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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09253

Wells Fargo Funds Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: 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: September 30, 2017

ITEM 1. REPORT TO STOCKHOLDERS

Annual Report

September 30, 2017

Wells Fargo Diversified Capital Builder Fund

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	17
Statement of operations	18
Statement of changes in net assets	19
Financial highlights	20
Notes to financial statements	24
Report of independent registered public accounting firm	29
Other information	30
List of abbreviations	37

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Diversified Capital Builder Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Diversified Capital Builder Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Diversified Capital Builder Fund Letter to shareholders (unaudited)

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it

can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 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 Capital Management Incorporated

Portfolio manager

Margaret Patel

Average annual total returns (%) as of September 30, 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		7.06		12.41		5.80		13.62		13.75		6.42		1.14		1.14
Class C (EKBCX)	1-22-1998		11.85		12.89		5.63		12.85		12.89		5.63		1.89		1.89
Administrator Class (EKBDX)	7-30-2010		–		–		–		13.75		13.97		6.61		1.06		1.05
Institutional Class (EKBYX)	1-26-1998		–		–		–		14.11		14.19		6.81		0.81		0.78
Diversified Capital Builder Blended Index4	–		–		–		–		16.13		12.30		7.68		–		–
ICE BofAML U.S. Cash Pay High Yield Index5	–		–		–		–		9.06		6.35		7.65		–		–
Russell 1000® Index6	–		–		–		–		18.54		14.27		7.55		–		–

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. 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 7.

Performance highlights (unaudited) Wells Fargo Diversified Capital Builder Fund 7

Growth of $10,000 investment as of September 30, 2017⁷

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 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 ICE BofAML U.S. Cash Pay High Yield Index (25%). You cannot invest directly in an index.

⁵  The ICE BofAML U.S. Cash Pay High Yield Index (formerly known as 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 chart compares the performance of Class A shares for the most recent ten years with the Diversified Capital Builder Blended Index, the ICE BofAML U.S. Cash Pay High Yield Index, and the Russell 1000^® Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁸  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.

⁹  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.

* This security was not held in the Fund at the end of the reporting period.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Diversified Capital Builder Blended Index, for the 12-month period that ended September 30, 2017.

∎ The Fund underperformed the benchmark because of a below-benchmark weighting to the financials sector; a relative overweight in the energy sector; and a relative underweight in the information technology (IT) sector, particularly of several large IT companies that make up a significant portion of the sector.

∎ In the Fund’s bond portfolio, holdings outperformed the bond portion of the benchmark index, the ICE BofAML U.S. Cash Pay High Yield Index as the portfolio had somewhat longer-than-average duration compared with that bond index.

Equities advanced with relatively low volatility during the period.

Prices for stocks held up better than high-yield bonds during the period. Equities advanced with relatively low volatility over the course of the period, reflecting continuing, though modest, economic growth. Bond performance was more mixed, with prices of both Treasury and investment-grade corporate bonds declining slightly as their yields rose; in contrast, the high-yield bond sector generally experienced modest price gains as yields for this sector declined.

In the stock market, stocks advanced steadily throughout the period, with only very small short-lived pullbacks before continuing to advance. Many investors were concerned that stock prices would decline if interest rates went up or if economic growth remained very modest or that companies would not be able to maintain their historically high profit margins and profit growth. However, these concerns did not negatively affect the stock market’s advance, as investors focused more on rising profits than they did on the relatively small rise in interest rates. In addition, it became clear that the Federal Reserve was sensitive to market concerns about rising rates and it would attempt to adjust interest rates in a gradual manner, which was judged as unlikely to affect economic growth and stock valuations adversely.

The Fund had outperformance relative to its equity benchmark in the health care, industrials, utilities, and real estate sectors. The Fund also benefitted from one takeover in the industrials sector. Equity detractors were primarily in the energy sector, as well as several health care and IT issues. In the Fund’s equity portfolio, outperformers in the IT sector included Broadcom Limited, Amphenol Corporation, and Adobe Systems Incorporated. In the industrials sector, several defense-focused companies contributed to performance, such as Orbital ATK, Incorporated, which received a takeover bid from Northrop Grumman Corporation*; Raytheon Company; and Huntington Ingalls Industries, Incorporated. Real estate companies contributing were Crown Castle International Corporation and Equinix, Incorporated. Detractors among stock holdings were primarily in the energy sector, including Kinder Morgan, Incorporated, and Plains All American Pipeline, L.P. Also underperforming were health care pharmaceuticals company Allergan plc and IT company QUALCOMM Incorporated.

In the bond market, once again fears of sharply higher interest rates proved overstated as the rate rise in the Treasury market proved modest. To illustrate, the yield to maturity of representative Treasury bonds maturing in 10 years yielded 1.60% at the beginning of the period and had a yield at the end of the period of 2.33%. Investment-grade corporate bonds reflected this gently rising rate trend. Bond prices and yields move in opposite directions.

Ten largest holdings (%) as of September 30, 20178
Microsoft Corporation	4.27
Broadcom Limited	3.61
Kinder Morgan Incorporated	3.31
Amphenol Corporation Class A	3.24
Alphabet Incorporated Class A	3.10
Leidos Holdings Incorporated	2.89
Adobe Systems Incorporated	2.69
LyondellBasell Industries NV Class A	2.68
Andeavor Logistics LP	2.63
Allergan plc	2.61

High-yield bonds, which are somewhat more sensitive to prospects of future economic growth than are investment-grade bonds, had declines in yield and small increases in prices, with the average yield to maturity declining from 6.25% at the beginning of the period to 5.43% at the end of the period. High-yield bonds benefited not only from their wide yield spread over comparable maturity Treasury bonds—from a difference of about 510 basis points (bps; 100 bps equal 1.00%) in excess of Treasury rates at the beginning of the period to 366 bps at period-end—but also from diminished concerns about the potential for sharp rises in Treasury rates and default rates. Investors’ increased risk appetites caused high-yield bond yields to decline in the face of modestly rising Treasury rates.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Diversified Capital Builder Fund 9

Portfolio allocation as of September 30, 2017⁹

While intermediate Treasury yields slightly increased in the fiscal year, resulting in drops in prices, yields for high-yield bonds generally declined over the same period, resulting in price gains. Because of our somewhat longer duration, many of our holdings benefited from the drops in yield, allowing prices to rise somewhat. Relative underperformers in the bond portfolio included several energy bonds and select industrials and specialty pharmaceutical bonds. Bonds that outperformed included Tronox Finance plc, Rayonier Advanced Materials Incorporated, and Koppers Holdings Incorporated^* in the basic materials sector as well as IT companies Micron Technology, Incorporated, and Seagate Technology plc. Underperformers in the bond

portfolio included energy companies Plains All American Pipeline, L.P.; Tennessee Gas Pipeline Company, LLC; and several general industrials companies, such as TransDigm Group Incorporated.

Our outlook remains one of cautious optimism.

While the pace of economic growth is modest compared with previous recoveries after recessions, the current expansion is one of the longest. We believe the intrinsic dynamism, creativity, and basis strengths of the U.S. economy should provide opportunities for the stock market over the next year. Slow but steady gains in employment should help stimulate demand for goods and services. Furthermore, the expansion of low-cost shale gas and petroleum liquids should continue to provide a boon to both businesses and consumers, improving the competitive positions of U.S. companies and offering some cost relief to consumers for utility and fuel costs.

We are somewhat cautious that the high-yield bond market might not offer the relative outperformance we have seen over the past few years. However, we believe that by concentrating our holdings in companies with above-average credit quality, our holdings may provide enough income above that of risk-free alternatives to compensate for their credit risk.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,052.67	$	5.73		1.11	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.49	$	5.64		1.11	%
Class C
Actual	$	1,000.00	$	1,049.85	$	9.58		1.86	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.72	$	9.42		1.86	%
Administrator Class
Actual	$	1,000.00	$	1,054.75	$	5.30		1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.91	$	5.21		1.03	%
Institutional Class
Actual	$	1,000.00	$	1,056.04	$	4.02		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.16	$	3.95		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—September 30, 2017 Wells Fargo Diversified Capital Builder Fund 11

Security name	Shares		Value
Common Stocks: 83.11%
Consumer Discretionary: 1.27%
Household Durables: 1.27%
Leggett & Platt Incorporated		250,000	$	11,932,500
Consumer Staples: 1.46%
Food & Staples Retailing: 0.63%
CVS Health Corporation		60,000		4,879,200
Sysco Corporation		20,000		1,079,000
				5,958,200
Food Products: 0.83%
ConAgra Foods Incorporated		120,000		4,048,800
Lamb Weston Holdings Incorporated		80,001		3,751,247
				7,800,047
Energy: 12.98%
Oil, Gas & Consumable Fuels: 12.98%
Andeavor Logistics LP		495,000		24,779,700
EOG Resources Incorporated		35,000		3,385,900
EQT Corporation		100,000		6,524,000
Kinder Morgan Incorporated		1,625,000		31,167,500
ONEOK Incorporated		150,000		8,311,500
Plains All American Pipeline LP		1,120,000		23,732,800
The Williams Companies Incorporated		810,000		24,308,100
				122,209,500
Health Care: 13.54%
Health Care Equipment & Supplies: 6.98%
Abbott Laboratories		380,000		20,276,800
Becton Dickinson & Company		120,000		23,514,000
C.R. Bard Incorporated		5,000		1,602,500
Teleflex Incorporated		80,000		19,357,600
West Pharmaceutical Services Incorporated		10,000		962,600
				65,713,500
Life Sciences Tools & Services: 3.72%
Thermo Fisher Scientific Incorporated		100,000		18,920,000
Waters Corporation †		90,000		16,156,800
				35,076,800
Pharmaceuticals: 2.84%
Allergan plc		120,000		24,594,000
Eli Lilly & Company		25,000		2,138,500
				26,732,500

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

12 Wells Fargo Diversified Capital Builder Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Industrials: 12.61%
Aerospace & Defense: 6.66%
Curtiss-Wright Corporation		130,000	$	13,590,200
Huntington Ingalls Industries Incorporated		65,000		14,718,600
Lockheed Martin Corporation		29,000		8,998,410
Orbital ATK Incorporated		30,000		3,994,800
Raytheon Company		115,000		21,456,700
				62,758,710
Building Products: 0.46%
Apogee Enterprises Incorporated		90,000		4,343,400
Electrical Equipment: 1.13%
AMETEK Incorporated		80,000		5,283,200
Eaton Corporation plc		70,000		5,375,300
				10,658,500
Industrial Conglomerates: 1.12%
Honeywell International Incorporated		40,000		5,669,600
Roper Industries Incorporated		20,000		4,868,000
				10,537,600
Machinery: 3.24%
Cummins Incorporated		10,000		1,680,300
IDEX Corporation		95,000		11,539,650
John Bean Technologies Corporation		130,000		13,143,000
Oshkosh Corporation		50,000		4,127,000
				30,489,950
Information Technology: 31.46%
Communications Equipment: 0.04%
CommScope Holdings Incorporated †		10,000		332,100
Electronic Equipment, Instruments & Components: 5.90%
Amphenol Corporation Class A		360,000		30,470,400
Corning Incorporated		670,000		20,046,400
FLIR Systems Incorporated		130,000		5,058,300
				55,575,100
Internet Software & Services: 3.10%
Alphabet Incorporated Class A †		30,000		29,211,600
IT Services: 2.89%
Leidos Holdings Incorporated		460,000		27,241,200
Semiconductors & Semiconductor Equipment: 10.87%
Broadcom Limited		140,000		33,955,600
Cypress Semiconductor Corporation «		600,000		9,012,000
Microsemi Corporation †		290,000		14,929,200

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

Portfolio of investments—September 30, 2017 Wells Fargo Diversified Capital Builder Fund 13

Security name						Shares		Value
Semiconductors & Semiconductor Equipment (continued)
QUALCOMM Incorporated							70,000	$	3,628,800
Texas Instruments Incorporated							145,000		12,997,800
Versum Materials Incorporated							170,000		6,599,400
Xilinx Incorporated							300,000		21,249,000
									102,371,800
Software: 7.74%
Adobe Systems Incorporated †							170,000		25,360,600
Microsoft Corporation							540,000		40,224,600
Synopsys Incorporated †							90,000		7,247,700
									72,832,900
Technology Hardware, Storage & Peripherals: 0.92%
Western Digital Corporation							100,000		8,640,000
Materials: 6.16%
Chemicals: 4.84%
Ashland Global Holdings Incorporated							120,000		7,846,800
Celanese Corporation Series A							45,000		4,692,150
DowDuPont Incorporated							100,000		6,923,000
LyondellBasell Industries NV Class A							255,000		25,257,750
Olin Corporation							25,000		856,250
									45,575,950
Containers & Packaging: 1.32%
Sealed Air Corporation							290,000		12,388,800
Real Estate: 1.85%
Equity REITs: 1.85%
Crown Castle International Corporation							20,000		1,999,600
Equinix Incorporated							5,000		2,231,500
Sabra Health Care REIT Incorporated							250,000		5,485,000
Saul Centers Incorporated							125,000		7,738,750
									17,454,850
Utilities: 1.78%
Gas Utilities: 1.78%
Atmos Energy Corporation							200,000		16,768,000
Total Common Stocks (Cost $666,973,093)									782,603,507
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 13.30%
Consumer Discretionary: 0.64%
Auto Components: 0.06%
Dana Holding Corporation		5.50	%		12-15-2024	$	500,000		525,000

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

14 Wells Fargo Diversified Capital Builder Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Hotels, Restaurants & Leisure: 0.22%
Speedway Motorsports Incorporated		5.13	%		2-1-2023	$	2,000,000	$	2,065,000
Media: 0.31%
McGraw-Hill Global Education Holdings LLC 144A«		7.88			5-15-2024		3,000,000		2,958,750
Specialty Retail: 0.05%
Group 1 Automotive Incorporated		5.00			6-1-2022		500,000		518,125
Consumer Staples: 0.11%
Food Products: 0.11%
Lamb Weston Holdings Incorporated 144A		4.63			11-1-2024		1,000,000		1,042,500
Energy: 0.72%
Oil, Gas & Consumable Fuels: 0.72%
Plains All American Pipeline LP		4.65			10-15-2025		6,000,000		6,176,773
Tennessee Gas Pipeline Company		7.00			3-15-2027		534,000		632,184
									6,808,957
Health Care: 2.61%
Health Care Equipment & Supplies: 0.28%
Teleflex Incorporated		4.88			6-1-2026		2,500,000		2,593,750
Health Care Providers & Services: 2.15%
AMN Healthcare Incorporated 144A		5.13			10-1-2024		10,512,000		10,893,060
DaVita HealthCare Partners Incorporated		5.13			7-15-2024		1,000,000		995,625
HealthSouth Corporation		5.13			3-15-2023		1,000,000		1,033,450
West Street Merger Sub Incorporated 144A		6.38			9-1-2025		7,400,000		7,363,000
									20,285,135
Health Care Technology: 0.18%
Quintiles IMS Holdings Incorporated 144A		4.88			5-15-2023		1,600,000		1,664,000
Industrials: 2.04%
Aerospace & Defense: 1.31%
Huntington Ingalls Industries Incorporated 144A		5.00			11-15-2025		5,200,000		5,616,000
Moog Incorporated 144A		5.25			12-1-2022		1,500,000		1,568,985
TransDigm Group Incorporated		6.38			6-15-2026		3,500,000		3,585,330
TransDigm Group Incorporated		6.50			5-15-2025		1,500,000		1,545,000
									12,315,315
Commercial Services & Supplies: 0.17%
Acco Brands Corporation 144A		5.25			12-15-2024		1,500,000		1,556,250
Machinery: 0.34%
Oshkosh Corporation		5.38			3-1-2025		2,000,000		2,120,000
SPX FLOW Incorporated 144A		5.88			8-15-2026		1,000,000		1,055,000
									3,175,000

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

Portfolio of investments—September 30, 2017 Wells Fargo Diversified Capital Builder Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Trading Companies & Distributors: 0.22%
Wesco Distribution Incorporated		5.38	%		6-15-2024	$	2,000,000	$	2,110,000
Information Technology: 3.64%
Communications Equipment: 0.67%
CommScope Incorporated 144A		5.50			6-15-2024		6,000,000		6,277,500
Electronic Equipment, Instruments & Components: 1.57%
Belden Incorporated 144A		5.25			7-15-2024		3,000,000		3,127,500
TTM Technologies Incorporated 144A		5.63			10-1-2025		11,505,000		11,641,620
									14,769,120
Semiconductors & Semiconductor Equipment: 0.50%
Micron Technology Incorporated 144A		5.25			8-1-2023		1,500,000		1,564,500
Versum Materials Incorporated 144A		5.50			9-30-2024		3,000,000		3,180,000
									4,744,500
Software: 0.79%
Nuance Communications Company		6.00			7-1-2024		2,000,000		2,165,600
Symantec Corporation 144A		5.00			4-15-2025		5,000,000		5,228,150
									7,393,750
Technology Hardware, Storage & Peripherals: 0.11%
Diebold Incorporated		8.50			4-15-2024		1,000,000		1,084,020
Materials: 3.15%
Chemicals: 2.80%
A. Schulman Incorporated		6.88			6-1-2023		2,375,000		2,464,063
Koppers Incorporated 144A		6.00			2-15-2025		8,190,000		8,804,250
Olin Corporation		5.50			8-15-2022		6,000,000		6,465,000
Rayonier Advanced Materials Products Incorporated 144A		5.50			6-1-2024		6,835,000		6,621,406
Valvoline Incorporated 144A		4.38			8-15-2025		2,000,000		2,035,200
									26,389,919
Containers & Packaging: 0.35%
Berry Plastics Corporation		5.13			7-15-2023		3,120,000		3,260,400
Real Estate: 0.39%
Equity REITs: 0.39%
Equinix Incorporated		5.75			1-1-2025		1,000,000		1,076,250
Iron Mountain Incorporated 144A		5.38			6-1-2026		2,000,000		2,095,000
Iron Mountain Incorporated		5.75			8-15-2024		500,000		515,625
									3,686,875
Total Corporate Bonds and Notes (Cost $121,459,495)									125,223,866
Yankee Corporate Bonds and Notes: 2.72%
Financials: 0.55%
Diversified Financial Services: 0.55%
Tronox Finance plc 144A		5.75			10-1-2025		5,000,000		5,125,000

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

16 Wells Fargo Diversified Capital Builder Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 0.29%
Pharmaceuticals: 0.29%
Mallinckrodt plc 144A«		5.50	%		4-15-2025	$	3,000,000	$	2,700,000
Industrials: 0.22%
Electrical Equipment: 0.22%
Sensata Technologies BV 144A		4.88			10-15-2023		2,000,000		2,102,500
Information Technology: 1.66%
Technology Hardware, Storage & Peripherals: 1.66%
Seagate HDD		4.75			6-1-2023		9,500,000		9,628,630
Seagate HDD		4.88			6-1-2027		6,396,000		6,028,466
									15,657,096
Total Yankee Corporate Bonds and Notes (Cost $24,461,887)									25,584,596
	Yield					Shares
Short-Term Investments: 1.53%
Investment Companies: 1.53%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25					8,312,789		8,313,620
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92					6,114,337		6,114,337
Total Short-Term Investments (Cost $14,427,957)									14,427,957

Total investments in securities (Cost $827,322,432)	100.66	%		947,839,926
Other assets and liabilities, net	(0.66	)		(6,242,206	)
Total net assets	100.00	%	$	941,597,720

† 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 company purchased with cash collateral received from securities on loan.

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

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized  gains (losses)		Net change in unrealized  gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		9,035,155		128,916,157		129,638,523		8,312,789	$	651	$	0	$	33,559	$	8,313,620
Wells Fargo Government Money Market Fund Select Class		3,773,354		310,875,081		308,534,098		6,114,337		0		0		60,110		6,114,337
									$	651	$	0	$	93,669	$	14,427,957		1.53	%

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

Statement of assets and liabilities—September 30, 2017 Wells Fargo Diversified Capital Builder Fund 17

Assets
Investments in unaffiliated securities, (including $8,191,683 of securities on loan) at value (cost $812,894,475)	$	933,411,969
Investments in affiliated securities, at value (cost $14,427,957)		14,427,957
Receivable for Fund shares sold		998,316
Receivable for dividends and interest		2,454,652
Receivable for securities lending income		1,825
Prepaid expenses and other assets		184,018
Total assets		951,478,737
Liabilities
Payable upon receipt of securities loaned		8,312,132
Payable for Fund shares redeemed		620,032
Management fee payable		495,373
Administration fees payable		147,828
Distribution fees payable		73,734
Accrued expenses and other liabilities		231,918
Total liabilities		9,881,017
Total net assets	$	941,597,720
NET ASSETS CONSIST OF
Paid-in capital	$	775,456,065
Overdistributed net investment income		(26,224	)
Accumulated net realized gains on investments		45,650,385
Net unrealized gains on investments		120,517,494
Total net assets	$	941,597,720
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	551,272,488
Shares outstanding – Class A1		53,501,424
Net asset value per share – Class A		$10.30
Maximum offering price per share – Class A2		$10.93
Net assets – Class C	$	117,346,204
Shares outstanding – Class C1		11,413,694
Net asset value per share – Class C		$10.28
Net assets – Administrator Class	$	10,224,786
Shares outstanding – Administrator Class1		991,106
Net asset value per share – Administrator Class		$10.32
Net assets – Institutional Class	$	262,754,242
Shares outstanding – Institutional Class1		25,642,399
Net asset value per share – Institutional Class		$10.25

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.

18 Wells Fargo Diversified Capital Builder Fund Statement of operations—year ended September 30, 2017

Investment income
Dividends	$	11,686,948
Interest		9,030,608
Income from affiliated securities		93,669
Total investment income		20,811,225
Expenses
Management fee		5,177,214
Administration fees
Class A		1,089,132
Class B		1,234	1
Class C		196,491
Administrator Class		22,832
Institutional Class		248,254
Shareholder servicing fees
Class A		1,296,585
Class B		1,469	1
Class C		233,918
Administrator Class		43,619
Distribution fees
Class B		4,406	1
Class C		701,755
Custody and accounting fees		40,126
Professional fees		45,984
Registration fees		64,461
Shareholder report expenses		50,534
Trustees’ fees and expenses		20,118
Other fees and expenses		5,198
Total expenses		9,243,330
Less: Fee waivers and/or expense reimbursements		(14,870	)
Net expenses		9,228,460
Net investment income		11,582,765
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		45,194,556
Affiliated securities		651
Net realized gains on investments		45,195,207
Net change in unrealized gains (losses) on investments		48,014,577
Net realized and unrealized gains (losses) on investments		93,209,784
Net increase in net assets resulting from operations	$	104,792,549

¹  For the period from October 1, 2016 to May 5, 2017. Effective at the close of business on May 5, 2017, 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 Diversified Capital Builder Fund 19

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment income				$	11,582,765					$	10,579,137
Net realized gains on investments					45,195,207						56,562,113
Net change in unrealized gains (losses) on investments					48,014,577						57,125,458
Net increase in net assets resulting from operations					104,792,549						124,266,708
Distributions to shareholders from
Net investment income
Class A					(7,661,442	)					(7,154,781	)
Class B					(3,723	)1					(13,202	)
Class C					(923,064	)					(576,356	)
Administrator Class					(276,788	)					(281,790	)
Institutional Class					(3,377,945	)					(2,192,889	)
Net realized gains
Class A					(37,599,086	)					(38,200,806	)
Class B					(82,941	)1					(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					(68,105,246	)					(63,771,330	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		10,742,727			105,549,123			3,675,778			34,640,601
Class B		8,989	1		89,544	1		6,490			57,479
Class C		6,100,806			60,045,789			1,407,777			13,010,103
Administrator Class		1,150,741			11,315,314			1,842,765			16,600,389
Institutional Class		15,573,690			152,910,373			2,616,107			24,432,480
					329,910,143						88,741,052
Reinvestment of distributions
Class A		4,536,323			43,125,024			5,090,728			43,117,960
Class B		7,409	1		70,848	1		25,632			216,784
Class C		629,617			5,974,204			606,197			5,111,831
Administrator Class		179,684			1,707,679			89,236			775,222
Institutional Class		1,417,203			13,422,904			1,260,658			10,654,067
					64,300,659						59,875,864
Payment for shares redeemed
Class A		(8,712,586	)		(86,111,676	)		(5,956,354	)		(54,335,024	)
Class B		(166,895	)1		(1,667,192	)1		(212,484	)		(1,934,449	)
Class C		(2,103,704	)		(20,778,345	)		(1,077,109	)		(9,826,218	)
Administrator Class		(2,486,279	)		(24,695,561	)		(650,695	)		(5,982,660	)
Institutional Class		(3,745,131	)		(36,861,266	)		(2,203,621	)		(20,087,169	)
					(170,114,040	)					(92,165,520	)
Net increase in net assets resulting from capital share transactions					224,096,762						56,451,396
Total increase in net assets					260,784,065						116,946,774
Net assets
Beginning of period				��	680,813,655						563,866,881
End of period				$	941,597,720					$	680,813,655
Undistributed (overdistributed) net investment income				$	(26,224	)				$	422,976

¹  For the period from October 1, 2016 to May 5, 2017. Effective at the close of business on May 5, 2017, 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.

20 Wells Fargo Diversified Capital Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$9.96			$9.12			$9.31			$7.89			$6.93
Net investment income		0.14	1		0.17			0.11			0.09			0.12
Net realized and unrealized gains (losses) on investments		1.12			1.71			(0.20	)		1.41			0.96
Total from investment operations		1.26			1.88			(0.09	)		1.50			1.08
Distributions to shareholders from
Net investment income		(0.14	)		(0.15	)		(0.10	)		(0.08	)		(0.12	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00
Total distributions to shareholders		(0.92	)		(1.04	)		(0.10	)		(0.08	)		(0.12	)
Net asset value, end of period		$10.30			$9.96			$9.12			$9.31			$7.89
Total return2		13.62	%		22.85	%		(1.05	)%		19.10	%		15.75	%
Ratios to average net assets (annualized)
Gross expenses		1.12	%		1.14	%		1.19	%		1.21	%		1.20	%
Net expenses		1.12	%		1.14	%		1.19	%		1.20	%		1.20	%
Net investment income		1.43	%		1.77	%		1.17	%		1.09	%		1.66	%
Supplemental data
Portfolio turnover rate		54	%		73	%		69	%		82	%		70	%
Net assets, end of period (000s omitted)		$551,272			$467,503			$402,303			$431,388			$399,535

¹  Calculated based upon average shares outstanding.

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Diversified Capital Builder Fund 21

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$9.96			$9.12			$9.32			$7.90			$6.94
Net investment income		0.08			0.10			0.05			0.03			0.07
Net realized and unrealized gains (losses) on investments		1.11			1.72			(0.22	)		1.41			0.96
Total from investment operations		1.19			1.82			(0.17	)		1.44			1.03
Distributions to shareholders from
Net investment income		(0.09	)		(0.09	)		(0.03	)		(0.02	)		(0.07	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00
Total distributions to shareholders		(0.87	)		(0.98	)		(0.03	)		(0.02	)		(0.07	)
Net asset value, end of period		$10.28			$9.96			$9.12			$9.32			$7.90
Total return1		12.85	%		21.96	%		(1.88	)%		18.21	%		14.86	%
Ratios to average net assets (annualized)
Gross expenses		1.87	%		1.89	%		1.94	%		1.96	%		1.95	%
Net expenses		1.87	%		1.89	%		1.94	%		1.95	%		1.95	%
Net investment income		0.65	%		1.03	%		0.41	%		0.34	%		0.91	%
Supplemental data
Portfolio turnover rate		54	%		73	%		69	%		82	%		70	%
Net assets, end of period (000s omitted)		$117,346			$67,630			$53,373			$45,670			$39,758

¹  Total return calculations do not include any sales charges.

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

22 Wells Fargo Diversified Capital Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$9.97			$9.12			$9.32			$7.90			$6.94
Net investment income		0.16	1		0.18	1		0.14	1		0.12	1		0.14	1
Net realized and unrealized gains (losses) on investments		1.12			1.73			(0.22	)		1.41			0.96
Total from investment operations		1.28			1.91			(0.08	)		1.53			1.10
Distributions to shareholders from
Net investment income		(0.15	)		(0.17	)		(0.12	)		(0.11	)		(0.14	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00
Total distributions to shareholders		(0.93	)		(1.06	)		(0.12	)		(0.11	)		(0.14	)
Net asset value, end of period		$10.32			$9.97			$9.12			$9.32			$7.90
Total return		13.75	%		23.14	%		(0.92	)%		19.39	%		16.06	%
Ratios to average net assets (annualized)
Gross expenses		1.04	%		1.06	%		1.05	%		1.04	%		1.04	%
Net expenses		1.04	%		1.03	%		0.95	%		0.95	%		0.95	%
Net investment income		1.58	%		1.89	%		1.41	%		1.33	%		1.84	%
Supplemental data
Portfolio turnover rate		54	%		73	%		69	%		82	%		70	%
Net assets, end of period (000s omitted)		$10,225			$21,398			$7,898			$9,411			$6,836

¹  Calculated based upon average shares outstanding.

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

Financial highlights Wells Fargo Diversified Capital Builder Fund 23

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$9.90			$9.07			$9.27			$7.85			$6.90
Net investment income		0.19			0.20			0.15			0.13	1		0.15
Net realized and unrealized gains (losses) on investments		1.11			1.71			(0.21	)		1.41			0.95
Total from investment operations		1.30			1.91			(0.06	)		1.54			1.10
Distributions to shareholders from
Net investment income		(0.17	)		(0.19	)		(0.14	)		(0.12	)		(0.15	)
Net realized gains		(0.78	)		(0.89	)		0.00			0.00			0.00
Total distributions to shareholders		(0.95	)		(1.08	)		(0.14	)		(0.12	)		(0.15	)
Net asset value, end of period		$10.25			$9.90			$9.07			$9.27			$7.85
Total return		14.11	%		23.28	%		(0.75	)%		19.68	%		16.17	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.81	%		0.79	%		0.78	%		0.77	%
Net expenses		0.78	%		0.78	%		0.77	%		0.78	%		0.77	%
Net investment income		1.71	%		2.14	%		1.58	%		1.52	%		2.08	%
Supplemental data
Portfolio turnover rate		54	%		73	%		69	%		82	%		70	%
Net assets, end of period (000s omitted)		$262,754			$122,769			$97,251			$100,160			$149,790

¹  Calculated based upon average shares outstanding.

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

24 Wells Fargo Diversified Capital Builder Fund Notes to financial statements

1. ORGANIZATION

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

Effective at the close of business on May 5, 2017, 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 May 5, 2017.

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, 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

Notes to financial statements Wells Fargo Diversified Capital Builder Fund 25

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 income from affiliates securities 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.

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 to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $826,765,179 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	136,370,748
Gross unrealized losses		(15,296,001	)
Net unrealized gains	$	121,074,747

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference

26 Wells Fargo Diversified Capital Builder Fund Notes to financial statements

causing such reclassifications is due to recognition of partnership income. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Overdistributed net investment income	Accumulated net realized gains on investments
$(5,808)	$210,997	$(205,189)

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 September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common Stocks
Consumer discretionary	$	11,932,500	$	0	$	0	$	11,932,500
Consumer staples		13,758,247		0		0		13,758,247
Energy		122,209,500		0		0		122,209,500
Health care		127,522,800		0		0		127,522,800
Industrials		118,788,160		0		0		118,788,160
Information technology		296,204,700		0		0		296,204,700
Materials		57,964,750		0		0		57,964,750
Real estate		17,454,850		0		0		17,454,850
Utilities		16,768,000		0		0		16,768,000
Corporate bonds and notes		0		125,223,866		0		125,223,866
Yankee corporate bonds and notes		0		25,584,596		0		25,584,596
Short-term investments
Investment companies		6,114,337		0		0		6,114,337
Investments measured at net asset value*								8,313,620
Total assets	$	788,717,844	$	150,808,462	$	0	$	947,839,926

* 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 $8,313,620 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo Diversified Capital Builder Fund 27

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At September 30, 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 year ended September 30, 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, Insitutional 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 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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $112,883 from the sale of Class A shares and $123 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A and Class B shares for the year ended September 30, 2017.

28 Wells Fargo Diversified Capital Builder Fund Notes to financial statements

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund had $3,803,750 and $11,316,753 in interfund purchases and sales, respectively, during the year ended September 30, 2017.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $606,528,579 and $437,100,098, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended September 30, 2017 and September 30, 2016 were as follows:

	Year ended September 30
	2017		2016
Ordinary income	$	12,701,986	$	10,219,018
Long-term capital gain		55,403,260		53,552,312

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$16,354,603	$28,819,449	$121,074,747

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.

Report of independent registered public accounting firm Wells Fargo Diversified Capital Builder Fund 29

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Diversified Capital Builder Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Diversified Capital Builder Fund as of September 30, 2017, the results of its operations for the year then ended, changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

30 Wells Fargo Diversified Capital Builder Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 35.19% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 852 of the Internal Revenue Code, $55,403,260 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $4,777,789 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended September 30, 2017, $5,440,051 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended September 30, 2017, $459,024 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Diversified Capital Builder Fund 31

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 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 investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

32 Wells Fargo 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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

Other information (unaudited) Wells Fargo Diversified Capital Builder Fund 33

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds and Assistant Treasurer of 76 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.

34 Wells Fargo Diversified Capital Builder Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Diversified Capital Builder Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by

Other information (unaudited) Wells Fargo Diversified Capital Builder Fund 35

Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Diversified Capital Builder Blended Index, for all periods under review except the ten-year period.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that

36 Wells Fargo Diversified Capital Builder Fund Other information (unaudited)

in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Diversified Capital Builder Fund 37

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306429 11-17 A225/AR225 09-17

Annual Report

September 30, 2017

Wells Fargo Diversified Income Builder Fund

Reduce clutter. Save trees.

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	18
Statement of operations	19
Statement of changes in net assets	20
Financial highlights	21
Notes to financial statements	25
Report of independent registered public accounting firm	30
Other information	31
List of abbreviations	38

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Diversified Income Builder Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Diversified Income Builder Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Diversified Income Builder Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

Notice to Shareholders

At a meeting held on November 9-10, 2017, the Board of Trustees of the Fund approved the following changes to the Fund’s strategy, to be effective January 2, 2018:

∎ The Fund’s target allocation will be adjusted to 60% to 90% of total assets in debt securities and 10% to 40% in equity securities. Currently, the Fund’s target allocation is 70% to 90% of total assets in debt securities and 10% to 30% in equity securities.

∎ The Fund’s principal investment strategy will be amended to include investment in master limited partnerships, real estate investment trusts, bank loans, municipal securities, and government debt; as well as equity and interest-rate futures and swaps.

∎ Up to 20% of the Fund’s total assets may be invested using a passive investment strategy by investing in a manner that attempts to replicate the performance of indexes.

Further information regarding these and other related changes can be found in the Product Alert dated November 13, 2017 and posted to the Fund’s website at wellsfargofunds.com

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.

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6 Wells Fargo Diversified Income 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 Capital Management Incorporated

Portfolio manager

Margaret Patel

Average annual total returns (%) as of September 30, 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		2.95		6.39		5.40		9.16		7.67		6.02		1.08		1.08
Class C (EKSCX)	2-1-1993		7.51		6.90		5.24		8.51		6.90		5.24		1.83		1.83
Administrator Class (EKSDX)	7-30-2010		–		–		–		9.45		7.87		6.16		1.00		0.90
Institutional Class (EKSYX)	1-13-1997		–		–		–		9.49		8.09		6.35		0.75		0.71
Diversified Income Builder Blended Index4	–		–		–		–		11.39		8.34		7.73		–		–
ICE BofAML U.S. Cash Pay High Yield Index5	–		–		–		–		9.06		6.35		7.65		–		–
Russell 1000® Index6	–		–		–		–		18.54		14.27		7.55		–		–

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. 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 7.

Performance highlights (unaudited) Wells Fargo Diversified Income Builder Fund 7

Growth of $10,000 investment as of September 30, 2017⁷

¹  Historical performance shown for the Administrator Class shares prior to their inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the 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 ICE BofAML U.S. Cash Pay High Yield Index (75%) and the Russell 1000^® Index (25%). You cannot invest directly in an index.

⁵  The ICE BofAML U.S. Cash Pay High Yield Index (formerly known as 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 chart compares the performance of Class A shares for the most recent ten years with the Diversified Income Builder Blended Index, the ICE BofAML U.S. Cash Pay High Yield Index, and the Russell 1000^® Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁸  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.

⁹  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.

* This security was not held in the Fund at the end of the reporting period.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Diversified Income Builder Blended Index, for the 12-month period that ended September 30, 2017.

∎ The Fund’s bond portfolio holdings slightly underperformed bonds in the index; the portfolio was weighted to above-average quality, and lower-quality issues outperformed the index as investors aggressively bid up prices of lower-quality bonds.

∎ The Fund benefited from equity holdings in the information technology (IT), basic materials, and industrials sectors. The Fund benefited from one defense-related takeover in the industrials group. Detractors to performance were several energy issues and select health care and IT companies.

High-yield bond yields declined as investors’ risk appetites increased.

In the bond market, once again fears of sharply higher interest rates proved overstated as the rate rise in the Treasury market was modest. To illustrate, the yield to maturity of representative Treasury bonds maturing in 10 years yielded 1.60% at the beginning of the period and had a yield at the end of the period of 2.33%. Investment-grade corporate bonds reflected this gently rising rate trend. Bond prices and yields move in opposite directions.

While intermediate Treasury yields slightly increased in the fiscal year, resulting in drops in prices, yields for high-yield bonds generally declined over the same period, resulting in price gains. Because of our somewhat longer portfolio duration, many of our holdings benefited from the drops in yield, allowing prices to rise somewhat. In the Fund’s bond portfolio, holdings in the basic materials and IT sectors were outperformers. Outperformers in the basic materials sector included Tronox Finance plc, Olin Corporation, and Rayonier Advanced Materials Incorporated. Contributing to performance in the IT sector were bonds of Micron Technology, Incorporated, and Seagate Technology plc. Detractors from bond performance included several industrial bonds, issues of energy companies, and specialty pharmaceuticals companies. Underperformers included bonds of cyclical Hertz Global Holdings, Incorporated*, and energy company Tennessee Gas Pipeline Company, LLC.

Ten largest holdings (%) as of September 30, 20178
Cheniere Corpus Christi Holdings LLC, 5.13%, 6-30-2027	3.40
AMN Healthcare Incorporated, 5.13%, 10-1-2024	3.28
Versum Materials Incorporated, 5.50%, 9-30-2024	1.97
Tronox Finance plc, 5.75%, 10-1-2025	1.93
Koppers Incorporated, 6.00%, 2-15-2025	1.90
Lamb Weston Holdings Incorporated, 4.63%, 11-1-2024	1.82
National Fuel Gas Company, 4.90%, 12-1-2021	1.71
Microsoft Corporation	1.65
HD Supply Incorporated, 5.75%, 4-15-2024	1.65
Iron Mountain Incorporated, 4.88%, 9-15-2027	1.64

High-yield bonds, which are somewhat more sensitive to prospects of future economic growth than are investment-grade bonds, had declines in yield and small increases in prices, with the average yield to maturity declining from 6.25% at the beginning of the period to 5.43% at period-end. High-yield bonds benefited not only from their wide yield spread over comparable maturity Treasury bonds—from a difference of about 510 basis points (bps; 100 bps equal 1.00%) in excess of Treasury rates at the beginning of the period to 366 bps at period-end—but also from diminished concerns about the potential for sharp rises in Treasury rates and default rates. Investors’ increased risk appetites caused high-yield bond yields to decline in the face of modestly rising Treasury rates.

In the stock market, stocks advanced steadily throughout the period, with only small short-lived pullbacks before continuing to advance again. Many investors were concerned that stock prices would decline if interest rates went up or if economic growth remained very modest or that companies would not be able to maintain their historically high profit margins and profit growth. However, these concerns did not negatively affect the stock market’s advance, as investors focused more on rising profits than they did on the relatively small rise in interest rates. In addition, it became clear that the Federal Reserve was sensitive to market concerns about rising rates and it would attempt to adjust interest rates in a gradual manner, which was judged as unlikely to affect economic growth and stock valuations adversely.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Diversified Income Builder Fund 9

Portfolio allocation as of September 30, 2017⁹

In the Fund’s equity portfolio, outperformers in the IT sector included Broadcom Limited, Amphenol Corporation, and Adobe Systems Incorporated. In the industrials sector, several defense-focused companies contributed to performance, such as Orbital ATK, Incorporated, which received a takeover bid from Northrop Grumman Corporation; Raytheon Company; and Huntington Ingalls Industries, Incorporated. Real estate companies contributing were Crown Castle International Corporation and Equinix, Incorporated. Equity detractors were energy companies Kinder Morgan, Incorporated, and Plains All American Pipeline, L.P. Also underperforming were health care pharmaceuticals company Allergan plc and IT company QUALCOMM Incorporated.

Our outlook remains one of cautious optimism.

While the pace of economic growth is modest compared with previous recoveries after recessions, the current expansion is one of the longest. We believe the intrinsic dynamism, creativity, and basic strengths of the U.S. economy should provide opportunities for the stock market over the next year. Slow but steady gains in employment should help stimulate demand for goods and services. Furthermore, the expansion of low-cost shale gas and petroleum liquids should continue to provide a boon to both businesses and consumers, improving the competitive positions of U.S. companies and offering some cost relief to consumers for utility and fuel costs.

We are somewhat cautious that the high-yield bond market might not offer the relative outperformance we have seen over the past few years. However, we believe that by concentrating our holdings in companies with above-average credit quality, our holdings may provide enough income above that of risk-free alternatives to compensate for their credit risk.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,046.25	$	5.35		1.04	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.84	$	5.28		1.04	%
Class C
Actual	$	1,000.00	$	1,042.26	$	9.18		1.79	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.08	$	9.07		1.79	%
Administrator Class
Actual	$	1,000.00	$	1,047.64	$	4.62		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.56	$	4.56		0.90	%
Institutional Class
Actual	$	1,000.00	$	1,046.96	$	3.64		0.71	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.51	$	3.60		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—September 30, 2017 Wells Fargo Diversified Income Builder Fund 11

Security name	Shares		Value
Common Stocks: 27.69%
Consumer Discretionary: 0.42%
Household Durables: 0.42%
Leggett & Platt Incorporated		65,000	$	3,102,450
Consumer Staples: 0.52%
Food & Staples Retailing: 0.24%
CVS Health Corporation		15,000		1,219,800
Sysco Corporation		10,000		539,500
				1,759,300
Food Products: 0.28%
ConAgra Foods Incorporated		35,000		1,180,900
Lamb Weston Holdings Incorporated		20,000		937,800
				2,118,700
Energy: 4.59%
Oil, Gas & Consumable Fuels: 4.59%
Andeavor Logistics LP		145,000		7,258,700
EOG Resources Incorporated		10,000		967,400
EQT Corporation		30,000		1,957,200
Kinder Morgan Incorporated		460,000		8,822,800
ONEOK Incorporated		60,000		3,324,600
Plains All American Pipeline LP		330,000		6,992,700
The Williams Companies Incorporated		160,000		4,801,600
				34,125,000
Health Care: 4.55%
Health Care Equipment & Supplies: 2.75%
Abbott Laboratories		110,000		5,869,600
Becton Dickinson & Company		35,000		6,858,250
Teleflex Incorporated		30,000		7,259,100
West Pharmaceutical Services Incorporated		5,000		481,300
				20,468,250
Life Sciences Tools & Services: 1.25%
Thermo Fisher Scientific Incorporated		30,000		5,676,000
Waters Corporation †		20,000		3,590,400
				9,266,400
Pharmaceuticals: 0.55%
Allergan plc		20,000		4,099,000
Industrials: 3.59%
Aerospace & Defense: 2.20%
Curtiss-Wright Corporation		40,000		4,181,600
Huntington Ingalls Industries Incorporated		20,000		4,528,800

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

12 Wells Fargo Diversified Income Builder Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Aerospace & Defense (continued)
Lockheed Martin Corporation		1,000	$	310,290
Orbital ATK Incorporated		20,000		2,663,200
Raytheon Company		25,000		4,664,500
				16,348,390
Building Products: 0.13%
Apogee Enterprises Incorporated		20,000		965,200
Electrical Equipment: 0.26%
Eaton Corporation PLC		25,000		1,919,750
Industrial Conglomerates: 0.57%
Honeywell International Incorporated		30,000		4,252,200
Machinery: 0.43%
Cummins Incorporated		2,000		336,060
John Bean Technologies Corporation		20,000		2,022,000
Oshkosh Corporation		10,000		825,400
				3,183,460
Information Technology: 10.30%
Electronic Equipment, Instruments & Components: 1.75%
Amphenol Corporation Class A		70,000		5,924,800
Corning Incorporated		165,000		4,936,800
FLIR Systems Incorporated		55,000		2,140,050
				13,001,650
Internet Software & Services: 0.92%
Alphabet Incorporated Class A †		7,000		6,816,040
IT Services: 0.88%
Leidos Holdings Incorporated		110,000		6,514,200
Semiconductors & Semiconductor Equipment: 3.70%
Broadcom Limited		45,000		10,914,300
Cypress Semiconductor Corporation «		100,000		1,502,000
Microsemi Corporation †		80,000		4,118,400
QUALCOMM Incorporated		20,000		1,036,800
Texas Instruments Incorporated		35,000		3,137,400
Versum Materials Incorporated		30,000		1,164,600
Xilinx Incorporated		80,000		5,666,400
				27,539,900
Software: 2.82%
Adobe Systems Incorporated †		45,000		6,713,100
Microsoft Corporation		165,000		12,290,850
Synopsys Incorporated †		25,000		2,013,250
				21,017,200

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

Portfolio of investments—September 30, 2017 Wells Fargo Diversified Income Builder Fund 13

Security name						Shares		Value
Technology Hardware, Storage & Peripherals: 0.23%
Western Digital Corporation							20,000	$	1,728,000
Materials: 2.07%
Chemicals: 1.84%
Ashland Global Holdings Incorporated							30,000		1,961,700
Celanese Corporation Series A							10,000		1,042,700
DowDupont Incorporated							40,000		2,769,200
LyondellBasell Industries NV Class A							80,000		7,924,000
									13,697,600
Containers & Packaging: 0.23%
Sealed Air Corporation							40,000		1,708,800
Real Estate: 0.75%
Equity REITs: 0.75%
Crown Castle International Corporation							10,000		999,800
Equinix Incorporated							4,000		1,785,200
Sabra Health Care REIT Incorporated							30,000		658,200
Saul Centers Incorporated							35,000		2,166,850
									5,610,050
Utilities: 0.90%
Gas Utilities: 0.90%
Atmos Energy Corporation							80,000		6,707,200
Total Common Stocks (Cost $181,721,700)									205,948,740
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 62.52%
Consumer Discretionary: 5.47%
Auto Components: 1.56%
Dana Holding Corporation		5.50	%		12-15-2024	$	3,925,000		4,121,250
Tenneco Incorporated		5.00			7-15-2026		7,250,000		7,431,250
									11,552,500
Hotels, Restaurants & Leisure: 0.65%
Speedway Motorsports Incorporated		5.13			2-1-2023		4,700,000		4,852,750
Media: 1.14%
McGraw-Hill Global Education Holdings LLC «144A		7.88			5-15-2024		8,598,000		8,479,778
Specialty Retail: 2.12%
Group 1 Automotive Incorporated		5.00			6-1-2022		4,453,000		4,614,421
Penske Auto Group Incorporated		5.75			10-1-2022		10,813,000		11,165,504
									15,779,925

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

14 Wells Fargo Diversified Income Builder Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Consumer Staples: 2.09%
Food Products: 2.09%
Lamb Weston Holdings Incorporated 144A		4.63	%		11-1-2024	$	13,000,000	$	13,552,500
Post Holdings Incorporated 144A		5.00			8-15-2026		2,000,000		1,996,250
									15,548,750
Energy: 5.21%
Oil, Gas & Consumable Fuels: 5.21%
Cheniere Corpus Christi Holdings LLC 144A		5.13			6-30-2027		24,500,000		25,296,250
Kinder Morgan Energy Partners LP		4.30			6-1-2025		3,500,000		3,665,082
ONEOK Incorporated		4.25			2-1-2022		3,737,000		3,883,905
Plains All American Pipeline LP		3.85			10-15-2023		2,345,000		2,353,170
Tennessee Gas Pipeline Company		7.00			3-15-2027		3,000,000		3,551,587
									38,749,994
Health Care: 9.39%
Health Care Equipment & Supplies: 0.98%
Halyard Health Incorporated		6.25			10-15-2022		1,000,000		1,043,750
Teleflex Incorporated		4.88			6-1-2026		6,000,000		6,225,000
									7,268,750
Health Care Providers & Services: 7.29%
AMN Healthcare Incorporated 144A		5.13			10-1-2024		23,535,000		24,388,144
DaVita HealthCare Partners Incorporated		5.13			7-15-2024		3,000,000		2,986,875
HCA Incorporated		5.25			6-15-2026		7,000,000		7,542,500
HCA Incorporated		5.38			2-1-2025		11,000,000		11,591,250
HealthSouth Corporation		5.13			3-15-2023		2,000,000		2,066,900
West Street Merger Sub Incorporated 144A		6.38			9-1-2025		5,700,000		5,671,500
									54,247,169
Health Care Technology: 1.12%
Quintiles IMS Holdings Incorporated 144A		4.88			5-15-2023		7,000,000		7,280,000
Quintiles IMS Holdings Incorporated 144A		5.00			10-15-2026		1,000,000		1,060,000
									8,340,000
Industrials: 11.61%
Aerospace & Defense: 5.64%
Huntington Ingalls Industries Incorporated 144A		5.00			11-15-2025		8,000,000		8,640,000
Moog Incorporated 144A		5.25			12-1-2022		5,500,000		5,752,945
Orbital ATK Incorporated		5.50			10-1-2023		10,640,000		11,371,500
TransDigm Group Incorporated		6.38			6-15-2026		11,800,000		12,087,684
TransDigm Group Incorporated		6.50			5-15-2025		4,000,000		4,120,000
									41,972,129
Commercial Services & Supplies: 0.70%
Acco Brands Corporation 144A		5.25			12-15-2024		5,000,000		5,187,500
Construction & Engineering: 0.28%
Aecom Company		5.13			3-15-2027		2,000,000		2,067,500

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

Portfolio of investments—September 30, 2017 Wells Fargo Diversified Income Builder Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Machinery: 2.07%
Actuant Corporation		5.63	%		6-15-2022	$	1,165,000	$	1,195,581
Oshkosh Corporation		5.38			3-1-2025		3,675,000		3,895,500
SPX FLOW Incorporated 144A		5.63			8-15-2024		4,500,000		4,713,750
SPX FLOW Incorporated 144A		5.88			8-15-2026		5,328,000		5,621,040
									15,425,871
Trading Companies & Distributors: 2.92%
HD Supply Incorporated 144A		5.75			4-15-2024		11,450,000		12,251,500
Wesco Distribution Incorporated		5.38			6-15-2024		8,974,000		9,467,570
									21,719,070
Information Technology: 10.96%
Communications Equipment: 2.21%
CommScope Incorporated 144A		5.50			6-15-2024		9,479,000		9,917,404
CommScope Technologies Finance LLC 144A		5.00			3-15-2027		6,500,000		6,516,250
									16,433,654
Electronic Equipment, Instruments & Components: 1.82%
Anixter International Incorporated		5.13			10-1-2021		4,000,000		4,300,000
Belden Incorporated 144A		5.25			7-15-2024		3,485,000		3,633,113
TTM Technologies Incorporated 144A		5.63			10-1-2025		5,495,000		5,560,253
									13,493,366
IT Services: 0.28%
Gartner Incorporated 144A		5.13			4-1-2025		2,000,000		2,110,000
Semiconductors & Semiconductor Equipment: 4.03%
Micron Technology Incorporated 144A		5.25			8-1-2023		3,700,000		3,859,100
Micron Technology Incorporated 144A		5.25			1-15-2024		3,000,000		3,164,730
Micron Technology Incorporated		5.50			2-1-2025		6,750,000		7,197,188
Micron Technology Incorporated		7.50			9-15-2023		1,000,000		1,111,250
Versum Materials Incorporated 144A		5.50			9-30-2024		13,834,000		14,664,040
									29,996,308
Software: 1.23%
Nuance Communications Company		6.00			7-1-2024		2,000,000		2,165,600
Symantec Corporation 144A		5.00			4-15-2025		6,705,000		7,010,949
									9,176,549
Technology Hardware, Storage & Peripherals: 1.39%
Diebold Incorporated		8.50			4-15-2024		8,500,000		9,214,170
Western Digital Corporation 144A		7.38			4-1-2023		1,000,000		1,095,500
									10,309,670
Materials: 11.82%
Chemicals: 9.47%
A. Schulman Incorporated		6.88			6-1-2023		11,500,000		11,931,250
Koppers Incorporated 144A		6.00			2-15-2025		13,150,000		14,136,250

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

16 Wells Fargo Diversified Income Builder Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Chemicals (continued)
Olin Corporation		5.13	%		9-15-2027	$	5,000,000	$	5,225,000
Olin Corporation		5.50			8-15-2022		8,500,000		9,158,750
Rayonier Advanced Materials Products Incorporated 144A		5.50			6-1-2024		8,945,000		8,665,469
Scotts Miracle-Gro Company		5.25			12-15-2026		4,000,000		4,220,000
Scotts Miracle-Gro Company		6.00			10-15-2023		6,000,000		6,405,000
Valvoline Incorporated 144A		4.38			8-15-2025		10,000,000		10,176,000
Valvoline Incorporated 144A		5.50			7-15-2024		500,000		533,750
									70,451,469
Containers & Packaging: 2.05%
Ball Corporation		5.00			3-15-2022		2,500,000		2,706,250
Berry Plastics Corporation		5.13			7-15-2023		2,500,000		2,612,500
Berry Plastics Corporation		6.00			10-15-2022		4,100,000		4,351,125
Sealed Air Corporation 144A		5.25			4-1-2023		4,650,000		5,010,375
Sealed Air Corporation 144A		5.50			9-15-2025		500,000		550,000
									15,230,250
Metals & Mining: 0.30%
Commercial Metals Company		4.88			5-15-2023		2,150,000		2,246,750
Real Estate: 4.26%
Equity REITs: 4.26%
Equinix Incorporated		5.38			5-15-2027		5,000,000		5,437,500
Equinix Incorporated		5.75			1-1-2025		1,500,000		1,614,375
Iron Mountain Incorporated 144A		4.88			9-15-2027		12,000,000		12,225,000
Iron Mountain Incorporated 144A		5.38			6-1-2026		6,500,000		6,808,750
Iron Mountain Incorporated		5.75			8-15-2024		3,927,000		4,049,719
Sabra Health Care REIT Incorporated		5.38			6-1-2023		1,500,000		1,548,750
									31,684,094
Utilities: 1.71%
Gas Utilities: 1.71%
National Fuel Gas Company		4.90			12-1-2021		12,000,000		12,732,449
Total Corporate Bonds and Notes (Cost $449,915,163)									465,056,245
Yankee Corporate Bonds and Notes: 6.97%
Financials: 1.93%
Diversified Financial Services: 1.93%
Tronox Finance plc 144A		5.75			10-1-2025		14,000,000		14,350,000
Health Care: 1.37%
Pharmaceuticals: 1.37%
Mallinckrodt plc 144A		5.50			4-15-2025		5,655,000		5,089,500
Mallinckrodt plc «144A		5.63			10-15-2023		5,500,000		5,121,874
									10,211,374

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

Portfolio of investments—September 30, 2017 Wells Fargo Diversified Income Builder Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 1.50%
Electrical Equipment: 1.50%
Sensata Technologies BV 144A		4.88	%		10-15-2023	$	6,700,000	$	7,043,375
Sensata Technologies BV 144A		5.63			11-1-2024		3,750,000		4,129,688
									11,173,063
Information Technology: 2.17%
Technology Hardware, Storage & Peripherals: 2.17%
Seagate HDD		4.75			6-1-2023		8,500,000		8,615,090
Seagate HDD		4.88			6-1-2027		8,000,000		7,540,295
									16,155,385
Total Yankee Corporate Bonds and Notes (Cost $51,039,486)									51,889,822
	Yield					Shares
Short-Term Investments: 3.01%
Investment Companies: 3.01%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25					11,166,995		11,168,112
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92					11,243,453		11,243,453
Total Short-Term Investments (Cost $22,410,956)									22,411,565

Total investments in securities (Cost $705,087,305)	100.19	%		745,306,372
Other assets and liabilities, net	(0.19	)		(1,428,962	)
Total net assets	100.00	%	$	743,877,410

† 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 company purchased with cash collateral received from securities on loan.

