,921,029
Futures contracts		25,594		0		0		25,594
Total assets	$	1,248,550,925	$	80,885	$	0	$	1,251,946,623
Liabilities
Futures contracts	$	176,753	$	0	$	0	$	176,753
Total liabilities	$	176,753	$	0	$	0	$	176,753

* 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 $3,314,813 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

38 Wells Fargo Index Asset Allocation 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 March 31, 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 0.65% and declining to 0.48% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.61% 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 0.10% 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		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.15% for Class A shares, 1.90% for Class C shares, 0.90% for Administrator Class shares, and 0.75% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $1,111 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,063 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 March 31, 2017, Funds Distributor received $53,497 from the sale of Class A shares and $595 in contingent deferred sales charges from redemptions of Class C shares.

Notes to financial statements (unaudited) Wells Fargo Index Asset Allocation Fund 39

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 March 31, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$51,480,066	$41,126,209	$18,304,974	$50,554,403

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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. INVESTMENTS IN AFFILIATES

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

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Value, end of period		Income from affiliated securities		Realized gains
Wells Fargo & Company		168,853		1,238		4,479		165,612	$	9,217,964	$	128,212	$	11,442

7. DERIVATIVE TRANSACTIONS

During the six months ended March 31, 2017, the Fund entered into futures contracts to gain market exposure to certain asset classes in accordance with an active asset allocation strategy.

At March 31, 2017, the Fund had long/short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at March 31, 2017		Unrealized gains (losses)
6-16-2017	GoldmanSachs	47 Long	S&P 500 E-Mini Index	$	5,544,120	$	31,719
6-21-2017	GoldmanSachs	750 Short	10-Year U.S. Treasury Notes		93,421,875		(91,338	)
6-30-2017	Goldman Sachs	156 Long	5-Year U.S. Treasury Notes		18,365,344		94,186

The Fund had an average notional amount of $16,301,553 and $64,977,212 in long and short futures contracts, respectively, during the six months ended March 31, 2017.

On March 31, 2017, the cumulative unrealized gains on futures contracts in the amount of $34,567 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.

40 Wells Fargo Index Asset Allocation Fund Notes to financial statements (unaudited)

A summary of the location of derivative instruments on the financial statements by primary risk exposure is outlined following tables.

The fair value of derivative instruments as of March 31, 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
Equity contracts	Receivable for daily variation margin on open futures contracts	$	0	*	Payable for daily variation margin on open futures contracts	$	12,690	*
Interest rate contracts	Receivable for daily variation margin on open futures contracts		25,594	*	Payable for daily variation margin on open futures contracts		164,063	*
		$	25,594			$	176,753

* Only the current day’s variation margin as of March 31, 2017 is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the six months ended March 31, 2017 was as follows for the Fund:

	Amount of realized gains on derivatives		Change in unrealized gains (losses) on derivatives
Equity contracts	$	1,715,945	$	12,599
Interest rate contracts		7,449,527		(346,284	)
	$	9,165,472	$	(333,685	)

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	Goldman Sachs	$25,594	$	(25,594	)	$	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	Goldman Sachs	$176,753	$	(25,594	)	$	(151,159	)	$	0

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

Notes to financial statements (unaudited) Wells Fargo Index Asset Allocation Fund 41

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 March 31, 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 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.

42 Wells Fargo Index Asset Allocation 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 Index Asset Allocation Fund 43

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

44 Wells Fargo Index Asset Allocation 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.
Jeremy DePalma1 (Born 1974)	Treasurer, since 2012	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Michael Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

¹ Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 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 Index Asset Allocation Fund 45

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.

302883 05-17 SA227/SAR227 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo International 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	26
List of abbreviations	29

The views expressed and any forward-looking statements are as of March 31, 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 International Bond Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 International Bond Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 International Bond Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 International Bond Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

First International Advisors, LLC

Portfolio managers

Michael Lee

Tony Norris

Alex Perrin

Christopher Wightman

Peter Wilson

Average annual total returns (%) as of March 31, 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 (ESIYX)	9-30-2003		(7.94	)		(2.07	)		2.61		(3.61	)		(1.16	)		3.08		1.08		1.03
Class C (ESIVX)	9-30-2003		(5.29	)		(1.90	)		2.31		(4.29	)		(1.90	)		2.31		1.83		1.78
Class R6 (ESIRX)	11-30-2012		–			–			–		(3.19	)		(0.77	)		3.43		0.70		0.65
Administrator Class (ESIDX)	7-30-2010		–			–			–		(3.51	)		(1.00	)		3.25		1.02		0.85
Institutional Class (ESICX)	12-15-1993		–			–			–		(3.30	)		(0.84	)		3.39		0.75		0.70
Bloomberg Barclays Global Aggregate ex-USD Index (unhedged)4	–		–			–			–		(3.93	)		(1.13	)		2.58		–		–

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 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. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. 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 high-yield securities risk and geographic 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 International Bond Fund 5

Ten largest holdings (%) as of March 31, 20175
Poland, 1.50%, 4-25-2020	5.09
New Zealand, 4.50%, 4-15-2027	4.59
Mexico, 7.75%, 11-13-2042	4.48
Malaysia, 3.96%, 9-15-2025	3.86
Thailand, 3.85%, 12-12-2025	3.20
Singapore, 3.00%, 9-1-2024	2.91
U.S. Treasury Note, 2.13%, 12-31-2022	2.76
U.S. Treasury Note, 1.50%, 8-15-2026	2.53
Australian Government Bond Series 138, 3.25%, 4-21-2029	2.42
Brazil, 10.00%, 1-1-2025	2.26

Portfolio allocation as of March 31, 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 for Class R6 shares 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 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 International Bond Fund.

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

³  The manager has contractually committed through January 31, 2018, 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  The Bloomberg Barclays Global Aggregate ex-USD Index (unhedged) (formerly known as Barclays Global Aggregate ex-USD Index (unhedged)) is an unmanaged index that provides a broad-based measure of the global investment grade fixed income markets excluding the U.S. dollar denominated debt market. 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 International 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹			Annualized net expense ratio
Class A
Actual	$	1,000.00	$	914.65	$	4.92			1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.80	$	5.19			1.03	%
Class C
Actual	$	1,000.00	$	911.63	$	8.48			1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.06	$	8.95			1.78	%
Class R6							��
Actual	$	1,000.00	$	916.45	$	3.11			0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.69	$	3.28			0.65	%
Administrator Class
Actual	$	1,000.00	$	914.88	$	4.06			0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.69	$	4.28			0.85	%
Institutional Class
Actual	$	1,000.00	$	915.36	$	3.34			0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.44	$	3.53			0.70	%

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—March 31, 2017 (unaudited) Wells Fargo International Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 4.58%
United States: 4.58%
AbbVie Incorporated (Health Care, Biotechnology)		3.20	%		5-14-2026	$	900,000	$	865,058
Amazon.com Incorporated (Consumer Discretionary, Internet & Direct Marketing Retail)		3.80			12-5-2024		2,300,000		2,435,114
Anheuser-Busch InBev Finance Incorporated (Consumer Staples, Beverages)		3.65			2-1-2026		2,200,000		2,224,420
Apple Incorporated (Information Technology, Technology Hardware, Storage & Peripherals)		2.45			8-4-2026		2,000,000		1,891,684
Federal Mogul Corporation (Consumer Discretionary, Auto Components) 144A		4.88			4-15-2022		550,000		582,779
Ford Motor Credit Company LLC (Finance, Consumer Finance)		2.46			3-27-2020		2,600,000		2,590,905
Gilead Sciences Incorporated (Health Care, Biotechnology)		2.95			3-1-2027		2,000,000		1,896,356
Goldman Sachs Group Incorporated (Financials, Capital Markets)		3.75			2-25-2026		3,000,000		3,018,948
Johnson & Johnson (Health Care, Pharmaceuticals)		2.95			3-3-2027		2,000,000		1,999,614
JPMorgan Chase & Company (Financials, Banks)		3.30			4-1-2026		2,575,000		2,524,278
Kraft Heinz Foods Company (Consumer Staples, Food Products)		3.00			6-1-2026		2,000,000		1,879,286
Microsoft Corporation (Information Technology, Software)		2.40			8-8-2026		2,000,000		1,891,022
Oracle Corporation (Information Technology, Software)		2.65			7-15-2026		1,900,000		1,808,998
Total Corporate Bonds and Notes (Cost $26,327,116)									25,608,462
Foreign Corporate Bonds and Notes @: 15.00%
Australia: 0.20%
General Electric Capital Corporation (Financials, Diversified Financial Services, AUD)		6.00			3-15-2019		1,367,000		1,111,020
Brazil: 0.28%
BRF SA (Consumer Staples, Food Products, BRL) 144A		7.75			5-22-2018		5,137,000		1,562,957
Denmark: 6.96%
Nordea Kredit Realkredit (Financials, Thrifts & Mortgage Finance, DKK)		2.00			10-1-2047		71,538,372		10,027,641
Nordea Kredit Realkredit (Financials, Thrifts & Mortgage Finance, DKK)		2.50			10-1-2047		17,710,566		2,578,389
Nykredit Realkredit AS (Financials, Thrifts & Mortgage Finance, DKK)		2.00			10-1-2047		75,650,000		10,601,262
Nykredit Realkredit AS (Financials, Thrifts & Mortgage Finance, DKK)		2.50			10-1-2047		17,742,974		2,582,471
Realkredit Danmark AS (Financials, Thrifts & Mortgage Finance, DKK)		2.00			10-1-2047		75,283,644		10,549,923
Realkredit Danmark AS (Financials, Thrifts & Mortgage Finance, DKK)		2.50			10-1-2047		17,762,469		2,593,930
									38,933,616
France: 0.17%
Casino Guichard Perrachon SA (Consumer Staples, Food & Staples Retailing, EUR)		4.50			3-7-2024		800,000		924,826
Germany: 1.39%
HP Pelzer Holding GmbH (Consumer Discretionary, Auto Components, EUR) 144A%%		4.13			4-1-2024		550,000		590,524
KfW (Financials, Banks, AUD)		5.00			3-19-2024		6,900,000		5,921,064
Landwirtschaftliche Rentenbank (Financials, Banks, ZAR)		8.25			5-23-2022		5,400,000		398,472
Senvion Holding (Energy, Energy Equipment & Services, EUR)		6.63			11-15-2020		800,000		877,814
									7,787,874
Ireland: 0.51%
GE Capital UK Funding Company (Financials, Capital Markets, GBP)		5.13			5-24-2023		1,000,000		1,526,689
Virgin Media Receivable (Consumer Discretionary, Media, GBP)		5.50			9-15-2024		1,000,000		1,300,825
									2,827,514

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

8 Wells Fargo International Bond Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Luxembourg: 0.08%
European Investment Bank (Financials, Banks, ZAR)		9.00	%		3-31-2021		5,790,000	$	443,434
Mexico: 0.35%
America Movil SAB de CV (Telecommunication Services, Wireless Telecommunication Services, MXN)		7.13			12-9-2024		7,250,000		366,073
Nemak SAB de CV (Consumer Discretionary, Auto Components, EUR) 144A		3.25			3-15-2024		225,000		240,990
Petroleos Mexicanos (Energy, Oil, Gas & Consumable Fuels, MXN) 144A		7.19			9-12-2024		6,532,000		308,593
Sigma Alimentos SA de CV (Consumer Discretionary, Food Products, EUR) 144A		2.63			2-7-2024		950,000		1,039,653
									1,955,309
Netherlands: 0.18%
Cemex Finance LLC (Financials, Consumer Finance, EUR)		4.63			6-15-2024		900,000		1,015,308
Norway: 1.00%
Kommunalbanken AS (Financials, Banks, AUD)		5.25			7-15-2024		6,500,000		5,620,701
Philippines: 1.03%
Asian Development Bank (Financials, Banks, AUD)		3.75			3-12-2025		7,231,000		5,751,759
Spain: 0.16%
Ence Energia y Celulosa (Materials, Paper & Forest Products, EUR)		5.38			11-1-2022		800,000		914,152
United Kingdom: 2.08%
AA Bond Company Limited (Financials, Diversified Financial Services, GBP)		5.50			7-31-2043		600,000		770,609
Adient Global Holdings Company (Consumer Discretionary, Auto Components, EUR)		3.50			8-15-2024		725,000		778,418
Alliance Automotive Finance plc (Financials, EUR) 144A		6.25			12-1-2021		1,000,000		1,131,608
FirstGroup plc (Industrials, Road & Rail, GBP)		5.25			11-29-2022		1,300,000		1,900,814
Heathrow Funding Limited (Industrials, Transportation Infrastructure, EUR)		1.88			5-23-2024		561,000		638,025
Heathrow Funding Limited (Industrials, Transportation Infrastructure, GBP)		7.13			2-14-2024		1,900,000		3,094,074
Jaguar Land Rover plc (Consumer Discretionary, Automobiles, GBP)		5.00			2-15-2022		600,000		821,276
Tesco plc (Consumer Staples, Food & Staples Retailing, GBP)		6.13			2-24-2022		700,000		1,009,895
Twinkle Pizza plc (Consumer Discretionary, Hotels, Restaurants & Leisure, GBP)		6.63			8-1-2021		700,000		898,943
Wagamama Finance plc (Financials, Diversified Financial Services, GBP)		7.88			2-1-2020		450,000		587,767
									11,631,429
United States: 0.61%
Albemarle Corporation (Materials, Chemicals, EUR)		1.88			12-8-2021		987,000		1,106,478
Verizon Communications Incorporated (Telecommunication Services, Diversified Telecommunication Services, EUR)		3.25			2-17-2026		589,000		723,627
VF Corporation (Consumer Discretionary, Textiles, Apparel & Luxury Goods, EUR)		0.63			9-20-2023		1,525,000		1,599,852
									3,429,957
Total Foreign Corporate Bonds and Notes (Cost $88,949,264)									83,909,856
Foreign Government Bonds @: 64.68%
Australian Government Bond Series 138 (AUD)		3.25			4-21-2029		17,050,000		13,534,139
Australian Government Bond Series 148 (AUD)		2.75			11-21-2027		15,000,000		11,441,408
Brazil (BRL)		10.00			1-1-2019		19,505,000		6,287,465
Brazil (BRL)		10.00			1-1-2025		38,640,000		12,344,458
Canada 144A (CAD)		2.90			6-15-2024		11,000,000		8,837,553
Colombia (COP)		7.00			5-4-2022		11,100,000,000		3,989,406

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo International Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Foreign Government Bonds @ (continued)
Hungary (HUF)		1.75	%		10-26-2022		1,865,000,000	$	6,292,795
Hungary (HUF)		7.00			6-24-2022		1,665,000,000		7,173,205
Indonesia (IDR)		8.38			3-15-2024		13,750,000,000		1,097,806
Indonesia (IDR)		8.38			9-15-2026		45,000,000,000		3,664,028
Korea (KRW)		3.00			9-10-2024		12,100,000,000		11,488,724
Korea (KRW)		3.13			3-10-2019		6,400,000,000		5,887,577
Malaysia (MYR)		3.66			10-15-2020		7,650,000		1,723,999
Malaysia (MYR)		3.90			11-30-2026		14,250,000		3,153,805
Malaysia (MYR)		3.96			9-15-2025		97,325,000		21,612,945
Malaysia (MYR)		4.50			4-15-2030		8,950,000		2,022,809
Mexico (MXN)		5.75			3-5-2026		76,500,000		3,740,000
Mexico (MXN)		7.75			11-13-2042		453,000,000		25,030,807
Mexico (MXN)		8.00			11-7-2047		32,000,000		1,812,263
Mexico (MXN)		10.00			12-5-2024		10,850,000		681,729
New Zealand (NZD)		4.50			4-15-2027		33,000,000		25,674,637
Norway 144A (NOK) ¤		0.00			9-20-2017		107,825,000		12,533,353
Norway 144A (NOK)		4.25			5-19-2017		100,277,000		11,730,244
Poland (PLN)		1.50			4-25-2020		115,700,000		28,445,798
Province of British Columbia (AUD)		4.25			11-27-2024		7,590,000		6,137,695
Province of Ontario (AUD)		6.25			9-29-2020		6,000,000		5,105,281
Queensland Treasury 144A (AUD)		3.25			7-21-2026		7,350,000		5,673,753
Queensland Treasury (AUD)		5.75			7-22-2024		9,000,000		8,186,879
Republic of Peru (PEN)		5.70			8-12-2024		5,000,000		1,571,456
Republic of Philippines (PHP)		3.90			11-26-2022		40,000,000		772,496
Republic of South Africa (ZAR)		7.75			2-28-2023		160,531,000		11,660,536
Republic of South Africa (ZAR)		10.50			12-21-2026		82,350,000		6,786,874
Romania (RON)		5.75			4-29-2020		22,600,000		5,865,983
Singapore (SGD)		2.88			9-1-2030		12,900,000		9,737,732
Singapore (SGD)		3.00			9-1-2024		21,440,000		16,277,142
State of New South Wales Australia (AUD)		5.00			8-20-2024		11,250,000		9,920,457
Thailand (THB)		3.85			12-12-2025		560,025,000		17,885,288
Turkey (TRY)		8.70			7-11-2018		3,500,000		935,802
Turkey (TRY)		9.40			7-8-2020		3,500,000		921,116
Turkey (TRY)		10.70			2-17-2021		4,000,000		1,089,573
United Kingdom Gilt (GBP)		1.50			7-22-2026		5,175,000		6,736,043
United Kingdom Gilt (GBP)		2.00			9-7-2025		5,600,000		7,630,066
United Kingdom Gilt (GBP)		4.25			6-7-2032		5,000,000		8,615,871
Total Foreign Government Bonds (Cost $365,241,305)									361,710,996
U.S. Treasury Securities: 7.90%
U.S. Treasury Bond		3.00			11-15-2045	$	7,850,000		7,799,101
U.S. Treasury Note		1.38			10-31-2020		6,900,000		6,823,990
U.S. Treasury Note		1.50			8-15-2026		15,300,000		14,154,290
U.S. Treasury Note		2.13			12-31-2022		15,400,000		15,434,296
Total U.S. Treasury Securities (Cost $45,236,240)									44,211,677
Yankee Corporate Bonds and Notes: 3.94%
Cayman Islands: 0.22%
UPCB Finance IV Limited (Financials, Diversified Financial Services) 144A		5.38			1-15-2025		1,200,000		1,207,500

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

10 Wells Fargo International Bond Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
France: 0.34%
Danone SA (Consumer Staples, Food Products) 144A		2.95	%		11-2-2026	$	2,000,000	$	1,911,704
Ireland: 0.18%
Ardagh Packaging Finance plc (Financials, Diversified Financial Services) 144A		4.63			5-15-2023		1,000,000		1,007,500
Netherlands: 1.38%
Fiat Chrysler Automobiles NV (Consumer Discretionary, Automobiles)		5.25			4-15-2023		1,650,000		1,697,025
Mubadala Development Company (Energy, Oil, Gas & Consumable Fuels)		5.50			4-20-2021		1,700,000		1,876,460
Myriad International Holdings BV (Consumer Discretionary, Media)		6.00			7-18-2020		1,950,000		2,099,078
Siemens Financieringsmat Company (Financials, Diversified Financial Services) 144A		2.35			10-15-2026		2,200,000		2,043,058
									7,715,621
Spain: 0.13%
Telefonica Emisiones SAU (Telecommunication Services, Diversified Telecommunication Services)		4.10			3-8-2027		750,000		754,862
Switzerland: 0.44%
Credit Suisse Group Funding Limited (Financials, Diversified Financial Services)		3.80			9-15-2022		2,400,000		2,434,176
United Kingdom: 1.25%
BP Capital Markets plc (Financials, Capital Markets)		3.22			4-14-2024		4,725,000		4,726,523
International Game Technology plc (Consumer Discretionary, Hotels, Restaurants & Leisure) 144A		6.25			2-15-2022		1,000,000		1,067,500
Jaguar Land Rover Automobiles plc (Consumer Discretionary, Automobiles) 144A		3.50			3-15-2020		1,200,000		1,209,000
									7,003,023
Total Yankee Corporate Bonds and Notes (Cost $21,786,304)									22,034,386
	Yield					Shares
Short-Term Investments: 1.79%
Investment Companies: 1.79%
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.63					9,985,374		9,985,374
Total Short-Term Investments (Cost $9,985,374)									9,985,374

Total investments in securities (Cost $557,525,603) *	97.89	%		547,460,751
Other assets and liabilities, net	2.11			11,788,750
Total net assets	100.00	%	$	559,249,501

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.

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

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

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

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

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

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

* Cost for federal income tax purposes is $560,614,555 and unrealized gains (losses) consists of:

Gross unrealized gains	$	10,771,418
Gross unrealized losses		(23,925,222	)
Net unrealized losses	$	(13,153,804	)

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

Statement of assets and liabilities—March 31, 2017 (unaudited) Wells Fargo International Bond Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $547,540,229)	$	537,475,377
In affiliated securities, at value (cost $9,985,374)		9,985,374
Total investments, at value (cost $557,525,603)		547,460,751
Cash		12,421
Foreign currency, at value (cost $4,377,812)		4,324,690
Receivable for investments sold		245,494
Receivable for Fund shares sold		3,223,908
Receivable for interest		6,077,242
Unrealized gains on forward foreign currency contracts		3,338,982
Prepaid expenses and other assets		129,545
Total assets		564,813,033
Liabilities
Payable for investments purchased		587,616
Payable for Fund shares redeemed		1,686,402
Unrealized losses on forward foreign currency contracts		2,796,167
Management fee payable		294,932
Distribution fees payable		2,768
Administration fees payable		44,517
Accrued expenses and other liabilities		151,130
Total liabilities		5,563,532
Total net assets	$	559,249,501
NET ASSETS CONSIST OF
Paid-in capital	$	617,143,812
Undistributed net investment income		8,527,257
Accumulated net realized losses on investments		(56,856,023	)
Net unrealized losses on investments		(9,565,545	)
Total net assets	$	559,249,501
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	56,009,497
Shares outstanding – Class A1		5,774,668
Net asset value per share – Class A		$9.70
Maximum offering price per share – Class A2		$10.16
Net assets – Class C	$	3,994,332
Shares outstanding – Class C1		423,254
Net asset value per share – Class C		$9.44
Net assets – Class R6	$	7,210,849
Shares outstanding – Class R61		734,670
Net asset value per share – Class R6		$9.82
Net assets – Administrator Class	$	33,892,041
Shares outstanding – Administrator Class1		3,482,731
Net asset value per share – Administrator Class		$9.73
Net assets – Institutional Class	$	458,142,782
Shares outstanding – Institutional Class1		46,781,652
Net asset value per share – Institutional Class		$9.79

¹  The Fund has an unlimited number of authorized shares.

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

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

12 Wells Fargo International Bond Fund Statement of operations—six months ended March 31, 2017 (unaudited)

Investment income
Interest (net of foreign interest withholding taxes of $69,858)	$	11,104,294
Securities lending income, net		2,624
Total investment income		11,106,918
Expenses
Management fee		1,757,974
Administration fees
Class A		39,406
Class B		42	1
Class C		3,633
Class R6		1,486
Administrator Class		20,909
Institutional Class		193,686
Shareholder servicing fees
Class A		61,571
Class B		66	1
Class C		5,677
Administrator Class		52,272
Distribution fees
Class B		198	1
Class C		17,030
Custody and accounting fees		17,800
Professional fees		43,087
Registration fees		191
Shareholder report expenses		229
Trustees’ fees and expenses		346
Other fees and expenses		9,567
Total expenses		2,225,170
Less: Fee waivers and/or expense reimbursements		(28,652	)
Net expenses		2,196,518
Net investment income		8,910,400
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(13,412,951	)
Forward foreign currency contract transactions		(42,294,323	)
Net realized losses on investments		(55,707,274	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(13,772,273	)
Forward foreign currency contract transactions		2,297,060
Net change in unrealized gains (losses) on investments		(11,475,213	)
Net realized and unrealized gains (losses) on investments		(67,182,487	)
Net decrease in net assets resulting from operations	$	(58,272,087	)

¹  For the period from October 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 International Bond Fund 13

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 20161						Year ended October 31, 2015
Operations
Net investment income				$	8,910,400					$	22,566,834					$	39,938,003
Net realized losses on investments					(55,707,274	)					(40,208,825	)					(103,876,702	)
Net change in unrealized gains (losses) on investments					(11,475,213	)					103,284,914						(56,804,032	)
Net increase (decrease) in net assets resulting from operations					(58,272,087	)					85,642,923						(120,742,731	)
Distributions to shareholders from
Net investment income
Class A					0						0						(423,572	)
Class B					0	2					0						0
Class R6					0						0						(48,140	)
Administrator Class					0						0						(1,661,619	)
Institutional Class					0						0						(4,268,266	)
Net realized gains
Class A					(739,477	)					(400,990	)					(287,937	)
Class B					0	2					(2,261	)					(2,272	)
Class C					(73,043	)					(38,344	)					(31,156	)
Class R6					(164,164	)					(83,111	)					(18,411	)
Administrator Class					(631,824	)					(1,513,668	)					(1,004,296	)
Institutional Class					(7,408,479	)					(3,929,124	)					(2,298,056	)
Total distributions to shareholders					(9,016,987	)					(5,967,498	)					(10,043,725	)
Capital share transactions		Shares						Shares						Shares
Proceeds from shares sold
Class A		2,451,816			23,719,820			1,868,356			19,443,142			4,376,785			44,490,295
Class B		0	2		0	2		0			0			2			19
Class C		4,763			44,748			23,455			236,461			29,172			297,439
Class R6		140,594			1,394,985			895,392			8,893,640			1,089,162			11,067,245
Administrator Class		790,529			7,661,331			4,435,890			44,153,170			7,459,622			76,084,803
Institutional Class		8,231,078			80,446,134			16,131,984			163,749,468			21,605,888			222,681,252
					113,267,018						236,475,881						354,621,053
Reinvestment of distributions
Class A		77,736			729,940			41,796			395,809			66,631			705,372
Class B		0	2		0	2		202			1,896			185			1,968
Class C		7,033			64,420			3,463			32,237			2,403			25,233
Class R6		17,299			164,164			8,721			83,111			6,273			66,551
Administrator Class		66,753			628,812			158,255			1,500,258			250,106			2,645,484
Institutional Class		690,923			6,543,042			345,507			3,289,229			440,841			4,675,573
					8,130,378						5,302,540						8,120,181
Payment for shares redeemed
Class A		(1,805,443	)		(17,423,560	)		(5,046,620	)		(49,633,874	)		(5,719,183	)		(57,542,516	)
Class B		(16,076	)2		(153,471	)2		(25,770	)		(256,696	)		(41,312	)		(422,819	)
Class C		(113,072	)		(1,059,230	)		(222,003	)		(2,168,648	)		(395,376	)		(3,980,181	)
Class R6		(572,536	)		(5,550,328	)		(1,096,795	)		(11,289,059	)		(279,791	)		(2,789,621	)
Administrator Class		(2,081,756	)		(20,188,102	)		(27,263,086	)		(278,792,881	)		(13,481,584	)		(136,684,425	)
Institutional Class		(13,097,709	)		(127,107,786	)		(36,026,612	)		(359,679,067	)		(28,068,413	)		(285,845,548	)
					(171,482,477	)					(701,820,225	)					(487,265,110	)
Net decrease in net assets resulting from capital share transactions					(50,085,081	)					(460,041,804	)					(124,523,876	)
Total decrease in net assets					(117,374,155	)					(380,366,379	)					(255,310,332	)
Net assets
Beginning of period					676,623,656						1,056,990,035						1,312,300,367
End of period				$	559,249,501					$	676,623,656					$	1,056,990,035
Undistributed (overdistributed) (accumulated) net investment income (loss)				$	8,527,257					$	(383,143	)				$	(48,221,909	)

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  For the period from October 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 International Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
CLASS A							2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.77			$9.74			$10.84			$11.32			$11.83			$11.85			$12.23
Net investment income		0.13	2		0.24	2		0.31	2		0.37	2		0.36	2		0.33	2		0.39	2
Net realized and unrealized gains (losses) on investments		(1.05	)		0.85			(1.33	)		(0.34	)		(0.73	)		0.08			(0.18	)
Total from investment operations		(0.92	)		1.09			(1.02	)		0.03			(0.37	)		0.41			0.21
Distributions to shareholders from
Net investment income		0.00			0.00			(0.05	)		(0.12	)		(0.02	)		(0.29	)		(0.51	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)		(0.08	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.08	)		(0.51	)		(0.14	)		(0.43	)		(0.59	)
Net asset value, end of period		$9.70			$10.77			$9.74			$10.84			$11.32			$11.83			$11.85
Total return3		(8.54	)%		11.24	%		(9.50	)%		0.26	%		(3.18	)%		3.66	%		1.93	%
Ratios to average net assets (annualized)
Gross expenses		1.03	%		1.08	%		1.06	%		1.05	%		1.05	%		1.04	%		1.02	%
Net expenses		1.03	%		1.03	%		1.03	%		1.03	%		1.03	%		1.03	%		1.02	%
Net investment income		2.74	%		2.64	%		3.07	%		3.29	%		2.93	%		2.88	%		3.26	%
Supplemental data
Portfolio turnover rate		37	%		96	%		136	%		103	%		129	%		79	%		88	%
Net assets, end of period (000s omitted)		$56,009			$54,399			$79,727			$102,624			$113,846			$139,600			$286,577

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo International Bond Fund 15

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
CLASS C							2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.52			$9.58			$10.70			$11.19			$11.76			$11.81			$12.20
Net investment income		0.09	2		0.17	2		0.23	2		0.28	2		0.26	2		0.24	2		0.31	2
Net realized and unrealized gains (losses) on investments		(1.02	)		0.83			(1.32	)		(0.34	)		(0.71	)		0.08			(0.19	)
Total from investment operations		(0.93	)		1.00			(1.09	)		(0.06	)		(0.45	)		0.32			0.12
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			(0.04	)		(0.00	)3		(0.23	)		(0.43	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)		(0.08	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.03	)		(0.43	)		(0.12	)		(0.37	)		(0.51	)
Net asset value, end of period		$9.44			$10.52			$9.58			$10.70			$11.19			$11.76			$11.81
Total return4		(8.84	)%		10.49	%		(10.21	)%		(0.52	)%		(3.84	)%		2.86	%		1.11	%
Ratios to average net assets (annualized)
Gross expenses		1.78	%		1.83	%		1.81	%		1.80	%		1.80	%		1.79	%		1.77	%
Net expenses		1.78	%		1.78	%		1.78	%		1.78	%		1.78	%		1.78	%		1.77	%
Net investment income		1.98	%		1.86	%		2.33	%		2.54	%		2.15	%		2.12	%		2.50	%
Supplemental data
Portfolio turnover rate		37	%		96	%		136	%		103	%		129	%		79	%		88	%
Net assets, end of period (000s omitted)		$3,994			$5,520			$6,895			$11,597			$16,097			$23,448			$27,861

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  Calculated based upon average shares outstanding

³  Amount is less than $0.005 per share.