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

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		6,023,805		125,194,270		120,051,080		11,166,995	$	5	$	609	$	115,002	$	11,168,112
Wells Fargo Government Money Market Fund Select Class		3,232,384		239,886,658		231,875,589		11,243,453		0		0		63,627		11,243,453
									$	5	$	609	$	178,629	$	22,411,565		3.01	%

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

18 Wells Fargo Diversified Income Builder Fund Statement of assets and liabilities—September 30, 2017

Assets
Investments in unaffiliated securities (including $10,855,356 of securities loaned), at value (cost $682,676,349)	$	722,894,807
Investments in affiliated securities, at value (cost $22,410,956)		22,411,565
Receivable for Fund shares sold		3,837,457
Receivable for dividends and interest		8,154,510
Receivable for securities lending income		5,591
Prepaid expenses and other assets		142,944
Total assets		757,446,874
Liabilities
Dividends payable		252,894
Payable for Fund shares redeemed		1,510,757
Payable upon receipt of securities loaned		11,167,498
Management fee payable		333,941
Administration fees payable		106,479
Distribution fees payable		104,307
Accrued expenses and other liabilities		93,588
Total liabilities		13,569,464
Total net assets	$	743,877,410
NET ASSETS CONSIST OF
Paid-in capital	$	691,847,883
Overdistributed net investment income		(265,880	)
Accumulated net realized gains on investments		12,076,340
Net unrealized gains on investments		40,219,067
Total net assets	$	743,877,410
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	220,976,546
Shares outstanding – Class A1		34,411,885
Net asset value per share – Class A		$6.42
Maximum offering price per share – Class A2		$6.81
Net assets – Class C	$	165,512,627
Shares outstanding – Class C1		25,715,914
Net asset value per share – Class C		$6.44
Net assets – Administrator Class	$	41,974,804
Shares outstanding – Administrator Class1		6,674,018
Net asset value per share – Administrator Class		$6.29
Net assets – Institutional Class	$	315,413,433
Shares outstanding – Institutional Class1		50,198,270
Net asset value per share – Institutional Class		$6.28

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—year ended September 30, 2017 Wells Fargo Diversified Income Builder Fund 19

Investment income
Interest	$	22,716,293
Dividends		3,248,794
Income from affiliated securities		178,629
Total investment income		26,143,716
Expenses
Management fee		3,290,320
Administration fees
Class A		392,926
Class B		444	1
Class C		308,469
Administrator Class		59,916
Institutional Class		289,669
Shareholder servicing fees
Class A		467,769
Class B		528	1
Class C		367,225
Administrator Class		114,946
Distribution fees
Class B		1,584	1
Class C		1,101,675
Custody and accounting fees		35,094
Professional fees		57,901
Registration fees		103,199
Shareholder report expenses		46,461
Trustees’ fees and expenses		20,117
Other fees and expenses		10,949
Total expenses		6,669,192
Less: Fee waivers and/or expense reimbursements		(57,258	)
Net expenses		6,611,934
Net investment income		19,531,782
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		12,945,397
Affiliated securities		5
Net realized gains on investments		12,945,402
Net change in unrealized gains (losses) on:
Unaffiliated securities		21,283,246
Affiiliated securities		609
Net change in unrealized gains (losses) on investments		21,283,855
Net realized and unrealized gains (losses) on investments		34,229,257
Net increase in net assets resulting from operations	$	53,761,039

¹  For the period from October 1, 2016 to May 5, 2017. Effective at the close of business on May 5, 2017, Class B shares were converted to Class A shares and no longer offered by the Fund.

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

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

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment income				$	19,531,782					$	13,285,487
Net realized gains on investments					12,945,402						3,608,586
Net change in unrealized gains (losses) on investments					21,283,855						38,971,424
Net increase in net assets resulting from operations					53,761,039						55,865,497
Distributions to shareholders from
Net investment income
Class A					(6,500,003	)					(4,830,169	)
Class B					(5,875	)1					(26,929	)
Class C					(4,004,743	)					(3,170,739	)
Administrator Class					(1,700,100	)					(1,702,969	)
Institutional Class					(8,456,717	)					(3,550,714	)
Net realized gains
Class A					(1,136,812	)					(4,558,034	)
Class B					(2,604	)1					(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					(24,138,438	)					(25,748,455	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		18,433,357			114,970,196			7,444,175			43,402,347
Class B		790	1		4,856	1		9,699			56,089
Class C		9,920,574			62,050,326			5,591,017			32,728,412
Administrator Class		4,611,695			28,032,068			10,156,014			57,752,782
Institutional Class		37,928,512			231,275,398			12,005,792			68,220,100
					436,332,844						202,159,730
Reinvestment of distributions
Class A		1,145,568			7,148,903			1,540,577			8,715,930
Class B		1,045	1		6,448	1		8,851			49,757
Class C		687,580			4,297,275			1,039,282			5,870,456
Administrator Class		309,869			1,885,882			501,237			2,803,982
Institutional Class		1,308,141			8,015,673			916,214			5,097,329
					21,354,181						22,537,454
Payment for shares redeemed
Class A		(10,383,064	)		(65,031,893	)		(6,057,888	)		(35,108,089	)
Class B		(77,635	)1		(486,950	)1		(186,708	)		(1,095,883	)
Class C		(6,040,064	)		(37,818,153	)		(4,790,025	)		(27,491,552	)
Administrator Class		(9,917,933	)		(59,608,201	)		(4,588,670	)		(25,939,656	)
Institutional Class		(9,738,100	)		(59,471,981	)		(6,093,878	)		(34,215,881	)
					(222,417,178	)					(123,851,061	)
Net increase in net assets resulting from capital share transactions					235,269,847						100,846,123
Total increase in net assets					264,892,448						130,963,165
Net assets
Beginning of period					478,984,962						348,021,797
End of period				$	743,877,410					$	478,984,962
Overdistributed net investment income				$	(265,880	)				$	(168,444	)

¹  For the period from October 1, 2016 to May 5, 2017. Effective at the close of business on May 5, 2017, Class B shares were converted to Class A shares and no longer offered by the Fund.

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)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$6.13			$5.71			$6.37			$6.13			$6.00
Net investment income		0.20			0.20			0.21			0.23			0.25
Net realized and unrealized gains (losses) on investments		0.35			0.64			(0.31	)		0.38			0.13
Total from investment operations		0.55			0.84			(0.10	)		0.61			0.38
Distributions to shareholders from
Net investment income		(0.22	)		(0.21	)		(0.21	)		(0.23	)		(0.25	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00
Total distributions to shareholders		(0.26	)		(0.42	)		(0.56	)		(0.37	)		(0.25	)
Net asset value, end of period		$6.42			$6.13			$5.71			$6.37			$6.13
Total return1		9.16	%		15.39	%		(1.92	)%		10.13	%		6.37	%
Ratios to average net assets (annualized)
Gross expenses		1.05	%		1.08	%		1.11	%		1.13	%		1.12	%
Net expenses		1.05	%		1.08	%		1.08	%		1.08	%		1.08	%
Net investment income		3.29	%		3.55	%		3.38	%		3.60	%		4.03	%
Supplemental data
Portfolio turnover rate		29	%		38	%		63	%		52	%		60	%
Net assets, end of period (000s omitted)		$220,977			$154,496			$127,242			$143,062			$159,229

¹  Total return calculations do not include any sales charges.

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

22 Wells Fargo Diversified Income Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$6.14			$5.72			$6.39			$6.14			$6.01
Net investment income		0.16			0.16	1		0.16	1		0.18			0.20
Net realized and unrealized gains (losses) on investments		0.35			0.63			(0.32	)		0.39			0.13
Total from investment operations		0.51			0.79			(0.16	)		0.57			0.33
Distributions to shareholders from
Net investment income		(0.17	)		(0.16	)		(0.16	)		(0.18	)		(0.20	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00
Total distributions to shareholders		(0.21	)		(0.37	)		(0.51	)		(0.32	)		(0.20	)
Net asset value, end of period		$6.44			$6.14			$5.72			$6.39			$6.14
Total return2		8.51	%		14.51	%		(2.81	)%		9.47	%		5.58	%
Ratios to average net assets (annualized)
Gross expenses		1.80	%		1.83	%		1.86	%		1.88	%		1.87	%
Net expenses		1.80	%		1.83	%		1.83	%		1.83	%		1.83	%
Net investment income		2.54	%		2.80	%		2.62	%		2.85	%		3.29	%
Supplemental data
Portfolio turnover rate		29	%		38	%		63	%		52	%		60	%
Net assets, end of period (000s omitted)		$165,513			$129,856			$110,457			$111,045			$112,113

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Diversified Income Builder Fund 23

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$6.00			$5.60			$6.25			$6.01			$5.89
Net investment income		0.21	1		0.21	1		0.21	1		0.24			0.26
Net realized and unrealized gains (losses) on investments		0.34			0.61			(0.30	)		0.38			0.12
Total from investment operations		0.55			0.82			(0.09	)		0.62			0.38
Distributions to shareholders from
Net investment income		(0.22	)		(0.21	)		(0.21	)		(0.24	)		(0.26	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00
Total distributions to shareholders		(0.26	)		(0.42	)		(0.56	)		(0.38	)		(0.26	)
Net asset value, end of period		$6.29			$6.00			$5.60			$6.25			$6.01
Total return		9.45	%		15.45	%		(1.69	)%		10.46	%		6.43	%
Ratios to average net assets (annualized)
Gross expenses		0.97	%		1.00	%		0.97	%		0.96	%		0.96	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		3.51	%		3.72	%		3.56	%		3.77	%		4.21	%
Supplemental data
Portfolio turnover rate		29	%		38	%		63	%		52	%		60	%
Net assets, end of period (000s omitted)		$41,975			$70,051			$31,367			$48,690			$43,135

¹  Calculated based upon average shares outstanding

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

24 Wells Fargo Diversified Income Builder Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$6.00			$5.59			$6.25			$6.01			$5.88
Net investment income		0.24			0.23			0.24			0.25	1		0.27	1
Net realized and unrealized gains (losses) on investments		0.31			0.61			(0.32	)		0.38			0.13
Total from investment operations		0.55			0.84			(0.08	)		0.63			0.40
Distributions to shareholders from
Net investment income		(0.23	)		(0.22	)		(0.23	)		(0.25	)		(0.27	)
Net realized gains		(0.04	)		(0.21	)		(0.35	)		(0.14	)		0.00
Total distributions to shareholders		(0.27	)		(0.43	)		(0.58	)		(0.39	)		(0.27	)
Net asset value, end of period		$6.28			$6.00			$5.59			$6.25			$6.01
Total return		9.49	%		15.88	%		(1.65	)%		10.68	%		6.83	%
Ratios to average net assets (annualized)
Gross expenses		0.72	%		0.75	%		0.71	%		0.70	%		0.69	%
Net expenses		0.71	%		0.71	%		0.69	%		0.70	%		0.69	%
Net investment income		3.60	%		3.92	%		3.76	%		3.98	%		4.43	%
Supplemental data
Portfolio turnover rate		29	%		38	%		63	%		52	%		60	%
Net assets, end of period (000s omitted)		$315,413			$124,116			$77,558			$61,133			$49,807

¹  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Diversified Income Builder 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 Accounting Standards Codification 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.

Effective at the close of business on May 5, 2017, 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 May 5, 2017.

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, 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.

26 Wells Fargo Diversified Income Builder Fund Notes to financial statements

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 income from affiliates securities 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 to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $704,922,497 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	46,341,164
Gross unrealized losses		(5,957,289	)
Net unrealized gains	$	40,383,875

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to certain distributions paid. At

Notes to financial statements Wells Fargo Diversified Income Builder Fund 27

September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Overdistributed net investment income	Accumulated net realized gains on investments
$(169,584)	$1,038,220	$(868,636)

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 September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	3,102,450	$	0	$	0	$	3,102,450
Consumer staples		3,878,000		0		0		3,878,000
Energy		34,125,000		0		0		34,125,000
Health care		33,833,650		0		0		33,833,650
Industrials		26,669,000		0		0		26,669,000
Information technology		76,616,990		0		0		76,616,990
Materials		15,406,400		0		0		15,406,400
Real estate		5,610,050		0		0		5,610,050
Utilities		6,707,200		0		0		6,707,200
Corporate bonds and notes		0		465,056,245		0		465,056,245
Yankee corporate bonds and notes		0		51,889,822		0		51,889,822
Short-term investments
Investment companies		11,243,453		0		0		11,243,453
Investments measured at net asset value*								11,168,112
Total assets	$	217,192,193	$	516,946,067	$	0	$	745,306,372

* 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 $11,168,112 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

28 Wells Fargo Diversified Income Builder Fund Notes to financial statements

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At September 30, 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 0.55% and declining to 0.43% as the average daily net assets of the Fund increase. For the year ended September 30, 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 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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $125,213 from the sale of Class A shares and $556 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A and Class B shares for the year ended September 30, 2017.

Notes to financial statements Wells Fargo Diversified Income Builder Fund 29

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund had $24,547,153 in interfund purchases during the year ended September 30, 2017.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $389,395,300 and $170,026,906, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended September 30, 2017 and September 30, 2016 were as follows:

	Year ended September 30
	2017		2016
Ordinary income	$	20,667,438	$	15,910,256
Long-term capital gain		3,471,000		9,838,199

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$4,123,692	$7,787,840	$40,383,875

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.

30 Wells Fargo Diversified Income Builder Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Diversified Income Builder Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Diversified Income Builder Fund as of September 30, 2017, the results of its operations for the year then ended, changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

Other information (unaudited) Wells Fargo Diversified Income Builder Fund 31

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 9.61% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 852 of the Internal Revenue Code, $3,471,000 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $2,174,629 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended September 30, 2017, $15,309,271 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended September 30, 2017, $1,124,719 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

32 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 152 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 investment 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 led 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 Forté 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.	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 Diversified Income Builder Fund 33

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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

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

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds and Assistant Treasurer of 76 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.

Other information (unaudited) Wells Fargo Diversified Income Builder Fund 35

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Diversified Income Builder Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board

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

received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Diversified Income Builder Blended Index, for the three-year period under review, but lower than its benchmark for the all other periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to

Other information (unaudited) Wells Fargo Diversified Income Builder Fund 37

breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

38 Wells Fargo 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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306430 11-17 A226/AR226 09-17

Annual Report

September 30, 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	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	33
Statement of operations	34
Statement of changes in net assets	35
Financial highlights	36
Notes to financial statements	40
Report of independent registered public accounting firm	47
Other information	48
List of abbreviations	55

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Index Asset Allocation Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Index Asset Allocation Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Index Asset Allocation Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 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 September 30, 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		3.65		9.05		5.47		9.99			10.35		6.09		1.10		1.10
Class C (WFALX)	4-1-1998		8.14		9.52		5.31		9.14			9.52		5.31		1.85		1.85
Administrator Class (WFAIX)	11-8-1999		–		–		–		10.20			10.60		6.35		1.02		0.90
Institutional Class (WFATX)	10-31-2016		–		–		–		10.34			10.63		6.37		0.77		0.75
Index Asset Allocation Blended Index4	–		–		–		–		10.14			9.89		7.98		–		–
Bloomberg Barclays U.S. Treasury Index5	–		–		–		–		(1.67	)		1.24		3.71		–		–
S&P 500 Index6	–		–		–		–		18.61			14.22		7.44		–		–

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

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

For Class A shares, the maximum front-end sales charge is 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 7.

Performance highlights (unaudited) Wells Fargo Index Asset Allocation Fund 7

Growth of $10,000 investment as of September 30, 2017⁷

^‡  Mr. Bocray became a 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. You cannot invest directly in an index.

⁵  The Bloomberg 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 chart compares the performance of Class A shares for the most recent ten years with the Index Asset Allocation Blended Index, the Bloomberg Barclays U.S. Treasury Index, and the S&P 500 Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

⁸  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

⁹  The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Index (Net) consists of the following 21 developed markets country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Source: MSCI. MSCI makes no 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.

¹⁰  The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure large- and mid-cap equity market performance of emerging markets. The MSCI EM Index (Net) consists of the following 24 emerging markets country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. You cannot invest directly in an index.

¹¹  The Bloomberg Barclays 20+ Year U.S. Treasury Index is an unmanaged index composed of securities in the U.S. Treasury Index with maturities of 20 years or greater. You cannot invest directly in an index.

¹²  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.

¹³  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.

¹⁴  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.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund (Class A shares, excluding sales charges) underperformed its benchmark, the Index Asset Allocation Blended Index, for the 12-month period that ended September 30, 2017 after the deduction of the Fund’s fees and expenses. The benchmark does not incur any fees and expenses.

∎ The Fund’s stock and bond allocations performed in line with their respective benchmarks (the S&P 500 Index and the Bloomberg Barclay’s U.S. Treasury Index, respectively).

∎ The Fund’s tactical asset allocation shifts between stocks and bonds and the bond allocation’s duration management contributed to performance.

Markets responded dramatically to the election of President Donald Trump.

The 12-month period that ended September 30, 2017, was marked by political surprises and generally low market volatility. With the U.S. election upset in November 2016, equity and fixed-income markets saw large swings in futures prices during and following the election, the peak of volatility for the one-year period. The months following saw record lows for the CBOE VIX⁸, which fell as low as 9.36 on July 21, 2017.

Economic indicators in international markets firmed during the year. In the European Union (E.U.), growth rates and inflation numbers ticked up as investor appetite for risk increased. The E.U. and developed international markets saw increased fund inflows for the quarter.

For the period as a whole, the S&P 500 Index posted a return of 18.61%. Developed non-U.S. markets, as measured by the MSCI EAFE Index (Net)⁹, returned 19.10%. Emerging markets, as measured by the MSCI EM Index (Net)¹⁰, posted a 22.46% return.

Longer-duration U.S. government bond prices fell during the period as the yield curve steepened. The Bloomberg Barclays U.S. Treasury Index, a broad measure of U.S. Treasury notes and bonds, lost 1.67% during the 12-month period, with the Bloomberg Barclays 20+ Year U.S. Treasury Index¹¹ losing 6.66%.

Ten largest holdings (%) as of September 30, 201712
Apple Incorporated	2.22
Microsoft Corporation	1.60
Facebook Incorporated Class A	1.13
Amazon.com Incorporated	1.07
Berkshire Hathaway Incorporated Class B	0.99
Johnson & Johnson	0.98
Exxon Mobil Corporation	0.97
JPMorgan Chase & Company	0.94
Alphabet Incorporated Class A	0.81
Alphabet Incorporated Class C	0.81

Duration management and the tactical shifts through the period contributed positively to performance.

The Fund’s stock holdings seek to replicate the holdings of the S&P 500 Index; its bond holdings seek to replicate the holdings of the Bloomberg Barclays U.S. Treasury Index. The Fund’s neutral target allocation is 60% stocks and 40% bonds. As of fiscal year-end, the Fund had an effective target allocation of 60% stocks and 40% bonds.

During the period, the portfolio management team implemented tactical shifts between stocks and bonds in order to adjust the Fund’s effective allocations based on the relative attractiveness of the two asset classes. The allocation changes are implemented as an overlay with

futures used as an alternative to holding the underlying asset. The Fund began the period with a neutral equity allocation and lowered bond duration. During the U.S. elections, the team saw equity futures markets dislocate from fundamentals. Through an overnight trade, the team moved the allocation toward equities. This contributed positively to the Fund’s performance. The tactical shifts in equity and bond allocations that the portfolio management team implemented added value through the period.

The futures positions, which lowered the duration of the Fund’s bond allocation, also contributed positively to the portfolio’s performance. In the aftermath of the election, the U.S. Treasury rose dramatically through the end of November 2016. The team then unwound the duration trades in late November and December at a gain. Subsequently, the team tactically reduced the duration of the Fund in February 2017. Then in March and April, the team further reduced the duration of the portfolio. The reduced exposure to longer-term bonds during this period added to performance as longer-duration bond yields rose and prices fell; bond prices and yields move in opposite directions. In light of the historical lows for bond yields, the team continues to view this as a prudent measure in a rising interest-rate environment.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Index Asset Allocation Fund 9

Sector distribution as of September 30, 2017¹³

Neutral target allocation

Current target allocation as of September 30, 2017¹⁴

Relative to its benchmark, the Fund is neutral toward stocks and bonds.

The Fund’s effective allocation is determined by a combination of inputs from multiple quantitative and qualitative factors. As of the close of the period, the Fund was neutral with regard to stocks relative to bonds and held a lower duration relative to its benchmark. All of the changes to the effective allocation were implemented with futures contracts.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,043.91	$	5.50		1.07	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.69	$	5.43		1.07	%
Class C
Actual	$	1,000.00	$	1,039.55	$	9.32		1.82	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.93	$	9.21		1.82	%
Administrator Class
Actual	$	1,000.00	$	1,044.90	$	4.61		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.56	$	4.56		0.90	%
Institutional Class
Actual	$	1,000.00	$	1,045.40	$	3.81		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.35	$	3.76		0.74	%

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—September 30, 2017 Wells Fargo Index Asset Allocation Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 0.01%
FNMA Series 2002-T1 Class A4		9.50	%		11-25-2031	$	52,285	$	62,058
Total Agency Securities (Cost $52,745)									62,058
						Shares
Common Stocks: 60.34%
Consumer Discretionary: 7.14%
Auto Components: 0.13%
BorgWarner Incorporated							7,273		372,596
Delphi Automotive plc							9,761		960,482
The Goodyear Tire & Rubber Company							9,180		305,235
									1,638,313
Automobiles: 0.30%
Ford Motor Company							142,488		1,705,581
General Motors Company							47,769		1,928,912
Harley-Davidson Incorporated «							6,250		301,313
									3,935,806
Distributors: 0.07%
Genuine Parts Company							5,365		513,162
LKQ Corporation †							11,261		405,283
									918,445
Diversified Consumer Services: 0.02%
H&R Block Incorporated							7,662		202,890
Hotels, Restaurants & Leisure: 1.07%
Carnival Corporation							14,829		957,509
Chipotle Mexican Grill Incorporated †							905		278,586
Darden Restaurants Incorporated							4,570		360,025
Hilton Worldwide Holdings Incorporated							7,455		517,750
Marriott International Incorporated Class A							11,398		1,256,743
McDonald’s Corporation							29,509		4,623,470
MGM Resorts International							18,743		610,834
Royal Caribbean Cruises Limited							6,245		740,282
Starbucks Corporation							52,665		2,828,637
Wyndham Worldwide Corporation							3,749		395,182
Wynn Resorts Limited							2,914		433,953
Yum! Brands Incorporated							12,587		926,529
									13,929,500
Household Durables: 0.26%
D.R. Horton Incorporated							12,446		496,969
Garmin Limited «							4,051		218,632
Leggett & Platt Incorporated							4,820		230,059
Lennar Corporation Class A							7,419		391,723
Mohawk Industries Incorporated †							2,301		569,521

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

12 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Household Durables (continued)
Newell Rubbermaid Incorporated		17,924	$	764,817
PulteGroup Incorporated		10,138		277,072
Whirlpool Corporation		2,661		490,795
				3,439,588
Internet & Direct Marketing Retail: 1.60%
Amazon.com Incorporated †		14,477		13,917,464
Expedia Incorporated		4,474		643,988
Netflix Incorporated †		15,805		2,866,237
The Priceline Group Incorporated †		1,786		3,269,845
TripAdvisor Incorporated †		3,940		159,688
				20,857,222
Leisure Products: 0.05%
Hasbro Incorporated		4,147		405,037
Mattel Incorporated		12,378		191,611
				596,648
Media: 1.72%
CBS Corporation Class B		13,232		767,456
Charter Communications Incorporated Class A †		7,344		2,668,956
Comcast Corporation Class A		172,170		6,625,102
Discovery Communications Incorporated Class A †		5,591		119,032
Discovery Communications Incorporated Class C †		7,381		149,539
DISH Network Corporation Class A †		8,320		451,194
Interpublic Group of Companies Incorporated		14,348		298,295
News Corporation Class A		13,966		185,189
News Corporation Class B		4,449		60,729
Omnicom Group Incorporated		8,412		623,077
Scripps Networks Interactive Incorporated Class A		3,499		300,529
The Walt Disney Company		56,357		5,555,109
Time Warner Incorporated		28,395		2,909,068
Twenty-First Century Fox Incorporated Class A		38,305		1,010,486
Twenty-First Century Fox Incorporated Class B		15,956		411,505
Viacom Incorporated Class B		12,810		356,630
				22,491,896
Multiline Retail: 0.26%
Dollar General Corporation		9,448		765,760
Dollar Tree Incorporated †		8,603		746,912
Kohl’s Corporation		6,123		279,515
Macy’s Incorporated		11,003		240,085
Nordstrom Incorporated		4,232		199,539
Target Corporation		19,784		1,167,454
				3,399,265

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 13

Security name	Shares		Value
Specialty Retail: 1.28%
Advance Auto Parts Incorporated		2,676	$	265,459
AutoZone Incorporated †		1,015		604,037
Best Buy Company Incorporated		9,643		549,265
CarMax Incorporated †		6,679		506,335
Foot Locker Incorporated		4,771		168,035
L Brands Incorporated		9,031		375,780
Lowe’s Companies Incorporated		30,753		2,458,395
O’Reilly Automotive Incorporated †		3,211		691,553
Ross Stores Incorporated		14,278		921,930
Signet Jewelers Limited		2,186		145,478
The Gap Incorporated		7,998		236,181
The Home Depot Incorporated		42,924		7,020,649
The TJX Companies Incorporated		23,229		1,712,674
Tiffany & Company		3,714		340,871
Tractor Supply Company		4,590		290,501
ULTA Beauty Incorporated †		2,132		481,960
				16,769,103
Textiles, Apparel & Luxury Goods: 0.38%
Coach Incorporated		10,293		414,602
HanesBrands Incorporated «		13,252		326,529
Michael Kors Holdings Limited †		5,534		264,802
Nike Incorporated Class B		47,798		2,478,326
PVH Corporation		2,823		355,867
Ralph Lauren Corporation		2,018		178,169
Under Armour Incorporated Class A Ǡ		6,677		110,037
Under Armour Incorporated Class C Ǡ		6,737		101,190
VF Corporation		11,912		757,246
				4,986,768
Consumer Staples: 4.97%
Beverages: 1.21%
Brown-Forman Corporation Class B		7,153		388,408
Constellation Brands Incorporated Class A		6,268		1,250,153
Dr Pepper Snapple Group Incorporated		6,652		588,502
Molson Coors Brewing Company Class B		6,725		549,029
Monster Beverage Corporation †		15,155		837,314
PepsiCo Incorporated		52,164		5,812,635
The Coca-Cola Company		140,278		6,313,913
				15,739,954
Food & Staples Retailing: 1.07%
Costco Wholesale Corporation		15,922		2,615,825
CVS Health Corporation		37,127		3,019,168
Sysco Corporation		17,773		958,853
The Kroger Company		32,698		655,922
Wal-Mart Stores Incorporated		53,169		4,154,626
Walgreens Boots Alliance Incorporated		33,479		2,585,248
				13,989,642

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

14 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Food Products: 0.75%
Archer Daniels Midland Company		20,537	$	873,028
Campbell Soup Company		7,062		330,643
ConAgra Foods Incorporated		15,160		511,498
General Mills Incorporated		21,137		1,094,051
Hormel Foods Corporation «		9,863		316,997
Kellogg Company		9,093		567,130
McCormick & Company Incorporated		4,337		445,150
Mondelez International Incorporated Class A		54,945		2,234,064
The Hershey Company		5,156		562,881
The J.M. Smucker Company		4,159		436,404
The Kraft Heinz Company		21,812		1,691,521
Tyson Foods Incorporated Class A		10,586		745,784
				9,809,151
Household Products: 1.03%
Church & Dwight Company Incorporated		9,138		442,736
Colgate-Palmolive Company		32,172		2,343,730
Kimberly-Clark Corporation		12,911		1,519,366
The Clorox Company		4,711		621,428
The Procter & Gamble Company		93,029		8,463,778
				13,391,038
Personal Products: 0.09%
Coty Incorporated Class A		17,263		285,357
The Estee Lauder Companies Incorporated Class A		8,183		882,455
				1,167,812
Tobacco: 0.82%
Altria Group Incorporated		70,124		4,447,264
Philip Morris International		56,806		6,306,034
				10,753,298
Energy: 3.68%
Energy Equipment & Services: 0.51%
Baker Hughes Incorporated		15,665		573,652
Halliburton Company		31,724		1,460,256
Helmerich & Payne Incorporated «		3,976		207,189
National Oilwell Varco Incorporated		13,890		496,290
Schlumberger Limited		50,869		3,548,621
TechnipFMC plc †		16,070		448,674
				6,734,682
Oil, Gas & Consumable Fuels: 3.17%
Anadarko Petroleum Corporation		20,513		1,002,060
Andeavor Corporation		5,269		543,497
Apache Corporation		13,916		637,353
Cabot Oil & Gas Corporation		16,784		448,972
Chesapeake Energy Corporation Ǡ		33,278		143,095

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 15

Security name	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Chevron Corporation		69,324	$	8,145,570
Cimarex Energy Company		3,488		396,481
Concho Resources Incorporated †		5,442		716,820
ConocoPhillips		44,508		2,227,625
Devon Energy Corporation		19,400		712,174
EOG Resources Incorporated		21,112		2,042,375
EQT Corporation		6,304		411,273
Exxon Mobil Corporation		154,876		12,696,734
Hess Corporation		9,869		462,757
Kinder Morgan Incorporated		70,120		1,344,902
Marathon Oil Corporation		31,090		421,580
Marathon Petroleum Corporation		18,514		1,038,265
Newfield Exploration Company †		7,323		217,273
Noble Energy Incorporated		17,782		504,298
Occidental Petroleum Corporation		27,996		1,797,623
ONEOK Incorporated		13,858		767,872
Phillips 66 Company		15,729		1,440,934
Pioneer Natural Resources Company		6,223		918,141
Range Resources Corporation		8,330		163,018
The Williams Companies Incorporated		30,257		908,013
Valero Energy Corporation		16,156		1,242,881
				41,351,586
Financials: 8.83%
Banks: 3.90%
Bank of America Corporation		358,244		9,077,903
BB&T Corporation		29,456		1,382,665
Citigroup Incorporated		99,750		7,255,815
Citizens Financial Group Incorporated		18,312		693,475
Comerica Incorporated		6,445		491,496
Fifth Third Bancorp		26,918		753,166
Huntington Bancshares Incorporated		39,954		557,758
JPMorgan Chase & Company		128,650		12,287,362
KeyCorp		39,762		748,321
M&T Bank Corporation		5,548		893,450
People’s United Financial Incorporated		12,570		228,020
PNC Financial Services Group Incorporated		17,505		2,359,149
Regions Financial Corporation		43,689		665,383
SunTrust Banks Incorporated		17,542		1,048,485
US Bancorp		58,145		3,115,991
Wells Fargo & Company (l)		164,057		9,047,744
Zions Bancorporation		7,399		349,085
				50,955,268
Capital Markets: 1.82%
Affiliated Managers Group Incorporated		2,055		390,101
Ameriprise Financial Incorporated		5,484		814,429
Bank of New York Mellon Corporation		37,710		1,999,384
BlackRock Incorporated		4,524		2,022,635

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

16 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Capital Markets (continued)
CBOE Holdings Incorporated		4,119	$	443,328
CME Group Incorporated		12,406		1,683,246
E*TRADE Financial Corporation †		10,033		437,539
Franklin Resources Incorporated		12,028		535,366
Intercontinental Exchange Incorporated		21,512		1,477,874
Invesco Limited		14,881		521,430
Moody’s Corporation		6,067		844,587
Morgan Stanley		51,577		2,484,464
Northern Trust Corporation		7,846		721,283
Raymond James Financial Incorporated		4,693		395,761
S&P Global Incorporated		9,378		1,465,875
State Street Corporation		13,658		1,304,885
T. Rowe Price Group Incorporated		8,821		799,624
The Charles Schwab Corporation		43,435		1,899,847
The Goldman Sachs Group Incorporated		13,139		3,116,439
The NASDAQ OMX Group Incorporated		4,267		330,991
				23,689,088
Consumer Finance: 0.45%
American Express Company		26,893		2,432,741
Capital One Financial Corporation		17,685		1,497,212
Discover Financial Services		13,610		877,573
Navient Corporation		10,010		150,350
Synchrony Financial		27,389		850,428
				5,808,304
Diversified Financial Services: 1.01%
Berkshire Hathaway Incorporated Class B †		70,336		12,893,996
Leucadia National Corporation		11,591		292,673
				13,186,669
Insurance: 1.65%
AFLAC Incorporated		14,435		1,174,865
American International Group Incorporated		32,961		2,023,476
Aon plc		9,307		1,359,753
Arthur J. Gallagher & Company		6,582		405,122
Assurant Incorporated		1,966		187,792
Brighthouse Financial Incorporated †		3,510		213,408
Chubb Limited		16,994		2,422,495
Cincinnati Financial Corporation		5,456		417,766
Everest Reinsurance Group Limited		1,489		340,073
Lincoln National Corporation		8,104		595,482
Loews Corporation		10,083		482,572
Marsh & McLennan Companies Incorporated		18,743		1,570,851
MetLife Incorporated		38,801		2,015,712
Principal Financial Group Incorporated		9,805		630,854
Prudential Financial Incorporated		15,574		1,655,828
The Allstate Corporation		13,187		1,212,017
The Hartford Financial Services Group Incorporated		13,302		737,330

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 17

Security name	Shares			Value
Insurance (continued)
The Progressive Corporation		21,288		$	1,030,765
The Travelers Companies Incorporated		10,072			1,234,021
Torchmark Corporation		3,953			316,596
Unum Group		8,247			421,669
Willis Towers Watson plc		4,901			755,881
XL Group Limited		9,398			370,751
					21,575,079
Health Care: 8.75%
Biotechnology: 1.92%
AbbVie Incorporated		57,687			5,126,067
Alexion Pharmaceuticals Incorporated †		8,074			1,132,701
Amgen Incorporated		26,577			4,955,282
Biogen Incorporated		7,691			2,408,206
Celgene Corporation †		28,634			4,175,410
Gilead Sciences Incorporated		47,670			3,862,223
Incyte Corporation †		6,197			723,438
Regeneron Pharmaceuticals Incorporated †		2,797			1,250,595
Vertex Pharmaceuticals Incorporated †		9,196			1,398,160
					25,032,082
Health Care Equipment & Supplies: 1.69%
Abbott Laboratories		63,574			3,392,309
Align Technology Incorporated †		2,640	��		491,753
Baxter International Incorporated		18,340			1,150,835
Becton Dickinson & Company		8,294			1,625,209
Boston Scientific Corporation †		50,220			1,464,917
C.R. Bard Incorporated		2,651			849,646
Danaher Corporation		22,289			1,911,950
Dentsply Sirona Incorporated		8,394			502,045
Edwards Lifesciences Corporation †		7,700			841,687
Hologic Incorporated †		10,200			374,238
IDEXX Laboratories Incorporated †		3,190			496,013
Intuitive Surgical Incorporated †		1,363			1,425,534
Medtronic plc		49,525			3,851,559
ResMed Incorporated		5,185			399,038
Stryker Corporation		11,746			1,668,167
The Cooper Companies Incorporated		1,789			424,190
Varian Medical Systems Incorporated		3,353			335,501
Zimmer Biomet Holdings Incorporated		7,388			865,061
					22,069,652
Health Care Providers & Services: 1.64%
Aetna Incorporated		12,060			1,917,661
AmerisourceBergen Corporation		5,882			486,736
Anthem Incorporated		9,555			1,814,303
Cardinal Health Incorporated		11,512			770,383
Centene Corporation †		6,284			608,103
Cigna Corporation		9,181			1,716,296

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

18 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Health Care Providers & Services (continued)
DaVita HealthCare Partners Incorporated †		5,588	$	331,871
Envision Healthcare Corporation †		4,405		198,005
Express Scripts Holding Company †		20,971		1,327,884
HCA Holdings Incorporated †		10,548		839,515
Henry Schein Incorporated †		5,768		472,918
Humana Incorporated		5,270		1,283,930
Laboratory Corporation of America Holdings †		3,713		560,552
McKesson Corporation		7,656		1,176,038
Patterson Companies Incorporated		3,004		116,105
Quest Diagnostics Incorporated		4,975		465,859
UnitedHealth Group Incorporated		35,308		6,915,072
Universal Health Services Incorporated Class B		3,210		356,117
				21,357,348
Health Care Technology: 0.06%
Cerner Corporation †		11,443		816,115
Life Sciences Tools & Services: 0.50%
Agilent Technologies Incorporated		11,736		753,451
Illumina Incorporated †		5,317		1,059,146
Mettler-Toledo International Incorporated †		939		587,964
PerkinElmer Incorporated		4,033		278,156
Quintiles Transnational Holdings Incorporated †		5,533		526,022
Thermo Fisher Scientific Incorporated		14,633		2,768,564
Waters Corporation †		2,928		525,635
				6,498,938
Pharmaceuticals: 2.94%
Allergan plc		12,087		2,477,231
Bristol-Myers Squibb Company		59,738		3,807,700
Eli Lilly & Company		35,416		3,029,485
Johnson & Johnson		98,100		12,753,981
Merck & Company Incorporated		99,810		6,390,834
Mylan NV †		19,457		610,366
Perrigo Company plc		4,830		408,860
Pfizer Incorporated		218,510		7,800,807
Zoetis Incorporated		17,918		1,142,452
				38,421,716
Industrials: 6.18%
Aerospace & Defense: 1.51%
Arconic Incorporated		14,167		352,475
General Dynamics Corporation		10,203		2,097,533
L-3 Technologies Incorporated		2,874		541,548
Lockheed Martin Corporation		9,153		2,840,084
Northrop Grumman Corporation		6,417		1,846,299
Raytheon Company		10,614		1,980,360
Rockwell Collins Incorporated		5,923		774,195
Textron Incorporated		9,698		522,528

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 19

Security name	Shares		Value
Aerospace & Defense (continued)
The Boeing Company		20,336	$	5,169,615
TransDigm Group Incorporated		1,779		454,801
United Technologies Corporation		27,053		3,140,312
				19,719,750
Air Freight & Logistics: 0.45%
C.H. Robinson Worldwide Incorporated		5,131		390,469
Expeditors International of Washington Incorporated		6,594		394,717
FedEx Corporation		8,997		2,029,543
United Parcel Service Incorporated Class B		25,102		3,014,499
				5,829,228
Airlines: 0.30%
Alaska Air Group Incorporated		4,489		342,376
American Airlines Group Incorporated		15,768		748,822
Delta Air Lines Incorporated		24,282		1,170,878
Southwest Airlines Company		20,098		1,125,086
United Continental Holdings Incorporated †		9,369		570,385
				3,957,547
Building Products: 0.22%
A.O. Smith Corporation		5,340		317,356
Allegion plc		3,470		300,051
Fortune Brands Home & Security Incorporated		5,596		376,219
Johnson Controls International plc		34,054		1,372,036
Masco Corporation		11,612		452,984
				2,818,646
Commercial Services & Supplies: 0.18%
Cintas Corporation		3,119		450,009
Republic Services Incorporated		8,369		552,856
Stericycle Incorporated †		3,102		222,165
Waste Management Incorporated		14,780		1,156,831
				2,381,861
Construction & Engineering: 0.05%
Fluor Corporation		5,102		214,794
Jacobs Engineering Group Incorporated		4,397		256,213
Quanta Services Incorporated †		5,510		205,909
				676,916
Electrical Equipment: 0.34%
Acuity Brands Incorporated		1,529		261,887
AMETEK Incorporated		8,459		558,632
Eaton Corporation plc		16,291		1,250,986
Emerson Electric Company		23,426		1,472,090
Rockwell Automation Incorporated		4,695		836,696
				4,380,291

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

20 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Industrial Conglomerates: 1.31%
3M Company		21,803	$	4,576,450
General Electric Company		317,959		7,688,249
Honeywell International Incorporated		27,802		3,940,655
Roper Industries Incorporated		3,733		908,612
				17,113,966
Machinery: 0.99%
Caterpillar Incorporated		21,615		2,695,607
Cummins Incorporated		5,743		964,996
Deere & Company		11,690		1,468,147
Dover Corporation		5,689		519,918
Flowserve Corporation		4,766		202,984
Fortive Corporation		11,162		790,158
Illinois Tool Works Incorporated		11,334		1,676,979
Ingersoll-Rand plc		9,291		828,478
Paccar Incorporated		12,832		928,267
Parker-Hannifin Corporation		4,884		854,798
Pentair plc		6,045		410,818
Snap-on Incorporated		2,102		313,219
Stanley Black & Decker Incorporated		5,613		847,395
Xylem Incorporated		6,560		410,853
				12,912,617
Professional Services: 0.17%
Equifax Incorporated		4,437		470,278
IHS Markit Limited †		13,265		584,721
Nielsen Holdings plc		12,304		510,001
Robert Half International Incorporated		4,619		232,520
Verisk Analytics Incorporated †		5,683		472,769
				2,270,289
Road & Rail: 0.56%
CSX Corporation		33,172		1,799,913
J.B. Hunt Transport Services Incorporated		3,120		346,570
Kansas City Southern		3,843		417,657
Norfolk Southern Corporation		10,496		1,387,991
Union Pacific Corporation		29,114		3,376,351
				7,328,482
Trading Companies & Distributors: 0.10%
Fastenal Company		10,513		479,183
United Rentals Incorporated †		3,091		428,845
W.W. Grainger Incorporated «		1,917		344,581
				1,252,609
Information Technology: 14.00%
Communications Equipment: 0.60%
Cisco Systems Incorporated		182,517		6,138,047
F5 Networks Incorporated †		2,320		279,699

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 21

Security name	Shares		Value
Communications Equipment (continued)
Harris Corporation		4,386	$	577,548
Juniper Networks Incorporated		13,887		386,475
Motorola Solutions Incorporated		5,937		503,873
				7,885,642
Electronic Equipment, Instruments & Components: 0.25%
Amphenol Corporation Class A		11,159		944,498
Corning Incorporated		32,944		985,684
FLIR Systems Incorporated		5,037		195,990
TE Connectivity Limited		12,910		1,072,305
				3,198,477
Internet Software & Services: 2.90%
Akamai Technologies Incorporated †		6,253		304,646
Alphabet Incorporated Class A †		10,860		10,574,599
Alphabet Incorporated Class C †		10,999		10,549,251
eBay Incorporated †		36,315		1,396,675
Facebook Incorporated Class A †		86,176		14,724,893
VeriSign Incorporated Ǡ		3,139		333,958
				37,884,022
IT Services: 2.41%
Accenture plc Class A		22,582		3,050,151
Alliance Data Systems Corporation		1,757		389,263
Automatic Data Processing Incorporated		16,222		1,773,389
Cognizant Technology Solutions Corporation Class A		21,556		1,563,672
CSRA Incorporated		5,958		192,265
DXC Technology Company		10,378		891,263
Fidelity National Information Services Incorporated		12,177		1,137,210
Fiserv Incorporated †		7,708		994,024
Gartner Incorporated †		3,316		412,544
Global Payments Incorporated		5,548		527,226
International Business Machines Corporation		31,603		4,584,963
MasterCard Incorporated Class A		34,128		4,818,874
Paychex Incorporated		11,695		701,232
PayPal Holdings Incorporated †		41,234		2,640,213
The Western Union Company		16,997		326,342
Total System Services Incorporated		6,114		400,467
Visa Incorporated Class A		66,648		7,014,036
				31,417,134
Semiconductors & Semiconductor Equipment: 2.25%
Advanced Micro Devices Incorporated Ǡ		29,400		374,850
Analog Devices Incorporated		13,438		1,157,952
Applied Materials Incorporated		38,873		2,024,895
Broadcom Limited		14,810		3,592,017
Intel Corporation		171,239		6,520,781
KLA-Tencor Corporation		5,739		608,334
Lam Research Corporation		5,942		1,099,508

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

22 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Semiconductors & Semiconductor Equipment (continued)
Microchip Technology Incorporated «		8,506	$	763,669
Micron Technology Incorporated †		40,634		1,598,135
NVIDIA Corporation		21,862		3,908,270
Qorvo Incorporated †		4,599		325,057
QUALCOMM Incorporated		53,946		2,796,561
Skyworks Solutions Incorporated		6,634		676,005
Texas Instruments Incorporated		36,215		3,246,313
Xilinx Incorporated		9,108		645,120
				29,337,467
Software: 3.06%
Activision Blizzard Incorporated		27,446		1,770,541
Adobe Systems Incorporated †		18,031		2,689,865
Ansys Incorporated †		3,108		381,445
Autodesk Incorporated †		8,007		898,866
CA Incorporated		11,520		384,538
Cadence Design Systems Incorporated †		10,246		404,410
Citrix Systems Incorporated		5,259		403,996
Electronic Arts Incorporated †		11,263		1,329,710
Intuit Incorporated		8,904		1,265,615
Microsoft Corporation		280,510		20,895,190
Oracle Corporation		110,060		5,321,401
Red Hat Incorporated †		6,467		716,932
Salesforce.com Incorporated †		24,932		2,329,147
Symantec Corporation		22,544		739,669
Synopsys Incorporated †		5,488		441,949
				39,973,274
Technology Hardware, Storage & Peripherals: 2.53%
Apple Incorporated		187,953		28,967,316
Hewlett Packard Enterprise Company		59,741		878,790
HP Incorporated		60,977		1,217,101
NetApp Incorporated		9,841		430,642
Seagate Technology plc		10,689		354,554
Western Digital Corporation		10,814		934,330
Xerox Corporation		7,783		259,096
				33,041,829
Materials: 1.80%
Chemicals: 1.34%
Air Products & Chemicals Incorporated		7,975		1,205,980
Albemarle Corporation		4,047		551,647
CF Industries Holdings Incorporated		8,453		297,207
DowDupont Incorporated		85,057		5,888,496
Eastman Chemical Company		5,290		478,692
Ecolab Incorporated		9,498		1,221,538
FMC Corporation		4,904		437,976
International Flavors & Fragrances Incorporated		2,885		412,295
LyondellBasell Industries NV Class A		11,861		1,174,832

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 23

Security name	Shares		Value
Chemicals (continued)
Monsanto Company		16,057	$	1,923,950
PPG Industries Incorporated		9,386		1,019,883
Praxair Incorporated		10,467		1,462,659
The Mosaic Company		12,719		274,603
The Sherwin-Williams Company		3,001		1,074,478
				17,424,236
Construction Materials: 0.08%
Martin Marietta Materials Incorporated		2,290		472,267
Vulcan Materials Company		4,833		578,027
				1,050,294
Containers & Packaging: 0.22%
Avery Dennison Corporation		3,235		318,130
Ball Corporation		12,846		530,540
International Paper Company		15,111		858,607
Packaging Corporation of America		3,441		394,614
Sealed Air Corporation		6,919		295,580
WestRock Company		9,264		525,547
				2,923,018
Metals & Mining: 0.16%
Freeport-McMoRan Incorporated †		49,250		691,470
Newmont Mining Corporation		19,462		730,020
Nucor Corporation		11,685		654,827
				2,076,317
Real Estate: 1.80%
Equity REITs: 1.77%
Alexandria Real Estate Equities Incorporated		3,416		406,402
American Tower Corporation		15,633		2,136,718
Apartment Investment & Management Company Class A		5,742		251,844
AvalonBay Communities Incorporated		5,040		899,237
Boston Properties Incorporated		5,630		691,814
Crown Castle International Corporation		14,793		1,479,004
Digital Realty Trust Incorporated		7,478		884,872
Duke Realty Corporation		13,002		374,718
Equinix Incorporated		2,838		1,266,599
Equity Residential		13,390		882,803
Essex Property Trust Incorporated		2,406		611,196
Extra Space Storage Incorporated		4,607		368,191
Federal Realty Investment Trust		2,633		327,045
GGP Incorporated		22,792		473,390
HCP Incorporated		17,110		476,171
Host Hotels & Resorts Incorporated		27,028		499,748
Iron Mountain Incorporated		9,641		375,035
Kimco Realty Corporation		15,516		303,338
Mid-America Apartment Communities Incorporated		4,148		443,338