⁴  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

16 Wells Fargo International Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
CLASS R6							2015			2014			20132
Net asset value, beginning of period		$10.88			$9.80			$10.88			$11.36			$11.80
Net investment income		0.15	3		0.28	3		0.35	3		0.42	3		0.39	3
Net realized and unrealized gains (losses) on investments		(1.06	)		0.86			(1.34	)		(0.35	)		(0.69	)
Total from investment operations		(0.91	)		1.14			(0.99	)		0.07			(0.30	)
Distributions to shareholders from
Net investment income		0.00			0.00			(0.06	)		(0.16	)		(0.02	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.09	)		(0.55	)		(0.14	)
Net asset value, end of period		$9.82			$10.88			$9.80			$10.88			$11.36
Total return4		(8.35	)%		11.69	%		(9.18	)%		0.60	%		(2.52	)%
Ratios to average net assets (annualized)
Gross expenses		0.65	%		0.70	%		0.68	%		0.67	%		0.68	%
Net expenses		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Net investment income		3.12	%		3.00	%		3.46	%		3.64	%		3.70	%
Supplemental data
Portfolio turnover rate		37	%		96	%		136	%		103	%		129	%
Net assets, end of period (000s omitted)		$7,211			$12,501			$13,152			$5,729			$2,433

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  For the period from November 30, 2012 (commencement of class operations) to October 31, 2013

³  Calculated based upon average shares outstanding

⁴  Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo International Bond Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
ADMINISTRATOR CLASS							2015			2014			20132			2012			2011
Net asset value, beginning of period		$10.80			$9.75			$10.84			$11.32			$11.81			$11.83			$12.23
Net investment income		0.14	2		0.26	2		0.33	2		0.39	2		0.36	2		0.35	2		0.38	2
Net realized and unrealized gains (losses) on investments		(1.06	)		0.85			(1.34	)		(0.34	)		(0.71	)		0.08			(0.16	)
Total from investment operations		(0.92	)		1.11			(1.01	)		0.05			(0.35	)		0.43			0.22
Distributions to shareholders from
Net investment income		0.00			0.00			(0.05	)		(0.14	)		(0.02	)		(0.31	)		(0.54	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)		(0.08	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.08	)		(0.53	)		(0.14	)		(0.45	)		(0.62	)
Net asset value, end of period		$9.73			$10.80			$9.75			$10.84			$11.32			$11.81			$11.83
Total return3		(8.51	)%		11.44	%		(9.36	)%		0.43	%		(2.98	)%		3.89	%		2.03	%
Ratios to average net assets (annualized)
Gross expenses		0.97	%		1.02	%		0.99	%		0.99	%		0.99	%		0.97	%		0.95	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		2.90	%		2.85	%		3.26	%		3.47	%		3.15	%		3.04	%		3.21	%
Supplemental data
Portfolio turnover rate		37	%		96	%		136	%		103	%		129	%		79	%		88	%
Net assets, end of period (000s omitted)		$33,892			$50,825			$266,849			$359,383			$334,778			$294,330			$170,836

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  Calculated based upon average shares outstanding

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

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

18 Wells Fargo International Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
INSTITUTIONAL CLASS							2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.86			$9.79			$10.87			$11.35			$11.82			$11.84			$12.23
Net investment income		0.15	2		0.27	2		0.35	2		0.41	2		0.37			0.36			0.44
Net realized and unrealized gains (losses) on investments		(1.07	)		0.86			(1.34	)		(0.35	)		(0.70	)		0.09			(0.20	)
Total from investment operations		(0.92	)		1.13			(0.99	)		0.06			(0.33	)		0.45			0.24
Distributions to shareholders from
Net investment income		0.00			0.00			(0.06	)		(0.15	)		(0.02	)		(0.33	)		(0.55	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)		(0.08	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.09	)		(0.54	)		(0.14	)		(0.47	)		(0.63	)
Net asset value, end of period		$9.79			$10.86			$9.79			$10.87			$11.35			$11.82			$11.84
Total return3		(8.46	)%		11.60	%		(9.20	)%		0.55	%		(2.78	)%		3.99	%		2.19	%
Ratios to average net assets (annualized)
Gross expenses		0.70	%		0.75	%		0.73	%		0.72	%		0.72	%		0.71	%		0.69	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.71	%		0.69	%
Net investment income		3.07	%		2.95	%		3.41	%		3.62	%		3.26	%		3.19	%		3.60	%
Supplemental data
Portfolio turnover rate		37	%		96	%		136	%		103	%		129	%		79	%		88	%
Net assets, end of period (000s omitted)		$458,143			$553,208			$689,964			$832,072			$1,115,163			$1,270,164			$1,228,793

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  Calculated based upon average shares outstanding

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

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

Notes to financial statements (unaudited) Wells Fargo International 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo International Bond Fund (the “Fund”) which is a diversified series of the Trust.

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. 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.

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 companies 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.

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

20 Wells Fargo International Bond Fund Notes to financial statements (unaudited)

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 of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

Forward foreign currency contracts

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

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 fair 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

Notes to financial statements (unaudited) Wells Fargo International Bond Fund 21

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 and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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.

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 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.

22 Wells Fargo International 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 March 31, 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	$	25,608,462	$	0	$	25,608,462
Foreign corporate bonds and notes		0		83,909,856		0		83,909,856
Foreign government bonds		0		361,710,996		0		361,710,996
U.S. Treasury securities		44,211,677		0		0		44,211,677
Yankee corporate bonds and notes		0		22,034,386		0		22,034,386
Short-term investments
Investment companies		9,985,374		0		0		9,985,374
		54,197,051		493,263,700		0		547,460,751
Forward foreign currency contracts		0		3,338,982		0		3,338,982
Total assets	$	54,197,051	$	496,602,682	$	0	$	550,799,733
Liabilities
Forward foreign currency contracts		0		2,796,167		0		2,796,167
Total liabilities	$	0	$	2,796,167	$	0	$	2,796,167

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 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 0.60% and declining to 0.48% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.60% 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. First International Advisors, LLC, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

Notes to financial statements (unaudited) Wells Fargo International Bond Fund 23

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 January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.03% for Class A shares, 1.78% for Class C shares, 0.65% for Class R6 shares, 0.85% for Administrator Class shares, and 0.70% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $46,421 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 $56,652 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 March 31, 2017, Funds Distributor received $445 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 March 31, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$ 6,461,356	$ 208,823,954	$ 20,453,314	$ 276,313,872

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these

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

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 March 31, 2017, the Fund entered into forward foreign currency contracts for economic hedging purposes.

At March 31, 2017, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty	Contracts to receive			U.S. value at March 31, 2017		In exchange for U.S. $		Unrealized gains (losses)
4-17-2017	State Street Bank		6,650,000,000	JPY	$	59,758,927	$	58,543,010	$	1,215,917
4-18-2017	State Street Bank		23,200,000	EUR		24,765,082		24,765,768		(686	)
4-26-2017	State Street Bank		19,600,000	CAD		14,743,527		14,967,431		(223,904	)
5-9-2017	State Street Bank		66,000,000	MYR		14,893,566		14,886,658		6,908
5-15-2017	State Street Bank		6,850,000,000	JPY		61,619,837		60,487,254		1,132,583
5-22-2017	State Street Bank		456,575,000	HUF		1,580,779		1,594,019		(13,240	)
5-24-2017	State Street Bank		42,700,000	EUR		45,656,249		46,333,557		(677,308	)
6-13-2017	State Street Bank		9,500,000	GBP		11,922,123		11,569,832		352,291
6-16-2017	State Street Bank		64,500,000	EUR		69,044,187		68,926,635		117,552

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver			U.S. value at March 31, 2017		In exchange for U.S. $		Unrealized gains (losses)
4-17-2017	State Street Bank		572,000,000	JPY	$	5,140,166	$	4,993,357	$	(146,809	)
5-9-2017	State Street Bank		66,000,000	MYR		14,893,566		14,822,134		(71,432	)
5-11-2017	State Street Bank		575,000,000	THB		16,727,965		16,394,377		(333,588	)
5-22-2017	State Street Bank		3,960,000,000	HUF		13,710,533		13,688,024		(22,509	)
5-22-2017	State Street Bank		100,500,000	PLN		25,330,250		24,671,991		(658,259	)
6-2-2017	State Street Bank		19,000,000	BRL		5,987,797		5,972,213		(15,584	)
6-6-2017	State Street Bank		72,250,000	ZAR		5,327,175		5,439,242		112,067
6-13-2017	State Street Bank		1,000,000	GBP		1,254,960		1,225,616		(29,344	)
6-13-2017	State Street Bank		92,500,000	DKK		13,310,570		13,200,896		(109,674	)
6-13-2017	State Street Bank		12,500,000	GBP		15,687,004		15,542,875		(144,129	)
6-14-2017	State Street Bank		36,685,000	NZD		25,669,761		25,320,060		(349,701	)
6-20-2017	State Street Bank		85,600,000	AUD		65,306,779		65,708,443		401,664

The Fund had average contract amounts of $375,745,633 and $289,018,135 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended March 31, 2017.

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

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

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

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

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral received		Net amount of assets
Forward foreign currency contracts	State Street Bank	$3,338,982*	$	2,796,167	$	0	$	542,815

* 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 pledged		Net amount of liabilities
Forward foreign currency contracts	State Street Bank	$2,796,167**	$	(2,796,167	)	$	0	$	0

** Amount represents net unrealized losses.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $250,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund.

For the six months ended March 31, 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 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.

26 Wells Fargo International 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 International Bond Fund 27

BOARD OF TRUSTEES AND OFFICERS

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

28 Wells Fargo International 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 International Bond Fund 29

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

302884 05-17 SA235/SAR235 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Strategic Income 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	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	25
Other information	35
List of abbreviations	38

The views expressed and any forward-looking statements are as of March 31, 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 Strategic Income Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

Dear Shareholder:

As the new president of Wells Fargo Funds now that Karla Rabusch is retiring from that position after nearly 14 years, I am pleased to offer you this semi-annual report for the Wells Fargo Strategic Income Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Strategic Income Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Strategic Income 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

Subadvisers

First International Advisors, LLC

Wells Capital Management Incorporated

Portfolio managers

Ashok Bhatia, CFA^®

David Germany, Ph.D.

Niklas Nordenfelt, CFA^®

Tony Norris

Alex Perrin

Thomas M. Price, CFA^®

Scott M. Smith, CFA^®

Noah Wise, CFA^®

Average annual total returns (%) as of March 31, 2017

		Including sales charge				Excluding sales charge				Expense ratios1 (%)
	Inception date	1 year		Since inception		1 year		Since inception		Gross		Net2
Class A (WSIAX)	1-31-2013		2.84		0.10		7.09		1.09		1.80		0.91
Class C (WSICX)	1-31-2013		5.32		0.33		6.32		0.33		2.55		1.66
Administrator Class (WSIDX)	1-31-2013		–		–		6.98		1.19		1.74		0.76
Institutional Class (WSINX)	1-31-2013		–		–		7.44		1.39		1.47		0.61
Bloomberg Barclays U.S. Universal Bond Index3	–		–		–		1.92		2.41		–		–
BofA Merrill Lynch 3 Month U.S. Dollar LIBOR Constant Maturity Index4	–		–		–		0.74		0.39		–		–

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

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

For Class A shares, the maximum front-end sales charge is 4.00%. For Class 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. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to mortgage- and asset-backed securities risk, regulatory risk, and geographic 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 Strategic Income Fund 5

Ten largest holdings (%) as of March 31, 20175
Avis Budget Rental Car Funding LLC Series 2017-1A Class C , 4.15% 9-20-2023	1.59
Hertz Fleet Lease Funding LP Series 2014-1 Class C, 2.01%, 4-10-2028	1.46
SoFi Consumer Loan Program Trust Series 2016-3A , 3.05%, 12-26-2025	1.26
Textainer Marine Containers Limited Series 2014-1A Class A , 3.27%, 10-20-2039	1.26
ACAS CLO Limited Trust Series 2015-1A Class B, 3.12%, 4-18-2027	1.22
Longtrain Leasing III LLC Series 2015-1A Class A2, 4.06%, 1-15-2045	1.16
Citi Held For Asset Issuance Trust Series 2015-PM3 Class B, 4.31%, 5-16-2022	1.1
Chicago Skyscraper Trust Series 2017-SKY Class C, 2.16%, 4-15-2030	1.06
321 Henderson Receivables LLC Series 2015-2A Class A, 3.87%, 3-15-2058	1.06
JPMBB Commercial Mortgage Securities Trust Series 2014-C19 Class D, 4.67%, 4-15-2047	1.06

Portfolio allocation as of March 31, 2017⁶

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

²  The manager has contractually committed through January 31, 2018, 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 0.90% for Class A, 1.65% for Class C, 0.75% for Administrator Class, and 0.60% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

³  The Bloomberg Barclays U.S. Universal Bond Index (formerly known as Barclays U.S. Universal Bond Index) is an unmanaged market-value-weighted performance benchmark for the U.S. dollar–denominated bond market, which includes investment-grade, high-yield, and emerging markets debt securities with maturities of one year or more. You cannot invest directly in an index.

⁴  The BofA Merrill Lynch 3 Month U.S. Dollar LIBOR Constant Maturity Index is based on the assumed purchase of a synthetic instrument having 3 months to maturity and with a coupon equal to the closing quote for 3-Month LIBOR. That issue is sold the following day (priced at a yield equal to the current day closing 3-Month LIBOR rate) and is rolled into a new 3-Month instrument. The index, therefore, will always have a constant maturity equal to exactly 3 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 Strategic 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,025.56	$	4.55		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.44	$	4.53		0.90	%
Class C
Actual	$	1,000.00	$	1,021.66	$	8.32		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.70	$	8.30		1.65	%
Administrator Class
Actual	$	1,000.00	$	1,023.38	$	3.78		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.19	$	3.78		0.75	%
Institutional Class
Actual	$	1,000.00	$	1,027.54	$	3.03		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.94	$	3.02		0.60	%

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Strategic Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 7.48%
AmeriCredit Automobile Receivables Trust Series 2015-4 Class D		3.72	%		12-8-2021	$	300,000	$	307,534
Ascentium Equipment Receivables LLC Series 2016-1A Class B 144A		2.85			7-10-2020		400,000		404,443
Avis Budget Rental Car Funding LLC Series 2012-3A Class B 144A		3.04			3-20-2019		250,000		251,894
Avis Budget Rental Car Funding LLC Series 2017-1A Class C 144A		4.15			9-20-2023		650,000		653,062
Hertz Fleet Lease Funding LP Series 2014-1 Class C 144A±		2.01			4-10-2028		600,000		598,958
Social Professional Loan Program LLC Series 2016-A Class A2 144A		2.76			12-26-2036		339,425		342,025
SoFi Consumer Loan Program Trust Series 2016-3A 144A		3.05			12-26-2025		518,899		519,147
Total Asset-Backed Securities (Cost $3,067,303)									3,077,063
						Shares
Common Stocks: 0.26%
Utilities: 0.26%
Electric Utilities: 0.26%
Vistra Energy Corporation							6,516		106,211
Total Common Stocks (Cost $384,648)									106,211
						Principal
Corporate Bonds and Notes: 36.00%
Consumer Discretionary: 9.78%
Auto Components: 0.12%
Allison Transmission Incorporated 144A		5.00			10-1-2024	$	50,000		50,500
Automobiles: 0.81%
Ford Motor Company		7.45			7-16-2031		265,000		334,200
Distributors: 0.42%
LKQ Corporation		4.75			5-15-2023		175,000		174,125
Diversified Consumer Services: 0.51%
Service Corporation International		5.38			5-15-2024		200,000		208,070
Hotels, Restaurants & Leisure: 0.57%
Brinker International Incorporated 144A		5.00			10-1-2024		25,000		24,688
Greektown Holdings LLC 144A		8.88			3-15-2019		200,000		209,350
									234,038
Household Durables: 0.51%
D.R. Horton Incorporated		4.38			9-15-2022		200,000		210,486
Media: 5.13%
Altice US Finance I Corporation 144A		5.50			5-15-2026		275,000		282,563
CCO Holdings LLC 144A		5.13			5-1-2023		35,000		36,050
CCO Holdings LLC		5.25			9-30-2022		50,000		51,875
CCO Holdings LLC 144A		5.38			5-1-2025		225,000		230,906
Charter Communications Operating LLC		4.91			7-23-2025		400,000		422,371
Discovery Communications LLC		3.80			3-13-2024		265,000		261,911
Gray Television Incorporated 144A		5.13			10-15-2024		50,000		49,375
Gray Television Incorporated 144A		5.88			7-15-2026		50,000		50,875

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

8 Wells Fargo Strategic Income Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
Interpublic Group Company		4.20	%		4-15-2024	$	250,000	$	257,906
National CineMedia LLC		5.75			8-15-2026		50,000		50,600
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		50,000		52,000
Nielsen Finance LLC 144A		5.00			4-15-2022		100,000		102,250
Time Warner Incorporated		3.80			2-15-2027		265,000		262,081
									2,110,763
Multiline Retail: 1.06%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		250,000		247,520
Nordstrom Incorporated		5.00			1-15-2044		200,000		188,879
									436,399
Specialty Retail: 0.53%
Asbury Automotive Group Incorporated		6.00			12-15-2024		75,000		77,438
Group 1 Automotive Incorporated		5.00			6-1-2022		25,000		25,188
Penske Auto Group Incorporated		5.75			10-1-2022		50,000		51,750
Sonic Automotive Incorporated		5.00			5-15-2023		65,000		63,172
									217,548
Textiles, Apparel & Luxury Goods: 0.12%
Wolverine World Wide Company 144A		5.00			9-1-2026		50,000		47,000
Consumer Staples: 0.65%
Beverages: 0.65%
Anheuser-Busch InBev Finance Company		3.65			2-1-2026		265,000		267,942
Energy: 3.87%
Energy Equipment & Services: 1.26%
Bristow Group Incorporated		6.25			10-15-2022		100,000		80,500
Era Group Incorporated		7.75			12-15-2022		40,000		38,100
Hilcorp Energy Company 144A		5.75			10-1-2025		75,000		72,375
Hornbeck Offshore Services Incorporated		1.50			9-1-2019		25,000		16,250
NGPL PipeCo LLC 144A		7.77			12-15-2037		175,000		197,750
PHI Incorporated		5.25			3-15-2019		120,000		113,400
									518,375
Oil, Gas & Consumable Fuels: 2.61%
Crestwood Midstream Partners LP		6.25			4-1-2023		50,000		51,875
Enable Midstream Partner LP		3.90			5-15-2024		100,000		97,584
EnLink Midstream LLC		4.40			4-1-2024		50,000		50,593
Exterran Partners LP		6.00			4-1-2021		50,000		49,625
Gulfport Energy Corporation		6.63			5-1-2023		75,000		75,844
Murphy Oil Corporation		4.70			12-1-2022		25,000		24,250
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		200,000		208,500
Rose Rock Midstream LP		5.63			11-15-2023		100,000		98,000
Sabine Pass Liquefaction LLC		5.63			2-1-2021		100,000		107,737
Sabine Pass Liquefaction LLC 144A		5.88			6-30-2026		75,000		82,686
Southwestern Energy Company		6.70			1-23-2025		75,000		74,250

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Strategic Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Tallgrass Energy Partners LP 144A		5.50	%		9-15-2024	$	125,000	$	125,625
Tesoro Logistics LP		5.25			1-15-2025		25,000		26,094
									1,072,663
Financials: 7.46%
Banks: 2.01%
Bank of America Corporation ±		6.30			12-29-2049		265,000		288,188
CIT Group Incorporated		5.00			8-1-2023		100,000		104,250
JPMorgan Chase & Company ±		6.00			12-31-2049		180,000		187,704
PNC Financial Services ±		5.00			12-29-2049		250,000		248,750
									828,892
Capital Markets: 1.31%
Goldman Sachs Group Incorporated		4.25			10-21-2025		265,000		270,091
Morgan Stanley		5.00			11-24-2025		250,000		268,420
									538,511
Consumer Finance: 0.90%
Arch Capital Finance LLC		4.01			12-15-2026		125,000		128,160
General Motors Financial Company Incorporated		3.20			7-6-2021		200,000		200,739
Springleaf Finance Corporation		8.25			10-1-2023		40,000		42,150
									371,049
Diversified Financial Services: 0.92%
Brookfield Finance LLC		4.00			4-1-2024		200,000		201,141
LPL Holdings Incorporated 144A		5.75			9-15-2025		175,000		177,494
									378,635
Insurance: 2.32%
Fairfax US Incorporated 144A		4.88			8-13-2024		265,000		269,851
Guardian Life Insurance Company 144A		4.85			1-24-2077		200,000		195,405
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		30,000		30,000
Hub International Limited 144A		7.88			10-1-2021		100,000		104,250
Lincoln National Corporation		7.00			6-15-2040		105,000		135,611
MetLife Incorporated		6.40			12-15-2066		200,000		219,500
									954,617
Health Care: 2.34%
Health Care Providers & Services: 2.28%
Community Health Systems Incorporated		6.25			3-31-2023		200,000		204,000
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		100,000		99,688
DaVita HealthCare Partners Incorporated		5.13			7-15-2024		200,000		202,000
Express Scripts Holding Company		3.40			3-1-2027		250,000		235,435
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		75,000		80,634
Vizient Incorporated 144A		10.38			3-1-2024		100,000		114,125
									935,882

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

10 Wells Fargo Strategic Income Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pharmaceuticals: 0.06%
Valeant Pharmaceuticals International Incorporated 144A		7.00	%		3-15-2024	$	25,000	$	25,656
Industrials: 0.85%
Airlines: 0.25%
American Airlines Incorporated		4.38			4-1-2024		102,670		103,184
Commercial Services & Supplies: 0.60%
Advanced Disposal Services Incorporated 144A		5.63			11-15-2024		100,000		101,000
Covanta Holding Corporation		5.88			3-1-2024		145,000		147,175
									248,175
Information Technology: 3.94%
Electronic Equipment, Instruments & Components: 0.67%
Arrow Electronics Incorporated		3.50			4-1-2022		165,000		166,292
Zebra Technologies Corporation «		7.25			10-15-2022		100,000		108,125
									274,417
Internet Software & Services: 0.20%
Zayo Group LLC		6.38			5-15-2025		75,000		80,953
IT Services: 0.61%
Cardtronics Incorporated		5.13			8-1-2022		150,000		151,875
Cardtronics Incorporated 144A%%		5.50			5-1-2025		25,000		25,313
Gartner Incorporated 144A		5.13			4-1-2025		75,000		76,406
									253,594
Semiconductors & Semiconductor Equipment: 0.93%
KLA-Tencor Corporation		4.13			11-1-2021		265,000		277,417
Micron Technology Incorporated 144A		5.63			1-15-2026		100,000		105,250
									382,667
Technology Hardware, Storage & Peripherals: 1.53%
Diamond 1 Finance Corporation 144A		7.13			6-15-2024		275,000		303,998
Diamond 1 Finance Corporation 144A		8.35			7-15-2046		75,000		97,310
NCR Corporation		5.88			12-15-2021		210,000		218,925
NCR Corporation		6.38			12-15-2023		10,000		10,525
									630,758
Materials: 0.52%
Containers & Packaging: 0.52%
Owens-Illinois Incorporated 144A		6.38			8-15-2025		200,000		213,750
Real Estate: 2.69%
Equity REITs: 1.81%
American Tower Corporation		4.00			6-1-2025		250,000		252,925
DuPont Fabros Technology Incorporated LP		5.88			9-15-2021		85,000		88,400
ESH Hospitality Incorporated 144A		5.25			5-1-2025		125,000		126,015

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Strategic Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Equity REITs (continued)
Omega Healthcare Investors Incorporated		4.50	%		1-15-2025	$	175,000	$	174,632
The Geo Group Incorporated		5.88			10-15-2024		100,000		102,250
									744,222
Real Estate Management & Development: 0.88%
CBRE Services Incorporated		5.00			3-15-2023		250,000		260,027
Onex Corporation 144A		7.75			1-15-2021		100,000		101,750
									361,777
Telecommunication Services: 2.61%
Diversified Telecommunication Services: 1.17%
AT&T Incorporated		5.25			3-1-2037		135,000		137,494
GCI Incorporated		6.75			6-1-2021		90,000		92,250
Level 3 Financing Incorporated		5.38			5-1-2025		150,000		152,625
SBA Communications Corporation		4.88			7-15-2022		100,000		101,500
									483,869
Wireless Telecommunication Services: 1.44%
CC Holdings GS V LLC		3.85			4-15-2023		265,000		271,378
Sprint Communications Incorporated 144A		7.00			3-1-2020		150,000		163,500
T-Mobile USA Incorporated		6.38			3-1-2025		20,000		21,550
T-Mobile USA Incorporated		6.50			1-15-2024		100,000		108,000
T-Mobile USA Incorporated		6.84			4-28-2023		25,000		26,750
									591,178
Utilities: 1.29%
Independent Power & Renewable Electricity Producers: 0.62%
NSG Holdings LLC 144A		7.75			12-15-2025		94,419		101,501
Pattern Energy Group Incorporated 144A		5.88			2-1-2024		150,000		151,875
									253,376
Multi-Utilities: 0.67%
Puget Energy Incorporated		5.63			7-15-2022		250,000		276,584
Total Corporate Bonds and Notes (Cost $14,575,516)									14,813,855
Foreign Corporate Bonds and Notes @: 2.77%
Consumer Discretionary: 0.73%
Hotels, Restaurants & Leisure: 0.73%
Schumann SpA 144A (EUR)		7.00			7-31-2023		125,000		135,194
William Hill plc (GBP)		4.88			9-7-2023		125,000		163,034
									298,228
Financials: 1.36%
Banks: 0.63%
ABN AMRO Bank NV (EUR)		6.38			4-27-2021		200,000		259,864

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

12 Wells Fargo Strategic Income Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 0.73%
Arrow Global Finance plc 144A (GBP)		5.13	%		9-15-2024		125,000	$	162,125
Ineos Finance plc 144A (EUR)		4.00			5-1-2023		125,000		137,162
									299,287
Materials: 0.34%
Paper & Forest Products: 0.34%
Lecta SA 144A (EUR)		6.50			8-1-2023		125,000		139,242
Telecommunication Services: 0.34%
Diversified Telecommunication Services: 0.34%
SFR Group SA 144A (EUR)		5.63			5-15-2024		125,000		141,524
Total Foreign Corporate Bonds and Notes (Cost $1,164,588)									1,138,145
Foreign Government Bonds @: 2.90%
Brazil (BRL)		10.00			1-1-2027		615,000		196,087
Colombia (COP)		7.00			9-11-2019		720,000,000		256,223
Indonesia (IDR)		7.88			4-15-2019		4,100,000,000		314,450
Mexico (MXN)		4.75			6-14-2018		4,565,000		238,722
Republic of South Africa (ZAR)		6.75			3-31-2021		2,600,000		186,334
Total Foreign Government Bonds (Cost $1,243,056)									1,191,816
Loans: 12.62%
Consumer Discretionary: 3.33%
Auto Components: 0.21%
Allison Transmission Incorporated ±		2.99			9-23-2022	$	84,610		85,256
Distributors: 0.74%
Spin Holdco Incorporated ±		4.29			11-14-2019		306,364		306,199
Hotels, Restaurants & Leisure: 1.08%
Belmond Interfin Limited ±		4.15			3-21-2021		101,778		101,842
CCM Merger Incorporated ±		4.23			8-8-2021		241,871		242,979
La Quinta Intermediate Holdings LLC ±		3.77			4-14-2021		99,242		99,759
									444,580
Household Products: 0.18%
Anchor Glass Container Corporation ±		4.25			12-7-2023		74,813		75,234
Media: 0.79%
Altice US Finance I Corporation ±		3.98			1-15-2025		149,249		148,970
Learfield Communications Incorporated ±		4.25			12-1-2023		149,625		151,121
Salem Communications Corporation ±		4.50			3-16-2020		25,800		25,187
									325,278
Specialty Retail: 0.33%
Focus Brands Incorporated ±		5.00			10-3-2023		133,402		133,402