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

24 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Equity REITs (continued)
Prologis Incorporated		19,435	$	1,233,345
Public Storage Incorporated		5,465		1,169,455
Realty Income Corporation		10,004		572,129
Regency Centers Corporation		5,397		334,830
SBA Communications Corporation †		4,390		632,380
Simon Property Group Incorporated		11,309		1,820,862
SL Green Realty Corporation		3,622		366,981
The Macerich Company		3,966		218,011
UDR Incorporated		9,780		371,933
Ventas Incorporated		13,004		846,951
Vornado Realty Trust		6,284		483,114
Welltower Incorporated		13,466		946,390
Weyerhaeuser Company		27,554		937,663
				23,085,507
Real Estate Management & Development: 0.03%
CBRE Group Incorporated Class A †		10,984		416,074
Telecommunication Services: 1.31%
Diversified Telecommunication Services: 1.31%
AT&T Incorporated		224,972		8,812,153
CenturyLink Incorporated «		19,932		376,715
Level 3 Communications Incorporated †		10,696		569,990
Verizon Communications Incorporated		149,488		7,398,161
				17,157,019
Utilities: 1.88%
Electric Utilities: 1.18%
Alliant Energy Corporation		8,445		351,059
American Electric Power Company Incorporated		17,945		1,260,457
Duke Energy Corporation		25,487		2,138,869
Edison International		11,917		919,635
Entergy Corporation		6,553		500,387
Eversource Energy		11,566		699,049
Exelon Corporation		35,074		1,321,238
FirstEnergy Corporation		16,219		500,032
NextEra Energy Incorporated		17,073		2,502,048
PG&E Corporation		18,705		1,273,623
Pinnacle West Capital Corporation		4,075		344,582
PPL Corporation		24,942		946,549
The Southern Company		36,402		1,788,794
Xcel Energy Incorporated		18,521		876,414
				15,422,736
Independent Power & Renewable Electricity Producers: 0.04%
AES Corporation		24,093		265,505
NRG Energy Incorporated		11,063		283,102
				548,607

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 25

Security name						Shares		Value
Multi-Utilities: 0.62%
Ameren Corporation							8,864	$	512,694
CenterPoint Energy Incorporated							15,707		458,801
CMS Energy Corporation							10,289		476,586
Consolidated Edison Incorporated							11,302		911,845
Dominion Resources Incorporated							23,450		1,804,009
DTE Energy Company							6,549		703,101
NiSource Incorporated							11,871		303,779
Public Service Enterprise Group Incorporated							18,471		854,284
SCANA Corporation							5,216		252,924
Sempra Energy							9,159		1,045,317
WEC Energy Group Incorporated							11,512		722,723
									8,046,063
Water Utilities: 0.04%
American Water Works Company Incorporated							6,521		527,614
Total Common Stocks (Cost $421,677,596)									787,570,398
	Interest rate			Maturity date		Principal
Non-Agency Mortgage-Backed Securities: 0.00%
Citigroup Mortgage Loan Trust Incorporated Series 2004-HYB4 Class AA (1 Month LIBOR +0.33%) ±		1.57	%		12-25-2034	$	14,478		13,411
Total Non-Agency Mortgage-Backed Securities (Cost $14,478)									13,411
				Expiration date		Shares
Rights: 0.00%
Consumer Staples: 0.00%
Food & Staples Retailing: 0.00%
Safeway Casa Ley Contingent Value Rights †(a)					1-30-2018		6,765		0
Safeway PDC LLC Contingent Value Rights †(a)					1-30-2018		6,765		115
Total Rights (Cost $7,056)									115
				Maturity date		Principal
U.S. Treasury Securities: 38.72%
U.S. Treasury Bond		2.75			8-15-2042	$	1,340,000		1,323,093
U.S. Treasury Bond		2.75			11-15-2042		1,781,000		1,756,929
U.S. Treasury Bond		2.88			5-15-2043		2,534,000		2,552,609
U.S. Treasury Bond		3.00			5-15-2042		904,000		934,545
U.S. Treasury Bond		3.13			11-15-2041		846,000		894,513
U.S. Treasury Bond		3.13			2-15-2042		1,066,000		1,126,754
U.S. Treasury Bond		3.13			2-15-2043		1,783,000		1,880,020
U.S. Treasury Bond		3.38			5-15-2044		2,936,000		3,234,417
U.S. Treasury Bond		3.50			2-15-2039		731,000		824,888
U.S. Treasury Bond		3.63			8-15-2043		2,200,000		2,522,609
U.S. Treasury Bond		3.63			2-15-2044		2,898,000		3,328,059
U.S. Treasury Bond		3.75			8-15-2041		929,000		1,085,152
U.S. Treasury Bond		3.75			11-15-2043		2,870,000		3,361,824
U.S. Treasury Bond		3.88			8-15-2040		946,000		1,124,447

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

26 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Bond		4.25	%		5-15-2039	$	681,000	$	851,436
U.S. Treasury Bond		4.25			11-15-2040		977,000		1,225,410
U.S. Treasury Bond		4.38			2-15-2038		381,000		483,900
U.S. Treasury Bond		4.38			11-15-2039		757,000		962,809
U.S. Treasury Bond		4.38			5-15-2040		1,078,000		1,373,313
U.S. Treasury Bond		4.38			5-15-2041		842,000		1,076,346
U.S. Treasury Bond		4.50			2-15-2036		837,000		1,076,003
U.S. Treasury Bond		4.50			5-15-2038		428,000		552,521
U.S. Treasury Bond		4.50			8-15-2039		721,000		931,808
U.S. Treasury Bond		4.63			2-15-2040		1,276,000		1,678,538
U.S. Treasury Bond		4.75			2-15-2037		264,000		350,398
U.S. Treasury Bond		4.75			2-15-2041		1,084,000		1,455,524
U.S. Treasury Bond		5.00			5-15-2037		375,000		512,256
U.S. Treasury Bond		5.25			11-15-2028		479,000		614,093
U.S. Treasury Bond		5.25			2-15-2029		349,000		449,065
U.S. Treasury Bond		5.38			2-15-2031		752,000		1,006,446
U.S. Treasury Bond		5.50			8-15-2028		369,000		480,334
U.S. Treasury Bond		6.13			11-15-2027		525,000		705,694
U.S. Treasury Bond		6.13			8-15-2029		293,000		406,286
U.S. Treasury Bond		6.25			5-15-2030		478,000		678,069
U.S. Treasury Bond		6.38			8-15-2027		224,000		304,675
U.S. Treasury Bond		6.88			8-15-2025		224,000		299,994
U.S. Treasury Note		0.63			4-30-2018		1,753,000		1,746,568
U.S. Treasury Note		0.63			6-30-2018		1,609,000		1,601,144
U.S. Treasury Note		0.75			1-31-2018		1,502,000		1,499,926
U.S. Treasury Note		0.75			2-28-2018		3,204,000		3,198,243
U.S. Treasury Note		0.75			3-31-2018		1,422,000		1,418,778
U.S. Treasury Note		0.75			4-15-2018		1,350,000		1,346,415
U.S. Treasury Note		0.75			4-30-2018		1,588,000		1,583,405
U.S. Treasury Note		0.75			7-31-2018		1,717,000		1,708,952
U.S. Treasury Note		0.75			8-31-2018		1,718,000		1,708,470
U.S. Treasury Note		0.75			9-30-2018		1,732,000		1,721,513
U.S. Treasury Note		0.75			10-31-2018		1,732,000		1,720,295
U.S. Treasury Note		0.75			2-15-2019		1,392,000		1,379,276
U.S. Treasury Note		0.75			7-15-2019		1,583,000		1,563,089
U.S. Treasury Note		0.75			8-15-2019		1,584,000		1,562,963
U.S. Treasury Note		0.88			1-31-2018		1,231,000		1,229,803
U.S. Treasury Note		0.88			3-31-2018		1,577,000		1,574,039
U.S. Treasury Note		0.88			5-31-2018		1,585,000		1,580,976
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		1,382,670
U.S. Treasury Note		0.88			4-15-2019		1,460,000		1,447,453
U.S. Treasury Note		0.88			5-15-2019		1,466,000		1,452,657
U.S. Treasury Note		0.88			6-15-2019		1,485,000		1,470,556
U.S. Treasury Note		0.88			7-31-2019		811,000		802,478
U.S. Treasury Note		0.88			9-15-2019		1,550,000		1,531,896
U.S. Treasury Note		1.00			2-15-2018		1,336,000		1,335,108
U.S. Treasury Note		1.00			3-15-2018		1,338,000		1,336,743
U.S. Treasury Note		1.00			5-15-2018		1,328,000		1,326,133
U.S. Treasury Note		1.00			5-31-2018		1,878,000		1,874,699

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 27

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.00	%		8-15-2018	$	1,291,000	$	1,287,167
U.S. Treasury Note		1.00			9-15-2018		1,292,000		1,287,458
U.S. Treasury Note		1.00			11-30-2018		1,540,000		1,532,962
U.S. Treasury Note		1.00			3-15-2019		1,383,000		1,374,680
U.S. Treasury Note		1.00			6-30-2019		622,000		617,214
U.S. Treasury Note		1.00			8-31-2019		1,842,000		1,825,739
U.S. Treasury Note		1.00			9-30-2019		1,695,000		1,679,109
U.S. Treasury Note		1.00			10-15-2019		1,596,000		1,580,102
U.S. Treasury Note		1.00			11-15-2019		1,433,000		1,417,830
U.S. Treasury Note		1.00			11-30-2019		1,985,000		1,963,754
U.S. Treasury Note		1.13			6-15-2018		1,326,000		1,324,498
U.S. Treasury Note		1.13			1-15-2019		1,444,000		1,438,641
U.S. Treasury Note		1.13			1-31-2019		1,783,000		1,776,105
U.S. Treasury Note		1.13			2-28-2019		1,815,000		1,807,627
U.S. Treasury Note		1.13			5-31-2019		690,000		686,442
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		1,965,578
U.S. Treasury Note		1.13			4-30-2020		1,330,000		1,315,038
U.S. Treasury Note		1.13			2-28-2021		3,264,000		3,199,485
U.S. Treasury Note		1.13			6-30-2021		3,343,000		3,264,648
U.S. Treasury Note		1.13			7-31-2021		2,232,000		2,176,985
U.S. Treasury Note		1.13			8-31-2021		2,233,000		2,175,692
U.S. Treasury Note		1.13			9-30-2021		2,188,000		2,129,796
U.S. Treasury Note		1.25			10-31-2018		1,759,000		1,756,389
U.S. Treasury Note		1.25			11-15-2018		1,370,000		1,367,592
U.S. Treasury Note		1.25			11-30-2018		1,654,000		1,651,157
U.S. Treasury Note		1.25			12-15-2018		1,363,000		1,360,604
U.S. Treasury Note		1.25			12-31-2018		1,788,000		1,784,648
U.S. Treasury Note		1.25			1-31-2019		1,335,000		1,331,975
U.S. Treasury Note		1.25			3-31-2019		1,834,000		1,829,128
U.S. Treasury Note		1.25			4-30-2019		586,000		584,260
U.S. Treasury Note		1.25			5-31-2019		1,787,000		1,781,276
U.S. Treasury Note		1.25			6-30-2019		1,790,000		1,783,497
U.S. Treasury Note		1.25			8-31-2019		1,790,000		1,782,169
U.S. Treasury Note		1.25			10-31-2019		804,000		799,980
U.S. Treasury Note		1.25			1-31-2020		3,442,000		3,418,605
U.S. Treasury Note		1.25			2-29-2020		1,745,000		1,732,526
U.S. Treasury Note		1.25			3-31-2021		3,250,000		3,196,426
U.S. Treasury Note		1.25			10-31-2021		2,188,000		2,138,428
U.S. Treasury Note		1.25			7-31-2023		1,829,000		1,748,838
U.S. Treasury Note		1.38			6-30-2018		1,357,000		1,357,795
U.S. Treasury Note		1.38			7-31-2018		1,610,000		1,610,503
U.S. Treasury Note		1.38			9-30-2018		2,875,000		2,874,775
U.S. Treasury Note		1.38			11-30-2018		787,000		786,754
U.S. Treasury Note		1.38			12-31-2018		968,000		967,660
U.S. Treasury Note		1.38			2-28-2019		1,295,000		1,294,089
U.S. Treasury Note		1.38			7-31-2019		1,787,000		1,783,929
U.S. Treasury Note		1.38			12-15-2019		1,651,000		1,645,776
U.S. Treasury Note		1.38			1-15-2020		1,638,000		1,632,113
U.S. Treasury Note		1.38			1-31-2020		2,293,000		2,284,491

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

28 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.38	%		2-15-2020	$	1,667,000	$	1,659,967
U.S. Treasury Note		1.38			2-29-2020		3,442,000		3,427,076
U.S. Treasury Note		1.38			3-31-2020		3,442,000		3,425,462
U.S. Treasury Note		1.38			4-30-2020		3,442,000		3,424,118
U.S. Treasury Note		1.38			5-31-2020		1,380,000		1,372,345
U.S. Treasury Note		1.38			8-31-2020		3,350,000		3,326,314
U.S. Treasury Note		1.38			9-30-2020		3,356,000		3,330,437
U.S. Treasury Note		1.38			10-31-2020		3,178,000		3,151,061
U.S. Treasury Note		1.38			1-31-2021		3,192,000		3,157,586
U.S. Treasury Note		1.38			4-30-2021		3,245,000		3,203,170
U.S. Treasury Note		1.38			5-31-2021		3,248,000		3,203,086
U.S. Treasury Note		1.38			6-30-2023		1,733,000		1,670,382
U.S. Treasury Note		1.38			8-31-2023		1,817,000		1,747,656
U.S. Treasury Note		1.38			9-30-2023		1,778,000		1,708,894
U.S. Treasury Note		1.50			8-31-2018		2,781,000		2,784,259
U.S. Treasury Note		1.50			12-31-2018		1,855,000		1,857,029
U.S. Treasury Note		1.50			1-31-2019		1,716,000		1,717,676
U.S. Treasury Note		1.50			2-28-2019		1,826,000		1,827,569
U.S. Treasury Note		1.50			3-31-2019		645,000		645,680
U.S. Treasury Note		1.50			5-31-2019		2,387,000		2,389,145
U.S. Treasury Note		1.50			10-31-2019		3,442,000		3,441,597
U.S. Treasury Note		1.50			11-30-2019		3,133,000		3,132,143
U.S. Treasury Note		1.50			4-15-2020		1,675,000		1,671,729
U.S. Treasury Note		1.50			5-15-2020		1,678,000		1,674,329
U.S. Treasury Note		1.50			5-31-2020		3,442,000		3,433,798
U.S. Treasury Note		1.50			6-15-2020		1,680,000		1,676,063
U.S. Treasury Note		1.50			7-15-2020		1,683,000		1,678,069
U.S. Treasury Note		1.50			8-15-2020		1,684,000		1,678,672
U.S. Treasury Note		1.50			1-31-2022		1,625,000		1,600,117
U.S. Treasury Note		1.50			2-28-2023		1,635,000		1,592,784
U.S. Treasury Note		1.50			3-31-2023		1,679,000		1,633,942
U.S. Treasury Note		1.50			8-15-2026		4,143,000		3,877,751
U.S. Treasury Note		1.63			3-31-2019		2,104,000		2,109,918
U.S. Treasury Note		1.63			4-30-2019		1,703,000		1,707,657
U.S. Treasury Note		1.63			6-30-2019		2,157,000		2,162,898
U.S. Treasury Note		1.63			7-31-2019		2,128,000		2,133,902
U.S. Treasury Note		1.63			8-31-2019		3,442,000		3,451,546
U.S. Treasury Note		1.63			12-31-2019		3,442,000		3,449,260
U.S. Treasury Note		1.63			3-15-2020		1,667,000		1,669,344
U.S. Treasury Note		1.63			6-30-2020		3,442,000		3,444,151
U.S. Treasury Note		1.63			7-31-2020		3,213,000		3,214,004
U.S. Treasury Note		1.63			11-30-2020		2,166,000		2,162,446
U.S. Treasury Note		1.63			8-15-2022		1,250,000		1,233,643
U.S. Treasury Note		1.63			8-31-2022		2,373,000		2,339,630
U.S. Treasury Note		1.63			11-15-2022		2,108,000		2,074,733
U.S. Treasury Note		1.63			4-30-2023		1,711,000		1,675,109
U.S. Treasury Note		1.63			5-31-2023		1,714,000		1,676,372
U.S. Treasury Note		1.63			10-31-2023		1,824,000		1,777,688
U.S. Treasury Note		1.63			2-15-2026		4,269,000		4,056,717
U.S. Treasury Note		1.63			5-15-2026		4,111,000		3,897,581

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 29

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		1.75	%		10-31-2018	$	704,000	$	706,640
U.S. Treasury Note		1.75			9-30-2019		3,441,000		3,458,205
U.S. Treasury Note		1.75			10-31-2020		1,585,000		1,589,520
U.S. Treasury Note		1.75			12-31-2020		3,353,000		3,358,501
U.S. Treasury Note		1.75			11-30-2021		2,003,000		1,995,489
U.S. Treasury Note		1.75			2-28-2022		1,637,000		1,628,367
U.S. Treasury Note		1.75			3-31-2022		1,640,000		1,630,198
U.S. Treasury Note		1.75			4-30-2022		1,612,000		1,601,484
U.S. Treasury Note		1.75			5-15-2022		1,448,000		1,439,855
U.S. Treasury Note		1.75			5-31-2022		2,343,000		2,326,892
U.S. Treasury Note		1.75			6-30-2022		2,347,000		2,329,214
U.S. Treasury Note		1.75			9-30-2022		1,771,000		1,754,120
U.S. Treasury Note		1.75			1-31-2023		1,684,000		1,662,950
U.S. Treasury Note		1.75			5-15-2023		3,117,000		3,070,489
U.S. Treasury Note		1.88			6-30-2020		1,888,000		1,902,160
U.S. Treasury Note		1.88			11-30-2021		1,649,000		1,652,027
U.S. Treasury Note		1.88			1-31-2022		2,358,000		2,358,368
U.S. Treasury Note		1.88			2-28-2022		2,348,000		2,347,908
U.S. Treasury Note		1.88			3-31-2022		2,371,000		2,369,333
U.S. Treasury Note		1.88			4-30-2022		2,376,000		2,373,030
U.S. Treasury Note		1.88			5-31-2022		1,795,000		1,792,896
U.S. Treasury Note		1.88			7-31-2022		2,337,000		2,331,158
U.S. Treasury Note		1.88			8-31-2022		1,754,000		1,748,861
U.S. Treasury Note		1.88			10-31-2022		1,650,000		1,643,684
U.S. Treasury Note		1.88			8-31-2024		1,968,000		1,932,099
U.S. Treasury Note		2.00			7-31-2020		1,306,000		1,319,876
U.S. Treasury Note		2.00			9-30-2020		2,093,000		2,114,829
U.S. Treasury Note		2.00			11-30-2020		2,266,000		2,288,483
U.S. Treasury Note		2.00			2-28-2021		2,421,000		2,443,791
U.S. Treasury Note		2.00			5-31-2021		1,559,000		1,572,519
U.S. Treasury Note		2.00			8-31-2021		1,641,000		1,653,500
U.S. Treasury Note		2.00			10-31-2021		1,649,000		1,660,337
U.S. Treasury Note		2.00			11-15-2021		2,485,000		2,503,443
U.S. Treasury Note		2.00			12-31-2021		2,300,000		2,313,477
U.S. Treasury Note		2.00			2-15-2022		1,679,000		1,689,428
U.S. Treasury Note		2.00			7-31-2022		1,778,000		1,784,320
U.S. Treasury Note		2.00			11-30-2022		1,625,000		1,627,539
U.S. Treasury Note		2.00			2-15-2023		3,077,000		3,077,841
U.S. Treasury Note		2.00			4-30-2024		1,930,000		1,914,394
U.S. Treasury Note		2.00			5-31-2024		1,934,000		1,917,304
U.S. Treasury Note		2.00			6-30-2024		1,939,000		1,920,898
U.S. Treasury Note		2.00			2-15-2025		4,486,000		4,422,916
U.S. Treasury Note		2.00			8-15-2025		4,495,000		4,416,162
U.S. Treasury Note		2.00			11-15-2026		4,255,000		4,144,636
U.S. Treasury Note		2.13			8-31-2020		1,477,000		1,497,828
U.S. Treasury Note		2.13			1-31-2021		1,409,000		1,428,264
U.S. Treasury Note		2.13			6-30-2021		1,516,000		1,535,365
U.S. Treasury Note		2.13			8-15-2021		2,440,000		2,470,405
U.S. Treasury Note		2.13			9-30-2021		1,633,000		1,652,328
U.S. Treasury Note		2.13			12-31-2021		1,626,000		1,643,784

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

30 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		2.13	%		6-30-2022	$	1,615,000	$	1,629,888
U.S. Treasury Note		2.13			12-31-2022		1,678,000		1,689,602
U.S. Treasury Note		2.13			11-30-2023		1,638,000		1,642,415
U.S. Treasury Note		2.13			2-29-2024		1,960,000		1,960,689
U.S. Treasury Note		2.13			3-31-2024		1,961,000		1,960,540
U.S. Treasury Note		2.13			7-31-2024		1,927,000		1,923,161
U.S. Treasury Note		2.13			5-15-2025		4,466,000		4,435,645
U.S. Treasury Note		2.25			7-31-2018		521,000		524,867
U.S. Treasury Note		2.25			3-31-2021		1,440,000		1,465,200
U.S. Treasury Note		2.25			4-30-2021		1,514,000		1,540,377
U.S. Treasury Note		2.25			7-31-2021		2,618,000		2,662,281
U.S. Treasury Note		2.25			12-31-2023		1,886,000		1,902,871
U.S. Treasury Note		2.25			1-31-2024		1,914,000		1,930,075
U.S. Treasury Note		2.25			11-15-2024		4,492,000		4,512,705
U.S. Treasury Note		2.25			11-15-2025		4,512,000		4,509,885
U.S. Treasury Note		2.25			2-15-2027		3,006,000		2,986,508
U.S. Treasury Note		2.25			8-15-2027		1,586,000		1,574,477
U.S. Treasury Note		2.38			5-31-2018		621,000		625,439
U.S. Treasury Note		2.38			6-30-2018		795,000		801,118
U.S. Treasury Note		2.38			12-31-2020		1,317,000		1,345,449
U.S. Treasury Note		2.38			8-15-2024		4,465,000		4,526,219
U.S. Treasury Note		2.38			5-15-2027		4,355,000		4,371,163
U.S. Treasury Note		2.50			8-15-2023		2,662,000		2,729,798
U.S. Treasury Note		2.50			5-15-2024		4,360,000		4,457,589
U.S. Treasury Note		2.63			1-31-2018		861,000		865,089
U.S. Treasury Note		2.63			4-30-2018		657,000		662,158
U.S. Treasury Note		2.63			8-15-2020		3,367,000		3,461,828
U.S. Treasury Note		2.63			11-15-2020		5,315,000		5,469,467
U.S. Treasury Note		2.75			2-28-2018		756,000		760,784
U.S. Treasury Note		2.75			2-15-2019		1,365,000		1,389,527
U.S. Treasury Note		2.75			11-15-2023		3,936,000		4,089,596
U.S. Treasury Note		2.75			2-15-2024		3,410,000		3,540,406
U.S. Treasury Note		2.88			3-31-2018		858,000		864,902
U.S. Treasury Note		3.13			5-15-2019		1,768,000		1,815,653
U.S. Treasury Note		3.13			5-15-2021		1,657,000		1,737,326
U.S. Treasury Note		3.38			11-15-2019		3,180,000		3,303,970
U.S. Treasury Note		3.50			2-15-2018		1,278,000		1,288,885
U.S. Treasury Note		3.50			5-15-2020		2,864,000		3,005,858
U.S. Treasury Note		3.63			8-15-2019		1,545,000		1,606,257
U.S. Treasury Note		3.63			2-15-2020		2,648,000		2,776,159
U.S. Treasury Note		3.63			2-15-2021		2,765,000		2,939,649
U.S. Treasury Note		3.75			11-15-2018		1,505,000		1,544,036
U.S. Treasury Note		3.88			5-15-2018		689,000		700,034
U.S. Treasury Note		4.00			8-15-2018		788,000		805,976
U.S. Treasury Note		6.00			2-15-2026		445,000		573,024
U.S. Treasury Note		6.25			8-15-2023		378,000		465,988
U.S. Treasury Note		6.50			11-15-2026		296,000		399,184
U.S. Treasury Note		6.63			2-15-2027		215,000		293,794
U.S. Treasury Note		6.75			8-15-2026		221,000		301,000
U.S. Treasury Note		7.13			2-15-2023		260,000		328,067

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

Portfolio of investments—September 30, 2017 Wells Fargo Index Asset Allocation Fund 31

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Note		7.25	%		8-15-2022	$	261,000	$	325,557
U.S. Treasury Note		7.50			11-15-2024		240,000		325,163
U.S. Treasury Note		7.63			11-15-2022		140,000		178,659
U.S. Treasury Note		7.63			2-15-2025		216,000		296,738
U.S. Treasury Note		7.88			2-15-2021		180,000		216,302
U.S. Treasury Note		8.00			11-15-2021		511,000		636,554
U.S. Treasury Note		8.13			8-15-2019		307,000		344,679
U.S. Treasury Note		8.13			5-15-2021		181,000		221,619
U.S. Treasury Note		8.13			8-15-2021		175,000		216,583
U.S. Treasury Note		8.50			2-15-2020		162,000		188,433
U.S. Treasury Note		8.75			5-15-2020		130,000		154,080
U.S. Treasury Note		8.75			8-15-2020		288,000		345,578
U.S. Treasury Note		8.88			2-15-2019		306,000		337,186
U.S. Treasury Note		9.00			11-15-2018		193,000		209,397
U.S. Treasury Note		9.13			5-15-2018		169,000		177,120
Total U.S. Treasury Securities (Cost $505,544,112)									505,410,491
	Yield					Shares
Short-Term Investments: 0.98%
Investment Companies: 0.85%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25					3,363,101		3,363,437
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92					7,658,402		7,658,402
									11,021,839
						Principal
U.S. Treasury Securities: 0.13%
U.S. Treasury Bill (z)#		0.95			11-30-2017	$	1,700,000		1,697,258
Total Short-Term Investments (Cost $12,719,012)									12,719,097	��

Total investments in securities (Cost $940,014,999)	100.05	%		1,305,775,570
Other assets and liabilities, net	(0.05	)		(614,805	)
Total net assets	100.00	%	$	1,305,160,765

« 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.

± 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.

(r) The investment is a non-registered investment company 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.

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

32 Wells Fargo Index Asset Allocation Fund Portfolio of investments—September 30, 2017

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost		Notional value		Unrealized gains		Unrealized losses
Long
S&P 500 E-Mini Index		11		12-15-2017	$	1,361,298	$	1,383,855	$	22,557	$	0
5-Year U.S. Treasury Notes		53		12-29-2017		6,255,575		6,227,500		0		(28,075	)
Short
10-Year U.S. Treasury Notes		1,152		12-19-2017		145,758,066		144,360,000		1,398,066		0

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Common Stocks
Financials
Banks
Wells Fargo & Company		168,853		2,363		7,159		164,057	$	10,774	$	1,838,089	$	254,268	$	9,047,744		0.69	%
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		2,850,409		50,877,676		50,364,984		3,363,101		265		98		23,373		3,363,437
Wells Fargo Government Money Market Fund Select Class		12,501,900		135,135,323		139,978,821		7,658,402		0		0		116,841		7,658,402
																11,021,839		0.85
Affiliated securities no longer held at end of period										0		0		0		0		0.00
									$	11,039	$	1,838,187	$	394,482	$	20,069,583		1.54	%

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

Statement of assets and liabilities—September 30, 2017 Wells Fargo Index Asset Allocation Fund 33

Assets
Investments in unaffiliated securities (including $3,285,186 of securities loaned), at value (cost $923,452,963)	$	1,285,705,987
Investments in affiliated securities, at value (cost $16,562,036)		20,069,583
Cash		20,836
Receivable for Fund shares sold		1,146,898
Receivable for dividends and interest		3,359,512
Receivable for daily variation margin on open futures contracts		274,265
Receivable for securities lending income		2,152
Prepaid expenses and other assets		354,157
Total assets		1,310,933,390
Liabilities
Payable upon receipt of securities loaned		3,363,075
Payable for Fund shares redeemed		1,099,561
Management fee payable		649,415
Administration fees payable		209,425
Distribution fees payable		96,969
Payable for daily variation margin on open futures contracts		8,893
Accrued expenses and other liabilities		345,287
Total liabilities		5,772,625
Total net assets	$	1,305,160,765
NET ASSETS CONSIST OF
Paid-in capital	$	957,721,417
Undistributed net investment income		79,910
Accumulated net realized losses on investments		(19,793,681	)
Net unrealized gains on investments		367,153,119
Total net assets	$	1,305,160,765
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	822,769,286
Shares outstanding – Class A1		25,720,705
Net asset value per share – Class A		$31.99
Maximum offering price per share – Class A2		$33.94
Net assets – Class C	$	152,819,735
Shares outstanding – Class C1		7,856,064
Net asset value per share – Class C		$19.45
Net assets – Administrator Class	$	268,512,165
Shares outstanding – Administrator Class1		8,393,110
Net asset value per share – Administrator Class		$31.99
Net assets – Institutional Class	$	61,059,579
Shares outstanding – Institutional Class1		1,910,546
Net asset value per share – Institutional Class		$31.96

¹  The Fund has an unlimited number of authorized shares.

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

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

34 Wells Fargo Index Asset Allocation Fund Statement of operations—year ended September 30, 2017

Investment income
Dividends	$	15,691,058
Interest		7,103,767
Income from affiliated securities		394,482
Total investment income		23,189,307
Expenses
Management fee		7,552,100
Administration fees
Class A		1,719,463
Class B		74	1
Class C		312,468
Administrator Class		299,199
Institutional Class		51,148	2
Shareholder servicing fees
Class A		2,046,980
Class B		88	1
Class C		371,985
Administrator Class		573,066
Distribution fees
Class B		265	1
Class C		1,115,956
Custody and accounting fees		47,330
Professional fees		35,480
Registration fees		37,433
Shareholder report expenses		49,510
Trustees’ fees and expenses		21,000
Other fees and expenses		962
Total expenses		14,234,507
Less: Fee waivers and/or expense reimbursements		(216,011	)
Net expenses		14,018,496
Net investment income		9,170,811
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		2,605,243
Affiliated securities		11,039
Futures transactions		7,283,681
Net realized gains on investments		9,899,963
Net change in unrealized gains (losses) on:
Unaffiliated securities		95,630,481
Affiliated securities		1,838,187
Futures transactions		1,024,296
Net change in unrealized gains (losses) on investments		98,492,964
Net realized and unrealized gains (losses) on investments		108,392,927
Net increase in net assets resulting from operations	$	117,563,738

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 September 30, 2017

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

Statement of changes in net assets Wells Fargo Index Asset Allocation Fund 35

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment income				$	9,170,811					$	7,739,055
Net realized gains on investments					9,899,963						9,092,899
Net change in unrealized gains (losses) on investments					98,492,964						77,072,669
Net increase in net assets resulting from operations					117,563,738						93,904,623
Distributions to shareholders from
Net investment income
Class A					(7,312,513	)					(5,683,773	)
Class B					0	1					(266	)
Class C					(70,275	)					(93,279	)
Administrator Class					(2,579,847	)					(1,345,968	)
Institutional Class					(568,243	)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					(21,197,246	)					(56,604,806	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,073,618			63,158,800			4,200,951			120,374,602
Class B		0	1		0	1		15,531			269,837
Class C		2,328,600			43,112,461			4,802,237			84,206,499
Administrator Class		4,249,283			130,093,840			5,938,408			170,655,831
Institutional Class		2,337,480	2		71,528,209	2		N/A			N/A
					307,893,310						375,506,769
Reinvestment of distributions
Class A		472,960			14,326,956			1,593,398			44,672,620
Class B		0	1		0	1		338			5,803
Class C		62,398			1,135,663			192,234			3,269,192
Administrator Class		127,144			3,867,648			187,396			5,266,424
Institutional Class		24,813	2		761,237	2		N/A			N/A
					20,091,504						53,214,039
Payment for shares redeemed
Class A		(4,807,553	)		(146,972,158	)		(3,450,379	)		(99,644,371	)
Class B		(11,694	)1		(213,027	)1		(12,802	)		(225,638	)
Class C		(2,145,127	)		(40,093,776	)		(934,641	)		(16,428,230	)
Administrator Class		(2,967,092	)		(90,263,946	)		(2,111,814	)		(61,128,010	)
Institutional Class		(451,747	)2		(14,069,406	)2		N/A			N/A
					(291,612,313	)					(177,426,249	)
Net increase in net assets resulting from capital share transactions					36,372,501						251,294,559
Total increase in net assets					132,738,993						288,594,376
Net assets
Beginning of period					1,172,421,772						883,827,396
End of period				$	1,305,160,765					$	1,172,421,772
Undistributed net investment income				$	79,910					$	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 September 30, 2017

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

36 Wells Fargo Index Asset Allocation Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$29.61			$28.72			$28.20			$24.48			$22.17
Net investment income		0.25			0.22			0.27			0.38			0.34
Net realized and unrealized gains (losses) on investments		2.67			2.45			0.76			3.72			2.31
Total from investment operations		2.92			2.67			1.03			4.10			2.65
Distributions to shareholders from
Net investment income		(0.27	)		(0.21	)		(0.22	)		(0.38	)		(0.34	)
Net realized gains		(0.27	)		(1.57	)		(0.29	)		0.00			0.00
Total distributions to shareholders		(0.54	)		(1.78	)		(0.51	)		(0.38	)		(0.34	)
Net asset value, end of period		$31.99			$29.61			$28.72			$28.20			$24.48
Total return1		9.99	%		9.68	%		3.62	%		16.83	%		12.02	%
Ratios to average net assets (annualized)
Gross expenses		1.09	%		1.10	%		1.22	%		1.20	%		1.18	%
Net expenses		1.09	%		1.10	%		1.15	%		1.15	%		1.15	%
Net investment income		0.79	%		0.79	%		0.90	%		1.42	%		1.43	%
Supplemental data
Portfolio turnover rate		9	%		8	%		43	%		9	%		11	%
Net assets, end of period (000s omitted)		$822,769			$828,421			$736,276			$708,873			$657,702

¹  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Index Asset Allocation Fund 37

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$17.99			$17.47			$17.20			$14.94			$13.53
Net investment income		0.01			0.01	1		0.05			0.11			0.10
Net realized and unrealized gains (losses) on investments		1.62			1.48			0.45			2.27			1.41
Total from investment operations		1.63			1.49			0.50			2.38			1.51
Distributions to shareholders from
Net investment income		(0.01	)		(0.02	)		(0.05	)		(0.12	)		(0.10	)
Net realized gains		(0.16	)		(0.95	)		(0.18	)		0.00			0.00
Total distributions to shareholders		(0.17	)		(0.97	)		(0.23	)		(0.12	)		(0.10	)
Net asset value, end of period		$19.45			$17.99			$17.47			$17.20			$14.94
Total return2		9.14	%		8.86	%		2.86	%		15.96	%		11.20	%
Ratios to average net assets (annualized)
Gross expenses		1.84	%		1.85	%		1.98	%		1.95	%		1.93	%
Net expenses		1.84	%		1.85	%		1.90	%		1.90	%		1.90	%
Net investment income		0.04	%		0.03	%		0.10	%		0.67	%		0.68	%
Supplemental data
Portfolio turnover rate		9	%		8	%		43	%		9	%		11	%
Net assets, end of period (000s omitted)		$152,820			$136,881			$62,019			$24,093			$19,164

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

38 Wells Fargo Index Asset Allocation Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$29.63			$28.75			$28.21			$24.49			$22.18
Net investment income		0.30			0.28			0.35			0.45			0.40
Net realized and unrealized gains (losses) on investments		2.68			2.45			0.76			3.72			2.30
Total from investment operations		2.98			2.73			1.11			4.17			2.70
Distributions to shareholders from
Net investment income		(0.35	)		(0.28	)		(0.28	)		(0.45	)		(0.39	)
Net realized gains		(0.27	)		(1.57	)		(0.29	)		0.00			0.00
Total distributions to shareholders		(0.62	)		(1.85	)		(0.57	)		(0.45	)		(0.39	)
Net asset value, end of period		$31.99			$29.63			$28.75			$28.21			$24.49
Total return		10.20	%		9.91	%		3.89	%		17.12	%		12.31	%
Ratios to average net assets (annualized)
Gross expenses		0.99	%		1.02	%		1.09	%		1.04	%		1.02	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		0.96	%		0.98	%		1.12	%		1.68	%		1.69	%
Supplemental data
Portfolio turnover rate		9	%		8	%		43	%		9	%		11	%
Net assets, end of period (000s omitted)		$268,512			$206,908			$85,380			$59,783			$34,536

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

Financial highlights Wells Fargo Index Asset Allocation Fund 39

(For a share outstanding throughout the period)

INSTITUTIONAL CLASS	Period ended September 30, 20171
Net asset value, beginning of period		$29.27
Net investment income		0.35
Net realized and unrealized gains (losses) on investments		3.03
Total from investment operations		3.38
Distributions to shareholders from
Net investment income		(0.42	)
Net realized gains		(0.27	)
Total distributions to shareholders		(0.69	)
Net asset value, end of period		$31.96
Total return2		11.70	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%
Net expenses		0.74	%
Net investment income		1.08	%
Supplemental data
Portfolio turnover rate		9	%
Net assets, end of period (000s omitted)		$61,060

¹  For the period from October 31, 2016 (commencement of class operations) to September 30, 2017

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

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

40 Wells Fargo Index Asset Allocation Fund Notes to financial statements

1. ORGANIZATION

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

Notes to financial statements Wells Fargo Index Asset Allocation Fund 41

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 income from affiliates securities 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 to 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.

42 Wells Fargo Index Asset Allocation Fund Notes to financial statements

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

As of September 30, 2017, the aggregate cost of all investments for federal income tax purposes was $966,606,049 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	351,706,988
Gross unrealized losses		(11,144,919	)
Net unrealized gains	$	340,562,069

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$(356,900)	$356,900

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 Wells Fargo Index Asset Allocation Fund 43

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	62,058	$	0	$	62,058
Common stocks
Consumer discretionary		93,165,444		0		0		93,165,444
Consumer staples		64,850,895		0		0		64,850,895
Energy		48,086,268		0		0		48,086,268
Financials		115,214,408		0		0		115,214,408
Health care		114,195,851		0		0		114,195,851
Industrials		80,642,202		0		0		80,642,202
Information technology		182,737,845		0		0		182,737,845
Materials		23,473,865						23,473,865
Real estate		23,501,581		0		0		23,501,581
Telecommunication services		17,157,019		0		0		17,157,019
Utilities		24,545,020		0		0		24,545,020
Rights
Consumer staples		0		115		0		115
Non-agency mortgage-backed securities		0		13,411		0		13,411
U.S. Treasury securities		505,410,491		0		0		505,410,491
Short-term investments
Investment companies		7,658,402		0		0		7,658,402
U.S. Treasury securities		1,697,258		0		0		1,697,258
Investments measured at net asset value*								3,363,437
		1,302,336,549		75,584		0		1,305,775,570
Futures contracts		274,265		0		0		274,265
Total assets	$	1,302,610,814	$	75,584	$	0	$	1,306,049,835
Liabilities
Futures contracts	$	8,893	$	0	$	0	$	8,893
Total liabilities	$	8,893	$	0	$	0	$	8,893

* 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 $3,363,437 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At September 30, 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

44 Wells Fargo Index Asset Allocation Fund Notes to financial statements

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 year ended September 30, 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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $95,953 from the sale of Class A shares and $2,308 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A and Class B shares for the year ended September 30, 2017.

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

Notes to financial statements Wells Fargo Index Asset Allocation Fund 45

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended September 30, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$123,052,798	$26,559,415	$62,345,409	$43,686,661

6. DERIVATIVE TRANSACTIONS

During the year ended September 30, 2017, the Fund entered into futures contracts to manage the duration of the portfolio and to gain market exposure to certain asset classes by implementing tactical asset allocation shifts. The Fund had an average notional amount of $17,995,476 and $102,167,829 in long and short futures contracts respectively, during the year ended September 30, 2017.

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 September 30, 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 risk	Receivable for daily variation margin on open futures contracts	$	4,265	*	Payable for daily variation margin on open futures contracts	$	0	*
Interest rate risk	Receivable for daily variation margin on open futures contracts		270,000	*	Payable for daily variation margin on open futures contracts		8,893	*
		$	274,265			$	8,893

* Only the current day’s variation margin as of September 30, 2017 is reported separately on the Statement of Assets and Liabilities.

The effect of derivative instruments on the Statement of Operations for the year ended September 30, 2017 was as follows for the Fund:

	Amount of realized gains on derivatives		Change in unrealized gains (losses) on derivatives
Equity risk	$	2,029,822	$	3,437
Interest rate risk		5,253,859		1,020,859
	$	7,283,681	$	1,024,296

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 clearinghouse 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:

Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements	Collateral received		Net amount of assets
Goldman Sachs	$274,265	$(8,893)	$	0	$	265,372

46 Wells Fargo Index Asset Allocation Fund Notes to financial statements

Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements	Collateral pledged		Net amount of liabilities
Goldman Sachs	$8,893	$(8,893)	$	0	$	0

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended September 30, 2017 and September 30, 2016 were as follows:

	Year ended September 30
	2017		2016
Ordinary income	$	16,158,411	$	16,458,803
Long-term capital gain		5,038,835		40,146,003

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$2,614,298	$4,262,981	$340,562,069

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Index Asset Allocation Fund 47

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Index Asset Allocation Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Index Asset Allocation Fund as of September 30, 2017, the results of its operations for the year then ended, changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

48 Wells Fargo Index Asset Allocation Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 96.78% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 852 of the Internal Revenue Code, $5,038,835 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $15,868,441 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended September 30, 2017, $3,314,795 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended September 30, 2017, $5,627,533 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended September 30, 2017, 20.25% of the ordinary income distributed was derived from interest on U.S. government.

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 49

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 152 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 investment 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 led 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 Forté 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.	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

50 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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

Other information (unaudited) Wells Fargo Index Asset Allocation Fund 51

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds and Assistant Treasurer of 76 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.

52 Wells Fargo Index Asset Allocation Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Index Asset Allocation Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by

Other information (unaudited) Wells Fargo Index Asset Allocation Fund 53

Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Index Asset Allocation Blended Index, for the one- and five-year periods under review, but lower than its benchmark for the three- and ten-year periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and to report data with respect to a new share class launched in 2016. The Board also received an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than, in range of, or equal to the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of

54 Wells Fargo Index Asset Allocation Fund Other information (unaudited)

profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Index Asset Allocation Fund 55

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306431 11-17 A227/AR227 09-17

Annual Report

September 30, 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	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	19
Notes to financial statements	24
Report of independent registered public accounting firm	31
Other information	32
List of abbreviations	39

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo International Bond Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo International Bond Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo International Bond Fund Letter to shareholders (unaudited)

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it

can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 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 September 30, 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		(7.18	)		(1.90	)		2.63		(2.78	)		(0.99	)		3.10		1.08		1.03
Class C (ESIVX)	9-30-2003		(4.43	)		(1.73	)		2.34		(3.43	)		(1.73	)		2.34		1.83		1.78
Class R6 (ESIRX)	11-30-2012		–			–			–		(2.48	)		(0.60	)		3.45		0.70		0.65
Administrator Class (ESIDX)	7-30-2010		–			–			–		(2.59	)		(0.81	)		3.28		1.02		0.85
Institutional Class (ESICX)	12-15-1993		–			–			–		(2.48	)		(0.66	)		3.42		0.75		0.70
Bloomberg Barclays Global Aggregate ex-USD Index (unhedged)4	–		–			–			–		(2.42	)		(0.73	)		2.57		–		–

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 7.

Performance highlights (unaudited) Wells Fargo International Bond Fund 7

Growth of $10,000 investment as of September 30, 2017⁵

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) 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 chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Barclays Global Aggregate ex-USD Index (unhedged). The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

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

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

8 Wells Fargo International Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Bloomberg Barclays Global Aggregate ex-USD Bond Index (unhedged), in the 12-month period that ended September 30, 2017.

∎ Currency positioning was a drag on performance, largely due to an underweight to the euro. This was partly offset by exposure to the Danish krone. An allocation to the Mexican peso performed well.

∎ Country allocation added to Fund performance, with overweight positions in higher-yielding and emerging bond markets performing well. In particular, Brazil, Mexico, and South Africa outperformed.

Political uncertainty drove higher yields and volatility.

Markets in the last quarter of 2016 were significantly different than markets so far in 2017. The fourth quarter of 2016 was marked by widespread higher yields and volatility and a great deal of investor anxiety. The latter largely was driven by uncertainty over the direction of U.S. policy under the new administration and the number of high-profile eurozone elections scheduled for early 2017. The U.S. dollar traded strongly into year-end and has since been losing ground. Bond yields, particularly on longer-dated paper, also peaked around the start of the year and have subsequently been trending lower. Regarding economic growth, it remains positive but below potential in almost all core markets. Wage growth is particularly weak, which has played a role in keeping inflationary pressures muted.

Ten largest holdings (%) as of September 30, 20176
New Zealand, 4.50%, 4-15-2027	4.55
Poland, 1.50%, 4-25-2020	4.43
Mexico, 7.75%, 11-13-2042	4.31
United States, 1.50%, 8-15-2026	4.23
Malaysia, 3.96%, 9-15-2025	3.91
Singapore, 3.00%, 9-1-2024	2.86
Thailand, 3.85%, 12-12-2025	2.85
United States, 2.00%, 4-30-2024	2.59
Colombia, 7.50%, 8-26-2026	2.53
Italy, 2.20%, 6-1-2027	2.40

Returns (for Class A shares) for the Fund in the 12-month reporting period were negative (-2.78%) due to a torrid fourth quarter in 2016. The U.S. election created a great deal of uncertainty, and fixed-income and currency markets were highly erratic during that period. 2017 has been marked by significantly better performance across global bond markets, and year to date, the Fund (for Class A shares) has returned +10.90%. At the end of 2016, the Fund was underweight the low-yielding Japanese and core European bond markets in order to fund an overweight to a diversified set of higher-yielding names. Chief among these overweights were the bond markets of the United States and Australia, plus a number of emerging markets, including Brazil, Malaysia, Mexico, and South Africa. At the currency level, the Fund

was overweight the U.S. dollar and underweight the euro and the sterling. Emerging markets currency exposure was light, with several positions hedged.

There was no change to the Fund’s overarching theme over the past year; we are biased to underweight Japan and core Europe in favor of smaller and more dynamic markets. A position in high-quality Danish mortgages was established in the first quarter of 2017, and holdings in South Korea were reduced to zero as geopolitical risk ramped up. The overweight to the U.S. dollar was closed in the first quarter of 2017, and exposure to emerging markets currencies increased. We judged the multiyear U.S. dollar rally as mature and the U.S. dollar as overvalued. Toward the end of third quarter of 2017, the Fund took profits on some of these positions and select emerging markets currency exposure was rehedged (including the South African rand and the Brazilian real).

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo International Bond Fund 9

Portfolio allocation as of September 30, 2017⁷

Over the past 12 months, country positioning has been a strong value-add for the Fund. Smaller and higher-yielding markets have performed consistently, with positions in Brazil, Mexico, South Africa, and Hungary leading the way. Allocations to the Mexican peso and the Danish krone both added value. The portfolio has run with a below-index duration profile over the reporting period. This largely reflects the Fund’s underweight to Japanese government bonds. In favored markets, such as the U.S. and Mexico, Fund holdings have been in longer-dated paper to take advantage of the flattening of these yield curves.

The underweight to the Japanese bond market has been a modest drag over the 12-month period; the Bank of Japan’s efforts to anchor the yield curve led to the

country’s bonds outperforming in the fourth quarter of 2016. Looking only at 2017, the underweight to Japanese bonds has been a positive. The underweight to the euro also detracted from Fund performance, although exposure to the euro-linked Danish krone and Norwegian krone worked as partial offsets.

We expect smaller economies to continue to outperform.