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Strategic Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Energy: 0.61%
Energy Equipment & Services: 0.30%
ExGen Renewables I LLC ±		5.27	%		2-14-2021	$	15,589	$	15,667
Hummel Station LLC ±		7.00			10-27-2022		112,613		108,812
									124,479
Oil, Gas & Consumable Fuels: 0.31%
Veresen Midstream LP ±		4.50			3-31-2022		124,051		125,136
Financials: 0.85%
Diversified Financial Services: 0.36%
LPL Holdings Incorporated <		0.00			3-10-2024		150,000		150,095
Insurance: 0.49%
Alliant Holdings I LLC ±		4.39			8-12-2022		199,493		200,349
Health Care: 2.02%
Health Care Equipment & Supplies: 0.61%
Kinetic Concepts Incorporated ±		4.40			2-2-2024		250,000		250,000
Health Care Providers & Services: 0.52%
Community Health Systems Incorporated ±		4.05			1-27-2021		66,626		65,677
Surgery Center Holdings Incorporated ±		4.75			11-3-2020		48,875		49,395
TeamHealth Incorporated ±		3.75			2-6-2024		100,000		99,208
									214,280
Health Care Technology: 0.61%
Change Healthcare Holdings Incorporated ±		3.75			3-1-2024		250,000		250,313
Pharmaceuticals: 0.28%
Valeant Pharmaceuticals International Incorporated ±		5.57			4-1-2022		117,151		117,410
Industrials: 1.08%
Aerospace & Defense: 0.24%
TransDigm Incorporated ±		4.14			6-4-2021		99,235		98,898
Commercial Services & Supplies: 0.57%
KAR Auction Services Incorporated ±		4.19			3-9-2021		133,053		134,161
Sedgwick Claims Management Services Incorporated ±		3.75			3-1-2021		99,233		99,078
									233,239
Transportation Infrastructure: 0.27%
OSG Bulk Ships Incorporated ±		5.29			8-5-2019		11,865		11,746
OSG International Incorporated ±		5.79			8-5-2019		98,513		98,206
									109,952
Information Technology: 2.12%
Electronic Equipment, Instruments & Components: 0.97%
Dell International LLC <		0.00			9-7-2023		400,000		401,332

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

14 Wells Fargo Strategic Income Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Internet Software & Services: 0.35%
Applied Systems Incorporated ±		4.40	%		1-25-2021	$	142,848	$	143,526
IT Services: 0.80%
First Data Corporation ±		3.98			7-10-2022		326,534		328,914
Materials: 0.58%
Containers & Packaging: 0.58%
Berry Plastics Corporation ±		3.50			10-1-2022		89,974		90,498
Reynolds Group Holdings Incorporated ±		3.98			2-5-2023		149,251		149,764
									240,262
Real Estate: 0.68%
Equity REITs: 0.49%
The Geo Group Incorporated <		0.00			3-17-2024		200,000		200,876
Real Estate Management & Development: 0.19%
Capital Automotive LP ±		4.00			3-17-2024		77,825		78,603
Telecommunication Services: 1.35%
Diversified Telecommunication Services: 0.82%
Intelsat Jackson Holdings SA ±		3.89			6-30-2019		240,332		235,059
Level 3 Financing Incorporated ±		3.23			2-22-2024		101,410		101,537
									336,596
Wireless Telecommunication Services: 0.53%
Syniverse Holdings Incorporated ±		4.00			4-23-2019		236,570		216,831
Total Loans (Cost $5,215,625)									5,191,040
Municipal Obligations: 1.84%
Idaho: 0.11%
Idaho Housing & Finance Association Legacy Public Charter School Series B (Education Revenue)		7.00			5-1-2017		45,000		44,983
Illinois: 0.78%
Chicago IL Refunding Bonds Taxable Project Series E (GO Revenue)		6.05			1-1-2029		200,000		198,084
Chicago IL Transit Authority Taxable Pension Funding Series A (Tax Revenue)		6.90			12-1-2040		100,000		124,629
									322,713
Michigan: 0.12%
Wayne County MI Series 2016 (GO Revenue)		4.25			12-1-2018		47,000		47,645
New York: 0.24%
Oyster Bay NY (GO Revenue)		3.25			2-1-2018		100,000		100,117
Texas: 0.59%
North Texas Tollway Authority Build America Bonds Sub Lien Series B-2 (Transportation Revenue)		8.91			2-1-2030		210,000		242,920
Total Municipal Obligations (Cost $771,351)									758,378

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Strategic Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities: 11.48%
321 Henderson Receivables LLC Series 2015-2A Class A 144A		3.87	%		3-15-2058	$	438,687	$	435,309
ACAS CLO Limited Trust Series 2015-1A Class B 144A±		3.12			4-18-2027		500,000		499,996
BB-UBS Trust Series 2012-TFT Class C 144A±		3.47			6-5-2030		150,000		144,484
BCC Funding Corporation Series 2016-1 Class B 144A		2.73			4-20-2022		400,000		394,943
Chicago Skyscraper Trust Series 2017-SKY Class C 144A±		2.16			4-15-2030		436,000		436,807
Citi Held For Asset Issuance Trust Series 2015-PM3 Class B 144A		4.31			5-16-2022		450,000		454,670
Commercial Mortgage Trust Series 2015-LC23 Class C ±		4.65			10-10-2048		300,000		294,033
FREMF Mortgage Trust Series 2017-K724 Class B 144A±		3.50			11-25-2023		400,000		378,309
GS Mortgage Securities Trust Series 2014-GC24 Class D 144A±		4.53			9-10-2047		325,000		253,912
JPMBB Commercial Mortgage Securities Trust Series 2014-C19 Class D 144A±		4.67			4-15-2047		493,000		435,052
Longtrain Leasing III LLC Series 2015-1A Class A2 144A		4.06			1-15-2045		500,000		479,363
Textainer Marine Containers Limited Series 2014-1A Class A 144A		3.27			10-20-2039		530,833		518,847
Total Non-Agency Mortgage-Backed Securities (Cost $4,784,357)									4,725,725
				Expiration date		Shares
Rights: 0.02%
Utilities: 0.02%
Electric Utilities: 0.02%
Texas Competitive Electric Holdings Company LLC Rights †(i)					10-10-2024		6,516		7,331
Total Rights (Cost $7,168)									7,331
				Maturity date		Principal
U.S. Treasury Securities: 0.30%
U.S. Treasury Note		1.63			2-15-2026	$	130,000		122,210
Total U.S. Treasury Securities (Cost $126,823)									122,210
Yankee Corporate Bonds and Notes: 8.27%
Consumer Staples: 0.37%
Food & Staples Retailing: 0.37%
Delhaize Group SA		5.70			10-1-2040		135,000		153,860
Energy: 0.79%
Oil, Gas & Consumable Fuels: 0.79%
Comision Federal de Electric 144A		4.75			2-23-2027		250,000		250,625
Teekay Corporation		8.50			1-15-2020		75,000		74,250
									324,875
Financials: 5.07%
Banks: 3.74%
BNP Paribas 144A		3.80			1-10-2024		200,000		198,982
BPCE SA 144A		5.15			7-21-2024		305,000		313,226
Credit Agricole SA 144A±		8.13			12-29-2049		265,000		282,225
Intesa Sanpaolo SpA 144A		5.71			1-15-2026		135,000		130,816
Nielsen Holding and Finance BV 144A		5.50			10-1-2021		100,000		103,875
Perrigo Finance Unlimited Company		4.38			3-15-2026		250,000		254,257

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

16 Wells Fargo Strategic Income Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
UBS Group Funding (Jersey) Limited 144A		4.13	%		9-24-2025	$	250,000	$	254,206
									1,537,587
Capital Markets: 0.63%
Credit Suisse Group AG 144A		3.57			1-9-2023		260,000		259,477
Diversified Financial Services: 0.70%
Deutsche Bank AG		6.00			9-1-2017		285,000		289,962
Health Care: 0.71%
Pharmaceuticals: 0.71%
Teva Pharmaceutical Finance BV		2.20			7-21-2021		265,000		254,960
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		50,000		38,500
									293,460
Industrials: 1.00%
Commercial Services & Supplies: 0.50%
GFL Environmental Incorporated 144A		7.88			4-1-2020		50,000		51,875
Ritchie Brothers Auctioneers Incorporated 144A		5.38			1-15-2025		150,000		153,375
									205,250
Professional Services: 0.50%
IHS Markit Limited 144A		4.75			2-15-2025		200,000		206,000
Telecommunication Services: 0.33%
Diversified Telecommunication Services: 0.33%
Intelsat Jackson Holdings SA		5.50			8-1-2023		100,000		82,125
Intelsat Luxembourg SA		8.13			6-1-2023		85,000		51,372
									133,497
Total Yankee Corporate Bonds and Notes (Cost $3,424,884)									3,403,968
Yankee Government Bonds: 4.08%
Arab Republic of Egypt 144A		6.13			1-31-2022		200,000		208,000
Bermuda 144A		3.72			1-25-2027		250,000		240,633
Federal Democratic Republic of Ethiopia		6.63			12-11-2024		200,000		191,856
Republic of Honduras		6.25			1-19-2027		200,000		202,424
Republic of Ghana		9.25			9-15-2022		200,000		208,000
Republic of Sri Lanka		5.75			1-18-2022		200,000		205,208
Socialist Republic of Vietnam		4.80			11-19-2024		200,000		203,839
The Dominican Republic		6.88			1-29-2026		200,000		219,000
Total Yankee Government Bonds (Cost $1,645,331)									1,678,960
	Yield					Shares
Short-Term Investments: 9.48%
Investment Companies: 8.97%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98					108,289		108,300
Wells Fargo Government Money Market Fund Select Class (l)(u)##		0.63					3,584,787		3,584,787
									3,693,087

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Strategic Income Fund 17

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.51%
U.S. Treasury Bill #(z)		0.72	%		6-15-2017	$	210,000	$	209,692
Total Short-Term Investments (Cost $3,902,767)									3,902,779

Total investments in securities (Cost $40,313,417) *	97.50	%		40,117,481
Other assets and liabilities, net	2.50			1,030,412
Total net assets	100.00	%	$	41,147,893

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.

¥ A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.

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

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

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

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

† Non-income-earning security

(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 securities and unfunded loans.

# 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 $40,316,223 and unrealized gains (losses) consists of:

Gross unrealized gains	$	453,990
Gross unrealized losses		(652,732	)
Net unrealized losses	$	(198,742	)

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

18 Wells Fargo Strategic Income Fund Statement of assets and liabilities—March 31, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $106,102 of securities loaned), at value (cost $36,620,330)	$	36,424,394
In affiliated securities, at value (cost $3,693,087)		3,693,087
Total investments, at value (cost $40,313,417)		40,117,481
Cash		54,502
Foreign currency, at value (cost $6,670)		6,560
Receivable for investments sold		85,757
Receivable for Fund shares sold		1,447,254
Receivable for interest		346,215
Receivable for daily variation margin on open futures contracts		313
Receivable for securities lending income		42
Unrealized gains on forward foreign currency contracts		17,460
Receivable from manager		7,493
Prepaid expenses and other assets		48,532
Total assets		42,131,609
Liabilities
Payable for investments purchased		778,938
Unrealized losses on forward foreign currency contracts		8,501
Payable upon receipt of securities loaned		108,300
Payable for daily variation margin on open futures contracts		8,906
Distribution fee payable		309
Administration fees payable		2,849
Accrued expenses and other liabilities		75,913
Total liabilities		983,716
Total net assets	$	41,147,893
NET ASSETS CONSIST OF
Paid-in capital	$	42,657,168
Undistributed net investment income		281,939
Accumulated net realized losses on investments		(1,610,468	)
Net unrealized losses on investments		(180,746	)
Total net assets	$	41,147,893
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,533,771
Shares outstanding – Class A1		163,548
Net asset value per share – Class A		$9.38
Maximum offering price per share – Class A2		$9.77
Net assets – Class C	$	364,903
Shares outstanding – Class C1		39,117
Net asset value per share – Class C		$9.33
Net assets – Administrator Class	$	477,747
Shares outstanding – Administrator Class1		50,832
Net asset value per share – Administrator Class		$9.40
Net assets – Institutional Class	$	38,771,472
Shares outstanding – Institutional Class1		4,132,349
Net asset value per share – Institutional Class		$9.38

¹  The Fund has an unlimited number of authorized shares.

²  Maximum offering price is computed as 100/96 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

Statement of operations—six months ended March 31, 2017 (unaudited) Wells Fargo Strategic Income Fund 19

Investment income
Interest (net of foreign interest withholding taxes of $3,662)	$	613,220
Dividends		15,117
Income from affiliated securities		5,815
Securities lending income, net		242
Total investment income		634,394
Expenses
Management fee		73,845
Administration fees
Class A		1,101
Class C		587
Administrator Class		243
Institutional Class		10,214
Shareholder servicing fees
Class A		1,720
Class C		918
Administrator Class		609
Distribution fee
Class C		2,753
Custody and accounting fees		43,782
Professional fees		26,368
Registration fees		29,222
Shareholder report expenses		25,229
Trustees’ fees and expenses		7,984
Other fees and expenses		5,485
Total expenses		230,060
Less: Fee waivers and/or expense reimbursements		(139,383	)
Net expenses		90,677
Net investment income		543,717
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(148,559	)
Futures transactions		246,693
Forward foreign currency contract transactions		(48,952	)
Net realized gains on investments		49,182
Net change in unrealized gains (losses) on:
Unaffiliated securities		65,030
Futures transactions		19,119
Forward foreign currency contract transactions		59,059
Net change in unrealized gains (losses) on investments		143,208
Net realized and unrealized gains (losses) on investments		192,390
Net increase in net assets resulting from operations	$	736,107

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

20 Wells Fargo Strategic Income Fund Statement of changes in net assets

	Six months ended March 31, 2017 (unaudited)							Year ended September 30, 20161						Year ended October 31, 2015
Operations
Net investment income					$	543,717					$	890,629					$	1,317,175
Net realized gains (losses) on investments						49,182						(919,157	)					(1,296,981	)
Net change in unrealized gains (losses) on investments						143,208						988,102						(666,689	)
Net increase (decrease) in net assets resulting from operations						736,107						959,574						(646,495	)
Distributions to shareholders from
Net investment income
Class A						(14,956	)					(13,014	)					(21,334	)
Class C						(7,769	)					(6,442	)					(14,917	)
Administrator Class						(5,975	)					(7,355	)					(12,399	)
Institutional Class						(282,116	)					(365,738	)					(935,496	)
Tax basis return of capital
Class A						0						(5,130	)					(2,416	)
Class C						0						(2,540	)					(1,689	)
Administrator Class						0						(2,900	)					(1,404	)
Institutional Class						0						(144,185	)					(105,941	)
Total distributions to shareholders						(310,816	)					(547,304	)					(1,095,596	)
Capital share transactions		Shares							Shares						Shares
Proceeds from shares sold
Class A		266,825				2,480,570			117,382			1,055,716			44,768			426,513
Class C		10,397				95,740			12,099			109,873			5,907			55,667
Administrator Class		48,560		��		455,420			9,037			83,300			0			0
Institutional Class		1,842,213				17,242,802			621,194			5,533,801			190,379			1,736,500
						20,274,532						6,782,690						2,218,680
Reinvestment of distributions
Class A		1,617				14,847			1,995			17,957			2,260			21,553
Class C		848				7,769			979			8,774			1,740			16,606
Administrator Class		648				5,975			1,137			10,255			1,443			13,803
Institutional Class		30,741				282,116			56,806			509,923			109,213			1,041,437
						310,707						546,909						1,093,399
Payment for shares redeemed
Class A		(218,087	)			(2,029,930	)		(107,748	)		(971,689	)		(18,900	)		(178,898	)
Class C		(55,223	)			(514,066	)		(8,141	)		(73,072	)		(15,520	)		(148,738	)
Administrator Class		(62,652	)			(588,268	)		(14	)		(129	)		(4,192	)		(39,990	)
Institutional Class		(249,050	)			(2,330,209	)		(90,476	)		(795,724	)		(2,358,709	)		(22,270,242	)
						(5,462,473	)					(1,840,614	)					(22,637,868	)
Net increase (decrease) in net assets resulting from capital share transactions						15,122,766						5,488,985						(19,325,789	)
Total increase (decrease) in net assets						15,548,057						5,901,255						(21,067,880	)
Net assets
Beginning of period						25,599,836						19,698,581						40,766,461
End of period					$	41,147,893					$	25,599,836					$	19,698,581
Undistributed net investment income					$	281,939					$	49,038					$	44,882

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

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

Financial highlights Wells Fargo Strategic Income Fund 21

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
CLASS A							2015			2014			20132
Net asset value, beginning of period		$9.25			$9.13			$9.72			$9.66			$10.00
Net investment income		0.15			0.31			0.34			0.37			0.27
Net realized and unrealized gains (losses) on investments		0.08			(0.01	)		(0.69	)		(0.05	)		(0.36	)
Total from investment operations		0.23			0.30			(0.35	)		0.32			(0.09	)
Distributions to shareholders from
Net investment income		(0.10	)		(0.13	)		(0.22	)		(0.26	)		(0.25	)
Tax basis return of capital		0.00			(0.05	)		(0.02	)		0.00			0.00
Total distributions to shareholders		(0.10	)		(0.18	)		(0.24	)		(0.26	)		(0.25	)
Net asset value, end of period		$9.38			$9.25			$9.13			$9.72			$9.66
Total return3		2.56	%		3.34	%		(3.64	)%		3.36	%		(0.89	)%
Ratios to average net assets (annualized)
Gross expenses		1.94	%		1.80	%		1.63	%		1.51	%		1.85	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		3.64	%		3.85	%		3.77	%		4.02	%		3.76	%
Supplemental data
Portfolio turnover rate		22	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$1,534			$1,047			$928			$714			$518

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  For the period from January 31, 2013 (commencement of class operations) to October 31, 2013

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.

22 Wells Fargo Strategic Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
CLASS C							2015			2014			20132
Net asset value, beginning of period		$9.22			$9.10			$9.71			$9.65			$10.00
Net investment income		0.13	3		0.25			0.28			0.31			0.21
Net realized and unrealized gains (losses) on investments		0.07			(0.02	)		(0.68	)		(0.06	)		(0.37	)
Total from investment operations		0.20			0.23			(0.40	)		0.25			(0.16	)
Distributions to shareholders from
Net investment income		(0.09	)		(0.08	)		(0.19	)		(0.19	)		(0.19	)
Tax basis return of capital		0.00			(0.03	)		(0.02	)		0.00			0.00
Total distributions to shareholders		(0.09	)		(0.11	)		(0.21	)		(0.19	)		(0.19	)
Net asset value, end of period		$9.33			$9.22			$9.10			$9.71			$9.65
Total return4		2.17	%		2.67	%		(4.35	)%		2.61	%		(1.51	)%
Ratios to average net assets (annualized)
Gross expenses		2.71	%		2.54	%		2.37	%		2.25	%		2.60	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		2.94	%		3.10	%		3.02	%		3.25	%		3.01	%
Supplemental data
Portfolio turnover rate		22	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$365			$766			$711			$835			$518

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  For the period from January 31, 2013 (commencement of class operations) to October 31, 2013

³  Calculated based upon average shares outstanding

⁴  Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial highlights Wells Fargo Strategic Income Fund 23

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
ADMINISTRATOR CLASS							2015			2014			20132
Net asset value, beginning of period		$9.29			$9.16			$9.74			$9.66			$10.00
Net investment income		0.18	3		0.33	3		0.37			0.39			0.28
Net realized and unrealized gains (losses) on investments		0.04			(0.01	)		(0.70	)		(0.05	)		(0.37	)
Total from investment operations		0.22			0.32			(0.33	)		0.34			(0.09	)
Distributions to shareholders from
Net investment income		(0.11	)		(0.14	)		(0.22	)		(0.26	)		(0.25	)
Tax basis return of capital		0.00			(0.05	)		(0.03	)		0.00			0.00
Total distributions to shareholders		(0.11	)		(0.19	)		(0.25	)		(0.26	)		(0.25	)
Net asset value, end of period		$9.40			$9.29			$9.16			$9.74			$9.66
Total return4		2.34	%		3.52	%		(3.51	)%		3.63	%		(0.85	)%
Ratios to average net assets (annualized)
Gross expenses		1.91	%		1.74	%		1.56	%		1.46	%		1.79	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		3.86	%		4.00	%		3.92	%		4.18	%		3.90	%
Supplemental data
Portfolio turnover rate		22	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$478			$597			$496			$554			$496

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  For the period from January 31, 2013 (commencement of class operations) to October 31, 2013

³  Calculated based upon average shares outstanding

⁴  Returns for periods of less than one year are not annualized.

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

24 Wells Fargo Strategic Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30, 20161			Year ended October 31
INSTITUTIONAL CLASS							2015			2014			20132
Net asset value, beginning of period		$9.24			$9.14			$9.71			$9.66			$10.00
Net investment income		0.18	3		0.34			0.40			0.41	3		0.29
Net realized and unrealized gains (losses) on investments		0.07			(0.02	)		(0.71	)		(0.07	)		(0.36	)
Total from investment operations		0.25			0.32			(0.31	)		0.34			(0.07	)
Distributions to shareholders from
Net investment income		(0.11	)		(0.16	)		(0.23	)		(0.29	)		(0.27	)
Tax basis return of capital		0.00			(0.06	)		(0.03	)		0.00			0.00
Total distributions to shareholders		(0.11	)		(0.22	)		(0.26	)		(0.29	)		(0.27	)
Net asset value, end of period		$9.38			$9.24			$9.14			$9.71			$9.66
Total return4		2.75	%		3.55	%		(3.28	)%		3.60	%		(0.66	)%
Ratios to average net assets (annualized)
Gross expenses		1.58	%		1.46	%		1.19	%		1.14	%		1.52	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.90	%		4.16	%		4.04	%		4.25	%		4.05	%
Supplemental data
Portfolio turnover rate		22	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$38,771			$23,190			$17,564			$38,664			$23,338

¹  For the eleven months ended September 30, 2016. The Fund changed its fiscal year end from October 31 to September 30, effective September 30, 2016.

²  For the period from January 31, 2013 (commencement of class operations) to October 31, 2013

³  Calculated based upon average shares outstanding

⁴  Returns for periods of less than one year are not annualized.

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

Notes to financial statements (unaudited) Wells Fargo Strategic Income Fund 25

1. ORGANIZATION

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

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.

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 companies 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.

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

26 Wells Fargo Strategic Income Fund Notes to financial statements (unaudited)

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 of securities 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.

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

Notes to financial statements (unaudited) Wells Fargo Strategic Income Fund 27

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 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.

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.

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.

28 Wells Fargo Strategic Income Fund Notes to financial statements (unaudited)

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.

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

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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 September 30, 2016, the Fund had capital loss carryforwards which consisted of $588,918 in short-term capital losses and $1,081,979 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 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.

Notes to financial statements (unaudited) Wells Fargo Strategic Income Fund 29

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Asset-backed securities	$	0	$	3,077,063	$	0	$	3,077,063
Common stocks
Utilities		106,211		0		0		106,211
Corporate bonds and notes		0		14,813,855		0		14,813,855
Foreign corporate bonds and notes		0		1,138,145		0		1,138,145
Foreign government bonds		0		1,191,816		0		1,191,816
Loans		0		4,529,972		661,068		5,191,040
Municipal obligations		0		758,378		0		758,378
Non-agency mortgage-backed securities		0		4,725,725		0		4,725,725
Rights
Utilities		0		7,331		0		7,331
U.S. Treasury securities		122,210		0		0		122,210
Yankee corporate bonds and notes		0		3,403,968		0		3,403,968
Yankee government bonds		0		1,678,960		0		1,678,960
Short-term investments
Investment companies		3,584,787		0		0		3,584,787
U.S. Treasury securities		209,692		0		0		209,692
Investments measured at net asset value*								108,300
		4,022,900		35,325,213		661,068		40,117,481
Forward foreign currency contracts		0		17,460		0		17,460
Futures contracts		313		0		0		313
Total assets	$	4,023,213	$	35,342,673	$	661,068	$	40,135,254
Liabilities
Forward foreign currency contracts	$	0	$	8,501	$	0	$	8,501
Futures contracts		8,906		0		0		8,906
Total liabilities	$	8,906	$	8,501	$	0	$	17,407

Forward foreign currency contracts are reported at their unrealized gains (losses) at measurement date, which represents the change in the contract’s value from trade date. 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 March 31, 2017, the Fund did not have any transfers between Level 1 and Level 2.

30 Wells Fargo Strategic Income Fund Notes to financial statements (unaudited)

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

	Loans
Balance as of September 30, 2016	$	349,964
Accrued discounts (premiums)		(32	)
Realized gains (losses)		(590	)
Change in unrealized gains (losses)		4,198
Purchases		423,232
Sales		(102,065	)
Transfers into Level 3		134,000
Transfers out of Level 3		(147,639	)
Balance as of March 31, 2017	$	661,068
Change in unrealized gains (losses) relating to securities still held at March 31, 2017	$	3,794

The investment type categorized above was valued using indicative broker quotes. These indicative broker quotes are considered Level 3 inputs. Quantitative unobservable inputs used by the brokers are often proprietary and not provided to the Fund and therefore the disclosure that would address these inputs is not included above.

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 subadvisers, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.525% and declining to 0.405% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.525% of the Fund’s average daily net assets.

Funds Management has retained the services of a certain subadvisers to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap is a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.30% and declining to 0.15% as the average daily net assets of the Fund increase. First International Advisors, LLC, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is also a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

Administration fees

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

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

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.90% for Class A shares, 1.65% for Class C shares, 0.75% for Administrator Class shares, and 0.60% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Notes to financial statements (unaudited) Wells Fargo Strategic Income Fund 31

During the six months ended March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $42 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 $4,509 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 March 31, 2017, Funds Distributor received $26 from the sale of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2017 were $19,763,759 and $5,540,755, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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 March 31, 2017, the Fund had unfunded term loan commitments of $753,938.

6. DERIVATIVE TRANSACTIONS

During the six months ended March 31, 2017, the Fund entered into futures contracts to manage duration exposure.

At March 31, 2017, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at March 31, 2017		Unrealized gains (losses)
6-21-2017	JPMorgan	3 Short	Ultra U.S. Treasury Bonds	$	481,875	$	3,652
6-21-2017	JPMorgan	11 Short	10-Year U.S. Treasury Notes		1,370,188		1,700
6-21-2017	JPMorgan	1 Long	U.S. Treasury Bonds		150,844		426
6-30-2017	JPMorgan	4 Short	2-Year U.S. Treasury Notes		865,813		(136	)
6-30-2017	JPMorgan	32 Short	5-Year U.S. Treasury Notes		3,767,250		472

The Fund had an average notional amount of $430,729 in long futures contracts and $5,722,486 in short futures contracts during the six months ended March 31, 2017.

During the six months ended March 31, 2017, the Fund entered into forward foreign currency contracts for economic hedging purposes.

32 Wells Fargo Strategic Income Fund Notes to financial statements (unaudited)

At March 31, 2017, the Fund had forward foreign currency contracts outstanding as follows:

Forward foreign currency contracts to buy:

Exchange date	Counterparty	Contracts to receive			U.S. value at March 31, 2017		In exchange for U.S. $		Unrealized gains (losses)
4-21-2017	State Street Bank		170,000	CAD	$	127,868	$	127,509	$	359
5-2-2017	State Street Bank		1,469,020	MXN		78,125		70,000		8,125
5-2-2017	State Street Bank		129,250	EUR		138,058		140,107		(2,049	)

Forward foreign currency contracts to sell:

Exchange date	Counterparty	Contracts to deliver			U.S. value at March 31, 2017		In exchange for U.S. $		Unrealized gains (losses)
4-21-2017	State Street Bank		5,840,000	JPY	$	52,488	$	51,707	$	(781	)
5-2-2017	State Street Bank		129,250	EUR		138,058		140,000		1,942
6-1-2017	State Street Bank		752,500,000	COP		259,669		256,738		(2,931	)
6-2-2017	State Street Bank		4,250,000,000	IDR		316,871		315,165		(1,706	)
6-30-2017	Citibank NA		500,000	EUR		535,623		542,657		7,034
6-30-2017	Citibank NA		250,000	GBP		313,889		312,855		(1,034	)

The Fund had average contract amounts of $646,911 and $2,253,485 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the six months ended March 31, 2017.

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

The fair value of derivative instruments as of March 31, 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	$	313	*	Payable for daily variation margin on open futures contracts	$	8,906	*
Foreign currency risk	Unrealized gains on forward foreign currency contracts		17,460		Unrealized losses on forward foreign currency contracts		8,501
		$	17,773			$	17,407

* Only the current day’s variation margin as of March 31, 2017 is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the six months ended March 31, 2017 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives
	Futures Contracts		Forward currency contracts
Interest rate risk	$	246,693	$	0
Foreign currency risk		0		(48,952	)
	$	246,693	$	(48,952	)
	Change in unrealized gains (losses) on derivatives
	Futures Contracts		Forward currency contracts
Interest rate risk	$	19,119	$	0
Foreign currency risk		0		59,059
	$	19,119	$	59,059

Notes to financial statements (unaudited) Wells Fargo Strategic Income Fund 33

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	$	313		$	(313	)	$	0	$	0
Forward foreign currency contracts	State Street		10,426	*		(7,467	)		0		2,959
Forward foreign currency contracts	Citibank		7,034	*		(1,034	)		0		6,000

* 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	$	8,906		$	(313	)	$	(8,593	)	$	0
Forward foreign currency contracts	State Street		7,467	**		(7,467	)		0			0
Forward foreign currency contracts	Citibank		1,034	**		(1,034	)		0			0

** Amount represents net unrealized losses.

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

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 March 31, 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 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

34 Wells Fargo Strategic Income Fund Notes to financial statements (unaudited)

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.