Looking ahead, we see scope for a further unwind of the multiyear U.S. dollar rally. Non-U.S. investment continues to offer good opportunities. The higher real yields and lower debt levels offered by many smaller economies continue to suggest the outperformance of these markets versus the core developed markets. Within developed markets, we remain underweight Japan and core Europe, where nominal yields are negative and real yields even more so. While excessively loose monetary accommodation is starting to be pared back (or at least talked about), central banks still will broadly provide easy money. Positive but modest economic growth and mild inflationary pressures suggest that the backdrop to fixed-income investing remains fairly benign. Geopolitical risk has been rising and needs to be closely watched, but so far, this is having little impact on longer-term investor positioning.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	914.65	$	4.95		1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.89	$	5.23		1.03	%
Class C
Actual	$	1,000.00	$	911.63	$	8.54		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.14	$	9.00		1.78	%
Class R6
Actual	$	1,000.00	$	916.45	$	3.13		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.80	$	3.30		0.65	%
Administrator Class
Actual	$	1,000.00	$	914.88	$	4.09		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.79	$	4.32		0.85	%
Institutional Class
Actual	$	1,000.00	$	915.36	$	3.37		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.55	$	3.56		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—September 30, 2017 Wells Fargo International Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 4.82%
United States: 4.82%
AbbVie Incorporated (Health Care, Biotechnology)		3.20	%		5-14-2026	$	900,000	$	901,467
Amazon.com Incorporated (Consumer Discretionary, Internet & Direct Marketing Retail) 144A		3.15			8-22-2027		1,675,000		1,681,442
Anheuser-Busch InBev Finance Incorporated (Consumer Staples, Beverages)		3.65			2-1-2026		1,200,000		1,240,950
Apple Incorporated (Information Technology, Technology Hardware, Storage & Peripherals)		2.90			9-12-2027		2,500,000		2,478,035
AT&T Incorporated (Telecommunication Services, Diversified Telecommunication Services)		3.90			8-14-2027		2,750,000		2,753,105
Bat Capital Corporation (Consumer Staples, Tobacco) 144A		3.56			8-15-2027		2,100,000		2,106,390
Discovery Communications Company (Consumer Discretionary, Media)		3.95			3-20-2028		700,000		698,073
Ford Motor Credit Company LLC (Financials, Consumer Finance)		2.46			3-27-2020		1,500,000		1,500,936
Gilead Sciences Incorporated (Health Care, Biotechnology)		2.95			3-1-2027		2,000,000		1,980,573
Goldman Sachs Group Incorporated (Financials, Capital Markets)		3.75			2-25-2026		1,650,000		1,688,518
Johnson & Johnson (Health Care, Pharmaceuticals)		2.95			3-3-2027		2,000,000		2,028,022
JPMorgan Chase & Company (Financials, Banks)		3.30			4-1-2026		2,575,000		2,581,630
Lowe’s Companies Incorporated (Consumer Discretionary, Specialty Retail)		3.10			5-3-2027		700,000		695,739
Microsoft Corporation (Information Technology, Software)		2.40			8-8-2026		2,000,000		1,937,967
Oracle Corporation (Information Technology, Software)		2.65			7-15-2026		1,900,000		1,861,896
Qualcomm Incorporated (Information Technology, Semiconductors & Semiconductor Equipment)		3.25			5-20-2027		2,250,000		2,268,242
Total Corporate Bonds and Notes (Cost $28,488,307)									28,402,985
Foreign Corporate Bonds and Notes @: 13.29%
Australia: 0.19%
General Electric Capital Corporation (Financials, Diversified Financial Services, AUD)		6.00			3-15-2019		1,367,000		1,125,557
Brazil: 0.27%
BRF SA (Consumer Staples, Food Products, BRL) 144A		7.75			5-22-2018		5,137,000		1,601,688
Denmark: 5.96%
Nordea Kredit Realkredit (Financials, Thrifts & Mortgage Finance, DKK)		2.00			10-1-2047		8,087,099		1,283,211
Nordea Kredit Realkredit (Financials, Thrifts & Mortgage Finance, DKK)		2.50			10-1-2047		17,188,865		2,829,662
Nykredit Realkredit AS (Financials, Thrifts & Mortgage Finance, DKK)		2.00			10-1-2047		62,684,281		9,942,770
Nykredit Realkredit AS (Financials, Thrifts & Mortgage Finance, DKK)		2.50			10-1-2047		55,955,099		9,202,542
Realkredit Danmark AS (Financials, Thrifts & Mortgage Finance, DKK)		2.00			10-1-2047		56,837,797		9,015,420
Realkredit Danmark AS (Financials, Thrifts & Mortgage Finance, DKK)		2.50			10-1-2047		17,269,449		2,836,756
									35,110,361
France: 0.18%
Casino Guichard Perrachon SA (Consumer Staples, Food & Staples Retailing, EUR)		4.50			3-7-2024		800,000		1,056,311
Germany: 1.14%
HP Pelzer Holding GmbH (Consumer Discretionary, Auto Components, EUR) 144A		4.13			4-1-2024		550,000		670,067
KfW (Financials, Banks, AUD)		5.00			3-19-2024		6,900,000		6,037,265
									6,707,332
Ireland: 0.27%
GE Capital UK Funding Company (Financials, Capital Markets, GBP)		5.13			5-24-2023		1,000,000		1,591,685

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

12 Wells Fargo International Bond Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Mexico: 0.37%
America Movil SAB de CV (Telecommunication Services, Wireless Telecommunication Services, MXN)		7.13	%		12-9-2024		7,250,000	$	384,525
Nemak SAB de CV (Consumer Discretionary, Auto Components, EUR)		3.25			3-15-2024		225,000		273,618
Petroleos Mexicanos (Energy, Oil, Gas & Consumable Fuels, MXN) 144A		7.19			9-12-2024		6,532,000		327,855
Sigma Alimentos SA de CV (Consumer Discretionary, Food Products, EUR)		2.63			2-7-2024		950,000		1,190,010
									2,176,008
Netherlands: 0.13%
United Group BV (Telecommunication Services, EUR) 144A		4.50			7-1-2022		625,000		757,162
Norway: 0.98%
Kommunalbanken AS (Financials, Banks, AUD)		5.25			7-15-2024		6,500,000		5,755,395
Philippines: 1.00%
Asian Development Bank (Financials, Banks, AUD)		3.75			3-12-2025		7,231,000		5,904,644
United Kingdom: 1.73%
AA Bond Company Limited (Financials, Diversified Financial Services, GBP)		5.50			7-31-2043		600,000		828,120
Adient Global Holdings Company (Consumer Discretionary, Auto Components, EUR)		3.50			8-15-2024		725,000		886,869
CPUK Finance Limited (Consumer Discretionary, Consumer Finance, GBP)		4.25			2-28-2047		250,000		340,826
FirstGroup plc (Industrials, Road & Rail, GBP)		5.25			11-29-2022		1,300,000		2,002,311
Heathrow Funding Limited (Industrials, Transportation Infrastructure, GBP)		7.13			2-14-2024		1,000,000		1,697,999
Mclaren Finance plc (Financials, Consumer Finance, GBP)		5.00			8-1-2022		800,000		1,084,771
Ocado Group plc (Consumer Discretionary, Internet & Direct Marketing Retail, GBP)		4.00			6-15-2024		550,000		731,124
Tesco plc (Consumer Staples, Food & Staples Retailing, GBP)		6.13			2-24-2022		700,000		1,067,595
Twinkle Pizza plc (Consumer Discretionary, Hotels, Restaurants & Leisure, GBP)		6.63			8-1-2021		700,000		891,071
Vodafone Group plc (Telecommunication Services, Wireless Telecommunication Services, EUR)		2.20			8-25-2026		550,000		693,891
									10,224,577
United States: 1.07%
Albemarle Corporation (Materials, Chemicals, EUR)		1.88			12-8-2021		987,000		1,226,524
Cemex Finance LLC (Financials, Consumer Finance, EUR)		4.63			6-15-2024		900,000		1,154,500
Federal-Mogul LLC (Consumer Staples, Auto Components, EUR)		5.00			7-15-2024		1,125,000		1,313,150
Verizon Communications Incorporated (Telecommunication Services, Diversified Telecommunication Services, EUR)		3.25			2-17-2026		589,000		796,127
VF Corporation (Consumer Discretionary, Textiles, Apparel & Luxury Goods, EUR)		0.63			9-20-2023		1,525,000		1,793,537
									6,283,838
Total Foreign Corporate Bonds and Notes (Cost $76,445,654)									78,294,558
Foreign Government Bonds @: 66.04%
Australian Government Bond Series 138 (AUD)		3.25			4-21-2029		17,050,000		13,778,648
Australian Government Bond Series 144 (AUD)		3.75			4-21-2037		6,800,000		5,652,637
Australian Government Bond Series 148 (AUD)		2.75			11-21-2027		9,500,000		7,387,400
Brazil (BRL)		10.00			1-1-2019		17,855,000		5,820,899
Brazil (BRL)		10.00			1-1-2025		38,640,000		12,530,188
Canada (CAD)		0.50			3-1-2022		7,450,000		5,659,970
Canada (CAD)		1.00			6-1-2027		13,410,000		9,693,031
Canada 144A (CAD)		2.90			6-15-2024		11,000,000		9,142,056

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

Portfolio of investments—September 30, 2017 Wells Fargo International Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Foreign Government Bonds @ (continued)
Colombia (COP)		7.00	%		5-4-2022		12,100,000,000	$	4,267,657
Colombia (COP)		7.50			8-26-2026		41,100,000,000		14,884,391
France Government Bond (EUR)		0.25			11-25-2026		2,100,000		2,389,969
France Government Bond (EUR)		1.00			5-25-2027		900,000		1,088,222
Hungary (HUF)		1.75			10-26-2022		1,885,000,000		7,332,053
Hungary (HUF)		7.00			6-24-2022		1,665,000,000		8,003,137
India (INR)		7.80			4-11-2021		117,000,000		1,860,615
Indonesia (IDR)		8.38			3-15-2024		22,900,000,000		1,880,718
Indonesia (IDR)		8.38			9-15-2026		45,000,000,000		3,761,972
Italy Buoni Poliennali del Tesoro (EUR)		2.20			6-1-2027		11,850,000		14,124,959
Italy Buoni Poliennali del Tesoro 144A (EUR)		2.70			3-1-2047		5,100,000		5,388,298
Malaysia (MYR)		3.66			10-15-2020		7,650,000		1,824,791
Malaysia (MYR)		3.90			11-30-2026		21,550,000		5,074,434
Malaysia (MYR)		3.96			9-15-2025		97,325,000		23,011,041
Malaysia (MYR)		4.50			4-15-2030		8,950,000		2,150,893
Mexico (MXN)		5.75			3-5-2026		57,500,000		2,944,246
Mexico (MXN)		7.75			11-13-2042		437,000,000		25,422,073
Mexico (MXN)		8.00			11-7-2047		32,000,000		1,917,399
Mexico (MXN)		10.00			12-5-2024		10,850,000		705,488
New Zealand (NZD)		4.50			4-15-2027		33,000,000		26,812,485
Norway 144A¤ (NOK)		0.00			12-20-2017		70,040,000		8,786,109
Norway 144A (NOK)		1.50			2-19-2026		29,600,000		3,723,434
Norway 144A (NOK)		1.75			2-17-2027		106,975,000		13,621,533
Poland (PLN)		1.50			4-25-2020		96,500,000		26,096,520
Poland (PLN)		2.50			7-25-2027		14,550,000		3,698,706
Province of British Columbia (AUD)		4.25			11-27-2024		7,590,000		6,293,373
Province of Ontario (AUD)		6.25			9-29-2020		6,000,000		5,178,418
Queensland Treasury 144A (AUD)		3.25			7-21-2026		15,600,000		12,272,675
Republic of Peru (PEN)		5.70			8-12-2024		5,000,000		1,625,100
Republic of South Africa (ZAR)		7.75			2-28-2023		127,231,000		9,337,400
Republic of South Africa (ZAR)		8.75			2-28-2048		48,500,000		3,239,698
Republic of South Africa (ZAR)		10.50			12-21-2026		85,050,000		7,049,625
Romania (RON)		5.75			4-29-2020		22,600,000		6,318,136
Singapore (SGD)		2.88			9-1-2030		12,900,000		10,080,725
Singapore (SGD)		3.00			9-1-2024		21,440,000		16,857,061
State of New South Wales Australia (AUD)		5.00			8-20-2024		11,250,000		10,029,898
Thailand (THB)		3.85			12-12-2025		500,025,000		16,815,024
Turkey (TRY)		8.70			7-11-2018		3,500,000		960,426
Turkey (TRY)		9.40			7-8-2020		3,500,000		940,092
Turkey (TRY)		10.70			2-17-2021		4,000,000		1,111,439
Turkey (TRY)		11.00			2-24-2027		1,900,000		543,137
Total Foreign Government Bonds (Cost $375,044,352)									389,088,199
U.S. Treasury Securities: 9.76%
U.S. Treasury Bond		3.00			11-15-2045	$	7,850,000		8,073,234
U.S. Treasury Note		1.50			8-15-2026		26,600,000		24,896,977
U.S. Treasury Note		2.00			4-30-2024		15,400,000		15,275,477
U.S. Treasury Note		2.38			5-15-2027		9,250,000		9,284,326
Total U.S. Treasury Securities (Cost $57,948,693)									57,530,014

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

14 Wells Fargo International Bond Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Yankee Corporate Bonds and Notes: 2.87%
Cayman Islands: 0.11%
UPCB Finance IV Limited (Financials, Diversified Financial Services) 144A		5.38	%		1-15-2025	$	600,000	$	624,000
France: 0.33%
Danone SA (Consumer Staples, Food Products) 144A		2.95			11-2-2026		2,000,000		1,940,148
Ireland: 0.17%
Ardagh Packaging Finance plc (Financials, Diversified Financial Services) 144A		4.63			5-15-2023		1,000,000		1,027,200
Netherlands: 1.03%
Mubadala Development Company (Energy, Oil, Gas & Consumable Fuels)		5.50			4-20-2021		1,700,000		1,870,510
Myriad International Holdings BV (Consumer Discretionary, Media)		6.00			7-18-2020		1,950,000		2,103,972
Siemens Financieringsmat Company (Financials, Diversified Financial Services) 144A		2.35			10-15-2026		2,200,000		2,080,232
									6,054,714
Spain: 0.13%
Telefonica Emisiones SAU (Telecommunication Services, Diversified Telecommunication Services)		4.10			3-8-2027		750,000		775,634
Switzerland: 0.42%
Credit Suisse Group Funding Limited (Financials, Diversified Financial Services)		3.80			9-15-2022		2,400,000		2,490,513
United Kingdom: 0.68%
BP Capital Markets plc (Financials, Capital Markets)		3.22			4-14-2024		1,625,000		1,660,580
International Game Technology plc (Consumer Discretionary, Hotels, Restaurants & Leisure) 144A		6.25			2-15-2022		1,000,000		1,105,500
Jaguar Land Rover Automobiles plc (Consumer Discretionary, Automobiles) 144A		3.50			3-15-2020		1,200,000		1,213,500
									3,979,580
Total Yankee Corporate Bonds and Notes (Cost $16,442,981)									16,891,789
	Yield					Shares
Short-Term Investments: 1.93%
Investment Companies: 1.93%
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92					11,375,401		11,375,401
Total Short-Term Investments (Cost $11,375,401)									11,375,401

Total investments in securities (Cost $565,745,388)	98.71	%		581,582,946
Other assets and liabilities, net	1.29			7,604,236
Total net assets	100.00	%	$	589,187,182

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 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.

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

Portfolio of investments—September 30, 2017 Wells Fargo International Bond Fund 15

Forward Foreign Currency Contracts

Currency to be received	Currency to be delivered	Counterparty¤¤	Settlement date	Unrealized gains		Unrealized losses
27,141,720 USD	37,000,000 SGD	State Street Bank	10-16-2017	$	0	$	(139,788	)
5,150,000 PLN	1,399,312 USD	State Street Bank	10-18-2017		11,978		0
1,476,374 USD	19,550,000 ZAR	State Street Bank	10-18-2017		35,896		0
922,226 USD	3,000,000 BRL	State Street Bank	10-18-2017		0		(22,969	)
32,000,000 THB	949,611 USD	State Street Bank	10-19-2017		10,037		0
27,800,000 EUR	31,910,091 USD	State Street Bank	10-24-2017		983,562		0
1,078,872 USD	900,000 EUR	State Street Bank	10-24-2017		13,970		0
15,285,144 USD	200,000,000 ZAR	State Street Bank	11-6-2017		593,748		0
14,407,724 USD	19,750,000 NZD	State Street Bank	11-14-2017		154,268		0
7,150,000,000 JPY	65,881,616 USD	State Street Bank	11-15-2017		0		(2,218,491	)
1,650,000,000 JPY	15,247,748 USD	State Street Bank	11-15-2017		0		(556,255	)
2,960,000,000 JPY	27,251,945 USD	State Street Bank	11-15-2017		0		(896,296	)
13,931,445 USD	1,525,000,000 JPY	State Street Bank	11-15-2017		352,943		0
65,000,000 THB	1,966,307 USD	State Street Bank	11-16-2017		0		(16,417	)
17,607,276 USD	585,000,000 THB	State Street Bank	11-16-2017		58,273		0
57,331,918 USD	71,500,000 AUD	State Street Bank	11-20-2017		1,279,146		0
5,000,000 PLN	1,392,873 USD	State Street Bank	11-22-2017		0		(22,674	)
27,435,219 USD	100,000,000 PLN	State Street Bank	11-22-2017		31,242		0
13,581,684 USD	3,500,000,000 HUF	State Street Bank	11-22-2017		282,372		0
31,000,000 EUR	36,678,115 USD	State Street Bank	11-24-2017		61,755		0
17,279,675 USD	14,325,000 EUR	State Street Bank	11-24-2017		302,299		0
13,432,043 USD	43,000,000 BRL	State Street Bank	11-30-2017		0		(38,536	)
13,500,000 GBP	17,896,680 USD	State Street Bank	12-13-2017		232,066		0
1,088,650 USD	800,000 GBP	State Street Bank	12-13-2017		14,354		0
73,000,000 EUR	87,249,527 USD	State Street Bank	12-18-2017		0		(606,907	)
6,825,000,000 JPY	62,060,123 USD	State Street Bank	12-19-2017		0		(1,179,992	)
14,964,941 USD	1,650,000,000 JPY	State Street Bank	12-19-2017		246,668		0
				$	4,664,577	$	(5,698,325	)

¤¤ Transaction can only be closed with the originating counterparty.

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investment
Investment companies
Wells Fargo Government Money Market Fund Select Class		6,152,065		210,250,003		205,026,667		11,375,401	$	0	$	0	$	67,027	$	11,375,401		1.93	%
Affiliated securities no longer held at end of period										0		0		4,599		0		0.00
									$	0	$	0	$	71,626		11,375,401		1.93	%

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

16 Wells Fargo International Bond Fund Statement of assets and liabilities—September 30, 2017

Assets
Investments in unaffiliated securities, at value (cost $554,369,987)	$	570,207,545
Investments in affiliated securities, at value (cost $11,375,401)		11,375,401
Cash		13,194
Foreign currency, at value (cost $2,994,300)		2,929,230
Receivable for Fund shares sold		5,849,233
Receivable for interest		5,596,611
Unrealized gains on forward foreign currency contracts		4,664,577
Prepaid expenses and other assets		227,580
Total assets		600,863,371
Liabilities
Payable for Fund shares redeemed		5,611,571
Unrealized losses on forward foreign currency contracts		5,698,325
Management fee payable		307,467
Administration fees payable		45,941
Distribution fees payable		2,269
Trustees’ fees and expenses payable		4,653
Accrued expenses and other liabilities		5,963
Total liabilities		11,676,189
Total net assets	$	589,187,182
NET ASSETS CONSIST OF
Paid-in capital	$	609,829,453
Overdistributed net investment income		(27,790,252	)
Accumulated net realized losses on investments		(7,610,060	)
Net unrealized gains on investments		14,758,041
Total net assets	$	589,187,182
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	69,885,038
Shares outstanding – Class A1		6,777,721
Net asset value per share – Class A		$10.31
Maximum offering price per share – Class A2		$10.80
Net assets – Class C	$	3,493,346
Shares outstanding – Class C1		349,497
Net asset value per share – Class C		$10.00
Net assets – Class R6	$	30,876,018
Shares outstanding – Class R61		2,954,581
Net asset value per share – Class R6		$10.45
Net assets – Administrator Class	$	41,044,987
Shares outstanding – Administrator Class1		3,963,783
Net asset value per share – Administrator Class		$10.36
Net assets – Institutional Class	$	443,887,793
Shares outstanding – Institutional Class1		42,567,109
Net asset value per share – Institutional Class		$10.43

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended September 30, 2017 Wells Fargo International Bond Fund 17

Investment income
Interest (net of foreign interest withholding taxes of $161,282)	$	21,551,548
Income from affiliated securities		71,626
Total investment income		21,623,174
Expenses
Management fee		3,522,284
Administration fees
Class A		95,354
Class B		42	1
Class C		6,566
Class R6		3,288
Administrator Class		42,731
Institutional Class		378,779
Shareholder servicing fees
Class A		148,990
Class B		66	1
Class C		10,259
Administrator Class		106,572
Distribution fees
Class B		198	1
Class C		30,778
Custody and accounting fees		35,013
Professional fees		66,173
Registration fees		382
Shareholder report expenses		5,459
Trustees’ fees and expenses		25,692
Other fees and expenses		13,139
Total expenses		4,491,765
Less: Fee waivers and/or expense reimbursements		(51,736	)
Net expenses		4,440,029
Net investment income		17,183,145
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(9,854,446	)
Forward foreign currency contract transactions		(41,197,119	)
Net realized losses on investments		(51,051,565	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		11,094,128
Forward foreign currency contract transactions		1,754,245
Net change in unrealized gains (losses) on investments		12,848,373
Net realized and unrealized gains (losses) on investments		(38,203,192	)
Net decrease in net assets resulting from operations	$	(21,020,047	)

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.

18 Wells Fargo International Bond Fund Statement of changes in net assets

	Year ended September 30, 2017						Year ended September 30, 20161						Year ended October 31, 2015
Operations
Net investment income				$	17,183,145					$	22,566,834					$	39,938,003
Net realized losses on investments					(51,051,565	)					(40,208,825	)					(103,876,702	)
Net change in unrealized gains (losses) on investments					12,848,373						103,284,914						(56,804,032	)
Net increase (decrease) in net assets resulting from operations					(21,020,047	)					85,642,923						(120,742,731	)
Distributions to shareholders from
Net investment income
Class A					0						0						(423,572	)
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		4,929,121			48,322,926			1,868,356			19,443,142			4,376,785			44,490,295
Class B		0	2		0	2		0			0			2			19
Class C		13,816			133,569			23,455			236,461			29,172			297,439
Class R6		2,528,781			26,142,193			895,392			8,893,640			1,089,162			11,067,245
Administrator Class		2,445,180			24,089,253			4,435,890			44,153,170			7,459,622			76,084,803
Institutional Class		11,245,776			111,148,970			16,131,984			163,749,468			21,605,888			222,681,252
					209,836,911						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		(3,279,695	)		(32,478,821	)		(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		(195,882	)		(1,864,728	)		(222,003	)		(2,168,648	)		(395,376	)		(3,980,181	)
Class R6		(740,812	)		(7,302,744	)		(1,096,795	)		(11,289,059	)		(279,791	)		(2,789,621	)
Administrator Class		(3,255,355	)		(32,370,616	)		(27,263,086	)		(278,792,881	)		(13,481,584	)		(136,684,425	)
Institutional Class		(20,326,950	)		(201,196,349	)		(36,026,612	)		(359,679,067	)		(28,068,413	)		(285,845,548	)
					(275,366,729	)					(701,820,225	)					(487,265,110	)
Net decrease in net assets resulting from capital share transactions					(57,399,440	)					(460,041,804	)					(124,523,876	)
Total decrease in net assets					(87,436,474	)					(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				$	589,187,182					$	676,623,656					$	1,056,990,035
Overdistributed net investment income				$	(27,790,252	)				$	(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.

Financial highlights Wells Fargo International Bond Fund 19

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
CLASS A	2017			20161			2015			2014			2013			2012
Net asset value, beginning of period		$10.77			$9.74			$10.84			$11.32			$11.83			$11.85
Net investment income		0.26	2		0.24	2		0.31	2		0.37	2		0.36	2		0.33	2
Net realized and unrealized gains (losses) on investments		(0.57	)		0.85			(1.33	)		(0.34	)		(0.73	)		0.08
Total from investment operations		(0.31	)		1.09			(1.02	)		0.03			(0.37	)		0.41
Distributions to shareholders from
Net investment income		0.00			0.00			(0.05	)		(0.12	)		(0.02	)		(0.29	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.08	)		(0.51	)		(0.14	)		(0.43	)
Net asset value, end of period		$10.31			$10.77			$9.74			$10.84			$11.32			$11.83
Total return3		(2.78	)%		11.24	%		(9.50	)%		0.26	%		(3.18	)%		3.66	%
Ratios to average net assets (annualized)
Gross expenses		1.03	%		1.08	%		1.06	%		1.05	%		1.05	%		1.04	%
Net expenses		1.03	%		1.03	%		1.03	%		1.03	%		1.03	%		1.03	%
Net investment income		2.61	%		2.64	%		3.07	%		3.29	%		2.93	%		2.88	%
Supplemental data
Portfolio turnover rate		68	%		96	%		136	%		103	%		129	%		79	%
Net assets, end of period (000s omitted)		$69,885			$54,399			$79,727			$102,624			$113,846			$139,600

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.

20 Wells Fargo International Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
CLASS C	2017			20161			2015			2014			2013			2012
Net asset value, beginning of period		$10.52			$9.58			$10.70			$11.19			$11.76			$11.81
Net investment income		0.18	2		0.17	2		0.23	2		0.28	2		0.26	2		0.24	2
Net realized and unrealized gains (losses) on investments		(0.55	)		0.83			(1.32	)		(0.34	)		(0.71	)		0.08
Total from investment operations		(0.37	)		1.00			(1.09	)		(0.06	)		(0.45	)		0.32
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			(0.04	)		(0.00	)3		(0.23	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.03	)		(0.43	)		(0.12	)		(0.37	)
Net asset value, end of period		$10.00			$10.52			$9.58			$10.70			$11.19			$11.76
Total return4		(3.43	)%		10.49	%		(10.21	)%		(0.52	)%		(3.84	)%		2.86	%
Ratios to average net assets (annualized)
Gross expenses		1.78	%		1.83	%		1.81	%		1.80	%		1.80	%		1.79	%
Net expenses		1.78	%		1.78	%		1.78	%		1.78	%		1.78	%		1.78	%
Net investment income		1.88	%		1.86	%		2.33	%		2.54	%		2.15	%		2.12	%
Supplemental data
Portfolio turnover rate		68	%		96	%		136	%		103	%		129	%		79	%
Net assets, end of period (000s omitted)		$3,493			$5,520			$6,895			$11,597			$16,097			$23,448

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.

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 International Bond Fund 21

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
CLASS R6	2017			20161			2015			2014			20132
Net asset value, beginning of period		$10.88			$9.80			$10.88			$11.36			$11.80
Net investment income		0.30	3		0.28	3		0.35	3		0.42	3		0.39	3
Net realized and unrealized gains (losses) on investments		(0.58	)		0.86			(1.34	)		(0.35	)		(0.69	)
Total from investment operations		(0.28	)		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		$10.45			$10.88			$9.80			$10.88			$11.36
Total return4		(2.48	)%		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		3.01	%		3.00	%		3.46	%		3.64	%		3.70	%
Supplemental data
Portfolio turnover rate		68	%		96	%		136	%		103	%		129	%
Net assets, end of period (000s omitted)		$30,876			$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.

22 Wells Fargo International Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
ADMINISTRATOR CLASS	2017			20161			2015			2014			2013			2012
Net asset value, beginning of period		$10.80			$9.75			$10.84			$11.32			$11.81			$11.83
Net investment income		0.28	2		0.26	2		0.33	2		0.39	2		0.36	2		0.35	2
Net realized and unrealized gains (losses) on investments		(0.57	)		0.85			(1.34	)		(0.34	)		(0.71	)		0.08
Total from investment operations		(0.29	)		1.11			(1.01	)		0.05			(0.35	)		0.43
Distributions to shareholders from
Net investment income		0.00			0.00			(0.05	)		(0.14	)		(0.02	)		(0.31	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.08	)		(0.53	)		(0.14	)		(0.45	)
Net asset value, end of period		$10.36			$10.80			$9.75			$10.84			$11.32			$11.81
Total return3		(2.59	)%		11.44	%		(9.36	)%		0.43	%		(2.98	)%		3.89	%
Ratios to average net assets (annualized)
Gross expenses		0.97	%		1.02	%		0.99	%		0.99	%		0.99	%		0.97	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		2.80	%		2.85	%		3.26	%		3.47	%		3.15	%		3.04	%
Supplemental data
Portfolio turnover rate		68	%		96	%		136	%		103	%		129	%		79	%
Net assets, end of period (000s omitted)		$41,045			$50,825			$266,849			$359,383			$334,778			$294,330

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.

Financial highlights Wells Fargo International Bond Fund 23

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
INSTITUTIONAL CLASS	2017			20161			2015			2014			2013			2012
Net asset value, beginning of period		$10.86			$9.79			$10.87			$11.35			$11.82			$11.84
Net investment income		0.29	2		0.27	2		0.35	2		0.41	2		0.37			0.36
Net realized and unrealized gains (losses) on investments		(0.57	)		0.86			(1.34	)		(0.35	)		(0.70	)		0.09
Total from investment operations		(0.28	)		1.13			(0.99	)		0.06			(0.33	)		0.45
Distributions to shareholders from
Net investment income		0.00			0.00			(0.06	)		(0.15	)		(0.02	)		(0.33	)
Net realized gains		(0.15	)		(0.06	)		(0.03	)		(0.39	)		(0.12	)		(0.14	)
Total distributions to shareholders		(0.15	)		(0.06	)		(0.09	)		(0.54	)		(0.14	)		(0.47	)
Net asset value, end of period		$10.43			$10.86			$9.79			$10.87			$11.35			$11.82
Total return3		(2.48	)%		11.60	%		(9.20	)%		0.55	%		(2.78	)%		3.99	%
Ratios to average net assets (annualized)
Gross expenses		0.70	%		0.75	%		0.73	%		0.72	%		0.72	%		0.71	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.71	%
Net investment income		2.96	%		2.95	%		3.41	%		3.62	%		3.26	%		3.19	%
Supplemental data
Portfolio turnover rate		68	%		96	%		136	%		103	%		129	%		79	%
Net assets, end of period (000s omitted)		$443,888			$553,208			$689,964			$832,072			$1,115,163			$1,270,164

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.

24 Wells Fargo International Bond Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification 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 settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign

Notes to financial statements Wells Fargo International Bond Fund 25

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 income from affiliated securities 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.

26 Wells Fargo International Bond Fund Notes to financial statements

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 to 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 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, 2017, the aggregate cost of all investments for federal income tax purposes was $566,542,883 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	26,838,290
Gross unrealized losses		(12,831,962	)
Net unrealized gains	$	14,006,328

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to foreign currency transactions. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Overdistributed net investment income	Accumulated net realized losses on investments
$(44,590,254)	$44,590,254

As of September 30, 2017, the Fund had capital loss carryforwards which consist of $29,235 in short-term capital losses and $41,293 in long-term capital losses.

As of September 30, 2017, the Fund had current year deferred post-October capital losses and a qualified late-year ordinary loss which will both be recognized on the first day of the following fiscal year in the following amounts:

Deferred post-October capital losses		Late-year ordinary losses deferred
Short-term	Long-term
$(5,760,133)	$(1,243,623)	$(27,514,332)

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 Wells Fargo International Bond Fund 27

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 September 30, 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	$	28,402,985	$	0	$	28,402,985
Foreign corporate bonds and notes		0		78,294,558		0		78,294,558
Foreign government bonds		0		389,088,199		0		389,088,199
U.S. Treasury securities		57,530,014		0		0		57,530,014
Yankee corporate bonds and notes		0		16,891,789		0		16,891,789
Short-term investments
Investment companies		11,375,401		0		0		11,375,401
		68,905,415		512,677,531		0		581,582,946
Forward foreign currency contracts		0		4,664,577		0		4,664,577
Total assets	$	68,905,415	$	517,342,108	$	0	$	586,247,523
Liabilities
Forward foreign currency contracts	$	0	$	5,698,325	$	0	$	5,698,325
Total liabilities	$	0	$	5,698,325	$	0	$	5,698,325

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 September 30, 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

28 Wells Fargo International Bond Fund Notes to financial statements

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 year ended September 30, 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 is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

Administration fees

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

	Class-level administration fee
Class A, Class B, Class C		0.16	%
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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $870 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A, Class B, and Class C shares for the year ended September 30, 2017.

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

Notes to financial statements Wells Fargo International Bond Fund 29

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended September 30, 2017 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$41,664,547	$352,145,475	$42,835,475	$426,133,839

6. DERIVATIVE TRANSACTIONS

During the year ended September 30, 2017, the Fund entered into forward foreign currency contracts for economic hedging purposes. The Fund had average contract amounts of $364,449,444 and $253,679,671 in forward foreign currency contracts to buy and forward foreign currency contracts to sell, respectively, during the year ended September 30, 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 clearinghouse 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:

Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements	Collateral received		Net amount of assets
State Street Bank	$4,664,577*	$(4,664,577)	$	0	$	0

* Amount represents net unrealized gains.

Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements	Collateral pledged		Net amount of liabilities
State Street Bank	$5,698,325**	$(4,664,577)	$	0	$	1,033,748

** 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 $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

30 Wells Fargo International Bond Fund Notes to financial statements

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended September 30, 2017 and September 30, 2016 were as follows:

	Year ended September 30				Year ended October 31, 2015
	2017		20161
Ordinary income	$	758	$	0	$	10,043,689
Long-term capital gain		9,016,229		5,967,498		36

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.

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Unrealized gains	Late-year ordinary losses deferred	Post-October capital losses deferred	Capital loss carryforward
$13,960,546	$(27,514,332)	$(7,003,756)	$(70,528)

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo International Bond Fund 31

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo International Bond Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, for the period ended September 30, 2016, and for the year ended October 31, 2015, and the financial highlights for the year then ended, for the period ended September 30, 2016, and for each of the years or periods in the four-year period ended October 31, 2015. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo International Bond Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for the year then ended, for the period ended September 30, 2016, and for the year ended October 31, 2015, and the financial highlights for the year then ended, for the period ended September 30, 2016, and for each of the years or periods in the four-year period ended October 31, 2015, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

32 Wells Fargo International Bond Fund Other information (unaudited)

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $9,016,229 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

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 33

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 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 investment 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 led 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 Forté 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.	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

34 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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

Other information (unaudited) Wells Fargo International Bond Fund 35

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 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.

36 Wells Fargo International Bond Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo International Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with First International Advisors, LLC (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc.

Other information (unaudited) Wells Fargo International Bond Fund 37

(“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was lower than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Bloomberg Barclays Global Aggregate ex USD Index, for the ten-year period under review, but lower than its benchmark for the one-, three- and five-year periods under review.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

38 Wells Fargo International Bond Fund Other information (unaudited)

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo International Bond Fund 39

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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306432 11-17 A235/AR235 09-17

Annual Report

September 30, 2017

Wells Fargo Strategic Income Fund

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	22
Statement of operations	23
Statement of changes in net assets	24
Financial highlights	25
Notes to financial statements	29
Report of independent registered public accounting firm	38
Other information	39
List of abbreviations	46

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Strategic Income Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

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

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Strategic Income Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 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

Niklas Nordenfelt, CFA^®

Tony Norris

Alex Perrin

Thomas M. Price, CFA^®

Scott M. Smith, CFA^®

Noah Wise, CFA^®

Average annual total returns (%) as of September 30, 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		1.76		0.81		6.05		1.70		1.80		0.91
Class C (WSICX)	1-31-2013		4.20		0.93		5.20		0.93		2.55		1.66
Administrator Class (WSIDX)	1-31-2013		–		–		5.91		1.80		1.74		0.76
Institutional Class (WSINX)	1-31-2013		–		–		6.43		2.00		1.47		0.61
Bloomberg Barclays U.S. Universal Bond Index3	–		–		–		0.96		2.70		–		–
ICE BofAML 3-Month LIBOR Constant Maturity Index4	–		–		–		1.03		0.47		–		–

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 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 7.

Performance highlights (unaudited) Wells Fargo Strategic Income Fund 7

Growth of $10,000 investment as of September 30, 2017⁵

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 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 ICE BofAML 3-Month LIBOR Constant Maturity Index (formerly known as 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 chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Barclays U.S. Universal Bond Index and the ICE BofAML 3-Month LIBOR Constant Maturity Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.00%.

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

⁷  The Bloomberg Barclays U.S. Credit Index measures the investment-grade, U.S. dollar-denominated, fixed-rate, taxable corporate and government related bond markets. It is composed of the U.S. Corporate Index and a non-corporate component that includes foreign agencies, sovereigns, supranationals and local authorities. You cannot invest directly in an index.

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.

8 Wells Fargo Strategic Income Fund Performance highlights (unaudited)

MANAGERS’ DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmarks, the Bloomberg Barclays U.S. Universal Bond Index and the ICE BofAML 3-Month LIBOR Constant Maturity Index, for the 12-month period that ended September 30, 2017.

∎ The Fund’s holdings in high-yield, corporate, and emerging markets debt contributed to performance, as did exposures to foreign currencies.

∎ The Fund’s shorter duration posture compared with the Bloomberg Barclays U.S. Universal Bond Index also benefited performance, while the longer duration position relative to the ICE BofAML 3-Month LIBOR Constant Maturity Index detracted from performance.

Moderate economic growth persisted and policy normalization continued.

Over the past four quarters, U.S. gross domestic product (GDP) grew by 2.2% in real terms, which was very close to the post–financial crisis average. Personal consumption growth was a significant source of strength, rising 2.6% for the 12 months that ended June 30, 2017. Business investment was a net contributor to growth, although it failed to keep pace with the consumer sector. International trade was a net detractor from GDP growth, while inventories and government spending were largely neutral factors.

The labor market was generally healthy over the past 12 months. Nonfarm payrolls expanded by an average of 175,000 jobs per month over the period, while the unemployment rate declined to 4.4% from 4.9% a year earlier. Also encouraging was a 0.4% rise in the employment/population ratio since August 2016, reflecting both the fall in unemployment and a modest increase in the labor force participation rate. Wage gains of about 2.5% over the past 12 months were sufficient to support consumption growth without sparking fears of rising inflation. The Consumer Price Index rose 1.7% over the past year, held in check by relatively stable energy prices.

Ten largest holdings (%) as of September 30, 20176
U.S. Treasury Note, 1.25%, 8-31-2019	6.47
Avis Budget Rental Car Funding LLC Series 2017-1A Class C, 4.15%, 9-20-2023	1.33
Hertz Fleet Lease Funding LP Series 2014-1 Class C, 2.39%, 4-10-2028	1.26
Coinstar Funding LLC Series 2017-1A Class A2, 5.22%, 4-25-2047	1.09
Longtrain Leasing III LLC Series 2015-1A Class A2, 4.06%, 1-15-2045	1.07
ACAS CLO Limited Trust Series 2015-1A Class B, 3.40%, 4-18-2027	1.05
New Jersey EDA Motor Vehicle Surcharge Refunding Subordinated Series, 3.52%, 7-1-2020	1.04
Republic of Peru, 5.70%, 8-12-2024	1.03
Malaysia, 3.88%, 3-10-2022	1.03
Colombia, 7.00%, 9-11-2019	1.03

The U.S. Federal Reserve’s rate-setting committee, the Federal Open Market Committee (FOMC), raised the federal funds rate three times over the past 12 months by a total of 0.75%. The FOMC’s most recent move on June 14, 2017, was supported by a statement citing a labor market that had “continued to strengthen.” Economic activity was characterized as “rising moderately,” while an inflation rate somewhat below target was expected to “stabilize around the Committee’s 2% objective over the medium term.”

Rates moved higher and spreads narrowed.

In line with the FOMC’s policy moves, interest rates had an upward bias over the past 12 months, particularly in shorter-term maturity instruments. Yields in the one-month to one-year maturity range rose by a little more than 60 basis points (bps; 100 bps equal 1.00%), while intermediate- and long-term bond yields were about 50 bps higher. Credit spreads widened slightly prior to the

November 2016 election but narrowed thereafter, ending the period about 25 bps tighter than where they began, as measured by the Bloomberg Barclays U.S. Credit Index⁷.

The Fund remained overweight corporate securities but reduced high-yield holdings and increased investment-grade debt.

During the period, the Fund reduced its positions in U.S. and European high-yield corporate bonds while adding to investment-grade holdings. The decreased high-yield allocation followed strong returns for the sector and reflected the diminished relative value available in that space. The increased investment-grade holdings provided flexibility to increase risk when valuations improved while offering a more stable source of income as we wait for that to occur. The Fund also

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Strategic Income Fund 9

increased its exposure to emerging markets securities toward the end of the reporting period, due to improving macroeconomic factors, attractive currency valuations, and relatively favorable local interest rates. We expect the net impact of these changes should reduce total portfolio risk while maintaining attractive income and return potential.

Portfolio allocation as of September 30, 2017⁸

We continue to expect a gradual rise in short-term interest rates.

The Fund’s duration, which was shorter than the duration of the Bloomberg Barclays U.S. Universal Bond Index, helped results because longer-term yields increased after the U.S. presidential election that took place at the beginning of the period. The Fund’s duration was reduced following the significant decrease in Treasury rates that occurred later in the reporting period.

The relatively benign economic conditions described above may result in an eventual further increase in short-term interest rates. We believe the FOMC is likely to raise its target rate by 0.75% over the next 12 months, a result that is not reflected in the term structure of interest rates.

As a result, the Fund remains defensively positioned for a larger-than-anticipated increase in short-term Treasury yields. We believe pockets of credit-oriented fixed income and emerging markets are attractive, and we expect to maintain current exposures until fundamentals or valuations change.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,025.56	$	4.57		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.56	$	4.56		0.90	%
Class C
Actual	$	1,000.00	$	1,021.66	$	8.36		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.80	$	8.34		1.65	%
Administrator Class
Actual	$	1,000.00	$	1,023.38	$	3.80		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.31	$	3.80		0.75	%
Institutional Class
Actual	$	1,000.00	$	1,027.54	$	3.05		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.06	$	3.04		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—September 30, 2017 Wells Fargo Strategic Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 7.36%
AmeriCredit Automobile Receivables Trust Series 2015-4 Class D		3.72	%		12-8-2021	$	300,000	$	306,236
Ascentium Equipment Receivables LLC Series 2016-1A Class B 144A		2.85			7-10-2020		400,000		403,642
Avis Budget Rental Car Funding LLC Series 2012-3A Class B 144A		3.04			3-20-2019		250,000		250,682
Avis Budget Rental Car Funding LLC Series 2017-1A Class C 144A		4.15			9-20-2023		650,000		632,580
Coinstar Funding LLC Series 2017-1A Class A2 144A		5.22			4-25-2047		498,750		518,298
Conn Funding II LP Series 2017-A Class A 144A		3.20			7-15-2019		123,289		123,359
Hertz Fleet Lease Funding LP Series 2014-1 Class C (1 Month LIBOR +1.15%) 144A±		2.39			4-10-2028		600,000		599,821
SoFi Consumer Loan Program Trust Series 2016-3A 144A		3.05			12-26-2025		381,365		385,030
SoFi Professional Loan Program LLC Series 2016-A Class A2 144A		2.76			12-26-2036		289,524		292,156
Total Asset-Backed Securities (Cost $3,500,644)									3,511,804
Corporate Bonds and Notes: 24.28%
Consumer Discretionary: 6.34%
Auto Components: 0.11%
Allison Transmission Incorporated 144A		5.00			10-1-2024		50,000		51,893
Automobiles: 0.72%
Ford Motor Company		7.45			7-16-2031		265,000		343,030
Distributors: 0.22%
LKQ Corporation		4.75			5-15-2023		100,000		103,625
Media: 3.72%
Altice US Finance I Corporation 144A		5.50			5-15-2026		125,000		131,875
CCO Holdings LLC 144A		5.13			5-1-2023		35,000		36,444
CCO Holdings LLC		5.25			9-30-2022		50,000		51,500
CCO Holdings LLC 144A		5.38			5-1-2025		150,000		155,456
Charter Communications Operating LLC		4.91			7-23-2025		200,000		213,731
Discovery Communications LLC		3.80			3-13-2024		265,000		273,029
Gray Television Incorporated 144A		5.13			10-15-2024		50,000		50,250
Gray Television Incorporated 144A		5.88			7-15-2026		50,000		51,500
Interpublic Group Company		4.20			4-15-2024		250,000		262,535
National CineMedia LLC		6.00			4-15-2022		75,000		76,500
Nexstar Broadcasting Group Incorporated 144A		6.13			2-15-2022		50,000		52,125
Nielsen Finance LLC 144A		5.00			4-15-2022		75,000		77,719
Salem Media Group Incorporated 144A		6.75			6-1-2024		75,000		78,000
Time Warner Cable Incorporated		3.80			2-15-2027		265,000		265,031
									1,775,695
Multiline Retail: 0.94%
Macy’s Retail Holdings Incorporated		3.88			1-15-2022		250,000		250,839
Nordstrom Incorporated		5.00			1-15-2044		200,000		196,423
									447,262
Specialty Retail: 0.53%
Asbury Automotive Group Incorporated		6.00			12-15-2024		75,000		78,375
Group 1 Automotive Incorporated		5.00			6-1-2022		25,000		25,906
Lithia Motors Incorporated 144A		5.25			8-1-2025		25,000		26,031
Penske Auto Group Incorporated		5.75			10-1-2022		50,000		51,630
Sonic Automotive Incorporated		5.00			5-15-2023		75,000		73,313
									255,255

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

12 Wells Fargo Strategic Income Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Textiles, Apparel & Luxury Goods: 0.10%
Wolverine World Wide Company 144A		5.00	%		9-1-2026	$	50,000	$	50,015
Consumer Staples: 0.42%
Tobacco: 0.42%
Bat Capital Corporation 144A		3.56			8-15-2027		200,000		200,609
Energy: 3.57%
Energy Equipment & Services: 0.98%
Era Group Incorporated		7.75			12-15-2022		40,000		36,400
Hilcorp Energy Company 144A		5.75			10-1-2025		75,000		75,844
Hornbeck Offshore Services Incorporated		1.50			9-1-2019		25,000		19,500
NGPL PipeCo LLC 144A		7.77			12-15-2037		175,000		217,875
PHI Incorporated		5.25			3-15-2019		120,000		116,400
									466,019
Oil, Gas & Consumable Fuels: 2.59%
Exterran Partners LP		6.00			4-1-2021		50,000		49,000
Murphy Oil Corporation		5.75			8-15-2025		5,000		5,151
Phillips 66		4.88			11-15-2044		250,000		272,308
Rockies Express Pipeline LLC 144A		6.88			4-15-2040		200,000		222,000
Rose Rock Midstream LP		5.63			11-15-2023		100,000		97,250
Sabine Pass Liquefaction LLC		5.63			2-1-2021		100,000		108,362
Sunoco Logistics Partner LP		5.40			10-1-2047		250,000		254,461
Tallgrass Energy Partners LP 144A		5.50			9-15-2024		175,000		179,813
Ultra Resources Incorporated 144A		6.88			4-15-2022		25,000		25,500
Ultra Resources Incorporated 144A		7.13			4-15-2025		25,000		25,250
									1,239,095
Financials: 6.32%
Banks: 1.59%
Bank of America Corporation (3 Month LIBOR +4.55%) ±		6.30			12-29-2049		265,000		299,450
JPMorgan Chase & Company (3 Month LIBOR +3.30%) ±		6.00			12-31-2049		180,000		195,750
PNC Financial Services (3 Month LIBOR +3.30%) ±		5.00			12-29-2049		250,000		261,875
									757,075
Capital Markets: 1.59%
Blackstone Holdings Finance Company LLC 144A%%		3.15			10-2-2027		250,000		246,389
Goldman Sachs Group Incorporated		4.25			10-21-2025		265,000		276,173
Morgan Stanley		3.63			1-20-2027		235,000		238,270
									760,832
Consumer Finance: 0.82%
Arch Capital Finance LLC		4.01			12-15-2026		125,000		129,576
FirstCash Incorporated 144A		5.38			6-1-2024		25,000		26,063
General Motors Financial Company Incorporated		3.20			7-6-2021		185,000		188,208
Springleaf Finance Corporation		8.25			10-1-2023		40,000		45,600
									389,447
Diversified Financial Services: 0.81%
Brookfield Finance LLC		4.00			4-1-2024		200,000		207,075
LPL Holdings Incorporated 144A		5.75			9-15-2025		175,000		181,563
									388,638

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

Portfolio of investments—September 30, 2017 Wells Fargo Strategic Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 1.51%
Guardian Life Insurance Company 144A		4.85	%		1-24-2077	$	200,000	$	213,609
Hub Holdings LLC (PIK at 8.88%) 144A¥		8.13			7-15-2019		30,000		30,075
Hub International Limited 144A		7.88			10-1-2021		100,000		104,125
Lincoln National Corporation		7.00			6-15-2040		105,000		140,251
MetLife Incorporated		6.40			12-15-2066		200,000		230,500
									718,560
Health Care: 0.68%
Health Care Providers & Services: 0.68%
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		50,000		49,313
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		25,000		25,625
Highmark Incorporated 144A		6.13			5-15-2041		100,000		107,259
MPH Acquisition Holdings LLC 144A		7.13			6-1-2024		25,000		26,875
Vizient Incorporated 144A		10.38			3-1-2024		100,000		115,000
									324,072
Industrials: 0.90%
Airlines: 0.21%
American Airlines Incorporated		4.38			4-1-2024		97,389		100,262
Commercial Services & Supplies: 0.69%
Advanced Disposal Services Incorporated 144A		5.63			11-15-2024		100,000		104,500
Covanta Holding Corporation		5.88			3-1-2024		120,000		119,100
KAR Auction Services Incorporated 144A		5.13			6-1-2025		100,000		104,000
									327,600
Information Technology: 1.77%
Electronic Equipment, Instruments & Components: 0.57%
Arrow Electronics Incorporated		3.50			4-1-2022		165,000		168,171
Zebra Technologies Corporation		7.25			10-15-2022		97,000		102,690
									270,861
Internet Software & Services: 0.17%
Zayo Group LLC		6.38			5-15-2025		75,000		80,822
IT Services: 0.49%
Cardtronics Incorporated		5.13			8-1-2022		150,000		154,875
Gartner Incorporated 144A		5.13			4-1-2025		75,000		79,125
									234,000
Technology Hardware, Storage & Peripherals: 0.54%
Diamond 1 Finance Corporation 144A		8.35			7-15-2046		75,000		95,810
NCR Corporation		5.88			12-15-2021		160,000		165,320
									261,130
Materials: 0.12%
Containers & Packaging: 0.12%
Owens-Illinois Incorporated 144A		6.38			8-15-2025		50,000		56,563

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

14 Wells Fargo Strategic Income Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Real Estate: 0.22%
Equity REITs: 0.22%
The Geo Group Incorporated		5.88	%		10-15-2024	$	100,000	$	104,250
Telecommunication Services: 1.99%
Diversified Telecommunication Services: 0.97%
AT&T Incorporated		5.25			3-1-2037		135,000		141,512
GCI Incorporated		6.75			6-1-2021		90,000		92,250
Verizon Communications		5.50			3-16-2047		205,000		227,456
									461,218
Wireless Telecommunication Services: 1.02%
CC Holdings GS V LLC		3.85			4-15-2023		265,000		277,237
Sprint Communications Incorporated 144A		7.00			3-1-2020		150,000		163,875
T-Mobile USA Incorporated		6.38		��	3-1-2025		20,000		21,534
T-Mobile USA Incorporated		6.84			4-28-2023		25,000		26,406
									489,052
Utilities: 1.95%
Electric Utilities: 0.82%
Oglethorpe Power Corporation		4.25			4-1-2046		400,000		390,589
Independent Power & Renewable Electricity Producers: 0.54%
NSG Holdings LLC 144A		7.75			12-15-2025		92,803		100,459
Pattern Energy Group Incorporated 144A		5.88			2-1-2024		150,000		158,250
									258,709
Multi-Utilities: 0.59%
Puget Energy Incorporated		5.63			7-15-2022		250,000		278,882
Total Corporate Bonds and Notes (Cost $11,202,003)									11,585,060
						Shares
Exchange-Traded Funds: 0.53%
iShares iBoxx $ High Yield Corporate Bond ETF							2,836		251,723
Total Exchange-Traded Funds (Cost $249,988)									251,723
						Principal
Foreign Corporate Bonds and Notes @: 3.77%
Consumer Staples: 0.75%
Food Products: 0.75%
Kraft Heinz Foods Company (EUR)		2.25			5-25-2028		300,000		360,109
Energy: 0.27%
Oil, Gas & Consumable Fuels: 0.27%
TOTAL SA (5 Year Euro Swap Rate +3.78%) ± (EUR)		3.88			12-29-2049		100,000		129,433

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

Portfolio of investments—September 30, 2017 Wells Fargo Strategic Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Financials: 2.25%
Banks: 1.24%
ATF Netherlands BV (EUR)		1.50	%		7-15-2024		100,000	$	117,161
International Finance Corporation (INR)		7.80			6-3-2019		29,900,000		472,353
									589,514
Diversified Financial Services: 0.52%
Ie2 Holdco SA (EUR)		2.88			6-1-2026		100,000		127,001
LYB International Finance Company (EUR)		1.88			3-2-2022		100,000		123,293
									250,294
Insurance: 0.49%
XLIT Limited (3 Month EURIBOR +2.90%) ± (EUR)		3.25			6-29-2047		200,000		231,948
Health Care: 0.25%
Life Sciences Tools & Services: 0.25%
Thermo Fisher Scientific (EUR)		1.40			1-23-2026		100,000		118,333
Telecommunication Services: 0.25%
Diversified Telecommunication Services: 0.25%
Cellnex Telecom SA (EUR)		2.38			1-16-2024		100,000		121,806
Total Foreign Corporate Bonds and Notes (Cost $1,757,276)									1,801,437
Foreign Government Bonds @: 8.12%
Brazil (BRL)		10.00			1-1-2021		640,000		214,631
Brazil (BRL)		10.00			1-1-2027		865,000		278,836
Colombia (COP)		7.00			9-11-2019		1,400,000,000		491,258
Indonesia (IDR)		7.88			4-15-2019		6,175,000,000		474,048
Malaysia (MYR)		3.88			3-10-2022		2,055,000		492,353
Mexico (MXN)		6.50			6-9-2022		8,760,000		476,898
Poland (PLN)		2.50			7-25-2027		1,905,000		484,264
Republic of Peru (PEN)		5.70			8-12-2024		1,515,000		492,405
Republic of South Africa (ZAR)		6.75			3-31-2021		6,500,000		469,205
Total Foreign Government Bonds (Cost $3,904,649)									3,873,898
Loans: 9.71%
Consumer Discretionary: 2.47%
Auto Components: 0.18%
Allison Transmission Incorporated (1 Month LIBOR +2.00%) ±		3.24			9-23-2022	$	84,185		84,437
Distributors: 0.64%
Spin Holdco Incorporated (2 Month LIBOR +3.75%) ±		5.01			11-14-2022		306,364		307,666
Hotels, Restaurants & Leisure: 0.87%
Belmond Interfin Limited (1 Month LIBOR +2.75%) ±		3.99			7-3-2024		99,750		99,813
CCM Merger Incorporated (1 Month LIBOR +2.75%) ±		3.99			8-8-2021		216,767		217,797
La Quinta Intermediate Holdings LLC (3 Month LIBOR +2.75%) ±		4.05			4-14-2021		98,737		98,984
									416,594
Household Products: 0.16%
Anchor Glass Container Corporation (1 Month LIBOR +2.75%) ±		4.01			12-7-2023		74,438		74,690