11. SUBSEQUENT DISTRIBUTIONS

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		$0.02597
Administrator Class		0.02968
Institutional Class		0.03599

On May 24, 2017, the Fund declared distributions from net investment income to shareholders of record on May 23, 2017. The per share amounts payable on May 25, 2017 were as follows:

	Net investment income
Class A		$0.01075
Administrator Class		0.01137
Institutional Class		0.01341

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.

Other information (unaudited) Wells Fargo Strategic Income Fund 35

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

36 Wells Fargo Strategic Income Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 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 Strategic Income Fund 37

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

* 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.

38 Wells Fargo Strategic Income Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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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.

302885 05-17 SA263/SAR263 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo C&B Mid Cap Value Fund

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	10
Statement of operations	11
Statement of changes in net assets	12
Financial highlights	13
Notes to financial statements	17
Other information	22
List of abbreviations	25

The views expressed and any forward-looking statements are as of March 31, 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 C&B Mid Cap Value Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 C&B Mid Cap Value Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 C&B Mid Cap Value Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 C&B Mid Cap Value Fund Performance highlights (unaudited)

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Cooke and Bieler, L.P.

Portfolio managers

Andrew B. Armstrong, CFA^®

Steve Lyons, CFA^®

Michael M. Meyer, CFA^®

Edward W. O’Connor, CFA^®

R. James O’Neil, CFA^®

Mehul Trivedi, CFA^®

William Weber, CFA^®

Average annual total returns (%) as of March 31, 2017

		Including sales charge						Excluding sales charge						Expense ratios1 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net2
Class A (CBMAX)	7-26-2004		15.05		12.00		6.02		22.09		13.33		6.65		1.33		1.25
Class C (CBMCX)	7-26-2004		20.16		12.48		5.85		21.16		12.48		5.85		2.08		2.00
Administrator Class (CBMIX)	7-26-2004		–		–		–		22.19		13.40		6.73		1.25		1.15
Institutional Class (CBMSX)	7-26-2004		–		–		–		22.50		13.69		7.00		1.00		0.90
Russell Midcap® Value Index3	–		–		–		–		19.82		14.07		7.47		–		–

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo C&B Mid Cap Value Fund 5

Ten largest holdings (%) as of March 31, 20174
Gildan Activewear Incorporated	3.34
First Cash Financial Services Incorporated	3.27
AerCap Holdings NV	3.03
Laboratory Corporation of America Holdings	2.96
FNF Group	2.91
MEDNAX Incorporated	2.81
RenaissanceRe Holdings Limited	2.80
Axalta Coating Systems Limited	2.61
Omnicom Group Incorporated	2.56
Whirlpool Corporation	2.51

Sector distribution as of March 31, 2017⁵

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

²  The manager has contractually committed through January 31, 2018, 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

³  The Russell Midcap^® Value Index measures the performance of those Russell Midcap companies with lower price/book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000^® Value Index. 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 C&B Mid Cap Value 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,125.77	$	6.62		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.70	$	6.29		1.25	%
Class C
Actual	$	1,000.00	$	1,121.45	$	10.58		2.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.96	$	10.05		2.00	%
Administrator Class
Actual	$	1,000.00	$	1,126.24	$	6.10		1.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.20	$	5.79		1.15	%
Institutional Class
Actual	$	1,000.00	$	1,127.54	$	4.77		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.44	$	4.53		0.90	%

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—March 31, 2017 (unaudited) Wells Fargo C&B Mid Cap Value Fund 7

Security name	Shares		Value
Common Stocks: 95.12%
Consumer Discretionary: 16.87%
Automobiles: 1.13%
Winnebago Industries Incorporated «		96,600	$	2,825,550
Hotels, Restaurants & Leisure: 1.10%
Brinker International Incorporated «		62,700		2,756,292
Household Durables: 4.07%
Helen of Troy Limited †		41,400		3,899,880
Whirlpool Corporation		36,700		6,287,811
				10,187,691
Media: 2.56%
Omnicom Group Incorporated		74,500		6,422,645
Specialty Retail: 2.57%
Penske Auto Group Incorporated		34,100		1,596,221
Sally Beauty Holdings Incorporated †		236,300		4,829,972
				6,426,193
Textiles, Apparel & Luxury Goods: 5.44%
Gildan Activewear Incorporated		309,600		8,371,584
HanesBrands Incorporated «		253,400		5,260,584
				13,632,168
Consumer Staples: 1.93%
Food & Staples Retailing: 1.93%
United Natural Foods Incorporated †		112,000		4,841,760
Energy: 1.64%
Oil, Gas & Consumable Fuels: 1.64%
World Fuel Services Corporation		113,300		4,107,125
Financials: 22.04%
Banks: 4.86%
Commerce Bancshares Incorporated		43,003		2,415,048
SVB Financial Group †		19,400		3,610,146
TCF Financial Corporation		360,600		6,137,412
				12,162,606
Capital Markets: 2.38%
State Street Corporation		74,800		5,954,828
Consumer Finance: 5.61%
First Cash Financial Services Incorporated		166,700		8,193,305
PRA Group Incorporated †		177,100		5,870,865
				14,064,170

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

8 Wells Fargo C&B Mid Cap Value Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Insurance: 9.19%
FNF Group		187,400	$	7,297,356
RenaissanceRe Holdings Limited		48,500		7,015,525
The Progressive Corporation		157,700		6,178,686
Torchmark Corporation		32,800		2,526,912
				23,018,479
Health Care: 9.95%
Health Care Providers & Services: 8.09%
Cardinal Health Incorporated		71,200		5,806,360
Laboratory Corporation of America Holdings †		51,700		7,417,399
MEDNAX Incorporated †		101,400		7,035,132
				20,258,891
Pharmaceuticals: 1.86%
Perrigo Company plc «		70,400		4,673,856
Industrials: 19.59%
Aerospace & Defense: 2.06%
Rockwell Collins Incorporated		53,000		5,149,480
Building Products: 2.06%
Quanex Building Products Corporation		254,700		5,157,675
Commercial Services & Supplies: 1.65%
Tetra Tech Incorporated		101,200		4,134,020
Electrical Equipment: 4.52%
AMETEK Incorporated		95,500		5,164,640
Eaton Corporation plc		83,000		6,154,450
				11,319,090
Machinery: 6.27%
Donaldson Company Incorporated		76,600		3,486,832
Graco Incorporated		41,500		3,906,810
Parker-Hannifin Corporation		23,000		3,687,360
Woodward Governor Company		67,900		4,611,768
				15,692,770
Trading Companies & Distributors: 3.03%
AerCap Holdings NV †		165,300		7,598,841
Information Technology: 10.13%
Electronic Equipment, Instruments & Components: 1.04%
TE Connectivity Limited		35,000		2,609,250
IT Services: 7.24%
Alliance Data Systems Corporation		20,800		5,179,200
Genpact Limited		210,500		5,211,980
Moneygram International Incorporated †		309,400		5,201,014
The Western Union Company «		124,700		2,537,645
				18,129,839

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo C&B Mid Cap Value Fund 9

Security name				Shares		Value
Semiconductors & Semiconductor Equipment: 1.85%
Analog Devices Incorporated					11,140	$	912,923
Entegris Incorporated †					158,700		3,713,580
							4,626,503
Materials: 11.20%
Chemicals: 2.61%
Axalta Coating Systems Limited †					203,000		6,536,600
Containers & Packaging: 4.45%
Ball Corporation					77,300		5,740,298
Crown Holdings Incorporated †					102,300		5,416,785
							11,157,083
Metals & Mining: 1.80%
Reliance Steel & Aluminum Company					56,200		4,497,124
Paper & Forest Products: 2.34%
Schweitzer-Mauduit International Incorporated					141,200		5,848,504
Real Estate: 1.77%
Real Estate Management & Development: 1.77%
CBRE Group Incorporated Class A †					127,200		4,425,288
Total Common Stocks (Cost $198,858,296)							238,214,321
	Yield
Short-Term Investments: 12.49%
Investment Companies: 12.49%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98	%		17,406,440		17,408,181
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63			13,888,929		13,888,929
Total Short-Term Investments (Cost $31,296,871)							31,297,110

Total investments in securities (Cost $230,155,167) *	107.61	%		269,511,431
Other assets and liabilities, net	(7.61	)		(19,067,584	)
Total net assets	100.00	%	$	250,443,847

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

† Non-income-earning security

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

* Cost for federal income tax purposes is $230,841,962 and unrealized gains (losses) consists of:

Gross unrealized gains	$	42,640,377
Gross unrealized losses		(3,970,908	)
Net unrealized gains	$	38,669,469

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

10 Wells Fargo C&B Mid Cap Value Fund Statement of assets and liabilities—March 31, 2017 (unaudited)

Assets
Investments
In unaffiliated securities (including $16,990,292 of securities loaned), at value (cost $198,858,296)	$	238,214,321
In affiliated securities, at value (cost $31,296,871)		31,297,110
Total investments, at value (cost $230,155,167)		269,511,431
Receivable for Fund shares sold		459,508
Receivable for dividends		195,673
Receivable for securities lending income		3,527
Prepaid expenses and other assets		31,823
Total assets		270,201,962
Liabilities
Payable for investments purchased		1,457,544
Payable for Fund shares redeemed		603,064
Payable upon receipt of securities loaned		17,407,575
Management fee payable		156,754
Distribution fees payable		5,868
Administration fees payable		38,224
Accrued expenses and other liabilities		89,086
Total liabilities		19,758,115
Total net assets	$	250,443,847
NET ASSETS CONSIST OF
Paid-in capital	$	273,413,023
Undistributed net investment income		141,545
Accumulated net realized losses on investments		(62,466,985	)
Net unrealized gains on investments		39,356,264
Total net assets	$	250,443,847
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	112,617,096
Shares outstanding – Class A1		3,420,338
Net asset value per share – Class A		$32.93
Maximum offering price per share – Class A2		$34.94
Net assets – Class C	$	8,679,905
Shares outstanding – Class C1		278,110
Net asset value per share – Class C		$31.21
Net assets – Administrator Class	$	10,002,819
Shares outstanding – Administrator Class1		300,124
Net asset value per share – Administrator Class		$33.33
Net assets – Institutional Class	$	119,144,027
Shares outstanding – Institutional Class1		3,589,913
Net asset value per share – Institutional Class		$33.19

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended March 31, 2017 (unaudited) Wells Fargo C&B Mid Cap Value Fund 11

Investment income
Dividends (net of foreign withholding taxes of $5,887)	$	1,269,759
Income from affiliated securities		23,907
Securities lending income, net		19,445
Total investment income		1,313,111
Expenses
Management fee		751,435
Administration fees
Class A		129,117
Class B		22	1
Class C		8,471
Administrator Class		5,244
Institutional Class		39,818
Shareholder servicing fees
Class A		153,711
Class B		26	1
Class C		10,085
Administrator Class		10,084
Distribution fees
Class B		78	1
Class C		30,254
Custody and accounting fees		9,837
Professional fees		19,916
Registration fees		33,938
Shareholder report expenses		24,552
Trustees’ fees and expenses		7,884
Other fees and expenses		4,610
Total expenses		1,239,082
Less: Fee waivers and/or expense reimbursements		(67,594	)
Net expenses		1,171,488
Net investment income		141,623
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		12,141,149
Affiliated securities		367
Net realized gains on investments		12,141,516
Net change in unrealized gains (losses) on:
Unaffiliated securities		9,821,542
Affiliated securities		239
Net change in unrealized gains (losses) on investments		9,821,781
Net realized and unrealized gains (losses) on investments		21,963,297
Net increase in net assets resulting from operations	$	22,104,920

¹  For the period from October 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 C&B Mid Cap Value Fund Statement of changes in net assets

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment income				$	141,623					$	366,395
Net realized gains on investments					12,141,516						7,300,682
Net change in unrealized gains (losses) on investments					9,821,781						17,600,698
Net increase in net assets resulting from operations					22,104,920						25,267,775
Distributions to shareholders from
Net investment income
Class A					(83,058	)					(221,257	)
Administrator Class					(9,681	)					(20,557	)
Institutional Class					(150,215	)					(109,235	)
Total distributions to shareholders					(242,954	)					(351,049	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		214,476			6,805,462			4,470,268			119,152,053
Class C		40,144			1,217,157			34,688			897,420
Administrator Class		96,223			3,111,745			23,525			632,143
Institutional Class		2,606,757			85,446,079			948,461			26,675,954
Investor Class		NA			NA			29,800	1		784,378	1
					96,580,443						148,141,948
Reinvestment of distributions
Class A		2,574			82,120			8,427			219,598
Administrator Class		154			4,968			474			12,485
Institutional Class		3,867			124,207			2,752			72,162
					211,295						304,245
Payment for shares redeemed
Class A		(896,894	)		(28,818,259	)		(1,169,247	)		(32,299,187	)
Class B		(2,793	)2		(82,744	)2		(1,734	)		(44,690	)
Class C		(24,830	)		(743,841	)		(52,342	)		(1,354,172	)
Administrator Class		(76,431	)		(2,444,437	)		(126,420	)		(3,361,427	)
Institutional Class		(312,961	)		(9,995,955	)		(378,243	)		(10,129,726	)
Investor Class		NA			NA			(4,103,703	)1		(109,800,701	)1
					(42,085,236	)					(156,989,903	)
Net increase (decrease) in net assets resulting from capital share transactions					54,706,502						(8,543,710	)
Total increase in net assets					76,568,468						16,373,016
Net assets
Beginning of period					173,875,379						157,502,363
End of period				$	250,443,847					$	173,875,379
Undistributed net investment income				$	141,545					$	242,876

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

²  For the period from October 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.

Financial highlights Wells Fargo C&B Mid Cap Value Fund 13

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$29.27			$25.12			$25.26			$23.74			$18.22			$14.06
Net investment income		0.00	1,2		0.07	1		0.05	1		0.06			0.10	1		0.16
Net realized and unrealized gains (losses) on investments		3.68			4.13			(0.14	)		1.55			5.60			4.10
Total from investment operations		3.68			4.20			(0.09	)		1.61			5.70			4.26
Distributions to shareholders from
Net investment income		(0.02	)		(0.05	)		(0.05	)		(0.09	)		(0.18	)		(0.10	)
Net asset value, end of period		$32.93			$29.27			$25.12			$25.26			$23.74			$18.22
Total return3		12.58	%		16.73	%		(0.36	)%		6.78	%		31.59	%		30.42	%
Ratios to average net assets (annualized)
Gross expenses		1.31	%		1.33	%		1.35	%		1.35	%		1.38	%		1.38	%
Net expenses		1.25	%		1.24	%		1.20	%		1.20	%		1.20	%		1.20	%
Net investment income		0.01	%		0.27	%		0.18	%		0.24	%		0.49	%		0.97	%
Supplemental data
Portfolio turnover rate		58	%		35	%		41	%		55	%		48	%		25	%
Net assets, end of period (000s omitted)		$112,617			$120,020			$19,862			$21,465			$19,468			$13,466

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 C&B Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$27.83			$24.02			$24.29			$22.92			$17.60			$13.59
Net investment income (loss)		(0.03	)		(0.14	)1		(0.15	)1		(0.13	)1		(0.05	)1		0.03	1
Net realized and unrealized gains (losses) on investments		3.41			3.95			(0.12	)		1.50			5.42			3.98
Total from investment operations		3.38			3.81			(0.27	)		1.37			5.37			4.01
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.05	)		0.00
Net asset value, end of period		$31.21			$27.83			$24.02			$24.29			$22.92			$17.60
Total return2		12.15	%		15.86	%		(1.11	)%		5.98	%		30.58	%		29.51	%
Ratios to average net assets (annualized)
Gross expenses		2.06	%		2.08	%		2.10	%		2.10	%		2.13	%		2.13	%
Net expenses		2.00	%		1.98	%		1.95	%		1.95	%		1.95	%		1.95	%
Net investment income (loss)		(0.71	)%		(0.55	)%		(0.57	)%		(0.52	)%		(0.26	)%		0.21	%
Supplemental data
Portfolio turnover rate		58	%		35	%		41	%		55	%		48	%		25	%
Net assets, end of period (000s omitted)		$8,680			$7,314			$6,737			$7,531			$7,598			$5,254

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 C&B Mid Cap Value Fund 15

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$29.63			$25.42			$25.54			$24.01			$18.42			$14.22
Net investment income		0.02	1		0.08	1		0.06	1		0.07	1		0.11	1		0.17	1
Net realized and unrealized gains (losses) on investments		3.72			4.19			(0.13	)		1.56			5.67			4.14
Total from investment operations		3.74			4.27			(0.07	)		1.63			5.78			4.31
Distributions to shareholders from
Net investment income		(0.04	)		(0.06	)		(0.05	)		(0.10	)		(0.19	)		(0.11	)
Net asset value, end of period		$33.33			$29.63			$25.42			$25.54			$24.01			$18.42
Total return2		12.62	%		16.82	%		(0.30	)%		6.82	%		31.65	%		30.44	%
Ratios to average net assets (annualized)
Gross expenses		1.23	%		1.25	%		1.21	%		1.19	%		1.21	%		1.21	%
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Net investment income		0.12	%		0.28	%		0.22	%		0.26	%		0.53	%		1.00	%
Supplemental data
Portfolio turnover rate		58	%		35	%		41	%		55	%		48	%		25	%
Net assets, end of period (000s omitted)		$10,003			$8,302			$9,725			$12,830			$19,525			$10,636

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 C&B Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$29.53			$25.34			$25.49			$23.95			$18.38			$14.19
Net investment income		0.08	1		0.16			0.10			0.14			0.17	1		0.23
Net realized and unrealized gains (losses) on investments		3.68			4.17			(0.12	)		1.55			5.64			4.11
Total from investment operations		3.76			4.33			(0.02	)		1.69			5.81			4.34
Distributions to shareholders from
Net investment income		(0.10	)		(0.14	)		(0.13	)		(0.15	)		(0.24	)		(0.15	)
Net asset value, end of period		$33.19			$29.53			$25.34			$25.49			$23.95			$18.38
Total return2		12.75	%		17.11	%		(0.09	)%3		7.09	%		31.98	%		30.80	%
Ratios to average net assets (annualized)
Gross expenses		0.98	%		1.00	%		0.94	%		0.92	%		0.95	%		0.95	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		0.51	%		0.54	%		0.47	%		0.54	%		0.82	%		1.31	%
Supplemental data
Portfolio turnover rate		58	%		35	%		41	%		55	%		48	%		25	%
Net assets, end of period (000s omitted)		$119,144			$38,161			$18,229			$33,881			$24,628			$24,983

¹  Calculated based upon average shares outstanding

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

³  Total return reflects adjustments to conform with generally accepted accounting principles.

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

Notes to financial statements (unaudited) Wells Fargo C&B Mid Cap Value 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo C&B Mid Cap Value 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 were converted to Class A shares and are no longer offered by the Fund. 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.

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 companies 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

18 Wells Fargo C&B Mid Cap Value Fund Notes to financial statements (unaudited)

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.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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 September 30, 2016, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $74,123,891 with $54,905,219 expiring in 2017 and $19,218,672 expiring in 2018.

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 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:

Notes to financial statements (unaudited) Wells Fargo C&B Mid Cap Value Fund 19

∎ 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	42,250,539	$	0	$	0	$	42,250,539
Consumer staples		4,841,760		0		0		4,841,760
Energy		4,107,125		0		0		4,107,125
Financials		55,200,083		0		0		55,200,083
Health care		24,932,747		0		0		24,932,747
Industrials		49,051,876		0		0		49,051,876
Information technology		25,365,592		0		0		25,365,592
Materials		28,039,311		0		0		28,039,311
Real estate		4,425,288		0		0		4,425,288
Short-term investments
Investment companies		13,888,929		0		0		13,888,929
Investments measured at net asset value*								17,408,181
Total assets	$	252,103,250	$	0	$	0	$	269,511,431

* 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 $17,408,181 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 March 31, 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 applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.75% and declining to 0.63% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.75% 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. Cooke & Bieler, L.P. which is not an affiliate of Funds Management, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.45% and declining to 0.35% as the average daily net assets of the Fund increase.

20 Wells Fargo C&B Mid Cap Value Fund Notes to financial statements (unaudited)

Administration fees

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

	Class-level administration fee
Class A, Class B, Class C		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.25% for Class A shares, 2.00% for Class C shares, 1.15% for Administrator Class shares, and 0.90% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $184 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,033 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 March 31, 2017, Funds Distributor received $1,450 from the sale of Class A shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2017 were $184,263,217 and $116,427,852, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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 months ended March 31, 2017, there were no borrowings by the Fund under the agreement.

Notes to financial statements (unaudited) Wells Fargo C&B Mid Cap Value Fund 21

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 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.

9. REGULATORY CHANGES

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

22 Wells Fargo C&B Mid Cap Value 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 C&B Mid Cap Value Fund 23

BOARD OF TRUSTEES AND OFFICERS

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

24 Wells Fargo C&B Mid Cap Value 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 C&B Mid Cap Value Fund 25

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

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For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has Fund customer accounts/assets, and neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

302886 05-17 SA228/SAR228 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Common Stock 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	20
Other information	25
List of abbreviations	28

The views expressed and any forward-looking statements are as of March 31, 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 Common Stock Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Common Stock Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Common Stock Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Common Stock Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Ann M. Miletti

Christopher G. Miller, CFA^®‡

Average annual total returns (%) as of March 31, 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 (SCSAX)	11-30-2000		12.19		9.84		7.78		19.03		11.15		8.42		1.26		1.26
Class C (STSAX)	11-30-2000		17.19		10.31		7.60		18.19		10.31		7.60		2.01		2.01
Class R6 (SCSRX)	6-28-2013		–		–		–		19.55		11.62		8.73		0.83		0.83
Administrator Class (SCSDX)	7-30-2010		–		–		–		19.19		11.32		8.53		1.18		1.11
Institutional Class (SCNSX)	7-30-2010		–		–		–		19.54		11.58		8.71		0.93		0.86
Russell 2500TM Index4	–		–		–		–		21.53		12.60		7.71		–		–

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Common Stock Fund 5

Ten largest holdings (%) as of March 31, 20175
Haemonetics Corporation	2.18
E*TRADE Financial Corporation	2.16
CNO Financial Group Incorporated	2.05
Raymond James Financial Incorporated	2.03
Bank of the Ozarks Incorporated	1.89
Laboratory Corporation of America Holdings	1.82
Red Hat Incorporated	1.76
SBA Communications Corporation	1.75
Skyworks Solutions Incorporated	1.72
ON Semiconductor Corporation	1.67

Portfolio allocation as of March 31, 2017⁶

^‡  Mr. Miller became the portfolio manager of the Fund on March 1, 2017.

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, the returns for Class R6 shares would be higher. Historical performance shown for Administrator Class and Institutional Class shares prior to their inception reflects the performance of Class A shares, and includes the higher expenses applicable to Class A shares. If these expenses had not been included, the 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 January 31, 2018, 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 1.26% for Class A, 2.01% for Class C, 0.85% for Class R6, 1.10% for Administrator Class, and 0.85% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  The Russell 2500^TM Index measures the performance of the 2,500 smallest companies in the Russell 3000^® Index, which represents approximately 16% of the total market capitalization of the Russell 3000^® Index. You cannot invest directly in an index.

⁵  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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

6 Wells Fargo Common Stock 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,108.38	$	6.57		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.70	$	6.29		1.25	%
Class C
Actual	$	1,000.00	$	1,104.94	$	10.50		2.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,014.96	$	10.05		2.00	%
Class R6
Actual	$	1,000.00	$	1,110.62	$	4.31		0.82	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.84	$	4.13		0.82	%
Administrator Class
Actual	$	1,000.00	$	1,109.29	$	5.78		1.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.45	$	5.54		1.10	%
Institutional Class
Actual	$	1,000.00	$	1,110.87	$	4.47		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.69	$	4.28		0.85	%

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—March 31, 2017 (unaudited) Wells Fargo Common Stock Fund 7

Security name	Shares		Value
Common Stocks: 96.46%
Consumer Discretionary: 8.54%
Auto Components: 1.39%
Dana Incorporated		917,650	$	17,719,822
Diversified Consumer Services: 0.91%
Houghton Mifflin Harcourt Company †		1,144,230		11,613,935
Hotels, Restaurants & Leisure: 1.19%
Buffalo Wild Wings Incorporated †		99,945		15,266,599
Household Durables: 1.42%
Mohawk Industries Incorporated †		78,930		18,113,646
Media: 1.14%
Interpublic Group of Companies Incorporated		594,282		14,601,509
Specialty Retail: 2.49%
Tractor Supply Company		270,190		18,635,004
Urban Outfitters Incorporated †		552,803		13,134,599
				31,769,603
Consumer Staples: 1.68%
Household Products: 1.08%
Church & Dwight Company Incorporated		275,325		13,730,458
Personal Products: 0.60%
Edgewell Personal Care Company †		105,148		7,690,525
Energy: 7.37%
Energy Equipment & Services: 0.93%
Weatherford International plc Ǡ		1,787,774		11,888,697
Oil, Gas & Consumable Fuels: 6.44%
Cimarex Energy Company		145,204		17,350,426
Matador Resources Company Ǡ		626,807		14,911,739
Parsley Energy Incorporated Class A †		498,052		16,191,671
Pioneer Natural Resources Company		51,023		9,502,013
Range Resources Corporation		269,892		7,853,857
RSP Permian Incorporated †		397,480		16,467,596
				82,277,302
Financials: 19.61%
Banks: 6.83%
Bank of the Ozarks Incorporated		463,432		24,103,098
First Horizon National Corporation		602,745		11,150,783
MB Financial Incorporated		298,164		12,767,382
PacWest Bancorp		393,754		20,971,338
Sterling BanCorp		771,961		18,295,476
				87,288,077

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

8 Wells Fargo Common Stock Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Capital Markets: 4.19%
E*TRADE Financial Corporation †		790,257	$	27,572,067
Raymond James Financial Incorporated		340,557		25,970,877
				53,542,944
Insurance: 8.59%
Arch Capital Group Limited †		160,706		15,230,108
CNO Financial Group Incorporated		1,279,369		26,227,065
Reinsurance Group of America Incorporated		123,122		15,634,032
RenaissanceRe Holdings Limited		102,383		14,809,701
The Progressive Corporation		436,844		17,115,548
Willis Towers Watson plc		158,127		20,697,243
				109,713,697
Health Care: 13.37%
Biotechnology: 1.53%
Alkermes plc †		199,298		11,658,933
BioMarin Pharmaceutical Incorporated †		90,117		7,910,470
				19,569,403
Health Care Equipment & Supplies: 4.87%
Haemonetics Corporation †		686,219		27,839,905
Hologic Incorporated †		422,715		17,986,523
LivaNova plc †		332,906		16,315,723
				62,142,151
Health Care Providers & Services: 4.19%
Humana Incorporated		72,352		14,914,641
Laboratory Corporation of America Holdings †		162,115		23,258,639
Universal Health Services Incorporated Class B		123,633		15,386,127
				53,559,407
Life Sciences Tools & Services: 2.78%
Agilent Technologies Incorporated		376,744		19,918,455
PerkinElmer Incorporated		269,256		15,633,003
				35,551,458
Industrials: 18.17%
Airlines: 1.20%
Spirit Airlines Incorporated †		289,820		15,380,747
Commercial Services & Supplies: 3.62%
Republic Services Incorporated		243,771		15,311,257
Steelcase Incorporated Class A		1,066,541		17,864,562
Stericycle Incorporated †		156,851		13,001,379
				46,177,198

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Common Stock Fund 9

Security name	Shares		Value
Electrical Equipment: 4.87%
AMETEK Incorporated		365,863	$	19,785,871
Babcock & Wilcox Enterprises Incorporated †		427,437		3,992,262
Hubbell Incorporated		146,727		17,614,576
Sensata Technologies Holding NV †		477,564		20,855,220
				62,247,929
Machinery: 3.57%
Allison Transmission Holdings Incorporated		371,223		13,386,301
Colfax Corporation †		435,757		17,107,820
Wabtec Corporation «		194,479		15,169,362
				45,663,483
Road & Rail: 2.12%
Hertz Global Holdings Incorporated «		546,308		9,582,242
Ryder System Incorporated		231,275		17,447,386
				27,029,628
Trading Companies & Distributors: 2.79%
GATX Corporation «		263,979		16,092,160
MRC Global Incorporated †		1,062,711		19,479,493
				35,571,653
Information Technology: 18.09%
Internet Software & Services: 0.96%
Cornerstone OnDemand Incorporated †		314,085		12,214,766
IT Services: 4.57%
Amdocs Limited		223,932		13,657,613
CoreLogic Incorporated †		399,644		16,273,504
Gartner Incorporated †		105,095		11,349,209
Global Payments Incorporated		212,554		17,148,857
				58,429,183
Semiconductors & Semiconductor Equipment: 5.14%
Integrated Device Technology Incorporated †		554,339		13,121,204
Maxim Integrated Products Incorporated		206,194		9,270,482
ON Semiconductor Corporation †		1,373,314		21,272,634
Skyworks Solutions Incorporated		224,361		21,982,891
				65,647,211
Software: 5.76%
Fortinet Incorporated †		395,806		15,179,160
Nuance Communications Incorporated †		937,101		16,221,218
Red Hat Incorporated †		259,849		22,476,939
Zendesk Incorporated †		704,293		19,748,376
				73,625,693

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

10 Wells Fargo Common Stock Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name				Shares		Value
Technology Hardware, Storage & Peripherals: 1.66%
Diebold Incorporated					690,769	$	21,206,608
Materials: 5.77%
Chemicals: 2.17%
Axalta Coating Systems Limited †					463,947		14,939,093
International Flavors & Fragrances Incorporated					96,279		12,759,856
							27,698,949
Containers & Packaging: 1.04%
Crown Holdings Incorporated †					251,589		13,321,638
Metals & Mining: 2.56%
Royal Gold Incorporated					248,158		17,383,468
Steel Dynamics Incorporated					441,900		15,360,444
							32,743,912
Real Estate: 3.86%
Equity REITs: 3.86%
Camden Property Trust					113,066		9,097,290
Hudson Pacific Properties Incorporated					279,660		9,687,422
Physicians Realty Trust					413,602		8,218,272
SBA Communications Corporation †					185,642		22,345,723
							49,348,707
Total Common Stocks (Cost $863,349,170)							1,232,346,538
Exchange-Traded Funds: 2.58%
SPDR Dow Jones REIT ETF «					141,502		13,057,805
SPDR S&P Biotech ETF «					286,446		19,862,166
Total Exchange-Traded Funds (Cost $26,668,228)							32,919,971
	Yield
Short-Term Investments: 6.80%
Investment Companies: 6.80%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98	%		72,030,583		72,037,786
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63			14,869,412		14,869,412
Total Short-Term Investments (Cost $86,904,901)							86,907,198

Total investments in securities (Cost $976,922,299) *	105.84	%		1,352,173,707
Other assets and liabilities, net	(5.84	)		(74,566,290	)
Total net assets	100.00	%	$	1,277,607,417

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Common Stock Fund 11

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $974,573,545 and unrealized gains (losses) consists of:

Gross unrealized gains	$	411,842,924
Gross unrealized losses		(34,242,762	)
Net unrealized gains	$	377,600,162

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

12 Wells Fargo Common Stock Fund Statement of assets and liabilities—March 31, 2017 (unaudited)

Assets
Investments
In unaffiliated securities, at value (including $70,453,205 of securities loaned), at value (cost $890,017,398)	$	1,265,266,509
In affiliated securities, at value (cost $86,904,901)		86,907,198
Total investments, at value (cost $976,922,299)		1,352,173,707
Receivable for investments sold		3,205,125
Receivable for Fund shares sold		1,248,873
Receivable for dividends		848,694
Receivable for securities lending income		29,162
Prepaid expenses and other assets		13,884
Total assets		1,357,519,445
Liabilities
Payable for investments purchased		5,968,520
Payable for Fund shares redeemed		499,802
Payable upon receipt of securities loaned		72,034,550
Management fee payable		861,289
Distribution fees payable		14,971
Administration fees payable		209,386
Accrued expenses and other liabilities		323,510
Total liabilities		79,912,028
Total net assets	$	1,277,607,417
NET ASSETS CONSIST OF
Paid-in capital	$	835,888,531
Accumulated net investment loss		(1,268,187	)
Accumulated net realized gains on investments		67,735,665
Net unrealized gains on investments		375,251,408
Total net assets	$	1,277,607,417
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	940,892,558
Shares outstanding – Class A1		40,955,365
Net asset value per share – Class A		$22.97
Maximum offering price per share – Class A2		$24.37
Net assets – Class C	$	21,940,090
Shares outstanding – Class C1		1,221,076
Net asset value per share – Class C		$17.97
Net assets – Class R6	$	111,756,192
Shares outstanding – Class R61		4,684,913
Net asset value per share – Class R6		$23.85
Net assets – Administrator Class	$	7,453,413
Shares outstanding – Administrator Class1		319,851
Net asset value per share – Administrator Class		$23.30
Net assets – Institutional Class	$	195,565,164
Shares outstanding – Institutional Class1		8,216,964
Net asset value per share – Institutional Class		$23.80

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—six months ended March 31, 2017 (unaudited) Wells Fargo Common Stock Fund 13

Investment income
Dividends	$	5,833,982
Securities lending income, net		163,101
Income from affiliated securities		42,971
Total investment income		6,040,054
Expenses
Management fee		4,750,204
Administration fees
Class A		980,813
Class B		12	1
Class C		23,550
Class R6		15,831
Administrator Class		6,799
Institutional Class		115,571
Shareholder servicing fees
Class A		1,167,635
Class B		14	1
Class C		28,036
Administrator Class		13,076
Distribution fees
Class B		41	1
Class C		84,108
Custody and accounting fees		37,314
Professional fees		25,826
Registration fees		55,588
Shareholder report expenses		35,181
Trustees’ fees and expenses		12,451
Other fees and expenses		17,938
Total expenses		7,369,988
Less: Fee waivers and/or expense reimbursements		(65,606	)
Net expenses		7,304,382
Net investment loss		(1,264,328	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		80,581,691
Affiliated securities		939
Net realized gains on investments		80,582,630
Net change in unrealized gains (losses) on:
Unaffiliated securities		50,230,676
Affiliated securities		2,297
Net change in unrealized gains (losses) on investments		50,232,973
Net realized and unrealized gains (losses) on investments		130,815,603
Net increase in net assets resulting from operations	$	129,551,275

¹  For the period from October 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 Common Stock Fund Statement of changes in net assets

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment loss				$	(1,264,328	)				$	(418,110	)
Net realized gains on investments					80,582,630						58,412,227
Net change in unrealized gains (losses) on investments					50,232,973						87,367,906
Net increase in net assets resulting from operations					129,551,275						145,362,023
Distributions to shareholders from
Net realized gains
Class A					(34,833,443	)					(110,146,894	)
Class B					0	1					(12,735	)
Class C					(1,072,237	)					(3,575,460	)
Class R6					(3,722,906	)					(10,822,850	)
Administrator Class					(308,980	)					(1,979,080	)
Institutional Class					(6,486,421	)					(25,614,461	)
Total distributions to shareholders					(46,423,987	)					(152,151,480	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		622,413			13,607,925			39,544,860			906,361,116
Class C		39,541			693,828			87,982			1,399,266
Class R6		530,885			12,278,380			727,868			15,356,332
Administrator Class		43,736			959,779			93,356			1,876,928
Institutional Class		1,485,160			34,812,983			1,569,307			33,234,939
Investor Class		N/A			N/A			38,960	2		902,899	2
					62,352,895						959,131,480
Reinvestment of distributions
Class A		1,499,510			33,259,140			5,376,198			105,588,529
Class B		0	1		0	1		812			12,735
Class C		52,926			920,375			193,065			3,025,330
Class R6		161,865			3,722,906			534,462			10,822,850
Administrator Class		13,054			293,584			97,753			1,942,357
Institutional Class		279,367			6,411,478			1,256,619			25,408,844
					44,607,483						146,800,645
Payment for shares redeemed
Class A		(4,188,293	)		(93,119,040	)		(7,807,939	)		(160,174,152	)
Class B		(1,872	)1		(33,351	)1		(5,487	)		(91,427	)
Class C		(215,028	)		(3,751,886	)		(381,490	)		(6,231,682	)
Class R6		(567,671	)		(12,995,972	)		(984,239	)		(20,831,726	)
Administrator Class		(504,604	)		(11,403,999	)		(249,908	)		(5,213,466	)
Institutional Class		(1,348,257	)		(30,305,140	)		(5,255,616	)		(106,700,641	)
Investor Class		N/A			N/A			(37,451,779	)2		(884,694,693	)2
					(151,609,388	)					(1,183,937,787	)
Net decrease in net assets resulting from capital share transactions					(44,649,010	)					(78,005,662	)
Total increase (decrease) in net assets					38,478,278						(84,795,119	)
Net assets
Beginning of period					1,239,129,139						1,323,924,258
End of period				$	1,277,607,417					$	1,239,129,139
Accumulated net investment loss				$	(1,268,187	)				$	(3,859	)

¹  For the period from October 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 October 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 Common Stock Fund 15

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$21.50			$21.62			$24.79			$24.45			$21.18			$17.15
Net investment loss		(0.03	)		(0.01	)1		(0.04	)1		(0.07	)		(0.02	)		(0.04	)
Net realized and unrealized gains (losses) on investments		2.33			2.45			(0.32	)		2.48			4.72			5.33
Total from investment operations		2.30			2.44			(0.36	)		2.41			4.70			5.29
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)		(1.26	)
Net asset value, end of period		$22.97			$21.50			$21.62			$24.79			$24.45			$21.18
Total return2		10.84	%		12.43	%		(1.76	)%		10.26	%		23.72	%		31.90	%
Ratios to average net assets (annualized)
Gross expenses		1.25	%		1.25	%		1.27	%		1.28	%		1.30	%		1.31	%
Net expenses		1.25	%		1.25	%		1.26	%		1.26	%		1.26	%		1.26	%
Net investment loss		(0.28	)%		(0.05	)%		(0.19	)%		(0.27	)%		(0.05	)%		(0.16	)%
Supplemental data
Portfolio turnover rate		36	%		32	%		51	%		38	%		40	%		30	%
Net assets, end of period (000s omitted)		$940,893			$924,864			$127,732			$277,517			$292,806			$207,668

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.

16 Wells Fargo Common Stock Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$17.04			$17.77			$21.02			$21.18			$18.67			$15.35
Net investment loss		(0.29	)		(0.14	)1		(0.18	)		(0.22	)1		(0.16	)1		(0.16	)1
Net realized and unrealized gains (losses) on investments		2.05			1.97			(0.26	)		2.13			4.10			4.74
Total from investment operations		1.76			1.83			(0.44	)		1.91			3.94			4.58
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)		(1.26	)
Net asset value, end of period		$17.97			$17.04			$17.77			$21.02			$21.18			$18.67
Total return2		10.49	%		11.52	%		(2.49	)%		9.42	%		22.78	%		30.95	%
Ratios to average net assets (annualized)
Gross expenses		2.00	%		2.00	%		2.02	%		2.03	%		2.05	%		2.06	%
Net expenses		2.00	%		2.00	%		2.00	%		2.01	%		2.01	%		2.01	%
Net investment loss		(1.04	)%		(0.87	)%		(0.93	)%		(1.01	)%		(0.81	)%		(0.92	)%
Supplemental data
Portfolio turnover rate		36	%		32	%		51	%		38	%		40	%		30	%
Net assets, end of period (000s omitted)		$21,940			$22,902			$25,668			$30,245			$29,483			$20,080

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 Common Stock Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS R6				2016			2015			2014			20131
Net asset value, beginning of period		$22.25			$22.20			$25.27			$24.78			$22.83
Net investment income		0.02	2		0.07	2		0.05			0.07	2		0.01
Net realized and unrealized gains (losses) on investments		2.41			2.54			(0.31	)		2.49			1.94
Total from investment operations		2.43			2.61			(0.26	)		2.56			1.95
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		0.00
Net asset value, end of period		$23.85			$22.25			$22.20			$25.27			$24.78
Total return3		11.06	%		12.91	%		(1.29	)%		10.76	%		8.54	%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.82	%		0.80	%		0.80	%		0.81	%
Net expenses		0.82	%		0.82	%		0.80	%		0.80	%		0.81	%
Net investment income		0.15	%		0.32	%		0.28	%		0.27	%		0.18	%
Supplemental data
Portfolio turnover rate		36	%		32	%		51	%		38	%		40	%
Net assets, end of period (000s omitted)		$111,756			$101,436			$95,037			$95,213			$27

¹  For the period from June 28, 2013 (commencement of class operations) to September 30, 2013

²  Calculated based upon average shares outstanding

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

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

18 Wells Fargo Common Stock Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$21.78			$21.84			$24.98			$24.59			$21.26			$17.18
Net investment income (loss)		(0.02	)1		0.02			(0.01	)1		(0.02	)1		0.01			0.01
Net realized and unrealized gains (losses) on investments		2.37			2.48			(0.32	)		2.48			4.75			5.33
Total from investment operations		2.35			2.50			(0.33	)		2.46			4.76			5.34
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)		(1.26	)
Net asset value, end of period		$23.30			$21.78			$21.84			$24.98			$24.59			$21.26
Total return2		10.93	%		12.59	%		(1.62	)%		10.41	%		23.92	%		32.15	%
Ratios to average net assets (annualized)
Gross expenses		1.17	%		1.17	%		1.12	%		1.11	%		1.11	%		1.10	%
Net expenses		1.10	%		1.10	%		1.10	%		1.09	%		1.09	%		1.07	%
Net investment income (loss)		(0.19	)%		0.03	%		(0.03	)%		(0.07	)%		0.11	%		0.01	%
Supplemental data
Portfolio turnover rate		36	%		32	%		51	%		38	%		40	%		30	%
Net assets, end of period (000s omitted)		$7,453			$16,720			$18,050			$45,364			$24,871			$19,428

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 Common Stock Fund 19

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$22.20			$22.16			$25.25			$24.77			$21.37			$17.23
Net investment income		0.01	1		0.06	1		0.03			0.03			0.07	1		0.06	1
Net realized and unrealized gains (losses) on investments		2.42			2.54			(0.31	)		2.52			4.76			5.34
Total from investment operations		2.43			2.60			(0.28	)		2.55			4.83			5.40
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)		(1.26	)
Net asset value, end of period		$23.80			$22.20			$22.16			$25.25			$24.77			$21.37
Total return2		11.09	%		12.88	%		(1.38	)%		10.72	%		24.14	%		32.42	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.92	%		0.86	%		0.85	%		0.87	%		0.88	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.87	%		0.88	%
Net investment income		0.12	%		0.28	%		0.24	%		0.14	%		0.33	%		0.28	%
Supplemental data
Portfolio turnover rate		36	%		32	%		51	%		38	%		40	%		30	%
Net assets, end of period (000s omitted)		$195,565			$173,175			$226,729			$223,525			$197,453			$86,645

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.

20 Wells Fargo Common Stock 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Common Stock 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 were converted to Class A shares and are no longer offered by the Fund. 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.

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 companies 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

Notes to financial statements (unaudited) Wells Fargo Common Stock Fund 21

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.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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.

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

22 Wells Fargo Common Stock Fund Notes to financial statements (unaudited)

lowest priority to 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	109,085,114	$	0	$	0	$	109,085,114
Consumer staples		21,420,983		0		0		21,420,983
Energy		94,165,999		0		0		94,165,999
Financials		250,544,718		0		0		250,544,718
Health care		170,822,419		0		0		170,822,419
Industrials		232,070,638		0		0		232,070,638
Information technology		231,123,461		0		0		231,123,461
Materials		73,764,499		0		0		73,764,499
Real estate		49,348,707		0		0		49,348,707
Exchange-traded funds		32,919,971		0		0		32,919,971
Short-term investments
Investment companies		14,869,412		0		0		14,869,412
Investments measured at net asset value*								72,037,786
Total assets	$	1,280,135,921	$	0	$	0	$	1,352,173,707

* 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 $72,037,786 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 March 31, 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 0.80% and declining to 0.63% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.76% of the Fund’s average daily net assets.

Notes to financial statements (unaudited) Wells Fargo Common Stock Fund 23

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 0.45% and declining to 0.30% 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		0.21	%
Class R6		0.03
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.26% for Class A shares, 2.01% for Class C shares, 0.85% for Class R6 shares, 1.10% for Administrator Class shares, and 0.85% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $32,093 certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $5,736 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 March 31, 2017, Funds Distributor received $3,125 from the sale of Class A shares and $10 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2017 were $452,750,640 and $463,545,122, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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.

24 Wells Fargo Common Stock Fund Notes to financial statements (unaudited)

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $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 March 31, 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 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.

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 Common Stock 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 Common Stock 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 Common Stock 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 Common Stock 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.

302887 05-17 SA229/SAR229 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Discovery 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	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	19
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of March 31, 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 Discovery Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Discovery Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Discovery Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Discovery Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Michael T. Smith, CFA^®

Christopher J. Warner, CFA^®

Average annual total returns (%) as of March 31, 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 (WFDAX)	7-31-2007		15.76		9.12		8.29		22.84		10.41		8.94		1.20		1.20
Class C (WDSCX)	7-31-2007		20.91		9.59		8.11		21.91		9.59		8.11		1.95		1.95
Class R6 (WFDRX)	6-28-2013		–		–		–		23.36		10.87		9.37		0.77		0.77
Administrator Class (WFDDX)	4-8-2005		–		–		–		22.93		10.53		9.07		1.12		1.12
Institutional Class (WFDSX)	8-31-2006		–		–		–		23.23		10.81		9.34		0.87		0.87
Russell 2500TM Growth Index4	–		–		–		–		19.77		12.17		8.47		–		–

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Discovery Fund 5

Ten largest holdings (%) as of March 31, 20175
Waste Connections Incorporated	2.89
Take-Two Interactive Software Incorporated	1.94
Berry Plastics Group Incorporated	1.87
Vail Resorts Incorporated	1.86
Allegion plc	1.81
Ultimate Software Group Incorporated	1.79
Bright Horizons Family Solutions Incorporated	1.75
TransUnion	1.74
Masonite International Corporation	1.73
Cinemark Holdings Incorporated	1.72

Sector distribution as of March 31, 2017⁶

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares and includes the higher expenses applicable to the former Investor Class shares. If these expenses had not been included, returns for Class A shares would be higher. Historical performance shown for Class C shares prior to their inception reflects the performance of the former Investor Class shares and has been adjusted to reflect the higher expenses applicable to Class C shares. Historical performance shown for Class R6 shares prior to their inception reflects the performance of Institutional Class shares, and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, the returns for Class R6 shares 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 January 31, 2018, 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 1.22% for Class A, 1.97% for Class C, 0.84% for Class R6, 1.15% for Administrator Class, and 0.89% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  The Russell 2500™ Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. 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 Discovery 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,114.73	$	6.38		1.21	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.90	$	6.09		1.21	%
Class C
Actual	$	1,000.00	$	1,110.68	$	10.31		1.96	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.16	$	9.85		1.96	%
Class R6
Actual	$	1,000.00	$	1,117.18	$	4.12		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.04	$	3.93		0.78	%
Administrator Class
Actual	$	1,000.00	$	1,115.15	$	5.96		1.13	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.30	$	5.69		1.13	%
Institutional Class
Actual	$	1,000.00	$	1,116.85	$	4.64		0.88	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.54	$	4.43		0.88	%

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—March 31, 2017 (unaudited) Wells Fargo Discovery Fund 7

Security name	Shares		Value
Common Stocks: 98.82%
Consumer Discretionary: 14.31%
Auto Components: 1.14%
Tenneco Automotive Incorporated		445,700	$	27,820,594
Distributors: 1.40%
Pool Corporation		285,089		34,019,670
Diversified Consumer Services: 1.75%
Bright Horizons Family Solutions Incorporated †		587,607		42,595,631
Hotels, Restaurants & Leisure: 6.77%
Dave & Buster’s Entertainment Incorporated †		454,494		27,765,038
Norwegian Cruise Line Holdings Limited †		603,100		30,595,263
Six Flags Entertainment Corporation		648,140		38,557,849
Vail Resorts Incorporated		236,114		45,310,277
Wingstop Incorporated «		802,425		22,692,579
				164,921,006
Media: 1.71%
Cinemark Holdings Incorporated		942,605		41,795,106
Specialty Retail: 1.54%
Burlington Stores Incorporated †		386,965		37,647,825
Consumer Staples: 1.17%
Beverages: 1.17%
Constellation Brands Incorporated Class A		175,857		28,501,144
Energy: 0.91%
Oil, Gas & Consumable Fuels: 0.91%
Diamondback Energy Incorporated †		214,065		22,201,751
Financials: 6.13%
Capital Markets: 3.81%
Evercore Partners Incorporated Class A		324,830		25,304,257
Raymond James Financial Incorporated		371,345		28,318,770
SEI Investments Company		775,813		39,132,008
				92,755,035
Consumer Finance: 1.37%
SLM Corporation †		2,767,400		33,485,540
Thrifts & Mortgage Finance: 0.95%
Radian Group Incorporated		1,285,900		23,094,764
Health Care: 13.70%
Biotechnology: 3.03%
Bioverativ Incorporated †		470,000		25,596,200
bluebird bio Incorporated †«		125,400		11,398,860

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

8 Wells Fargo Discovery Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Biotechnology (continued)
Exelixis Incorporated †		490,038	$	10,619,123
Neurocrine Biosciences Incorporated †		102,900		4,455,570
Prothena Corporation plc †«		158,168		8,824,192
Seattle Genetics Incorporated †		121,900		7,662,634
Tesaro Incorporated †«		34,300		5,277,741
				73,834,320
Health Care Equipment & Supplies: 6.03%
Cantel Medical Corporation		347,717		27,852,132
DexCom Incorporated †		334,073		28,306,005
Glaukos Corporation †		356,600		18,293,580
ICU Medical Incorporated †		164,161		25,067,385
Insulet Corporation †		474,500		20,446,205
Integra LifeSciences Holdings Corporation †		641,756		27,037,180
				147,002,487
Health Care Providers & Services: 3.31%
Amedisys Incorporated †		599,729		30,640,155
HealthEquity Incorporated †		329,434		13,984,473
Tivity Health Incorporated †		1,240,569		36,100,558
				80,725,186
Life Sciences Tools & Services: 1.33%
Cambrex Corporation †		587,781		32,357,344
Industrials: 21.60%
Aerospace & Defense: 1.30%
Orbital ATK Incorporated		322,700		31,624,600
Airlines: 1.55%
Spirit Airlines Incorporated †		713,196		37,849,312
Building Products: 4.90%
A.O. Smith Corporation		653,100		33,412,596
Allegion plc		581,053		43,985,712
Masonite International Corporation †		531,047		42,085,475
				119,483,783
Commercial Services & Supplies: 4.57%
Aqua Metals Incorporated †«		354,500		6,926,930
The Brink’s Company		637,400		34,069,030
Waste Connections Incorporated		798,611		70,453,462
				111,449,422
Electrical Equipment: 0.87%
Acuity Brands Incorporated		103,496		21,113,184
Industrial Conglomerates: 0.96%
Carlisle Companies Incorporated		219,479		23,354,760

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Discovery Fund 9

Security name	Shares		Value
Machinery: 1.90%
Energy Recovery Incorporated †«		801,454	$	6,668,097
John Bean Technologies Corporation		451,895		39,744,165
				46,412,262
Professional Services: 1.74%
TransUnion †		1,104,950		42,374,833
Trading Companies & Distributors: 3.81%
GMS Incorporated †		366,000		12,824,640
HD Supply Holdings Incorporated †		999,995		41,124,794
Univar Incorporated †		1,265,200		38,791,032
				92,740,466
Information Technology: 34.84%
Communications Equipment: 2.37%
Finisar Corporation †		991,214		27,099,791
Harris Corporation		276,300		30,743,901
				57,843,692
Electronic Equipment, Instruments & Components: 5.63%
Cognex Corporation		406,090		34,091,256
FLIR Systems Incorporated		776,597		28,174,939
Littelfuse Incorporated		227,835		36,433,095
Universal Display Corporation «		446,700		38,460,870
				137,160,160
Internet Software & Services: 7.46%
CoStar Group Incorporated †		189,449		39,257,622
MercadoLibre Incorporated		188,900		39,946,683
Momo Incorporated ADR †		549,700		18,728,279
Q2 Holdings Incorporated †		916,050		31,924,343
Twilio Incorporated Class A †«		991,100		28,613,057
Yandex NV Class A †		1,060,000		23,245,800
				181,715,784
IT Services: 8.53%
Acxiom Corporation †		1,220,943		34,760,247
EPAM Systems Incorporated †		522,496		39,458,898
Euronet Worldwide Incorporated †		474,482		40,577,701
Square Incorporated Class A †		789,550		13,643,424
Total System Services Incorporated		712,100		38,068,866
WEX Incorporated †		399,300		41,327,550
				207,836,686
Semiconductors & Semiconductor Equipment: 2.00%
Microsemi Corporation †		554,800		28,588,844
Teradyne Incorporated		644,100		20,031,510
				48,620,354

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

10 Wells Fargo Discovery Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name				Shares		Value
Software: 6.90%
Guidewire Software Incorporated †					704,919	$	39,708,087
PTC Incorporated †					681,500		35,812,825
Secureworks Corporation Class A †					193,000		1,833,500
Take-Two Interactive Software Incorporated †					797,600		47,273,752
Ultimate Software Group Incorporated †					223,000		43,531,830
							168,159,994
Technology Hardware, Storage & Peripherals: 1.95%
3D Systems Corporation †«					1,009,700		15,105,112
NCR Corporation †					712,000		32,524,160
							47,629,272
Materials: 3.86%
Chemicals: 0.83%
Albemarle Corporation					191,000		20,177,240
Construction Materials: 1.17%
Vulcan Materials Company					235,900		28,421,232
Containers & Packaging: 1.86%
Berry Plastics Group Incorporated †					935,833		45,453,409
Real Estate: 0.74%
Real Estate Management & Development: 0.74%
CBRE Group Incorporated Class A †					517,700		18,010,783
Telecommunication Services: 1.56%
Diversified Telecommunication Services: 1.56%
Zayo Group Holdings Incorporated †					1,153,705		37,956,895
Total Common Stocks (Cost $1,876,590,588)							2,408,145,526
	Yield
Short-Term Investments: 4.84%
Investment Companies: 4.84%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98	%		90,557,133		90,566,189
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63			27,327,935		27,327,935
Total Short-Term Investments (Cost $117,891,136)							117,894,124

Total investments in securities (Cost $1,994,481,724) *	103.66	%		2,526,039,650
Other assets and liabilities, net	(3.66	)		(89,192,359	)
Total net assets	100.00	%	$	2,436,847,291

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $1,993,862,991 and unrealized gains (losses) consists of:

Gross unrealized gains	$	542,512,109
Gross unrealized losses		(10,335,450	)
Net unrealized gains	$	532,176,659

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

Statement of assets and liabilities—March 31, 2017 (unaudited) Wells Fargo Discovery Fund 11

Assets
Investments
In unaffiliated securities (including $88,402,231 of securities loaned), at value (cost $1,876,590,588)	$	2,408,145,526
In affiliated securities, at value (cost $117,891,136)		117,894,124
Total investments, at value (cost $1,994,481,724)		2,526,039,650
Receivable for investments sold		7,288,024
Receivable for Fund shares sold		3,018,647
Receivable for dividends		586,791
Receivable for securities lending income		81,359
Prepaid expenses and other assets		18,566
Total assets		2,537,033,037
Liabilities
Payable for investments purchased		2,972,456
Payable for Fund shares redeemed		4,217,775
Payable upon receipt of securities loaned		90,561,300
Management fee payable		1,602,591
Distribution fee payable		29,631
Administration fees payable		306,533
Accrued expenses and other liabilities		495,460
Total liabilities		100,185,746
Total net assets	$	2,436,847,291
NET ASSETS CONSIST OF
Paid-in capital	$	1,770,914,580
Accumulated net investment loss		(14,900,025	)
Accumulated net realized gains on investments		149,274,810
Net unrealized gains on investments		531,557,926
Total net assets	$	2,436,847,291
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	593,786,579
Shares outstanding – Class A1		18,028,711
Net asset value per share – Class A		$32.94
Maximum offering price per share – Class A2		$34.95
Net assets – Class C	$	42,430,516
Shares outstanding – Class C1		1,418,813
Net asset value per share – Class C		$29.91
Net assets – Class R6	$	299,979,442
Shares outstanding – Class R61		8,550,392
Net asset value per share – Class R6		$35.08
Net assets – Administrator Class	$	329,822,195
Shares outstanding – Administrator Class1		9,757,802
Net asset value per share – Administrator Class		$33.80
Net assets – Institutional Class	$	1,170,828,559
Shares outstanding – Institutional Class1		33,474,495
Net asset value per share – Institutional Class		$34.98

¹  The Fund has an unlimited number of authorized shares.