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

16 Wells Fargo Strategic Income Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Media: 0.62%
Altice US Finance I Corporation (1 Month LIBOR +2.25%) ±		3.49	%		7-28-2025	$	148,876	$	148,094
Learfield Communications Incorporated (1 Month LIBOR +3.25%) ±		4.49			12-1-2023		148,875		149,619
									297,713
Energy: 0.58%
Energy Equipment & Services: 0.22%
Panda Hummel Station (1 Month LIBOR +6.00%) ±		7.24			10-27-2022		112,613		103,041
Oil, Gas & Consumable Fuels: 0.36%
Ultra Resources Incorporated (3 Month LIBOR +3.00%) ±		4.31			4-12-2024		50,000		49,875
Veresen Midstream LP (1 Month LIBOR +3.50%) ±		4.73			3-31-2022		123,734		124,662
									174,537
Financials: 0.70%
Diversified Financial Services: 0.28%
LPL Holdings Incorporated (3 Month LIBOR +2.25%) ±		3.65			9-23-2024		134,638		134,301
Insurance: 0.42%
Alliant Holdings I LLC (3 Month LIBOR +3.25%) ±		4.56			8-12-2022		198,480		199,121
Health Care: 1.56%
Health Care Equipment & Supplies: 0.52%
Kinetic Concepts Incorporated (3 Month LIBOR +3.25%) ±		4.58			2-2-2024		249,375		248,363
Health Care Providers & Services: 0.31%
Community Health Systems Incorporated (3 Month LIBOR +3.00%) ±		4.32			1-27-2021		49,038		48,684
TeamHealth Incorporated (1 Month LIBOR +2.75%) ±		3.99			2-6-2024		99,500		97,573
									146,257
Health Care Technology: 0.52%
Change Healthcare Holdings Incorporated (1 Month LIBOR +2.75%) ±		3.99			3-1-2024		248,750		249,310
Pharmaceuticals: 0.21%
Valeant Pharmaceuticals International Incorporated (1 Month LIBOR +4.75%) ±		5.99			4-1-2022		99,481		101,231
Industrials: 0.62%
Aerospace & Defense: 0.21%
TransDigm Incorporated (3 Month LIBOR +3.00%) ±		4.33			6-4-2021		98,725		98,934
Commercial Services & Supplies: 0.39%
KAR Auction Services Incorporated (3 Month LIBOR +2.25%) ±		3.63			3-11-2021		88,070		88,427
Sedgwick Claims Management Services Incorporated (1 Month LIBOR +2.75%) ±		3.99			3-1-2021		98,721		98,820
									187,247
Transportation Infrastructure: 0.02%
OSG Bulk Ships Incorporated (3 Month LIBOR +4.25%) ±		5.57			8-5-2019		11,865		11,272
Information Technology: 1.72%
Electronic Equipment, Instruments & Components: 0.84%
Dell Incorporated (1 Month LIBOR +2.50%) ±		3.74			9-7-2023		398,000		399,242

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

Portfolio of investments—September 30, 2017 Wells Fargo Strategic Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Internet Software & Services: 0.21%
Applied Systems Incorporated (1 Month LIBOR +3.25%) ±<		0.00	%		9-19-2024	$	100,000	$	100,969
IT Services: 0.67%
First Data Corporation (1 Month LIBOR +2.25%) ±		3.49			7-8-2022		320,667		321,113
Materials: 0.49%
Containers & Packaging: 0.49%
Berry Plastics Corporation (1 Month LIBOR +2.25%) ±		3.49			10-1-2022		82,454		82,660
Reynolds Group Holdings Incorporated (1 Month LIBOR +3.00%) ±		4.24			2-5-2023		148,503		149,037
									231,697
Real Estate: 0.58%
Equity REITs: 0.42%
The Geo Group Incorporated (1 Month LIBOR +2.25%) ±		3.49			3-22-2024		199,000		199,165
Real Estate Management & Development: 0.16%
Capital Automotive LP (1 Month LIBOR +3.00%) ±		4.24			3-24-2024		75,553		75,931
Telecommunication Services: 0.99%
Diversified Telecommunication Services: 0.71%
Intelsat Jackson Holdings SA (3 Month LIBOR +2.75%) ±		4.07			6-30-2019		240,332		239,455
Level 3 Financing Incorporated (1 Month LIBOR +2.25%) ±		3.49			2-22-2024		101,410		101,331
									340,786
Wireless Telecommunication Services: 0.28%
Syniverse Holdings Incorporated (3 Month LIBOR +3.00%) ±		4.33			4-23-2019		136,570		131,961
Total Loans (Cost $4,650,462)									4,635,578
Municipal Obligations: 3.57%
Illinois: 1.16%
Chicago IL Refunding Bonds Taxable Project Series E (GO Revenue)		6.05			1-1-2029		200,000		207,200
Chicago IL Transit Authority Taxable Pension Funding Series A (Tax Revenue)		6.90			12-1-2040		100,000		130,683
Illinois Taxable Pension (GO Revenue)		5.10			6-1-2033		200,000		202,144
Illinois Metropolitan Pier & Exposition Authority CAB McCormick Place Expansion Project Series 2012-B (Tax Revenue) ¤		0.00			12-15-2051		85,000		11,890
									551,917
Maryland: 0.21%
Maryland Health & HEFAR Green Street Academy Series B (Education Revenue) 144A		6.75			7-1-2023		100,000		99,657
Michigan: 0.07%
Wayne County MI Series 2016 (GO Revenue)		4.25			12-1-2018		33,000		33,244
New Jersey: 1.04%
New Jersey EDA Motor Vehicle Surcharge Refunding Subordinated Series B (Tax Revenue)		3.52			7-1-2020		500,000		498,485
New York: 0.21%
Oyster Bay NY (GO Revenue)		3.25			2-1-2018		100,000		99,966

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

18 Wells Fargo Strategic Income Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Pennsylvania: 0.38%
Philadelphia PA IDA Pension Funding Series B (Miscellaneous Revenue, Ambac Insured) ¤		0.00	%		4-15-2021	$	95,000	$	84,061
Quakertown PA General Authority U.S. Department of Agriculture Loan Anticipation Notes Series 2017-B (Health Revenue)		3.80			7-1-2021		100,000		100,065
									184,126
Texas: 0.50%
North Texas Tollway Authority Build America Bonds Subordinate Lien Series B-2 (Transportation Revenue)		8.91			2-1-2030		210,000		238,295
Total Municipal Obligations (Cost $1,697,950)									1,705,690
Non-Agency Mortgage-Backed Securities: 9.51%
321 Henderson Receivables LLC Series 2015-2A Class A 144A		3.87			3-15-2058		429,796		442,710
ACAS CLO Limited Trust Series 2015-1A Class B (3 Month LIBOR +2.10%) 144A±		3.40			4-18-2027		500,000		499,994
ALM Loan Funding Series 2015-16A Class A2R (3 Month LIBOR +1.60%) 144A±		2.90			7-15-2027		410,000		411,804
BB-UBS Trust Series 2012-TFT Class C 144A±±		3.58			6-5-2030		150,000		145,879
BCC Funding Corporation Series 2016-1 Class B 144A		2.73			4-20-2022		400,000		396,776
Chicago Skyscraper Trust Series 2017-SKY Class C (1 Month LIBOR +1.25%) 144A±		2.48			2-15-2030		436,000		436,271
Citi Held For Asset Issuance Trust Series 2015-PM3 Class B 144A		4.31			5-16-2022		327,366		329,726
FREMF Mortgage Trust Series 2017-K724 Class B 144A±±		3.60			11-25-2023		400,000		397,531
GS Mortgage Securities Trust Series 2014-GC24 Class D 144A±±		4.66			9-10-2047		325,000		263,690
JPMBB Commercial Mortgage Securities Trust Series 2014-C19 Class D 144A±±		4.82			4-15-2047		493,000		439,306
Longtrain Leasing III LLC Series 2015-1A Class A2 144A		4.06			1-15-2045		500,000		510,087
Textainer Marine Containers Limited Series 2017-1A Class B 144A		4.85			5-20-2042		163,387		165,131
Textainer Marine Containers Limited Series 2017-2A Class B 144A		4.75			6-20-2042		98,070		98,688
Total Non-Agency Mortgage-Backed Securities (Cost $4,520,742)									4,537,593
				Expiration date		Shares
Rights: 0.01%
Utilities: 0.01%
Independent Power & Renewable Electricity Producers: 0.01%
Vistra Energy Corporation †					12-31-2046		6,516		5,539
Total Rights (Cost $7,168)									5,539
				Maturity date		Principal
U.S. Treasury Securities: 6.73%
U.S. Treasury Note		1.25			8-31-2019	$	3,100,000		3,086,438
U.S. Treasury Note		1.63			2-15-2026		130,000		123,536
Total U.S. Treasury Securities (Cost $3,222,066)									3,209,974
Yankee Corporate Bonds and Notes: 7.61%
Energy: 1.13%
Oil, Gas & Consumable Fuels: 1.13%
Comision Federal de Electricidad 144A		4.75			2-23-2027		250,000		263,125
Teekay Corporation		8.50			1-15-2020		75,000		76,125
Woodside Finance Limited 144A		3.70			3-15-2028		200,000		198,462
									537,712

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

Portfolio of investments—September 30, 2017 Wells Fargo Strategic Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Financials: 5.18%
Banks: 3.60%
ABN AMRO Bank NV 144A		4.75	%		7-28-2025	$	200,000	$	212,338
Banistmo SA 144A		3.65			9-19-2022		250,000		249,625
BNP Paribas 144A		3.80			1-10-2024		200,000		207,831
BPCE SA 144A		5.15			7-21-2024		305,000		328,692
Credit Agricole SA (5 Year USD Swap Rate +6.19%) 144A±		8.13			12-29-2049		265,000		313,694
Intesa Sanpaolo SpA 144A		5.71			1-15-2026		135,000		142,222
UBS Group Funding Limited 144A		4.13			9-24-2025		250,000		262,881
									1,717,283
Capital Markets: 0.56%
Credit Suisse Group AG 144A		3.57			1-9-2023		260,000		266,184
Insurance: 1.02%
Qatar Reinsurance Company Limited (5 Year USD Swap Rate +2.79%) ±		4.95			12-31-2099		200,000		199,000
Validus Holdings Limited		8.88			1-26-2040		200,000		289,195
									488,195
Health Care: 0.68%
Pharmaceuticals: 0.68%
Teva Pharmaceutical Finance BV		2.20			7-21-2021		265,000		254,851
Valeant Pharmaceuticals International Incorporated 144A		5.50			3-1-2023		25,000		21,938
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		25,000		21,938
Valeant Pharmaceuticals International Incorporated 144A		7.00			3-15-2024		25,000		26,625
									325,352
Industrials: 0.44%
Commercial Services & Supplies: 0.22%
GFL Environmental Incorporated 144A		5.63			5-1-2022		25,000		26,000
Ritchie Brothers Auctioneers Incorporated 144A		5.38			1-15-2025		75,000		79,313
									105,313
Professional Services: 0.22%
IHS Markit Limited 144A		4.75			2-15-2025		100,000		107,000
Telecommunication Services: 0.18%
Diversified Telecommunication Services: 0.18%
Intelsat Jackson Holdings SA		5.50			8-1-2023		100,000		84,750
Total Yankee Corporate Bonds and Notes (Cost $3,501,300)									3,631,789
Yankee Government Bonds: 7.58%
Banque Centrale de Tunisie SA		5.75			1-30-2025		200,000		194,545
Bermuda 144A		3.72			1-25-2027		250,000		253,125
Federal Democratic Republic of Ethiopia		6.63			12-11-2024		200,000		205,478
Province of Cordoba 144A		7.13			8-1-2027		400,000		418,976
Province of Santa Fe		7.00			3-23-2023		200,000		212,814

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

20 Wells Fargo Strategic Income Fund Portfolio of investments—September 30, 2017

Security name	Interest rate			Maturity date		Principal		Value
Yankee Government Bonds (continued)
Republic of Ghana		9.25	%		9-15-2022	$	400,000	$	444,520
Republic of Guatemala		4.38			6-5-2027		250,000		247,500
Republic of Honduras		6.25			1-19-2027		200,000		215,192
Republic of Hungary		5.38			3-25-2024		250,000		285,938
Republic of Kazakhstan		5.13			7-21-2025		250,000		276,825
Republic of Sri Lanka		5.75			1-18-2022		400,000		422,556
Socialist Republic of Vietnam		4.80			11-19-2024		200,000		213,671
The Dominican Republic		6.88			1-29-2026		200,000		228,092
Total Yankee Government Bonds (Cost $3,505,702)									3,619,232
	Yield					Shares
Short-Term Investments: 10.26%
Investment Companies: 9.82%
Wells Fargo Government Money Market Select Class (l)(u)##		0.92					4,686,555		4,686,555
						Principal
U.S. Treasury Securities: 0.44%
U.S. Treasury Bill (z)#		1.00			12-14-2017	$	210,000		209,592
Total Short-Term Investments (Cost $4,896,120)									4,896,147

Total investments in securities (Cost $46,616,070)	99.04	%		47,265,464
Other assets and liabilities, net	0.96			457,220
Total net assets	100.00	%	$	47,722,684

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

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

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

¥ 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.

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

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

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

±± The coupon of the security is adjusted based on the principal and interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages.

† Non-income-earning security

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

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

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

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

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

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

Portfolio of investments—September 30, 2017 Wells Fargo Strategic Income Fund 21

Futures Contracts

Description	Number of contracts		Expiration date		Notional cost		Notional value		Unrealized gains		Unrealized losses
Short
Euro-Bond Futures		2		12-7-2017	$	311,403	$	310,083	$	1,320	$	0
Ultra U.S. Treasury Bonds		6		12-19-2017		1,006,191		990,750		15,441		0
10-Year Ultra U.S. Treasury Notes		9		12-19-2017		1,216,578		1,208,953		7,625		0
10-Year U.S. Treasury Notes		30		12-19-2017		3,815,574		3,759,375		56,199		0
2-Year U.S. Treasury Notes		33		12-29-2017		7,129,932		7,118,203		11,729		0
5-Year U.S. Treasury Notes		45		12-29-2017		5,329,328		5,287,500		41,828		0

Forward Foreign Currency Contracts

Currency to be received	Currency to be delivered	Counterparty¤¤	Settlement date	Unrealized gains		Unrealized losses
384,536 USD	5,000,000 ZAR	State Street	10-16-2017	$	16,008	$	0
114,135 USD	1,525,000 ZAR	State Street	10-16-2017		1,734		0
155,000 CAD	125,534 USD	State Street	10-23-2017		0		(1,292	)
398,276 USD	1,275,000 BRL	State Street	11-30-2017		0		(1,143	)
91,526 USD	290,000 BRL	State Street	11-30-2017		678		0
1,262,983 USD	1,055,000 EUR	Citibank	12-29-2017		9,901		0
				$	28,321	$	(2,435	)

¤¤ Transaction can only be closed with the originating counterparty.

Credit Default Swaps

Sell protection

Reference entity	Fixed rate received			Payment frequency		Counterparty°°		Maturity date		Notional amount		Value			Upfront payments/ receipts			Unrealized gains		Unrealized losses
Markit CDX Emerging Markets Index		1.00	%		Quarterly		JPMorgan		6-20-2022	$	950,000	$	(29,636	)	$	(33,395	)	$	3,759	$	0
Markit CDX North America Investment Grade Index		1.00			Quarterly		JPMorgan		6-20-2022		650,000		13,883			12,917			966		0
Markit CDX North America High Yield Index		5.00			Quarterly		JPMorgan		6-20-2022		475,000		37,242			33,276			3,966		0
Markit iTraxx Europe Index		1.00			Quarterly		JPMorgan		6-20-2022		1,025,000		29,987			22,290			7,697		0
Markit iTraxx Europe Crossover Index		5.00			Quarterly		JPMorgan		6-20-2022		50,000		7,518			6,869			649		0
															$	41,957		$	17,037	$	0

°° Exchange traded or centrally cleared transaction with counterparty

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Wells Fargo Government Money Market Fund Select Class		1,867,108		45,996,999		43,177,552		4,686,555	$	0	$	0	$	21,306	$	4,686,555		9.82	%
Affiliated securities no longer held at end of period										0		0		538		0		0.00
									$	0	$	0	$	21,844	$	4,686,555		9.82	%

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

22 Wells Fargo Strategic Income Fund Statement of assets and liabilities—September 30, 2017

Assets
Investments in unaffiliated securities, at value (cost $41,929,515)	$	42,578,909
Investments in affiliated securities, at value (cost $4,686,555)		4,686,555
Segregated cash for swaps		221,289
Receivable for investments sold		913,561
Receivable for Fund shares sold		1,815
Receivable for interest		372,401
Receivable for daily variation margin on open futures contracts		20,086
Receivable for securities lending income		94
Unrealized gains on credit default swap transactions		17,037
Premiums paid on credit default swap transactions		75,352
Unrealized gains on forward foreign currency contracts		28,321
Receivable from manager		3,395
Prepaid expenses and other assets		44,200
Total assets		48,963,015
Liabilities
Payable for investments purchased		1,122,202
Premiums received on credit default swap transactions		33,395
Administration fees payable		3,214
Payable for daily variation margin on open futures contracts		2,517
Unrealized losses on forward foreign currency contracts		2,435
Payable for Fund shares redeemed		496
Distribution fee payable		256
Due to custodian bank, foreign currency, at value (cost $185)		201
Accrued expenses and other liabilities		75,615
Total liabilities		1,240,331
Total net assets	$	47,722,684
NET ASSETS CONSIST OF
Paid-in capital	$	48,386,905
Undistributed net investment income		144,601
Accumulated net realized losses on investments		(1,634,283	)
Net unrealized gains on investments		825,461
Total net assets	$	47,722,684
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	896,335
Shares outstanding – Class A1		93,498
Net asset value per share – Class A		$9.59
Maximum offering price per share – Class A2		$9.99
Net assets – Class C	$	402,505
Shares outstanding – Class C1		42,048
Net asset value per share – Class C		$9.57
Net assets – Administrator Class	$	562,146
Shares outstanding – Administrator Class1		58,512
Net asset value per share – Administrator Class		$9.61
Net assets – Institutional Class	$	45,861,698
Shares outstanding – Institutional Class1		4,786,776
Net asset value per share – Institutional Class		$9.58

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended September 30, 2017 Wells Fargo Strategic Income Fund 23

Investment income
Interest (net of foreign interest withholding taxes of $7,244)	$	1,459,962
Income from affiliated securities		21,844
Dividends		15,117
Total investment income		1,496,923
Expenses
Management fee		182,100
Administration fees
Class A		2,067
Class C		896
Administrator Class		506
Institutional Class		25,862
Shareholder servicing fees
Class A		3,230
Class C		1,400
Administrator Class		1,265
Distribution fee
Class C		4,200
Custody and accounting fees		57,784
Professional fees		62,736
Registration fees		68,444
Shareholder report expenses		50,458
Trustees’ fees and expenses		20,969
Other fees and expenses		15,971
Total expenses		497,888
Less: Fee waivers and/or expense reimbursements		(279,259	)
Net expenses		218,629
Net investment income		1,278,294
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(190,512	)
Futures transactions		87,767
Forward foreign currency contract transactions		(163,333	)
Credit default swap transactions		265
Net realized losses on investments		(265,813	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		909,245
Futures transactions		147,147
Forward foreign currency contract transactions		75,986
Credit default swap transactions		17,037
Net change in unrealized gains (losses) on investments		1,149,415
Net realized and unrealized gains (losses) on investments		883,602
Net increase in net assets resulting from operations	$	2,161,896

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

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

	Year ended September 30, 2017						Year ended September 30, 20161						Year ended October 31, 2015
Operations
Net investment income				$	1,278,294					$	890,629					$	1,317,175
Net realized losses on investments					(265,813	)					(919,157	)					(1,296,981	)
Net change in unrealized gains (losses) on investments					1,149,415						988,102						(666,689	)
Net increase (decrease) in net assets resulting from operations					2,161,896						959,574						(646,495	)
Distributions to shareholders from
Net investment income
Class A					(28,157	)					(13,014	)					(21,334	)
Class C					(9,306	)					(6,442	)					(14,917	)
Administrator Class					(12,437	)					(7,355	)					(12,399	)
Institutional Class					(841,651	)					(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					(891,551	)					(547,304	)					(1,095,596	)
Capital share transactions		Shares						Shares						Shares
Proceeds from shares sold
Class A		321,165			2,992,396			117,382			1,055,716			44,768			426,513
Class C		13,178			122,066			12,099			109,873			5,907			55,667
Administrator Class		57,991			545,062			9,037			83,300			0			0
Institutional Class		2,906,247			27,435,661			621,194			5,533,801			190,379			1,736,500
					31,095,185						6,782,690						2,218,680
Reinvestment of distributions
Class A		2,995			27,934			1,995			17,957			2,260			21,553
Class C		1,010			9,306			979			8,774			1,740			16,606
Administrator Class		1,323			12,409			1,137			10,255			1,443			13,803
Institutional Class		89,616			841,651			56,806			509,923			109,213			1,041,437
					891,300						546,909						1,093,399
Payment for shares redeemed
Class A		(343,855	)		(3,221,808	)		(107,748	)		(971,689	)		(18,900	)		(178,898	)
Class C		(55,235	)		(514,171	)		(8,141	)		(73,072	)		(15,520	)		(148,738	)
Administrator Class		(65,078	)		(611,345	)		(14	)		(129	)		(4,192	)		(39,990	)
Institutional Class		(717,532	)		(6,786,658	)		(90,476	)		(795,724	)		(2,358,709	)		(22,270,242	)
					(11,133,982	)					(1,840,614	)					(22,637,868	)
Net increase (decrease) in net assets resulting from capital share transactions					20,852,503						5,488,985						(19,325,789	)
Total increase (decrease) in net assets					22,122,848						5,901,255						(21,067,880	)
Net assets
Beginning of period					25,599,836						19,698,581						40,766,461
End of period				$	47,722,684					$	25,599,836					$	19,698,581
Undistributed net investment income				$	144,601					$	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 25

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
CLASS A	2017			20161			2015			2014			20132
Net asset value, beginning of period		$9.25			$9.13			$9.72			$9.66			$10.00
Net investment income		0.33	3		0.31			0.34			0.37			0.27
Net realized and unrealized gains (losses) on investments		0.22			(0.01	)		(0.69	)		(0.05	)		(0.36	)
Total from investment operations		0.55			0.30			(0.35	)		0.32			(0.09	)
Distributions to shareholders from
Net investment income		(0.21	)		(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		(0.21	)		(0.18	)		(0.24	)		(0.26	)		(0.25	)
Net asset value, end of period		$9.59			$9.25			$9.13			$9.72			$9.66
Total return4		6.05	%		3.34	%		(3.64	)%		3.36	%		(0.89	)%
Ratios to average net assets (annualized)
Gross expenses		1.78	%		1.80	%		1.63	%		1.51	%		1.85	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		3.47	%		3.85	%		3.77	%		4.02	%		3.76	%
Supplemental data
Portfolio turnover rate		65	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$896			$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  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.

26 Wells Fargo Strategic Income Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
CLASS C	2017			20161			2015			2014			20132
Net asset value, beginning of period		$9.22			$9.10			$9.71			$9.65			$10.00
Net investment income		0.29			0.25			0.28			0.31			0.21
Net realized and unrealized gains (losses) on investments		0.18			(0.02	)		(0.68	)		(0.06	)		(0.37	)
Total from investment operations		0.47			0.23			(0.40	)		0.25			(0.16	)
Distributions to shareholders from
Net investment income		(0.12	)		(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		(0.12	)		(0.11	)		(0.21	)		(0.19	)		(0.19	)
Net asset value, end of period		$9.57			$9.22			$9.10			$9.71			$9.65
Total return3		5.20	%		2.67	%		(4.35	)%		2.61	%		(1.51	)%
Ratios to average net assets (annualized)
Gross expenses		2.59	%		2.54	%		2.37	%		2.25	%		2.60	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		2.80	%		3.10	%		3.02	%		3.25	%		3.01	%
Supplemental data
Portfolio turnover rate		65	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$403			$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  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 27

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
ADMINISTRATOR CLASS	2017			20161			2015			2014			20132
Net asset value, beginning of period		$9.29			$9.16			$9.74			$9.66			$10.00
Net investment income		0.34	3		0.33	3		0.37			0.39			0.28
Net realized and unrealized gains (losses) on investments		0.20			(0.01	)		(0.70	)		(0.05	)		(0.37	)
Total from investment operations		0.54			0.32			(0.33	)		0.34			(0.09	)
Distributions to shareholders from
Net investment income		(0.22	)		(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		(0.22	)		(0.19	)		(0.25	)		(0.26	)		(0.25	)
Net asset value, end of period		$9.61			$9.29			$9.16			$9.74			$9.66
Total return4		5.91	%		3.52	%		(3.51	)%		3.63	%		(0.85	)%
Ratios to average net assets (annualized)
Gross expenses		1.72	%		1.74	%		1.56	%		1.46	%		1.79	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		3.64	%		4.00	%		3.92	%		4.18	%		3.90	%
Supplemental data
Portfolio turnover rate		65	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$562			$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.

28 Wells Fargo Strategic Income Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30						Year ended October 31
INSTITUTIONAL CLASS	2017			20161			2015			2014			20132
Net asset value, beginning of period		$9.24			$9.14			$9.71			$9.66			$10.00
Net investment income		0.35	3		0.34			0.40			0.41	3		0.29
Net realized and unrealized gains (losses) on investments		0.24			(0.02	)		(0.71	)		(0.07	)		(0.36	)
Total from investment operations		0.59			0.32			(0.31	)		0.34			(0.07	)
Distributions to shareholders from
Net investment income		(0.25	)		(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		(0.25	)		(0.22	)		(0.26	)		(0.29	)		(0.27	)
Net asset value, end of period		$9.58			$9.24			$9.14			$9.71			$9.66
Total return4		6.43	%		3.55	%		(3.28	)%		3.60	%		(0.66	)%
Ratios to average net assets (annualized)
Gross expenses		1.40	%		1.46	%		1.19	%		1.14	%		1.52	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		3.71	%		4.16	%		4.04	%		4.25	%		4.05	%
Supplemental data
Portfolio turnover rate		65	%		52	%		53	%		51	%		39	%
Net assets, end of period (000s omitted)		$45,862			$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 Wells Fargo Strategic Income Fund 29

1. ORGANIZATION

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

30 Wells Fargo Strategic Income Fund Notes to financial statements

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.

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 income from affiliates securities 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

Notes to financial statements Wells Fargo Strategic Income Fund 31

selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.

Futures contracts

The Fund is subject to interest rate risk 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.

Dividend income is recognized on the ex-dividend date.

32 Wells Fargo Strategic Income Fund Notes to financial statements

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

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

Distributions to shareholders

Distributions to shareholders from net investment income 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 to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $46,802,681 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	903,945
Gross unrealized losses		(264,097	)
Net unrealized gains	$	639,848

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to foreign currency transactions. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$(291,180)	$291,180

As of September 30, 2017, the Fund had capital loss carryforwards which consist of $536,005 in short-term capital losses and $881,299 in long-term capital losses.

As of September 30, 2017, the Fund had current year deferred post-October capital losses consisting of $71,469 in short-term losses which will be recognized on the first day of the following fiscal year.

Class allocations

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

Notes to financial statements Wells Fargo Strategic Income Fund 33

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 September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Asset-backed securities	$	0	$	3,511,804	$	0	$	3,511,804
Corporate bonds and notes		0		11,585,060		0		11,585,060
Exchange-traded funds		251,723		0		0		251,723
Foreign corporate bonds and notes		0		1,801,437		0		1,801,437
Foreign government bonds		0		3,873,898		0		3,873,898
Loans		0		4,635,578		0		4,635,578
Municipal obligations		0		1,705,690		0		1,705,690
Non-agency mortgage-backed securities		0		4,537,593		0		4,537,593
Rights
Utilities		0		5,539		0		5,539
U.S. Treasury securities		3,209,974		0		0		3,209,974
Yankee corporate bonds and notes		0		3,631,789		0		3,631,789
Yankee government bonds		0		3,619,232		0		3,619,232
Short-term investments
Investment companies		4,686,555		0		0		4,686,555
U.S. Treasury securities		209,592		0		0		209,592
		8,357,844		38,907,620		0		47,265,464
Credit default swap contracts		0		92,389		0		92,389
Forward foreign currency contracts		0		28,321		0		28,321
Futures contracts		20,086		0		0		20,086
Total assets	$	8,377,930	$	39,028,330	$	0	$	47,406,260
Liabilities
Credit default swap contracts	$	0	$	33,395	$	0	$	33,395
Forward foreign currency contracts		0		2,435		0		2,435
Futures contracts		2,517		0		0		2,517
Total liabilities	$	2,517	$	35,830	$	0	$	38,347

34 Wells Fargo Strategic Income Fund Notes to financial statements

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

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At September 30, 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 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 year ended September 30, 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 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.

During the year ended September 30, 2017, State Street Bank and Trust Company (“State Street’), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses during the period the Fund was erroneously billed.

Notes to financial statements Wells Fargo Strategic Income Fund 35

Distribution fee

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended September 30, 2017, Funds Distributor received $55 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended September 30, 2017.

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund had $430,750 and $1,288,328 in interfund purchases and sales, respectively, during the year ended September 30, 2017.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$5,991,094	$35,052,650	$2,891,688	$17,113,437

As of September 30, 2017, the Fund had unfunded term loan commitments of $100,000.

6. DERIVATIVE TRANSACTIONS

During the year ended September 30, 2017, the Fund entered into futures contracts and forward foreign currency contracts to manage duration exposure and for economic hedging purposes; and credit default swap contracts as a substitute for taking a position in the underlying security or basket of securities or to potentially enhance the Fund’s total return.

The table below discloses the volume of the Fund’s derivative transactions during the year and any segregated cash at September 30, 2017.

Futures contracts
Average notional balance on long futures	$	244,527
Average notional balance on short futures		7,628,227
Forward foreign currency contracts
Average contract amounts to buy	$	722,452
Average contract amounts to sell		2,384,982
Credit default swaps
Average notional balance	$	1,100,274
Segregated cash at September 30, 2017		221,289

The Fund’s credit default swap may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions. On September 30, 2017, the aggregate fair value of credit defaults swap with net asset contingent features that were in a liability position amounted to $29,636.

36 Wells Fargo Strategic Income Fund Notes to financial statements

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 September 30, 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	$	20,086	*	Payable for daily variation margin on open futures contracts	$	2,517	*
Foreign currency risk	Unrealized gains on forward foreign currency contracts		28,321		Unrealized losses on forward foreign currency contracts		2,435
Credit risk	Unrealized gains on credit default swap transactions		92,389	**	Premiums received on credit default swap transactions		33,395
		$	140,796			$	38,347

* Only the current day’s variation margin as of September 30, 2017 is reported separately on the Statement of Assets and Liabilities.

** Amount includes premiums paid on swap contracts.

The effect of derivative instruments on the Statement of Operations for the year ended September 30, 2017 was as follows for the Fund:

	Amount of realized gains (losses) on derivatives							Change in unrealized gains on derivatives
	Futures contracts		Forward currency contracts			Credit default swaps		Futures contracts		Forward currency contracts		Credit default swaps
Interest rate risk	$	87,767	$	0		$	0	$	147,147	$	0	$	0
Forward currency risk		0		(163,333	)		0		0		75,986		0
Credit risk		0		0			265		0		0		17,037
	$	87,767	$	(163,333	)	$	265	$	147,147	$	75,986	$	17,037

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 clearinghouse 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:

Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral received		Net amount of assets
Citibank	$	9,901	$	0		$	0	$	9,901
JPMorgan		112,475		(35,912	)		0		76,563
State Street		18,420		(2,435	)		0		15,985

Notes to financial statements Wells Fargo Strategic Income Fund 37

Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral pledged		Net amount of liabilities
JPMorgan	$	35,912	$	(35,912	)	$	0	$	0
State Street		2,435		(2,435	)		0		0

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid were as follows:

	Year ended September 30				Year ended October 31
	2017		20161		2015
Ordinary income	$	891,551	$	392,549	$	984,146
Tax basis return of capital		0		154,755		111,450

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.

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Post-October capital losses deferred	Capital loss carryforward
$185,704	$638,848	$(71,469)	$(1,417,304)

9. INDEMNIFICATION

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

10. SUBSEQUENT DISTRIBUTIONS

On October 25, 2017, the Fund declared distributions from net investment income to shareholders of record on October 24, 2017. The per share amounts payable on October 26, 2017 were as follows:

	Net investment income
Class A	$	0.02913
Class C		0.02319
Administrator Class		0.02937
Institutional Class		0.03144

These distributions are not reflected in the accompanying financial statements.

38 Wells Fargo Strategic Income Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Strategic Income Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, for the period ended September 30, 2016, and for the year ended October 31, 2015, and the financial highlights for the year then ended, for the period ended September 30, 2016, and for each of the years or periods in the period from January 31, 2013 (commencement of operations) to October 31, 2015. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Strategic Income Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for the year then ended, for the period ended September 30, 2016, and for the year ended October 31, 2015, and the financial highlights for the year then ended, for the period ended September 30, 2016, and for each of the years or periods in the period from January 31, 2013 (commencement of operations) to October 31, 2015, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

Other information (unaudited) Wells Fargo Strategic Income Fund 39

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 1.40% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $12,511 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended September 30, 2017, $604,115 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

40 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 152 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 investment 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 led 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 Forté 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.	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 41

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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

42 Wells Fargo Strategic Income Fund Other information (unaudited)

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 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.

Other information (unaudited) Wells Fargo Strategic Income Fund 43

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Strategic Income Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment sub-advisory agreement with Wells Capital Management Incorporated (“WellsCap”), an affiliate of Funds Management; and (iii) an investment sub-advisory agreement with First International Advisors, LLC (“FIA”), an affiliate of Funds Management. The sub-advisory agreements with WellsCap and FIA (the “Sub-Advisers”) are collectively referred to as the “Sub-Advisory Agreements,” and the Management Agreement and the Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Advisers and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Advisers were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Advisers about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Advisers under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Advisers, and a description of Funds Management’s and the Sub-Advisers’ business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

44 Wells Fargo Strategic Income Fund Other information (unaudited)

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was lower than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Bloomberg Barclays U.S. Universal Bond Index, for the one-year period under review, but lower than its benchmark for the three-year period under review. The Board noted the short performance history of the Fund.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Advisers for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Advisers, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Advisers, the Board ascribed limited relevance to the allocation of fees between them.

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Advisers from providing services to the fund family as a whole, noting that the Sub-Advisers’ profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

Other information (unaudited) Wells Fargo Strategic Income Fund 45

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Advisers

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Advisers under each of the Advisory Agreements was reasonable.

46 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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306433 11-17 A263/AR263 09-17

Annual Report

September 30, 2017

Wells Fargo C&B 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	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	22
Report of independent registered public accounting firm	27
Other information	28
List of abbreviations	35

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo C&B Mid Cap Value Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo C&B Mid Cap Value Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo C&B Mid Cap Value Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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

Investment objective

The Fund seeks 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 September 30, 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		12.98		13.05		6.73		19.89		14.40		7.36		1.33		1.25
Class C (CBMCX)	7-26-2004		18.01		13.54		6.56		19.01		13.54		6.56		2.08		2.00
Administrator Class (CBMIX)	7-26-2004		–		–		–		20.02		14.48		7.44		1.25		1.15
Institutional Class (CBMSX)	7-26-2004		–		–		–		20.30		14.76		7.71		1.00		0.90
Russell Midcap® Value Index3	–		–		–		–		13.37		14.33		7.85		–		–

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 7.

Performance highlights (unaudited) Wells Fargo C&B Mid Cap Value Fund 7

Growth of $10,000 investment as of September 30, 2017⁴

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

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.

* This security was not held in the Fund at the end of the reporting period.

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

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Russell Midcap^® Value Index, for the 12-month period that ended September 30, 2017.

∎ Outperformance primarily was driven by sector allocations—a function of our bottom-up fundamental stock-selection process—including significant underweights to the real estate and energy sectors and overweights to the financials and industrials sectors.

∎ The Fund’s overweight to the health care sector detracted from performance; several individual holdings that declined meaningfully in value detracted as well.

U.S. stocks enjoyed a strong 12-month period. However, results were mixed at the sector level. With interest rates up in response to the November 2016 U.S. presidential election and indications that the U.S. Federal Reserve (Fed) was continuing on a normalization path, many stocks in the financials sector rose sharply while stocks with bond-like characteristics—including many in the real estate and utilities sectors—lagged. The energy sector delivered the weakest results within the index as energy companies continued to struggle due to reduced activity resulting from low oil prices and, in many cases, from overleveraged balance sheets. In addition to financials, stocks in the information technology and industrials sectors tended to perform strongly due to solid continuing earnings growth that more than offset areas of weakness. Investors appeared to prefer high-quality companies although this trend seemed to reverse toward the end of the reporting period. Given our commitment to investing in quality companies and the Fund’s positioning based on our bottom-up, fundamental stock-selection process, the environment overall was favorable for our investment strategy and for the Fund’s performance.

With a continuing favorable market environment and the Fund’s robust performance, our valuation disciplines necessitated a higher-than-normal degree of portfolio adjustments during the period. In total, 12 holdings were eliminated from the Fund and 12 new positions were initiated. As the number of new holdings reflects, the market environment overall presented good opportunities for us to refresh the portfolio, adding companies with underlying business models, strong cash-flow generation, conservative balance sheets, and reasonable valuations that we found attractive.

Ten largest holdings (%) as of September 30, 20175
First Cash Financial Services Incorporated	3.94
Gildan Activewear Incorporated	3.60
AerCap Holdings NV	3.15
TCF Financial Corporation	2.79
Whirlpool Corporation	2.74
Schweitzer-Mauduit International Incorporated	2.73
State Street Corporation	2.66
Genpact Limited	2.64
FNF Group	2.58
RenaissanceRe Holdings Limited	2.56

Given the diverse range of sectors in which the stocks eliminated and the stocks added are located, the Fund’s positioning from a sector perspective remained substantially similar except within the industrials sector, where the Fund’s significant overweight was meaningfully reduced. A number of holdings—including Graco Incorporated; Parker-Hannifin Corporation; Rockwell Collins, Incorporated; W.W. Grainger, Incorporated; and WESCO International, Incorporated—met our estimates of their intrinsic values and were eliminated from the Fund. Their collective portfolio weights were only partially replaced by the addition of industrials stocks Snap-on Incorporated and Steelcase Incorporated.

Sector distribution as of September 30, 2017⁶

The Fund benefited from underweights to real estate and energy and an overweight to financials.

The underweight to the real estate sector—specifically, to real estate investment trusts (REITs)—generally was due to our valuation, debt-leverage, and balance-sheet concerns regarding REITs within the benchmark’s real estate sector. The Fund’s underweight to the energy sector was due to the fact that many companies in the sector had overextended balance sheets and appeared to us to be at risk in the event of a major industry downturn. The Fund’s overweight to the financials sector was largely due to our ability to identify a number of banks with relatively unique business models and strong deposit franchises and to identify potentially well-positioned insurance companies trading at discounted valuations

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo C&B Mid Cap Value Fund 9

due to persistently low interest rates. On an individual stock level, the Fund’s top contributors to relative performance included MoneyGram International, Incorporated*; Endurance Specialty Holdings Limited*; and Rockwell Collins, which became takeover targets during the period. Financials holdings State Street Corporation; First Cash Financial Services, Incorporated; and The Progressive Corporation delivered key contributions as well.

An overweight to health care and negative results from several holdings hindered Fund performance.

At the sector level, the only detractor from relative performance during the period was the Fund’s overweight to health care. At the holdings level, major laggards included physician-services provider MEDNAX, Incorporated; beauty-supply and specialty-retail distributor Sally Beauty Holdings, Incorporated; energy-management company World Fuel Services Corporation; hospitality industry company Brinker International, Incorporated; and debt buyer PRA Group, Incorporated. MEDNAX underperformed due to several factors, including a declining birth rate. Sally Beauty faced weak revenue trends. The underperformance of World Fuel Services resulted partly from continued weakness in its marine segment. Brinker suffered from a soft casual-dining market, and PRA Group’s weak results were driven by a low number of defaulted receivables available for purchase and intensified by a changing regulatory environment and arcane accounting rules that pressured the company.

The transition away from monetary stimulus may lead to new investment opportunities.

The Fed recently announced it would begin shrinking its balance sheet, marking a new step in its process of winding down the era of extraordinary monetary stimulus. The transition away from stimulus brings with it a set of concerns but also opportunities. We have stated in the past that the various forms of quantitative easing have supported many companies of questionable quality. As monetary policy becomes more restrictive and interest rates potentially rise, weaker companies may find it increasingly harder to compete with higher-quality peers. As a result, corporate returns likely could be increasingly based on company-specific fundamentals rather than on macroeconomic factors. We believe this transitioning environment may bring new opportunities for us to uncover for the benefit of Fund shareholders.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,064.98	$	6.47		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.80	$	6.33		1.25	%
Class C
Actual	$	1,000.00	$	1,061.20	$	10.33		2.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.04	$	10.10		2.00	%
Administrator Class
Actual	$	1,000.00	$	1,065.71	$	5.96		1.15	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.30	$	5.82		1.15	%
Institutional Class
Actual	$	1,000.00	$	1,066.89	$	4.66		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.56	$	4.56		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—September 30, 2017 Wells Fargo C&B Mid Cap Value Fund 11

Security name	Shares		Value
Common Stocks: 94.89%
Consumer Discretionary: 18.93%
Auto Components: 1.87%
Tenneco Automotive Incorporated		77,400	$	4,695,858
Hotels, Restaurants & Leisure: 0.75%
Brinker International Incorporated		58,900		1,876,554
Household Durables: 5.20%
Helen of Troy Limited †		63,792		6,181,445
Whirlpool Corporation		37,200		6,861,168
				13,042,613
Media: 2.39%
Omnicom Group Incorporated		80,700		5,977,449
Specialty Retail: 2.80%
Penske Auto Group Incorporated		58,000		2,759,060
Sally Beauty Holdings Incorporated †		218,100		4,270,398
				7,029,458
Textiles, Apparel & Luxury Goods: 5.92%
Gildan Activewear Incorporated		288,572		9,026,532
HanesBrands Incorporated «		235,400		5,800,256
				14,826,788
Consumer Staples: 1.75%
Food & Staples Retailing: 1.75%
United Natural Foods Incorporated †		105,400		4,383,586
Energy: 1.43%
Oil, Gas & Consumable Fuels: 1.43%
World Fuel Services Corporation		106,000		3,594,460
Financials: 25.62%
Banks: 5.07%
Commerce Bancshares Incorporated		40,203		2,322,527
SVB Financial Group †		18,200		3,405,038
TCF Financial Corporation		409,800		6,982,992
				12,710,557
Capital Markets: 2.67%
State Street Corporation		69,900		6,678,246
Consumer Finance: 7.45%
First Cash Financial Services Incorporated		156,200		9,864,030
PRA Group Incorporated Ǡ		165,900		4,753,035
Synchrony Financial		130,900		4,064,445
				18,681,510

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

12 Wells Fargo C&B Mid Cap Value Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Insurance: 10.43%
FNF Group		136,000	$	6,454,560
Markel Corporation †		4,300		4,592,314
RenaissanceRe Holdings Limited		47,500		6,419,150
The Progressive Corporation		128,000		6,197,760
Torchmark Corporation		30,800		2,466,772
				26,130,556
Health Care: 8.58%
Health Care Providers & Services: 5.80%
Cardinal Health Incorporated		78,700		5,266,604
Laboratory Corporation of America Holdings †		34,700		5,238,659
MEDNAX Incorporated †		93,500		4,031,720
				14,536,983
Life Sciences Tools & Services: 1.42%
INC Research Holdings Incorporated Class A †		68,020		3,557,446
Pharmaceuticals: 1.36%
Perrigo Company plc		40,200		3,402,930
Industrials: 17.69%
Building Products: 2.16%
Quanex Building Products Corporation		235,631		5,407,731
Commercial Services & Supplies: 2.94%
Steelcase Incorporated Class A		201,900		3,109,260
Tetra Tech Incorporated		91,610		4,264,446
				7,373,706
Electrical Equipment: 3.90%
AMETEK Incorporated		77,200		5,098,288
Eaton Corporation plc		60,900		4,676,511
				9,774,799
Machinery: 5.54%
Donaldson Company Incorporated		71,600		3,289,304
Snap-on Incorporated «		35,500		5,289,855
Woodward Governor Company		68,400		5,308,524
				13,887,683
Trading Companies & Distributors: 3.15%
AerCap Holdings NV †		154,500		7,896,495
Information Technology: 8.23%
Electronic Equipment, Instruments & Components: 3.20%
Arrow Electronics Incorporated †		56,800		4,567,288
TE Connectivity Limited		41,500		3,446,990
				8,014,278

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

Portfolio of investments—September 30, 2017 Wells Fargo C&B Mid Cap Value Fund 13

Security name				Shares		Value
IT Services: 3.96%
Alliance Data Systems Corporation					15,000	$	3,323,250
Genpact Limited					230,000		6,612,500
							9,935,750
Semiconductors & Semiconductor Equipment: 1.07%
Analog Devices Incorporated					31,204		2,688,849
Materials: 10.86%
Chemicals: 2.16%
Axalta Coating Systems Limited †					187,100		5,410,932
Containers & Packaging: 3.81%
Ball Corporation					113,000		4,666,900
Crown Holdings Incorporated †					82,000		4,897,040
							9,563,940
Metals & Mining: 2.16%
Reliance Steel & Aluminum Company					71,100		5,415,687
Paper & Forest Products: 2.73%
Schweitzer-Mauduit International Incorporated					164,800		6,832,608
Real Estate: 1.80%
Real Estate Management & Development: 1.80%
CBRE Group Incorporated Class A †					119,100		4,511,508
Total Common Stocks (Cost $193,411,391)							237,838,960
	Yield
Short-Term Investments: 9.05%
Investment Companies: 9.05%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25	%		9,592,251		9,593,210
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92			13,092,556		13,092,556
Total Short-Term Investments (Cost $22,685,527)							22,685,766

Total investments in securities (Cost $216,096,918)	103.94	%		260,524,726
Other assets and liabilities, net	(3.94	)		(9,882,561	)
Total net assets	100.00	%	$	250,642,165

† 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 company purchased with cash collateral received from securities on loan.

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

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

14 Wells Fargo C&B Mid Cap Value Fund Portfolio of investments—September 30, 2017

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		5,691,200		153,749,625		149,848,574		9,592,251	$	846	$	239	$	39,640	$	9,593,210
Wells Fargo Government Money Market Fund Select Class		2,192,563		165,291,332		154,391,339		13,092,556		0		0		76,775		13,092,556
									$	846	$	239	$	116,415	$	22,685,766		9.05	%

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

Statement of assets and liabilities—September 30, 2017 Wells Fargo C&B Mid Cap Value Fund 15

Assets
Investments in unaffiliated securities (including $9,376,662 of securities loaned), at value (cost $193,411,391)	$	237,838,960
Investments in affiliated securities, at value (cost $22,685,527)		22,685,766
Receivable for Fund shares sold		1,043,388
Receivable for dividends		144,493
Receivable for securities lending income		2,723
Prepaid expenses and other assets		66,631
Total assets		261,781,961
Liabilities
Payable for investments purchased		792,471
Payable for Fund shares redeemed		499,961
Payable upon receipt of securities loaned		9,592,125
Management fee payable		142,616
Administration fees payable		34,868
Distribution fees payable		5,348
Accrued expenses and other liabilities		72,407
Total liabilities		11,139,796
Total net assets	$	250,642,165
NET ASSETS CONSIST OF
Paid-in capital	$	227,266,501
Undistributed net investment income		243,989
Accumulated net realized losses on investments		(21,296,133	)
Net unrealized gains on investments		44,427,808
Total net assets	$	250,642,165
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	115,257,657
Shares outstanding – Class A1		3,286,761
Net asset value per share – Class A		$35.07
Maximum offering price per share – Class A2		$37.21
Net assets – Class C	$	8,567,173
Shares outstanding – Class C1		258,700
Net asset value per share – Class C		$33.12
Net assets – Administrator Class	$	21,267,052
Shares outstanding – Administrator Class1		598,807
Net asset value per share – Administrator Class		$35.52
Net assets – Institutional Class	$	105,550,283
Shares outstanding – Institutional Class1		2,980,892
Net asset value per share – Institutional Class		$35.41

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.

16 Wells Fargo C&B Mid Cap Value Fund Statement of operations—year ended September 30, 2017

Investment income
Dividends (net of foreign withholding taxes of $14,276)	$	2,738,738
Income from affiliated securities		116,415
Total investment income		2,855,153
Expenses
Management fee		1,702,526
Administration fees
Class A		247,262
Class B		22	1
Class C		17,335
Administrator Class		14,345
Institutional Class		116,948
Shareholder servicing fees
Class A		294,360
Class B		26	1
Class C		20,636
Administrator Class		27,586
Distribution fees
Class B		78	1
Class C		61,909
Custody and accounting fees		20,576
Professional fees		39,833
Registration fees		67,875
Shareholder report expenses		44,104
Trustees’ fees and expenses		20,768
Other fees and expenses		9,222
Total expenses		2,705,411
Less: Fee waivers and/or expense reimbursements		(131,774	)
Net expenses		2,573,637
Net investment income		281,516
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		22,528,229
Affiliated securities		846
Net realized gains on investments		22,529,075
Net change in unrealized gains (losses) on:
Unaffiliated securities		14,893,086
Affiliated securities		239
Net change in unrealized gains (losses) on investments		14,893,325
Net realized and unrealized gains (losses) on investments		37,422,400
Net increase in net assets resulting from operations	$	37,703,916

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 C&B Mid Cap Value Fund 17

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment income				$	281,516					$	366,395
Net realized gains on investments					22,529,075						7,300,682
Net change in unrealized gains (losses) on investments					14,893,325						17,600,698
Net increase in net assets resulting from operations					37,703,916						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		329,229			10,679,080			4,470,268			119,152,053
Class C		52,816			1,621,177			34,688			897,420
Administrator Class		460,062			15,785,454			23,525			632,143
Institutional Class		3,656,287			121,259,348			948,461			26,675,954
Investor Class		N/A			N/A			29,800	1		784,378	1
					149,345,059						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		(1,145,224	)		(37,191,746	)		(1,169,247	)		(32,299,187	)
Class B		(2,793	)2		(82,744	)2		(1,734	)		(44,690	)
Class C		(56,912	)		(1,760,044	)		(52,342	)		(1,354,172	)
Administrator Class		(141,587	)		(4,659,587	)		(126,420	)		(3,361,427	)
Institutional Class		(1,971,512	)		(66,556,409	)		(378,243	)		(10,129,726	)
Investor Class		N/A			N/A			(4,103,703	)1		(109,800,701	)1
					(110,250,530	)					(156,989,903	)
Net increase (decrease) in net assets resulting from capital share transactions					39,305,824						(8,543,710	)
Total increase in net assets					76,766,786						16,373,016
Net assets
Beginning of period					173,875,379						157,502,363
End of period				$	250,642,165					$	173,875,379
Undistributed net investment income				$	243,989					$	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.