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

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

12 Wells Fargo Discovery Fund Statement of operations—six months ended March 31, 2017 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $44,248)	$	6,567,446
Securities lending income, net		286,359
Income from affiliated securities		82,281
Total investment income		6,936,086
Expenses
Management fee		9,135,834
Administration fees
Class A		636,147
Class C		47,432
Class R6		43,966
Administrator Class		229,811
Institutional Class		795,957
Shareholder servicing fees
Class A		757,317
Class C		56,466
Administrator Class		441,163
Distribution fee
Class C		169,399
Custody and accounting fees		76,261
Professional fees		21,638
Registration fees		106,605
Shareholder report expenses		96,642
Trustees’ fees and expenses		12,270
Other fees and expenses		34,386
Total expenses		12,661,294
Less: Fee waivers and/or expense reimbursements		(55	)
Net expenses		12,661,239
Net investment loss		(5,725,153	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		195,573,039
Affiliated securities		1,901
Net realized gains on investments		195,574,940
Net change in unrealized gains (losses) on:
Unaffiliated securities		78,959,655
Affiiliated securities		2,988
Net change in unrealized gains (losses) on investments		78,962,643
Net realized and unrealized gains (losses) on investments		274,537,583
Net increase in net assets resulting from operations	$	268,812,430

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

Statement of changes in net assets Wells Fargo Discovery Fund 13

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment loss				$	(5,725,153	)				$	(13,341,712	)
Net realized gains (losses) on investments					195,574,940						(6,021,855	)
Net change in unrealized gains (losses) on investments					78,962,643						207,908,464
Net increase in net assets resulting from operations					268,812,430						188,544,897
Distributions to shareholders from
Net realized gains
Class A					(8,136,174	)					(67,195,832	)
Class C					(671,858	)					(5,778,904	)
Class R6					(3,804,488	)					(23,478,672	)
Administrator Class					(4,526,561	)					(47,459,845	)
Institutional Class					(16,230,955	)					(114,235,168	)
Total distributions to shareholders					(33,370,036	)					(258,148,421	)
	Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		671,506			21,055,184			18,576,523			573,833,981
Class C		26,339			748,705			85,248			2,195,640
Class R6		648,584			21,307,616			2,705,304			81,981,174
Administrator Class		487,685			15,602,440			1,929,217			57,133,826
Institutional Class		3,392,262			112,241,606			5,696,148			169,010,558
Investor Class		N/A			N/A			55,579	1		1,728,387	1
					170,955,551						885,883,566
Reinvestment of distributions
Class A		255,886			7,873,622			2,330,578			65,162,949
Class C		19,199			537,750			183,951			4,722,020
Class R6		116,203			3,804,488			793,466			23,478,672
Administrator Class		142,683			4,504,510			1,650,359			47,282,773
Institutional Class		471,707			15,401,227			3,798,743			112,214,868
					32,121,597						252,861,282
Payment for shares redeemed
Class A		(4,337,115	)		(134,055,303	)		(9,136,801	)		(255,432,871	)
Class C		(440,024	)		(12,369,816	)		(820,726	)		(21,433,438	)
Class R6		(1,653,438	)		(53,428,408	)		(2,598,689	)		(77,229,246	)
Administrator Class		(3,934,387	)		(124,297,992	)		(8,985,182	)		(255,827,949	)
Institutional Class		(11,887,198	)		(386,066,608	)		(12,826,340	)		(384,667,531	)
Investor Class		N/A			N/A			(17,797,151	)1		(549,387,039	)1
					(710,218,127	)					(1,543,978,074	)
Net decrease in net assets resulting from capital share transactions					(507,140,979	)					(405,233,226	)
Total decrease in net assets					(271,698,585	)					(474,836,750	)
Net assets
Beginning of period					2,708,545,876						3,183,382,626
End of period				$	2,436,847,291					$	2,708,545,876
Accumulated net investment loss				$	(14,900,025	)				$	(9,174,872	)

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

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

14 Wells Fargo Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$29.94			$30.48			$32.35			$33.50			$26.89			$21.20
Net investment loss		(0.10	)1		(0.18	)1		(0.24	)		(0.30	)		(0.08	)1		(0.14	)1
Net realized and unrealized gains (losses) on investments		3.51			2.23			0.96			1.36			8.14			6.82
Total from investment operations		3.41			2.05			0.72			1.06			8.06			6.68
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)		(0.99	)
Net asset value, end of period		$32.94			$29.94			$30.48			$32.35			$33.50			$26.89
Total return2		11.47	%		7.33	%		2.09	%		3.15	%		31.86	%		32.05	%
Ratios to average net assets (annualized)
Gross expenses		1.21	%		1.20	%		1.23	%		1.25	%		1.27	%		1.29	%
Net expenses		1.21	%		1.20	%		1.21	%		1.22	%		1.22	%		1.22	%
Net investment loss		(0.66	)%		(0.64	)%		(0.64	)%		(0.95	)%		(0.29	)%		(0.53	)%
Supplemental data
Portfolio turnover rate		47	%		78	%		87	%		84	%		86	%		104	%
Net assets, end of period (000s omitted)		$593,787			$641,786			$294,661			$335,221			$239,506			$114,882

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 Discovery Fund 15

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$27.32			$28.24			$30.37			$31.81			$25.79			$20.51
Net investment loss		(0.20	)1		(0.37	)1		(0.43	)1		(0.35	)		(0.30	)1		(0.31	)1
Net realized and unrealized gains (losses) on investments		3.20			2.04			0.89			1.12			7.77			6.58
Total from investment operations		3.00			1.67			0.46			0.77			7.47			6.27
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)		(0.99	)
Net asset value, end of period		$29.91			$27.32			$28.24			$30.37			$31.81			$25.79
Total return2		11.07	%		6.51	%		1.35	%		2.33	%		30.89	%		31.10	%
Ratios to average net assets (annualized)
Gross expenses		1.96	%		1.95	%		1.98	%		2.00	%		2.02	%		2.04	%
Net expenses		1.96	%		1.95	%		1.96	%		1.97	%		1.97	%		1.97	%
Net investment loss		(1.41	)%		(1.41	)%		(1.39	)%		(1.70	)%		(1.08	)%		(1.28	)%
Supplemental data
Portfolio turnover rate		47	%		78	%		87	%		84	%		86	%		104	%
Net assets, end of period (000s omitted)		$42,431			$49,538			$66,772			$84,585			$48,768			$16,803

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.

16 Wells Fargo Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS R6				2016			2015			2014			20131
Net asset value, beginning of period		$31.80			$32.08			$33.78			$34.73			$31.03
Net investment income (loss)		(0.02	)		(0.07	)		(0.07	)		(0.17	)		0.02	2
Net realized and unrealized gains (losses) on investments		3.71			2.38			0.96			1.43			3.68
Total from investment operations		3.69			2.31			0.89			1.26			3.70
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		0.00
Net asset value, end of period		$35.08			$31.80			$32.08			$33.78			$34.73
Total return3		11.72	%		7.77	%		2.53	%		3.60	%		11.96	%
Ratios to average net assets (annualized)
Gross expenses		0.78	%		0.77	%		0.76	%		0.77	%		0.77	%
Net expenses		0.78	%		0.77	%		0.76	%		0.77	%		0.77	%
Net investment income (loss)		(0.23	)%		(0.22	)%		(0.21	)%		(0.45	)%		0.30	%
Supplemental data
Portfolio turnover rate		47	%		78	%		87	%		84	%		86	%
Net assets, end of period (000s omitted)		$299,979			$300,118			$273,941			$221,043			$28

¹  For the period from June 28, 2013 (commencement of class operations) to September 30, 2013

²  Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Discovery Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$30.70			$31.17			$32.99			$34.08			$27.30			$21.50
Net investment loss		(0.09	)1		(0.17	)1		(0.20	)		(0.27	)1		(0.04	)		(0.12	)1
Net realized and unrealized gains (losses) on investments		3.60			2.29			0.97			1.39			8.27			6.91
Total from investment operations		3.51			2.12			0.77			1.12			8.23			6.79
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)		(0.99	)
Net asset value, end of period		$33.80			$30.70			$31.17			$32.99			$34.08			$27.30
Total return2		11.51	%		7.40	%		2.24	%		3.25	%		32.01	%		32.12	%
Ratios to average net assets (annualized)
Gross expenses		1.13	%		1.12	%		1.09	%		1.08	%		1.10	%		1.13	%
Net expenses		1.13	%		1.12	%		1.09	%		1.08	%		1.10	%		1.13	%
Net investment loss		(0.58	)%		(0.58	)%		(0.52	)%		(0.81	)%		(0.13	)%		(0.45	)%
Supplemental data
Portfolio turnover rate		47	%		78	%		87	%		84	%		86	%		104	%
Net assets, end of period (000s omitted)		$329,822			$400,997			$575,568			$687,537			$648,228			$478,673

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.

18 Wells Fargo Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$31.72			$32.04			$33.76			$34.74			$27.73			$21.76
Net investment income (loss)		(0.05	)1		(0.10	)		(0.09	)		(0.20	)		0.01			(0.07	)
Net realized and unrealized gains (losses) on investments		3.72			2.37			0.96			1.43			8.45			7.03
Total from investment operations		3.67			2.27			0.87			1.23			8.46			6.96
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)		(0.99	)
Net asset value, end of period		$34.98			$31.72			$32.04			$33.76			$34.74			$27.73
Total return2		11.68	%		7.68	%		2.47	%		3.51	%		32.36	%		32.53	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.87	%		0.82	%		0.82	%		0.84	%		0.86	%
Net expenses		0.88	%		0.87	%		0.82	%		0.82	%		0.84	%		0.86	%
Net investment income (loss)		(0.33	)%		(0.32	)%		(0.26	)%		(0.54	)%		0.11	%		(0.19	)%
Supplemental data
Portfolio turnover rate		47	%		78	%		87	%		84	%		86	%		104	%
Net assets, end of period (000s omitted)		$1,170,829			$1,316,107			$1,436,125			$1,396,603			$988,615			$524,506

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 Discovery 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Discovery 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.

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 companies 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

20 Wells Fargo Discovery Fund Notes to financial statements (unaudited)

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.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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

Deferred post-October capital losses	Late-year ordinary losses deferred
Short-term
$(2,518,523)	$(9,174,473)

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

Notes to financial statements (unaudited) Wells Fargo Discovery Fund 21

lowest priority to 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	348,799,832	$	0	$	0	$	348,799,832
Consumer staples		28,501,144		0		0		28,501,144
Energy		22,201,751		0		0		22,201,751
Financials		149,335,339		0		0		149,335,339
Health care		333,919,337		0		0		333,919,337
Industrials		526,402,622		0		0		526,402,622
Information technology		848,965,942		0		0		848,965,942
Materials		94,051,881		0		0		94,051,881
Real estate		18,010,783		0		0		18,010,783
Telecommunication services		37,956,895		0		0		37,956,895
Short-term investments
Investment companies		27,327,935		0		0		27,327,935
Investments measured at net asset value*								90,566,189
Total assets	$	2,435,473,461	$	0	$	0	$	2,526,039,650

* 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 $90,566,189 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 March 31, 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 0.80% and declining to 0.63% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.72% of the Fund’s average daily net assets.

22 Wells Fargo Discovery Fund Notes to financial statements (unaudited)

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 0.45% and declining to 0.35% as the average daily net assets of the Fund increase

Administration fees

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

	Class-level administration fee
Class A, Class C		0.21	%
Class R6		0.03
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.22% for Class A shares, 1.97% for Class C shares, 0.84% for Class R6 shares, 1.15% for Administrator Class shares, and 0.89% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $2,453 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $31,004 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 March 31, 2017, Funds Distributor received $2,986 from the sale of Class A shares and $50 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2017 were $1,192,830,450 and $1,661,485,300, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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.

Notes to financial statements (unaudited) Wells Fargo Discovery Fund 23

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 March 31, 2017, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

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 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.

24 Wells Fargo Discovery 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 Discovery Fund 25

BOARD OF TRUSTEES AND OFFICERS

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

26 Wells Fargo Discovery 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 Discovery Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

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

302888 05-17 SA230/SAR230 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Enterprise 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	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	19
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of March 31, 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 Enterprise Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Enterprise Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Enterprise Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Enterprise Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Michael T. Smith, CFA^®

Christopher J. Warner, CFA^®

Average annual total returns (%) as of March 31, 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 (SENAX)	2-24-2000		13.53		8.47		6.16		20.46		9.76		6.79		1.26		1.18
Class C (WENCX)	3-31-2008		18.54		8.94		6.00		19.54		8.94		6.00		2.01		1.93
Class R6 (WENRX)	10-31-2014		–		–		–		20.93		10.15		7.23		0.83		0.80
Administrator Class (SEPKX)	8-30-2002		–		–		–		20.55		9.87		6.96		1.18		1.10
Institutional Class (WFEIX)	6-30-2003		–		–		–		20.87		10.12		7.22		0.93		0.85
Russell Midcap® Growth Index4	–		–		–		–		14.07		11.95		8.13		–		–

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Enterprise Fund 5

Ten largest holdings (%) as of March 31, 20175
Waste Connections Incorporated	2.85
O’Reilly Automotive Incorporated	2.31
Electronic Arts Incorporated	2.22
Fidelity National Information Services Incorporated	2.16
Intercontinental Exchange Incorporated	2.11
Intuitive Surgical Incorporated	2.11
Total System Services Incorporated	1.88
Delphi Automotive plc	1.86
Berry Plastics Group Incorporated	1.80
Vail Resorts Incorporated	1.78

Sector distribution as of March 31, 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 the expenses of the Advisor Class shares. Historical performance shown for Class B shares prior to their inception reflects the performance of Class C shares. Historical performance shown for Class C shares prior to their inception reflects the performance of the former Investor Class shares and has been adjusted to reflect the higher expenses applicable to Class C shares. Historical performance shown for Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and is not adjusted to reflect the expenses of Class R6. If these expenses had been included, returns for Class R6 shares 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 January 31, 2018, 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  The Russell Midcap^® Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000^® Growth index. You cannot invest directly in an index.

⁵  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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

6 Wells Fargo Enterprise 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,094.95	$	6.16		1.18	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.05	$	5.94		1.18	%
Class C
Actual	$	1,000.00	$	1,090.99	$	10.06		1.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.31	$	9.70		1.93	%
Class R6
Actual	$	1,000.00	$	1,097.08	$	4.18		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.94	$	4.03		0.80	%
Administrator Class
Actual	$	1,000.00	$	1,095.47	$	5.75		1.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.45	$	5.54		1.10	%
Institutional Class
Actual	$	1,000.00	$	1,096.98	$	4.44		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.69	$	4.28		0.85	%

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—March 31, 2017 (unaudited) Wells Fargo Enterprise Fund 7

Security name	Shares		Value
Common Stocks: 99.08%
Consumer Discretionary: 16.62%
Auto Components: 1.86%
Delphi Automotive plc		151,085	$	12,160,832
Distributors: 1.19%
Pool Corporation		65,500		7,816,115
Diversified Consumer Services: 1.31%
Bright Horizons Family Solutions Incorporated †		117,900		8,546,571
Hotels, Restaurants & Leisure: 4.73%
Royal Caribbean Cruises Limited		90,900		8,918,199
Six Flags Entertainment Corporation		174,100		10,357,209
Vail Resorts Incorporated		60,517		11,613,212
				30,888,620
Internet & Direct Marketing Retail: 0.50%
Ctrip.com International Limited ADR †		66,100		3,248,815
Media: 3.12%
Cinemark Holdings Incorporated		240,825		10,678,181
Liberty Broadband Corporation Class C †		112,100		9,685,440
				20,363,621
Specialty Retail: 3.91%
Burlington Stores Incorporated †		107,300		10,439,217
O’Reilly Automotive Incorporated †		56,000		15,111,040
				25,550,257
Consumer Staples: 2.33%
Beverages: 2.33%
Constellation Brands Incorporated Class A		55,000		8,913,850
Monster Beverage Corporation †		136,200		6,288,354
				15,202,204
Energy: 0.73%
Oil, Gas & Consumable Fuels: 0.73%
Diamondback Energy Incorporated †		45,900		4,760,519
Financials: 7.67%
Capital Markets: 6.25%
Intercontinental Exchange Incorporated		230,725		13,813,506
Raymond James Financial Incorporated		108,600		8,281,836
S&P Global Incorporated		67,641		8,843,384
SEI Investments Company		196,000		9,886,240
				40,824,966

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

8 Wells Fargo Enterprise Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Consumer Finance: 1.42%
SLM Corporation †		771,000	$	9,329,100
Health Care: 9.20%
Biotechnology: 2.97%
BioMarin Pharmaceutical Incorporated †		70,193		6,161,542
Bioverativ Incorporated †		126,000		6,861,960
Incyte Corporation †		37,300		4,985,891
Seattle Genetics Incorporated †		21,800		1,370,348
				19,379,741
Health Care Equipment & Supplies: 5.61%
Boston Scientific Corporation †		383,500		9,537,645
DexCom Incorporated †		82,800		7,015,644
Integra LifeSciences Holdings Corporation †		150,200		6,327,926
Intuitive Surgical Incorporated †		18,000		13,796,460
				36,677,675
Pharmaceuticals: 0.62%
Perrigo Company plc «		61,300		4,069,707
Industrials: 19.06%
Airlines: 1.63%
Spirit Airlines Incorporated †		200,500		10,640,535
Building Products: 5.04%
Allegion plc		152,700		11,559,390
Johnson Controls International plc		259,541		10,931,867
Masonite International Corporation †		131,803		10,445,388
				32,936,645
Commercial Services & Supplies: 2.85%
Waste Connections Incorporated		211,093		18,622,624
Electrical Equipment: 2.25%
Acuity Brands Incorporated		37,834		7,718,136
Rockwell Automation Incorporated		44,900		6,991,379
				14,709,515
Industrial Conglomerates: 0.96%
Carlisle Companies Incorporated		59,233		6,302,984
Machinery: 1.50%
John Bean Technologies Corporation		111,459		9,802,819
Professional Services: 1.74%
TransUnion †		296,177		11,358,388

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Enterprise Fund 9

Security name	Shares		Value
Trading Companies & Distributors: 3.09%
HD Supply Holdings Incorporated †		249,400	$	10,256,575
Univar Incorporated †		323,300		9,912,378
				20,168,953
Information Technology: 34.98%
Communications Equipment: 2.35%
Finisar Corporation †		257,300		7,034,582
Harris Corporation		74,700		8,311,869
				15,346,451
Electronic Equipment, Instruments & Components: 2.46%
FLIR Systems Incorporated		209,700		7,607,916
Universal Display Corporation «		98,400		8,472,240
				16,080,156
Internet Software & Services: 3.16%
CoStar Group Incorporated †		47,643		9,872,582
MercadoLibre Incorporated		51,200		10,827,264
				20,699,846
IT Services: 10.54%
Acxiom Corporation †		318,700		9,073,389
EPAM Systems Incorporated †		123,119		9,297,947
Euronet Worldwide Incorporated †		115,600		9,886,112
Fidelity National Information Services Incorporated		177,200		14,108,664
Square Incorporated Class A †		206,200		3,563,136
Total System Services Incorporated		229,900		12,290,454
WEX Incorporated †		102,800		10,639,800
				68,859,502
Semiconductors & Semiconductor Equipment: 4.65%
Broadcom Limited		27,400		5,999,504
Micron Technology Incorporated †		254,600		7,357,940
NVIDIA Corporation		61,100		6,655,623
NXP Semiconductors NV †		48,400		5,009,400
Teradyne Incorporated		172,100		5,352,310
				30,374,777
Software: 10.58%
Activision Blizzard Incorporated		192,000		9,573,120
Electronic Arts Incorporated †		162,200		14,520,144
Guidewire Software Incorporated †		163,900		9,232,487
Nintendo Company Limited		265,500		7,694,509
PTC Incorporated †		130,400		6,852,520
ServiceNow Incorporated †		115,850		10,133,400
Ultimate Software Group Incorporated †		57,000		11,126,970
				69,133,150
Technology Hardware, Storage & Peripherals: 1.24%
NCR Corporation †		177,200		8,094,496

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

10 Wells Fargo Enterprise Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name				Shares		Value
Materials: 5.66%
Chemicals: 2.13%
Albemarle Corporation					50,300	$	5,313,692
The Sherwin-Williams Company					27,800		8,623,282
							13,936,974
Construction Materials: 1.73%
Vulcan Materials Company					93,600		11,276,928
Containers & Packaging: 1.80%
Berry Plastics Group Incorporated †					241,900		11,749,083
Real Estate: 1.34%
Equity REITs: 1.34%
SBA Communications Corporation †					73,000		8,787,010
Telecommunication Services: 1.49%
Diversified Telecommunication Services: 1.49%
Zayo Group Holdings Incorporated †					295,699		9,728,495
Total Common Stocks (Cost $521,670,885)							647,428,074
	Yield
Short-Term Investments: 1.50%
Investment Companies: 1.50%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98	%		4,004,650		4,005,050
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63			5,809,204		5,809,204
Total Short-Term Investments (Cost $9,814,254)							9,814,254

Total investments in securities (Cost $531,485,139) *	100.58	%		657,242,328
Other assets and liabilities, net	(0.58	)		(3,810,096	)
Total net assets	100.00	%	$	653,432,232

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $531,429,420 and unrealized gains (losses) consists of:

Gross unrealized gains	$	129,459,826
Gross unrealized losses		(3,646,918	)
Net unrealized gains	$	125,812,908

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

Statement of assets and liabilities—March 31, 2017 (unaudited) Wells Fargo Enterprise Fund 11

Assets
Investments
In unaffiliated securities, at value (including $3,917,298 of securities loaned), at value (cost $521,670,885)	$	647,428,074
In affiliated securities, at value (cost $9,814,254)		9,814,254
Total investments, at value (cost $531,485,139)		657,242,328
Cash		39,189
Receivable for investments sold		1,114,021
Receivable for Fund shares sold		103,614
Receivable for dividends		325,590
Receivable for securities lending income		3,339
Prepaid expenses and other assets		92,566
Total assets		658,920,647
Liabilities
Payable for investments purchased		350,601
Payable for Fund shares redeemed		376,283
Payable upon receipt of securities loaned		4,005,023
Management fee payable		395,369
Distribution fees payable		5,976
Administration fees payable		114,494
Accrued expenses and other liabilities		240,669
Total liabilities		5,488,415
Total net assets	$	653,432,232
NET ASSETS CONSIST OF
Paid-in capital	$	513,382,633
Accumulated net investment loss		(3,481,610	)
Accumulated net realized gains on investments		17,774,020
Net unrealized gains on investments		125,757,189
Total net assets	$	653,432,232
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	554,120,943
Shares outstanding – Class A1		12,604,429
Net asset value per share – Class A		$43.96
Maximum offering price per share – Class A2		$46.64
Net assets – Class C	$	8,854,708
Shares outstanding – Class C1		222,802
Net asset value per share – Class C		$39.74
Net assets – Class R6	$	32,376,926
Shares outstanding – Class R61		677,182
Net asset value per share – Class R6		$47.81
Net assets – Administrator Class	$	5,280,751
Shares outstanding – Administrator Class1		114,712
Net asset value per share – Administrator Class		$46.03
Net assets – Institutional Class	$	52,798,904
Shares outstanding – Institutional Class1		1,105,948
Net asset value per share – Institutional Class		$47.74

¹  The Fund has an unlimited number of authorized shares.

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

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

12 Wells Fargo Enterprise Fund Statement of operations—six months ended March 31, 2017 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $11,114)	$	2,320,583
Income from affiliated securities		13,570
Securities lending income, net		8,961
Total investment income		2,343,114
Expenses
Management fee		2,360,725
Administration fees
Class A		561,560
Class B		104	1
Class C		9,322
Class R6		4,576
Administrator Class		3,132
Institutional Class		35,699
Shareholder servicing fees
Class A		668,524
Class B		123	1
Class C		11,098
Administrator Class		6,023
Distribution fees
Class B		370	1
Class C		33,294
Custody and accounting fees		30,938
Professional fees		21,077
Registration fees		53,492
Shareholder report expenses		48,101
Trustees’ fees and expenses		7,495
Other fees and expenses		9,763
Total expenses		3,865,416
Less: Fee waivers and/or expense reimbursements		(241,420	)
Net expenses		3,623,996
Net investment loss		(1,280,882	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		28,362,092
Affiliated securities		27
Net realized gains on investments		28,362,119
Net change in unrealized gains (losses) on investments		30,903,498
Net realized and unrealized gains (losses) on investments		59,265,617
Net increase in net assets resulting from operations	$	57,984,735

¹  For the period from October 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 Enterprise Fund 13

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment loss				$	(1,280,882	)				$	(3,186,682	)
Net realized gains on investments					28,362,119						17,584,427
Net change in unrealized gains (losses) on investments					30,903,498						38,732,302
Net increase in net assets resulting from operations					57,984,735						53,130,047
Distributions to shareholders from
Net realized gains
Class A					(23,114,697	)					(43,636,386	)
Class B					0	1					(61,455	)
Class C					(425,970	)					(809,467	)
Class R6					(1,209,334	)					(148,611	)
Administrator Class					(197,246	)					(262,668	)
Institutional Class					(2,319,994	)					(5,679,281	)
Total distributions to shareholders					(27,267,241	)					(50,597,868	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		114,966			4,803,472			4,522,822			197,186,460
Class B		0	1		0	1		1			16
Class C		8,371			317,602			23,985			869,811
Class R6		27,261			1,234,486			691,533			29,003,966
Administrator Class		14,376			635,752			47,307			1,846,716
Institutional Class		122,496			5,602,277			292,382			12,703,511
Investor Class		N/A			N/A			4,864	2		207,062	2
					12,593,589						241,817,542
Reinvestment of distributions
Class A		533,814			21,805,828			1,043,906			41,244,748
Class B		0	1		0	1		1,651			59,782
Class C		10,964			405,900			21,345			773,309
Class R6		27,249			1,209,334			3,488			148,611
Administrator Class		4,559			195,026			6,238			257,327
Institutional Class		51,089			2,264,283			120,020			5,110,433
					25,880,371						47,594,210
Payment for shares redeemed
Class A		(969,556	)		(40,474,387	)		(1,489,094	)		(59,409,799	)
Class B		(9,343	)1		(353,582	)1		(15,187	)		(564,158	)
Class C		(36,708	)		(1,404,599	)		(47,670	)		(1,691,275	)
Class R6		(35,516	)		(1,622,642	)		(37,369	)		(1,612,164	)
Administrator Class		(11,329	)		(493,700	)		(27,720	)		(1,163,795	)
Institutional Class		(426,145	)		(19,142,172	)		(998,881	)		(43,244,941	)
Investor Class		N/A			N/A			(4,428,901	)2		(190,508,618	)2
					(63,491,082	)					(298,194,750	)
Net decrease in net assets resulting from capital share transactions					(25,017,122	)					(8,782,998	)
Total increase (decrease) in net assets					5,700,372						(6,250,819	)
Net assets
Beginning of period					647,731,860						653,982,679
End of period				$	653,432,232					$	647,731,860
Accumulated net investment loss				$	(3,481,610	)				$	(2,200,728	)

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

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

14 Wells Fargo Enterprise Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$41.94			$41.90			$47.93			$49.54			$37.67			$29.10
Net investment income (loss)		(0.09	)		(0.21	)1		(0.29	)		(0.43	)1		0.01	1		(0.18	)
Net realized and unrealized gains (losses) on investments		3.94			3.61			0.18			3.00			11.86			8.75
Total from investment operations		3.85			3.40			(0.11	)		2.57			11.87			8.57
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00			0.00
Net asset value, end of period		$43.96			$41.94			$41.90			$47.93			$49.54			$37.67
Total return2		9.50	%		8.63	%		(0.67	)%		5.27	%		31.55	%		29.46	%
Ratios to average net assets (annualized)
Gross expenses		1.26	%		1.26	%		1.29	%		1.29	%		1.30	%		1.29	%
Net expenses		1.18	%		1.18	%		1.18	%		1.18	%		1.18	%		1.18	%
Net investment income (loss)		(0.44	)%		(0.52	)%		(0.60	)%		(0.87	)%		0.01	%		(0.49	)%
Supplemental data
Portfolio turnover rate		48	%		99	%		101	%		98	%		91	%		102	%
Net assets, end of period (000s omitted)		$554,121			$542,077			$370,743			$417,971			$427,860			$359,068

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 Enterprise Fund 15

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$38.23			$38.75			$45.07			$47.14			$36.11			$28.10
Net investment loss		(0.23	)1		(0.47	)1		(0.59	)1		(0.75	)1		(0.29	)1		(0.42	)1
Net realized and unrealized gains (losses) on investments		3.57			3.31			0.19			2.86			11.32			8.43
Total from investment operations		3.34			2.84			(0.40	)		2.11			11.03			8.01
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00			0.00
Net asset value, end of period		$39.74			$38.23			$38.75			$45.07			$47.14			$36.11
Total return2		9.10	%		7.80	%		(1.41	)%		4.49	%		30.55	%		28.51	%
Ratios to average net assets (annualized)
Gross expenses		2.01	%		2.01	%		2.04	%		2.04	%		2.05	%		2.04	%
Net expenses		1.93	%		1.93	%		1.93	%		1.93	%		1.93	%		1.93	%
Net investment loss		(1.19	)%		(1.28	)%		(1.36	)%		(1.62	)%		(0.72	)%		(1.24	)%
Supplemental data
Portfolio turnover rate		48	%		99	%		101	%		98	%		91	%		102	%
Net assets, end of period (000s omitted)		$8,855			$9,181			$9,399			$9,658			$8,483			$7,508

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.

16 Wells Fargo Enterprise Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS R6				2016			20151
Net asset value, beginning of period		$45.37			$44.89			$52.65
Net investment loss		(0.01	)		(0.06	)2		(0.08	)
Net realized and unrealized gains (losses) on investments		4.28			3.90			(1.76	)
Total from investment operations		4.27			3.84			(1.84	)
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)
Net asset value, end of period		$47.81			$45.37			$44.89
Total return3		9.71	%		9.06	%		(3.84	)%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.83	%		0.81	%
Net expenses		0.80	%		0.80	%		0.80	%
Net investment loss		(0.07	)%		(0.14	)%		(0.19	)%
Supplemental data
Portfolio turnover rate		48	%		99	%		101	%
Net assets, end of period (000s omitted)		$32,377			$29,861			$24

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

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 Enterprise Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$43.81			$43.58			$49.54			$51.03			$38.77			$29.93
Net investment income (loss)		(0.08	)1		(0.18	)1		(0.23	)1		(0.37	)1		0.02	1		(0.16	)1
Net realized and unrealized gains (losses) on investments		4.13			3.77			0.19			3.06			12.24			9.00
Total from investment operations		4.05			3.59			(0.04	)		2.69			12.26			8.84
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00			0.00
Net asset value, end of period		$46.03			$43.81			$43.58			$49.54			$51.03			$38.77
Total return2		9.55	%		8.74	%		(0.46	)%		5.33	%		31.62	%		29.54	%
Ratios to average net assets (annualized)
Gross expenses		1.18	%		1.15	%		1.09	%		1.12	%		1.13	%		1.12	%
Net expenses		1.10	%		1.07	%		1.07	%		1.09	%		1.11	%		1.12	%
Net investment income (loss)		(0.36	)%		(0.41	)%		(0.47	)%		(0.74	)%		0.05	%		(0.46	)%
Supplemental data
Portfolio turnover rate		48	%		99	%		101	%		98	%		91	%		102	%
Net assets, end of period (000s omitted)		$5,281			$4,693			$3,542			$44,760			$10,046			$6,757

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.

18 Wells Fargo Enterprise Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$45.32			$44.87			$50.77			$52.07			$39.46			$30.38
Net investment income (loss)		(0.02	)1		(0.09	)1		(0.13	)1		(0.28	)1		0.18	1		(0.06	)1
Net realized and unrealized gains (losses) on investments		4.27			3.90			0.15			3.16			12.43			9.14
Total from investment operations		4.25			3.81			0.02			2.88			12.61			9.08
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00			0.00
Net asset value, end of period		$47.74			$45.32			$44.87			$50.77			$52.07			$39.46
Total return2		9.70	%		8.97	%		(0.32	)%		5.61	%		31.96	%		29.89	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.93	%		0.88	%		0.86	%		0.87	%		0.86	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income (loss)		(0.09	)%		(0.21	)%		(0.27	)%		(0.54	)%		0.41	%		(0.17	)%
Supplemental data
Portfolio turnover rate		48	%		99	%		101	%		98	%		91	%		102	%
Net assets, end of period (000s omitted)		$52,799			$61,563			$87,279			$76,790			$81,021			$93,367

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 Enterprise 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Enterprise 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 were converted to Class A shares and are no longer offered by the Fund. 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.

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 companies 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

20 Wells Fargo Enterprise Fund Notes to financial statements (unaudited)

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.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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 September 30, 2016, the Fund had a qualified late-year ordinary loss of $2,178,411 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 unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy

Notes to financial statements (unaudited) Wells Fargo Enterprise Fund 21

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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	108,574,831	$	0	$	0	$	108,574,831
Consumer staples		15,202,204		0		0		15,202,204
Energy		4,760,519		0		0		4,760,519
Financials		50,154,066		0		0		50,154,066
Health care		60,127,123		0		0		60,127,123
Industrials		124,542,463		0		0		124,542,463
Information technology		220,893,869		7,694,509		0		228,588,378
Materials		36,962,985		0		0		36,962,985
Real estate		8,787,010		0		0		8,787,010
Telecommunication services		9,728,495		0		0		9,728,495
Short-term investments
Investment companies		5,809,204		0		0		5,809,204
Investments measured at net asset value*								4,005,050
Total assets	$	645,542,769	$	7,694,509	$	0	$	657,242,328

* 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 $4,005,050 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 March 31, 2017, Common stocks with a market value of $7,694,509 were transferred from Level 1 to Level 2 because of a decrease in the market activity of this security. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo, 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 0.75% and declining to 0.63% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.74% of the Fund’s average daily net assets.

22 Wells Fargo Enterprise Fund Notes to financial statements (unaudited)

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 0.45% and declining to 0.30% 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		0.21	%
Class R6		0.03
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.18% for Class A shares, 1.93% for Class C shares, 0.80% for Class R6 shares, 1.10% for Administrator Class shares, and 0.85% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $5,080 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $6,888 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 March 31, 2017, Funds Distributor received $1,564 from the sale of Class A shares and $67 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

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

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2017 were $300,723,940 and $355,865,363, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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.

Notes to financial statements (unaudited) Wells Fargo Enterprise Fund 23

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 March 31, 2017, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

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 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.

24 Wells Fargo Enterprise 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 Enterprise Fund 25

BOARD OF TRUSTEES AND OFFICERS

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

26 Wells Fargo Enterprise 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 Enterprise Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —�� Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

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

302889 05-17 SA231/SAR231 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Opportunity 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	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of March 31, 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 Opportunity Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Opportunity Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Opportunity Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Opportunity Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher G. Miller, CFA^®‡

Ann M. Miletti

Average annual total returns (%) as of March 31, 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 (SOPVX)	2-24-2000		9.41		9.16		5.87		16.07		10.46		6.50		1.21		1.21
Class B (SOPBX)*	8-26-2011		10.20		9.35		5.78		15.20		9.63		5.78		1.96		1.96
Class C (WFOPX)	3-31-2008		14.20		9.63		5.70		15.20		9.63		5.70		1.96		1.96
Administrator Class (WOFDX)	8-30-2002		–		–		–		16.34		10.71		6.74		1.13		1.00
Institutional Class (WOFNX)	7-30-2010		–		–		–		16.64		10.98		6.91		0.88		0.75
Russell 3000® Index4	–		–		–		–		18.07		13.18		7.54		–		–

* At the close of business on May 5, 2017, existing Class B shareholders were converted to Class A shareholders. Effective May 6, 2017, Class B shares are no longer offered by the Fund.

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Opportunity Fund 5

Ten largest holdings (%) as of March 31, 20175
Apple Incorporated	3.44
Alphabet Incorporated Class C	2.86
Johnson Controls International plc	2.54
PNC Financial Services Group Incorporated	2.19
Twenty-First Century Fox Incorporated Class B	2.06
Medtronic plc	1.90
Starbucks Corporation	1.89
Bio-Rad Laboratories Incorporated Class A	1.80
Chubb Limited	1.79
Comcast Corporation Class A	1.78

Sector distribution as of March 31, 2017⁶

^‡  Mr. Miller became the portfolio manager of the Fund on March 1, 2017.

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 the Class A shares through June 19, 2008, includes the expenses of Advisor Class shares. Historical performance shown for Class B shares prior to their inception reflects the performance of Class C shares. Historical performance shown for Class C shares prior to their inception reflects the performance of Class A shares and has been adjusted to reflect the higher expenses applicable to Class C shares. Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Administrator Class shares, and includes the higher expenses applicable to Administrator Class shares. If these expenses had not been included, returns for Institutional Class shares 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 January 31, 2018, 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

⁴  The Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

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 Opportunity 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,092.75	$	6.31		1.21	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.90	$	6.09		1.21	%
Class B
Actual	$	1,000.00	$	1,088.64	$	10.21		1.96	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.16	$	9.85		1.96	%
Class C
Actual	$	1,000.00	$	1,088.58	$	10.21		1.96	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.16	$	9.85		1.96	%
Administrator Class
Actual	$	1,000.00	$	1,093.99	$	5.22		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.95	$	5.04		1.00	%
Institutional Class
Actual	$	1,000.00	$	1,095.29	$	3.92		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.19	$	3.78		0.75	%

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—March 31, 2017 (unaudited) Wells Fargo Opportunity Fund 7

Security name	Shares		Value
Common Stocks: 99.28%
Consumer Discretionary: 11.72%
Hotels, Restaurants & Leisure: 2.96%
Royal Caribbean Cruises Limited		190,605	$	18,700,256
Starbucks Corporation		565,826		33,038,580
				51,738,836
Media: 3.85%
Comcast Corporation Class A		828,906		31,158,577
Twenty-First Century Fox Incorporated Class B		1,135,615		36,089,845
				67,248,422
Multiline Retail: 2.64%
Dollar General Corporation		362,565		25,281,657
Target Corporation		378,113		20,868,056
				46,149,713
Specialty Retail: 2.27%
L Brands Incorporated		295,274		13,907,405
Lowe’s Companies Incorporated		313,832		25,800,129
				39,707,534
Consumer Staples: 6.36%
Food & Staples Retailing: 1.43%
The Kroger Company		851,608		25,113,920
Food Products: 2.39%
Mead Johnson Nutrition Company		229,987		20,487,242
The Hershey Company		194,383		21,236,343
				41,723,585
Household Products: 1.11%
Church & Dwight Company Incorporated		389,295		19,414,142
Personal Products: 1.43%
The Estee Lauder Companies Incorporated Class A		294,473		24,968,366
Energy: 8.37%
Energy Equipment & Services: 1.95%
Halliburton Company		380,673		18,732,918
Weatherford International plc Ǡ		2,309,351		15,357,184
				34,090,102
Oil, Gas & Consumable Fuels: 6.42%
Concho Resources Incorporated †		118,112		15,158,494
EOG Resources Incorporated		284,897		27,791,702
Newfield Exploration Company †		415,419		15,333,115
Pioneer Natural Resources Company		113,372		21,113,268
Range Resources Corporation		384,149		11,178,736
RSP Permian Incorporated †		523,216		21,676,839
				112,252,154

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

8 Wells Fargo Opportunity Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Financials: 16.55%
Banks: 6.82%
Bank of the Ozarks Incorporated		488,660	$	25,415,207
KeyCorp		1,409,445		25,059,932
PNC Financial Services Group Incorporated		318,312		38,273,835
Webster Financial Corporation		609,616		30,505,185
				119,254,159
Capital Markets: 2.28%
E*TRADE Financial Corporation †		636,341		22,201,937
TD Ameritrade Holding Corporation		456,075		17,723,075
				39,925,012
Insurance: 7.45%
American International Group Incorporated		419,901		26,214,419
Aon plc		235,762		27,982,592
Chubb Limited		229,332		31,246,485
The Progressive Corporation		583,202		22,849,854
Willis Towers Watson plc		167,581		21,934,677
				130,228,027
Health Care: 12.00%
Biotechnology: 0.54%
Alexion Pharmaceuticals Incorporated †		77,241		9,364,699
Health Care Equipment & Supplies: 2.72%
Medtronic plc		413,060		33,276,114
Zimmer Biomet Holdings Incorporated		116,914		14,276,369
				47,552,483
Health Care Providers & Services: 1.29%
Cigna Corporation		153,532		22,490,903
Life Sciences Tools & Services: 4.52%
Agilent Technologies Incorporated		431,429		22,809,651
Bio-Rad Laboratories Incorporated Class A †		158,287		31,552,931
Thermo Fisher Scientific Incorporated		160,522		24,656,179
				79,018,761
Pharmaceuticals: 2.93%
Merck & Company Incorporated		397,540		25,259,692
Novartis AG ADR		350,227		26,011,359
				51,271,051
Industrials: 13.35%
Aerospace & Defense: 2.63%
Lockheed Martin Corporation		88,698		23,735,585
Rockwell Collins Incorporated		229,276		22,276,456
				46,012,041

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Opportunity Fund 9

Security name	Shares		Value
Airlines: 1.18%
United Continental Holdings Incorporated †		292,508	$	20,662,765
Building Products: 2.54%
Johnson Controls International plc		1,052,279		44,321,991
Commercial Services & Supplies: 1.34%
Republic Services Incorporated		372,494		23,396,348
Electrical Equipment: 2.06%
Babcock & Wilcox Enterprises Incorporated †		522,602		4,881,103
Eaton Corporation plc		419,321		31,092,652
				35,973,755
Machinery: 1.34%
Colfax Corporation †		596,381		23,413,918
Road & Rail: 2.26%
Canadian Pacific Railway Limited		67,457		9,910,782
Hertz Global Holdings Incorporated «		553,069		9,700,830
J.B. Hunt Transport Services Incorporated		217,065		19,913,543
				39,525,155
Information Technology: 25.16%
Electronic Equipment, Instruments & Components: 3.05%
Amphenol Corporation Class A		329,834		23,474,286
TE Connectivity Limited		400,997		29,894,326
				53,368,612
Internet Software & Services: 4.36%
Alphabet Incorporated Class C †		60,339		50,054,821
Facebook Incorporated Class A †		184,705		26,237,345
				76,292,166
IT Services: 4.77%
Alliance Data Systems Corporation		100,516		25,028,484
Fidelity National Information Services Incorporated		342,274		27,251,856
MasterCard Incorporated Class A		276,236		31,068,263
				83,348,603
Semiconductors & Semiconductor Equipment: 3.16%
Broadcom Limited		134,383		29,424,502
Texas Instruments Incorporated		320,425		25,813,438
				55,237,940
Software: 6.38%
Check Point Software Technologies Limited †		236,212		24,249,524
Oracle Corporation		589,126		26,280,911
Red Hat Incorporated †		356,962		30,877,213
Salesforce.com Incorporated †		365,323		30,135,494
				111,543,142

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

10 Wells Fargo Opportunity Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name				Shares		Value
Technology Hardware, Storage & Peripherals: 3.44%
Apple Incorporated					418,097	$	60,063,815
Materials: 4.12%
Chemicals: 1.71%
The Sherwin-Williams Company					96,204		29,841,519
Containers & Packaging: 1.20%
Crown Holdings Incorporated †					395,052		20,918,003
Metals & Mining: 1.21%
Steel Dynamics Incorporated					609,715		21,193,693
Real Estate: 1.65%
Equity REITs: 1.65%
American Tower Corporation					237,931		28,918,134
Total Common Stocks (Cost $1,270,872,583)							1,735,543,469
	Yield
Short-Term Investments: 2.04%
Investment Companies: 2.04%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98	%		21,373,763		21,375,900
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63			14,193,391		14,193,391
Total Short-Term Investments (Cost $35,569,291)							35,569,291

Total investments in securities (Cost $1,306,441,874) *	101.32	%		1,771,112,760
Other assets and liabilities, net	(1.32	)		(23,011,107	)
Total net assets	100.00	%	$	1,748,101,653

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

† Non-income-earning security

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

* Cost for federal income tax purposes is $1,304,266,198 and unrealized gains (losses) consists of:

Gross unrealized gains	$	494,054,480
Gross unrealized losses		(27,207,918	)
Net unrealized gains	$	466,846,562

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

Statement of assets and liabilities—March 31, 2017 (unaudited) Wells Fargo Opportunity Fund 11

Assets
Investments
In unaffiliated securities (including $20,878,740 of securities loaned), at value (cost $1,270,872,583)	$	1,735,543,469
In affiliated securities, at value (cost $35,569,291)		35,569,291
Total investments, at value (cost $1,306,441,874)		1,771,112,760
Receivable for investments sold		4,437,162
Receivable for Fund shares sold		249,883
Receivable for dividends		2,778,395
Receivable for securities lending income		3,631
Prepaid expenses and other assets		54,482
Total assets		1,778,636,313
Liabilities
Payable for investments purchased		5,799,676
Payable for Fund shares redeemed		1,262,983
Payable upon receipt of securities loaned		21,375,900
Management fee payable		1,115,217
Distribution fees payable		24,216
Administration fees payable		314,553
Accrued expenses and other liabilities		642,115
Total liabilities		30,534,660
Total net assets	$	1,748,101,653
NET ASSETS CONSIST OF
Paid-in capital	$	1,174,440,443
Undistributed net investment income		7,059,149
Accumulated net realized gains on investments		101,931,055
Net unrealized gains on investments		464,671,006
Total net assets	$	1,748,101,653
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets - Class A	$	1,453,561,023
Shares outstanding - Class A1		33,809,265
Net asset value per share - Class A		$42.99
Maximum offering price per share - Class A2		$45.61
Net assets - Class B	$	521,369
Shares outstanding - Class B1		12,673
Net asset value per share - Class B		$41.14
Net assets - Class C	$	34,921,350
Shares outstanding - Class C1		853,341
Net asset value per share - Class C		$40.92
Net assets - Administrator Class	$	230,286,518
Shares outstanding - Administrator Class1		4,969,969
Net asset value per share - Administrator Class		$46.34
Net assets - Institutional Class	$	28,811,393
Shares outstanding - Institutional Class1		611,998
Net asset value per share - Institutional Class		$47.08

¹  The Fund has an unlimited number of authorized shares.

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

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

12 Wells Fargo Opportunity Fund Statement of operations—six months ended March 31, 2017 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $141,500)	$	17,294,482
Securities lending income, net		54,881
Income from affiliated securities		42,635
Total investment income		17,391,998
Expenses
Management fee		6,205,115
Administration fees
Class A		1,506,635
Class B		1,120
Class C		36,367
Administrator Class		147,848
Institutional Class		13,920
Shareholder servicing fees
Class A		1,793,613
Class B		1,333
Class C		43,294
Administrator Class		284,324
Distribution fees
Class B		3,999
Class C		129,881
Custody and accounting fees		46,991
Professional fees		25,839
Registration fees		44,727
Shareholder report expenses		78,424
Trustees’ fees and expenses		8,141
Other fees and expenses		17,061
Total expenses		10,388,632
Less: Fee waivers and/or expense reimbursements		(158,742	)
Net expenses		10,229,890
Net investment income		7,162,108
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		105,904,390
Affiliated securities		1,643
Net realized gains on investments		105,906,033
Net change in unrealized gains (losses) on investments		39,736,472
Net realized and unrealized gains (losses) on investments		145,642,505
Net increase in net assets resulting from operations	$	152,804,613

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

Statement of changes in net assets Wells Fargo Opportunity Fund 13

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment income				$	7,162,108					$	6,138,111
Net realized gains on investments					105,906,033						105,020,650
Net change in unrealized gains (losses) on investments					39,736,472						87,822,225
Net increase in net assets resulting from operations					152,804,613						198,980,986
Distributions to shareholders from
Net investment income
Class A					(4,495,053	)					(20,934,141	)
Class C					0						(189,287	)
Administrator Class					(942,123	)					(3,656,721	)
Institutional Class					(123,346	)					(234,706	)
Net realized gains
Class A					(83,846,276	)					(185,395,064	)
Class B					(69,785	)					(425,984	)
Class C					(2,126,589	)					(4,995,377	)
Administrator Class					(12,365,471	)					(27,497,135	)
Institutional Class					(1,124,308	)					(1,456,485	)
Total distributions to shareholders					(105,092,951	)					(244,784,900	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		242,606			10,251,117			24,061,660			1,119,678,940
Class B		104			4,292			2			80
Class C		12,961			530,582			13,720			517,107
Administrator Class		52,522			2,407,708			129,304			5,492,475
Institutional Class		308,651			14,476,197			198,222			8,697,552
Investor Class		N/A			N/A			14,679	1		683,049	1
					27,669,896						1,135,069,203
Reinvestment of distributions
Class A		2,058,839			86,052,018			5,133,573			200,595,023
Class B		1,720			68,785			11,360			422,382
Class C		49,931			1,986,269			129,505			4,817,319
Administrator Class		278,197			12,532,938			701,312			29,406,409
Institutional Class		24,783			1,134,964			33,469			1,426,272
					101,774,974						236,667,405
Payment for shares redeemed
Class A		(2,379,925	)		(100,531,858	)		(4,306,621	)		(173,325,216	)
Class B		(31,827	)		(1,288,819	)		(54,234	)		(2,123,946	)
Class C		(77,816	)		(3,125,974	)		(169,002	)		(6,566,702	)
Administrator Class		(394,028	)		(17,957,740	)		(640,144	)		(27,663,783	)
Institutional Class		(98,873	)		(4,562,987	)		(108,868	)		(4,765,522	)
Investor Class		N/A			N/A			(23,333,080	)1		(1,113,901,150	)1
					(127,467,378	)					(1,328,346,319	)
Net increase in net assets resulting from capital share transactions					1,977,492						43,390,289
Total increase (decrease) in net assets					49,689,154						(2,413,625	)
Net assets
Beginning of period					1,698,412,499						1,700,826,124
End of period				$	1,748,101,653					$	1,698,412,499
Undistributed net investment income				$	7,059,149					$	5,457,563

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

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

14 Wells Fargo Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$41.86			$43.35			$49.56			$46.23			$38.99			$32.08
Net investment income (loss)		0.17			0.13	1		0.64			(0.07	)		(0.04	)		(0.03	)
Net realized and unrealized gains (losses) on investments		3.63			4.72			(1.52	)		6.46			8.80			6.94
Total from investment operations		3.80			4.85			(0.88	)		6.39			8.76			6.91
Distributions to shareholders from
Net investment income		(0.13	)		(0.57	)		0.00			0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)		0.00
Total distributions to shareholders		(2.67	)		(6.34	)		(5.33	)		(3.06	)		(1.52	)		0.00
Net asset value, end of period		$42.99			$41.86			$43.35			$49.56			$46.23			$38.99
Total return2		9.28	%		12.46	%		(2.27	)%		14.35	%		23.31	%		21.54	%
Ratios to average net assets (annualized)
Gross expenses		1.21	%		1.21	%		1.24	%		1.26	%		1.26	%		1.25	%
Net expenses		1.21	%		1.21	%		1.22	%		1.22	%		1.23	%		1.25	%
Net investment income (loss)		0.82	%		0.33	%		1.30	%		(0.13	)%		(0.08	)%		(0.08	)%
Supplemental data
Portfolio turnover rate		33	%		34	%		42	%		32	%		26	%		41	%
Net assets, end of period (000s omitted)		$1,453,561			$1,418,614			$390,154			$442,840			$431,201			$399,828

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 Opportunity Fund 15

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS B				2016			2015			2014			2013			2012
Net asset value, beginning of period		$40.19			$41.60			$48.09			$45.27			$38.49			$31.91
Net investment income (loss)		0.06	1		(0.14	)1		0.30	1		(0.43	)1		(0.35	)1		(0.31	)1
Net realized and unrealized gains (losses) on investments		3.43			4.50			(1.46	)		6.31			8.65			6.89
Total from investment operations		3.49			4.36			(1.16	)		5.88			8.30			6.58
Distributions to shareholders from
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)		0.00
Net asset value, end of period		$41.14			$40.19			$41.60			$48.09			$45.27			$38.49
Total return2		8.86	%		11.61	%		(2.98	)%		13.48	%		22.39	%		20.62	%
Ratios to average net assets (annualized)
Gross expenses		1.96	%		1.95	%		1.99	%		2.01	%		2.01	%		2.00	%
Net expenses		1.96	%		1.95	%		1.97	%		1.97	%		1.98	%		2.00	%
Net investment income (loss)		0.28	%		(0.36	)%		0.64	%		(0.90	)%		(0.83	)%		(0.83	)%
Supplemental data
Portfolio turnover rate		33	%		34	%		42	%		32	%		26	%		41	%
Net assets, end of period (000s omitted)		$521			$1,715			$3,559			$6,316			$9,020			$11,743

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.

16 Wells Fargo Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$39.99			$41.60			$48.10			$45.27			$38.49			$31.91
Net investment income (loss)		0.01	1		(0.16	)1		0.26			(0.42	)1		(0.35	)1		(0.31	)1
Net realized and unrealized gains (losses) on investments		3.46			4.51			(1.43	)		6.31			8.65			6.89
Total from investment operations		3.47			4.35			(1.17	)		5.89			8.30			6.58
Distributions to shareholders from
Net investment income		0.00			(0.19	)		0.00			0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)		0.00
Total distributions to shareholders		(2.54	)		(5.96	)		(5.33	)		(3.06	)		(1.52	)		0.00
Net asset value, end of period		$40.92			$39.99			$41.60			$48.10			$45.27			$38.49
Total return2		8.86	%		11.62	%		(3.01	)%		13.48	%		22.41	%		20.62	%
Ratios to average net assets (annualized)
Gross expenses		1.96	%		1.96	%		1.99	%		2.01	%		2.01	%		2.00	%
Net expenses		1.96	%		1.96	%		1.97	%		1.97	%		1.98	%		2.00	%
Net investment income (loss)		0.07	%		(0.40	)%		0.55	%		(0.88	)%		(0.83	)%		(0.83	)%
Supplemental data
Portfolio turnover rate		33	%		34	%		42	%		32	%		26	%		41	%
Net assets, end of period (000s omitted)		$34,921			$34,721			$37,196			$42,940			$43,209			$42,720

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 Opportunity Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$44.93			$46.11			$52.27			$48.50			$40.74			$33.44
Net investment income		0.24			0.24	1		0.79			0.08			0.06	1		0.09
Net realized and unrealized gains (losses) on investments		3.89			5.04			(1.62	)		6.75			9.22			7.21
Total from investment operations		4.13			5.28			(0.83	)		6.83			9.28			7.30
Distributions to shareholders from
Net investment income		(0.18	)		(0.69	)		0.00			0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)		0.00
Total distributions to shareholders		(2.72	)		(6.46	)		(5.33	)		(3.06	)		(1.52	)		0.00
Net asset value, end of period		$46.34			$44.93			$46.11			$52.27			$48.50			$40.74
Total return2		9.40	%		12.68	%		(2.04	)%		14.60	%		23.59	%		21.83	%
Ratios to average net assets (annualized)
Gross expenses		1.13	%		1.13	%		1.10	%		1.10	%		1.10	%		1.09	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income		1.03	%		0.56	%		1.52	%		0.09	%		0.13	%		0.17	%
Supplemental data
Portfolio turnover rate		33	%		34	%		42	%		32	%		26	%		41	%
Net assets, end of period (000s omitted)		$230,287			$226,140			$223,281			$253,121			$247,230			$395,493

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.

18 Wells Fargo Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$45.63			$46.76			$52.82			$48.86			$40.93			$33.52
Net investment income		0.28	1		0.35	1		0.92	1		0.19	1		0.17			0.21
Net realized and unrealized gains (losses) on investments		3.97			5.12			(1.65	)		6.83			9.28			7.20
Total from investment operations		4.25			5.47			(0.73	)		7.02			9.45			7.41
Distributions to shareholders from
Net investment income		(0.26	)		(0.83	)		0.00			0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)		0.00
Total distributions to shareholders		(2.80	)		(6.60	)		(5.33	)		(3.06	)		(1.52	)		0.00
Net asset value, end of period		$47.08			$45.63			$46.76			$52.82			$48.86			$40.93
Total return2		9.53	%		12.97	%		(1.81	)%		14.89	%		23.91	%		22.11	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.88	%		0.83	%		0.83	%		0.83	%		0.82	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		1.19	%		0.79	%		1.79	%		0.36	%		0.41	%		0.39	%
Supplemental data
Portfolio turnover rate		33	%		34	%		42	%		32	%		26	%		41	%
Net assets, end of period (000s omitted)		$28,811			$17,222			$11,906			$29,335			$14,030			$10,804

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 Opportunity 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Opportunity 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.

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.

The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”).

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2017, such fair value pricing was not used in pricing foreign securities.

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

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

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

20 Wells Fargo Opportunity Fund Notes to financial statements (unaudited)

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 of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments

Security loans

The 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.

Security transactions and income recognition

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

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

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

Notes to financial statements (unaudited) Wells Fargo Opportunity Fund 21

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.

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 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	204,844,505	$	0	$	0	$	204,844,505
Consumer staples		111,220,013		0		0		111,220,013
Energy		146,342,256		0		0		146,342,256
Financials		289,407,198		0		0		289,407,198
Health care		209,697,897		0		0		209,697,897
Industrials		233,305,973		0		0		233,305,973
Information technology		439,854,278		0		0		439,854,278
Materials		71,953,215		0		0		71,953,215
Real estate		28,918,134		0		0		28,918,134
Short-term investments
Investment companies		14,193,391		0		0		14,193,391
Investments measured at net asset value*								21,375,900
Total assets	$	1,749,736,860	$	0	$	0	$	1,771,112,760

* 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 $21,375,900 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

22 Wells Fargo Opportunity Fund Notes to financial statements (unaudited)

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At March 31, 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 0.75% and declining to 0.63% as the average daily net assets of the Fund increase. For the six month ended March 31, 2017, the management fee was equivalent to an annual rate of 0.72% 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 0.45% and declining to 0.30% 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		0.21	%
Administrator Class, Institutional Class		0.13

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.21% for Class A shares, 1.96% for Class B shares, 1.96% for Class C shares, 1.00% for Administrator Class shares, and 0.75% 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 month ended March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $4,273 for certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $10,171 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 March 31, 2017, Funds Distributor received $2,995 from the sale of Class A shares and $52 in contingent deferred sales charges from redemptions of Class C shares, respectively.

Notes to financial statements (unaudited) Wells Fargo Opportunity Fund 23

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 March 31, 2017 were $568,886,514 and $634,051,277, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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 March 31, 2017, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

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 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.

24 Wells Fargo Opportunity Fund Other information (unaudited)

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.

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.

Other information (unaudited) Wells Fargo Opportunity Fund 25

BOARD OF TRUSTEES AND OFFICERS

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

26 Wells Fargo Opportunity 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 Opportunity Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian peso

CLP —  Chilean peso

DKK —  Danish krone

DRIVER —  Derivative inverse tax-exempt receipts

DW&P —  Department of Water & Power

DWR —  Department of Water Resources

ECFA —  Educational & Cultural Facilities Authority

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-traded fund

EUR —  Euro

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British pound

GDR —  Global depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIFER —  Long Inverse Floating Exempt Receipts

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NGN —  Nigerian naira

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

PCR —  Pollution control revenue

PFA —  Public Finance Authority

PFFA —  Public Facilities Financing Authority

PFOTER —  Puttable floating option tax-exempt receipts

plc —  Public limited company

PLN —  Polish zloty

PUTTER —  Puttable tax-exempt receipts

R&D —  Research & development

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real estate investment trust

ROC —  Reset option certificates

RON —  Romanian lei

RUB —  Russian ruble

SAVRS —  Select auction variable rate securities

SBA —  Small Business Authority

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —  Short Puttable Exempt Adjustable Receipts

STRIPS —  Separate trading of registered interest and

      principal securities

TAN —  Tax anticipation notes

TBA —  To be announced

THB —  Thai baht

TIPS —  Treasury inflation-protected securities

TRAN —  Tax revenue anticipation notes

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

For more information

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

Wells Fargo Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: fundservice@wellsfargo.com

Website: wellsfargofunds.com

Individual investors: 1-800-222-8222

Retail investment professionals: 1-888-877-9275

Institutional investment professionals: 1-866-765-0778

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

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

302890 05-17 SA232/SAR232 03-17

Semi-Annual Report

March 31, 2017

Wells Fargo Special Mid Cap Value 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	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	20
Other information	25
List of abbreviations	28

The views expressed and any forward-looking statements are as of March 31, 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 Special Mid Cap Value Fund Letter to shareholders (unaudited)

Andrew Owen

President

Wells Fargo Funds

U.S. and international stocks returned 10.12% and 8.18% for the six-month period; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned -2.18%.

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 Special Mid Cap Value Fund for the six-month period that ended March 31, 2017. During this period, global stocks delivered favorable results overall. U.S. and international stocks returned 10.12% and 8.18% 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 -2.18%.