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

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$29.27			$25.12			$25.26			$23.74			$18.22
Net investment income (loss)		(0.00	)1,2		0.07	1		0.05	1		0.06			0.10	1
Net realized and unrealized gains (losses) on investments		5.82			4.13			(0.14	)		1.55			5.60
Total from investment operations		5.82			4.20			(0.09	)		1.61			5.70
Distributions to shareholders from
Net investment income		(0.02	)		(0.05	)		(0.05	)		(0.09	)		(0.18	)
Net asset value, end of period		$35.07			$29.27			$25.12			$25.26			$23.74
Total return3		19.89	%		16.73	%		(0.36	)%		6.78	%		31.59	%
Ratios to average net assets (annualized)
Gross expenses		1.30	%		1.33	%		1.35	%		1.35	%		1.38	%
Net expenses		1.25	%		1.24	%		1.20	%		1.20	%		1.20	%
Net investment income (loss)		(0.00	)%		0.27	%		0.18	%		0.24	%		0.49	%
Supplemental data
Portfolio turnover rate		54	%		35	%		41	%		55	%		48	%
Net assets, end of period (000s omitted)		$115,258			$120,020			$19,862			$21,465			$19,468

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo C&B Mid Cap Value Fund 19

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$27.83			$24.02			$24.29			$22.92			$17.60
Net investment loss		(0.26	)		(0.14	)1		(0.15	)1		(0.13	)1		(0.05	)1
Net realized and unrealized gains (losses) on investments		5.55			3.95			(0.12	)		1.50			5.42
Total from investment operations		5.29			3.81			(0.27	)		1.37			5.37
Distributions to shareholders from
Net investment income		0.00			0.00			0.00			0.00			(0.05	)
Net asset value, end of period		$33.12			$27.83			$24.02			$24.29			$22.92
Total return2		19.01	%		15.86	%		(1.11	)%		5.98	%		30.58	%
Ratios to average net assets (annualized)
Gross expenses		2.05	%		2.08	%		2.10	%		2.10	%		2.13	%
Net expenses		2.00	%		1.98	%		1.95	%		1.95	%		1.95	%
Net investment loss		(0.74	)%		(0.55	)%		(0.57	)%		(0.52	)%		(0.26	)%
Supplemental data
Portfolio turnover rate		54	%		35	%		41	%		55	%		48	%
Net assets, end of period (000s omitted)		$8,567			$7,314			$6,737			$7,531			$7,598

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

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

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$29.63			$25.42			$25.54			$24.01			$18.42
Net investment income		0.04	1		0.08	1		0.06	1		0.07	1		0.11	1
Net realized and unrealized gains (losses) on investments		5.89			4.19			(0.13	)		1.56			5.67
Total from investment operations		5.93			4.27			(0.07	)		1.63			5.78
Distributions to shareholders from
Net investment income		(0.04	)		(0.06	)		(0.05	)		(0.10	)		(0.19	)
Net asset value, end of period		$35.52			$29.63			$25.42			$25.54			$24.01
Total return		20.02	%		16.82	%		(0.30	)%		6.82	%		31.65	%
Ratios to average net assets (annualized)
Gross expenses		1.22	%		1.25	%		1.21	%		1.19	%		1.21	%
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Net investment income		0.12	%		0.28	%		0.22	%		0.26	%		0.53	%
Supplemental data
Portfolio turnover rate		54	%		35	%		41	%		55	%		48	%
Net assets, end of period (000s omitted)		$21,267			$8,302			$9,725			$12,830			$19,525

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo C&B Mid Cap Value Fund 21

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$29.53			$25.34			$25.49			$23.95			$18.38
Net investment income		0.16			0.16			0.10			0.14			0.17	1
Net realized and unrealized gains (losses) on investments		5.82			4.17			(0.12	)		1.55			5.64
Total from investment operations		5.98			4.33			(0.02	)		1.69			5.81
Distributions to shareholders from
Net investment income		(0.10	)		(0.14	)		(0.13	)		(0.15	)		(0.24	)
Net asset value, end of period		$35.41			$29.53			$25.34			$25.49			$23.95
Total return		20.30	%		17.11	%		(0.09	)%2		7.09	%		31.98	%
Ratios to average net assets (annualized)
Gross expenses		0.97	%		1.00	%		0.94	%		0.92	%		0.95	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		0.37	%		0.54	%		0.47	%		0.54	%		0.82	%
Supplemental data
Portfolio turnover rate		54	%		35	%		41	%		55	%		48	%
Net assets, end of period (000s omitted)		$105,550			$38,161			$18,229			$33,881			$24,628

¹  Calculated based upon average shares outstanding

²  Total return reflects adjustments to conform with generally accepted accounting principles.

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

22 Wells Fargo C&B Mid Cap Value Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification 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 were converted to Class A shares and are no longer offered by the Fund. Information for Investor Class shares reflected in the financial statements represents activity through October 23, 2015.

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, 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

Notes to financial statements Wells Fargo C&B Mid Cap Value Fund 23

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 income from affiliates securities 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 to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $218,174,379 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	46,412,775
Gross unrealized losses		(4,062,428	)
Net unrealized gains	$	42,350,347

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to expiration of capital loss carryforwards. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Undistributed net investment income	Accumulated net realized losses on investments
$(30,745,844)	$(37,449)	$30,783,293

24 Wells Fargo C&B Mid Cap Value Fund Notes to financial statements

As of September 30, 2017, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $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:

∎ 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 September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)			Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	47,448,720	$	0	$	0		$	47,448,720
Consumer staples		4,383,586		0		0			4,383,586
Energy		3,594,460		0		0			3,594,460
Financials		64,200,869		0		0			64,200,869
Health care		21,497,359		0		0			21,497,359
Industrials		44,340,414		0		0	��		44,340,414
Information technology		20,638,877		0		0			20,638,877
Materials		27,223,167		0		0			27,223,167
Real estate		4,511,508		0		0			4,511,508
Short-term investments
Investment companies		13,092,556		0		0			13,092,556
Investments measured at net asset value*									9,593,210
Total assets	$	250,931,516	$	0	$	0		$	260,524,726

* 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 $9,593,210 does not have a redemption period notice, can be redeemed daily and does not have any unfunded commitments.

Notes to financial statements Wells Fargo C&B Mid Cap Value Fund 25

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At September 30, 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 year ended September 30, 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.

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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street’), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $2,700 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A, Class B, and Class C shares for the year ended September 30, 2017.

26 Wells Fargo C&B Mid Cap Value Fund Notes to financial statements

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $150,428,554 and $115,834,484, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $242,954 and $351,049 of ordinary income for the years ended September 30, 2017 and September 30, 2016, respectively.

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized gains	Capital loss carryforward
$243,989	$42,350,347	$(19,218,672)

8. 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.

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo C&B Mid Cap Value Fund 27

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo C&B Mid Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo C&B Mid Cap Value Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

28 Wells Fargo C&B Mid Cap Value Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 100% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $242,954 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

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 29

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 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 investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

30 Wells Fargo 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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

Other information (unaudited) Wells Fargo C&B Mid Cap Value Fund 31

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 funds in the Fund Complex.

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

32 Wells Fargo C&B Mid Cap Value Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo C&B Mid Cap Value Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Cooke & Bieler, L.P. (the “Sub-Adviser”). The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index

Other information (unaudited) Wells Fargo C&B Mid Cap Value Fund 33

and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than or in range of its benchmark, the Russell Midcap^® Value Index, for the one- and five-year periods, but lower than its benchmark for the three- and ten-year periods.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. The Board considered this amount in comparison to the median amount retained by advisers to funds in a sub-advised expense universe that was determined by Broadridge to be similar to the Fund. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. The Board also considered that the sub-advisory fees paid to the Sub-Adviser had been negotiated by Funds Management on an arm’s length basis.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. The Board did not consider profitability with respect to the Sub-Adviser, as the sub-advisory fees paid to the Sub-Adviser had been negotiated by Funds Management on an arm’s-length basis.

34 Wells Fargo C&B Mid Cap Value Fund Other information (unaudited)

Based on its review, the Board did not deem the profits reported by Funds Management to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo C&B Mid Cap Value Fund 35

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306434 11-17 A228/AR228 09-17

Annual Report

September 30, 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	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	19
Notes to financial statements	24
Report of independent registered public accounting firm	30
Other information	31
List of abbreviations	38

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Common Stock Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Common Stock Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Common Stock Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 Wells Fargo Common Stock Fund Performance highlights (unaudited)

Investment objective

The Fund seeks long-term total 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 September 30, 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		9.43		10.52		7.41		16.10		11.83		8.05		1.26		1.26
Class C (STSAX)	11-30-2000		14.29		10.99		7.23		15.29		10.99		7.23		2.01		2.01
Class R6 (SCSRX)	6-28-2013		–		–		–		16.56		12.31		8.37		0.83		0.83
Administrator Class (SCSDX)	7-30-2010		–		–		–		16.26		12.00		8.17		1.18		1.11
Institutional Class (SCNSX)	7-30-2010		–		–		–		16.55		12.27		8.35		0.93		0.86
Russell 2500TM Index4	–		–		–		–		17.79		13.86		8.19		–		–

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 7.

Performance highlights (unaudited) Wells Fargo Common Stock Fund 7

Growth of $10,000 investment as of September 30, 2017⁵

^‡ 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 chart compares the performance of Class A shares for the most recent ten years with the Russell 2500^TM Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

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

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

8 Wells Fargo Common Stock Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Russell 2500^TM Index, for the 12-month period that ended September 30, 2017.

∎ Weak results due to stock selection in the energy, industrials, information technology, and materials sectors detracted from performance.

∎ Favorable positioning and stock selection within the financials, real estate, and consumer staples sectors benefited performance.

The U.S. stock market rallied and many U.S. stock market indexes hit new all-time highs during the reporting period. The Fund’s benchmark, the Russell 2500^TM Index, was no exception and has risen for eight straight quarters. Market volatility has remained near historical lows, and larger-cap and growth stocks generally have outperformed smaller-cap and value stocks.

A number of factors influenced the U.S. stock market during the period. From our perspective, the outcome of the November 2016 U.S. elections has had the biggest impact in the U.S., with one political party ending up in control of the White House, the House of Representatives, and the Senate. The U.S. stock market has been on a tear since then as investors have expected businesses to benefit from the new administration’s progrowth policies of less regulation, lower taxes, and increased infrastructure and defense spending. The U.S. Federal Reserve (Fed) raised its benchmark interest rate by 0.25% three times during the reporting period, most recently to a range of 1.00% to 1.25% at its June 2017 meeting. The Fed also released a fairly detailed outline of its plans to reduce the size of its $4.6 trillion balance sheet.

Throughout all of the market and economic events that occurred during the reporting period and with the expectation of tighter U.S. monetary policy going forward, we continued to seek companies with what we view to be good business models, strong management teams, and healthy cash flows trading at attractive discounts to their private market valuations (PMVs). The PMV represents the expected price an investor likely would pay for the entire company as a stand-alone private entity.

Ten largest holdings (%) as of September 30, 20176
E*TRADE Financial Corporation	2.36
Raymond James Financial Incorporated	2.11
Haemonetics Corporation	2.05
CNO Financial Group Incorporated	1.90
Dana Incorporated	1.86
Laboratory Corporation of America Holdings	1.80
Willis Towers Watson plc	1.79
LivaNova plc	1.72
Sensata Technologies Holding NV	1.70
Sterling BanCorp	1.62

A modest overweight to energy and stock selection within the energy and industrials sectors hindered Fund performance.

The largest individual detractor from performance was Babcock & Wilcox Company, which provides energy and environmental technologies and services for power and industrial markets worldwide. The company experienced multiple project-engineering problems that proved costly to remediate, and as further problems began to surface, we exited the Fund’s position in the stock. Spirit Airlines, Incorporated, suffered due to the competitive dynamics of aggressive pricing by another airline—United Continental Holdings, Incorporated—which hurt margins and growth expectations. The energy sector delivered the weakest results in the Russell 2500^TM Index for the

reporting period with a decline of 15.3%. While the price of oil stabilized during the period, the expectation for a meaningful increase was tempered by the lack of decline in global oil inventories and the ability of the domestic shale production to respond to price signals on short order. As a result, valuations for energy-related stocks have declined considerably more than the spot price of oil. The Fund’s holdings in the exploration and production industry underperformed during the period, including Cimarex Energy Company and RSP Permian, Incorporated.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Common Stock Fund 9

Portfolio allocation as of September 30, 2017⁷

Favorable positioning and stock selection drove relative outperformance within the Fund’s financials and real estate sectors.

The Fund benefited from an overweight to and stock selection within the financials sector. As a group, the Fund’s financials holdings outperformed the financials sector within the benchmark index, largely due to our positive stock selection in the insurance industry and our overweight to capital markets. Insurance holdings such as CNO Financial Group, Incorporated; The Progressive Corporation; and Reinsurance Group of America, Incorporated, benefited from expectations of higher long-term interest rates and reduced regulation. Capital markets holdings E*TRADE Financial Corporation and

Raymond James Financial, Incorporated, benefited from activity influenced by a rising stock market and interest-rate expectations. Within the real estate sector, an underweight contributed to returns. Additionally, SBA Communications Corporation, an operator of wireless communication towers in North America and Central America, outperformed industry peers by a wide margin. The company’s towers have performed well, with an increase in overall business activity and a decline in churn rate (the percentage of subscribers discontinuing their subscriptions). SBA Communications also may benefit from a ramp-up in deployment of new communication technologies and protocols. The Fund also benefited from an underweight to the consumer staples sector, which delivered a negative return for the period.

Our focus remains constant: to add value for shareholders through investment in attractively priced Fund holdings.

Our methodology includes buying stocks at a discount to their estimated PMV and selling stocks as they approach or exceed the upper end of their PMV range.

Our disciplined, bottom-up investment process leads us to be overweight or underweight certain sectors. This positioning changes over time based on macroeconomic and industry-specific factors. During the reporting period, our process led us to be overweight the IT and industrials sectors and underweight the real estate and utilities sectors. Through our disciplined investment process, we remain keenly aware of both price and enterprise values on a company-by-company basis. Our proprietary database of company acquisitions across industries, sectors, and time frames enables us to maintain a steady foundation for assessing the PMVs of companies compared with their public stock prices. We strive to take advantage of those price discrepancies for the benefit of Fund shareholders by purchasing stocks when we believe they are selling at a discount to their PMVs.

Looking ahead, interest rates, energy prices, and the policies of the U.S. government likely may be themes that influence the overall market and the relative performance of the Fund. The U.S. administration has been promoting lower taxes, increased infrastructure spending, and reduced regulations—generally, a probusiness environment. However, changes in trade agreements and the eventual winners and losers from tax and regulatory reforms remain key items to watch. The Fed has signaled more rate hikes in late 2017 and 2018 if labor markets tighten further, global economic risks remain well balanced, and inflation measures hit the Fed’s target. Volatility in commodities prices and global currencies likely may continue to drive global stock markets.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,047.45	$	6.42		1.25	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.80	$	6.33		1.25	%
Class C
Actual	$	1,000.00	$	1,043.41	$	10.24		2.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.04	$	10.10		2.00	%
Class R6
Actual	$	1,000.00	$	1,049.48	$	4.22		0.82	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.96	$	4.16		0.82	%
Administrator Class
Actual	$	1,000.00	$	1,048.07	$	5.65		1.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.55	$	5.57		1.10	%
Institutional Class
Actual	$	1,000.00	$	1,049.16	$	4.37		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.81	$	4.31		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—September 30, 2017 Wells Fargo Common Stock Fund 11

Security name	Shares		Value
Common Stocks: 96.89%
Consumer Discretionary: 9.66%
Auto Components: 1.86%
Dana Incorporated		832,993	$	23,290,484
Diversified Consumer Services: 1.02%
Houghton Mifflin Harcourt Company †		1,061,424		12,790,159
Hotels, Restaurants & Leisure: 2.14%
Buffalo Wild Wings Incorporated †		120,180		12,703,026
Jack in the Box Incorporated		138,028		14,067,814
				26,770,840
Household Durables: 1.44%
Mohawk Industries Incorporated †		72,535		17,953,138
Media: 1.03%
Interpublic Group of Companies Incorporated		618,922		12,867,388
Specialty Retail: 2.17%
Tractor Supply Company		267,385		16,922,797
Urban Outfitters Incorporated †«		429,126		10,256,111
				27,178,908
Consumer Staples: 2.05%
Household Products: 0.98%
Church & Dwight Company Incorporated		253,116		12,263,470
Personal Products: 1.07%
Edgewell Personal Care Company †		183,516		13,354,459
Energy: 6.34%
Oil, Gas & Consumable Fuels: 6.34%
Cimarex Energy Company		155,013		17,620,328
Parsley Energy Incorporated Class A †		367,031		9,667,597
RSP Permian Incorporated †		561,724		19,430,033
Targa Resources Corporation		339,309		16,049,316
WPX Energy Incorporated †		1,435,294		16,505,881
				79,273,155
Financials: 19.02%
Banks: 6.17%
Bank of the Ozarks Incorporated		114,922		5,522,002
First Horizon National Corporation		667,971		12,791,645
MB Financial Incorporated		425,893		19,173,703
PacWest Bancorp		385,847		19,489,132
Sterling BanCorp		823,079		20,288,897
				77,265,379

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

12 Wells Fargo Common Stock Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Capital Markets: 4.47%
E*TRADE Financial Corporation †		675,641	$	29,464,704
Raymond James Financial Incorporated		313,152		26,408,108
				55,872,812
Insurance: 8.38%
Arch Capital Group Limited †		149,332		14,709,202
CNO Financial Group Incorporated		1,019,001		23,783,483
Reinsurance Group of America Incorporated		113,159		15,789,075
RenaissanceRe Holdings Limited		107,393		14,513,090
The Progressive Corporation		281,928		13,650,954
Willis Towers Watson plc		144,976		22,359,648
				104,805,452
Health Care: 14.05%
Biotechnology: 1.80%
Alkermes plc †		167,324		8,506,752
BioMarin Pharmaceutical Incorporated †		82,762		7,702,659
Neurocrine Biosciences Incorporated †«		102,837		6,301,851
				22,511,262
Health Care Equipment & Supplies: 4.93%
Haemonetics Corporation †		571,198		25,629,654
Hologic Incorporated †		396,687		14,554,446
LivaNova plc †		307,187		21,521,521
				61,705,621
Health Care Providers & Services: 4.81%
HealthEquity Incorporated †		194,305		9,827,947
Humana Incorporated		56,890		13,860,111
Laboratory Corporation of America Holdings †		149,048		22,501,777
Universal Health Services Incorporated Class B		126,461		14,029,583
				60,219,418
Life Sciences Tools & Services: 2.51%
Agilent Technologies Incorporated		269,349		17,292,206
PerkinElmer Incorporated		203,591		14,041,671
				31,333,877
Industrials: 18.93%
Aerospace & Defense: 0.65%
Hexcel Corporation		141,472		8,123,322
Airlines: 0.88%
Spirit Airlines Incorporated †		330,103		11,028,741

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

Portfolio of investments—September 30, 2017 Wells Fargo Common Stock Fund 13

Security name	Shares		Value
Commercial Services & Supplies: 3.47%
Republic Services Incorporated		226,602	$	14,969,328
Steelcase Incorporated Class A		990,309		15,250,759
Stericycle Incorporated †		184,603		13,221,267
				43,441,354
Electrical Equipment: 4.32%
AMETEK Incorporated		234,117		15,461,087
Hubbell Incorporated		149,332		17,325,499
Sensata Technologies Holding NV †		442,126		21,252,997
				54,039,583
Industrial Conglomerates: 1.06%
Carlisle Companies Incorporated		132,124		13,250,716
Machinery: 2.82%
Colfax Corporation †		400,650		16,683,066
Wabtec Corporation «		245,730		18,614,047
				35,297,113
Road & Rail: 3.38%
Genesee & Wyoming Incorporated Class A †		163,021		12,065,184
Hertz Global Holdings Incorporated †«		691,283		15,457,088
Ryder System Incorporated		175,278		14,819,755
				42,342,027
Trading Companies & Distributors: 2.35%
GATX Corporation «		186,736		11,495,468
MRC Global Incorporated †		1,021,169		17,860,246
				29,355,714
Information Technology: 15.76%
Internet Software & Services: 1.41%
Cornerstone OnDemand Incorporated †		433,044		17,585,917
			��
IT Services: 4.16%
Amdocs Limited		205,959		13,247,283
CoreLogic Incorporated †		252,662		11,678,038
Gartner Incorporated †		97,250		12,098,873
Global Payments Incorporated		158,621		15,073,754
				52,097,948
Semiconductors & Semiconductor Equipment: 4.24%
Integrated Device Technology Incorporated †		509,737		13,548,809
Maxim Integrated Products Incorporated		189,671		9,049,203
ON Semiconductor Corporation †		1,056,374		19,511,228
Skyworks Solutions Incorporated		107,314		10,935,297
				53,044,537

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

14 Wells Fargo Common Stock Fund Portfolio of investments—September 30, 2017

Security name				Shares		Value
Software: 4.79%
Fortinet Incorporated †					363,814	$	13,039,094
Nuance Communications Incorporated †					687,383		10,805,661
Red Hat Incorporated †					164,358		18,220,728
Zendesk Incorporated †					612,006		17,815,495
							59,880,978
Technology Hardware, Storage & Peripherals: 1.16%
Diebold Incorporated «					635,017		14,510,138
Materials: 6.88%
Chemicals: 3.34%
Axalta Coating Systems Limited †					506,520		14,648,558
International Flavors & Fragrances Incorporated					88,444		12,639,532
Valvoline Incorporated					617,192		14,473,152
							41,761,242
Containers & Packaging: 1.10%
Crown Holdings Incorporated †					231,242		13,809,772
Metals & Mining: 2.44%
Royal Gold Incorporated					176,414		15,178,661
Steel Dynamics Incorporated					445,773		15,365,795
							30,544,456
Real Estate: 4.20%
Equity REITs: 4.20%
Camden Property Trust					125,100		11,440,395
Hudson Pacific Properties Incorporated					330,447		11,079,888
Physicians Realty Trust					670,433		11,886,777
SBA Communications Corporation †					126,352		18,201,006
							52,608,066
Total Common Stocks (Cost $826,980,927)							1,212,177,446
Exchange-Traded Funds: 2.12%
SPDR Dow Jones REIT ETF					99,133		9,170,794
SPDR S&P Biotech ETF «					200,277		17,337,980
Total Exchange-Traded Funds (Cost $17,941,757)							26,508,774
	Yield
Short-Term Investments: 6.92%
Investment Companies: 6.92%
Securities Lending Cash Investment LLC (l)(u)(r)		1.25	%		73,560,412		73,567,768
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92			13,029,319		13,029,319
Total Short-Term Investments (Cost $86,594,790)							86,597,087

Total investments in securities (Cost $931,517,474)	105.93	%		1,325,283,307
Other assets and liabilities, net	(5.93	)		(74,180,021	)
Total net assets	100.00	%	$	1,251,103,286

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

Portfolio of investments—September 30, 2017 Wells Fargo Common Stock Fund 15

† 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.

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

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

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		23,242,150		424,995,828		374,677,566		73,560,412	$	1,088	$	2,297	$	364,741	$	73,567,768
Wells Fargo Government Money Market Fund Select Class		23,993,777		324,465,920		335,430,378		13,029,319		0		0		113,706		13,029,319
									$	1,088	$	2,297	$	478,447	$	86,597,087		6.92	%

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

16 Wells Fargo Common Stock Fund Statement of assets and liabilities—September 30, 2017

Assets
Investments in unaffiliated securities (including $71,001,995 of securities loaned), at value (cost $844,922,684)	$	1,238,686,220
Investments in affiliated securities, at value (cost $86,594,790)		86,597,087
Receivable for Fund shares sold		151,596
Receivable for dividends		795,168
Receivable for securities lending income		31,922
Prepaid expenses and other assets		13,978
Total assets		1,326,275,971
Liabilities
Payable for Fund shares redeemed		319,215
Payable upon receipt of securities loaned		73,564,384
Management fee payable		782,033
Distribution fees payable		11,870
Administration fees payable		189,624
Accrued expenses and other liabilities		305,559
Total liabilities		75,172,685
Total net assets	$	1,251,103,286
NET ASSETS CONSIST OF
Paid-in capital	$	752,189,501
Accumulated net investment loss		(3,859	)
Accumulated net realized gains on investments		105,151,811
Net unrealized gains on investments		393,765,833
Total net assets	$	1,251,103,286
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	942,595,920
Shares outstanding – Class A1		39,181,921
Net asset value per share – Class A		$24.06
Maximum offering price per share – Class A2		$25.53
Net assets – Class C	$	18,978,442
Shares outstanding – Class C1		1,012,444
Net asset value per share – Class C		$18.75
Net assets – Class R6	$	115,640,588
Shares outstanding – Class R61		4,619,514
Net asset value per share – Class R6		$25.03
Net assets – Administrator Class	$	6,336,335
Shares outstanding – Administrator Class1		259,465
Net asset value per share – Administrator Class		$24.42
Net assets – Institutional Class	$	167,552,001
Shares outstanding – Institutional Class1		6,709,624
Net asset value per share – Institutional Class		$24.97

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—year ended September 30, 2017 Wells Fargo Common Stock Fund 17

Investment income
Dividends	$	10,299,189
Income from affiliated securities		478,447
Total investment income		10,777,636
Expenses
Management fee		9,464,245
Administration fees
Class A		1,948,082
Class B		12	1
Class C		44,300
Class R6		32,721
Administrator Class		11,616
Institutional Class		231,947
Shareholder servicing fees
Class A		2,319,146
Class B		14	1
Class C		52,738
Administrator Class		22,338
Distribution fees
Class B		41	1
Class C		158,215
Custody and accounting fees		74,909
Professional fees		51,652
Registration fees		111,177
Shareholder report expenses		70,361
Trustees’ fees and expenses		20,901
Other fees and expenses		39,875
Total expenses		14,654,290
Less: Fee waivers and/or expense reimbursements		(130,043	)
Net expenses		14,524,247
Net investment loss		(3,746,611	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		121,744,300
Affiliated securities		1,088
Net realized gains on investments		121,745,388
Net change in unrealized gains (losses) on:
Unaffiliated securities		68,745,101
Affiliated securities		2,297
Net change in unrealized gains (losses) on investments		68,747,398
Net realized and unrealized gains (losses) on investments		190,492,786
Net increase in net assets resulting from operations	$	186,746,175

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.

18 Wells Fargo Common Stock Fund Statement of changes in net assets

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment loss				$	(3,746,611	)				$	(418,110	)
Net realized gains on investments					121,745,388						58,412,227
Net change in unrealized gains (losses) on investments					68,747,398						87,367,906
Net increase in net assets resulting from operations					186,746,175						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					(3,722,907	)					(10,822,850	)
Administrator Class					(308,980	)					(1,979,080	)
Institutional Class					(6,486,421	)					(25,614,461	)
Total distributions to shareholders					(46,423,988	)					(152,151,480	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		975,399			21,721,156			39,544,860			906,361,116
Class C		58,484			1,036,989			87,982			1,399,266
Class R6		851,975			19,951,604			727,868			15,356,332
Administrator Class		68,428			1,537,967			93,356			1,876,928
Institutional Class		1,763,589			41,457,596			1,569,307			33,234,939
Investor Class		N/A			N/A			38,960	2		902,899	2
					85,705,312						959,131,480
Reinvestment of distributions
Class A		1,499,574			33,260,548			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			3,722,907			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
					44,608,892						146,800,645
Payment for shares redeemed
Class A		(6,314,787	)		(142,096,079	)		(7,807,939	)		(160,174,152	)
Class B		(1,872	)1		(33,351	)1		(5,487	)		(91,427	)
Class C		(442,603	)		(7,836,662	)		(381,490	)		(6,231,682	)
Class R6		(954,160	)		(22,265,015	)		(984,239	)		(20,831,726	)
Administrator Class		(589,682	)		(13,418,635	)		(249,908	)		(5,213,466	)
Institutional Class		(3,134,026	)		(73,012,502	)		(5,255,616	)		(106,700,641	)
Investor Class		N/A			N/A			(37,451,779	)2		(884,694,693	)2
					(258,662,244	)					(1,183,937,787	)
Net decrease in net assets resulting from capital share transactions					(128,348,040	)					(78,005,662	)
Total increase (decrease) in net assets					11,974,147						(84,795,119	)
Net assets
Beginning of period					1,239,129,139						1,323,924,258
End of period				$	1,251,103,286					$	1,239,129,139
Accumulated net investment loss				$	(3,859	)				$	(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 19

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$21.50			$21.62			$24.79			$24.45			$21.18
Net investment loss		(0.09	)		(0.01	)1		(0.04	)1		(0.07	)		(0.02	)
Net realized and unrealized gains (losses) on investments		3.48			2.45			(0.32	)		2.48			4.72
Total from investment operations		3.39			2.44			(0.36	)		2.41			4.70
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)
Net asset value, end of period		$24.06			$21.50			$21.62			$24.79			$24.45
Total return2		16.10	%		12.43	%		(1.76	)%		10.26	%		23.72	%
Ratios to average net assets (annualized)
Gross expenses		1.25	%		1.25	%		1.27	%		1.28	%		1.30	%
Net expenses		1.25	%		1.25	%		1.26	%		1.26	%		1.26	%
Net investment loss		(0.38	)%		(0.05	)%		(0.19	)%		(0.27	)%		(0.05	)%
Supplemental data
Portfolio turnover rate		35	%		32	%		51	%		38	%		40	%
Net assets, end of period (000s omitted)		$942,596			$924,864			$127,732			$277,517			$292,806

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

20 Wells Fargo Common Stock Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$17.04			$17.77			$21.02			$21.18			$18.67
Net investment loss		(0.20	)1		(0.14	)1		(0.18	)		(0.22	)1		(0.16	)1
Net realized and unrealized gains (losses) on investments		2.74			1.97			(0.26	)		2.13			4.10
Total from investment operations		2.54			1.83			(0.44	)		1.91			3.94
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)
Net asset value, end of period		$18.75			$17.04			$17.77			$21.02			$21.18
Total return2		15.29	%		11.52	%		(2.49	)%		9.42	%		22.78	%
Ratios to average net assets (annualized)
Gross expenses		2.00	%		2.00	%		2.02	%		2.03	%		2.05	%
Net expenses		2.00	%		2.00	%		2.00	%		2.01	%		2.01	%
Net investment loss		(1.14	)%		(0.87	)%		(0.93	)%		(1.01	)%		(0.81	)%
Supplemental data
Portfolio turnover rate		35	%		32	%		51	%		38	%		40	%
Net assets, end of period (000s omitted)		$18,978			$22,902			$25,668			$30,245			$29,483

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Common Stock Fund 21

(For a share outstanding throughout each period)

	Year ended September 30
CLASS R6	2017			2016			2015			2014			20131
Net asset value, beginning of period		$22.25			$22.20			$25.27			$24.78			$22.83
Net investment income		0.01			0.07	2		0.05			0.07	2		0.01
Net realized and unrealized gains (losses) on investments		3.60			2.54			(0.31	)		2.49			1.94
Total from investment operations		3.61			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		$25.03			$22.25			$22.20			$25.27			$24.78
Total return3		16.56	%		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		0.05	%		0.32	%		0.28	%		0.27	%		0.18	%
Supplemental data
Portfolio turnover rate		35	%		32	%		51	%		38	%		40	%
Net assets, end of period (000s omitted)		$115,641			$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.

22 Wells Fargo Common Stock Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$21.78			$21.84			$24.98			$24.59			$21.26
Net investment income (loss)		(0.06	)1		0.02			(0.01	)1		(0.02	)1		0.01
Net realized and unrealized gains (losses) on investments		3.53			2.48			(0.32	)		2.48			4.75
Total from investment operations		3.47			2.50			(0.33	)		2.46			4.76
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)
Net asset value, end of period		$24.42			$21.78			$21.84			$24.98			$24.59
Total return		16.26	%		12.59	%		(1.62	)%		10.41	%		23.92	%
Ratios to average net assets (annualized)
Gross expenses		1.17	%		1.17	%		1.12	%		1.11	%		1.11	%
Net expenses		1.10	%		1.10	%		1.10	%		1.09	%		1.09	%
Net investment income (loss)		(0.27	)%		0.03	%		(0.03	)%		(0.07	)%		0.11	%
Supplemental data
Portfolio turnover rate		35	%		32	%		51	%		38	%		40	%
Net assets, end of period (000s omitted)		$6,336			$16,720			$18,050			$45,364			$24,871

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Common Stock Fund 23

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$22.20			$22.16			$25.25			$24.77			$21.37
Net investment income		0.00	1,2		0.06	1		0.03			0.03			0.07	1
Net realized and unrealized gains (losses) on investments		3.60			2.54			(0.31	)		2.52			4.76
Total from investment operations		3.60			2.60			(0.28	)		2.55			4.83
Distributions to shareholders from
Net realized gains		(0.83	)		(2.56	)		(2.81	)		(2.07	)		(1.43	)
Net asset value, end of period		$24.97			$22.20			$22.16			$25.25			$24.77
Total return		16.55	%		12.88	%		(1.38	)%		10.72	%		24.14	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.92	%		0.86	%		0.85	%		0.87	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.87	%
Net investment income		0.02	%		0.28	%		0.24	%		0.14	%		0.33	%
Supplemental data
Portfolio turnover rate		35	%		32	%		51	%		38	%		40	%
Net assets, end of period (000s omitted)		$167,552			$173,175			$226,729			$223,525			$197,453

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

24 Wells Fargo Common Stock Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification 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 were converted to Class A shares and are no longer offered by the Fund. Information for Investor Class shares reflected in the financial statements represents activity through October 23, 2015.

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, 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

Notes to financial statements Wells Fargo Common Stock Fund 25

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 income from affiliates securities 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 to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $943,201,416 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	419,969,040
Gross unrealized losses		(37,887,149	)
Net unrealized gains	$	382,081,891

26 Wells Fargo Common Stock Fund Notes to financial statements

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to net operating losses. At September 31, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Accumulated net investment loss	Accumulated net realized gains on investments
$3,746,611	$(3,746,611)

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 Wells Fargo Common Stock Fund 27

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	120,850,917	$	0	$	0	$	120,850,917
Consumer staples		25,617,929		0		0		25,617,929
Energy		79,273,155		0		0		79,273,155
Financials		237,943,643		0		0		237,943,643
Health care		175,770,178		0		0		175,770,178
Industrials		236,878,570		0		0		236,878,570
Information technology		197,119,518		0		0		197,119,518
Materials		86,115,470		0		0		86,115,470
Real estate		52,608,066		0		0		52,608,066
Exchange-traded funds		26,508,774		0		0		26,508,774
Short-term investments
Investment companies		13,029,319		0		0		13,029,319
Investments measured at net asset value*								73,567,768
Total assets	$	1,251,715,539	$	0	$	0	$	1,325,283,307

* 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 $73,567,768 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 September 30, 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 year ended September 30, 2017, the management fee was equivalent to an annual rate of 0.76% 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	%
Class R6		0.03
Administrator Class, Institutional Class		0.13

28 Wells Fargo Common Stock Fund Notes to financial statements

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through 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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street’), the Fund’s custodian, reimbursed the Fund $32,093 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 $5,736 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $3,787 from the sale of Class A shares and $10 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A and Class B for the year ended September 30, 2017.

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $430,459,576 and $598,504,030, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

Notes to financial statements Wells Fargo Common Stock Fund 29

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended September 30, 2017 and September 30, 2016 were as follows:

	Year ended September 30
	2017		2016
Ordinary income	$	8,270,040	$	0
Long-term capital gain		38,153,948		152,151,480

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$17,677,628	$99,158,125	$382,081,891

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.

30 Wells Fargo Common Stock Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Common Stock Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Common Stock Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

Other information (unaudited) Wells Fargo Common Stock Fund 31

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 91.80% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 852 of the Internal Revenue Code, $38,153,948 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $7,633,359 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended September 30, 2017, $8,270,040 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

32 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 152 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 investment 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 led 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 Forté 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.	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 33

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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

34 Wells Fargo Common Stock Fund Other information (unaudited)

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 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.

Other information (unaudited) Wells Fargo Common Stock Fund 35

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Common Stock Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

36 Wells Fargo Common Stock Fund Other information (unaudited)

Fund performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2016. In certain cases, the Board also considered more current results for various time periods ended March 31, 2017. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was lower than the average performance of the Universe for the one-, three- and five-year periods ended December 31, 2016, and higher than the average performance of the Universe for the ten-year period ended December 31, 2016. However, the Board noted that the performance ranking of the Fund in the Universe had improved from the prior quarter-end for the one-, three- and five-year periods ended March 31, 2017. The Board also noted that the performance of the Fund was lower than its benchmark, the Russell 2500^TM Index, for the one-, three- and five-year periods ended December 31, 2016, and higher than the index for the ten-year period ended December 31, 2016.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

Other information (unaudited) Wells Fargo Common Stock Fund 37

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

38 Wells Fargo 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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306435 11-17 A229/AR229 09-17

Annual Report

September 30, 2017

Wells Fargo Discovery 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	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	23
Report of independent registered public accounting firm	28
Other information	29
List of abbreviations	36

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Discovery Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Discovery Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Discovery Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 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

Michale T. Smith, CFA^®

Christopher J. Warner, CFA^®

Average annual total returns (%) as of September 30, 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		16.31		11.63		7.71		23.42		12.96		8.35		1.20		1.20
Class C (WDSCX)	7-31-2007		21.51		12.11		7.53		22.51		12.11		7.53		1.95		1.95
Class R6 (WFDRX)	6-28-2013		–		–		–		23.98		13.44		8.78		0.77		0.77
Administrator Class (WFDDX)	4-8-2005		–		–		–		23.52		13.08		8.48		1.12		1.12
Institutional Class (WFDSX)	8-31-2006		–		–		–		23.88		13.37		8.75		0.87		0.87
Russell 2500TM Growth Index4	–		–		–		–		20.07		14.46		8.72		–		–

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

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

For Class A shares, the maximum front-end sales charge is 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 7.

Performance highlights (unaudited) Wells Fargo Discovery Fund 7

Growth of $10,000 investment as of September 30, 2017⁵

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.

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 chart compares the performance of Class A shares for the most recent ten years with the Russell 2500^™ Growth Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

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

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

8 Wells Fargo Discovery Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Russell 2500^TM Growth Index, for the 12-month period that ended September 30, 2017.

∎ Stock selection in the information technology (IT) and health care sectors contributed to performance.

∎ Stock selection in the industrials sector detracted from performance.

Over the 12-month period, the Russell 2500^TM Growth Index experienced robust gains; rising optimism for synchronized global growth and expectations for higher interest rates drove the strong returns. Market leadership during the period primarily favored growth-oriented sectors within the benchmark index, which proved beneficial to our positioning.

Ten largest holdings (%) as of September 30, 20176
Waste Connections Incorporated	3.05
Take-Two Interactive Software Incorporated	2.80
The Brink’s Company	2.23
WEX Incorporated	2.01
Teradyne Incorporated	2.00
BWX Technologies Incorporated	1.99
Vail Resorts Incorporated	1.96
Bright Horizons Family Solutions Incorporated	1.84
Allegion plc	1.83
John Bean Technologies Corporation	1.79

Stock selection benefited the Fund’s relative performance, especially within IT and also within health care.

Within the IT sector, video-game developer and publisher Take-Two Interactive Software, Incorporated, delivered a notable contribution to the Fund’s outperformance. Like many video-game software firms, Take-Two has benefited from rising digital downloads and in-game monetization opportunities. These revenue streams, which tended to carry significantly higher profit margins, increased gross margins meaningfully year over year and helped earnings grow well above the consensus estimate. Also within the IT sector, Fund holding Universal Display Corporation provided strong returns. Demand for the company’s

materials used in the manufacture of organic light-emitting diode (OLED) displays for smartphones continued to surge. OLED displays are being incorporated into an increasing number of new phone models as they are lighter and cheaper and offer more flexibility and power efficiency than legacy phone-display screens. This strong demand led to financial results that were better than the consensus expectations. We continued to maintain a position in Universal Display as of the end of the reporting period and to closely monitor its valuation.

Within the health care sector, stock selection among health care providers contributed to returns—especially VCA Incorporated, which manages animal hospitals and provides pet-care services. VCA agreed to be acquired by Mars, Incorporated, early in 2017 at a substantial premium, which validated our investment thesis. Consistent with our discipline, we exited the position in VCA following the acquisition as shares approached our internal valuation target.

The Fund’s performance was hindered by stock selection in the industrials sector.

Among the Fund’s industrials holdings, exposure to ultralow-cost airline Spirit Airlines, Incorporated, detracted from the Fund’s performance. Our investment thesis for investing in Spirit was predicated on our expectation that the company’s addition of capacity in new markets would allow for market-share gains. We also thought that Spirit could raise prices due to its low-cost advantage and the pricing umbrella that resulted from industry consolidation. Spirit Airlines successfully improved the amount of revenue generated per passenger; however, the industry’s pricing backdrop recently came under more pressure than we expected. We continued to retain a position in Spirit Airlines at the end of the reporting period and to closely monitor the company’s fundamentals.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Discovery Fund 9

Sector distribution as of September 30, 2017⁷

We are cautious regarding the broad economic environment but confident in the Fund’s positioning.

As we progress toward 2018, we believe the market backdrop remains mostly constructive, but we have a modestly higher level of caution. For the time being, inflation expectations have overcome deflationary fears. Credit markets have been calm, and capital has been flowing freely at low cost. Weaknesses in areas such as automobiles and mall-based retailers have tended to be offset by strength in domestic industries such as housing, travel and leisure, e-commerce, and digital advertising. In our view, economic indicators likely point to an elongated business cycle marked by steady, if unspectacular, earnings

growth and modestly higher interest rates. The U.S. economy seems poised to potentially continue to expand—but at a more sluggish rate than many people would like to see.

Despite recent improvements, global growth remains below the long-term trend. Our base view is that the economic recovery, which is elongated, likely should continue at a muted pace. Value is created through scarcity, and we seek to invest in companies that have a scarce attribute in the investing world: organic growth. We seek companies that have been benefiting from change—companies with innovations that have been disrupting industries, which in turn has allowed these companies to take market share. The businesses we seek in our assessment have been growing naturally, which means their success has been less reliant on changes in economic growth or in government policies. We seek companies within the stock market that have developed self-sufficiency—a valuable-but-rare trait in a world in which many companies have tended to wait for help from Congress, regulators, or the U.S. Federal Reserve to stimulate their growth.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,107.16	$	6.41		1.21	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.98	$	6.15		1.21	%
Class C
Actual	$	1,000.00	$	1,102.97	$	10.35		1.96	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.22	$	9.92		1.96	%
Class R6
Actual	$	1,000.00	$	1,109.75	$	4.15		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.13	$	3.98		0.78	%
Administrator Class
Actual	$	1,000.00	$	1,107.69	$	5.99		1.13	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.38	$	5.74		1.13	%
Institutional Class
Actual	$	1,000.00	$	1,109.21	$	4.67		0.88	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.64	$	4.48		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—September 30, 2017 Wells Fargo Discovery Fund 11

Security name	Shares		Value
Common Stocks: 96.93%
Consumer Discretionary: 12.79%
Diversified Consumer Services: 3.12%
Adtalem Global Education Incorporated		889,500	$	31,888,575
Bright Horizons Family Solutions Incorporated †		533,007		45,950,533
				77,839,108
Hotels, Restaurants & Leisure: 6.77%
Dave & Buster’s Entertainment Incorporated †		455,594		23,909,573
Hilton Grand Vacations Incorporated †		909,100		35,118,533
Six Flags Entertainment Corporation «		603,740		36,791,916
Vail Resorts Incorporated		214,114		48,843,686
Wingstop Incorporated «		725,225		24,113,731
				168,777,439
Media: 1.24%
Cinemark Holdings Incorporated		851,805		30,843,859
Specialty Retail: 1.66%
Burlington Stores Incorporated †		432,565		41,292,655
Consumer Staples: 2.10%
Beverages: 2.10%
Constellation Brands Incorporated Class A		136,157		27,156,514
National Beverage Corporation «		202,100		25,070,505
				52,227,019
Energy: 0.92%
Oil, Gas & Consumable Fuels: 0.92%
Diamondback Energy Incorporated †		233,865		22,909,415
Financials: 3.48%
Capital Markets: 1.29%
Raymond James Financial Incorporated		381,945		32,209,422
Consumer Finance: 1.32%
SLM Corporation †		2,852,700		32,720,469
Thrifts & Mortgage Finance: 0.87%
Radian Group Incorporated		1,161,800		21,714,042
Health Care: 16.47%
Biotechnology: 4.47%
Array BioPharma Incorporated †		1,272,479		15,651,492
Bioverativ Incorporated †		606,000		34,584,420
bluebird bio Incorporated †«		92,400		12,691,140
Exelixis Incorporated †		848,238		20,552,807
Ignyta Incorporated †		559,000		6,903,650

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

12 Wells Fargo Discovery Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Biotechnology (continued)
Puma Biotechnology Incorporated †		19,100	$	2,284,298
Tesaro Incorporated †«		144,100		18,603,310
				111,271,117
Health Care Equipment & Supplies: 8.21%
ABIOMED Incorporated †		170,700		28,780,020
Cantel Medical Corporation		331,913		31,256,247
Glaukos Corporation †«		518,200		17,100,600
Hill-Rom Holdings Incorporated		401,770		29,730,980
Hologic Incorporated †		779,800		28,610,862
ICU Medical Incorporated †		193,461		35,954,727
Insulet Corporation †		467,795		25,766,149
iRhythm Technologies Incorporated †		143,100		7,424,028
				204,623,613
Health Care Providers & Services: 2.94%
Amedisys Incorporated †		689,052		38,559,350
Tivity Health Incorporated †		848,869		34,633,855
				73,193,205
Life Sciences Tools & Services: 0.49%
Bio-Rad Laboratories Incorporated Class A †		55,200		12,266,544
Pharmaceuticals: 0.36%
MyoKardia Incorporated †		212,245		9,094,698
Industrials: 22.83%
Aerospace & Defense: 4.50%
Aerojet Rocketdyne Holdings †		675,100		23,635,251
BWX Technologies Incorporated		885,400		49,600,108
Mercury Computer Systems Incorporated †		751,100		38,967,068
				112,202,427
Airlines: 0.86%
Spirit Airlines Incorporated †		644,496		21,532,611
Building Products: 4.58%
A.O. Smith Corporation		590,200		35,075,586
Allegion plc		527,053		45,574,273
Masonite International Corporation †		481,660		33,330,872
				113,980,731
Commercial Services & Supplies: 5.39%
Aqua Metals Incorporated †«		389,400		2,667,390
The Brink’s Company		659,300		55,546,025
Waste Connections Incorporated		1,086,729		76,027,561
				134,240,976

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

Portfolio of investments—September 30, 2017 Wells Fargo Discovery Fund 13

Security name	Shares		Value
Machinery: 2.99%
Colfax Corporation †		717,600	$	29,880,864
John Bean Technologies Corporation		440,901		44,575,091
				74,455,955
Professional Services: 1.77%
TransUnion†		931,150		44,006,149
Trading Companies & Distributors: 2.74%
Siteone Landscape Supply Incorporated †		605,143		35,158,808
Univar Incorporated †		1,147,000		33,182,710
				68,341,518
Information Technology: 34.40%
Electronic Equipment, Instruments & Components: 5.23%
Littelfuse Incorporated		206,624		40,473,509
National Instruments Corporation		540,900		22,809,753
Universal Display Corporation		324,735		41,842,105
Zebra Technologies Corporation Class A †		232,900		25,288,282
				130,413,649
Internet Software & Services: 6.01%
2U Incorporated †		274,413		15,378,105
Box Incorporated Class A †		2,051,100		39,627,252
Envestnet Incorporated †		426,725		21,762,975
MercadoLibre Incorporated		151,000		39,098,430
Yandex NV Class A †		1,031,222		33,978,764
				149,845,526
IT Services: 10.33%
Acxiom Corporation †		1,117,809		27,542,814
Black Knight Financial Services Incorporated Class A †		626,719		26,980,253
EPAM Systems Incorporated †		416,879		36,656,170
Euronet Worldwide Incorporated †		389,972		36,965,446
Gartner Incorporated †		297,600		37,024,416
Total System Services Incorporated		643,500		42,149,250
WEX Incorporated †		447,100		50,173,562
				257,491,911
Semiconductors & Semiconductor Equipment: 3.06%
Advanced Micro Devices Incorporated †«		2,068,900		26,378,475
Teradyne Incorporated		1,333,500		49,726,215
				76,104,690
Software: 8.50%
Ellie Mae Incorporated †		269,400		22,125,822
Guidewire Software Incorporated †		260,204		20,259,483
Proofpoint Incorporated †		335,844		29,292,314
PTC Incorporated †		575,400		32,383,512

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

14 Wells Fargo Discovery Fund Portfolio of investments—September 30, 2017

Security name				Shares		Value
Software (continued)
Take-Two Interactive Software Incorporated †					682,000	$	69,720,860
Ultimate Software Group Incorporated †					200,300		37,976,880
							211,758,871
Technology Hardware, Storage & Peripherals: 1.27%
NCR Corporation †					843,900		31,663,128
Materials: 3.94%
Chemicals: 0.95%
Albemarle Corporation					174,700		23,813,357
Construction Materials: 1.21%
Vulcan Materials Company					251,700		30,103,320
Containers & Packaging: 1.78%
Berry Plastics Group Incorporated †					782,733		44,341,825
Total Common Stocks (Cost $1,871,693,838)							2,415,279,249
	Yield
Short-Term Investments: 8.10%
Investment Companies: 8.10%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25	%		138,258,417		138,272,243
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92			63,484,377		63,484,377
Total Short-Term Investments (Cost $201,753,632)							201,756,620

Total investments in securities (Cost $2,073,447,470)	105.03	%		2,617,035,869
Other assets and liabilities, net	(5.03	)		(125,333,181	)
Total net assets	100.00	%	$	2,491,702,688

† 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 company purchased with cash collateral received from securities on loan.

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

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		53,359,685		627,755,886		542,857,154		138,258,417	$	2,330	$	2,988	$	1,162,143	$	138,272,243
Wells Fargo Government Money Market Fund Select Class		24,767,941		917,563,811		878,847,375		63,484,377		0		0		246,691		63,484,377
									$	2,330	$	2,988	$	1,408,834	$	201,756,620		8.10	%

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

Statement of assets and liabilities—September 30, 2017 Wells Fargo Discovery Fund 15

Assets
Investments in unaffiliated securities (including $134,885,890 of securities loaned), at value (cost $1,871,693,838)	$	2,415,279,249
Investments in affiliated securities, at value (cost $201,753,632)		201,756,620
Receivable for investments sold		16,398,555
Receivable for Fund shares sold		2,320,325
Receivable for dividends		291,572
Receivable for securities lending income		50,269
Total assets		2,636,096,590
Liabilities
Payable upon receipt of securities loaned		138,266,925
Payable for investments purchased		2,284,298
Management fee payable		1,511,485
Payable for Fund shares redeemed		1,476,015
Administration fees payable		284,786
Distribution fee payable		25,215
Trustees’ fees and expenses payable		502
Accrued expenses and other liabilities		544,676
Total liabilities		144,393,902
Total net assets	$	2,491,702,688
NET ASSETS CONSIST OF
Paid-in capital	$	1,573,416,369
Accumulated net investment loss		(396	)
Accumulated net realized gains on investments		374,698,316
Net unrealized gains on investments		543,588,399
Total net assets	$	2,491,702,688
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	607,318,047
Shares outstanding – Class A1		16,652,280
Net asset value per share – Class A		$36.47
Maximum offering price per share – Class A2		$38.69
Net assets – Class C	$	40,070,212
Shares outstanding – Class C1		1,214,553
Net asset value per share – Class C		$32.99
Net assets – Class R6	$	351,268,451
Shares outstanding – Class R61		9,022,511
Net asset value per share – Class R6		$38.93
Net assets – Administrator Class	$	335,897,997
Shares outstanding – Administrator Class1		8,970,788
Net asset value per share – Administrator Class		$37.44
Net assets – Institutional Class	$	1,157,147,981
Shares outstanding – Institutional Class1		29,827,659
Net asset value per share – Institutional Class		$38.79

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.

16 Wells Fargo Discovery Fund Statement of operations—year ended September 30, 2017

Investment income
Dividends (net of foreign withholding taxes of $85,780)	$	11,432,445
Securities lending income from affiliates, net		1,162,143
Income from affiliated securities		246,691
Total investment income		12,841,279
Expenses
Management fee		18,022,137
Administration fees
Class A		1,259,286
Class C		90,232
Class R6		92,299
Administrator Class		442,987
Institutional Class		1,552,484
Shareholder servicing fees
Class A		1,499,150
Class C		107,419
Administrator Class		850,759
Distribution fee
Class C		322,257
Custody and accounting fees		150,694
Professional fees		43,276
Registration fees		213,209
Shareholder report expenses		193,284
Trustees’ fees and expenses		21,541
Other fees and expenses		71,769
Total expenses		24,932,783
Less: Fee waivers and/or expense reimbursements		(125	)
Net expenses		24,932,658
Net investment loss		(12,091,379	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		442,261,971
Affiliated securities		2,330
Net realized gains on investments		442,264,301
Net change in unrealized gains (losses) on:
Unaffiliated securities		90,990,128
Affiiliated securities		2,988
Net change in unrealized gains (losses) on investments		90,993,116
Net realized and unrealized gains (losses) on investments		533,257,417
Net increase in net assets resulting from operations	$	521,166,038

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

Statement of changes in net assets Wells Fargo Discovery Fund 17

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment loss				$	(12,091,379	)				$	(13,341,712	)
Net realized gains (losses) on investments					442,264,301						(6,021,855	)
Net change in unrealized gains (losses) on investments					90,993,116						207,908,464
Net increase in net assets resulting from operations					521,166,038						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	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,274,807			41,940,957			18,576,523			573,833,981
Class C		48,882			1,447,999			85,248			2,195,640
Class R6		1,956,366			69,699,870			2,705,304			81,981,174
Administrator Class		1,012,912			34,218,485			1,929,217			57,133,826
Institutional Class		5,741,288			198,618,853			5,696,148			169,010,558
Investor Class		N/A			N/A			55,579	1		1,728,387	1
					345,926,164						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		(6,316,847	)		(202,308,530	)		(9,136,801	)		(255,432,871	)
Class C		(666,827	)		(19,445,166	)		(820,726	)		(21,433,438	)
Class R6		(2,489,101	)		(84,079,620	)		(2,598,689	)		(77,229,246	)
Administrator Class		(5,246,628	)		(170,695,467	)		(8,985,182	)		(255,827,949	)
Institutional Class		(17,883,060	)		(606,158,168	)		(12,826,340	)		(384,667,531	)
Investor Class		N/A			N/A			(17,797,151	)1		(549,387,039	)1
					(1,082,686,951	)					(1,543,978,074	)
Net decrease in net assets resulting from capital share transactions					(704,639,190	)					(405,233,226	)
Total decrease in net assets					(216,843,188	)					(474,836,750	)
Net assets
Beginning of period					2,708,545,876						3,183,382,626
End of period				$	2,491,702,688					$	2,708,545,876
Accumulated net investment loss				$	(396	)				$	(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.

18 Wells Fargo Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$29.94			$30.48			$32.35			$33.50			$26.89
Net investment loss		(0.23	)		(0.18	)1		(0.24	)		(0.30	)		(0.08	)1
Net realized and unrealized gains (losses) on investments		7.17			2.23			0.96			1.36			8.14
Total from investment operations		6.94			2.05			0.72			1.06			8.06
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)
Net asset value, end of period		$36.47			$29.94			$30.48			$32.35			$33.50
Total return2		23.42	%		7.33	%		2.09	%		3.15	%		31.86	%
Ratios to average net assets (annualized)
Gross expenses		1.21	%		1.20	%		1.23	%		1.25	%		1.27	%
Net expenses		1.21	%		1.20	%		1.21	%		1.22	%		1.22	%
Net investment loss		(0.70	)%		(0.64	)%		(0.64	)%		(0.95	)%		(0.29	)%
Supplemental data
Portfolio turnover rate		73	%		78	%		87	%		84	%		86	%
Net assets, end of period (000s omitted)		$607,318			$641,786			$294,661			$335,221			$239,506

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Discovery Fund 19

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$27.32			$28.24			$30.37			$31.81			$25.79
Net investment loss		(0.42	)1		(0.37	)1		(0.43	)1		(0.35	)		(0.30	)1
Net realized and unrealized gains (losses) on investments		6.50			2.04			0.89			1.12			7.77
Total from investment operations		6.08			1.67			0.46			0.77			7.47
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)
Net asset value, end of period		$32.99			$27.32			$28.24			$30.37			$31.81
Total return2		22.51	%		6.51	%		1.35	%		2.33	%		30.89	%
Ratios to average net assets (annualized)
Gross expenses		1.96	%		1.95	%		1.98	%		2.00	%		2.02	%
Net expenses		1.96	%		1.95	%		1.96	%		1.97	%		1.97	%
Net investment loss		(1.45	)%		(1.41	)%		(1.39	)%		(1.70	)%		(1.08	)%
Supplemental data
Portfolio turnover rate		73	%		78	%		87	%		84	%		86	%
Net assets, end of period (000s omitted)		$40,070			$49,538			$66,772			$84,585			$48,768

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

20 Wells Fargo Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS R6	2017			2016			2015			2014			20131
Net asset value, beginning of period		$31.80			$32.08			$33.78			$34.73			$31.03
Net investment income (loss)		(0.08	)		(0.07	)		(0.07	)		(0.17	)		0.02	2
Net realized and unrealized gains (losses) on investments		7.62			2.38			0.96			1.43			3.68
Total from investment operations		7.54			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		$38.93			$31.80			$32.08			$33.78			$34.73
Total return3		23.98	%		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)		(0.27	)%		(0.22	)%		(0.21	)%		(0.45	)%		0.30	%
Supplemental data
Portfolio turnover rate		73	%		78	%		87	%		84	%		86	%
Net assets, end of period (000s omitted)		$351,268			$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 21

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$30.70			$31.17			$32.99			$34.08			$27.30
Net investment loss		(0.20	)1		(0.17	)1		(0.20	)		(0.27	)1		(0.04	)
Net realized and unrealized gains (losses) on investments		7.35			2.29			0.97			1.39			8.27
Total from investment operations		7.15			2.12			0.77			1.12			8.23
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)
Net asset value, end of period		$37.44			$30.70			$31.17			$32.99			$34.08
Total return		23.52	%		7.40	%		2.24	%		3.25	%		32.01	%
Ratios to average net assets (annualized)
Gross expenses		1.13	%		1.12	%		1.09	%		1.08	%		1.10	%
Net expenses		1.13	%		1.12	%		1.09	%		1.08	%		1.10	%
Net investment loss		(0.62	)%		(0.58	)%		(0.52	)%		(0.81	)%		(0.13	)%
Supplemental data
Portfolio turnover rate		73	%		78	%		87	%		84	%		86	%
Net assets, end of period (000s omitted)		$335,898			$400,997			$575,568			$687,537			$648,228

¹  Calculated based upon average shares outstanding

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

22 Wells Fargo Discovery Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$31.72			$32.04			$33.76			$34.74			$27.73
Net investment income (loss)		(0.13	)1		(0.10	)		(0.09	)		(0.20	)		0.01
Net realized and unrealized gains (losses) on investments		7.61			2.37			0.96			1.43			8.45
Total from investment operations		7.48			2.27			0.87			1.23			8.46
Distributions to shareholders from
Net realized gains		(0.41	)		(2.59	)		(2.59	)		(2.21	)		(1.45	)
Net asset value, end of period		$38.79			$31.72			$32.04			$33.76			$34.74
Total return		23.88	%		7.68	%		2.47	%		3.51	%		32.36	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.87	%		0.82	%		0.82	%		0.84	%
Net expenses		0.88	%		0.87	%		0.82	%��		0.82	%		0.84	%
Net investment income (loss)		(0.37	)%		(0.32	)%		(0.26	)%		(0.54	)%		0.11	%
Supplemental data
Portfolio turnover rate		73	%		78	%		87	%		84	%		86	%
Net assets, end of period (000s omitted)		$1,157,148			$1,316,107			$1,436,125			$1,396,603			$988,615

¹  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Discovery Fund 23

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification 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 were converted to Class A shares and are no longer offered by the Fund. Information for Investor Class shares reflected in the financial statements represents activity through October 23, 2015.

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, 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

24 Wells Fargo Discovery Fund Notes to financial statements

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 from affiliates (net of fees and rebates) 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 to 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 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, 2017, the aggregate cost of all investments for federal income tax purposes was $2,083,400,575 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	572,781,320
Gross unrealized losses		(39,146,026	)
Net unrealized gains	$	533,635,294

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to net operating losses and passive foreign investment companies. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Accumulated net investment loss	Accumulated net realized gains on investments
$21,265,855	$(21,265,855)

Notes to financial statements Wells Fargo Discovery Fund 25

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 September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	318,753,061	$	0	$	0	$	318,753,061
Consumer staples		52,227,019		0		0		52,227,019
Energy		22,909,415		0		0		22,909,415
Financials		86,643,933		0		0		86,643,933
Health care		410,449,177		0		0		410,449,177
Industrials		568,760,367		0		0		568,760,367
Information technology		857,277,775		0		0		857,277,775
Materials		98,258,502		0		0		98,258,502
Short-term investments
Investment companies		63,484,377		0		0		63,484,377
Investments measured at net asset value*								138,272,243
Total assets	$	2,478,763,626	$	0	$	0	$	2,617,035,869

* 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 $138,272,243 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 September 30, 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

26 Wells Fargo Discovery Fund Notes to financial statements

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 year ended September 30, 2017, the management fee was equivalent to an annual rate of 0.73% 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 0.35% 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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 on the Statement of Operations. In addition, Funds Management was also reimbursed $31,004 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $5,901 from the sale of Class A shares and $52 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A for the year ended September 30, 2017.

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.

Notes to financial statements Wells Fargo Discovery Fund 27

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $1,794,179,236 and $2,604,950,314, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $33,370,036 and $258,148,421 of long-term capital gain for the years ended September 30, 2017 and September 30,2016, respectively.

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$60,678,879	$323,972,542	$533,635,294

8. 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.

9. INDEMNIFICATION

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

28 Wells Fargo Discovery Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Discovery Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Discovery Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

Other information (unaudited) Wells Fargo Discovery Fund 29

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $33,370,036 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

30 Wells Fargo Discovery 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 152 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 investment 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 led 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 Forté 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.	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 Discovery Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

32 Wells Fargo Discovery Fund Other information (unaudited)

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 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.

Other information (unaudited) Wells Fargo Discovery Fund 33

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Discovery Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

34 Wells Fargo Discovery Fund Other information (unaudited)

Fund performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2016. In certain cases, the Board also considered more current results for various time periods ended March 31, 2017. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for the one-, five- and ten-year periods ended December 31, 2016, but lower than the average performance of the Universe for the three-year period ended December 31, 2016. However, the Board noted that the performance ranking of the Fund in the Universe had improved from the prior quarter-end for the one-, three and five-year periods ended March 31, 2017. The Board also noted that the performance of the Fund was lower than its benchmark, the Russell 2500^TM Growth Index, for the one-, three- and five-year periods ended December 31, 2016, but higher than its index for the ten-year period ended December 31, 2016.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance. The Board also noted that the Fund experienced a portfolio manager change during the third quarter of 2016.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or equal to the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than, equal to or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

Other information (unaudited) Wells Fargo Discovery Fund 35

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

36 Wells Fargo Discovery 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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306436 11-17 A230/AR230 09-17

Annual Report

September 30, 2017

Wells Fargo Enterprise 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	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	23
Report of independent registered public accounting firm	28
Other information	29
List of abbreviations	36

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Enterprise Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Enterprise Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Enterprise Fund Letter to shareholders (unaudited)

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it

can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 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

Michale T. Smith, CFA^®

Christopher J. Warner, CFA^®

Average annual total returns (%) as of September 30, 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		14.56		11.35		5.79		21.55		12.68		6.42		1.26		1.18
Class C (WENCX)	3-31-2008		19.66		11.83		5.63		20.66		11.83		5.63		2.01		1.93
Class R6 (WENRX)	10-31-2014		–		–		–		22.01		13.08		6.85		0.83		0.80
Administrator Class (SEPKX)	8-30-2002		–		–		–		21.66		12.79		6.58		1.18		1.10
Institutional Class (WFEIX)	6-30-2003		–		–		–		21.97		13.05		6.83		0.93		0.85
Russell Midcap® Growth Index4	–		–		–		–		17.82		14.18		8.20		–		–

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

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

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

Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. 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 7.

Performance highlights (unaudited) Wells Fargo Enterprise Fund 7

Growth of $10,000 investment as of September 30, 2017⁵

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

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

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

8 Wells Fargo Enterprise Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Russell Midcap^® Growth Index, for the 12-month period that ended September 30, 2017.

∎ Stock selection in the consumer discretionary sector and positioning within the information technology (IT) sector contributed to performance.

∎ Stock selection within the industrials sector detracted from performance.

Over the 12-month period, the Russell Midcap^® Growth Index experienced robust gains; rising optimism for synchronized global growth and expectations for higher interest rates drove the strong returns. Market leadership during the period primarily favored growth-oriented sectors within the benchmark index, which proved beneficial to our positioning.

Ten largest holdings (%) as of September 30, 20176
Waste Connections Incorporated	3.11
Total System Services Incorporated	2.08
Delphi Automotive plc	2.07
WEX Incorporated	1.98
BWX Technologies Incorporated	1.95
Teradyne Incorporated	1.94
Fidelity National Information Services Incorporated	1.92
Vail Resorts Incorporated	1.90
Rockwell Automation Incorporated	1.89
TransUnion	1.81

The Fund benefited from stock selection in the consumer discretionary sector and positioning within IT.

Within the consumer discretionary sector, longtime holding Vail Resorts, Incorporated, displayed particular strength. The ski-resort operator continued to benefit from its acquisition strategy and data-driven marketing approach. Vail has been heavily focused on guest experiences and on data metrics that allow the company to enhance and personalize visitor experiences. This approach has led to rising guest volumes and expanding profit margins. We believe Vail’s improved pricing potential at newly acquired resorts may be a catalyst for continued strong returns in the future. Also within the

leisure industry, shares of Royal Caribbean Cruises Limited outperformed as the cruise-ship operator reported better-than-expected financial results driven by strong industry pricing trends and improved demand. The company also raised its earnings guidance going forward. The rise in Royal Caribbean’s valuation, along with new uncertainty due to the 2017 hurricanes, triggered our sell discipline, and we eliminated the position from the Fund.

Sector distribution as of September 30, 2017⁷

Within the IT sector, the Fund’s position in Universal Display Corporation provided strong returns. Demand for the company’s materials used in the manufacture of organic light-emitting diode (OLED) displays for smartphones continued to surge. OLED displays are being incorporated into an increasing number of new phone models as they are lighter and cheaper and offer more flexibility and power efficiency than legacy phone-display screens. This strong demand led to financial results that exceeded consensus expectations. We continued to maintain a position in Universal Display as of the end of the reporting period and to closely monitor its valuation.

The Fund’s performance was hindered by stock selection in the industrials sector.

The Fund’s exposure to Acuity Brands, Incorporated, detracted from performance. Acuity Brands, which provides lighting and building-management solutions, has a strong position in commercial LED solutions. However, weak demand in short-cycle lighting projects caused the company to report disappointing results that led to a reduction in its share price. After reevaluating our investment thesis, we exited the position in favor of investment prospects in which we had higher conviction.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Enterprise Fund 9

We are cautious regarding the broad economic environment but confident in the Fund’s positioning.

As we progress toward 2018, we believe the market backdrop remains mostly constructive, but we have a modestly higher level of caution. For the time being, inflation expectations have overcome deflationary fears. Credit markets have been calm, and capital has been flowing freely at low cost. Weaknesses in areas such as automobiles and mall-based retailers have tended to be offset by strength in domestic industries such as housing, travel and leisure, e-commerce, and digital advertising. In our view, economic indicators likely point to an elongated business cycle marked by steady, if unspectacular, earnings growth and modestly higher interest rates. The U.S. economy seems poised to potentially continue to expand—but at a more sluggish rate than many people would like to see.

Despite recent improvements, global growth remains below the long-term trend. Our base view is that the economic recovery, which is elongated, likely should continue at a muted pace. Value is created through scarcity, and we seek to invest in companies that have a scarce attribute in the investing world: organic growth. We seek companies that have been benefiting from change—companies with innovations that have been disrupting industries, which in turn has allowed these companies to take market share. The businesses we seek in our assessment have been growing naturally, which means their success has been less reliant on changes in economic growth or in government policies. We seek companies within the stock market that have developed self-sufficiency—a valuable-but-rare trait in a world in which many companies have tended to wait for help from Congress, regulators, or the U.S. Federal Reserve to stimulate their growth.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,110.10	$	6.24		1.18	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.15	$	5.97		1.18	%
Class C
Actual	$	1,000.00	$	1,105.94	$	10.19		1.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.39	$	9.75		1.93	%
Class R6
Actual	$	1,000.00	$	1,112.11	$	4.24		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.06	$	4.05		0.80	%
Administrator Class
Actual	$	1,000.00	$	1,110.58	$	5.82		1.10	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.55	$	5.57		1.10	%
Institutional Class
Actual	$	1,000.00	$	1,111.86	$	4.50		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.81	$	4.31		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—September 30, 2017 Wells Fargo Enterprise Fund 11

Security name	Shares		Value
Common Stocks: 98.81%
Consumer Discretionary: 16.77%
Auto Components: 3.31%
Delphi Automotive plc		146,385	$	14,404,284
Ferrari NV		78,000		8,617,440
				23,021,724
Diversified Consumer Services: 1.70%
Bright Horizons Family Solutions Incorporated †		136,700		11,784,907
Hotels, Restaurants & Leisure: 4.81%
Hilton Grand Vacations Incorporated †		264,400		10,213,772
Six Flags Entertainment Corporation «		164,200		10,006,348
Vail Resorts Incorporated		57,817		13,189,214
				33,409,334
Internet & Direct Marketing Retail: 1.22%
Ctrip.com International Limited ADR †		161,300		8,506,962
Media: 2.30%
Cinemark Holdings Incorporated		227,825		8,249,543
Liberty Broadband Corporation Class C †		80,900		7,709,770
				15,959,313
Specialty Retail: 3.43%
Burlington Stores Incorporated †		126,100		12,037,506
CarMax Incorporated †		155,000		11,750,550
				23,788,056
Consumer Staples: 2.55%
Beverages: 2.55%
Constellation Brands Incorporated Class A		52,600		10,491,070
Monster Beverage Corporation †		130,300		7,199,075
				17,690,145
Energy: 0.88%
Oil, Gas & Consumable Fuels: 0.88%
Diamondback Energy Incorporated †		62,700		6,142,092
Financials: 5.59%
Capital Markets: 4.24%
Intercontinental Exchange Incorporated		179,225		12,312,758
Raymond James Financial Incorporated		116,600		9,832,878
S&P Global Incorporated		46,841		7,321,717
				29,467,353
Consumer Finance: 1.35%
SLM Corporation †		816,200		9,361,814

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

12 Wells Fargo Enterprise Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Health Care: 11.95%
Biotechnology: 3.96%
Bioverativ Incorporated †		163,200	$	9,313,824
Exelixis Incorporated †		211,300		5,119,799
Incyte Corporation †		71,000		8,288,540
Tesaro Incorporated †«		36,900		4,763,790
				27,485,953
Health Care Equipment & Supplies: 7.25%
ABIOMED Incorporated †		45,600		7,688,160
Align Technology Incorporated †		21,500		4,004,805
Boston Scientific Corporation †		303,700		8,858,929
Edwards Lifesciences Corporation †		113,100		12,362,961
Hill-Rom Holdings Incorporated		107,900		7,984,600
Hologic Incorporated †		258,000		9,466,020
				50,365,475
Life Sciences Tools & Services: 0.74%
Bio-Rad Laboratories Incorporated Class A †		23,100		5,133,282
Industrials: 18.21%
Aerospace & Defense: 1.95%
BWX Technologies Incorporated		241,700		13,540,034
Airlines: 0.81%
Spirit Airlines Incorporated †		168,300		5,622,903
Building Products: 3.04%
Allegion plc		144,300		12,477,621
Masonite International Corporation †		124,769		8,634,015
				21,111,636
Commercial Services & Supplies: 4.49%
Cintas Corporation		66,500		9,594,620
Waste Connections Incorporated		308,639		21,592,384
				31,187,004
Electrical Equipment: 1.89%
Rockwell Automation Incorporated		73,700		13,134,077
Machinery: 2.91%
Colfax Corporation †		201,800		8,402,952
John Bean Technologies Corporation		116,459		11,774,005
				20,176,957
Professional Services: 1.81%
TransUnion †		265,477		12,546,443
Trading Companies & Distributors: 1.31%
Univar Incorporated †		315,200		9,118,736

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

Portfolio of investments—September 30, 2017 Wells Fargo Enterprise Fund 13

Security name	Shares		Value
Information Technology: 35.53%
Electronic Equipment, Instruments & Components: 5.08%
Littelfuse Incorporated		39,100	$	7,658,908
National Instruments Corporation		150,400		6,342,368
Universal Display Corporation		83,200		10,720,320
Zebra Technologies Corporation Class A †		97,300		10,564,834
				35,286,430
Internet Software & Services: 4.31%
Box Incorporated Class A †		516,300		9,974,916
MercadoLibre Incorporated		44,300		11,470,599
Yandex NV Class A †		257,500		8,484,625
				29,930,140
IT Services: 11.15%
Black Knight Financial Services Incorporated Class A †«		180,900		7,787,745
EPAM Systems Incorporated †		100,054		8,797,748
Euronet Worldwide Incorporated †		104,106		9,868,208
Fidelity National Information Services Incorporated		142,700		13,326,753
Gartner Incorporated †		75,900		9,442,719
Total System Services Incorporated		220,900		14,468,950
WEX Incorporated †		122,300		13,724,506
				77,416,629
Semiconductors & Semiconductor Equipment: 6.08%
Advanced Micro Devices Incorporated †«		509,900		6,501,225
Analog Devices Incorporated		144,200		12,425,714
Micron Technology Incorporated †		249,500		9,812,835
Teradyne Incorporated		361,400		13,476,606
				42,216,380
Software: 7.66%
Activision Blizzard Incorporated		115,800		7,470,258
Electronic Arts Incorporated †		63,200		7,461,392
Ellie Mae Incorporated †		75,600		6,209,028
Guidewire Software Incorporated †		11		856
Nintendo Company Limited «		254,300		11,685,085
ServiceNow Incorporated †		86,250		10,136,963
Ultimate Software Group Incorporated †		54,100		10,257,360
				53,220,942
Technology Hardware, Storage & Peripherals: 1.25%
NCR Corporation †		231,500		8,685,880
Materials: 5.59%
Chemicals: 2.35%
Albemarle Corporation		49,300		6,720,083
The Sherwin-Williams Company		26,700		9,559,668
				16,279,751

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

14 Wells Fargo Enterprise Fund Portfolio of investments—September 30, 2017

Security name				Shares		Value
Construction Materials: 1.54%
Vulcan Materials Company					89,600	$	10,716,160
Containers & Packaging: 1.70%
Berry Plastics Group Incorporated †					208,100		11,788,865
Real Estate: 1.74%
Equity REITs: 1.74%
SBA Communications Corporation †					83,700		12,056,984
Total Common Stocks (Cost $541,032,847)							686,152,361
	Yield
Short-Term Investments: 4.64%
Investment Companies: 4.64%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25	%		24,700,733		24,703,203
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92			7,539,373		7,539,373
Total Short-Term Investments (Cost $32,242,576)							32,242,576

Total investments in securities (Cost $573,275,423)	103.45	%		718,394,937
Other assets and liabilities, net	(3.45	)		(23,990,127	)
Total net assets	100.00	%	$	694,404,810

† 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 company purchased with cash collateral received from securities on loan.

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

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		1,020,000		232,343,549		208,662,816		24,700,733	$	104	$	0	$	38,987	$	24,703,203
Wells Fargo Government Money Market Fund Select Class		4,723,179		229,500,842		226,684,648		7,539,373		0		0		54,507		7,539,373
									$	104	$	0	$	93,494	$	32,242,576		4.64	%

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

Statement of assets and liabilities—September 30, 2017 Wells Fargo Enterprise Fund 15

Assets
Investments in unaffiliated securities (including $24,346,681 of securities on loan), at value (cost $541,032,847)	$	686,152,361
Investments in affiliated securities, at value (cost $32,242,576)		32,242,576
Receivable for investments sold		1,306,024
Receivable for Fund shares sold		71,990
Receivable for dividends		130,682
Receivable for securities lending income		4,357
Prepaid expenses and other assets		85,462
Total assets		719,993,452
Liabilities
Payable for Fund shares redeemed		138,710
Payable upon receipt of securities loaned		24,703,125
Management fee payable		391,123
Distribution fees payable		5,603
Administration fees payable		112,804
Accrued expenses and other liabilities		237,277
Total liabilities		25,588,642
Total net assets	$	694,404,810
NET ASSETS CONSIST OF
Paid-in capital	$	483,812,250
Accumulated net investment loss		(22,316	)
Accumulated net realized gains on investments		65,495,362
Net unrealized gains on investments		145,119,514
Total net assets	$	694,404,810
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	591,001,846
Shares outstanding – Class A1		12,111,549
Net asset value per share – Class A		$48.80
Maximum offering price per share – Class A2		$51.78
Net assets – Class C	$	8,897,667
Shares outstanding – Class C1		202,459
Net asset value per share – Class C		$43.95
Net assets – Class R6	$	35,923,416
Shares outstanding – Class R61		675,642
Net asset value per share – Class R6		$53.17
Net assets – Administrator Class	$	3,704,744
Shares outstanding – Administrator Class1		72,470
Net asset value per share – Administrator Class		$51.12
Net assets – Institutional Class	$	54,877,137
Shares outstanding – Institutional Class1		1,033,904
Net asset value per share – Institutional Class		$53.08

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.

16 Wells Fargo Enterprise Fund Statement of operations—year ended September 30, 2017

Investment income
Dividends (net of foreign withholding taxes of $33,498)	$	4,044,021
Income from affiliated securities		93,494
Total investment income		4,137,515
Expenses
Management fee		4,870,101
Administration fees
Class A		1,163,649
Class B		104	1
Class C		18,557
Class R6		9,696
Administrator Class		5,846
Institutional Class		71,138
Shareholder servicing fees
Class A		1,385,296
Class B		123	1
Class C		22,092
Administrator Class		11,242
Distribution fees
Class B		370	1
Class C		66,276
Custody and accounting fees		62,192
Professional fees		42,155
Registration fees		100,983
Shareholder report expenses		96,202
Trustees’ fees and expenses		20,990
Other fees and expenses		19,529
Total expenses		7,966,541
Less: Fee waivers and/or expense reimbursements		(483,275	)
Net expenses		7,483,266
Net investment loss		(3,345,751	)
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		81,607,520
Affiliated securities		104
Net realized gains on investments		81,607,624
Net change in unrealized gains (losses) on investments		50,265,823
Net realized and unrealized gains (losses) on investments		131,873,447
Net increase in net assets resulting from operations	$	128,527,696

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 17

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment loss				$	(3,345,751	)				$	(3,186,682	)
Net realized gains on investments					81,607,624						17,584,427
Net change in unrealized gains (losses) on investments					50,265,823						38,732,302
Net increase in net assets resulting from operations					128,527,696						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		195,089			8,516,613			4,522,822			197,186,460
Class B		0	1		0	1		1			16
Class C		13,435			531,304			23,985			869,811
Class R6		53,059			2,534,424			691,533			29,003,966
Administrator Class		24,924			1,147,821			47,307			1,846,716
Institutional Class		211,541			10,100,449			292,382			12,703,511
Investor Class		N/A			N/A			4,864	2		207,062	2
					22,830,611						241,817,542
Reinvestment of distributions
Class A		533,814			21,805,829			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		27,250			1,209,334			3,488			148,611
Administrator Class		4,560			195,026			6,238			257,327
Institutional Class		51,089			2,264,283			120,020			5,110,433
					25,880,372						47,594,210
Payment for shares redeemed
Class A		(1,542,559	)		(67,085,160	)		(1,489,094	)		(59,409,799	)
Class B		(9,343	)1		(353,582	)1		(15,187	)		(564,158	)
Class C		(62,115	)		(2,474,823	)		(47,670	)		(1,691,275	)
Class R6		(62,855	)		(2,999,473	)		(37,369	)		(1,612,164	)
Administrator Class		(64,120	)		(3,098,008	)		(27,720	)		(1,163,795	)
Institutional Class		(587,234	)		(27,287,442	)		(998,881	)		(43,244,941	)
Investor Class		N/A			N/A			(4,428,901	)2		(190,508,618	)2
					(103,298,488	)					(298,194,750	)
Net decrease in net assets resulting from capital share transactions					(54,587,505	)					(8,782,998	)
Total increase (decrease) in net assets					46,672,950						(6,250,819	)
Net assets
Beginning of period					647,731,860						653,982,679
End of period				$	694,404,810					$	647,731,860
Accumulated net investment loss				$	(22,316	)				$	(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.

18 Wells Fargo Enterprise Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$41.94			$41.90			$47.93			$49.54			$37.67
Net investment income (loss)		(0.25	)		(0.21	)1		(0.29	)		(0.43	)1		0.01	1
Net realized and unrealized gains (losses) on investments		8.94			3.61			0.18			3.00			11.86
Total from investment operations		8.69			3.40			(0.11	)		2.57			11.87
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00
Net asset value, end of period		$48.80			$41.94			$41.90			$47.93			$49.54
Total return2		21.55	%		8.63	%		(0.67	)%		5.27	%		31.55	%
Ratios to average net assets (annualized)
Gross expenses		1.26	%		1.26	%		1.29	%		1.29	%		1.30	%
Net expenses		1.18	%		1.18	%		1.18	%		1.18	%		1.18	%
Net investment income (loss)		(0.55	)%		(0.52	)%		(0.60	)%		(0.87	)%		0.01	%
Supplemental data
Portfolio turnover rate		75	%		99	%		101	%		98	%		91	%
Net assets, end of period (000s omitted)		$591,002			$542,077			$370,743			$417,971			$427,860

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Enterprise Fund 19

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$38.23			$38.75			$45.07			$47.14			$36.11
Net investment loss		(0.85	)		(0.47	)1		(0.59	)1		(0.75	)1		(0.29	)1
Net realized and unrealized gains (losses) on investments		8.40			3.31			0.19			2.86			11.32
Total from investment operations		7.55			2.84			(0.40	)		2.11			11.03
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00
Net asset value, end of period		$43.95			$38.23			$38.75			$45.07			$47.14
Total return2		20.66	%		7.80	%		(1.41	)%		4.49	%		30.55	%
Ratios to average net assets (annualized)
Gross expenses		2.01	%		2.01	%		2.04	%		2.04	%		2.05	%
Net expenses		1.93	%		1.93	%		1.93	%		1.93	%		1.93	%
Net investment loss		(1.31	)%		(1.28	)%		(1.36	)%		(1.62	)%		(0.72	)%
Supplemental data
Portfolio turnover rate		75	%		99	%		101	%		98	%		91	%
Net assets, end of period (000s omitted)		$8,898			$9,181			$9,399			$9,658			$8,483

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

20 Wells Fargo Enterprise Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS R6	2017			2016			20151
Net asset value, beginning of period		$45.37			$44.89			$52.65
Net investment loss		(0.08	)		(0.06	)2		(0.08	)
Net realized and unrealized gains (losses) on investments		9.71			3.90			(1.76	)
Total from investment operations		9.63			3.84			(1.84	)
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)
Net asset value, end of period		$53.17			$45.37			$44.89
Total return3		22.01	%		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		(0.17	)%		(0.14	)%		(0.19	)%
Supplemental data
Portfolio turnover rate		75	%		99	%		101	%
Net assets, end of period (000s omitted)		$35,923			$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 21

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$43.81			$43.58			$49.54			$51.03			$38.77
Net investment income (loss)		(0.20	)1		(0.18	)1		(0.23	)1		(0.37	)1		0.02	1
Net realized and unrealized gains (losses) on investments		9.34			3.77			0.19			3.06			12.24
Total from investment operations		9.14			3.59			(0.04	)		2.69			12.26
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00
Net asset value, end of period		$51.12			$43.81			$43.58			$49.54			$51.03
Total return		21.66	%		8.74	%		(0.46	)%		5.33	%		31.62	%
Ratios to average net assets (annualized)
Gross expenses		1.18	%		1.15	%		1.09	%		1.12	%		1.13	%
Net expenses		1.10	%		1.07	%		1.07	%		1.09	%		1.11	%
Net investment income (loss)		(0.44	)%		(0.41	)%		(0.47	)%		(0.74	)%		0.05	%
Supplemental data
Portfolio turnover rate		75	%		99	%		101	%		98	%		91	%
Net assets, end of period (000s omitted)		$3,705			$4,693			$3,542			$44,760			$10,046

¹  Calculated based upon average shares outstanding

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

22 Wells Fargo Enterprise Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$45.32			$44.87			$50.77			$52.07			$39.46
Net investment income (loss)		(0.09	)1		(0.09	)1		(0.13	)1		(0.28	)1		0.18	1
Net realized and unrealized gains (losses) on investments		9.68			3.90			0.15			3.16			12.43
Total from investment operations		9.59			3.81			0.02			2.88			12.61
Distributions to shareholders from
Net realized gains		(1.83	)		(3.36	)		(5.92	)		(4.18	)		0.00
Net asset value, end of period		$53.08			$45.32			$44.87			$50.77			$52.07
Total return		21.97	%		8.97	%		(0.32	)%		5.61	%		31.96	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.93	%		0.88	%		0.86	%		0.87	%
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income (loss)		(0.19	)%		(0.21	)%		(0.27	)%		(0.54	)%		0.41	%
Supplemental data
Portfolio turnover rate		75	%		99	%		101	%		98	%		91	%
Net assets, end of period (000s omitted)		$54,877			$61,563			$87,279			$76,790			$81,021

¹  Calculated based upon average shares outstanding

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

Notes to financial statements Wells Fargo Enterprise Fund 23

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification 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 were converted to Class A shares and are no longer offered by the Fund. Information for Investor Class shares reflected in the financial statements represents activity through October 23, 2015.

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, 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

24 Wells Fargo Enterprise Fund Notes to financial statements

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 income from affiliates securities 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 to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $574,268,891 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	152,684,074
Gross unrealized losses		(8,558,028	)
Net unrealized gains	$	144,126,046

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to corporate actions and net

Notes to financial statements Wells Fargo Enterprise Fund 25

operating losses. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Accumulated net investment loss	Accumulated net realized gains on investments
$5,524,163	$(5,524,163)

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 September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	116,470,296	$	0	$	0	$	116,470,296
Consumer staples		17,690,145		0		0		17,690,145
Energy		6,142,092		0		0		6,142,092
Financials		38,829,167		0		0		38,829,167
Health care		82,984,710		0		0		82,984,710
Industrials		126,437,790		0		0		126,437,790
Information technology		246,756,401		0		0		246,756,401
Materials		38,784,776		0		0		38,784,776
Real estate		12,056,984		0		0		12,056,984
Short-term investments
Investment companies		7,539,373		0		0		7,539,373
Investments measured at net asset value*								24,703,203
Total assets	$	693,691,734	$	0	$	0	$	718,394,937

* 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 $24,703,203 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 September 30, 2017, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

26 Wells Fargo Enterprise Fund Notes to financial statements

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 year ended September 30, 2017, the management fee was equivalent to an annual rate of 0.74% 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	%
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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $2,807 from the sale of Class A shares and $67 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A and Class B shares for the year ended September 30, 2017.

Notes to financial statements Wells Fargo Enterprise Fund 27

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $486,882,879 and $579,904,219, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $27,267,241 and $50,597,868 of long-term capital gain for the years ended September 30, 2017 and September 30, 2016, respectively.

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$10,391,604	$56,097,226	$144,126,046

8. 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.

9. INDEMNIFICATION

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

28 Wells Fargo Enterprise Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Enterprise Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Enterprise Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

Other information (unaudited) Wells Fargo Enterprise Fund 29

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $27,267,241 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

30 Wells Fargo Enterprise 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 152 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 investment 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 led 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 Forté 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.	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 Enterprise Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

32 Wells Fargo Enterprise Fund Other information (unaudited)

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 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.

Other information (unaudited) Wells Fargo Enterprise Fund 33

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Enterprise Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the investment performance results for the Fund over various time periods ended December 31, 2016. In certain cases, the Board also considered more current results for various time periods ended March 31, 2017. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc.

34 Wells Fargo Enterprise Fund Other information (unaudited)

(“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than or in range of the average performance of the Universe for the one- and ten-year periods ended December 31, 2016, but lower than the average performance of the Universe for the three- and five-year periods ended December 31, 2016. However, the Board noted that the performance ranking of the Fund in the Universe had improved from the prior quarter-end for the one- and three-year periods ended March 31, 2017. The Board also noted that the performance of the Fund was lower than its benchmark, the Russell Midcap^® Growth Index, for all periods under review ended December 31, 2016.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance. The Board also noted that the Fund experienced a portfolio manager change during the third quarter of 2016.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for all share classes except Administrator Class.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

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

Other information (unaudited) Wells Fargo Enterprise Fund 35

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

36 Wells Fargo Enterprise 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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306437 11-17 A231/AR231 09-17

Annual Report

September 30, 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	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	22
Report of independent registered public accounting firm	28
Other information	29
List of abbreviations	36

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Opportunity Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net),² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Opportunity Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Opportunity Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

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6 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

Ann M. Miletti

Christopher G. Miller, CFA^®‡

Average annual total returns (%) as of September 30, 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		9.81		11.22		5.96		16.49		12.54		6.59		1.21		1.21
Class C (WFOPX)	3-31-2008		14.62		11.70		5.80		15.62		11.70		5.80		1.96		1.96
Administrator Class (WOFDX)	8-30-2002		–		–		–		16.74		12.79		6.84		1.13		1.00
Institutional Class (WOFNX)	7-30-2010		–		–		–		17.02		13.07		7.02		0.88		0.75
Russell 3000® Index4	–		–		–		–		18.71		14.23		7.57		–		–

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

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

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

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

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Opportunity Fund 7

Growth of $10,000 investment as of September 30, 2017⁵

^‡  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 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 chart compares the performance of Class A shares for the most recent ten years with the Russell 3000^® Index . The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

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

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

* This security was not held in the Fund at the end of the reporting period.

8 Wells Fargo Opportunity Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund underperformed its benchmark, the Russell 3000^® Index, for the 12-month period that ended September 30, 2017.

∎ Stock selection in the energy and consumer discretionary sectors detracted the most from performance.

∎ Stock selection added value in the information technology (IT) and real estate sectors.

The U.S. stock market rallied and many U.S. stock market indexes hit new all-time highs during the reporting period. The Fund’s benchmark, the Russell 3000^® Index, was no exception and has risen for eight straight quarters. Market volatility has remained near historical lows, and larger-cap and growth stocks generally have outperformed smaller-cap and value stocks.

A number of factors influenced the U.S. stock market during the period. From our perspective, the outcome of the November 2016 U.S. elections has had the biggest impact in the U.S., with one political party ending up in control of the White House, the House of Representatives, and the Senate. The U.S. stock market has been on a tear since then as investors have expected businesses to benefit from the new administration’s progrowth policies of less regulation, lower taxes, and increased infrastructure and defense spending. The U.S. Federal Reserve (Fed) raised its benchmark interest rate by 0.25% three times during the reporting period, most recently to a range of 1.00% to 1.25% at its June 2017 meeting. The Fed also released a fairly detailed outline of its plans to reduce the size of its $4.6 trillion balance sheet.

Throughout all of the market and economic events that occurred during the reporting period and with the expectation of tighter U.S. monetary policy going forward, we continued to seek companies with what we view to be good business models, strong management teams, and healthy cash flows trading at attractive discounts to their private market valuations (PMVs). The PMV represents the expected price an investor likely would pay for the entire company as a stand-alone private entity.

Ten largest holdings (%) as of September 30, 20176
Alphabet Incorporated Class C	3.53
Apple Incorporated	2.92
E*TRADE Financial Corporation	2.58
EOG Resources Incorporated	2.45
Novartis AG ADR	2.39
Johnson Controls International plc	2.28
PNC Financial Services Group Incorporated	2.19
The Sherwin-Williams Company	2.17
Salesforce.com Incorporated	2.11
Oracle Corporation	2.04

Stock selection in the energy and consumer discretionary sectors hindered Fund performance.

Energy was the only sector in the Russell 3000^® Index that declined during the period. While the price of oil stabilized during the period, the expectation for a meaningful increase was tempered by the lack of decline in global oil inventories and the ability of domestic shale production to respond to price signals on short order. As a result, valuations for energy-related stocks declined considerably more than the spot price of oil. The Fund’s holdings in the energy services and exploration and production industries underperformed during the period, including Newfield Exploration Company* and Pioneer Natural Resources Company. In the consumer

discretionary sector, we have continued to see a trend in consumer preferences toward shopping online instead of in brick-and-mortar stores. The Fund’s holdings in L Brands, Incorporated; Target Corporation*; and Ralph Lauren Corporation* experienced softening in same-store sales due to this trend, which led to lower valuations for these stocks.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Opportunity Fund 9

Sector distribution as of September 30, 2017⁷

Fund performance benefited from positive stock selection in the IT and real estate sectors.

An overweight to and stock selection within the IT sector contributed to performance relative to the benchmark. The overweight proved beneficial as IT was the second-best-performing sector in the index for the period. A number of Fund holdings in the software and semiconductor industries delivered strong results. Check Point Software Technologies Limited provides enterprise security software, which has become a higher priority for organizations given the increasing frequency of reported data breaches and the damages they can cause. Red Hat, Incorporated, provides open-source software that has benefited from the ongoing shift to cloud computing.

Broadcom Limited benefited from exposure to the iPhone product cycle and the announced acquisition of Brocade Communications Systems, Incorporated. Within the real estate sector, American Tower Corporation, an operator of wireless and broadcast communication towers in the U.S., Europe, Asia, and Latin America, outperformed industry peers by a wide margin. American Tower has experienced an increase in business activity, and investors have anticipated that the company could benefit from a ramp-up in deployment of new communication technologies and protocols. Also within the real estate sector, the Fund benefited from lack of exposure to retail real estate investment trusts, which have been negatively affected by the consumer trend toward shopping online rather than in brick-and-mortar stores.

Our focus remains constant: to add value for shareholders through investment in attractively priced Fund holdings.

Our methodology includes buying stocks at a discount to their estimated PMV and selling stocks as they approach or exceed the upper end of their PMV range.

Our disciplined, bottom-up investment process leads us to be overweight or underweight certain sectors. This positioning changes over time based on macroeconomic and industry-specific factors. During the reporting period, our process led us to be overweight the IT and industrials sectors and underweight the real estate and utilities sectors. Through our disciplined investment process, we remain keenly aware of both price and enterprise values on a company-by-company basis. Our proprietary database of company acquisitions across industries, sectors, and time frames enables us to maintain a steady foundation for assessing the PMVs of companies compared with their public stock prices. We strive to take advantage of those price discrepancies for the benefit of Fund shareholders by purchasing stocks when we believe they are selling at a discount to their PMVs.

Looking ahead, interest rates, energy prices, and the policies of the U.S. government likely may be themes that influence the overall market and the relative performance of the Fund. The U.S. administration has been promoting lower taxes, increased infrastructure spending, and reduced regulations—generally, a probusiness environment. However, changes in trade agreements and the eventual winners and losers from tax and regulatory reforms remain key items to watch. The Fed has signaled more rate hikes in late 2017 and 2018 if labor markets tighten further, global economic risks remain well balanced, and inflation measures hit the Fed’s target. Volatility in commodities prices and global currencies likely may continue to drive global stock markets.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,066.06	$	6.25		1.21	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.02	$	6.11		1.21	%
Class C
Actual	$	1,000.00	$	1,062.07	$	10.11		1.96	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.26	$	9.88		1.96	%
Administrator Class
Actual	$	1,000.00	$	1,067.11	$	5.18		1.00	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.05	$	5.06		1.00	%
Institutional Class
Actual	$	1,000.00	$	1,068.39	$	3.89		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.31	$	3.80		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—September 30, 2017 Wells Fargo Opportunity Fund 11

Security name	Shares		Value
Common Stocks: 96.70%
Consumer Discretionary: 10.14%
Hotels, Restaurants & Leisure: 2.88%
Royal Caribbean Cruises Limited		131,827	$	15,626,771
Starbucks Corporation		664,377		35,683,689
				51,310,460
Internet & Direct Marketing Retail: 1.11%
Amazon.com Incorporated †		20,460		19,669,221
Media: 3.45%
Comcast Corporation Class A		830,825		31,970,146
Twenty-First Century Fox Incorporated Class B		1,138,730		29,367,847
				61,337,993
Multiline Retail: 1.77%
Dollar General Corporation		388,215		31,464,826
Specialty Retail: 0.93%
L Brands Incorporated		399,558		16,625,608
Consumer Staples: 4.04%
Food Products: 1.52%
The Hershey Company		247,185		26,985,186
Household Products: 1.22%
Church & Dwight Company Incorporated		449,415		21,774,157
Personal Products: 1.30%
The Estee Lauder Companies Incorporated Class A		214,035		23,081,534
Energy: 6.65%
Oil, Gas & Consumable Fuels: 6.65%
Concho Resources Incorporated †		212,131		27,941,895
EOG Resources Incorporated		450,487		43,580,112
Pioneer Natural Resources Company		149,060		21,992,312
RSP Permian Incorporated †		718,712		24,860,248
				118,374,567
Financials: 18.09%
Banks: 7.65%
KeyCorp		1,813,219		34,124,782
Pinnacle Financial Partners Incorporated		429,898		28,781,671
PNC Financial Services Group Incorporated		289,699		39,042,734
Webster Financial Corporation		648,391		34,072,947
				136,022,134

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

12 Wells Fargo Opportunity Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Capital Markets: 4.00%
E*TRADE Financial Corporation †		1,052,980	$	45,920,458
Intercontinental Exchange Incorporated		368,431		25,311,210
				71,231,668
Insurance: 6.44%
Aon plc		218,657		31,945,788
Chubb Limited		246,446		35,130,877
The Progressive Corporation		406,899		19,702,050
Willis Towers Watson plc		180,574		27,849,928
				114,628,643
Health Care: 15.95%
Biotechnology: 2.58%
Alexion Pharmaceuticals Incorporated †		83,554		11,721,791
Celgene Corporation †		233,856		34,100,882
				45,822,673
Health Care Equipment & Supplies: 2.71%
Medtronic plc		334,662		26,026,664
Zimmer Biomet Holdings Incorporated		190,257		22,277,192
				48,303,856
Health Care Providers & Services: 2.40%
Cigna Corporation		141,249		26,405,088
Envision Healthcare Corporation †		364,365		16,378,207
				42,783,295
Life Sciences Tools & Services: 4.64%
Agilent Technologies Incorporated		380,952		24,457,118
Bio-Rad Laboratories Incorporated Class A †		149,901		33,311,000
Thermo Fisher Scientific Incorporated		130,692		24,726,926
				82,495,044
Pharmaceuticals: 3.62%
Mylan NV †		701,394		22,002,730
Novartis AG ADR		494,764		42,475,489
				64,478,219
Industrials: 11.89%
Aerospace & Defense: 1.53%
Lockheed Martin Corporation		87,883		27,269,216
Airlines: 1.23%
United Continental Holdings Incorporated †		357,804		21,783,108
Building Products: 2.28%
Johnson Controls International plc		1,007,933		40,609,621

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

Portfolio of investments—September 30, 2017 Wells Fargo Opportunity Fund 13

Security name	Shares		Value
Commercial Services & Supplies: 1.28%
Republic Services Incorporated		345,143	$	22,800,147
Electrical Equipment: 1.62%
Eaton Corporation plc		374,228		28,736,968
Machinery: 3.00%
Colfax Corporation †		670,701		27,927,990
Gardner Denver Holdings Incorporated †		924,287		25,436,378
				53,364,368
Road & Rail: 0.95%
Hertz Global Holdings Incorporated †«		758,960		16,970,346
Information Technology: 23.89%
Electronic Equipment, Instruments & Components: 1.71%
Amphenol Corporation Class A		360,361		30,500,955
Internet Software & Services: 5.25%
Alphabet Incorporated Class C †		65,429		62,753,608
Facebook Incorporated Class A †		179,931		30,744,810
				93,498,418
IT Services: 3.58%
Fidelity National Information Services Incorporated		321,347		30,010,596
MasterCard Incorporated Class A		239,101		33,761,061
				63,771,657
Semiconductors & Semiconductor Equipment: 3.59%
Broadcom Limited		128,111		31,072,042
Texas Instruments Incorporated		364,980		32,716,807
				63,788,849
Software: 6.84%
Check Point Software Technologies Limited †		188,664		21,511,469
Oracle Corporation		751,662		36,342,858
Red Hat Incorporated †		237,267		26,303,420
Salesforce.com Incorporated †		401,527		37,510,652
				121,668,399
Technology Hardware, Storage & Peripherals: 2.92%
Apple Incorporated		336,980		51,935,358
Materials: 4.62%
Chemicals: 2.17%
The Sherwin-Williams Company		107,853		38,615,688

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

14 Wells Fargo Opportunity Fund Portfolio of investments—September 30, 2017

Security name				Shares		Value
Metals & Mining: 2.45%
Goldcorp Incorporated					1,431,425	$	18,551,268
Steel Dynamics Incorporated					727,114		25,063,620
							43,614,888
Real Estate: 1.43%
Equity REITs: 1.43%
American Tower Corporation					186,536		25,495,740
Total Common Stocks (Cost $1,247,841,887)							1,720,812,810
	Yield
Short-Term Investments: 4.31%
Investment Companies: 4.31%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25	%		17,482,656		17,484,405
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92	%		59,194,191		59,194,191
Total Short-Term Investments (Cost $76,678,596)							76,678,596

Total investments in securities (Cost $1,324,520,483)	101.01	%		1,797,491,406
Other assets and liabilities, net	(1.01	)		(17,952,595	)
Total net assets	100.00	%	$	1,779,538,811

† 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 company purchased with cash collateral received from securities on loan.

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

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		16,584,600		293,325,424		292,427,368		17,482,656	$	1,797	$	0	$	110,062	$	17,484,405
Wells Fargo Government Money Market Fund Select Class		25,778,872		383,886,083		350,470,764		59,194,191		0		0		141,734		59,194,191
									$	1,797	$	0	$	251,796	$	76,678,596		4.31	%

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

Statement of assets and liabilities—September 30, 2017 Wells Fargo Opportunity Fund 15

Assets
Investments in unaffiliated securities (including $16,121,560 of securities loaned), at value (cost $1,247,841,887)	$	1,720,812,810
Investments in affiliated securities, at value (cost $76,678,596)		76,678,596
Receivable for Fund shares sold		101,970
Receivable for dividends		1,976,862
Receivable for securities lending income		10,606
Prepaid expenses and other assets		60,767
Total assets		1,799,641,611
Liabilities
Payable upon receipt of securities loaned		17,484,250
Management fee payable		1,047,367
Payable for Fund shares redeemed		666,304
Administration fees payable		295,289
Distribution fee payable		20,947
Accrued expenses and other liabilities		588,643
Total liabilities		20,102,800
Total net assets	$	1,779,538,811
NET ASSETS CONSIST OF
Paid-in capital	$	1,088,986,182
Undistributed net investment income		7,274,751
Accumulated net realized gains on investments		210,306,955
Net unrealized gains on investments		472,970,923
Total net assets	$	1,779,538,811
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,479,456,958
Shares outstanding – Class A1		32,280,705
Net asset value per share – Class A		$45.83
Maximum offering price per share – Class A2		$48.63
Net assets – Class C	$	33,057,073
Shares outstanding – Class C1		760,604
Net asset value per share – Class C		$43.46
Net assets – Administrator Class	$	237,315,412
Shares outstanding – Administrator Class1		4,799,561
Net asset value per share – Administrator Class		$49.45
Net assets – Institutional Class	$	29,709,368
Shares outstanding – Institutional Class1		590,647
Net asset value per share – Institutional Class		$50.30

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.