During the fourth quarter of 2016, prospects for faster growth and higher interest rates in the U.S. influenced 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 progrowth 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 U.S. 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 market fund reform implementation, nearly $1 trillion in assets moved from these types of money market funds into government money market funds, which 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. Meanwhile, rising inflation across the eurozone and Japan caused an upward shift in yield curves in those areas although developed-country bond yields remained significantly lower than U.S. Treasury yields.

Globally, stocks delivered positive results and economies showed some improvement in the first quarter of 2017.

Stocks rallied globally through the first quarter of 2017, supported by signs of improvement in the U.S. and global economies. U.S. economic data released during the quarter reflected a healthy economy. Hiring remained strong, and business and consumer sentiment improved. Meanwhile, inflation inched up during the quarter. Along with the pickup in inflation, investors appeared to shift

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 Special Mid Cap Value Fund 3

from a mindset of very gradual interest-rate increases by the Fed to an anticipation of three or four increases in 2017. The first of these occurred in March; Fed officials raised their short-term target rate by a quarter percentage point to between 0.75% and 1.00%. With the Fed’s target-rate increase, short-term bond yields rose during the quarter. Meanwhile, longer-term Treasury yields were little changed, leading to positive performance. Investment-grade and high-yield bonds benefited from strong demand. Municipal bond returns were positive in the quarter, helped by strong demand and constrained new-issue supply. Outside of the U.S., credit spreads narrowed, helping lower-quality credit outperform amid a strong demand for yield. Also, stocks in emerging markets generally outperformed stocks in the U.S. and international developed markets. Thus far in 2017, emerging markets overall have benefited from both global economic growth and recent weakening in the U.S. dollar. European stocks also outperformed the U.S. market, despite investors’ concern over uncertainties such as the potential impact of an upcoming election in France; a contender for president of France, Marine Le Pen, favored exiting the European Union, which could potentially destabilize or topple the organization.

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 Special Mid Cap Value Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term capital appreciation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

James M. Tringas, CFA^®, CPA

Bryant VanCronkhite, CFA^®, CPA

Average annual total returns (%) as of March 31, 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 (WFPAX)	7-31-2007		12.74		13.41		7.77		19.62		14.76		8.41		1.20		1.20
Class C (WFPCX)	7-31-2007		17.69		13.90		7.61		18.69		13.90		7.61		1.95		1.95
Class R (WFHHX)	9-30-2015		–		–		–		19.31		14.50		8.16		1.45		1.45
Class R6 (WFPRX)	6-28-2013		–		–		–		20.11		15.27		8.86		0.77		0.77
Administrator Class (WFMDX)	4-8-2005		–		–		–		19.69		14.89		8.54		1.12		1.12
Institutional Class (WFMIX)	4-8-2005		–		–		–		20.02		15.22		8.83		0.87		0.87
Russell Midcap® Value Index4	–		–		–		–		19.82		14.07		7.47		–		–

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

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

For Class A shares, the maximum front-end sales charge is 5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R, Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Special Mid Cap Value Fund 5

Ten largest holdings (%) as of March 31, 20175
TreeHouse Foods Incorporated	3.10
Harris Corporation	2.94
Republic Services Incorporated	2.91
Fidelity National Information Services Incorporated	2.81
Ameren Corporation	2.52
Molson Coors Brewing Company Class B	2.50
Kansas City Southern	2.30
The Allstate Corporation	2.18
Loews Corporation	2.16
American Electric Power Company Incorporated	2.12

Sector distribution as of March 31, 2017⁶

¹  Historical performance shown for Class A shares prior to their inception reflects the performance of the former Investor Class shares, and includes the higher expenses applicable to the former Investor Class shares. If these expenses had not been included, returns for Class A shares would be higher. Historical performance shown for Class C shares prior to their inception reflects the performance of the former Investor Class shares and has been adjusted to reflect the higher expenses applicable to Class C shares. Historical performance shown for the Class R shares prior to their inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to Class R shares. Historical performance shown for Class R6 shares prior to their inception reflects the performance of Institutional Class shares, and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, the returns for Class R6 shares 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 January 31, 2018, 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 1.22% for Class A, 1.97% for Class C, 1.47% for Class R, 0.79% for Class R6, 1.14% for Administrator Class, and 0.87% for Institutional Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the expense cap. Without this cap, the Fund’s returns would have been lower. 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 prospectuses.

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

⁵  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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

6 Wells Fargo Special Mid Cap Value 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 October 1, 2016 to March 31, 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 10-1-2016		Ending account value 3-31-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,094.34	$	6.16		1.18	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.05	$	5.94		1.18	%
Class C
Actual	$	1,000.00	$	1,090.19	$	10.06		1.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.31	$	9.70		1.93	%
Class R
Actual	$	1,000.00	$	1,092.76	$	7.46		1.43	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.80	$	7.19		1.43	%
Class R6
Actual	$	1,000.00	$	1,096.29	$	3.92		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.19	$	3.78		0.75	%
Administrator Class
Actual	$	1,000.00	$	1,094.54	$	5.74		1.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.45	$	5.54		1.10	%
Institutional Class
Actual	$	1,000.00	$	1,096.04	$	4.44		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.69	$	4.28		0.85	%

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—March 31, 2017 (unaudited) Wells Fargo Special Mid Cap Value Fund 7

Security name	Shares		Value
Common Stocks: 94.98%
Consumer Discretionary: 3.62%
Hotels, Restaurants & Leisure: 0.78%
The Wendy’s Company		3,721,100	$	50,644,171
Multiline Retail: 1.78%
Kohl’s Corporation		2,896,900		115,325,589
Specialty Retail: 1.06%
Signet Jewelers Limited		995,400		68,951,358
Consumer Staples: 8.78%
Beverages: 2.50%
Molson Coors Brewing Company Class B		1,700,110		162,717,528
Food & Staples Retailing: 1.21%
The Kroger Company		2,661,600		78,490,584
Food Products: 5.07%
Pinnacle Foods Incorporated		1,202,900		69,611,823
The Hain Celestial Group Incorporated †		1,582,000		58,850,400
TreeHouse Foods Incorporated †		2,375,609		201,119,058
				329,581,281
Energy: 9.15%
Energy Equipment & Services: 5.86%
Baker Hughes Incorporated		2,181,400		130,491,348
Frank’s International N.V. «		2,796,900		29,563,233
National Oilwell Varco Incorporated		2,760,600		110,672,454
Patterson-UTI Energy Incorporated		4,527,500		109,882,425
				380,609,460
Oil, Gas & Consumable Fuels: 3.29%
Anadarko Petroleum Corporation		1,477,500		91,605,000
Cimarex Energy Company		186,010		22,226,335
Hess Corporation		2,073,500		99,963,435
				213,794,770
Financials: 18.59%
Banks: 4.91%
Fifth Third Bancorp		2,655,700		67,454,780
PacWest Bancorp		1,921,207		102,323,485
Regions Financial Corporation		6,879,600		99,960,588
Zions Bancorporation		1,171,800		49,215,600
				318,954,453
Capital Markets: 1.56%
Northern Trust Corporation		1,174,600		101,696,868

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

8 Wells Fargo Special Mid Cap Value Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name	Shares		Value
Consumer Finance: 1.34%
Ally Financial Incorporated		4,270,761	$	86,824,571
Insurance: 10.78%
Arch Capital Group Limited †		749,460		71,026,324
Brown & Brown Incorporated		2,915,500		121,634,660
FNF Group		2,978,114		115,967,759
Loews Corporation		3,002,500		140,426,925
The Allstate Corporation		1,735,300		141,409,597
Willis Towers Watson plc		839,000		109,816,710
				700,281,975
Health Care: 6.42%
Health Care Equipment & Supplies: 2.37%
Steris plc		1,017,200		70,654,712
Varian Medical Systems Incorporated		912,300		83,137,899
				153,792,611
Health Care Providers & Services: 4.05%
AmerisourceBergen Corporation		746,500		66,065,250
Humana Incorporated		597,800		123,230,492
Patterson Companies Incorporated «		1,634,900		73,946,527
				263,242,269
Industrials: 14.35%
Aerospace & Defense: 3.64%
Raytheon Company		831,400		126,788,500
Rockwell Collins Incorporated		1,128,000		109,596,480
				236,384,980
Commercial Services & Supplies: 4.46%
Republic Services Incorporated		3,010,675		189,100,497
Stericycle Incorporated †		1,211,300		100,404,657
				289,505,154
Machinery: 2.11%
Deere & Company		521,400		56,759,604
Flowserve Corporation		1,658,200		80,290,044
				137,049,648
Marine: 0.17%
Kirby Corporation †		158,500		11,182,175
Road & Rail: 3.97%
Kansas City Southern		1,740,100		149,230,976
Ryder System Incorporated		1,443,100		108,867,464
				258,098,440

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

Portfolio of investments—March 31, 2017 (unaudited) Wells Fargo Special Mid Cap Value Fund 9

Security name	Shares		Value
Information Technology: 13.07%
Communications Equipment: 4.65%
ARRIS International plc †		4,197,300	$	111,018,585
Harris Corporation		1,716,100		190,950,447
				301,969,032
IT Services: 7.98%
Amdocs Limited		1,849,800		112,819,302
DST Systems Incorporated		887,082		108,667,545
Fidelity National Information Services Incorporated		2,295,000		182,727,900
Leidos Holdings Incorporated		2,230,500		114,067,770
				518,282,517
Technology Hardware, Storage & Peripherals: 0.44%
Western Digital Corporation		347,500		28,679,175
Materials: 6.80%
Chemicals: 2.47%
International Flavors & Fragrances Incorporated		786,500		104,234,845
PPG Industries Incorporated		534,100		56,123,228
				160,358,073
Construction Materials: 0.99%
Eagle Materials Incorporated		664,000		64,500,960
Containers & Packaging: 3.34%
International Paper Company		1,811,000		91,962,580
Packaging Corporation of America		1,361,300		124,722,306
				216,684,886
Real Estate: 6.40%
Equity REITs: 4.35%
American Campus Communities Incorporated		2,326,785		110,731,698
Corporate Office Properties Trust		1,513,500		50,096,850
Invitation Homes Incorporated †		2,605,828		56,885,225
Mid-America Apartment Communities Incorporated		636,600		64,767,684
				282,481,457
Real Estate Management & Development: 2.05%
CBRE Group Incorporated Class A †		3,598,800		125,202,252
Jones Lang LaSalle Incorporated		75,700		8,436,765
				133,639,017
Telecommunication Services: 1.23%
Diversified Telecommunication Services: 1.23%
CenturyLink Incorporated «		3,404,100		80,234,637

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

10 Wells Fargo Special Mid Cap Value Fund Portfolio of investments—March 31, 2017 (unaudited)

Security name				Shares		Value
Utilities: 6.57%
Electric Utilities: 2.12%
American Electric Power Company Incorporated					2,050,960	$	137,680,945
Multi-Utilities: 2.52%
Ameren Corporation					3,002,550		163,909,205
Water Utilities: 1.93%
American Water Works Company Incorporated					1,615,500		125,637,435
Total Common Stocks (Cost $5,352,698,216)							6,171,185,224
	Yield
Short-Term Investments: 7.19%
Investment Companies: 7.19%
Securities Lending Cash Investment LLC (l)(r)(u)		0.98	%		114,295,471		114,306,901
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.63			352,587,499		352,587,499
Total Short-Term Investments (Cost $466,894,400)							466,894,400

Total investments in securities (Cost $5,819,592,616) *	102.17	%		6,638,079,624
Other assets and liabilities, net	(2.17	)		(140,793,218	)
Total net assets	100.00	%	$	6,497,286,406

† Non-income-earning security

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

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

* Cost for federal income tax purposes is $5,819,687,276 and unrealized gains (losses) consists of:

Gross unrealized gains	$	870,826,255
Gross unrealized losses		(52,433,907	)
Net unrealized gains	$	818,392,348

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

Statement of assets and liabilities—March 31, 2017 (unaudited) Wells Fargo Special Mid Cap Value Fund 11

Assets
Investments
In unaffiliated securities (including $111,222,326 of securities loaned), at value (cost $5,352,698,216)	$	6,171,185,224
In affiliated securities, at value (cost $466,894,400)		466,894,400
Total investments, at value (cost $5,819,592,616)		6,638,079,624
Receivable for investments sold		23,501,732
Receivable for Fund shares sold		68,998,281
Receivable for dividends		7,180,148
Receivable for securities lending income		112,570
Prepaid expenses and other assets		221,117
Total assets		6,738,093,472
Liabilities
Payable for investments purchased		83,564,781
Payable for Fund shares redeemed		36,923,976
Payable upon receipt of securities loaned		114,306,901
Management fee payable		3,918,994
Distribution fees payable		116,274
Administration fees payable		808,951
Accrued expenses and other liabilities		1,167,189
Total liabilities		240,807,066
Total net assets	$	6,497,286,406
NET ASSETS CONSIST OF
Paid-in capital	$	5,500,322,817
Undistributed net investment income		8,916,348
Accumulated net realized gains on investments		169,560,233
Net unrealized gains on investments		818,487,008
Total net assets	$	6,497,286,406
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,047,479,423
Shares outstanding – Class A1		29,214,790
Net asset value per share – Class A		$35.85
Maximum offering price per share – Class A2		$38.04
Net assets – Class C	$	172,438,201
Shares outstanding – Class C1		4,985,274
Net asset value per share – Class C		$34.59
Net assets – Class R	$	5,406,970
Shares outstanding – Class R1		148,296
Net asset value per share – Class R		$36.46
Net assets – Class R6	$	601,892,414
Shares outstanding – Class R61		16,372,326
Net asset value per share – Class R6		$36.76
Net assets – Administrator Class	$	1,003,549,351
Shares outstanding – Administrator Class1		27,539,476
Net asset value per share – Administrator Class		$36.44
Net assets – Institutional Class	$	3,666,520,047
Shares outstanding – Institutional Class1		99,811,480
Net asset value per share – Institutional Class		$36.73

¹  The Fund has an unlimited number of authorized shares.

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

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

12 Wells Fargo Special Mid Cap Value Fund Statement of operations—six months ended March 31, 2017 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $26,458)	$	49,842,979
Income from affiliated securities		675,535
Securities lending income, net		317,025
Total investment income		50,835,539
Expenses
Management fee		19,636,494
Administration fees
Class A		1,499,918
Class C		150,658
Class R		3,618
Class R6		70,385
Administrator Class		602,431
Institutional Class		1,816,684
Shareholder servicing fees
Class A		1,785,616
Class C		179,355
Class R		4,307
Administrator Class		1,158,521
Distribution fees
Class C		538,064
Class R		4,307
Custody and accounting fees		120,000
Professional fees		22,433
Registration fees		347,569
Shareholder report expenses		691,860
Trustees’ fees and expenses		10,030
Other fees and expenses		18,947
Total expenses		28,661,197
Net investment income		22,174,342
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		201,481,955
Net change in unrealized gains (losses) on investments		279,366,936
Net realized and unrealized gains (losses) on investments		480,848,891
Net increase in net assets resulting from operations	$	503,023,233

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

Statement of changes in net assets Wells Fargo Special Mid Cap Value Fund 13

	Six months ended March 31, 2017 (unaudited)						Year ended September 30, 2016
Operations
Net investment income				$	22,174,342					$	29,787,605
Net realized gains on investments					201,481,955						1,165,809
Net change in unrealized gains (losses) on investments					279,366,936						524,769,917
Net increase in net assets resulting from operations					503,023,233						555,723,331
Distributions to shareholders from
Net investment income
Class A					(7,950,644	)					(3,106,870	)
Class C					(22,847	)					(20,450	)
Class R					(20,893	)					(195	)
Class R6					(4,366,000	)					(1,171,323	)
Administrator Class					(5,647,480	)					(2,729,427	)
Institutional Class					(24,469,172	)					(3,574,594	)
Net realized gains
Class A					(8,040,188	)					(40,065,294	)
Class C					(774,149	)					(2,776,111	)
Class R					(15,345	)					(920	)
Class R6					(2,351,311	)					(5,563,069	)
Administrator Class					(4,977,762	)					(17,677,686	)
Institutional Class					(14,258,083	)					(17,921,301	)
Total distributions to shareholders					(72,893,874	)					(94,607,240	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		9,543,369			334,331,311			32,591,298			1,012,650,670
Class C		1,816,412			61,516,062			2,098,801			62,533,533
Class R		100,250			3,575,702			54,121			1,738,947
Class R6		6,617,572			238,755,996			8,542,115			271,942,094
Administrator Class		5,760,379			205,266,012			36,577,283			1,062,087,191
Institutional Class		41,656,760			1,511,526,025			64,727,505			2,061,463,035
Investor Class		N/A			N/A			231,357	1		7,299,395	1
					2,354,971,108						4,479,714,865
Reinvestment of distributions
Class A		430,399			15,319,605			1,432,793			41,899,896
Class C		21,636			747,041			91,890			2,596,151
Class R		1,001			36,238			37			1,115
Class R6		184,501			6,716,953			223,787			6,734,392
Administrator Class		293,544			10,613,440			684,328			20,395,161
Institutional Class		939,200			34,186,140			647,950			19,486,743
					67,619,417						91,113,458
Payment for shares redeemed
Class A		(21,918,606	)		(783,413,556	)		(9,893,268	)		(302,160,382	)
Class C		(488,453	)		(16,426,181	)		(742,121	)		(22,059,406	)
Class R		(5,583	)		(201,666	)		(2,344	)		(77,354	)
Class R6		(1,437,792	)		(51,662,158	)		(1,208,673	)		(38,504,373	)
Administrator Class		(3,289,645	)		(117,578,563	)		(25,433,290	)		(773,879,830	)
Institutional Class		(11,195,450	)		(401,631,960	)		(10,381,138	)		(332,586,897	)
Investor Class		N/A			N/A			(17,217,665	)1		(549,439,619	)1
					(1,370,914,084	)					(2,018,707,861	)
Net increase in net assets resulting from capital share transactions					1,051,676,441						2,552,120,462
Total increase in net assets					1,481,805,800						3,013,236,553
Net assets
Beginning of period					5,015,480,606						2,002,244,053
End of period				$	6,497,286,406					$	5,015,480,606
Undistributed net investment income				$	8,916,348					$	29,219,042

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

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

14 Wells Fargo Special Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS A				2016			2015			2014			2013			2012
Net asset value, beginning of period		$33.12			$29.91			$32.68			$30.36			$22.83			$17.84
Net investment income		0.10	1		0.19			0.25			0.12	1		0.15	1		0.08	1
Net realized and unrealized gains (losses) on investments		3.01			4.23			0.07			4.47			7.60			4.94
Total from investment operations		3.11			4.42			0.32			4.59			7.75			5.02
Distributions to shareholders from
Net investment income		(0.19	)		(0.08	)		(0.18	)		(0.09	)		(0.22	)		(0.03	)
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00			0.00
Total distributions to shareholders		(0.38	)		(1.21	)		(3.09	)		(2.27	)		(0.22	)		(0.03	)
Net asset value, end of period		$35.85			$33.12			$29.91			$32.68			$30.36			$22.83
Total return2		9.43	%		15.34	%		0.69	%		15.70	%		34.23	%		28.18	%
Ratios to average net assets (annualized)
Gross expenses		1.18	%		1.19	%		1.25	%		1.28	%		1.29	%		1.30	%
Net expenses		1.18	%		1.19	%		1.24	%		1.25	%		1.25	%		1.25	%
Net investment income		0.56	%		0.82	%		0.85	%		0.38	%		0.54	%		0.38	%
Supplemental data
Portfolio turnover rate		37	%		30	%		58	%		58	%		87	%		87	%
Net assets, end of period (000s omitted)		$1,047,479			$1,363,213			$509,386			$110,219			$38,119			$9,545

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 Special Mid Cap Value Fund 15

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS C				2016			2015			2014			2013			2012
Net asset value, beginning of period		$31.91			$29.00			$31.82			$29.73			$22.38			$17.60
Net investment income (loss)		(0.01	)		0.03			0.02	1		(0.04	)		(0.07	)1		(0.03	)
Net realized and unrealized gains (losses) on investments		2.89			4.02			0.07			4.31			7.49			4.81
Total from investment operations		2.88			4.05			0.09			4.27			7.42			4.78
Distributions to shareholders from
Net investment income		(0.01	)		(0.01	)		0.00			0.00			(0.07	)		0.00
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00			0.00
Total distributions to shareholders		(0.20	)		(1.14	)		(2.91	)		(2.18	)		(0.07	)		0.00
Net asset value, end of period		$34.59			$31.91			$29.00			$31.82			$29.73			$22.38
Total return2		9.02	%		14.47	%		(0.05	)%		14.86	%		33.23	%		27.16	%
Ratios to average net assets (annualized)
Gross expenses		1.93	%		1.94	%		2.00	%		2.03	%		2.04	%		2.06	%
Net expenses		1.93	%		1.94	%		1.99	%		2.00	%		2.00	%		2.00	%
Net investment income (loss)		(0.16	)%		0.03	%		0.08	%		(0.38	)%		(0.25	)%		(0.35	)%
Supplemental data
Portfolio turnover rate		37	%		30	%		58	%		58	%		87	%		87	%
Net assets, end of period (000s omitted)		$172,438			$116,022			$63,431			$29,217			$14,913			$2,770

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.

16 Wells Fargo Special Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS R				2016			20151
Net asset value, beginning of period		$33.78			$30.70			$30.70
Net investment income		0.07	2		0.12	2		0.00
Net realized and unrealized gains (losses) on investments		3.06			4.32			0.00
Total from investment operations		3.13			4.44			0.00
Distributions to shareholders from
Net investment income		(0.26	)		(0.23	)		0.00
Net realized gains		(0.19	)		(1.13	)		0.00
Total distributions to shareholders		(0.45	)		(1.36	)		0.00
Net asset value, end of period		$36.46			$33.78			$30.70
Total return3		9.28	%		15.05	%		0.00	%
Ratios to average net assets (annualized)
Gross expenses		1.43	%		1.44	%		0.00	%
Net expenses		1.43	%		1.44	%		0.00	%
Net investment income		0.36	%		0.37	%		0.00	%
Supplemental data
Portfolio turnover rate		37	%		30	%		58	%
Net assets, end of period (000s omitted)		$5,407			$1,778			$25

¹  The class commenced operations on September 30, 2015. Information represents activity for the one day of operation.

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 Special Mid Cap Value Fund 17

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
CLASS R6				2016			2015			2014			20131
Net asset value, beginning of period		$34.03			$30.71			$33.39			$30.90			$28.69
Net investment income		0.17			0.38	2		0.41	2		0.41	2		0.06	2
Net realized and unrealized gains (losses) on investments		3.10			4.30			0.05			4.43			2.15
Total from investment operations		3.27			4.68			0.46			4.84			2.21
Distributions to shareholders from
Net investment income		(0.35	)		(0.23	)		(0.23	)		(0.17	)		0.00
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00
Total distributions to shareholders		(0.54	)		(1.36	)		(3.14	)		(2.35	)		0.00
Net asset value, end of period		$36.76			$34.03			$30.71			$33.39			$30.90
Total return3		9.63	%		15.84	%		1.14	%		16.29	%		7.70	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.76	%		0.79	%		0.80	%		0.81	%
Net expenses		0.75	%		0.76	%		0.79	%		0.80	%		0.81	%
Net investment income		1.02	%		1.21	%		1.26	%		1.22	%		0.73	%
Supplemental data
Portfolio turnover rate		37	%		30	%		58	%		58	%		87	%
Net assets, end of period (000s omitted)		$601,892			$374,557			$105,973			$4,013			$27

¹  For the period from June 28, 2013 (commencement of class operations) to September 30, 2013

²  Calculated based upon average shares outstanding

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

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

18 Wells Fargo Special Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
ADMINISTRATOR CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$33.67			$30.45			$33.14			$30.71			$23.09			$18.04
Net investment income		0.12	1		0.26			0.31	1		0.15			0.20	1		0.11	1
Net realized and unrealized gains (losses) on investments		3.06			4.26			0.05			4.55			7.67			4.99
Total from investment operations		3.18			4.52			0.36			4.70			7.87			5.10
Distributions to shareholders from
Net investment income		(0.22	)		(0.17	)		(0.14	)		(0.09	)		(0.25	)		(0.05	)
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00			0.00
Total distributions to shareholders		(0.41	)		(1.30	)		(3.05	)		(2.27	)		(0.25	)		(0.05	)
Net asset value, end of period		$36.44			$33.67			$30.45			$33.14			$30.71			$23.09
Total return2		9.45	%		15.42	%		0.84	%		15.89	%		34.41	%		28.30	%
Ratios to average net assets (annualized)
Gross expenses		1.10	%		1.10	%		1.12	%		1.12	%		1.13	%		1.14	%
Net expenses		1.10	%		1.10	%		1.11	%		1.12	%		1.13	%		1.13	%
Net investment income		0.66	%		0.88	%		0.95	%		0.48	%		0.71	%		0.50	%
Supplemental data
Portfolio turnover rate		37	%		30	%		58	%		58	%		87	%		87	%
Net assets, end of period (000s omitted)		$1,003,549			$834,134			$394,188			$187,968			$117,087			$61,596

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 Special Mid Cap Value Fund 19

(For a share outstanding throughout each period)

	Six months ended March 31, 2017 (unaudited)			Year ended September 30
INSTITUTIONAL CLASS				2016			2015			2014			2013			2012
Net asset value, beginning of period		$34.00			$30.70			$33.38			$30.91			$23.15			$18.10
Net investment income		0.16			0.35	1		0.41	1		0.24			0.20	1		0.16
Net realized and unrealized gains (losses) on investments		3.09			4.29			0.04			4.57			7.81			5.01
Total from investment operations		3.25			4.64			0.45			4.81			8.01			5.17
Distributions to shareholders from
Net investment income		(0.33	)		(0.21	)		(0.22	)		(0.16	)		(0.25	)		(0.12	)
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00			0.00
Total distributions to shareholders		(0.52	)		(1.34	)		(3.13	)		(2.34	)		(0.25	)		(0.12	)
Net asset value, end of period		$36.73			$34.00			$30.70			$33.38			$30.91			$23.15
Total return2		9.60	%		15.73	%		1.10	%		16.17	%		34.90	%		28.65	%
Ratios to average net assets (annualized)
Gross expenses		0.85	%		0.86	%		0.85	%		0.85	%		0.85	%		0.87	%
Net expenses		0.85	%		0.86	%		0.85	%		0.85	%		0.85	%		0.87	%
Net investment income		0.92	%		1.07	%		1.23	%		0.81	%		0.72	%		0.76	%
Supplemental data
Portfolio turnover rate		37	%		30	%		58	%		58	%		87	%		87	%
Net assets, end of period (000s omitted)		$3,666,520			$2,325,777			$411,919			$174,989			$66,056			$125,623

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.

20 Wells Fargo Special Mid Cap Value 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 (“ASC”) Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Special Mid Cap Value 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.

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 companies 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 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.

Notes to financial statements (unaudited) Wells Fargo Special Mid Cap Value Fund 21

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.

Security transactions and income recognition

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

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior the Fund’s fiscal year end may be categorized as a tax return of capital.

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 September 30, 2016, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $49,637 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 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.

22 Wells Fargo Special Mid Cap Value 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 March 31, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	234,921,118	$	0	$	0	$	234,921,118
Consumer staples		570,789,393		0		0		570,789,393
Energy		594,404,230		0		0		594,404,230
Financials		1,207,757,867		0		0		1,207,757,867
Health care		417,034,880		0		0		417,034,880
Industrials		932,220,397		0		0		932,220,397
Information technology		848,930,724		0		0		848,930,724
Materials		441,543,919		0		0		441,543,919
Real estate		416,120,474		0		0		416,120,474
Telecommunication services		80,234,637		0		0		80,234,637
Utilities		427,227,585		0		0		427,227,585
Short-term investments
Investment companies		352,587,499		0		0		352,587,499
Investments measured at net asset value*								114,306,901
Total assets	$	6,523,772,723	$	0	$	0	$	6,638,079,624

* 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 $114,306,901 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 March 31, 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 0.75% and declining to 0.63% as the average daily net assets of the Fund increase. For the six months ended March 31, 2017, the management fee was equivalent to an annual rate of 0.68% 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 0.45% and declining to 0.30% 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, Class R		0.21	%
Class R6		0.03
Administrator Class, Institutional Class		0.13

Notes to financial statements (unaudited) Wells Fargo Special Mid Cap Value Fund 23

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 January 31, 2018 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.22% for Class A shares, 1.97% for Class C shares, 1.47% for Class R shares, 0.79% for Class R6 shares, 1.14% for Administration Class shares, and 0.87% 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 March 31, 2017, State Street Bank and Trust Company, the Fund’s custodian, reimbursed the Fund $5,405 certain out-of-pocket expenses that were billed to the Fund in error from 1998-2015. This amount is included in dividend income on the Statement of Operations. In addition, Funds Management was also reimbursed $3,058 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 C and Class R shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class C and Class R 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 and 0.25% of the average daily net assets of Class R shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2017, Funds Distributor received $120,689 from the sale of Class A shares and $816 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, Class R, 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 March 31, 2017 were $3,000,126,818 and $2,029,903,289, respectively.

The Fund may purchase or sell investment securities to other Wells Fargo affiliates pursuant to Rule 17a-7 of the 1940 Act and 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 months ended March 31, 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.

24 Wells Fargo Special Mid Cap Value Fund Notes to financial statements (unaudited)

8. 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.

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 Special Mid Cap Value 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 Special Mid Cap Value 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 Special Mid Cap Value 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 Special Mid Cap Value 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.

302891 05-17 SA234/SAR234 03-17

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

A Portfolio of Investments for each series of Wells Fargo Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS    

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Not applicable.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	May 24, 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:	May 24, 2017
By:
	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date:	May 24, 2017
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date:	May 24, 2017