16 Wells Fargo Opportunity Fund Statement of operations—year ended September 30, 2017

Investment income
Dividends (net of foreign withholding taxes of $117,258)	$	22,526,339
Income from affiliated securities		251,796
Total investment income		22,778,135
Expenses
Management fee		12,527,715
Administration fees
Class A		3,037,365
Class B		1,190	1
Class C		71,829
Administrator Class		298,895
Institutional Class		32,752
Shareholder servicing fees
Class A		3,615,910
Class B		1,417	1
Class C		85,511
Administrator Class		574,393
Distribution fees
Class B		4,251	1
Class C		256,534
Custody and accounting fees		94,411
Professional fees		51,677
Registration fees		85,453
Shareholder report expenses		156,848
Trustees’ fees and expenses		20,282
Other fees and expenses		34,121
Total expenses		20,950,554
Less: Fee waivers and/or expense reimbursements		(323,867	)
Net expenses		20,626,687
Net investment income		2,151,448
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		215,324,024
Affiliated securities		1,797
Net realized gains on investments		215,325,821
Net change in unrealized gains (losses) on investments		48,036,389
Net realized and unrealized gains (losses) on investments		263,362,210
Net increase in net assets resulting from operations	$	265,513,658

¹  For the period from October 1, 2016 to May 5, 2017. Effective at the close of business on May 5, 2017, 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 Opportunity Fund 17

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment income				$	2,151,448					$	6,138,111
Net realized gains on investments					215,325,821						105,020,650
Net change in unrealized gains (losses) on investments					48,036,389						87,822,225
Net increase in net assets resulting from operations					265,513,658						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	)1					(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		431,395			18,572,948			24,061,660			1,119,678,940
Class B		104	1		4,292	1		2			80
Class C		18,274			754,023			13,720			517,107
Administrator Class		90,883			4,235,879			129,304			5,492,475
Institutional Class		375,768			17,731,095			198,222			8,697,552
Investor Class		N/A			N/A			14,679	2		683,049	2
					41,298,237						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	1		68,785	1		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		(4,097,274	)		(176,512,570	)		(4,306,621	)		(173,325,216	)
Class B		(44,500	)1		(1,816,478	)1		(54,234	)		(2,123,946	)
Class C		(175,866	)		(7,256,150	)		(169,002	)		(6,566,702	)
Administrator Class		(602,797	)		(27,931,325	)		(640,144	)		(27,663,783	)
Institutional Class		(187,341	)		(8,851,083	)		(108,868	)		(4,765,522	)
Investor Class		N/A			N/A			(23,333,080	)2		(1,113,901,150	)2
					(222,367,606	)					(1,328,346,319	)
Net increase (decrease) in net assets resulting from capital share transactions					(79,294,395	)					43,390,289
Total increase (decrease) in net assets					81,126,312						(2,413,625	)
Net assets
Beginning of period					1,698,412,499						1,700,826,124
End of period				$	1,779,538,811					$	1,698,412,499
Undistributed net investment income				$	7,274,751					$	5,457,563

¹  For the period from October 1, 2016 to May 5, 2017. Effective at the close of business on May 5, 2017, 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.

18 Wells Fargo Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$41.86			$43.35			$49.56			$46.23			$38.99
Net investment income (loss)		0.04			0.13	1		0.64			(0.07	)		(0.04	)
Net realized and unrealized gains (losses) on investments		6.60			4.72			(1.52	)		6.46			8.80
Total from investment operations		6.64			4.85			(0.88	)		6.39			8.76
Distributions to shareholders from
Net investment income		(0.13	)		(0.57	)		0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)
Total distributions to shareholders		(2.67	)		(6.34	)		(5.33	)		(3.06	)		(1.52	)
Net asset value, end of period		$45.83			$41.86			$43.35			$49.56			$46.23
Total return2		16.49	%		12.46	%		(2.27	)%		14.35	%		23.31	%
Ratios to average net assets (annualized)
Gross expenses		1.21	%		1.21	%		1.24	%		1.26	%		1.26	%
Net expenses		1.21	%		1.21	%		1.22	%		1.22	%		1.23	%
Net investment income (loss)		0.11	%		0.33	%		1.30	%		(0.13	)%		(0.08	)%
Supplemental data
Portfolio turnover rate		43	%		34	%		42	%		32	%		26	%
Net assets, end of period (000s omitted)		$1,479,457			$1,418,614			$390,154			$442,840			$431,201

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Opportunity Fund 19

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$39.99			$41.60			$48.10			$45.27			$38.49
Net investment income (loss)		(0.26	)1		(0.16	)1		0.26			(0.42	)1		(0.35	)1
Net realized and unrealized gains (losses) on investments		6.27			4.51			(1.43	)		6.31			8.65
Total from investment operations		6.01			4.35			(1.17	)		5.89			8.30
Distributions to shareholders from
Net investment income		0.00			(0.19	)		0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)
Total distributions to shareholders		(2.54	)		(5.96	)		(5.33	)		(3.06	)		(1.52	)
Net asset value, end of period		$43.46			$39.99			$41.60			$48.10			$45.27
Total return2		15.62	%		11.62	%		(3.01	)%		13.48	%		22.41	%
Ratios to average net assets (annualized)
Gross expenses		1.96	%		1.96	%		1.99	%		2.01	%		2.01	%
Net expenses		1.96	%		1.96	%		1.97	%		1.97	%		1.98	%
Net investment income (loss)		(0.64	)%		(0.40	)%		0.55	%		(0.88	)%		(0.83	)%
Supplemental data
Portfolio turnover rate		43	%		34	%		42	%		32	%		26	%
Net assets, end of period (000s omitted)		$33,057			$34,721			$37,196			$42,940			$43,209

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

20 Wells Fargo Opportunity Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$44.93			$46.11			$52.27			$48.50			$40.74
Net investment income		0.15	1		0.24	1		0.79			0.08			0.06	1
Net realized and unrealized gains (losses) on investments		7.09			5.04			(1.62	)		6.75			9.22
Total from investment operations		7.24			5.28			(0.83	)		6.83			9.28
Distributions to shareholders from
Net investment income		(0.18	)		(0.69	)		0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)
Total distributions to shareholders		(2.72	)		(6.46	)		(5.33	)		(3.06	)		(1.52	)
Net asset value, end of period		$49.45			$44.93			$46.11			$52.27			$48.50
Total return		16.74	%		12.68	%		(2.04	)%		14.60	%		23.59	%
Ratios to average net assets (annualized)
Gross expenses		1.13	%		1.13	%		1.10	%		1.10	%		1.10	%
Net expenses		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income		0.31	%		0.56	%		1.52	%		0.09	%		0.13	%
Supplemental data
Portfolio turnover rate		43	%		34	%		42	%		32	%		26	%
Net assets, end of period (000s omitted)		$237,315			$226,140			$223,281			$253,121			$247,230

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Opportunity Fund 21

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$45.63			$46.76			$52.82			$48.86			$40.93
Net investment income		0.22	1		0.35	1		0.92	1		0.19	1		0.17
Net realized and unrealized gains (losses) on investments		7.25			5.12			(1.65	)		6.83			9.28
Total from investment operations		7.47			5.47			(0.73	)		7.02			9.45
Distributions to shareholders from
Net investment income		(0.26	)		(0.83	)		0.00			0.00			0.00
Net realized gains		(2.54	)		(5.77	)		(5.33	)		(3.06	)		(1.52	)
Total distributions to shareholders		(2.80	)		(6.60	)		(5.33	)		(3.06	)		(1.52	)
Net asset value, end of period		$50.30			$45.63			$46.76			$52.82			$48.86
Total return		17.02	%		12.97	%		(1.81	)%		14.89	%		23.91	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.88	%		0.83	%		0.83	%		0.83	%
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		0.47	%		0.79	%		1.79	%		0.36	%		0.41	%
Supplemental data
Portfolio turnover rate		43	%		34	%		42	%		32	%		26	%
Net assets, end of period (000s omitted)		$29,709			$17,222			$11,906			$29,335			$14,030

¹  Calculated based upon average shares outstanding

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

22 Wells Fargo Opportunity Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification 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 were converted to Class A shares and are no longer offered by the Fund. Information for Investor Class shares reflected in the financial statements represents activity through October 23, 2015.

Effective at the close of business on May 5, 2017, 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 May 5, 2017.

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, 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 September 30, 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

Notes to financial statements Wells Fargo Opportunity Fund 23

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

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates 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 income from affiliates securities 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

24 Wells Fargo Opportunity Fund Notes to financial statements

distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $1,329,734,256 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	501,510,557
Gross unrealized losses		(33,753,407)
Net unrealized gains	$	467,757,150

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. The primary permanent difference causing such reclassification is due to corporate actions. At September 30, 2017, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Undistributed net investment income	Accumulated net realized gains on investments
$(4,182,374)	$5,226,262	$(1,043,888)

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 Wells Fargo Opportunity Fund 25

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	180,408,108	$	0	$	0	$	180,408,108
Consumer staples		71,840,877		0		0		71,840,877
Energy		118,374,567		0		0		118,374,567
Financials		321,882,445		0		0		321,882,445
Health care		283,883,087		0		0		283,883,087
Industrials		211,533,774		0		0		211,533,774
Information technology		425,163,636		0		0		425,163,636
Materials		82,230,576		0		0		82,230,576
Real estate		25,495,740		0		0		25,495,740
Short-term investments
Investment companies		59,194,191		0		0		59,194,191
Investments measured at net asset value*								17,484,405
Total assets	$	1,780,007,001	$	0	$	0	$	1,797,491,406

* Investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. 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 $17,484,405 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 September 30, 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 year ended September 30, 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

26 Wells Fargo Opportunity Fund Notes to financial statements

Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through 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 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 year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 year ended September 30, 2017, Funds Distributor received $6,257 from the sale of Class A shares and $143 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A and Class B shares for the year ended September 30, 2017.

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $731,902,171 and $945,370,499, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 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.

Notes to financial statements Wells Fargo Opportunity Fund 27

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended September 30, 2017 and September 30, 2016 were as follows:

	Year ended September 30
	2017		2016
Ordinary income	$	8,715,519	$	25,177,386
Long-term capital gain		96,377,432		219,607,514

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$32,866,327	$190,365,237	$467,423,627

9. INDEMNIFICATION

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

28 Wells Fargo Opportunity Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Opportunity Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Opportunity Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

Other information (unaudited) Wells Fargo Opportunity Fund 29

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 100% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 852 of the Internal Revenue Code, $96,377,432 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $8,715,428 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended September 30, 2017, $12,790 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended September 30, 2017, $3,154,997 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

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.

30 Wells Fargo Opportunity 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 152 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 investment 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 led 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 Forté 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.	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 Opportunity Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Current other public company or investment company directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust
Timothy J. Penny (Born 1951)	Trustee, since 1996: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

32 Wells Fargo Opportunity Fund Other information (unaudited)

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 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.

Other information (unaudited) Wells Fargo Opportunity Fund 33

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Opportunity Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc.

34 Wells Fargo Opportunity Fund Other information (unaudited)

(“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review except the five-year period. The Board also noted that the performance of the Fund was lower than its benchmark, the Russell 3000^® Index, for all periods under review.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s performance.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Group for Class A, but higher than the sum of these average rates for the Fund’s expense Groups for Administrator Class and Institutional Class. The Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes, including Administrator Class and Institutional Class.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also

Other information (unaudited) Wells Fargo Opportunity Fund 35

received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

36 Wells Fargo Opportunity 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

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306438 11-17 A232/AR232 09-17

Annual Report

September 30, 2017

Wells Fargo Special Mid Cap Value Fund

Reduce clutter. Save trees.

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	10
Portfolio of investments	11
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	24
Report of independent registered public accounting firm	29
Other information	30
List of abbreviations	37

The views expressed and any forward-looking statements are as of September 30, 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

Favorable economic news supported stocks, and interest rates moved higher.

Hiring remained strong, and business and consumer sentiment improved.

Dear Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Special Mid Cap Value Fund for the 12-month period that ended September 30, 2017. Despite heightened market volatility at times, global stocks generally delivered double-digit results and bond markets had smaller but positive results as well. U.S. and international stocks returned 18.61% and 19.61%, respectively, for the 12-month period, as measured by the S&P 500 Index¹ and the MSCI ACWI ex USA Index (Net)² respectively; within fixed income, the Bloomberg Barclays U.S. Aggregate Bond Index³ returned 0.07% and the Bloomberg Barclays Municipal Bond Index⁴ returned 0.87% as interest rates rose from low levels.

Election results and central banks’ policies commanded investor attention as 2016 closed.

During the fourth quarter of 2016, investors appeared intent on the prospective outcomes of elections in the U.S. and central-bank actions globally. Following Donald Trump’s election victory, U.S. stocks rallied. Investors appeared optimistic that the new administration would pursue progrowth policies. Favorable economic news supported stocks, and interest rates moved higher. At their mid-December meeting, U.S. Federal Reserve (Fed) officials raised the target interest rate by a quarter percentage point to a range of 0.50% to 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) as well as the possibility of liquidity fees and redemption gates for institutional prime and municipal money market funds. In the year leading up to money market fund reform implementation, nearly $1 trillion in assets moved from money market funds subject to floating NAVs into government money market funds, which continued to transact at a stable $1.00 NAV. Outside of the U.S., the prospects for faster U.S. growth appeared to trigger some acceleration in Europe.

Financial markets gained during the first two quarters of 2017 on positive economic data.

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. In March, Fed officials raised their target interest rate by a quarter percentage point to a range of 0.75% to 1.00%. With the Fed’s target interest-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

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

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

Letter to shareholders (unaudited) Wells Fargo Special Mid Cap Value Fund 3

developed markets because they benefited from both global economic growth and recent weakening in the U.S. dollar. Stocks in Asia, Europe, and Latin America also outperformed the U.S. market during the quarter.

Globally, stocks marked continued gains through the second quarter of 2017. Steady, albeit modest, economic growth both in the U.S. and abroad and generally favorable corporate earnings announcements supported higher valuations. U.S. inflation trended lower despite a continued decline in the unemployment rate. Ten-year U.S. Treasury yields declined, resulting in stronger prices for long-term bonds. As was widely expected, the Fed raised the target interest rate in June by a quarter percentage point to a range of 1.00% to 1.25%. In addition, the Fed indicated that it would begin to sell bonds accumulated on its balance sheet during quantitative easing programs conducted since 2008. Later in the third quarter, the Fed confirmed that the initiative to reduce the bonds that it holds likely would begin in October.

Volatility increased during the third quarter of 2017.

Early in July and again in August, volatility expectations increased and then receded—as measured by the CBOE VIX⁵—amid geopolitical tensions, particularly in Asia, and declining investor optimism following unsuccessful efforts to reform health care laws in the U.S. which suggested to some that President Trump and Congress would be unable to move forward with tax and regulatory reforms.

During the quarter, economic momentum increased in Europe; the European Central Bank held its rates steady at low levels and continued its quantitative easing bond-buying program, which is intended to spark economic activity. The Bank of England suggested it could hike interest rates in November, and the pound gained against other currencies. The Bank of Japan also maintained accommodative policies intended to support business activity and economic growth. In Germany, Angela Merkel was reelected chancellor; in Japan, Prime Minister Shinzo Abe called for snap elections as his popularity increased after North Korea’s aggressive program of missile launches. Both political developments were indicative of the type of political consistency in developed markets that reassure financial markets.

In emerging markets, many countries benefited from stronger currencies versus the U.S. dollar. In addition, commodity prices were on an upward trajectory, which benefited many companies that rely on natural resources for exports.

As the quarter closed, optimism returned as economic growth continued. The second-quarter gross domestic product measure was revised higher from 2.6% annualized to 3.0%. Consumer spending and residential and nonresidential investment increased. While inflation continued to trail the Fed’s targets, expectations remained for an additional short-term interest-rate hike before year-end.

⁵  The Chicago Board Options Exchange Market Volatility Index (CBOE VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market’s expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index.

4 Wells Fargo Special Mid Cap Value Fund Letter to shareholders (unaudited)

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

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

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

Sincerely,

Andrew Owen

President

Wells Fargo Funds

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

This page is intentionally left blank.

6 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 September 30, 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		7.83		14.23		8.24		14.41		15.59		8.88		1.20		1.20
Class C (WFPCX)	7-31-2007		12.56		14.73		8.08		13.56		14.73		8.08		1.95		1.95
Class R (WFHHX)	9-30-2015		–		–		–		14.13		15.33		8.63		1.45		1.45
Class R6 (WFPRX)	6-28-2013		–		–		–		14.88		16.12		9.33		0.77		0.77
Administrator Class (WFMDX)	4-8-2005		–		–		–		14.50		15.73		9.01		1.12		1.12
Institutional Class (WFMIX)	4-8-2005		–		–		–		14.76		16.04		9.30		0.87		0.87
Russell Midcap® Value Index4	–		–		–		–		13.37		14.33		7.85		–		–

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 7.

Performance highlights (unaudited) Wells Fargo Special Mid Cap Value Fund 7

Growth of $10,000 investment as of September 30, 2017⁵

¹  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 chart compares the performance of Class A shares for the most recent ten years with the Russell Midcap^® Value Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 5.75%.

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

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

8 Wells Fargo Special Mid Cap Value Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

∎ The Fund outperformed its benchmark, the Russell Midcap^® Value Index, for the 12-month period that ended September 30, 2017.

∎ Contributors to performance included stock selection in the materials and health care sectors and an underweight to the real estate sector.

∎ Detractors from performance included stock selection in the consumer staples and information technology (IT) sectors; cash held in the portfolio also hindered performance.

Over the 12-month period, the U.S. stock market produced strong returns, primarily driven by improved expectations for global growth and hope that the new Trump administration would be successful in delivering on the progrowth agenda emphasized during the campaign. Although many of the progrowth items on the president’s agenda have faced political challenges in the period since the election, mid-cap value stocks, along with the overall stock market, have continued to show resiliency as investors have appeared to remain optimistic regarding the potential for tax reform and reduced government regulations.

Our process focuses on companies that strive to control their own destinies through long-term competitive advantages, flexible balance sheets, and sustainable free cash flow. We believe that with our focus on these types of companies, the Fund potentially can continue to participate in up markets, such as we experienced over the reporting period, and that losses in any down markets may be mitigated should progrowth policies not be implemented.

Ten largest holdings (%) as of September 30, 20176
Fidelity National Information Services Incorporated	2.84
Republic Services Incorporated	2.66
Ameren Corporation	2.61
Molson Coors Brewing Company Class B	2.58
Kansas City Southern	2.57
The Allstate Corporation	2.43
TreeHouse Foods Incorporated	2.37
CBRE Group Incorporated Class A	2.33
Jacobs Engineering Group Incorporated	2.31
Loews Corporation	2.30

We made modest changes to sector weightings.

Our stock-selection process is predominantly driven by our bottom-up stock selection; this process led to modest changes to the Fund’s sector weightings during the period. We maintained overweights to the industrials and IT sectors because they offer an eclectic set of companies that in our view potentially create unique investment opportunities. Although we added several real estate companies during the period, the Fund remained heavily underweight the real estate sector due to results obtained through our valuation research. The Fund’s overweight to the consumer staples sector narrowed over the 12-month period partly because we trimmed positions as valuations moved higher and individual reward/risk ratios decreased. The Fund’s underweight to

the consumer discretionary sector widened as we saw increased shorter-term risks with many of the stocks within the sector and potentially better reward/risk opportunities elsewhere. We increased the Fund’s exposure to the materials sector to an overweight position as we uncovered what we think could be good value-creation opportunities within the sector.

An underweight to the real estate sector and stock selection in the materials and health care sectors benefited the Fund’s performance.

We have struggled to find compelling valuation opportunities within the real estate sector in recent years. This disciplined valuation approach benefited performance during the period as the sector significantly underperformed. Within the materials sector, containerboard and packaging producer Packaging Corporation of America was a significant contributor to the Fund’s performance. We have seen Packaging Corporation use its balance-sheet flexibility to consolidate the containerboard industry and vertically integrate its operations to improve its cost structure and the industry’s supply dynamics. We are heartened to see that investments like Packaging Corporation are now being rewarded via improved results and stock-price appreciation. Within the health care sector, insurer Humana Incorporated positively contributed to the Fund’s performance. The company has made significant investments in its Medicare Advantage business; Humana exited some noncore businesses over the past few years, and its reallocation of capital has benefited from a trend toward strong growth in Medicare Advantage enrollments.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Special Mid Cap Value Fund 9

Sector distribution as of September 30, 2017⁷

Stock selection in the IT and consumer staples sectors detracted from the Fund’s performance.

Within the IT sector, the Fund has been exposed primarily to the IT services industry, which produced more modest returns than the more volatile IT hardware and semiconductor industries did during the period. Our process demands sustainable free cash flow, and that discipline typically eliminates many of the more cyclical semiconductor and hardware stocks that rallied substantially over the reporting period.

Consumer staples holding TreeHouse Foods, Incorporated was the Fund’s largest detractor over the period. A manufacturer of private-label food and

beverage products, TreeHouse Foods has been facing some near-term challenges, including higher input costs, lower volume growth, complications with integrating a recent acquisition, and a need to increase investment in its packaging solutions. TreeHouse Foods remains a core holding within the Fund because we believe many of these headwinds may be short-term issues, and we have confidence that the company’s management knows the steps it needs to take to position the company for future success.

Our outlooks for the Fund and our process remain positive.

As we look toward the end of 2017, we see numerous market forces at play that could bring further volatility. Stock valuations have moved significantly higher and may be forecasting a corporate tax cut; however, we view the amount, timing, and structure of any cuts as very uncertain. Another question mark facing investors over the next 6 to 12 months is when, and by how much, the Federal Reserve (Fed) will choose to raise interest rates. Also uncertain is the potential impact of the Fed’s planned effort to reduce its $4.5 trillion balance sheet. We believe it is prudent to manage downside risks, and we will continue to invest in companies that we believe have taken steps to control their own destiny, as noted earlier.

We believe our team’s fundamental analysis, risk management, and active investment process are well suited to potentially take advantage of new opportunities as the stock market evolves. While volatility may increase, the strong balance sheets and stable cash flows of the companies within the Fund’s portfolio may support consistent long-term performance. We maintain a favorable outlook for the portfolio as we enter the calendar-year fourth quarter of 2017.

Please see footnotes on page 7.

10 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 April 1, 2017 to September 30, 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 4-1-2017		Ending account value 9-30-2017		Expenses paid during the period¹		Annualized net expense ratio
Class A
Actual	$	1,000.00	$	1,045.45	$	5.99		1.17	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.22	$	5.91		1.17	%
Class C
Actual	$	1,000.00	$	1,041.63	$	9.82		1.92	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.45	$	9.69		1.92	%
Class R
Actual	$	1,000.00	$	1,044.43	$	7.27		1.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.95	$	7.18		1.42	%
Class R6
Actual	$	1,000.00	$	1,047.88	$	3.79		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.36	$	3.74		0.74	%
Administrator Class
Actual	$	1,000.00	$	1,046.10	$	5.58		1.09	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.61	$	5.51		1.09	%
Institutional Class
Actual	$	1,000.00	$	1,047.09	$	4.30		0.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.86	$	4.25		0.84	%

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

Portfolio of investments—September 30, 2017 Wells Fargo Special Mid Cap Value Fund 11

Security name	Shares		Value
Common Stocks: 94.44%
Consumer Discretionary: 4.94%
Hotels, Restaurants & Leisure: 0.90%
The Wendy’s Company		4,621,700	$	71,775,001
Household Durables: 1.05%
Mohawk Industries Incorporated †		335,900		83,138,609
Media: 0.97%
Interpublic Group of Companies Incorporated		3,683,600		76,582,044
Multiline Retail: 2.02%
Kohl’s Corporation «		3,516,900		160,546,485
Consumer Staples: 4.95%
Beverages: 2.58%
Molson Coors Brewing Company Class B		2,507,210		204,688,624
Food Products: 2.37%
TreeHouse Foods Incorporated Ǡ		2,771,109		187,687,213
Energy: 7.97%
Energy Equipment & Services: 4.39%
C&J Energy Services Incorporated †		2,369,100		71,001,927
National Oilwell Varco Incorporated		3,231,100		115,447,203
Patterson-UTI Energy Incorporated		5,684,600		119,035,524
US Silica Holdings Incorporated «		1,379,900		42,873,493
				348,358,147
Oil, Gas & Consumable Fuels: 3.58%
Anadarko Petroleum Corporation		1,730,200		84,520,270
Cimarex Energy Company		746,400		84,843,288
Hess Corporation		2,453,100		115,025,859
				284,389,417
Financials: 20.99%
Banks: 5.14%
Fifth Third Bancorp		3,578,700		100,132,026
PacWest Bancorp		2,535,407		128,063,408
Regions Financial Corporation		7,956,100		121,171,403
Zions Bancorporation		1,238,100		58,413,558
				407,780,395
Capital Markets: 2.11%
Northern Trust Corporation		1,302,700		119,757,211
TD Ameritrade Holding Corporation		979,100		47,780,080
				167,537,291

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

12 Wells Fargo Special Mid Cap Value Fund Portfolio of investments—September 30, 2017

Security name	Shares		Value
Consumer Finance: 1.20%
Ally Financial Incorporated		3,943,261	$	95,663,512
Insurance: 11.55%
Arch Capital Group Limited †		1,100,736		108,422,496
Brown & Brown Incorporated		3,156,100		152,092,459
FNF Group		3,198,214		151,787,236
Loews Corporation		3,816,500		182,657,690
The Allstate Corporation		2,095,900		192,634,169
Willis Towers Watson plc		834,900		128,766,627
				916,360,677
Mortgage REITs: 0.99%
AGNC Investment Corporation		3,627,200		78,637,696
Health Care: 6.63%
Health Care Equipment & Supplies: 1.93%
Steris plc		811,500		71,736,600
Varian Medical Systems Incorporated		619,900		62,027,194
Zimmer Biomet Holdings Incorporated		164,200		19,226,178
				152,989,972
Health Care Providers & Services: 4.70%
AmerisourceBergen Corporation		1,399,500		115,808,625
Humana Incorporated		540,200		131,608,926
Patterson Companies Incorporated «		1,030,100		39,813,365
Universal Health Services Incorporated Class B		774,900		85,967,406
				373,198,322
Industrials: 14.19%
Aerospace & Defense: 2.36%
Arconic Incorporated		3,300,700		82,121,416
Raytheon Company		561,900		104,839,302
				186,960,718
Commercial Services & Supplies: 3.66%
Republic Services Incorporated		3,189,675		210,709,931
Stericycle Incorporated †		1,117,300		80,021,026
				290,730,957
Construction & Engineering: 2.31%
Jacobs Engineering Group Incorporated		3,151,800		183,655,386
Machinery: 1.91%
Deere & Company		639,900		80,365,041
The Middleby Corporation †		552,600		70,826,742
				151,191,783

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

Portfolio of investments—September 30, 2017 Wells Fargo Special Mid Cap Value Fund 13

Security name	Shares			Value
Road & Rail: 3.95%
Kansas City Southern		1,880,000		$	204,318,400
Ryder System Incorporated		1,294,500			109,449,975
					313,768,375
Information Technology: 12.08%
Communications Equipment: 3.08%
ARRIS International plc †		2,953,600			84,148,064
Harris Corporation		1,219,300			160,557,424
					244,705,488
IT Services: 7.11%
Amdocs Limited		2,361,800			151,910,976
DST Systems Incorporated		1,243,864			68,263,256
Fidelity National Information Services Incorporated		2,412,000			225,256,680
Leidos Holdings Incorporated		2,004,800			118,724,256
					564,155,168
Technology Hardware, Storage & Peripherals: 1.89%
NCR Corporation †		3,989,500			149,686,040
Materials: 8.65%
Chemicals: 3.31%
International Flavors & Fragrances Incorporated		908,000			129,762,280
PPG Industries Incorporated		1,219,800			132,543,468
					262,305,748
Containers & Packaging: 5.34%
International Paper Company		2,697,600			153,277,632
Packaging Corporation of America		1,204,300			138,109,124
Sealed Air Corporation		3,102,400			132,534,528
					423,921,284
Real Estate: 7.22%
Equity REITs: 4.89%
American Campus Communities Incorporated		2,742,585			121,085,128
Corporate Office Properties Trust		1,644,100			53,975,803
GGP Incorporated		1,528,300			31,742,791
Invitation Homes Incorporated «		3,633,828			82,306,204
Mid-America Apartment Communities Incorporated		926,400			99,013,632
					388,123,558
Real Estate Management & Development: 2.33%
CBRE Group Incorporated Class A †		4,871,600			184,536,208
Utilities: 6.82%
Electric Utilities: 2.22%
American Electric Power Company Incorporated		2,509,460	��		176,264,470

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

14 Wells Fargo Special Mid Cap Value Fund Portfolio of investments—September 30, 2017

Security name				Shares		Value
Multi-Utilities: 2.60%
Ameren Corporation					3,575,250	$	206,792,460
Water Utilities: 2.00%
American Water Works Company Incorporated					1,958,700		158,478,417
Total Common Stocks (Cost $6,447,906,731)							7,494,609,465
	Yield
Short-Term Investments: 7.33%
Investment Companies: 7.33%
Securities Lending Cash Investment LLC (l)(r)(u)		1.25	%		131,645,898		131,659,063
Wells Fargo Government Money Market Fund Select Class (l)(u)		0.92			450,420,430		450,420,430
Total Short-Term Investments (Cost $582,079,493)							582,079,493

Total investments in securities (Cost $7,029,986,224)	101.77	%		8,076,688,958
Other assets and liabilities, net	(1.77	)		(140,687,027	)
Total net assets	100.00	%	$	7,936,001,931

† 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 company purchased with cash collateral received from securities on loan.

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

Investments in Affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were either affiliated persons of the Fund at the beginning of the period or the end of the period were as follows:

	Shares, beginning of period		Shares purchased		Shares sold		Shares, end of period		Net realized gains (losses)		Net change in unrealized gains (losses)		Income from affiliated securities		Value, end of period		% of net assets
Short-Term Investments
Investment companies
Securities Lending Cash Investment LLC		0		1,099,008,982		967,363,084		131,645,898	$	313	$	0	$	755,571	$	131,659,063
Wells Fargo Government Money Market Fund Select Class		159,931,136		2,062,487,092		1,771,997,798		450,420,430		0		0		2,422,987		450,420,430
									$	313	$	0	$	3,178,558	$	582,079,493		7.33	%

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

Statement of assets and liabilities—September 30, 2017 Wells Fargo Special Mid Cap Value Fund 15

Assets
Investments in unaffiliated securities (including $128,712,287 of securities loaned), at value (cost $6,447,906,731)	$	7,494,609,465
Investments in affiliated securities, at value (cost $582,079,493)		582,079,493
Receivable for investments sold		3,866,692
Receivable for Fund shares sold		28,495,820
Receivable for dividends		8,296,186
Receivable for securities lending income		26,393
Prepaid expenses and other assets		34,723
Total assets		8,117,408,772
Liabilities
Payable for investments purchased		33,483,639
Payable for Fund shares redeemed		9,409,765
Payable upon receipt of securities loaned		131,658,750
Management fee payable		4,374,706
Administration fees payable		859,089
Distribution fees payable		122,840
Accrued expenses and other liabilities		1,498,052
Total liabilities		181,406,841
Total net assets	$	7,936,001,931
NET ASSETS CONSIST OF
Paid-in capital	$	6,600,716,268
Undistributed net investment income		56,598,980
Accumulated net realized gains on investments		231,983,949
Net unrealized gains on investments		1,046,702,734
Total net assets	$	7,936,001,931
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	1,070,690,027
Shares outstanding – Class A1		28,559,263
Net asset value per share – Class A		$37.49
Maximum offering price per share – Class A2		$39.78
Net assets – Class C	$	191,953,579
Shares outstanding – Class C1		5,327,258
Net asset value per share – Class C		$36.03
Net assets – Class R	$	14,504,559
Shares outstanding – Class R1		380,923
Net asset value per share – Class R		$38.08
Net assets – Class R6	$	906,784,330
Shares outstanding – Class R61		23,538,918
Net asset value per share – Class R6		$38.52
Net assets – Administrator Class	$	1,156,795,523
Shares outstanding – Administrator Class1		30,347,753
Net asset value per share – Administrator Class		$38.12
Net assets – Institutional Class	$	4,595,273,913
Shares outstanding – Institutional Class1		119,440,081
Net asset value per share – Institutional Class		$38.47

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.

16 Wells Fargo Special Mid Cap Value Fund Statement of operations—year ended September 30, 2017

Investment income
Dividends (net of foreign withholding taxes of $57,923)	$	128,641,497
Income from affiliated securities		3,178,558
Total investment income		131,820,055
Expenses
Management fee		43,414,879
Administration fees
Class A		2,601,111
Class C		341,519
Class R		14,330
Class R6		180,692
Administrator Class		1,297,474
Institutional Class		4,426,602
Shareholder servicing fees
Class A		3,096,560
Class C		406,571
Class R		17,060
Administrator Class		2,495,143
Distribution fees
Class C		1,219,712
Class R		17,060
Custody and accounting fees		252,691
Professional fees		44,867
Registration fees		695,138
Shareholder report expenses		1,383,721
Trustees’ fees and expenses		20,060
Other fees and expenses		37,891
Total expenses		61,963,081
Net investment income		69,856,974
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		263,905,358
Affiliated securities		313
Net realized gains on investments		263,905,671
Net change in unrealized gains (losses) on investments		507,582,662
Net realized and unrealized gains (losses) on investments		771,488,333
Net increase in net assets resulting from operations	$	841,345,307

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

Statement of changes in net assets Wells Fargo Special Mid Cap Value Fund 17

	Year ended September 30, 2017						Year ended September 30, 2016
Operations
Net investment income				$	69,856,974					$	29,787,605
Net realized gains on investments					263,905,671						1,165,809
Net change in unrealized gains (losses) on investments					507,582,662						524,769,917
Net increase in net assets resulting from operations					841,345,307						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					(5,647,481	)					(2,729,427	)
Institutional Class					(24,469,171	)					(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		13,154,908			465,537,737			32,591,298			1,012,650,670
Class C		2,711,868			92,767,956			2,098,801			62,533,533
Class R		375,826			13,756,543			54,121			1,738,947
Class R6		15,662,932			576,145,190			8,542,115			271,942,094
Administrator Class		11,300,924			409,573,144			36,577,283			1,062,087,191
Institutional Class		73,476,646			2,698,093,386			64,727,505			2,061,463,035
Investor Class		N/A			N/A			231,357	1		7,299,395	1
					4,255,873,956						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			6,716,950			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
					67,619,414						91,113,458
Payment for shares redeemed
Class A		(26,185,672	)		(938,590,776	)		(9,893,268	)		(302,160,382	)
Class C		(1,041,925	)		(35,763,015	)		(742,121	)		(22,059,406	)
Class R		(48,532	)		(1,793,289	)		(2,344	)		(77,354	)
Class R6		(3,316,560	)		(121,702,544	)		(1,208,673	)		(38,504,373	)
Administrator Class		(6,021,913	)		(218,649,630	)		(25,433,290	)		(773,879,830	)
Institutional Class		(23,386,735	)		(854,924,224	)		(10,381,138	)		(332,586,897	)
Investor Class		N/A			N/A			(17,217,665	)1		(549,439,619	)1
					(2,171,423,478	)					(2,018,707,861	)
Net increase in net assets resulting from capital share transactions					2,152,069,892						2,552,120,462
Total increase in net assets					2,920,521,325						3,013,236,553
Net assets
Beginning of period					5,015,480,606						2,002,244,053
End of period				$	7,936,001,931					$	5,015,480,606
Undistributed net investment income				$	56,598,980					$	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.

18 Wells Fargo Special Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS A	2017			2016			2015			2014			2013
Net asset value, beginning of period		$33.12			$29.91			$32.68			$30.36			$22.83
Net investment income		0.33			0.19			0.25			0.12	1		0.15	1
Net realized and unrealized gains (losses) on investments		4.42			4.23			0.07			4.47			7.60
Total from investment operations		4.75			4.42			0.32			4.59			7.75
Distributions to shareholders from
Net investment income		(0.19	)		(0.08	)		(0.18	)		(0.09	)		(0.22	)
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00
Total distributions to shareholders		(0.38	)		(1.21	)		(3.09	)		(2.27	)		(0.22	)
Net asset value, end of period		$37.49			$33.12			$29.91			$32.68			$30.36
Total return2		14.41	%		15.34	%		0.69	%		15.70	%		34.23	%
Ratios to average net assets (annualized)
Gross expenses		1.18	%		1.19	%		1.25	%		1.28	%		1.29	%
Net expenses		1.18	%		1.19	%		1.24	%		1.25	%		1.25	%
Net investment income		0.78	%		0.82	%		0.85	%		0.38	%		0.54	%
Supplemental data
Portfolio turnover rate		46	%		30	%		58	%		58	%		87	%
Net assets, end of period (000s omitted)		$1,070,690			$1,363,213			$509,386			$110,219			$38,119

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

Financial highlights Wells Fargo Special Mid Cap Value Fund 19

(For a share outstanding throughout each period)

	Year ended September 30
CLASS C	2017			2016			2015			2014			2013
Net asset value, beginning of period		$31.91			$29.00			$31.82			$29.73			$22.38
Net investment income (loss)		0.06			0.03			0.02	1		(0.04	)		(0.07	)1
Net realized and unrealized gains (losses) on investments		4.26			4.02			0.07			4.31			7.49
Total from investment operations		4.32			4.05			0.09			4.27			7.42
Distributions to shareholders from
Net investment income		(0.01	)		(0.01	)		0.00			0.00			(0.07	)
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00
Total distributions to shareholders		(0.20	)		(1.14	)		(2.91	)		(2.18	)		(0.07	)
Net asset value, end of period		$36.03			$31.91			$29.00			$31.82			$29.73
Total return2		13.56	%		14.47	%		(0.05	)%		14.86	%		33.23	%
Ratios to average net assets (annualized)
Gross expenses		1.92	%		1.94	%		2.00	%		2.03	%		2.04	%
Net expenses		1.92	%		1.94	%		1.99	%		2.00	%		2.00	%
Net investment income (loss)		0.14	%		0.03	%		0.08	%		(0.38	)%		(0.25	)%
Supplemental data
Portfolio turnover rate		46	%		30	%		58	%		58	%		87	%
Net assets, end of period (000s omitted)		$191,954			$116,022			$63,431			$29,217			$14,913

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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

20 Wells Fargo Special Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
CLASS R	2017			2016			20151
Net asset value, beginning of period		$33.78			$30.70			$30.70
Net investment income		0.31			0.12	2		0.00
Net realized and unrealized gains (losses) on investments		4.44			4.32			0.00
Total from investment operations		4.75			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		$38.08			$33.78			$30.70
Total return3		14.13	%		15.05	%		0.00	%
Ratios to average net assets (annualized)
Gross expenses		1.42	%		1.44	%		0.00	%
Net expenses		1.42	%		1.44	%		0.00	%
Net investment income		0.77	%		0.37	%		0.00	%
Supplemental data
Portfolio turnover rate		46	%		30	%		58	%
Net assets, end of period (000s omitted)		$14,505			$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 21

(For a share outstanding throughout each period)

	Year ended September 30
CLASS R6	2017			2016			2015			2014			20131
Net asset value, beginning of period		$34.03			$30.71			$33.39			$30.90			$28.69
Net investment income		0.50	2		0.38	2		0.41	2		0.41	2		0.06	2
Net realized and unrealized gains (losses) on investments		4.53			4.30			0.05			4.43			2.15
Total from investment operations		5.03			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		$38.52			$34.03			$30.71			$33.39			$30.90
Total return3		14.88	%		15.84	%		1.14	%		16.29	%		7.70	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.76	%		0.79	%		0.80	%		0.81	%
Net expenses		0.74	%		0.76	%		0.79	%		0.80	%		0.81	%
Net investment income		1.37	%		1.21	%		1.26	%		1.22	%		0.73	%
Supplemental data
Portfolio turnover rate		46	%		30	%		58	%		58	%		87	%
Net assets, end of period (000s omitted)		$906,784			$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.

22 Wells Fargo Special Mid Cap Value Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended September 30
ADMINISTRATOR CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$33.67			$30.45			$33.14			$30.71			$23.09
Net investment income		0.34	1		0.26			0.31	1		0.15			0.20	1
Net realized and unrealized gains (losses) on investments		4.52			4.26			0.05			4.55			7.67
Total from investment operations		4.86			4.52			0.36			4.70			7.87
Distributions to shareholders from
Net investment income		(0.22	)		(0.17	)		(0.14	)		(0.09	)		(0.25	)
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00
Total distributions to shareholders		(0.41	)		(1.30	)		(3.05	)		(2.27	)		(0.25	)
Net asset value, end of period		$38.12			$33.67			$30.45			$33.14			$30.71
Total return		14.50	%		15.42	%		0.84	%		15.89	%		34.41	%
Ratios to average net assets (annualized)
Gross expenses		1.09	%		1.10	%		1.12	%		1.12	%		1.13	%
Net expenses		1.09	%		1.10	%		1.11	%		1.12	%		1.13	%
Net investment income		0.95	%		0.88	%		0.95	%		0.48	%		0.71	%
Supplemental data
Portfolio turnover rate		46	%		30	%		58	%		58	%		87	%
Net assets, end of period (000s omitted)		$1,156,796			$834,134			$394,188			$187,968			$117,087

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Special Mid Cap Value Fund 23

(For a share outstanding throughout each period)

	Year ended September 30
INSTITUTIONAL CLASS	2017			2016			2015			2014			2013
Net asset value, beginning of period		$34.00			$30.70			$33.38			$30.91			$23.15
Net investment income		0.41			0.35	1		0.41	1		0.24			0.20	1
Net realized and unrealized gains (losses) on investments		4.58			4.29			0.04			4.57			7.81
Total from investment operations		4.99			4.64			0.45			4.81			8.01
Distributions to shareholders from
Net investment income		(0.33	)		(0.21	)		(0.22	)		(0.16	)		(0.25	)
Net realized gains		(0.19	)		(1.13	)		(2.91	)		(2.18	)		0.00
Total distributions to shareholders		(0.52	)		(1.34	)		(3.13	)		(2.34	)		(0.25	)
Net asset value, end of period		$38.47			$34.00			$30.70			$33.38			$30.91
Total return		14.76	%		15.73	%		1.10	%		16.17	%		34.90	%
Ratios to average net assets (annualized)
Gross expenses		0.84	%		0.86	%		0.85	%		0.85	%		0.85	%
Net expenses		0.84	%		0.86	%		0.85	%		0.85	%		0.85	%
Net investment income		1.24	%		1.07	%		1.23	%		0.81	%		0.72	%
Supplemental data
Portfolio turnover rate		46	%		30	%		58	%		58	%		87	%
Net assets, end of period (000s omitted)		$4,595,274			$2,325,777			$411,919			$174,989			$66,056

¹  Calculated based upon average shares outstanding

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

24 Wells Fargo Special Mid Cap Value Fund Notes to financial statements

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards Codification 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 were converted to Class A shares and are no longer offered by the Fund. Information for Investor Class shares reflected in the financial statements represents activity through October 23, 2015.

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, 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

Notes to financial statements Wells Fargo Special Mid Cap Value Fund 25

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 income from affiliates securities 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 to 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, 2017, the aggregate cost of all investments for federal income tax purposes was $7,038,418,302 and the unrealized gains (losses) consisted of:

Gross unrealized gains	$	1,154,463,080
Gross unrealized losses		(116,192,424	)
Net unrealized gains	$	1,038,270,656

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:

26 Wells Fargo Special Mid Cap Value Fund Notes to financial statements

∎ 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 September 30, 2017:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Common stocks
Consumer discretionary	$	392,042,139	$	0	$	0	$	392,042,139
Consumer staples		392,375,837		0		0		392,375,837
Energy		632,747,564		0		0		632,747,564
Financials		1,665,979,571		0		0		1,665,979,571
Health care		526,188,294		0		0		526,188,294
Industrials		1,126,307,219		0		0		1,126,307,219
Information technology		958,546,696		0		0		958,546,696
Materials		686,227,032		0		0		686,227,032
Real estate		572,659,766		0		0		572,659,766
Utilities		541,535,347		0		0		541,535,347
Short-term investments
Investment companies		450,420,430		0		0		450,420,430
Investments measured at net asset value*								131,659,063
Total assets	$	7,945,029,895	$	0	$	0	$	8,076,688,958

* 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 $131,659,063 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 September 30, 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 year ended September 30, 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.

Notes to financial statements Wells Fargo Special Mid Cap Value Fund 27

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

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. Prior to February 2, 2017, the Fund’s expenses were capped at 1.25% for Class A shares, 2.00% for Class C shares, 1.50% for Class R shares, and 0.82% for Class R6 shares.

During the year ended September 30, 2017, State Street Bank and Trust Company (“State Street”), 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 by State Street for waivers/reimbursements it made to the Fund to limit Fund expenses 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 Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended September 30, 2017, Funds Distributor received $213,086 from the sale of Class A shares and $3,459 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A for the year ended September 30, 2017.

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.

Interfund transactions

The Fund may purchase or sell portfolio investment securities to certain 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 do not incur broker commissions, are effected at current market prices.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended September 30, 2017 were $4,705,178,936 and $2,813,120,474, respectively.

28 Wells Fargo Special Mid Cap Value Fund Notes to financial statements

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds) and Wells Fargo Variable Trust are parties to a $280,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.25% of the unused balance is allocated to each participating fund. Prior to August 29, 2017, the revolving credit agreement amount was $250,000,000.

For the year ended September 30, 2017, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended September 30, 2017 and September 30, 2016 were as follows:

	Year ended September 30
	2017		2016
Ordinary income	$	52,453,889	$	30,591,334
Long-term capital gain		20,439,985		64,015,906

As of September 30, 2017, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains
$159,922,652	$137,092,342	$1,038,270,656

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.

Report of independent registered public accounting firm Wells Fargo Special Mid Cap Value Fund 29

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Special Mid Cap Value Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of September 30, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2017, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Special Mid Cap Value Fund as of September 30, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

November 22, 2017

30 Wells Fargo Special Mid Cap Value Fund Other information (unaudited)

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 77.16% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended September 30, 2017.

Pursuant to Section 852 of the Internal Revenue Code, $20,439,985 was designated as a 20% rate gain distribution for the fiscal year ended September 30, 2017.

Pursuant to Section 854 of the Internal Revenue Code, $44,255,278 of income dividends paid during the fiscal year ended September 30, 2017 has been designated as qualified dividend income (QDI).

For the fiscal year ended September 30, 2017, $536,138 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended September 30, 2017, $9,976,853 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

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

PORTFOLIO HOLDINGS INFORMATION

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

Other information (unaudited) Wells Fargo Special Mid Cap Value Fund 31

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 152 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 investment 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 led 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 Forté 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.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust
Peter G. Gordon** (Born 1942)	Trustee, since 1998; Chairman, since 2005	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).	CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust

32 Wells Fargo Special 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: Vice Chairman, since 2017	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. 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.

Advisory Board Members

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
James G. Polisson (Born 1959)	Advisory Board Member, since 2017	Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Prior thereto, Vice President, Fidelity Retail Mutual Fund Group from 1996 to 1998 and Risk Management Practice Manager, Fidelity Consulting from 1995 to 1996. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations.	None
Pamela Wheelock (Born 1959)	Advisory Board Member, since 2017	Chief Operating Officer, Twin Cities Habitat for Humanity, since January, 2017. Vice President of University Services, University of Minnesota from 2012 to 2017. Prior thereto, Interim President and Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2010 to 2011, Chairman of the Board from 2009 to 2011 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently on the Board of Directors, Governance Committee and Finance Committee, for the Minnesota Philanthropy Partners (Saint Paul Foundation) since 2012 and Board Chair of the Minnesota Wild Foundation since 2010.	None

Other information (unaudited) Wells Fargo Special Mid Cap Value Fund 33

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 & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, 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 H. Whitaker (Born 1967)	Chief Compliance Officer, since 2016	Senior Vice President and Chief Compliance Officer since 2016. Senior Vice President and Chief Compliance Officer for 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 76 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 76 funds and Assistant Treasurer of 76 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.

34 Wells Fargo Special Mid Cap Value Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at an in-person meeting held on May 16-17, 2017 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Special Mid Cap Value Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in April 2017, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2017. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

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

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Funds Management, a summary of certain organizational and personnel changes involving Funds Management and the Sub-Adviser, and a description of Funds Management’s and the Sub-Adviser’s business continuity planning programs and of their approaches to data privacy and cybersecurity. The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended December 31, 2016. The Board considered these results in comparison to the performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board

Other information (unaudited) Wells Fargo Special Mid Cap Value Fund 35

received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Russell Midcap^® Value Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes. The Board discussed and accepted Funds Management’s proposal to reduce the net operating expense ratio caps for the Class A, Class C, Class R, Administrator Class, Institutional Class and Class R6.

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

Investment management and sub-advisory fee rates

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

Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than, equal to or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.

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

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo and Funds Management profitability analysis.

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

36 Wells Fargo Special Mid Cap Value Fund Other information (unaudited)

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that in addition to management fee breakpoints, competitive management fee rates set at the outset without regard to breakpoints and fee waiver and expense reimbursement arrangements are means of sharing potential economies of scale with shareholders of the Fund. The Board discussed and accepted Funds Management’s proposal to reduce the net operating expense ratio caps for the Class A, Class C, Class R, Administrator Class, Institutional Class and Class R6. The Board considered Funds Management’s view, which Funds Management indicated was supported by independent third-party industry studies which were summarized for the Board, that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

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

Other benefits to Funds Management and the Sub-Adviser

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

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

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

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Special Mid Cap Value Fund 37

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

CLO —  Collateralized loan obligation

CLP —  Chilean peso

COP —  Colombian 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

PJSC —  Public Joint Stock Company

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 Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.

NOT FDIC INSURED  ◾  NO BANK GUARANTEE  ◾   MAY LOSE VALUE

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

306439 11-17 A234/AR234 09-17

ITEM 2. CODE OF ETHICS

(a) As of the end of the period covered by the report, Wells Fargo Funds Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.

(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Trustees of Wells Fargo Funds Trust has determined that Judith Johnson is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mrs. Johnson is independent for purposes of Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered

to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by

the Registrant’s audit committee.

	Fiscal year ended September 30, 2017		Fiscal year ended September 30, 2016
Audit fees	$	360,232	$	344,493
Audit-related fees		—		—
Tax fees (1)		46,665		45,130
All other fees		—		—
	$	406,897	$	389,623

⁽¹⁾  Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services for the mutual funds of Wells Fargo Funds Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval

sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(f) Not applicable

(g) Not applicable

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

A Portfolio of Investments for each series of Wells Fargo Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.

(b) There were no significant changes in the Trust’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit COE.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Wells Fargo Funds Trust
By:
	/s/ Andrew Owen
	Andrew Owen
	President
Date:	November 22, 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:	November 22, 2017
By:
	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date:	November 22, 2017
By:
	/s/ Jeremy DePalma
	Jeremy DePalma
	Treasurer
Date:	November 22, 2017